[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1043 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 103
109th CONGRESS
  1st Session
                                S. 1043



     To authorize appropriations for fiscal year 2006 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 17, 2005

 Mr. Warner, from the Committee on Armed Forces, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2006 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Defense Authorization 
Act for Fiscal Year 2006''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for AH-64D Apache attack 
                            helicopter block II conversions.
Sec. 112. Multiyear procurement authority for modernized target 
                            acquisition designation/pilot night vision 
                            sensors for AH-64D Apache attack 
                            helicopters.
Sec. 113. Multiyear procurement authority for utility helicopters.
                       Subtitle C--Navy Programs

Sec. 121. Prohibition on acquisition of next generation destroyer 
                            (DD(X)) through a single naval shipyard.
Sec. 122. Split funding authorization for CVN-78 aircraft carrier.
Sec. 123. LHA replacement (LHA(R)) ship.
Sec. 124. Refueling and complex overhaul of the U.S.S. Carl Vinson.
                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-17 aircraft.
Sec. 132. Prohibition on retirement of KC-135E aircraft.
Sec. 133. Use of Tanker Replacement Transfer Fund for modernization of 
                            aerial refueling tankers.
Sec. 134. Prohibition on retirement of F-117 aircraft.
Sec. 135. Prohibition on retirement of C-130E/H tactical airlift 
                            aircraft.
Sec. 136. Procurement of C-130J/KC-130J aircraft after fiscal year 
                            2005.
Sec. 137. Aircraft for performance of aeromedical evacuations.
                   Subtitle E--Defense-Wide Programs

Sec. 151. Advanced SEAL Delivery System.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Contract for the procurement of the Future Combat System 
                            (FCS).
Sec. 212. Joint field experiment on stability and support operations.
                  Subtitle C--Missile Defense Programs

Sec. 221. One-year extension of Comptroller General assessments of 
                            ballistic missile defense programs.
Sec. 222. Fielding of ballistic missile defense capabilities.
Sec. 223. Plans for test and evaluation of operational capability of 
                            the Ballistic Missile Defense System.
Subtitle D--High-Performance Defense Manufacturing Technology Research 
                            and Development

Sec. 231. Research and development.
Sec. 232. Transition of transformational manufacturing processes and 
                            technologies to the defense manufacturing 
                            base.
Sec. 233. Manufacturing technology strategies.
Sec. 234. Report.
Sec. 235. Definitions.
                       Subtitle E--Other Matters

Sec. 241. Expansion of eligibility for leadership of Department of 
                            Defense Test Resource Management Center.
Sec. 242. Technology transition.
Sec. 243. Prevention, mitigation, and treatment of blast injuries.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.
                  Subtitle B--Environmental Provisions

Sec. 311. Elimination and simplification of certain items required in 
                            the annual report on environmental quality 
                            programs and other environmental 
                            activities.
Sec. 312. Payment of certain private cleanup costs in connection with 
                            the Defense Environmental Restoration 
                            Program.
                       Subtitle C--Other Matters

Sec. 321. Aircraft carriers.
Sec. 322. Limitation on transition of funding for East Coast shipyards 
                            from funding through Navy Working Capital 
                            Fund to direct funding.
Sec. 323. Use of funds from National Defense Sealift Fund to exercise 
                            purchase options on maritime prepositioning 
                            ship vessels.
Sec. 324. Purchase and destruction of weapons overseas.
Sec. 325. Increase in maximum contract amount for procurement of 
                            supplies and services from exchange stores 
                            outside the United States.
Sec. 326. Extension of authority to provide logistics support and 
                            services for weapon systems contractors.
Sec. 327. Army training strategy.
Sec. 328. Limitation on financial management improvement and audit 
                            initiatives within the Department of 
                            Defense.
Sec. 329. Study on use of ethanol fuel.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision of permanent active duty end strength minimum 
                            levels.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2006 limitations on non-dual status technicians.
              Subtitle C--Authorizations of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
Sec. 422. Armed Forces Retirement Home.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Exclusion of general and flag officers on leave pending 
                            separation or retirement from computation 
                            of active duty officers for general and 
                            flag officer distribution and strength 
                            limitations.
Sec. 502. Expansion of joint duty assignments for reserve component 
                            general and flag officers.
Sec. 503. Deadline for receipt by promotion selection boards of 
                            correspondence from eligible officers.
Sec. 504. Furnishing to promotion selection boards of adverse 
                            information on officers eligible for 
                            promