[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 927 Introduced in Senate (IS)]

  1st Session
                                  S. 927

   To promote the national security by providing a National Security 
     Personnel System for the Department of Defense; a streamlined 
  acquisition system both efficient and effective in order to provide 
   servicemembers on the battlefield with the most modern and lethal 
 equipment; realistic appropriations and authorization laws responsive 
to an ever-changing national security environment; and the coordination 
 of the activities of the Department of Defense with other departments 
    and agencies of the Government concerned with national security.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 28, 2003

  Mr. Warner (for himself and Mr. Levin) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Armed Services

_______________________________________________________________________

                                 A BILL


 
   To promote the national security by providing a National Security 
     Personnel System for the Department of Defense; a streamlined 
  acquisition system both efficient and effective in order to provide 
   servicemembers on the battlefield with the most modern and lethal 
 equipment; realistic appropriations and authorization laws responsive 
to an ever-changing national security environment; and the coordination 
 of the activities of the Department of Defense with other departments 
    and agencies of the Government concerned with national security.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense Transformation for the 21st 
Century Act of 2003''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                   TITLE I--PERSONNEL TRANSFORMATION

            Subtitle A--Transformation of Civilian Personnel

Sec. 101. National security personnel system.
Sec. 102. Defense Acquisition Workforce Improvement Act streamlining.
Sec. 103. Priority placement of displaced civilian employees.
Sec. 104. Establishment of auxiliaries within the military departments 
                            to coordinate volunteers.
 Subtitle B--Transformation of Management of Senior Military Leadership

Sec. 111. Equivalency of pay for service chiefs of staff and combatant 
                            commanders.
Sec. 112. Length of service for the senior leaders of the military 
                            departments.
Sec. 113. Length of service for the Chairman and Vice Chairman of the 
                            Joint Chiefs of Staff.
Sec. 114. Length of service for the assistants to the Chairman of the 
                            Joint Chiefs of Staff for National Guard 
                            and Reserve matters.
Sec. 115. Eliminate mandatory terms of service for certain general and 
                            flag staff officers.
Sec. 116. Lateral reassignment of certain generals and admirals.
Sec. 117. Eliminate distribution quotas for general and flag officers 
                            serving in the grades of O-7 and O-8.
Sec. 118. Extending age limits for active duty general and flag 
                            officers.
Sec. 119. Extending age limits for Reserve and National Guard general 
                            and flag officers.
Sec. 120. Eliminate mandatory retirement of active duty general and 
                            flag officers after 30 years of service.
Sec. 121. More flexible retirement rules for military officers.
Sec. 122. More flexible computation of retired pay for officers and 
                            senior enlisted members.
Sec. 123. Eliminate retired pay limit applicable to general and flag 
                            officers.
            Subtitle C--Transformation of Military Personnel

Sec. 131. Measuring personnel strengths.
Sec. 132. Access to secondary schools by military recruiters.
Sec. 133. Waiver of military education eligibility and post-education 
                            placement requirements.
Sec. 134. Length of joint duty assignments.
Sec. 135. Ordering reserve component members to active duty to respond 
                            to disasters, accidents, or catastrophes.
Sec. 136. Improved involuntary access to reserve component members for 
                            enhanced training.
Sec. 137. Medical and dental screening for members of selected reserve 
                            units alerted for mobilization.
                  TITLE II--ACQUISITION TRANSFORMATION

           Subtitle A--Transformation of Acquisition Process

Sec. 201. Repeal requirements for major defense acquisition programs.
Sec. 202. Applicability of Clinger-Cohen Act to equipment integral to a 
                            weapon or weapon system and Department of 
                            Defense information technology management.
Sec. 203. Inflation adjustment of acquisition-related dollar 
                            thresholds.
Sec. 204. Security interest exception to domestic source or content 
                            requirements.
Sec. 205. Clarification of Buy American requirements.
Sec. 206. Amendment of cataloging and standardization provisions.
           Subtitle B--Transformation of Contracting Process

Sec. 211. Contracting for security guards and firefighting services.
Sec. 212. Contracts with small businesses.
Sec. 213. Performance based logistics: special procurement and funding 
                            authority.
Sec. 214. Depot-related legislative reform.
           TITLE III--INSTALLATION MANAGEMENT TRANSFORMATION

Sec. 301. Readiness and range preservation initiative.
                TITLE IV--ADMINISTRATIVE TRANSFORMATION

             Subtitle A--Transformation of DoD Organization

Sec. 401. Reorganization within the Department of Defense.
Sec. 402. Reassignment of personnel serving in the Office of the 
                            Secretary of Defense.
Sec. 403. Appointments of retired members of the armed forces to 
                            positions in the Department of Defense.
Sec. 404. Transfer of Department of Defense personnel security 
                            investigative functions and defense 
                            personnel performing those functions.
Sec. 405. Conversions of commercial activities.
    Subtitle B--Transformation of Appropriations and Budget Process

Sec. 411. Enhanced general transfer authority.
Sec. 412. Transfer of funds to correct specific acquisition funding 
                            problems.
Sec. 413. Ballistic missile defense system.
Sec. 414. Funding for the Missile Defense Agency.
    Subtitle C--Transformation of Information Gathering for Congress

Sec. 421. Sunset on recurring reports.
Sec. 422. Repeal of various reports required of the Department of 
                            Defense.
       Subtitle D--Transformation of Management of Naval Vessels

Sec. 431. Repeal of notice and wait period prior to reducing the 
                            inventory of combatant surface vessels.
Sec. 432. Overhaul and repair of ships on extended deployments.
                  Subtitle E--Miscellaneous Provisions

Sec. 441. Support of foreign nations committed to combating global 
                            terrorism.

                   TITLE I--PERSONNEL TRANSFORMATION

            Subtitle A--Transformation of Civilian Personnel

SEC. 101. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

    (a) In General.--
            (1) Subpart I of part III of title 5, United States Code, 
        is amended by adding at the end the following new chapter:

 ``CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

``Sec.
``9901. Definitions.
``9902. Establishment of human resources management system.
``9903. Contracting for personal services.
``9904. Attracting highly qualified experts.
``9905. Employment of older Americans.
``9906. Special pay and benefits for certain employees outside the 
                            United States.
``Sec. 9901. Definitions
    ``For purposes of this chapter--
            ``(1) the term `Director' means the Director of the Office 
        of Personnel Management; and
            ``(2) the term `Secretary' means the Secretary of Defense.
``Sec. 9902. Establishment of human resources management system
    ``(a) In General.--
            ``(1) Notwithstanding any other provision of this title, 
        the Secretary may, in regulations prescribed jointly with the 
        Director, establish, and from time to time adjust, a human 
        resources management system for some or all of the 
        organizational or functional units of the Department of 
        Defense. If the Secretary certifies that issuance or adjustment 
        of a regulation, or the inclusion, exclusion, or modification 
        of a particular provision therein, is essential to the national 
        security, the Secretary may, subject to the direction of the 
        President, waive the requirement in the preceding sentence that 
        the regulation or adjustment be issued jointly with the 
        Director.
            ``(2) Any regulations established pursuant to this chapter 
        shall be established as internal rules of departmental 
        procedure, consistent with section 553 of this title.
    ``(b) System Requirements.--Any system established under subsection 
(a) shall--
            ``(1) be flexible;
            ``(2) be contemporary;
            ``(3) not waive, modify, or otherwise affect--
                    ``(A) the public employment principles of merit and 
                fitness set forth in section 2301, including the 
                principles of hiring based on merit, fair treatment 
                without regard to political affiliation or other non-
                merit considerations, equal pay for equal work, and 
                protection of employees against reprisal for 
                whistleblowing;
                    ``(B) any provision of section 2302, relating to 
                prohibited personnel practices;
                    ``(C)(i) any provision of law referred to in 
                section 2302(b)(1), (8), and (9); or
                    ``(ii) any provision of law implementing any 
                provision of law referred to in section 2302(b)(1), 
                (8), and (9) by--
                            ``(I) providing for equal employment 
                        opportunity through affirmative action; or
                            ``(II) providing any right or remedy 
                        available to any employee or applicant for 
                        employment in the public service;
                    ``(D) any other provision of this part (as 
                described in subsection (c)); or
                    ``(E) any rule or regulation prescribed under any 
                provision of law referred to in this paragraph;
            ``(4) ensure that employees may organize, bargain 
        collectively as provided for in this chapter, and participate 
        through labor organizations of their own choosing in decisions 
        which affect them, subject to the provisions of this chapter 
        and any exclusion from coverage or limitation on negotiability 
        established pursuant to law; and
            ``(5) not be limited by any specific law or authority under 
        this title that is waivable under this chapter or by any 
        provision of this chapter or any rule or regulation prescribed 
        under this title that is waivable under this chapter, except as 
        specifically provided for in this section.
    ``(c) Other Nonwaivable Provisions.--The other provisions of this 
part referred to in subsection (b)(3)(D) are (to the extent not 
otherwise specified in this title)--
            ``(1) subparts A, E, G, and H of this part;
            ``(2) chapters 34, 45, 47, 57, 72, 73, and 79; and
            ``(3) sections 3131, 3132(a), 3305(b), 3309, 3310, 3311, 
        3312, 3313, 3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 
        3363, 3501, 3502(b), and 3504.
    ``(d) Limitations Relating to Pay.--
            ``(1) Nothing in this section shall constitute authority to 
        modify the pay of any employee who serves in an Executive 
        Schedule position under subchapter II of chapter 53 of this 
        title.
            ``(2) Except as provided for in paragraph (1), the total 
        amount in a calendar year of allowances, differentials, 
        bonuses, awards, or other similar cash payments paid under this 
        title to any employee who is paid under section 5376 or 5383 of 
        this title or under title 10 or under other comparable pay 
        authority established for payment of Department of Defense 
        senior executive or equivalent employees may not exceed the 
        total annual compensation payable to the Vice President under 
        section 104 of title 3.
    ``(e) Provisions To Ensure Collaboration With Employee 
Representatives.--
            ``(1) In general.--In order to ensure that the authority of 
        this section is exercised in collaboration with, and in a 
        manner that ensures the participation of, employee 
        representatives in the planning, development, and 
        implementation of any human resources management system or 
        adjustments to such system under this section, the Secretary 
        and the Director shall provide for the following:
                    ``(A) Notice of proposal.--The Secretary and the 
                Director shall, with respect to any proposed system or 
                adjustment--
                            ``(i) provide to the employee 
                        representatives representing any employees who 
                        might be affected a written description of the 
                        proposed system or adjustment (including the 
                        reasons why it is considered necessary);
                            ``(ii) give such representatives at least 
                        30 calendar days (unless extraordinary 
                        circumstances require earlier action) to review 
                        and make recommendations with respect to the 
                        proposal; and
                            ``(iii) give any recommendations received 
                        from such representatives under clause (ii) 
                        full and fair consideration in deciding whether 
                        or how to proceed with the proposal.
                    ``(B) Pre-implementation congressional 
                notification, consultation, and mediation.--Following 
                receipt of recommendations, if any, from such employee 
                representatives with respect to a proposal described in 
                subparagraph (A), the Secretary and the Director shall 
                accept such modifications to the proposal in response 
                to the recommendations as they determine advisable and 
                shall, with respect to any parts of the proposal as to 
                which they have not accepted the recommendations--
                            ``(i) notify Congress of those parts of the 
                        proposal, together with the recommendations of 
                        the employee representatives;
                            ``(ii) meet and confer for not less than 30 
                        calendar days with the employee 
                        representatives, in order to attempt to reach 
                        agreement on whether or how to proceed with 
                        those parts of the proposal; and
                            ``(iii) at the Secretary's option, or if 
                        requested by a majority of the employee 
                        representatives participating, use the services 
                        of the Federal Mediation and Conciliation 
                        Service during such meet and confer period to 
                        facilitate the process of attempting to reach 
                        agreement.
                    ``(C) Implementation.--
                            ``(i) Any part of the proposal as to which 
                        the representatives do not make a 
                        recommendation, or as to which the 
                        recommendations are accepted by the Secretary 
                        and the Director, may be implemented 
                        immediately.
                            ``(ii) With respect to any parts of the 
                        proposal as to which recommendations have been 
                        made but not accepted by the Secretary and the 
                        Director, at any time after 30 calendar days 
                        have elapsed since the initiation of the 
                        congressional notification, consultation, and 
                        mediation procedures set forth in subparagraph 
                        (B), if the Secretary determines, in the 
                        Secretary's sole and unreviewable discretion, 
                        that further consultation and mediation is 
                        unlikely to produce agreement, the Secretary 
                        may implement any or all of such parts, 
                        including any modifications made in response to 
                        the recommendations as the Secretary determines 
                        advisable.
                            ``(iii) The Secretary shall notify Congress 
                        promptly of the implementation of any part of 
                        the proposal and shall furnish with such notice 
                        an explanation of the proposal, any changes 
                        made to the proposal as a result of 
                        recommendations from the employee 
                        representatives, and of the reasons why 
                        implementation is appropriate under this 
                        subparagraph.
                    ``(D) Continuing collaboration.--If a proposal 
                described in subparagraph (A) is implemented, the 
                Secretary and the Director shall--
                            ``(i) develop a method for the employee 
                        representatives to participate in any further 
                        planning or development which might become 
                        necessary; and
                            ``(ii) give the employee representatives 
                        adequate access to information to make that 
                        participation productive.
            ``(2) National level collaboration.--The Secretary may, at 
        the Secretary's discretion, engage in any and all collaboration 
        activities described in this subsection at an organizational 
        level above the level of exclusive recognition.
            ``(3) Provisions for employees not in a unit.--In the case 
        of any employees who are not within a unit with respect to 
        which a labor organization is accorded exclusive recognition, 
        the Secretary and the Director may develop procedures for 
        representation by any appropriate organization which represents 
        a substantial percentage of those employees or, if none, in 
        such other manner as may be appropriate, consistent with the 
        purposes of this subsection.
            ``(4) Procedures.--Any procedures necessary to carry out 
        this subsection shall be established as internal rules of 
        department procedure which shall not be subject to review.
    ``(f) Provisions Regarding National Level Bargaining.--
            ``(1) Any human resources management system implemented or 
        modified under this chapter may include employees of the 
        Department of Defense from any bargaining unit with respect to 
        which a labor organization has been accorded exclusive 
        recognition under chapter 71 of this title.
            ``(2) For any bargaining unit so included under paragraph 
        (1), the Secretary at his sole and exclusive discretion may 
        bargain at an organizational level above the level of exclusive 
        recognition. Any such bargaining shall--
                    ``(A) be binding on all subordinate bargaining 
                units at the level of recognition and their exclusive 
                representatives, and the Department of Defense and its 
                subcomponents, without regard to levels of recognition;
                    ``(B) supersede all other collective bargaining 
                agreements, including collective bargaining agreements 
                negotiated with an exclusive representative at the 
                level of recognition, except as otherwise determined by 
                the Secretary;
                    ``(C) not be subject to further negotiations for 
                any purpose, including bargaining at the level of 
                recognition, except as provided for by the Secretary; 
                and
                    ``(D) except as otherwise specified in this 
                chapter, not be subject to review or to statutory 
                third-party dispute resolution procedures outside the 
                Department of Defense.
            ``(3) The National Guard Bureau and the Army and Air Force 
        National Guard are excluded from coverage under this 
        subsection.
            ``(4) Any bargaining completed pursuant to this subsection 
        with a labor organization not otherwise having national 
        consultation rights with the Department of Defense or its 
        subcomponents shall not create any obligation on the Department 
        of Defense or its subcomponents to confer national consultation 
        rights on such a labor organization.
    ``(g) Provisions Relating to Appellate Procedures.--
            ``(1) It is the sense of Congress that--
                    ``(A) employees of the Department of Defense are 
                entitled to fair treatment in any appeals that they 
                bring in decisions relating to their employment; and
                    ``(B) in prescribing regulations for any such 
                appeals procedures, the Secretary--
                            ``(i) should ensure that employees of the 
                        Department of Defense are afforded the 
                        protections of due process; and
                            ``(ii) toward that end, should be required 
                        to consult with the Merit Systems Protection 
                        Board before issuing any such regulations.
            ``(2) Any regulations under this section that relate to any 
        matters within the purview of chapter 77 of this title shall--
                    ``(A) be issued only after consultation with the 
                Merit Systems Protection Board;
                    ``(B) ensure the availability of procedures that--
                            ``(i) are consistent with requirements of 
                        due process; and
                            ``(ii) provide, to the maximum extent 
                        practicable, for the expeditious handling of 
                        any matters involving the Department of 
                        Defense; and
                    ``(C) modify procedures under chapter 77 only 
                insofar as such modifications are designed to further 
                the fair, efficient, and expeditious resolution of 
                matters involving the employees of the Department of 
                Defense.
    ``(h) Provisions Related to Separation and Retirement Incentives.--
            ``(1) The Secretary may establish a program within the 
        Department of Defense under which employees may be eligible for 
        early retirement, offered separation incentive pay to separate 
        from service voluntarily, or both. This authority may be used 
        to reduce the number of personnel employed by the Department of 
        Defense or to restructure the workforce to meet mission 
        objectives without reducing the overall number of personnel. 
        This authority is in addition to, and notwithstanding, any 
        other authorities established by law or regulation for such 
        programs.
            ``(2) For purposes of this section, the term `employee' 
        means an employee of the Department of Defense, serving under 
        an appointment without time limitation, except that such term 
        does not include--
                    ``(A) a reemployed annuitant under subchapter III 
                of chapter 83 or chapter 84 of this title, or another 
                retirement system for employees of the Federal 
                Government;
                    ``(B) an employee having a disability on the basis 
                of which such employee is or would be eligible for 
                disability retirement under any of the retirement 
                systems referred to in paragraph (1); or
                    ``(C) for purposes of eligibility for separation 
                incentives under this section, an employee who is in 
                receipt of a decision notice of involuntary separation 
                for misconduct or unacceptable performance.
            ``(3) Early retirement.--An employee who is at least 50 
        years of age and has completed 20 years of service, or has at 
        least 25 years of service, may, pursuant to regulations 
        promulgated under this section, apply and be retired from the 
        Department of Defense and receive benefits in accordance with 
        chapter 83 or 84 if the employee has been employed continuously 
        within the Department of Defense for more than 30 days before 
        the date on which the determination to conduct a reduction or 
        restructuring within one or more Department of Defense 
        Component is approved pursuant to the program established under 
        subsection (a).
            ``(4) Separation pay.--
                    ``(A) Separation pay shall be paid in a lump sum or 
                in installments and shall be equal to the lesser of--
                            ``(i) an amount equal to the amount the 
                        employee would be entitled to receive under 
                        section 5595(c) of this title, if the employee 
                        were entitled to payment under such section; or
                            ``(ii) $25,000.
                    ``(B) Separation pay shall not be a basis for 
                payment, and shall not be included in the computation, 
                of any other type of Government benefit. Separation pay 
                shall not be taken into account for the purpose of 
                determining the amount of any severance pay to which an 
                individual may be entitled under section 5595 of this 
                title, based on any other separation.
                    ``(C) Separation pay, if paid in installments, 
                shall cease to be paid upon the recipient's acceptance 
                of employment by the Federal Government, or 
                commencement of work under a personal services contract 
                as described in paragraph (6).
            ``(5) Reemployment.--
                    ``(A) An employee who receives separation pay under 
                such program may not be reemployed by the Department of 
                Defense for a 12-month period beginning on the 
                effective date of the employee's separation, unless 
                this prohibition is waived by the Secretary on a case-
                by-case basis.
                    ``(B) An employee who receives separation pay under 
                this section on the basis of a separation occurring on 
                or after the date of the enactment of the Federal 
                Workforce Restructuring Act of 1994 (Public Law 103-
                236; 108 Stat. 111) and accepts employment with the 
                Government of the United States, or who commences work 
                through a personal services contract with the United 
                States within 5 years after the date of the separation 
                on which payment of the separation pay is based, shall 
                be required to repay the entire amount of the 
                separation pay to the Department of Defense. If the 
                employment is with an Executive agency (as defined by 
                section 105 of this title) other than the Department of 
                Defense, the Director may, at the request of the head 
                of that agency, waive the repayment if the individual 
                involved possesses unique abilities and is the only 
                qualified applicant available for the position. If the 
                employment is within the Department of Defense, the 
                Secretary may waive the repayment if the individual 
                involved is the only qualified applicant available for 
                the position. If the employment is with an entity in 
                the legislative branch, the head of the entity or the 
                appointing official may waive the repayment if the 
                individual involved possesses unique abilities and is 
                the only qualified applicant available for the 
                position. If the employment is with the judicial 
                branch, the Director of the Administrative Office of 
                the United States Courts may waive the repayment if the 
                individual involved possesses unique abilities and is 
                the only qualified applicant available for the 
                position.
            ``(6) Under this program, early retirement and separation 
        pay may be offered only pursuant to regulations established by 
        the Secretary, subject to such limitations or conditions as the 
        Secretary may require.
    ``(i) Provisions Relating to Reemployment.--If an annuitant 
receiving an annuity from the Civil Service Retirement and Disability 
Fund becomes employed in a position within the Department of Defense, 
his annuity shall continue. An annuitant so reemployed shall not be 
considered an employee for purposes of chapter 83 or 84.
``Sec. 9903. Contracting for personal services
    ``(a) Outside the United States.--Funds available to the Department 
of Defense shall be available to contract with individuals for services 
to be performed outside the United States as determined by the 
Secretary to be necessary and appropriate for supporting the 
Department's programs and activities abroad. Such individuals employed 
by contract to perform such services shall not, by virtue of such 
employment, be considered to be employees of the United 
States Government for purposes of any law administered by the Office of 
Personnel Management or under any human resources management system 
established pursuant to this chapter. Such contracts are authorized to 
be negotiated, the terms of the contracts to be prescribed, and the 
work to be performed where necessary, without regard to such statutory 
provisions as relate to the negotiation, making and performance of 
contracts and performance of work in the United States.
    ``(b) National Security Missions.--Notwithstanding any other 
provision of law, sums made available to the Department of Defense by 
appropriation or otherwise may be expended as determined by the 
Secretary to be necessary to carry out the national security mission of 
the Department of Defense, for personal services contracts, including 
personal services without regard to limitations on types of persons to 
be employed.
    ``(c) Experts and Consultants.--
            ``(1) Subject to paragraphs (2) and (3) and notwithstanding 
        the provisions of section 129b of title 10, the Secretary may--
                    ``(A) procure by contract the services of experts 
                or consultants (or of organizations of experts or 
                consultants), who may provide such services with or 
                without compensation, as determined by the Secretary, 
                and may perform such duties as the Secretary may 
                prescribe without being deemed to be employees of the 
                Department of Defense except, at the discretion of the 
                Secretary, for the purposes of--
                            ``(i) the Ethics in Government Act of 1978;
                            ``(ii) chapter 73 of this title; and
                            ``(iii) section 27 of the Office of Federal 
                        Procurement Policy Act; and
                    ``(B) pay in connection with such services travel 
                expenses of individuals, including transportation and 
                per diem in lieu of subsistence while such individuals 
                are traveling from their homes or places of business to 
                official duty stations and return, as may be authorized 
                by law.
            ``(2) In order to procure the services of experts or 
        consultants (or an organization of experts or consultants), the 
        Secretary must determine that--
                    ``(A) the procurement of such services is 
                advantageous to the United States; and
                    ``(B) such services cannot be provided adequately 
                by the Department of Defense.
    ``(d) Implementation.--Implementation of this section shall be at 
the Secretary's sole, exclusive, and unreviewable discretion.
``Sec. 9904. Attracting highly qualified experts
    ``(a) In General.--The Secretary may carry out a program using the 
authority provided in subsection (b) in order to attract highly 
qualified experts in needed occupations, as determined by the 
Secretary.
    ``(b) Authority.--Under the program, the Secretary may--
            ``(1) appoint personnel from outside the civil service and 
        uniformed services (as such terms are defined in section 2101 
        of this title) to positions in the Department of Defense 
        without regard to any provision of this title governing the 
        appointment of employees to positions in the Department of 
        Defense;
            ``(2) prescribe the rates of basic pay for positions to 
        which employees are appointed under paragraph (1) at rates not 
        in excess of the maximum rate of basic pay authorized for 
        senior-level positions under section 5376 of this title, as 
        increased by locality-based comparability payments under 
        section 5304 of this title, notwithstanding any provision of 
        this title governing the rates of pay or classification of 
        employees in the executive branch; and
            ``(3) pay any employee appointed under paragraph (1) 
        payments in addition to basic pay within the limit applicable 
        to the employee under subsection (d)(1).
    ``(c) Limitation on Term of Appointment.--
            ``(1) Except as provided in paragraph (2), the service of 
        an employee under an appointment made pursuant to this section 
        may not exceed 5 years.
            ``(2) The Secretary may, in the case of a particular 
        employee, extend the period to which service is limited under 
        paragraph (1) by up to one additional year if the Secretary 
        determines that such action is necessary to promote the 
        Department of Defense's national security missions.
    ``(d) Limitations on Additional Payments.--
            ``(1) The total amount of the additional payments paid to 
        an employee under this section for any 12-month period may not 
        exceed the least of the following amounts:
                    ``(A) $50,000 in fiscal year 2004, which may be 
                adjusted annually thereafter by the Secretary, with a 
                percentage increase equal to one-half of one percentage 
                point less than the percentage by which the Employment 
                Cost Index, published quarterly by the Bureau of Labor 
                Statistics, for the base quarter of the year before the 
                preceding calendar year exceeds the Employment Cost 
                Index for the base quarter of the second year before 
                the preceding calendar year.
                    ``(B) The amount equal to 50 percent of the 
                employee's annual rate of basic pay.
            ``(2) An employee appointed under this section is not 
        eligible for any bonus, monetary award, or other monetary 
        incentive for service except for payments authorized under this 
        section.
    ``(e) Savings Provisions.--In the event that the Secretary 
terminates this program, in the case of an employee who, on the day 
before the termination of the program, is serving in a position 
pursuant to an appointment under this section--
            ``(1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    ``(A) the period for which the employee was 
                appointed; or
                    ``(B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under this section before the termination of the 
                program; and
            ``(2) the rate of basic pay prescribed for the position 
        under this section may not be reduced as long as the employee 
        continues to serve in the position without a break in service.
``Sec. 9905. Employment of older Americans
    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary, at his sole, exclusive, and unreviewable discretion, may 
appoint older Americans into positions in the excepted service for a 
period not to exceed two years, provided that--
            ``(1) any such appointment shall not result in--
                    ``(A) the displacement of individuals currently 
                employed by the Department of Defense (including 
                partial displacement through reduction of non-overtime 
                hours, wages, or employment benefits); or
                    ``(B) the employment of any individual when any 
                other person is in a reduction-in-force status from the 
                same or substantially equivalent job within the 
                Department of Defense; and
            ``(2) the individual to be appointed is otherwise qualified 
        for the position, as determined by the Secretary.
    ``(b) Effect on Existing Retirement Benefits.--Notwithstanding any 
other provision of law, an individual appointed pursuant to subsection 
(a) who otherwise is receiving an annuity, pension, social security 
payment, retired pay, or other similar payment shall not have the 
amount of said annuity, pension, social security, or other similar 
payment reduced as a result of such employment.
    ``(c) Extension of Appointment.--Notwithstanding subsection (a), 
the Secretary may extend an appointment made pursuant to this section 
for up to an additional two years if the individual employee possesses 
unique knowledge or abilities that are not otherwise available to the 
Department of Defense.
    ``(d) Definition.--For purposes of this section, the term `older 
American' means any citizen of the United States who is at least 55 
years of age.
``Sec. 9906. Special pay and benefits for certain employees outside the 
              United States
    ``The Secretary may provide to certain civilian employees of the 
Department of Defense assigned to activities outside the United States 
and designated by the Secretary for the purposes of this subsection--
            ``(1) allowances and benefits--
                    ``(A) comparable to those provided by the Secretary 
                of State to members of the Foreign Service under 
                chapter 9 of title I of the Foreign Service Act of 1980 
                (Public Law 96-465, 22 U.S.C. 4081 et seq.) or any 
                other provision of law; or
                    ``(B) comparable to those provided by the Director 
                of Central Intelligence to personnel of the Central 
                Intelligence Agency; and
            ``(2) special retirement accrual benefits and disability in 
        the same manner provided for by the Central Intelligence Agency 
        Retirement Act (50 U.S.C. 2001 et seq.) and in section 18 of 
        the Central Intelligence Agency Act of 1949 (50 U.S.C. 
        403r).''.
            (2) The table of chapters for part III of such title is 
        amended by adding at the end of subpart I the following new 
        item:

``99. Department of Defense National Security Personnel         9901''.
                            System.
    (b) Impact on Department of Defense Civilian Personnel.--
            (1) Any exercise of authority under chapter 99 of such 
        title (as added by subsection (a)), including under any system 
        established under such chapter, shall be in conformance with 
        the requirements of this subsection.
            (2) No other provision of this Act or of any amendment made 
        by this Act may be construed or applied in a manner so as to 
        limit, supersede, or otherwise affect the provisions of this 
        section, except to the extent that it does so by specific 
        reference to this section.
    (c) Conforming Amendments.--
            (1) Section 6 of the Civil Service Miscellaneous Amendments 
        Act of 1983 (Public Law 98-224; 98 Stat. 49), as amended, is 
        repealed.
            (2) Section 342 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2721), as 
        amended, is repealed.
            (3) Section 1101 of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
        Stat. 2139), as amended, is repealed.
            (4) Section 4308 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 669), as 
        amended, is repealed.---

SEC. 102. DEFENSE ACQUISITION WORKFORCE IMPROVEMENT ACT STREAMLINING.

    (a) In General.--Part II of subtitle A of title 10, United States 
Code, is amended by inserting after chapter 87 the following new 
chapter:

       ``CHAPTER 87A: DEFENSE ACQUISITION WORKFORCE STREAMLINING

``Sec.
``1701. Defense acquisition, technology, and logistics workforce.
``1702. Acquisition, technology, and logistic positions.
``1703. Assignment to critical acquisition, technology, and logistic 
                            positions.
``1704. Acquisition corps.
``1705. Defense Acquisition University.
``Sec. 1701. Defense acquisition, technology, and logistics workforce
    ``(a) In General.--The Secretary of Defense shall establish 
policies and procedures for the effective management (including 
accession, education, training, and career development) of persons 
serving in acquisition, technology, and logistics positions in the 
Department of Defense.
    ``(b) Implementation.--Implementation of this chapter shall be 
consistent with chapter 99 of title 5.
    ``(c) Special Programs.--Pursuant to subsection (a), the Secretary 
may establish--
            ``(1) a program to develop the knowledge, skills, and 
        abilities of individuals to meet the qualification requirements 
        established in section 1702 of this title to serve in 
        acquisition, technology, and logistics positions;
            ``(2) a contingency contracting force, consisting of 
        members of the armed forces and civilian employees whose 
        mission is to deploy in support of contingency operations and 
        other operations of the Department of Defense and establish the 
        qualifications for personnel assigned to such positions; and
            ``(3) such programs of rotation, internship, cooperative 
        education, scholarship, tuition reimbursement, and centralized 
        job referral as the Secretary deems appropriate.
    ``(d) Definitions.--
            ``(1) The term `Acquisition Corps' means that group of 
        military personnel and civilian employees of the Department of 
        Defense selected pursuant to criteria established under section 
        1704 of this title.
            ``(2) The term `acquisition, technology, and logistics 
        position' means a position designated pursuant to section 1702 
        of this title.
            ``(3) The term `acquisition, technology, and logistics 
        workforce' means those military personnel and civilian 
        employees of the Department of Defense occupying positions 
        designated by the Secretary of Defense as acquisition, 
        technology, and logistics positions pursuant to section 1702 of 
        this title.
            ``(4) The term `critical acquisition, technology, and 
        logistics position' means a position designated pursuant to 
        section 1702 of this title.
``Sec. 1702. Acquisition, technology, and logistics positions
    ``At his sole, exclusive, and unreviewable discretion, the 
Secretary of Defense may--
            ``(1) establish and designate positions within the 
        Department of Defense as acquisition, technology, and logistics 
        positions subject to this chapter;
            ``(2) establish minimum qualification requirements and 
        standards for each acquisition, technology, and logistics 
        position or group of positions (to include the minimum level of 
        training, education, and experience necessary to meet the 
        minimum qualifications for each position or group of 
        positions), based on the level of complexity of duties carried 
        out in the position education requirements;
            ``(3) establish for civilian employees and military 
        personnel in acquisition, technology, and logistics positions 
        one or more career paths that are identified in terms of the 
        education, training, experience, and assignments necessary for 
        career progression to the most senior acquisition, technology, 
        and logistics positions in the Department of Defense; and
            ``(4) within those positions designated as acquisition, 
        technology, and logistics positions, designate as critical 
        acquisition, technology, and logistics positions those 
        positions that, because of the knowledge, skills, and abilities 
        required to perform successfully the duties required are 
        considered critical to the success of the Department of Defense 
        acquisition mission.
``Sec. 1703. Assignments to critical acquisition, technology, and 
              logistics positions
    ``The Secretary of Defense at his sole, exclusive, and unreviewable 
discretion may--
            ``(1) establish minimum lengths of time for assignments of 
        military and civilian personnel to serve in critical 
        acquisition, technology, and logistics positions;
            ``(2) limit reassignments within the period specified in 
        paragraph (1); and
            ``(3) require that one or more senior acquisition officials 
        within the Department of Defense be responsible for the 
        assignment of military and civilian personnel to fill critical 
        acquisition, technology, and logistics positions.
``Sec. 1704. Acquisition corps
    ``(a) Establishment.--The Secretary of Defense at this sole, 
exclusive, and unreviewable discretion may--
            ``(1) establish within the Department of Defense an 
        acquisition corps; and
            ``(2) establish criteria for the selection of military 
        personnel and civilian employees to that corps.
    ``(b) Promotion Rate for Officers in Acquisition Corps.--The 
qualifications of commissioned officers selected for that acquisition 
corps shall be such that those officers are expected, as a group, to be 
promoted at a rate not less than the rate for all line (or the 
equivalent) officers of the same armed force (both in the zone and 
below the zone) in the same grade.
``Sec. 1705. Defense Acquisition University
    ``(a) In General.--The Secretary of Defense may establish and 
maintain a Defense Acquisition University to perform such educational, 
training, and research and analysis functions as the Secretary 
determines appropriate.
    ``(b) Faculty Members.--
            ``(1) The faculty of the university may consist of such 
        military personnel, civilian employees, and other personnel as 
        the Secretary determines are necessary to meet the mission of 
        the university.
            ``(2) The Secretary of Defense may establish one or more 
        systems of compensation and management for the civilian 
        employees serving as faculty members.''.
    (b) Clerical and Conforming Amendments.--
            (1) Chapter 87 of such title is repealed.
            (2) The table of chapters at the beginning of subtitle A of 
        such title and the beginning of part II of such subtitle are 
        amended by striking the item relating to chapter 87 and 
        inserting the following new item:

``87A. Defense Acquisition Workforce Streamlining...........    1701''.
            (3) Such title is further amended by striking ``acquisition 
        workforce'' each place it appears and inserting ``acquisition, 
        technology, and logistics workforce''.

SEC. 103. PRIORITY PLACEMENT OF DISPLACED CIVILIAN EMPLOYEES.

    (a) In General.--Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1599e. Defense priority placement program
    ``(a) Priority Placement.--The Secretary of Defense, at his sole 
and exclusive discretion and notwithstanding the provisions of title 5, 
may establish one or more programs to promote stability of employment 
for Department of Defense civilian employees affected by changing 
mission requirements, streamlining efforts, overseas rotations 
(including rotations undertaken pursuant to section 1586 of this 
title), preferences established by law, and other such actions as the 
Secretary shall determine, by providing such employees priority 
consideration, as defined by the Secretary, for placement in other 
positions within the Department of Defense.
    ``(b) Construction.--The content of any program developed under 
subsection (a), and any personnel action undertaken pursuant to such 
program, shall not be reviewable outside the Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting at the end the following new item:

``1599e. Defense priority placement program.''.

SEC. 104. ESTABLISHMENT OF AUXILIARIES WITHIN THE MILITARY DEPARTMENTS 
              TO COORDINATE VOLUNTEERS.

    (a) In General.--Part I of subtitle E of title 10, United States 
Code, is amended by inserting after chapter 1013 the following new 
chapter:

                      ``CHAPTER 1015--AUXILIARIES

``Sec.
``10701. Administration of auxiliaries.
``10702. Purpose of an auxiliary.
``10703. Eligibility, enrollments.
``10704. Members of the auxiliary; status.
``10705. Disenrollment.
``10706. Membership in other organizations.
``10707. Use of member's equipment and facilities.
``10708. Availability of appropriations.
``10709. Assignment and performance of duties.
``10710. Injury or death in line of duty.
``10711. Limitation on liability.
``Sec. 10701. Administration of auxiliaries
    ``(a) An auxiliary of a military department is a nonmilitary 
organization administered by the Secretary of the military department 
concerned under the direction of the Secretary of Defense. For command, 
control, and administrative purposes, the auxiliary shall include such 
organizational elements and units as are approved by the Secretary of 
the military department concerned, including, but not limited to, a 
national board and staff (to be known as the `auxiliary headquarters 
unit'), districts, regions, divisions, and other organizational 
elements and units. The auxiliary organization and its officers shall 
have such rights, privileges, powers, and duties as may be granted to 
them by the Secretary of the military department concerned, consistent 
with this title and other applicable provisions of law. The Secretary 
of the military department concerned may designate the authority and 
responsibilities of the officers of the auxiliary that the Secretary 
considers necessary or appropriate for the functioning, organization, 
and internal administration of the auxiliary.
    ``(b) The national board of an auxiliary, and any auxiliary 
district or region, may form a corporation under State law in 
accordance with policies established by the Secretary of the military 
department concerned.
``Sec. 10702. Purpose of an auxiliary
    ``The purpose of an auxiliary is to assist the military department 
under which it is established, as authorized by the Secretary of the 
military department concerned, in performing any non-combat function, 
power, duty, role, mission, or operation authorized by law for that 
military department.
``Sec. 10703. Eligibility, enrollments
    ``An auxiliary shall be composed of citizens of the United States 
and its territories and possessions, who by reason of their special 
training or experience are deemed by the Secretary of the military 
department concerned to be qualified for duties and functions of the 
auxiliary, and who may be enrolled therein pursuant to regulations 
established by the Secretary of the military department concerned.
``Sec. 10704. Members of the auxiliary; status
    ``(a) Except as otherwise provided in this chapter, a member of an 
auxiliary shall not be considered a Federal employee and shall not be 
subject to the provisions of law relating to Federal employment, 
including those relating to hours of work, rates of compensation, 
leave, unemployment compensation, and Federal employee benefits.
    ``(b) A member of an auxiliary, while assigned to duty, shall be 
considered to be a Federal employee and shall be subject to the 
provisions of law relating to ethics, conflicts of interest, corruption 
and any other criminal or civil statutes and regulations governing the 
conduct of Federal employees.
    ``(c) A member of an auxiliary, while assigned to duty, shall be 
considered to be a Federal employee for purposes of the following:
            ``(1) Compensation for work injuries under chapter 81 of 
        title 5.
            ``(2) The resolution of claims relating to damage to or 
        loss of personal property of the member incident to service 
        under the Military Personnel and Civilian Employees' Claims Act 
        of 1964 (31 U.S.C. 3721).
    ``(d) A member of the auxiliary, while assigned to duty, shall be 
deemed to be a person acting under an officer of the United States or 
an agency thereof for purposes of section 1442(a)(1) of title 28.
    ``(e) A member of the auxiliary, while assigned to duty, shall be 
deemed to be a member of a uniformed service for purposes of sections 
10708 and 10710 of this title.
``Sec. 10705. Disenrollment
    ``Members of an auxiliary may be disenrolled pursuant to applicable 
regulations established by the Secretary of the military department 
concerned.
``Sec. 10706. Membership in other organizations
    ``Members of an auxiliary may be appointed or enlisted in a Reserve 
component, pursuant to applicable regulations. Membership in the 
auxiliary shall not bar membership in any other naval or military 
organization.
``Sec. 10707. Use of member's equipment and facilities
    ``The military department concerned may utilize for any purpose 
incident to carrying out its functions and duties, as authorized by the 
Secretary, equipment or facilities placed at its disposition for any 
such purpose by any member of the auxiliary, by any corporation, 
partnership, or association, or by any State or political subdivision 
thereof.
``Sec. 10708. Availability of appropriations
    ``(a) Appropriations of the military department concerned may be 
made available for the payment of actual necessary traveling expenses 
and subsistence, or commutation of ration allowance in lieu of 
subsistence, of members of the auxiliary assigned to authorized duties, 
but shall not be available for the payment of compensation for personal 
services, incident to such operation, other than to personnel of the 
military department.
    ``(b)(1) The Secretary of the military department concerned may pay 
interest on a claim approved by the Secretary under this section in any 
case in which a payment authorized under this section is not made 
within 60 days after the submission of the claim in a manner prescribed 
by the Secretary.
    ``(2) The rate of interest for purposes of this section shall be 
the annual rate established under section 6621 of the Internal Revenue 
Code of 1986.
``Sec. 10709. Assignment and performance of duties
    ``No member of an auxiliary, solely by reason of such membership, 
shall be vested with, or exercise, any right, privilege, power, or duty 
vested in or imposed upon the personnel of the military department 
concerned, except that any such member may, under applicable 
regulations, be assigned duties which, after appropriate training and 
examination, he has been found competent to perform, to effectuate the 
purposes of the auxiliary. No member of the auxiliary shall be placed 
in charge of an activity or organization assigned to the military 
department unless he has been designated specifically by authority of 
the Secretary of the military department concerned to perform such 
duty. Members of the auxiliary, when assigned to duties as herein 
authorized, shall, unless otherwise limited by the Secretary of the 
military department concerned, be vested with the same power and 
authority in the execution of such duties as members of the regular or 
Reserve of that military department assigned to similar duty. When any 
member of the auxiliary is assigned to such duty, he may, pursuant to 
regulations issued by the Secretary, be paid actual necessary traveling 
expenses, including a per diem allowance in conformity with 
standardized Government travel regulations in lieu of subsistence, 
while traveling and while on duty away from his home. No per diem shall 
be paid for any period during which quarters and subsistence in kind 
are furnished by the Government.
``Sec. 10710. Injury or death in line of duty
    ``(a) If a member of an auxiliary is physically injured, or dies as 
a result of physical injury, and the injury is incurred while 
performing any duty to which he has been assigned by competent military 
authority, the law authorizing compensation for employees of the United 
States suffering injuries while in the performance of their duties, 
applies, subject to this section. That law shall be administered by the 
Secretary of Labor to the same extent as if the member was a civil 
employee of the United States and was injured in the performance of 
that duty. For benefit computation, regardless of pay or pay status, 
the member is considered to have had monthly pay of the monthly 
equivalent of the minimum rate of basic pay in effect for grade GS-9 of 
the General Schedule on the date the injury is incurred.
    ``(b) This section does not apply if the workmen's compensation law 
of a State, a territory, or another jurisdiction provides coverage 
because of a concurrent employment status of the member. When the 
member or a dependent is entitled to a benefit under this section and 
also to a concurrent benefit from the United States on account of the 
same disability or death, the member or dependent, as appropriate, 
shall elect which benefit to receive.
    ``(c) If a claim is filed under this section with the Secretary of 
Labor for benefits because of an alleged injury or death, the Secretary 
of Labor shall notify the Secretary of the military department 
concerned who shall direct an investigation into the facts surrounding 
the alleged injury or death. The Secretary of the military department 
concerned then shall certify to the Secretary of Labor whether or not 
the injured or deceased person was a member of an auxiliary, the 
person's military status, and whether or not the injury or death was 
incurred incident to military service.
    ``(d) A member of an auxiliary, who incurs or aggravates an injury, 
illness, or disease while performing a duty to which the member has 
been assigned by competent authority, may be given medical care in 
facilities of the uniform services.
    ``(e) In administering section 8133 of title 5, for a person 
covered by this section--
            ``(1) the percentages applicable to payments under that 
        section are--
                    ``(A) 45 percent under subsection (a)(2) of that 
                section, where the member died fully or currently 
                insured under title II of the Social Security Act (42 
                U.S.C. 401 et seq.), with no additional payments for a 
                child or children so long as the widow or widower 
                remains eligible for payments under that subsection;
                    ``(B) 20 percent under subsection (a)(3) of that 
                section, for one child, and 10 percent additional for 
                each additional child, not to exceed a total of 75 
                percent, where the member died fully or currently 
                insured under title II of the Social Security Act; and
                    ``(C) 25 percent under subsection (a)(4) of that 
                section, if one parent was wholly dependent for support 
                upon the deceased member at the time of the member's 
                death and the other was not dependent to any extent; 16 
                percent to each if both were wholly dependent; and if 
                one was, or both were, partly dependent, a 
                proportionate amount in the discretion of the Secretary 
                of Labor;
            ``(2) payments may not be made under subsection (a)(5) of 
        that section; and
            ``(3) the Secretary of Labor shall inform the Commissioner 
        of Social Security whenever a claim is filed and eligibility 
        for compensation is established under subsection (a)(2) or 
        (a)(3) of section 8133 of title 5. The Commissioner of Social 
        Security then shall certify to the Secretary of Labor whether 
        or not the member concerned was fully or currently insured 
        under title II of the Social Security Act at the time of the 
        member's death.
``Sec. 10711. Limitation on liability
    ``A member of an auxiliary, while assigned to duty, shall be deemed 
a volunteer of a nonprofit organization or governmental entity for 
purposes of chapter 139 of title 42 (popularly known as the `Volunteer 
Protection Act'). Subsection (d) of section 4 of such Act (42 U.S.C. 
14503(d)) shall not apply for purposes of any claim against a member of 
an auxiliary.''.
    (b) Clerical Amendment.--The tables of chapters at the beginning of 
such subtitle and the beginning of part I of such subtitle are amended 
by inserting after the item relating to chapter 1013 the following new 
item:

``1015. Auxiliaries.........................................   10701''.

 Subtitle B--Transformation of Management of Senior Military Leadership

SEC. 111. EQUIVALENCY OF PAY FOR SERVICE CHIEFS OF STAFF AND COMBATANT 
              COMMANDERS.

    (a) Pay for Certain Positions.--
            (1) Notwithstanding any other provision of law, but subject 
        to paragraph (2), the rate of basic pay for officers 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 
        for the Air Force, Commandant of the Marine Corps, Commandant 
        of the Coast Guard, or Commander of a Combatant Command, shall 
        be 110 percent of the basic pay for an officer at the grade of 
        O-10 with over 26 years of service, regardless of the 
        cumulative years of service computed under section 205 of title 
        37, United States Code.
            (2) The actual rate of basic pay may not exceed the rate of 
        pay for level III of the Executive Schedule.
    (b) Retired Pay.--Section 1406(i) of title 10, United States Code, 
is amended--
            (1) in the heading, by inserting ``Combatant Commanders,'' 
        after ``Chiefs of Service''; and
            (2) in paragraph (1), by inserting ``as a Combatant 
        Commander,'' after ``Chief of Service,''.

SEC. 112. LENGTH OF SERVICE FOR THE SENIOR LEADERS OF THE MILITARY 
              DEPARTMENTS.

    (a) Chief of Staff of the Army.--Paragraph (1) of section 3033(a) 
of title 10, United States Code, is amended to read as follows:
    ``(a)(1) There is a Chief of Staff of the Army, appointed for a 
period of four years by the President, by and with the advice and 
consent of the Senate, from the general officers of the Army. He serves 
at the pleasure of the President, and the President may extend the 
length of service as he determines necessary.''.
    (b) Chief of Naval Operations.--Paragraph (1) of section 5033(a) of 
such title is amended to read as follows:
    ``(a)(1) There is a Chief of Naval Operations, appointed by the 
President, by and with the advice and consent of the Senate. The Chief 
of Naval Operations shall be appointed for a term of four years, from 
officers on the active-duty list in the line of the Navy who are 
eligible to command at sea and who hold the grade of rear admiral or 
above. He serves at the pleasure of the President, and the President 
may extend the length of service as he determines necessary.''.
    (c) Commandant of the Marine Corps.--Paragraph (1) of section 
5043(a) of such title is amended to read as follows:
    ``(a)(1) There is a Commandant of the Marine Corps, appointed by 
the President, by and with the advice and consent of the Senate. The 
Commandant shall be appointed for a term of four years from officers on 
the active-duty list of the Marine Corps not below the grade of 
colonel. He serves at the pleasure of the President, and the President 
may extend the length of service as he determines necessary.''.
    (d) Chief of Staff of the Air Force.--Paragraph (1) of section 
8033(a) of such title is amended to read as follows:
    ``(a)(1) There is a Chief of Staff of the Air Force, appointed for 
a period of four years by the President, by and with the advice and 
consent of the Senate, from the general officers of the Air Force. He 
serves at the pleasure of the President, and the President may extend 
the length of service as he determines necessary.''.

SEC. 113. LENGTH OF SERVICE FOR THE CHAIRMAN AND VICE CHAIRMAN OF THE 
              JOINT CHIEFS OF STAFF.

    (a) Chairman of the Joint Chiefs of Staff.--Subsection (a) of 
section 152 of title 10, United States Code, is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) There is a Chairman of the Joint Chiefs of Staff, 
        appointed by the President, by and with the advice and consent 
        of the Senate, from the officers of the regular components of 
        the armed forces. The Chairman serves at the pleasure of the 
        President for a term of two years, and the President may 
        appoint the Chairman for additional two-year terms as he 
        determines necessary.''; and
            (2) by striking paragraph (3).
    (b) Vice Chairman of the Joint Chiefs of Staff.--Paragraph (3) of 
section 154(a) of such title is amended to read as follows:
            ``(3) The Vice Chairman serves at the pleasure of the 
        President for a term of two years, and the President may 
        appoint the Chairman for additional two-year terms as he 
        determines necessary.''.

SEC. 114. LENGTH OF TERMS FOR THE ASSISTANTS TO THE CHAIRMAN OF THE 
              JOINT CHIEFS OF STAFF FOR NATIONAL GUARD AND RESERVE 
              MATTERS.

    Subsection (c) of section 901 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1853), is 
amended by striking ``for a term of two years and may be continued in 
that assignment in the same manner for one additional term. However, in 
time of war there is no limit on the number of terms.''.

SEC. 115. ELIMINATE MANDATORY TERMS OF OFFICE FOR CERTAIN GENERAL AND 
              FLAG STAFF OFFICERS.

    (a) Army.--
            (1) Chiefs of branches.--Section 3036 of title 10, United 
        States Code, is amended--
                    (A) by repealing subsection (c); and
                    (B) by redesignating subsections (d) and (e) as 
                subsections (c) and (d), respectively.
            (2) Judge advocate general and assistant judge advocate 
        general.--Section 3037(a) of such title is amended by striking 
        ``An officer appointed as the Judge Advocate General or 
        Assistant Judge Advocate General normally holds office for four 
        years. However, the President may terminate or extend the 
        appointment at any time.''.
            (3) Deputy and assistant chiefs of branches.--Section 
        3039(a) of such title is amended by striking ``for a tour of 
        duty of not more than four years,''.
            (4) Chief of army nurse corps.--Section 3069(b) of such 
        title is amended by striking ``, but not for more than four 
        years, and may not be reappointed to the same position''.
            (5) Chief of the army medical specialist corps.--Section 
        3070(b) of such title is amended by striking ``, but not for 
        more than four years, and may not be reappointed''.
    (b) Navy/Marine Corps.--
            (1) Chief of the bureau of medicine and surgery.--Section 
        5137(a) of such title is amended by striking ``for a term of 
        four years,''.
            (2) Chief of the bureau of naval personnel.--Section 
        5141(a) of such title is amended by striking ``for a term of 
        four years,''.
            (3) Chief of chaplains.--Subsection (c) of section 5142 of 
        such title is repealed.
            (4) Judge advocate general.--Section 5148(b) of such title 
        is amended by striking ``, for a term of four years''.
            (5) Director of the nurse corps or director of the medical 
        service corps.--Section 5150(c) of such title is amended by 
        striking ``for a term of four years,''.
    (c) Air Force Judge Advocate General and Deputy Judge Advocate 
General.--Section 8037(a) of such title is amended--
            (1) in subsection (a), by striking ``The term of office is 
        four years, but may be sooner terminated or extended by the 
        President.''; and
            (2) in subsection (d)(1), by striking ``The term of office 
        of the Deputy Judge Advocate General is four years, but may be 
        sooner terminated or extended by the President.''.

SEC. 116. LATERAL REASSIGNMENT OF CERTAIN GENERALS AND ADMIRALS.

    Subsection (a) of section 601 of title 10, United States Code, is 
amended to read as follows:
    ``(a)(1) The President may designate positions of importance and 
responsibility to carry the grade of general or admiral or lieutenant 
general or vice admiral. The President may assign to any such position 
an officer of the Army, Navy, Air Force, or Marine Corps who is serving 
on active duty in any grade above colonel or, in the case of an officer 
of the Navy, any grade above captain. An officer assigned to any such 
position has the grade specified by the President for such position, as 
provided in paragraph (2).
    ``(2) An officer may be appointed initially to the grade of general 
or admiral or lieutenant general or vice admiral if he is appointed to 
that grade by the President, by and with the advice and consent of the 
Senate. If the President or Secretary of Defense reassigns such an 
officer to another position of importance and responsibility at the 
same grade, no further appointment to that grade is required unless the 
position to which the officer is reassigned is established by law.
    ``(3) Except as provided in subsection (b), the appointment of an 
officer to a grade under this section for service in a position of 
importance and responsibility ends on the date of the termination of 
the assignment of the officer to that position.''.

SEC. 117. ELIMINATE DISTRIBUTION QUOTAS FOR GENERAL AND FLAG OFFICERS 
              SERVING IN THE GRADES OF O-7 AND O-8.

    Section 525 of title 10, United States Code, is amended--
            (1) by repealing subsection (a); and
            (2) by redesignating subsections (b), (c), and (d) as 
        subsections (a), (b), and (c), respectively.

SEC. 118. EXTENDING AGE LIMITS FOR ACTIVE DUTY GENERAL AND FLAG 
              OFFICERS.

    Section 1251, of title 10, United States Code, is amended to read 
as follows:
``Sec. 1251. Regular commissioned officers; exceptions
    ``(a)(1) Unless retired or separated earlier, each regular 
commissioned officer of the Army, Air Force, or Marine Corps serving in 
a grade at or above brigadier general or rear admiral (lower half) in 
the Navy shall be retired on the first day of the month following the 
month in which the officer becomes 68 years of age.
    ``(2) Notwithstanding paragraph (1), the Secretary of Defense may 
defer the retirement of a general or flag officer, but such a deferment 
may not extend beyond the first day of the month following the month in 
which the officer becomes 72 years of age.
    ``(b)(1) Unless retired or separated earlier, each regular 
commissioned officer of the Army, Air Force, or Marine Corps (other 
than an officer who is a permanent professor, director of admissions, 
or registrar of the United States Military Academy or United States Air 
Force Academy or a commissioned warrant officer) serving in a grade 
below brigadier general or rear admiral (lower half) in the Navy shall 
be retired on the first day of the month following the month in which 
he becomes 62 years of age. An officer who is a permanent professor at 
the United States Military Academy or United States Air Force Academy, 
the director of admissions at the United States Military Academy, or 
the registrar of the United States Air Force Academy shall be retired 
on the first day of the month following the month in which he becomes 
64 years of age.
    ``(2) The Secretary of the military department concerned may defer 
the retirement under paragraph (1) of a health professions officer if 
during the period of the deferment the officer will be performing 
duties consisting primarily of providing patient care or performing 
other clinical duties.
    ``(3) The Secretary of the military department concerned may defer 
the retirement under paragraph (1) of an officer who is appointed or 
designated as a chaplain if the Secretary determines that such deferral 
is in the best interest of the military department concerned.
    ``(4)(A) Except as provided in subparagraph (B), a deferment under 
this subsection may not extend beyond the first day of the month 
following the month in which the officer becomes 68 years of age.
    ``(B) The Secretary of the military department concerned may extend 
a deferment under this subsection beyond the day referred to in 
subparagraph (A) if the Secretary determines that extension of the 
deferment is necessary for the needs of the military department 
concerned. Such an extension shall be made on a case-by-case basis and 
shall be for such period as the Secretary considers appropriate.
    ``(5) For purposes of this subsection, a health professions officer 
is--
            ``(A) a medical officer;
            ``(B) a dental officer; or
            ``(C) an officer in the Army Nurse Corps, an officer in the 
        Navy Nurse Corps, or an officer in the Air Force designated as 
        a nurse.''.

SEC. 119. EXTENDING AGE LIMITS FOR RESERVE AND NATIONAL GUARD GENERAL 
              AND FLAG OFFICERS.

    (a) Maximum Age for Reserve Component General and Flag Officers.--
            (1) Section 14511 of title 10, United States Code, is 
        amended to read as follows:
``Sec. 14511. Separation at age 68: reserve officers in grades above 
              colonel or Navy captain
    ``(a) Maximum Age.--Unless retired, transferred to the Retired 
Reserve, or discharged at an earlier date, each reserve officer of the 
Army, Air Force, or Marine Corps in the grade above colonel and each 
reserve officer of the Navy in the grade above captain shall be 
separated in accordance with section 14515 of this title on the last 
day of the month in the month in which the officer becomes 68 years of 
age.
    ``(b) Retention Beyond Age 68.--Notwithstanding subsection (a), the 
Secretary of Defense may defer the retirement of a reserve officer 
serving in a grade above colonel in the case of the Army, Air Force, or 
Marine Corps, or a reserve officer serving in a grade above captain in 
the case of the Navy, but such a deferment may not extend beyond the 
last day of the month following the month in which the officer becomes 
72 years of age.''.
            (2) Sections 14510 and 14512 of such title are repealed.
    (b) Repeal Years of Service Requirement for Reserve Component 
General and Flag Officer.--Section 14508 of such title is repealed.
    (c) Elimination of Term Limitation for Reserve Component General 
and Flag Officer Positions.--
            (1) Section 10502 of such title is amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively.
            (2) Subsection (a) of section 10505 of such title is 
        amended--
                    (A) by striking paragraph (3); and
                    (B) by redesignating paragraph (4) as paragraph 
                (3).
            (3) Subsection (c) of section 3038 of such title is amended 
        to read to read as follows:
    ``(c) Grade.--The Chief of Army Reserve, while so serving, holds 
the grade of lieutenant general.''.
            (4) Subsection (c) of section 5143 of such title is amended 
        to read as follows:
    ``(c) Grade.--The Chief of Naval Reserve, while so serving, holds 
the grade of vice admiral.''.
            (5) Subsection (c) of section 5144 of such title is amended 
        to read as follows:
    ``(c) Grade.--The Commander, Marine Forces Reserve, while so 
serving, holds the grade of lieutenant general.''.
            (6) Subsection (c) of section 8038 of such title is amended 
        to read as follows:
    ``(c) Grade.--(1) The Chief of Air Force Reserve, while so serving, 
holds the grade of lieutenant general.''.
            (7) Paragraph (3) of section 10506(a) of such title is 
        amended by striking subparagraph (E).
    (d) Conforming Amendments.--
            (1) Section 10214 of such title is amended by striking 
        ``sections 12004(b)(1), 12215, 12642(c), 14507(b), 14508(e), 
        and 14512'' and inserting ``sections 12004(b)(1), 12215, 
        12642(c), and 14507(b)''.
            (2) Section 14514 of such title is amended by striking 
        ``section 14507, 14508, 14704, or 14705'' and inserting 
        ``section 14507, 14704, or 14705''.
            (3) Section 14515 of such title is amended by striking 
        ``section 14509, 14510, 14511, or 14512'' and inserting 
        ``section 14509 or 14511''.
            (4) Section 14702 of such title is amended by striking 
        ``section 14506, 14507, or 14508'' and inserting ``section 
        14506 or 14507''.
            (5) Section 14705 of such title is repealed.
            (6) The table of sections at the beginning of chapter 1407 
        of such title is amended--
                    (A) by amending the item relating to section 14511 
                to read as follows:

``14511. Separation at age 68: reserve officers in grades above colonel 
                            or Navy captain'';
                    and
                    (B) by striking the items relating to sections 
                14508, 14510, and 14512.
            (7) Subsection (a) of section 324 of title 32, United 
        States Code, is amended by striking ``An officer'' and 
        inserting ``Except as provided in section 14511 of title 10, an 
        officer''.

SEC. 120. ELIMINATE MANDATORY RETIREMENT OF ACTIVE DUTY GENERAL AND 
              FLAG OFFICERS AFTER 30 YEARS OF SERVICE.

    (a) In General.--Sections 635 and 636 of title 10, United States 
Code, are repealed.
    (b) Conforming Amendment.--Section 637(b) of such title is amended-
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 121. MORE FLEXIBLE RETIREMENT RULES FOR MILITARY OFFICERS.

    (a) In General.--Section 1370 of title 10, United States Code, is 
amended to read as follows:
``Sec. 1370. Commissioned officers: general rule; exceptions
    ``(a) Rule for Retirement in Highest Grade Held Satisfactorily.--
            ``(1) Unless entitled to a higher retired grade under some 
        other provision of law, a commissioned officer (other than a 
        commissioned warrant officer) of the Army, Navy, Air Force, or 
        Marine Corps who retires under any provision of law other than 
        chapter 61 or chapter 1223 of this title shall, subject to the 
        criteria specified under paragraph (2) or (3), be retired in 
        the highest grade in which he served on active duty 
        satisfactorily, as determined by the Secretary of the military 
        department concerned.
            ``(2) In order to be eligible for voluntary retirement in a 
        grade at or below the grade of major or lieutenant commander, a 
        commissioned officer of the Army, Navy, Air Force, or Marine 
        Corps covered by paragraph (1) must have served on active duty 
        in that grade for not less than six months.
            ``(3)(A) In order to be eligible for voluntary retirement 
        in a grade above major or lieutenant commander and below 
        brigadier general or rear admiral (lower half), a commissioned 
        officer of the Army, Navy, Air Force, or Marine Corps covered 
        by paragraph (1) must have served on active duty in that grade 
        for not less than three years, except that the Secretary of 
        Defense may authorize the Secretary of the military department 
        concerned to reduce such period to a period not less than two 
        years.
            ``(B) An officer at or above the grade of lieutenant 
        general or vice admiral may be retired in the highest grade in 
        which he served on active duty satisfactorily, upon approval by 
        the Secretary of the military department concerned and 
        concurrence 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) The President may waive subparagraph (A) in 
        individual cases involving extreme hardship or exceptional or 
        unusual circumstances. The authority of the President under the 
        preceding sentence may not be delegated.
            ``(4) A reserve or temporary officer who is notified that 
        he will be released from active duty without his consent, and 
        thereafter requests retirement under section 3911, 6323, or 
        8911 of this title and is retired pursuant to that request, is 
        considered for purposes of this section to have been retired 
        involuntarily. An officer retired pursuant to section 
        1186(b)(1) of this title is considered for purposes of this 
        section to have been retired voluntarily.
    ``(b) Retirement in Next Lower Grade.--An officer whose length of 
service in the highest grade he held while on active duty does not meet 
the service in grade requirements specified in subsection (a) or whose 
service on active duty in that grade was not determined to be 
satisfactory by the Secretary of the military department concerned 
shall be retired in the next lower grade in which he served on active 
duty satisfactorily, as determined by the Secretary of the military 
department concerned, for not less than six months.
    ``(c) Reserve Officers.--
            ``(1) Unless entitled to a higher grade, or to credit for 
        satisfactory service in a higher grade, under some other 
        provision of law, a person who is entitled to retired pay under 
        chapter 1223 of this title shall, upon application under 
        section 12731 of this title, be credited with satisfactory 
        service in the highest grade in which that person served 
        satisfactorily at any time in the armed forces, as determined 
        by the Secretary concerned in accordance with this subsection.
            ``(2) In order to be credited with satisfactory service in 
        an officer grade (other than a warrant officer grade) below the 
        grade of lieutenant colonel or commander, a person covered by 
        paragraph (1) must have served satisfactorily in that grade (as 
        determined by the Secretary of the military department 
        concerned) as a reserve commissioned officer in an active 
        status, or in a retired status on active duty, for not less 
        than six months.
            ``(3)(A)(i) In order to be credited with satisfactory 
        service in an officer grade above major or lieutenant commander 
        and below brigadier general or rear admiral (lower half), a 
        person covered by paragraph (1) must have served satisfactorily 
        in that grade (as determined by the Secretary of the military 
        department concerned) as a reserve commissioned officer in an 
        active status, or in a retired status on active duty, for not 
        less than three years, except that the Secretary of Defense may 
        authorize the Secretary of the military department concerned to 
        reduce such period to a period not less than two years.
            ``(ii) An officer at or above the grade of lieutenant 
        general or vice admiral may be retired in the highest grade in 
        which he served satisfactorily, upon approval by the Secretary 
        of the military department concerned and concurrence 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.
            ``(B) A person covered by subparagraph (A)(1) who has 
        completed at least six months of satisfactory service in grade 
        and is transferred from an active status or discharged as a 
        reserve commissioned officer solely due to the requirements of 
        a nondiscretionary provision of law requiring that transfer or 
        discharge due to the person's age or years of service may be 
        credited with satisfactory service in the grade in which 
        serving at the time of such transfer or discharge, 
        notwithstanding the failure of the person to complete three 
        years of service in that grade.
            ``(C) To the extent authorized by the Secretary of the 
        military department concerned, a person who, after having been 
        recommended for promotion in a report of a promotion board but 
        before being promoted to the recommended grade, served in a 
        position for which that grade is the minimum authorized grade 
        may be credited for purposes of subparagraph (A)(1) as having 
        served in that grade for the period for which the person served 
        in that position while in the next lower grade. The period 
        credited may not include any period before the date on which 
        the Senate provides advice and consent for the appointment of 
        that person in the recommended grade.
            ``(D) To the extent authorized by the Secretary of the 
        military department concerned, a person who, after having been 
        found qualified for Federal recognition in a higher grade by 
a board under section 307 of title 32, serves in a position for which 
that grade is the minimum authorized grade and is appointed as a 
reserve officer in that grade may be credited for the purposes of 
subparagraph (A)(1) as having served in that grade. The period of the 
service for which credit is afforded under the preceding sentence may 
only be the period for which the person served in the position after 
the Senate provides advice and consent for the appointment.
            ``(4) A person whose length of service in the highest grade 
        held does not meet the service in grade requirements specified 
        in this subsection shall be credited with satisfactory service 
        in the next lower grade in which that person served 
        satisfactorily (as determined by the Secretary of the military 
        department concerned) for not less than six months.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to the computation of retired or retainer pay of any 
individual who becomes entitled to that pay on or after the date of 
enactment of this Act.

SEC. 122. MORE FLEXIBLE COMPUTATION OF RETIRED PAY FOR OFFICERS AND 
              SENIOR ENLISTED MEMBERS.

    (a) Modification of Retired Pay Formulas.--
            (1) Chapter 71 of title 10, United States Code, is amended 
        by inserting after section 1401a the following new section:
``Sec. 1401b. Maximum multiplier in the computation of retired pay
    ``Notwithstanding any other provision of law that limits retired 
pay, computed under this chapter or under chapter 1223 of this title, 
to a maximum of 75 percent of the member's base determined under 
section 1406 or 1407 of this title, the maximum amount of retired pay 
as a percentage of such base will be limited as follows:
            ``(1) For members retired before October 1, 2003, use 
        limitations prescribed in other sections of law.
            ``(2) For members retired on or after October 1, 2003, use 
        the limitations prescribed in other sections of law except in 
        the case of--
                    ``(A) members retired in the grade O-7 and above 
                with more than 30 years of creditable service in the 
                computation of the multiplier percentage under section 
                1409 of this title, such percentage is not limited to 
                75 percent for any time served in excess of 30 years 
                otherwise creditable after October 1, 2003; and
                    ``(B) members retired in the grades E-8 and E-9 
                with more than 30 years of creditable service in the 
                computation of the multiplier percentage under section 
                1409 of this title, such percentage is not limited to 
                75 percent for any time served under conditions 
                authorized such additional credit during a period 
                established by the Secretary of Defense.''.
            (2) The table of sections at the beginning of such chapter 
        is amended by inserting after the item relating to section 
        1401a the following new item:

``1401b. Maximum multiplier in the computation of retired pay.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to the computation of retired or retainer pay of any 
individual who becomes entitled to that pay on or after the date of 
enactment of this Act.

SEC. 123. ELIMINATE RETIRED PAY LIMIT APPLICABLE TO GENERAL AND FLAG 
              OFFICERS.

    (a) Retired Pay Base for Members Who First Became Members Before 
September 8, 1980.--Section 1406 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j) In the case of a member at grade O-7 and above, the rates of 
basic pay used to compute the pay base prescribed in this section shall 
be the rates applicable to the grade or position without regard to any 
provision of law limiting such pay to the rate of pay for level III of 
the Executive Schedule.''.
    (b) Retired Pay Base for Members Who First Became Members After 
September 7, 1980.--Section 1407 of such title is amended by adding at 
the end the following new subsection:
    ``(g) In the case of a member at grade O-7 and above, the rates of 
basic pay used to compute the pay base prescribed in this section shall 
be the rates applicable to the grade or position without regard to any 
provision of law limiting such pay to the rate of pay for level III of 
the Executive Schedule.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to the computation of retired or retainer pay of any 
individual who becomes entitled to that pay on or after the date of 
enactment of this Act.

            Subtitle C--Transformation of Military Personnel

SEC. 131. MEASURING PERSONNEL STRENGTHS.

    (a) Strength Accounting Requirement.--Section 115 of title 10, 
United States Code, is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Congress shall authorize personnel strength levels for each 
fiscal year for each of the following:
            ``(1) The average strength for each of the armed forces 
        (other than the Coast Guard) for active-duty personnel who are 
        to be paid from funds appropriated for active-duty personnel.
            ``(2) The average strength for each of the armed forces 
        (other than the Coast Guard) for active-duty personnel and 
        full-time National Guard duty personnel who are to be paid from 
        funds appropriated for reserve personnel.
            ``(3) The average strength for the Selected Reserve of each 
        reserve component of the armed forces.'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``end strength'' 
                and inserting ``strength''; and
                    (B) in paragraph (2), by striking ``end strength'' 
                and inserting ``strength'';
            (3) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking ``end strength'' both 
                        places it appears and inserting ``strength''; 
                        and
                            (ii) by striking ``(a)(1)(A)'' and 
                        inserting ``(a)(1)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``end strength'' both 
                        places it appears and inserting ``strength''; 
                        and
                            (ii) by striking ``(a)(1)(B)'' and 
                        inserting ``(a)(2)''; and
                    (C) in paragraph (3)--
                            (i) by striking ``end strength'' both 
                        places it appears and inserting ``strength''; 
                        and
                            (ii) by striking ``(a)(2)'' and inserting 
                        ``(a)(3)'';
            (4) in subsection (d)--
                    (A) by striking ``end-strengths'' and inserting 
                ``strengths'';
                    (B) by striking ``subsection (a)(1)'' and inserting 
                ``paragraphs (1) and (2) of subsection (a)''; and
                    (C) in paragraph (9)(B), by striking ``(a)(1)(A)'' 
                and inserting ``(a)(1)'';
            (5) in subsection (e), by striking ``subsection (a)(1)'' 
        and inserting ``paragraphs (1) and (2) of subsection (a)'';
            (6) in subsection (f)--
                    (A) by striking ``end strength'' both places it 
                appears and inserting ``strength''; and
                    (B) by striking ``(a)(1)(A)'' and inserting 
                ``(a)(1)''; and
            (7) in subsection (g), by striking ``end strength'' both 
        places it appears and inserting ``strength''.
    (b) Conforming Amendments.--
            (1) Subparagraph (A) of section 168(f)(1) of such title is 
        amended--
                    (A) by striking ``end strength'' and inserting 
                ``strength''; and
                    (B) by striking ``section 115(a)(1)'' and inserting 
                ``paragraphs (1) and (2) of section 115(a)''.
            (2) Subsection (f) of section 691 of such title is amended 
        by striking ``section 115(a)(1)'' and inserting ``paragraphs 
        (1) and (2) of section 115(a)''.
            (3) Subsection (b) of section 3201 of such title is amended 
        by striking ``section 115(a)(1)'' and inserting ``paragraphs 
        (1) and (2) of section 115(a)''.
            (4) Paragraph (4) of section 12310(c) of such title is 
        amended--
                    (A) by striking ``end strength'' and inserting 
                ``strength''; and
                    (B) by striking ``section 115(a)(1)(B) and 
                115(a)(2)'' and inserting ``section 115(a)(2) and 
                115(a)(3)''.
            (5) Subsection (d) of section 16132 of such title is 
        amended--
                    (A) by striking ``end strength'' and inserting 
                ``strength''; and
                    (B) by striking ``section 115(a)(1)(B)'' and 
                inserting ``section 115(a)(2)''.
            (6) Section 112 of title 32, United States Code, is 
        amended--
                    (A) in subsection (e)--
                            (i) in the heading, by striking ``End-
                        Strength'' and inserting ``Strength''; and
                            (ii) by striking ``end strength'' and 
                        inserting ``strength'';
                    (B) in subsection (f)--
                            (i) in the heading, by striking ``End-
                        Strength'' and inserting ``Strength''; and
                            (ii) in paragraph (2), by striking ``end 
                        strength'' and inserting ``strength''; and
                    (C) in subsection (g)(1), by striking ``end 
                strengths'' and inserting ``strengths''.

SEC. 132. ACCESS TO SECONDARY SCHOOLS BY MILITARY RECRUITERS.

    Paragraph (5) of section 503(c) of title 10, United States Code, is 
amended to read as follows:
            ``(5) The requirements of this subsection do not apply to a 
        private secondary school that maintains a religious objection 
        to service in the armed forces and which objection is 
        verifiable through the corporate or other organizational 
        documents or materials of that school.''.

SEC. 133. WAIVER OF MILITARY EDUCATION ELIGIBILITY AND POST-EDUCATION 
              PLACEMENT REQUIREMENTS.

    Section 663 of title 10, United States Code, is amended--
            (1) in subparagraph (C) of subsection (a)(2), by striking 
        ``scientific and technical'' and inserting ``career field 
        specialty'';
            (2) by striking subsection (d); and
            (3) by redesignating subsection (e) as subsection (d).

SEC. 134. LENGTH OF JOINT DUTY ASSIGNMENTS.

    Section 664 of title 10, United States Code, is amended to read as 
follows:
``Sec. 664. Length of joint duty assignments
    ``(a) Length of Joint Duty Assignments.--In the case of officers 
serving in a grade not less than Major, or, in the case of the Navy, 
Lieutenant Commander, the length of a joint duty assignment will mirror 
the standard tour length the Secretary of Defense establishes for each 
installation or location at which joint duty assignments as specified 
in section 668 of this title are authorized. Joint duty credit is 
awarded as provided by subsection (c). Duty at a qualified joint task 
force headquarters requires one year of total service credited in the 
manner specified in subsection (c).
    ``(b) Exclusions From Tour Length.--The Secretary of a military 
department may request that the joint activity to which an officer is 
assigned curtail the officer's joint assignment. The officer will 
receive full credit for service when an assignment was curtailed from 
the standards prescribed in subsection (a), provided the officer has 
served at least 24 months in a joint position with a tour length of 
greater than 24 months, or the full term of a Secretary of Defense-
established tour length, and the joint activity agreed to the 
curtailment.
    ``(c) Full Credit for Joint Duty.--An officer shall be considered 
to have completed a full tour of joint duty in a joint duty assignment 
for the purposes of awarding full credit upon the completion of any of 
the following:
            ``(1) A joint duty assignment that meets the standards 
        prescribed in subsection (a) or (b).
            ``(2) Accumulation of partial credit totaling one year of 
        service earned by service in one or more joint task force 
        headquarters as specified in subsection (a).
            ``(3) A joint duty assignment with respect to which the 
        Secretary of Defense has granted a waiver under subsection (d).
            ``(4) A second joint duty assignment that is less than 24 
        months, without regard to the nature of credit awarded to the 
        officer for his or her first assignment in a Joint Duty 
        Assignment List position.
    ``(d) Waiver Authority.--The Secretary of Defense may waive this 
section when it is considered essential for military personnel 
management. Such a waiver may be granted only on a case-by-case basis 
in the case of any officer.''.

SEC. 135. ORDERING RESERVE COMPONENT MEMBERS TO ACTIVE DUTY TO RESPOND 
              TO DISASTERS, ACCIDENTS, OR CATASTROPHES.

    Section 12304 of title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (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) a serious natural or manmade disaster, accident, or 
        catastrophe.''; and
            (2) in subsection (c)(1), by striking ``or'' and all that 
        follows and inserting a period.

SEC. 136. IMPROVED INVOLUNTARY ACCESS TO RESERVE COMPONENT MEMBERS FOR 
              ENHANCED TRAINING.

    (a) Ready Reserve.--Section 10147(a) of title 10, United States 
Code, is amended--
            (1) in paragraph (1), by inserting ``(A)'' after ``(1)'';
            (2) by redesignating paragraph (2) as subparagraph (B);
            (3) by striking the period at the end of subparagraph (B) 
        (as redesignated) and inserting ``; and''; and
            (4) by adding at the end the following new paragraph (2):
            ``(2) serve an additional obligation of up to 90 days of 
        active duty for training when directed by the affected military 
        department, with the consent of the governor in the case of the 
        National Guard, in instances where additional training to meet 
        deployment standards is required as prescribed by the Secretary 
        of the military department concerned.''.
    (b) Reserve Components Generally.--Section 12301 of such title is 
amended--
            (1) by redesignating subsections (e) through (h) as 
        subsections (f) through (i), respectively;
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) At any time, an authority designated by the Secretary 
concerned may order a member of a reserve component under his 
jurisdiction to active duty for a period of not more than 90 days, with 
the consent of the governor in the case of the National Guard, in 
instances where additional training to meet deployment standards is 
required as prescribed by the Secretary of the military department 
concerned. Service of members pursuant to this subsection will not 
affect subsequent mobilization under sections 12301, 12302, 12303, or 
12304 of this title.''; and
            (3) in subsection (g) (as redesignated), by striking 
        ``subsections (b) and (d)'' and inserting ``subsections (b), 
        (d), and (e)''.

SEC. 137. MEDICAL AND DENTAL SCREENING FOR MEMBERS OF SELECTED RESERVE 
              UNITS ALERTED FOR MOBILIZATION.

    Section 1074a of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) The Department of Defense may provide medical and dental 
screening and care to members of the Selected Reserve who are assigned 
to a unit that has been alerted that the unit will be mobilized for 
active duty service in support of an operational mission or contingency 
operation, during a national emergency, or in time of war.
    ``(2) The medical and dental screening and care that may be 
provided under this subsection is screening and care necessary to 
ensure that a member meets the medical and dental standards for 
deployment.
    ``(3) The services provided under this subsection shall be provided 
to a member at no cost to the member and at any time after the unit to 
which the member is assigned is alerted or otherwise notified the unit 
will be mobilized.''.

                  TITLE II--ACQUISITION TRANSFORMATION

           Subtitle A--Transformation of Acquisition Process

SEC. 201. REPEAL REQUIREMENTS FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Repeals.--Sections 2430, 2431, 2432, 2433, 2435, and 2440 of 
title 10, United States Code, are repealed.
    (b) Independent Cost Estimates.--Section 2434 of such title 10 is 
amended--
            (1) in the title, by striking ``; operational manpower 
        requirements'';
            (2) in subsection (a), by striking ``and a manpower 
        estimate for the program have'' and inserting ``has''; and
            (3) in subsection (b)--
                    (A) by striking ``s'' in ``estimates'';
                    (B) by striking ``--'' after ``require'';
                    (C) by striking ``(1)'';
                    (D) by striking ``(A)'' and inserting ``(1)'';
                    (E) by striking ``(i)'' and inserting ``(A)'';
                    (F) by striking ``(ii)'' and inserting ``(B)'';
                    (G) by striking ``(B)'' and inserting ``(2)'';
                    (H) by striking ``; and'' after ``control'' and 
                inserting a period; and
                    (I) by striking paragraph (2).

SEC. 202. APPLICABILITY OF CLINGER-COHEN ACT TO EQUIPMENT INTEGRAL TO A 
              WEAPON OR WEAPON SYSTEM AND DEPARTMENT OF DEFENSE 
              INFORMATION TECHNOLOGY MANAGEMENT.

    (a) Exception for Equipment Integral to a Weapon or Weapon 
System.--Subsection (c) of section 11103 of title 40, United States 
Code, is amended by adding at the end the following new paragraph:
            ``(4) Equipment integral to a weapon or weapon system.--
        Notwithstanding paragraphs (1), (2), and (3), sections 11302, 
        11303, 11312, 11313, and 11316 of this title do not apply to 
        equipment determined by the Secretary of Defense to be an 
        integral part of a weapon or weapon system.''.
    (b) Elimination of Duplicate National Security Systems.--Subsection 
(a) of section 2223 of title 10, United States Code, is amended--
            (1) by inserting ``and'' at the end of paragraph (3);
            (2) by amending paragraph (4) to read as follows:
            ``(4) provide for the elimination of duplicate information 
        technology systems, and recommend to the Secretary of Defense 
        the elimination of duplicate national security systems, within 
        and between the military departments and Defense Agencies.''; 
        and
            (3) by striking paragraph (5).
    (c) Repeal of Congressional Notification and Reporting 
Requirements.--
            (1) Section 811 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (Public Law 106-398; 114 
        Stat. 1654) is repealed.
            (2) Section 351 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 
        Stat. 2458) is repealed.

SEC. 203. INFLATION ADJUSTMENT FOR ACQUISITION-RELATED DOLLAR 
              THRESHOLDS.

    (a) Authority.--Subject to the requirements of subsection (b)--
            (1) the Federal Acquisition Regulatory Council (as defined 
        in section 25 of the Office of Federal Procurement Policy Act, 
        41 U.S.C. 421) may adjust the dollar thresholds set out in 
        statutes that apply to the acquisition of goods or services by 
        executive agencies (as defined in section 4(1) of the Office of 
        Federal Procurement Policy Act, 41 U.S.C. 403(1)); and
            (2) the head of an executive agency may adjust the dollar 
        thresholds set out in statutes that apply exclusively to the 
        acquisition of goods or services by that agency.
    (b) Threshold Adjustments.--Adjustments to dollar thresholds shall 
be--
            (1) made only after consultation with the Director of the 
        Office of Management and Budget and calculated using escalation 
        rates to be determined by the Director;
            (2) made from the date the threshold was enacted to the 
        date of adjustment;
            (3) rounded to facilitate implementation; and
            (4) published in the Federal Register.
    (c) Exclusion.--The authority of this section does not apply to--
            (1) the Act of March 3, 1931 (popularly known as the Davis-
        Bacon Act), 40 U.S.C. 276(a); or
            (2) the Service Contract Act of 1965 (41 U.S.C. 351 et 
        seq.).

SEC. 204. SECURITY INTEREST EXCEPTION TO DOMESTIC SOURCE OR CONTENT 
              REQUIREMENTS.

    (a) In General.--Subchapter V of chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2539c. Waiver of domestic source or content requirements
    ``(a) Authority.--The Secretary of Defense may waive the 
application of any domestic source requirement or domestic content 
requirement, with the exception of the Small Business Act (15 U.S.C. 
631 et seq.), and articles or items listed in subsection (b)(1)(B)-(E) 
of section 2533a of this title, if he determines that security 
interests are served by a waiver of such a requirement. This waiver 
authority includes, but is not limited to, circumstances in which--
            ``(1) it is necessary to promote standardization, 
        interoperability of conventional defense equipment with allied 
        and friendly governments;
            ``(2) it is necessary to enable the Department of Defense 
        to obtain the best equipment available in the most expeditious 
        manner and thereby enhance the readiness and capabilities of 
        United States Armed Forces;
            ``(3) it is necessary to encourage competition in 
        Department of Defense procurements;
            ``(4) significant cost savings for purchases of Department 
        of Defense supplies can be achieved; and
            ``(5) it is necessary to support wartime, anti-terrorist, 
        or contingency operations.
    ``(b) Covered Requirements.--For purposes of this section:
            ``(1) A `domestic source requirement' is any requirement 
        under law that the Department of Defense must procure an item 
        that is grown, reprocessed, reused, produced, or manufactured 
        in the United States or by a manufacturer that is a part of the 
        national technology and industrial base (as defined in section 
        2500(1) of this title).
            ``(2) A `domestic content requirement' is any requirement 
        under law that the Department of Defense must procure an item 
        produced or manufactured partly or wholly from components and 
        materials grown, reprocessed, reused, produced, or manufactured 
        in the United States.
    ``(c) Relationship to Other Waiver Authority.--The authority under 
subsection (a) to waive a domestic source requirement or domestic 
content requirement is in addition to any other authority to waive such 
requirement.
    ``(d) Construction With Respect to Later Enacted Laws.--This 
section may not be construed as being inapplicable to a domestic source 
requirement or domestic content requirement contained in a law enacted 
after the enactment of this section solely on the basis of the later 
enactment.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2539b the following new item:

``2539c. Waiver of domestic source or content requirements.''.

SEC. 205. CLARIFICATION OF BUY AMERICAN REQUIREMENTS.

    Section 2533a of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``subsections (c) through (h)'' and 
                inserting ``subsections (b) through (i)''; and
                    (B) by striking ``if the item is not grown, 
                reprocessed, reused, or produced in the United 
                States'';
            (2) in subsection (b), by amending paragraphs (1) through 
        (3) to read as follows:
            ``(1) An article or item of--
                    ``(A) meals ready-to-eat listed in Federal Supply 
                Class 8970 unless the article or item is produced or 
                manufactured in the United States;
                    ``(B) textile fabrics listed in Federal Supply 
                Class 8305; yarn or thread listed in Federal Supply 
                Class 8310; tents, tarpaulins, or covers listed in 
                Federal Supply Class 8340; or flags or pennants listed 
                in Federal Supply Class 8345 unless the article or item 
                is produced or manufactured in the United States and 
                the textile components or materials are produced or 
                manufactured wholly in the United States;
                    ``(C) clothing or apparel listed in Federal Supply 
                Class 8405, 8410, 8415, 8420, 8425, 8450, 8470, or 
                8475; footwear listed in Federal Supply Class 8430 or 
                8435; hosiery listed in Federal Supply Class 8440 or 
                8445; or badges or insignia listed in Federal Supply 
                Class 8455 unless the article or item is produced or 
                manufactured in the United States and the textile 
                components or materials are produced or manufactured 
                wholly in the United States;
                    ``(D) individual equipment listed in Federal Supply 
                Class 8465 manufactured or produced from or containing 
                textile components or materials unless the article or 
                item is produced or manufactured in the United States 
                and the textile components or materials are produced or 
                manufactured wholly in the United States;
                    ``(E) textile household furnishings listed in 
                Federal Supply Class 7210 and textile draperies, 
                awnings, or shades listed in Federal Supply Class 7230 
                unless the article or item is produced or manufactured 
                in the United States and the textile components or 
                materials are produced or manufactured wholly in the 
                United States; or
                    ``(F) parachutes listed in Federal Supply Group 
                1670, unless the article or item is produced or 
                manufactured wholly in the United States and the 
                textile components or materials are produced or 
                manufactured wholly in the United States.
            ``(2) Equipment of the following Federal supply 
        classifications that contain a specialty metal unless the 
        specialty metal used to produce or manufacture the article or 
        item, or an equivalent amount that is acquired by the 
        contractor or a subcontractor, was smelted in the United 
        States:
                    ``(A) Weapons listed in Federal Supply Group 10.
                    ``(B) Nuclear ordnance listed in Federal Supply 
                Group 11.
                    ``(C) Fire control equipment listed in Federal 
                Supply Group 12.
                    ``(D) Ammunition and explosives listed in Federal 
                Supply Group 13.
                    ``(E) Guided missiles listed in Federal Supply 
                Group 14.
                    ``(F) Aircraft and related components, accessories, 
                and equipment listed in Federal Supply Groups 15, 16, 
                and 17.
                    ``(G) Space vehicles listed in Federal Supply Group 
                18.
                    ``(H) Ships, small craft, pontoons, and floating 
                docks listed in Federal Supply Group 19.
                    ``(I) Ship and marine equipment listed in Federal 
                Supply Group 20.
                    ``(J) Passenger motor vehicles listed in Federal 
                Supply Class 2310.
                    ``(K) Tracked combat vehicles listed in Federal 
                Supply Class 2350.
                    ``(L) Engines, turbines, and components listed in 
                Federal Supply Group 28.
            ``For the purposes of this paragraph, `specialty metal' 
        means:
                    ``(A) steel--
                            ``(i) where the maximum alloy content 
                        exceeds one or more of the following limits: 
                        manganese, 1.65 percent; silicon, 0.60 percent; 
                        or copper, 0.60 percent; or
                            ``(ii) that contains more than 0.25 percent 
                        of any of the following elements: aluminum, 
                        chromium, cobalt, columbium, molybdenum, 
                        nickel, titanium, tungsten, or vanadium;
                    ``(B) metal alloys consisting of nickel, iron-
                nickel, and cobalt base alloys containing a total of 
                other alloying metals (except iron) in excess of 10 
                percent;
                    ``(C) titanium and titanium alloys; or
                    ``(D) zirconium and zirconium base alloys.
            ``(3) Hand tools listed in Federal Supply Group 51 and 
        measuring tools listed in Federal Supply Group 52, unless the 
        article or item is produced or manufactured in the United 
        States.'';
            (3) in subsection (c)--
                    (A) by striking ``Subsection (a)'' and inserting 
                ``This section'';
                    (B) by inserting '', or component thereof,'' after 
                ``such article or item'';
                    (C) by striking ``(1) or specialty metals 
                (including stainless steel flatware)''; and
                    (D) by inserting before the period at the end the 
                following: ``or, for items listed in subsections 
                (b)(1)(A), (b)(2), and (b)(3), at a reasonable cost'';
            (4) in subsection (d)--
                    (A) in the catchline, by striking ``Outside the 
                United States'' and inserting ``in Exigent 
                Circumstances'';
                    (B) by striking ``Subsection (a) does not apply'' 
                and inserting ``This section does not apply'';
                    (C) by amending paragraph (1) to read as follows:
            ``(1) Procurements of items listed in subsections 
        (b)(1)(A), (b)(2), and (b)(3) in support of contingency 
        operations as defined in section 101(a)(13) of this title, and 
        procurements outside the United States of items listed in 
        subsections (b)(1)(B) through (b)(1)(F) in support of combat 
        operations.'';
                    (D) by amending paragraph (3) to read as follows:
            ``(3) Procurements of items listed in subsections 
        (b)(1)(A), (b)(2), and (b)(3) of unusual and compelling urgency 
        under the authority of section 2304(c)(2) of this title, and 
        emergency procurements by an establishment located outside the 
        United States of items listed in subsections (b)(1)(B) through 
        (b)(1)(F) for the personnel attached to such establishment.'';
            (5) by amending subsections (e) and (f) to read as follows:
    ``(e) Exception for Specialty Metals.--This section does not apply 
to procurements of end items or components of equipment listed in 
subsection (b)(2) if the specialty metal used to produce or manufacture 
the item, or an equivalent amount that is acquired by the contractor or 
a subcontractor, was smelted in a foreign country that has a memorandum 
of understanding providing for reciprocal procurement of defense items 
that is entered into with the Department of Defense in accordance with 
section 2531 of this title.
    ``(f) Exception for Warfare Protective Clothing.--This section does 
not apply to procurements of nuclear, biological, chemical, or 
radiological warfare protective clothing or personal armor listed in 
Federal Supply Group 84 produced or manufactured in any foreign country 
that has a memorandum of understanding providing for reciprocal 
procurement of defense items that is entered into with the United 
States in accordance with section 2531 of this title, provided that the 
textile and apparel components or materials are substantially all from 
textile and apparel components and materials produced or manufactured 
wholly in the United States or in any such foreign country.'';
            (6) in subsection (g), by striking ``Subsection (a) does 
        not apply'' and inserting ``This section does not apply'';
            (7) in subsection (h)--
                    (A) by striking ``Subsection (a) does not apply'' 
                and inserting ``This section does not apply'';
                    (B) by striking ``2304(g) of this title'' and 
                inserting ``2302(7) of this title''; and
                    (C) by adding at the end the following new 
                sentence: ``This section does not preclude the purchase 
                of covered items with textile components and materials 
                that are not produced or manufactured in the United 
                States if the estimated value of all such textile 
                components and materials is not greater than--
            ``(1) the simplified acquisition threshold; or
            ``(2) 10 percent of the total price of the covered items 
        being purchased, whichever is less.''; and
            (8) in subsection (i)--
                    (A) by striking ``This section'' and inserting 
                ``(1) Except as provided in paragraph (2), this 
                section''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) This section does not apply to commercial items, or 
        components thereof, that are listed in sections (b)(1)(A), 
        (b)(2), and (b)(3), except if the end item is specialty 
        metal.''.

SEC. 206. AMENDMENT OF CATALOGING AND STANDARDIZATION PROVISIONS.

    Chapter 145 of title 10, United States Code, is amended--
            (1) in section 2451--
                    (A) by striking subsection (b);
                    (B) by redesignating subsection (c) as subsection 
                (b); and
                    (C) by amending subsection (b), as redesignated, to 
                read as follows:
    ``(b) In standardizing supplies, the Secretary shall, to the 
highest degree practicable, standardize items used throughout the 
Department of Defense by adopting and using single voluntary standards, 
international or domestic, or when necessary, developing and using 
single government specifications, eliminating overlapping and duplicate 
specifications, and reducing the number of sizes and kinds of items 
that are generally similar.'';
            (2) in section 2452--
                    (A) by striking paragraphs (2), (3), and (4);
                    (B) by inserting a new paragraph (2) to read as 
                follows:
            ``(2) participate with industry in the development of 
        voluntary standards and use those standards in lieu of 
        government specifications and standards to the maximum 
        practical extent;'';
                    (C) by redesignating paragraph (5) as paragraph 
                (3);
                    (D) by redesignating paragraph (6) as paragraph 
                (4), and by striking the words ``bureaus, and 
                services'' and inserting ``and defense agencies'';
                    (E) by striking paragraph (7); and
                    (F) by redesignating paragraph (8) as paragraph 
                (5);
            (3) by repealing sections 2453 and 2454;
            (4) in section 2457--
                    (A) by striking paragraph (d); and
                    (B) by redesignating paragraphs (e) and (f) as 
                paragraphs (d) and (e) respectively; and
            (5) by repealing section 2458.

           Subtitle B--Transformation of Contracting Process

SEC. 211. CONTRACTING FOR SECURITY GUARDS AND FIREFIGHTING SERVICES.

    Section 2465 of title 10, United States Code, is repealed.

SEC. 212. CONTRACTS WITH SMALL BUSINESSES.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2381 the following new section:
``Sec. 2382. Contracts with small businesses
    ``(a) Secretary of Defense Authority to Establish Goals.--The 
Secretary of Defense shall annually establish Department-wide goals for 
procurement contracts awarded to the small business concerns mentioned 
in section 15(g)(1) of the Small Business Act (15 U.S.C. 644(g)(1)). 
Each goal shall be higher than the statutory goals for these categories 
stated in section 15(g)(1) of the Small Business Act (15 U.S.C. 
644(g)(1)). Achievement of the combined prime contracting and 
subcontracting goal will be calculated against the total prime contract 
awards to United States business concerns in each of the aforementioned 
categories. Notwithstanding the Department-wide goal, each military 
department and defense agency shall have annual goals that present, for 
that department or agency, the maximum practicable opportunity for each 
of the aforementioned small business categories in the performance of 
contracts and subcontracts.
    ``(b) Exemption From Requirement to Negotiate Goals.--The 
Department of Defense is exempt from negotiation with the Small 
Business Administration regarding small business goals.
    ``(c) Provisions Not Affected.--Nothing in this section shall be 
construed as modifying or superseding, or as intended to impair or 
restrict, authorities or responsibilities--
            ``(1) related to contract bundling, including those 
        established by sections 411 through 414 of the Small Business 
        Reauthorization Act of 1997 (Public Law 105-135); or
            ``(2) under any other provision set forth in the Small 
        Business Act or this title, other than those that address set-
        asides, preferences, and size standards to the extent addressed 
        in this section.''.

SEC. 213. PERFORMANCE BASED LOGISTICS: SPECIAL PROCUREMENT AND FUNDING 
              AUTHORITY.

    (a) Authority.--Notwithstanding any other provision of law, the 
Department of Defense may enter into a Performance Based Logistics 
contract for a term not to exceed 10 years or, in the alternative, a 5-
year contract with a 5-year option, if the Secretary of Defense 
determines that entering into such a contract is in the best interest 
of Government. The Secretary shall fund each Performance Based 
Logistics contract on an annual basis. Notwithstanding any other 
provision of law, each Performance Based Logistics contract may contain 
a special termination cost clause of the type contained in Part 249 of 
the Defense Federal Acquisition Regulation Supplement.
    (b) Performance Based Logistics Contracting.--The Secretary shall 
implement policy and regulations to foster savings and efficiencies in 
long-term Performance Based Logistics support for weapon systems. Such 
logistics support must efficiently use a combination of public and 
private industry capabilities.
    (c) Specific Authority.--Notwithstanding any other provision of 
law, the Secretary may fund a Performance Based Logistics effort by 
utilizing procurement funds in lieu of Operations & Maintenance or 
Research Development, Testing & Evaluation funds without regard to the 
restrictions of section 1301(a) of title 31, United States Code.
    (d) Definition.--For the purposes of this section, the term 
``Performance Based Logistics contract'' means a contract in which the 
contractor shall meet reliability, availability, and/or responsiveness 
requirements for logistical support which results in improved product 
effectiveness while reducing total ownership costs.

SEC. 214. DEPOT-RELATED LEGISLATIVE REFORM.

    (a) Establishing Minimum Level of Performance of Depot-Level 
Maintenance of Materiel by Federal Government Personnel or at a 
Government-Owned Facility.--
            (1) Subsection (a) of section 2466 of title 10, United 
        States Code, is amended to read as follows:
    ``(a) Allocation of Workload Percentage.--At least 50 percent of 
the funds made available in a fiscal year to a military department or a 
Defense Agency for depot-level maintenance and repair workload shall be 
used for the performance of such workload for the military department 
or the Defense Agency by Federal Government personnel or at a 
Government-owned facility.''.
            (2) Paragraph (1) of section 2474(f) of such title is 
        amended by striking ``percentage limitation'' and inserting 
        ``allocation of workload percentage''.
    (b) Exclude Workloads for Special Access Programs From Limitations 
on the Performance of Depot-Level Maintenance of Materiel.--Subsection 
(d) of section 2466 of such title is amended to read as follows:
    ``(d) Exceptions.--Subsection (a) shall not apply with respect to--
            ``(1) the Sacramento Army Depot, Sacramento, California; 
        and
            ``(2) workloads for special access programs.''.
    (c) Extension of Partnership Exemption for Centers of Industrial 
and Technical Excellence.--Section 2474(f)(1) of such title is amended 
by striking ``at'' and inserting ``for''.

           TITLE III--INSTALLATION MANAGEMENT TRANSFORMATION

SEC. 301. READINESS AND RANGE PRESERVATION INITIATIVE.

    (a) In General.--
            (1) Part III of subtitle A of title 10, United States Code, 
        is amended by inserting after chapter 101 the following new 
        chapter:

            ``CHAPTER 101A--READINESS AND RANGE PRESERVATION

``Sec.
``2015. Purpose of this chapter.
``2016. Definitions.
``2017. Military readiness and the conservation of protected species.
``2018. Conformity with State Implementation Plans for air quality.
``2019. Range management and restoration.
``Sec. 2015. Purpose of this chapter
    ``The purpose of this chapter is to--
            ``(1) protect the lives and well-being of citizens of the 
        United States and preserve their freedoms, economic prosperity, 
        and environmental heritage by ensuring military readiness;
            ``(2) ensure military readiness by addressing problems 
        created by encroachment on military readiness activities and 
        lands, marine areas, and airspace reserved, withdrawn, or 
        designated for a military use;
            ``(3) reaffirm the principle that such lands, marine areas, 
        and airspace exist to ensure military preparedness;
            ``(4) shield military readiness activities and lands, 
        marine areas, and airspace reserved, withdrawn, or designated 
        for a military use, including land, sea, and air training and 
        operating areas, from encroachment, while ensuring that the 
        Department of Defense fulfills its environmental stewardship 
        responsibilities;
            ``(5) manage such lands, marine areas, and airspace for 
        other purposes to the extent the non-military purpose does not 
        reduce capability to support military readiness activities;
            ``(6) re-establish the appropriate balance between military 
        readiness and environmental stewardship; and
            ``(7) establish a framework to ensure long-term 
        sustainability of military ranges.
``Sec. 2016. Definitions
    ``For purposes of this chapter:
            ``(1) The term `military readiness activities' includes all 
        training and operations that relate to combat, and the adequate 
        and realistic testing of military equipment, vehicles, weapons, 
        and sensors for proper operation and suitability for combat 
        use. The term does not include the routine operation of 
        installation operating support functions, such as 
        administrative offices, military exchanges, commissaries, water 
        treatment facilities, storage, schools, housing, motor pools, 
        laundries, morale, welfare and recreation activities, shops, 
        and mess halls, nor the operation of industrial activities, or 
        the construction or demolition of such facilities.
            ``(2) The terms `combat' or `combat use' include all forms 
        of armed conflict and operational employment as well as those 
        support functions necessary for armed conflict and operational 
        employment, including transportation of personnel, weapons, 
        supplies, ammunition and other military material to the 
        vicinity of actual or potential armed conflict; intelligence 
        gathering in support of actual or potential armed conflict; 
        command of and communications between military units; and 
        similar activities necessary for the successful prosecution of 
        armed conflict, whether or not conducted at the scene of actual 
        conflict.
            ``(3) The term `the Department' means the Department of 
        Defense as defined in section 101(a)(6) of this title and the 
        Coast Guard when it is not operating as a service in the 
        Department of the Navy.
``Sec. 2017. Military readiness and the conservation of protected 
              species
    ``(a) The completion of an Integrated Natural Resources Management 
Plan, pursuant to the Sikes Act Improvement Act (16 U.S.C. 670a), for 
lands or other geographical areas owned or controlled by the 
Department, or designated for its use, that addresses endangered or 
threatened species and their habitat, provides the `special management 
considerations or protection' required under the Endangered Species Act 
(16 U.S.C. 1532(5)(A)) and precludes designation of critical habitat 
for any such land or geographical areas under section 4 of the 
Endangered Species Act (16 U.S.C. 1533).
    ``(b) This section does not remove the requirement for agency 
consultation under section 7(a)(2) of the Endangered Species Act (16 
U.S.C. 1536(a)(2)).
``Sec. 2018. Conformity with State Implementation Plans for air quality
    ``(a) Conformity with Clean Air Act.--In all cases in which the 
requirements of section 176(c) of the Clean Air Act would have applied 
to proposed military readiness activities, the Department shall not be 
prohibited from engaging in such military readiness activities, but 
shall:
            ``(1) estimate for all criteria pollutants for which the 
        area is designated `nonattainment' or `maintenance' the 
        quantity of emissions that are caused by the military readiness 
        activities;
            ``(2) notify the state air quality planning agency for the 
        affected area of such emission estimates prior to engaging in 
        proposed military readiness activities; and
            ``(3) ensure that military readiness activities conform 
        with the requirements of section 176(c) within three years of 
        the date new activities begin.
    ``(b) EPA Approval.--Notwithstanding any other provisions of law, 
an implementation plan or plan revision required under the Clean Air 
Act shall be approved by the Administrator of the Environmental 
Protection Agency if--
            ``(1) such plan or revision meets all the requirements 
        applicable to it under the Clean Air Act other than a 
        requirement that such plan or revision demonstrate attainment 
        and maintenance of the relevant national ambient air quality 
        standards by the attainment date specified under the applicable 
        provision of the Act, or in a regulation promulgated under such 
        provision; and
            ``(2) the submitting State established to the satisfaction 
        of the Administrator that the implementation plan of such State 
        would be adequate to attain and maintain the relevant national 
        ambient air quality standards by the attainment date specified 
        under the applicable provision of the Act, or in a regulation 
        promulgated under such provision, but for emissions emanating 
        from military readiness activities not otherwise meeting 
        section 176(c) of the Act pursuant to paragraph (a) of this 
        section.
    ``(c) Effect on State Compliance with Ozone Standards.--
Notwithstanding any other provisions of law, any state that establishes 
to the satisfaction of the Administrator that, with respect to an ozone 
nonattainment area in such State, such State would have attained the 
national ambient air quality standard for ozone by the applicable 
attainment date, but for emissions emanating from military readiness 
activities not otherwise meeting section 176(c) of the Act pursuant to 
paragraph (a) of this section, shall not be subject to the provisions 
of section 181(b)(2) and (4) or section 185 of the Act.
    ``(d) Effect on State Compliance with Carbon Monoxide Standards.--
Notwithstanding any other provision of law, any State that establishes 
to the satisfaction of the Administrator, with respect to a carbon 
monoxide nonattainment area in such State, that such State has attained 
the national ambient air quality standard for carbon monoxide by the 
applicable attainment date, but for emissions emanating from military 
readiness activities not otherwise meeting section 176(c) of the Act 
pursuant to paragraph (a) of this section, shall not be subject to the 
provisions of section 186(b)(2) of the Act.
    ``(e) Effect on State Compliance with PM-10 Standards.--
Notwithstanding any other provisions of law, any State that establishes 
to the satisfaction of the Administrator that, with respect to a PM-10 
nonattainment area in such State, such State would have attained the 
national ambient air quality standard for PM-10 by the applicable 
attainment date, but for emission emanating from military readiness 
activities not otherwise meeting section 176(c) of the Act pursuant to 
paragraph (a) of this section, shall not be subject to the provisions 
of section 188(b)(2) of the Act.
``Sec. 2019. Range management and restoration
    ``(a) Definition of Solid Waste.--
            ``(1)(A) The term `solid waste,' as used in the Solid Waste 
        Disposal Act, as amended (42 U.S.C. 6901 et seq.), includes 
        explosives, unexploded ordnance, munitions, munition fragments, 
        or constituents thereof that--
                    ``(i) are or have been deposited, incident to their 
                normal and expected use, on an operational range, and--
                            ``(I) are removed from the operational 
                        range for reclamation, treatment, disposal, 
                        treatment prior to disposal, or storage prior 
                        to or in lieu of reclamation, treatment, 
                        disposal, or treatment prior to disposal;
                            ``(II) are recovered, collected, and then 
                        disposed of by burial or landfilling; or
                            ``(III) migrate off an operational range 
                        and are not addressed under the Comprehensive 
                        Environmental Response, Compensation, and 
                        Liability Act of 1980, as amended (42 U.S.C. 
                        9601 et seq.); or
                    ``(ii) are deposited, incident to their normal and 
                expected use, off an operational range, and are not 
                promptly rendered safe or retrieved.
            ``(B) The explosives, unexploded ordnance, munitions, 
        munitions fragments, or constituents thereof defined as solid 
waste in subparagraph (a)(1)(A) shall be subject to the provisions of 
the Solid Waste Disposal Act, as amended, including but not limited to 
sections 7002 and 7003, where applicable.
            ``(2) Except as set out in subparagraph (1), the term 
        `solid waste,' as used in the Solid Waste Disposal Act, as 
        amended, does not include explosives, unexploded ordnance, 
        munitions, munitions fragments, or constituents thereof that:
                    ``(A) are used in training military personnel or 
                explosives and munitions emergency response specialists 
                (including training in proper destruction of unused 
                propellant or other munitions) on an operational range;
                    ``(B) are used in research, development, testing, 
                and evaluation of military munitions, weapons, or 
                weapon systems on an operational range;
                    ``(C) are or have been deposited, incident to their 
                normal and expected use, and remain on an operational 
                range, except as provided in subparagraph (a)(1)(A);
                    ``(D) are deposited, incident to their normal and 
                expected use, off an operational range, and are 
                promptly rendered safe or retrieved; or
                    ``(E) are recovered, collected, and destroyed on-
                range during range clearance activities at operational 
                ranges, but not including the on-range burial of 
                unexploded ordnance and contaminants when the burial is 
                not a result of product use.
            ``(3) Nothing in paragraphs (1) and (2) hereof affects the 
        legal requirements applicable to explosives, unexploded 
        ordnance, munitions, munitions fragments, or constituents 
        thereof that have been deposited on an operational range once 
        the range ceases to be an operational range.
    ``(b) Definition of Release.--
            (1) The term `release,' as used in the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 
        1980, as amended (42 U.S.C. 9601 et seq.), includes the deposit 
        off an operational range, or the migration off an operational 
        range, of any explosives, unexploded ordnance, munitions, 
        munitions fragments, or constituents thereof.
            ``(2) The term `release,' as used in the Comprehensive 
        Environmental Response, Compensation, and Liability Act of 
        1980, as amended (42 U.S.C. 9601 et seq.), does not include the 
        deposit or presence on an operational range of any explosives, 
        unexploded ordnance, munitions, munitions fragments, or 
        constituents thereof that are or have been deposited thereon 
        incident to their normal and expected use and remain thereon.
            ``(3) Notwithstanding the provisions of paragraph (2), the 
        authority of the President under section 106(a) of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980, as amended (42 U.S.C. 9606(a)), to take 
        action because there may be an imminent and substantial 
        endangerment to the public health or welfare or the environment 
        because of an actual or threatened release of a hazardous 
        substance includes the authority to take action because of the 
        deposit or presence on an operational range of any explosives, 
        unexploded ordnance, munitions, munitions fragments, or 
        constituents thereof that are or have been deposited thereon 
        incident to their normal and expected use and remain thereon.
            ``(4) Nothing in this section affects the authority of the 
        Department to protect the environment, safety, and health on 
        operational ranges.''.
            (2) The table of chapters at the beginning of such subtitle 
        and the beginning of part III of such subtitle are amended by 
        inserting after the item relating to chapter 101 the following 
        new item:

``101A. Readiness and Range Preservation....................    2015''.
    (b) Military Readiness and Marine Mammal Protection 
Reconciliation.--The Marine Mammal Protection Act of 1972, as amended 
(Public Law 92-522; 86 Stat. 1027; 16 U.S.C. 1361, et. seq.), is 
amended as follows:
            (1) Definitions.--Section 3 (16 U.S.C. 1362) is amended--
                    (A) by amending paragraph (18) to read as follows:
            ``(18)(A) Except as provided in subparagraph (B), the term 
        `harassment' means any act of pursuit, torment, or annoyance 
        which--
                    ``(i) has the potential to injure a marine mammal 
                or marine mammal stock in the wild; or
                    ``(ii) has the potential to disturb a marine mammal 
                or marine mammal stock in the wild by causing 
                disruption of behavioral patterns, including, but not 
                limited to, migration, breathing, nursing, breeding, 
                feeding, or sheltering;
                    ``(iii) the term `Level A harassment' means 
                harassment described in subparagraph (A)(i); and
                    ``(iv) the term `Level B harassment' means 
                harassment described in subparagraph (A)(ii).
            ``(B) For purposes of military readiness activities, the 
        term `harassment' means any act which--
                    ``(i) injures or has the significant potential to 
                injure a marine mammal or marine mammal stock in the 
                wild; or
                    ``(ii)(I) disturbs or is likely to disturb a marine 
                mammal or marine mammal stock in the wild by causing 
                disruption of natural behavioral patterns, including, 
                but not limited to, migration, surfacing, nursing, 
                breeding, feeding, or sheltering, to a point where such 
                behavioral patterns are abandoned or significantly 
                altered; or
                    ``(II) is directed toward a specific individual, 
                group or stock of marine mammals in the wild that is 
                likely to disturb the individual, group, or stock of 
                marine mammals by disrupting behavior, including, but 
                not limited to, migration, surfacing, nursing, 
                breeding, feeding, or sheltering.''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(30) The term `military readiness activities' includes 
        all training and operations that relate to combat, and the 
        adequate and realistic testing of military equipment, vehicles, 
        weapons, and sensors for proper operation and suitability for 
        combat use. The term does not include the routine operation of 
        installation operating support functions, such as 
        administrative offices, military exchanges, commissaries, water 
        treatment facilities, storage, schools, housing, motor pools, 
        laundries, morale, welfare and recreation activities, shops, 
        and mess halls, nor the operation of industrial activities, or 
        the construction or demolition of such facilities.
            ``(31) The terms `combat' or `combat use' include all forms 
        of armed conflict and operational employment as well as those 
        support functions necessary for armed conflict and operational 
        employment, including transportation of personnel, weapons, 
        supplies, ammunition and other military material to the 
        vicinity of actual or potential armed conflict; intelligence 
        gathering in support of actual or potential armed conflict; 
        command of and communications between military units; and 
        similar activities necessary for the successful prosecution of 
        armed conflict, whether or not conducted at the scene of actual 
        conflict.
            ``(32) The term `Department of Defense' means the military 
        departments and the Coast Guard when it is not operating as a 
        service in the Department of the Navy.''.
            (2) Taking and Importing MArine Mammals.--Section 101 (16 
        U.S.C. 1371) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (5)--
                                    (I) in subparagraph (A), by 
                                inserting ``and military readiness 
                                activities'' after ``other than 
                                commercial fishing''; and
                                    (II) in subparagraph (D)(i), by 
                                inserting ``and military readiness 
                                activities'' after ``other than 
                                commercial fishing''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(7)(A) Upon request by the Department of Defense for an 
        authorization related to military readiness activities, the 
        Secretary, shall allow, during periods of not more than five 
consecutive years each, the incidental, but not intentional, taking of 
marine mammals of a species or population stock if the Secretary--
                    ``(i) finds that the total of such taking during 
                each five-year (or less) period concerned will have a 
                negligible impact upon such species or stock and will 
                not have an unmitigable adverse impact on the 
                availability of such species or stock for taking for 
                subsistence uses pursuant to subsection (b) of this 
                section or section 1379(f) of this title, or in the 
                case of a cooperative agreement under both this chapter 
                and the Whaling Convention Act of 1949 (16 USC. 916 et 
                seq.), pursuant to section 1382(c) of this title; and
                    ``(ii) prescribes regulations setting forth--
                            ``(I) permissible methods of taking 
                        pursuant to such activity, and other means of 
                        affecting the least practicable adverse impact 
                        on such species or stock and its habitat, 
                        paying particular attention to rookeries and 
                        mating grounds, and on the availability of such 
                        species or stock for subsistence uses; and
                            ``(II) requirements pertaining to the 
                        monitoring and reporting of such taking.
            ``(B) The Secretary shall withdraw, or suspend for a time 
        certain, the permission to take marine mammals granted under 
        subparagraph (A), if the Secretary finds, after notice and 
        opportunity for public comment (unless subparagraph (C)(i) 
        applies), that--
                    ``(i) the regulations prescribed under subparagraph 
                (A) regarding methods of taking, monitoring, or 
                reporting are not being substantially complied with; or
                    ``(ii) the taking allowed under subparagraph (A) is 
                having, or may have, more than a negligible impact on 
                the species or stock concerned.
            ``(C)(i) The requirement for notice and opportunity for 
        public comment shall not apply in the case of a suspension of 
        permission to take if the Secretary determines that an 
        emergency exists which poses a significant risk to well-being 
        of the species or stock concerned.
            ``(ii) Sections 1373 and 1374 of this title shall not apply 
        to the taking of marine mammals under the authority of this 
        paragraph.
            ``(D)(i) Upon request by the Department of Defense for an 
        authorization related to military readiness activities, the 
        Secretary shall authorize, for periods of not more than 1 year, 
        subject to such conditions as the Secretary may specify, the 
        incidental, but not intentional, taking by harassment of marine 
        mammals of a species or population stock if the Secretary finds 
        that such harassment during each period concerned--
                    ``(I) will have a negligible impact on such species 
                or stock, and
                    ``(II) will not have an unmitigable adverse impact 
                on the availability of such species or stock for taking 
                for subsistence uses pursuant to subsection (b) of this 
                section, or 1379(f) of this title, or pursuant to a 
                cooperative agreement under section 1388 of this title.
            ``(ii) The authorization for such military readiness 
        activities shall prescribe, where applicable--
                    ``(I) permissible methods of taking by harassment 
                pursuant to such military readiness activity, and other 
                means of affecting the least practicable impact upon 
                such species or stock and its habitat, paying 
                particular attention to rookeries and mating grounds, 
                and on the availability of such species or stock for 
                subsistence uses pursuant to subsection (b) of this 
                section, or 1379(f) of this title, or pursuant to a 
                cooperative agreement under section 1388 of this title;
                    ``(II) the measures that the Secretary of Commerce 
                or Secretary of Interior determines are necessary to 
                ensure no unmitigable adverse impact upon the 
                availability of the species or stock for subsistence 
                uses pursuant to subsection (b) of this section, or 
                1379(f) of this title, or pursuant to a cooperative 
                agreement under section 1388 of this title; and
                    ``(III) requirements pertaining to the monitoring 
                and reporting of such taking by harassment, including 
                requirements for the independent peer review of 
                proposed monitoring plans or other research proposals 
                where the proposed military readiness activity may 
                affect the availability of the species or stock for 
                subsistence uses pursuant to subsection (b) of this 
                section, or 1379(f) of this title, or pursuant to a 
                cooperative agreement under section 1388 of this title.
            ``(iii) The Secretary shall publish a proposed 
        authorization not later than 45 days after receiving a request 
        under this subparagraph and request public comment through 
        notice in the Federal Register for a period of 30 days after 
        publication. Not later than 45 days after the close of the 
        public comment period, if the Secretary makes the findings set 
        forth in clause (E)(i), the Secretary shall issue an 
        authorization with appropriate conditions to meet the 
        requirements of clause (D)(ii).
            ``(iv) The Secretary shall modify, suspend, or revoke an 
        authorization if the Secretary finds that the provisions of 
        clauses (D)(i) or (D)(ii) are not being met.
            ``(v) A person conducting a military readiness activity for 
        which an authorization has been granted under this subparagraph 
        shall not be subject to the penalties of this chapter for 
        taking by harassment that occurs in compliance with such 
        authorization.
            ``(E) Nothing in this chapter shall require disclosure of 
        information classified in the interests of national defense.'';
                    (B) by redesignating subsection (e) as subsection 
                (f); and
                    (C) by inserting after subsection (d) the following 
                new subsection (e):
    ``(e) Exemption of Actions Necessary for National Defense.--The 
Secretary of Defense, after conferring with the Secretary of Commerce, 
the Secretary of Interior, or both, as appropriate, may exempt any 
action or category of actions undertaken by the Department of Defense 
or its components from compliance with any requirement of the Marine 
Mammal Protection Act, 16 U.S.C. 1361 et seq., if he determines that it 
is necessary for national defense. Exemptions granted under this 
section shall be for a period of not more than two years. Additional 
exemptions for periods not to exceed two years each may be granted for 
the same action or category of actions upon the Secretary of Defense, 
after conferring with the Secretary of Commerce, the Secretary of 
Interior, or both as appropriate, making a new determination.''.

                TITLE IV--ADMINISTRATIVE TRANSFORMATION

             Subtitle A--Transformation of DoD Organization

SEC. 401. REORGANIZATION WITHIN THE DEPARTMENT OF DEFENSE.

    Section 125 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``subsections (b) and 
        (c)'' in the second sentence and inserting ``subsections (b), 
        (c), and (d)'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Notwithstanding any provision of this title, after the 
expiration of 60 days after providing notice of such action to the 
Congress, the Secretary of Defense, subject to the direction of the 
President, may substantially transfer, reassign, consolidate, 
reorganize, or abolish a function, power, organization, position, or 
duty vested in the Office of the Secretary of Defense, or an officer, 
official, or agency thereof.''.

SEC. 402. REASSIGNMENT OF PERSONNEL SERVING IN THE OFFICE OF THE 
              SECRETARY OF DEFENSE.

    Section 143 of title 10, United States Code, is repealed.

SEC. 403. APPOINTMENTS OF RETIRED MEMBERS OF THE ARMED FORCES TO 
              POSITIONS IN THE DEPARTMENT OF DEFENSE.

    Section 3326 of title 5, United States Code, is repealed.

SEC. 404. TRANSFER OF DEPARTMENT OF DEFENSE PERSONNEL SECURITY 
              INVESTIGATIVE FUNCTIONS AND DEFENSE PERSONNEL PERFORMING 
              THOSE FUNCTIONS.

    The Secretary of Defense may transfer to the Office of Personnel 
Management, and the Director of the Office of Personnel Management may 
accept, those personnel security investigations functions currently 
performed by the Department of Defense Defense Security Service. If the 
Office of Personnel Management accepts the transfer of those functions, 
it also shall accept the transfer of the Defense Security Service 
employees performing those functions and their first level supervisors 
at the time of the transfer. The Office of Personnel Management also 
may accept the transfer of the Defense Security Service employees who 
provide support services or higher level supervision if those positions 
are required after the transfer. The transfer under this Act of full-
time personnel and part-time personnel shall not cause any such 
employee to be separated or reduced in grade or compensation for one 
year after the date of transfer to the Office of Personnel Management. 
Any transfer made pursuant to this section shall be considered a 
transfer of function for purposes of section 3503 of title 5, United 
States Code.

SEC. 405. CONVERSIONS OF COMMERCIAL ACTIVITIES.

    (a) Changes to Elements of Analysis.--Paragraph (3)(A) of section 
2461(b) of title 10, United States Code, is amended--
            (1) by striking ``of the cost'';
            (2) by striking ``savings'' and inserting ``the best 
        value'';
            (3) by redesignating subsection (iii) as subsection (iv); 
        and
            (4) by inserting after clause (ii) the following new clause 
        (iii):
                            ``(iii) Benefits in addition to price that 
                        warrant performance of the function by a source 
                        at a cost higher than that of performance by 
                        Department of Defense civilian employees.''.
    (b) Contracting If Best Value.--Section 2462(a) of such title is 
amended by striking ``such a source can provide such supply or service 
to the Department at a cost that is lower (after including any cost 
differential required by law, Executive order, or regulation) than the 
cost at which the Department can provide the same supply or service'' 
and inserting ``performance by that source represents the best value to 
the Government, determined in accordance with the competition 
requirements of OMB Circular A-76.''.

    Subtitle B--Transformation of Appropriations and Budget Process

SEC. 411. ENHANCED GENERAL TRANSFER AUTHORITY.

    Section 2214 of title 10, United States Code, is amended to read as 
follows:
``Sec. 2214. Transfer of funds: procedures and limitations
    ``(a) General Authority.--Upon a determination by the Secretary of 
Defense that such action is necessary in the national interest, each 
fiscal year he may transfer an amount not to exceed two and one-half 
percent of the total appropriations or funds appropriated to the 
Department of Defense for that fiscal year of working capital funds of 
the Department of Defense or amounts made available to the Department 
of Defense in the act making appropriations for the Department of 
Defense for military functions of the Department of Defense (except 
military construction) for that fiscal year between such appropriations 
or funds or any subdivision thereof. Amounts so transferred under this 
authority shall be merged with, and be available for the same purposes 
and for the same time period, as the appropriation or fund to which 
transferred.
    ``(b) Limitations.--The authority under subsection (a) may not be 
used unless it is based upon unforseen military requirements, and for 
higher priority items than those for which the appropriations or funds 
being transferred were appropriated originally or for an item or 
activity for which funds are requested has been denied by the Congress.
    ``(c) Congressional Notification.--The Secretary of Defense shall 
notify the Congress 15 days before any transfer is made under the 
authority of this section.
    ``(d) Increase in Time of War or National Emergency.--In time of 
war or national emergency declared by the President or the Congress, 
the amount which may be transferred under this section may be increased 
up to five percent.''.

SEC. 412. TRANSFER OF FUNDS TO CORRECT SPECIFIC ACQUISITION FUNDING 
              PROBLEMS.

    Section 2214 of title 10, United States Code, is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsections:
    ``(b) Transfer of Funds To Complete Research, Development, Testing, 
and Evaluation of Major Defense Acquisition Systems.--In addition to 
any other transfer authority that may be provided in an appropriations 
act, upon a determination by the Milestone Decision Authority that such 
action is necessary to continue development efforts when additional 
development of an acquisition program is needed before procurement can 
begin, up to $20,000,000 per acquisition program and up to a total of 
$250,000,000 for a single fiscal year may be transferred from 
procurement P-1 line items of Acquisition Category I, II, III, and IV 
of a Procurement appropriation to the corresponding R-1 line items of a 
Research, Development, Test and Evaluation appropriation for the 
purpose of continuing development efforts.
    ``(c) Transfers Back to Procurement Appropriations.--Upon a 
determination that all or part of the funds transferred under 
subsection (b) are not necessary for the purposes provided therein, 
such amounts may be transferred back to a Procurement appropriation for 
the purpose of beginning procurement of the acquisition program for 
which funds were transferred.''.

SEC. 413. BALLISTIC MISSILE DEFENSE SYSTEM.

    Section 223 of title 10, United States Code, is repealed.

SEC. 414. FUNDING FOR THE MISSILE DEFENSE AGENCY.

    (a) In General.--Funds appropriated to the Department of Defense 
that are available for the Missile Defense Agency shall be appropriated 
under the heading ``Missile Defense Agency'' and shall be available for 
all necessary expenses for missile defense missions of the Department 
of Defense.
    (b) Availability of Funds for Three Years.--Funds authorized under 
this section shall remain available for obligation for three 
consecutive years.

    Subtitle C--Transformation of Information Gathering for Congress

SEC. 421. SUNSET ON RECURRING REPORTS.

    All requirements established by law that require the Secretary of 
Defense or any element of the Department of Defense to submit recurring 
reports to Congress or to a congressional committee shall be deemed to 
expire after five years from the date of enactment of the statute 
requiring the report. With the exception of the Secretary's annual 
report to Congress as required by section 113 of title 10, United 
States Code, this provision applies to all reports currently required 
to be submitted as well as any reporting requirements established after 
the effective date of this act.

SEC. 422. REPEAL OF VARIOUS REPORTS REQUIRED OF THE DEPARTMENT OF 
              DEFENSE.

    (a) Provisions of Title 10.--Title 10, United States Code, is 
amended--
            (1) in section 113--
                    (A) by striking subsection (j);
                    (B) by striking subsection (m); and
                    (C) by redesignating subsections (k) and (l) as (j) 
                and (k), respectively;
            (2) in section 116--
                    (A) by repealing this entire section in chapter 2; 
                and
                    (B) by amending the table of sections at the 
                beginning of such chapter 2 by striking the item 
                relating to section 116;
            (3) in section 117--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (4) in section 127--
                    (A) by striking subsection (d);
            (5) in section 127a--
                    (A) by striking subparagraph (a)(3);
                    (B) by redesignating subparagraph (a)(4) as 
                subparagraph (a)(3);
                    (C) by striking subsection (d); and
                    (D) by redesignating subsections (e) through (i) as 
                subsections (d) through (h), respectively;
            (6) in section 128--
                    (A) by striking paragraph (d);
            (7) in section 129--
                    (A) by striking subsection (f);
            (8) in section 153--
                    (A) by striking subsection (d);
            (9) in section 184--
                    (A) by amending subsection (a) to read as follows:
    ``(a) Authority To Establish Regional Center for Security 
Studies.--The Secretary of Defense may establish such regional centers 
for security studies as he deems necessary and appropriate.'';
                    (B) by striking subsection (b); and
                    (C) by redesignating subsection (c) as subsection 
                (b);
            (10) in section 226--
                    (A) by repealing this entire section in chapter 9; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 226;
            (11) for section 228--
                    (A) by repealing this entire section in chapter 9; 
                and
                    (B) by amending the table of sections at the 
                beginning of such chapter by striking the item relating 
                to section 228;
            (12) in section 401--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (13) in section 437--
                    (A) by striking subsections (b) and (c);
                    (B) by redesignating subsection (d) as subsection 
                (b);
            (14) in section 482--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 482;
            (15) in section 483--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 483;
            (16) in section 484--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 484;
            (17) in section 487--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 487;
            (18) in section 520c--
                    (A) by striking subsections (b) and (c);
                    (B) by striking the designator and the catchline in 
                the preceding matter;
                    (C) by amending the section title to read: 
                ``Sec. 520c. Provision of meals and refreshments for 
                recruiting purposes''; and
                    (D) by amending the table of sections at the 
                beginning of chapter 31 by replacing the item relating 
                to section 520c with the following new item:

``520c. Provision of meals and refreshments for recruiting purposes.'';
            (19) in section 664--
                    (A) in clause (4)(F)(ii) of subsection (i), by 
                striking ``and notifies Congress upon each approval, 
                providing the criteria that led to that approval'';
            (20) in section 983(e)(1)--
                    (A) by striking ``and to Congress'';
            (21) in section 986--
                    (A) by striking subsection (e);
            (22) in section 1060--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e), through (g) 
                as subsections (d) through (f) respectively;
            (23) in section 1130--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively;
            (24) in section 1557--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (25) in section 1563--
                    (A) by repealing this entire section in chapter 80; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 1563;
            (26) in section 1597--
                    (A) by striking subsections (c) through (e);
            (27) in section 2010--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively;
            (28) in section 2011--
                    (A) by striking subsection (e);
            (29) in section 2166--
                    (A) by striking subsection (h);
            (30) in section 2208--
                    (A) in subsection (j)(2), by striking ``and 
                notifies Congress regarding the reasons for the 
                waiver'';
            (31) in section 2212--
                    (A) by striking subsections (d) and (e); and
                    (B) by redesignating subsection (f) as subsection 
                (d);
            (32) in section 2214--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsection (d) as subsection 
                (e);
            (33) in section 2216--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsection (j) as subsection 
                (i);
            (34) in section 2222--
                    (A) by repealing this entire section in chapter 
                131; and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 2222;
            (35) in section 2224--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (36) in section 2255(b)--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after the catchline;
            (37) in section 2281--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (38) in section 2282--
                    (A) by repealing this entire section in chapter 
                136; and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 2282;
            (39) in section 2306b--
                    (A) by striking subsection (i);
                    (B) in subsection (l)--
                            (i) by striking paragraphs (1) and (6);
                            (ii) by redesignating paragraphs (2) 
                        through (10) as paragraphs (1) through (8), 
                        respectively; and
                    (C) by redesignating subsections (j) through (l) as 
                subsections (i) through (k), respectively;
            (40) in section 2323--
                    (A) in subsection (d), by amending paragraph (2) to 
                read as follows: ``where the Department of Defense has 
                met its goal under subsection (a) during the proceeding 
                fiscal year''; and
                    (B) by striking subsection (i); and
                    (C) redesignating subsection (j) as subsection (i);
            (41) in section 2327(c)(1)--
                    (A) in subparagraph (A), by striking ``after the 
                date on which such head of an agency submits to 
                Congress a report on the contract'' and inserting ``if 
                in the best interests of the government'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (42) in section 2350a--
                    (A) by striking subsection (f); and
                    (B) in subsection (g), by striking paragraph (3);
            (43) in section 2350b--
                    (A) by striking subsection (d);
                    (B) by redesignating subsections (e), (f) and (g) 
                as subsections (d), (e) and (f), respectively;
            (44) in section 2350j--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively;
            (45) in section 2361(b)--
                    (A) by striking paragraph (2);
            (46) in section 2367--
                    (A) by striking subsections (c) and (d);
            (47) in section 2371--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsection (i) as subsection 
                (h);
            (48) in section 2374a--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (49) in section 2399(e)--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraph (3) as paragraph 
                (2);
            (50) in section 2401--
                    (A) in subsection (a), by striking ``only as 
                provided in subsection (b)'' both times such phrase 
                appears in the subsection;
                    (B) by striking subsection (b); and
                    (C) by redesignating subsections (c) through (f) as 
                subsections (b) through (e), respectively;
            (51) in section 2410i--
                    (A) in subsection (c), by striking the last 
                sentence;
            (52) in section 2410m--
                    (A) by striking subsection (c);
            (53) in section 2432--
                    (A) in subsection (b)--
                            (i) by striking paragraph (1);
                            (ii) by redesignating paragraphs (2) and 
                        (3) as paragraphs (1) and (2) respectively; and
                            (iii) in paragraph (2) (as redesignated)--
                                    (I) by striking subparagraph (B);
                                    (II) by striking ``(A)'' after the 
                                catch line; and
                                    (III) by redesignating clauses (i), 
                                (ii) and (iii) as subparagraphs (A), 
                                (B) and (C), respectively; and
                    (B)(i) by striking subsections (f) and (h); and
                    (ii) by redesignating subsection (g) as subsection 
                (f);
            (54) in section 2433--
                    (A) in subsection (d), by striking paragraph (3);
                    (B) by striking subsection (e); and
                    (C) by redesignating subsections (f), (g) and (h) 
                as subsections (e), (f) and (g), respectively;
            (55) in section 2457--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) and (f) as 
                subsections (d) and (e), respectively;
            (56) in section 2461a--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (57) in section 2464--
                    (A) in subsection (b), by striking paragraph (3);
            (58) in section 2467--
                    (A) by striking subsection (c);
            (59) in section 2472--
                    (A) by striking subsection (b);
            (60) in section 2493--
                    (A) by striking subsection (g);
            (61) for section 2504--
                    (A) by repealing the entire section in chapter 148; 
                and
                    (B) by amending the section of tables for such 
                chapter by striking the item relating to section 2504;
            (62) in section 2515--
                    (A) by striking subsection (d);
            (63) in section 2521--
                    (A) by striking subsection (e);
            (64) in section 2536(b)--
                    (A) by striking paragraph (2); and
                    (B) in paragraph (1)--
                            (i) by striking ``(1)'' after the catch 
                        line;
                            (ii) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively; 
                        and
                            (iii) by redesignating clauses (i) and (ii) 
                        as subparagraphs (A) and (B), respectively;
            (65) in section 2537--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b);
            (66) in section 2541d--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a)'' and the catchline in the 
                remaining matter;
            (67) in section 2561--
                    (A) by striking subsections (c), (d) and (f); and
                    (B) by redesignating subsection (e) as subsection 
                (c);
            (68) in section 2563--
                    (A) in subsection (c)(2), by striking ``and 
                notifies Congress regarding the reasons for the 
                waiver'';
            (69) in section 2631--
                    (A) in subsection (b)(3), by striking the last 
                sentence;
            (70) in section 2645--
                    (A) by striking subsection (d);
                    (B) by striking subsection (g); and
                    (C) by redesignating subsections (e), (f) and (h) 
                as subsections (d), (e) and (f), respectively;
            (71) in section 2662--
                    (A) by striking subsection (e);
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively; and
                    (C) in subsection (f), as redesignated by 
                subparagraph (B), by striking ``, and the reporting 
                requirement set forth in subsection (e) must not apply 
                with respect to a real property transaction otherwise 
                covered by that subsection,'';
            (72) in section 2667a(c)--
                    (A) by striking paragraph (2);
                    (B) by striking ``(1)'' after the catch line;
            (73) in section 2676--
                    (A) in subsection (d), by striking all after ``is 
                approved by the Secretary concerned'' and inserting a 
                period;
            (74) in section 2680--
                    (A) by striking subsection (e);
            (75) in section 2688--
                    (A) by striking subsection (e);
                    (B) by redesignating subsections (f) through (i) as 
                subsections (e) through (h), respectively; and-
                    (C) in subsection (f), as redesignated by 
                subparagraph (B), by striking the last sentence;
            (76) in section 2696--
                    (A) by striking subsections (c) and (d); and
                    (B) by redesignating subsection (e) as subsection 
                (c);
            (77) in section 2703--
                    (A) in subsection (b)(2)--
                            (i) by striking subparagraph (B);
                            (ii) by striking the designator ``(A)'' 
                        which precedes ``determines that permanent 
                        relocation--'';
                            (iii) by striking the dash that follows 
                        ``such paragraph unless the Secretary'' in 
                        paragraph (2);
                            (iv) by realigning the previously 
                        designated subparagraph (A) to follow at the 
                        end of paragraph (2); and
                            (v) by redesignating clauses (i) through 
                        (iii) as subparagraphs (A) through (C), 
                        respectively;
            (78) for section 2723--
                    (A) by repealing this entire section in chapter 
                161; and
                    (B) by amending the table of sections at the 
                beginning of such chapter by striking the item relating 
                to section 2723;
            (79) in section 2803(b)--
                    (A) by striking ``21-day'' and inserting ``7-day'';
            (80) in section 2804--
                    (A) by striking ``21-day'' and inserting ``7-day'';
            (81) in section 2805--
                    (A) in subsection (b), by striking paragraph (2); 
                and
                    (B) by striking ``(1)'' that precedes the remaining 
                matter;
            (82) in section 2807--
                    (A) by striking subsections (b) and (c); and
                    (B) by redesignating subsection (d) as subsection 
                (b);
            (83) in section 2809--
                    (A) by striking subsection (f);
            (84) in section 2811--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (85) in section 2812--
                    (A) in subsection (c), by striking paragraph (1);
                    (B) by striking ``(2)'' that precedes the remaining 
                matter;
            (86) in section 2813--
                    (A) by striking subsection (c);
            (87) in section 2815--
                    (A) by repealing this entire section in chapter 
                169; and
                    (B) by amending the table of sections at the 
                beginning of such chapter by striking the item relating 
                to section 2815;
            (88) in section 2825--
                    (A) in subparagraph (b)(1)(B)--
                            (i) by striking clause (ii);
                            (ii) by striking ``, and'' at the end of 
                        clause (i); and
                            (iii) by striking ``(i)'' in the remaining 
                        text following ``in the preceding sentence 
                        if'';
                    (B) in subsection (c)(1)--
                            (i) by striking subparagraphs (C) and (D);
                            (ii) by inserting ``and'' at the end of 
                        subparagraph (A); and
                            (iii) by striking the semi-colon at the end 
                        of subparagraph (B) and inserting a period;
            (89) in section 2826--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) through (i) as 
                subsections (b) through (h), respectively;
            (90) in section 2827--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Subject to subsection (b), 
                the Secretary'' and inserting ``The Secretary'';
            (91) in section 2828--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f);
            (92) in section 2835--
                    (A) by striking subsections (b) and (g);
                    (B) by redesignating subsections (c) through (h) as 
                subsections (b) through (f), respectively; and
                    (C) in subsection (a), by striking ``Subject to 
                subsection (b), the Secretary'' and inserting ``The 
                Secretary'';
            (93) in section 2836--
                    (A) in subsection (a), by striking ``Subject to 
                subsection (b), the Secretary'' and inserting ``The 
                Secretary'';
                    (B) by striking subsection (b);
                    (C) by striking subsection (f); and
                    (D) by redesignating subsections (c) through (g) as 
                subsections (b) through (e), respectively;
            (94) in section 2837--
                    (A) in subsection (c)--
                            (i) by striking paragraph (2); and
                            (ii) by striking ``(1)'' after the 
                        catchline and preceding the remaining matter;
                    (B) by striking subsection (f); and
                    (C) by redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively;
            (95) in section 2853--
                    (A) in subsection (c), by striking paragraphs (2) 
                and (3);
                    (B) in the remaining matter, by striking ``(1)'' 
                and the dash and realigning the paragraph to read as a 
                subsection; and
                    (C) by striking the semi-colon at the end of the 
                remaining matter and inserting a period;
            (96) in section 2854--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Subject to subsection (b), 
                the'' in the preceding matter and inserting ``The'';
            (97) in section 2854a--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) through (g) as 
                subsections (c) through (f), respectively;
            (98) in section 2865--
                    (A) in subsection (e), by striking paragraph (2);
                    (B) by striking subsection (f); and
                    (C) by striking ``(1)'' after the catch line;
            (99) in section 2866--
                    (A) in subsection (c), by striking paragraph (2); 
                and
                    (B) by striking ``(1)'' after the catch line;
            (100) in section 2867--
                    (A) by striking subsection (c);
            (101) in section 2875--
                    (A) by striking subsection (e);
            (102) in section 2884--
                    (A) by striking subsection (b);
                    (B) in subsection (a)--
                            (i) by striking ``(1)'';
                            (ii) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively;
                            (iii) by striking ``(2)'' and inserting 
                        ``(b) Content of Reports.--'';
                    (C) by amending the section title to read as 
                follows: ``Sec. 2884. Project reports''; and
                    (D) by amending the table of sections at the 
                beginning of such chapter 169 by striking the item 
                relating to section 2884 and inserting the following 
                new item:

``2884. Project reports.'';
            (103) in section 2902--
                    (A) in subsection (g), by striking paragraph (2); 
                and
                    (B) by striking ``(1)'' after the catch line;
            (104) in section 5143--
                    (A) by striking subsection (e);
            (105) in section 6954--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f);
            (106) in section 7049--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) through (g) as 
                subsections (c) through (f), respectively;
            (107) in section 9356--
                    (A) by striking subsection (c);
                    (B) by redesignating subsections (d) and (e) as 
                subsections (c) and (d),respectively; and
                    (C) in subsection (a), by striking ``Subject to 
                subsection (c), the Secretary'' and inserting ``The 
                Secretary'';
            (108) in section 9514--
                    (A) by striking subsection (c);
                    (B) by striking subsection (f); and
                    (C) by redesignating subsection (g) as subsection 
                (f);
            (109) in section 12302--
                    (A) in subsection (b), by striking the last 
                sentence; and
                    (B) by striking subsection (d);
            (110) for section 16137--
                    (A) by repealing this entire section in chapter 
                1606; and
                    (B) by amending the table of sections at the 
                beginning of such chapter by striking the item relating 
                to section 16137.
    (b) Foreign Assistance Act of 1961.--Section 656 of the Foreign 
Assistance Act of 1961 (Public Law 87-195) is repealed.
    (c) Defense Acquisition Improvement Act of 1986.--Section 908 of 
the Defense Acquisition Improvement Act of 1986 (as contained in 
section 101(c) of Public Law 99-500 and identically enacted in section 
101(c) [title X] of Public Law 99-591 and title IX of division A of 
Public Law 99-661) (10 U.S.C. 2326 note) is amended by striking 
subsection (b).
    (d) National Defense Authorization Act for Fiscal Years 1988 and 
1989.--Section 1121 of the National Defense Authorization Act for 
Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 1147) (10 
U.S.C. 113 note) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsections (g) and (h) as subsections 
        (f) and (g), respectively.
    (e) Defense Authorization Amendments and Base Closure and 
Realignment Act of 1990.--Section 206 of the Defense Authorization 
Amendments and Base Closure and Realignment Act of 1990 (Public Law 
100-526; 102 Stat. 2631) (10 U.S.C. 2687) is repealed.
    (f) National Defense Authorization Act for Fiscal Year 1991.--The 
National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 104 Stat. 1607, 1819, and 1822, respectively) is amended--
            (1) in section 831, by striking subsection (l);
            (2) in section 2921, by striking subsections (e), (f), 
        (g)(1), and (g)(2); and
            (3) in section 2926, by striking subsection (g).
    (g) Defense Economic Adjustment, Diversification, Conversion, and 
Stabilization Act of 1990.--Section 4004(c) of the Defense Economic 
Adjustment, Diversification, Conversion, and Stabilization Act of 1990 
(Public Law 101-510; 104 Stat. 1849) is amended by striking paragraph 
(3).
    (h) National Defense Authorization Act for Fiscal Years 1992 and 
1993.--The National Defense Authorization Act for Fiscal Years 1992 and 
1993 (Public Law 102-190; 105 Stat. 1411 and 1562, respectively) is 
amended--
            (1) in section 734--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) through (f) as 
                subsections (c) through (e), respectively; and
            (2) by repealing section 2868.
    (i) National Defense Authorization Act for Fiscal Year 1993.--The 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484; 106 Stat. 2367, 2439, 2516, and 2609 respectively) is 
amended--
            (1) in section 324--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a)'' prior to ``Sense of 
                Congress'' in the remaining matter;
            (2) in section 722, by striking subsection (d);
            (3) in section 1082(b)--
                    (A) by striking subparagraph (1)(B);
                    (B) by striking the dash; and
                    (C) by striking ``(A)'' preceding the remaining 
                matter, and realigning it to read as a paragraph; and
            (4) in section 2827--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b).
    (j) National Defense Authorization Act for Fiscal Year 1994.--The 
National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1659 and 1931 respectively) is amended--
            (1) by repealing section 542; and
            (2) in section 2924, by striking subsection (b).
    (k) National Defense Authorization Act for Fiscal Year 1995.--The 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 2804 and 2890, respectively) is amended--
            (1) in section 721--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsection (i) as subsection 
                (h); and
            (2) in section 1305, by striking subsection (h).
    (l) National Defense Authorization Act for Fiscal Year 1996.--
Section 2840 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 564) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4); and
            (2) in subsection (b)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4).
    (m) National Defense Authorization Act for Fiscal Year 1997.--The 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2480 and 2653, respectively) is amended--
            (1) in section 324, by striking subsection (c); and
            (2) in section 1065, by striking subsection (b).
    (n) Omnibus Consolidated Appropriations Act, 1997.--Section 8009 of 
the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208; 
110 Stat. 3009-89) is amended--
            (1) by striking ``unless the congressional defense 
        committees have been notified at least thirty days in advance 
        of the proposed contract award'';
            (2) by striking the comma after ``year''; and
            (3) by striking the colon before ``Provided''.
    (o) National Defense Authorization Act for Fiscal Year 1998.--
Section 349 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1690) is amended by striking 
subsection (e).
    (p) Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999.--The Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2075 and 2155, 
respectively) is amended--
            (1) in section 745, subsection (e)--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' following the catchline in 
                the preceding matter; and
            (2) by repealing section 1223.
    (q) Department of Defense Appropriations Act, 1999.--Section 8005 
of the Department of Defense Appropriations Act, 1999 (Public Law 105-
262; 112 Stat. 2297) is amended by striking ``Provided further, That 
the Secretary of Defense shall notify the Congress promptly of all 
transfers made pursuant to this authority or any other authority in 
this Act:''.
    (r) National Defense Authorization Act for Fiscal Year 2000.--The 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 542, 697, 706, 748, 756, 779, and 798, respectively) 
is amended--
            (1) in section 212, by striking subsection (c);
            (2) in section 724, by striking subsection (e);
            (3) by repealing section 811;
            (4) by repealing section 1025;
            (5) in section 1039, by striking subsection (b);
            (6) in section 1201--
                    (A) by striking subsections (d) and (e); and
                    (B) by redesignating subsection (f) as subsection 
                (d); and
            (7) in section 1402, by striking subsection (b)(2).
    (s) Military Construction Appropriations Act, 2001.--The Military 
Construction Appropriations Act, 2001 (Public Law 106-246; 114 Stat. 
517 and 518, respectively) is amended--
            (1) by repealing section 125; and
            (2) in section 127, by striking all that follows after 
        ``including flag and general officer quarters'' and inserting a 
        period.
    (t) Department of Defense Appropriations Act, 2001.--Section 8019 
of the Department of Defense Appropriations Act, 2001 (Public Law 106-
259; 114 Stat. 678) is amended by striking the last sentence.
    (u) Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001.--The Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398 Appendix; 114 Stat. 1654A-28 and 
1654A-247, respectively) is amended--
            (1) by repealing section 131;
            (2) in section 1006, by striking subsection (c); and
            (3) by repealing section 1233.
    (v) National Defense Authorization Act for Fiscal Year 2002.--The 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 115 Stat. 1180 and 1206, respectively) is amended--
            (1) in section 804(a), by striking ``of each of years 2003 
        through 2006'' and inserting ``2003,''; and
            (2) by amending subsection (c) of section 1008 to read as 
        follows:
    ``(c) Information to Auditors.--Not later than 180 days prior to 
the date set by the Office of Management and Budget for submission of 
audited financial statements, the Under Secretary of Defense 
(Comptroller), the Assistant Secretary of each military department, and 
the defense agency executive with responsibility for financial 
management and comptroller functions shall each provide to the auditors 
of the financial statement of that official's department or agency for 
the fiscal year ongoing that official's preliminary management 
representation, in writing, regarding the expected reliability of the 
financial statement. The preliminary representation shall be consistent 
with guidance issued by the Director of the Office of Management and 
Budget for the final representation and shall include the basis for the 
reliability assessment stated in the representation.''.
    (w) Department of Defense and Emergency Supplemental Appropriations 
for Recovery From and Response To Terrorist Attacks on the United 
States Act, 2002.--Section 8009 of the Department of Defense and 
Emergency Supplemental Appropriations for Recovery From and Response To 
Terrorist Attacks on the United States Act, 2002 (Public Law 107-117; 
115 Stat. 2249; 10 U.S.C. 401 note) is amended by striking ``, and 
these obligations shall be reported to the Congress as of September 30 
of each year''.
    (x) Senate Executive Resolution 75 (105th Congress, 1st Session, 
Agreed to by the Senate on April 24, 1997).--Section 2, Condition 11, 
paragraph (F), of Senate Executive Resolution 75, a provision of the 
Senate's advice and consent to the ratification of the Chemical Weapons 
Convention (Treaty Doc. 103-21), is repealed.
    (y) The Office of Federal Procurement Policy Act.--Section 30 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 426) is 
amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).

       Subtitle D--Transformation of Management of Naval Vessels

SEC. 431. REPEAL OF NOTICE AND WAIT PERIOD PRIOR TO REDUCING THE 
              INVENTORY OF COMBATANT SURFACE VESSELS.

    (a) In General.--Section 7296 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by deleting the item relating to 
section 7296.

SEC. 432. OVERHAUL AND REPAIR OF SHIPS ON EXTENDED DEPLOYMENTS.

    Section 7310 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Vessels on Extended Overseas Deployments.--
            ``(1) A vessel referred to in subsection (a) may be 
        overhauled, repaired, or maintained in a shipyard outside the 
        United States or Guam if it is on an extended overseas 
        deployment.
            ``(2) An extended overseas deployment is a deployment 
        outside the United States of a vessel homeported in the United 
        States that exceeds, or is scheduled to exceed, 12 months 
        without a return to the United States.''.

                  Subtitle E--Miscellaneous Provisions

SEC. 441. SUPPORT OF FOREIGN NATIONS COMMITTED TO COMBATING GLOBAL 
              TERRORISM.

    (a) Authority.--Notwithstanding any other provision of law, the 
Secretary of Defense, with the concurrence of the Secretary of State, 
may provide military assistance or support to foreign nations assisting 
United States military operations or other activities to combat global 
terrorism. Such assistance may include the provision of equipment, 
supplies, services, and funding.
    (b) Limitation on Support.--Military assistance provided under the 
authority of this section may not exceed $200,000,000 in any fiscal 
year.
    (c) Additional Authority.--The authority to provide assistance 
under this section is in addition to any other authority to provide 
assistance to foreign countries.
                                 <all>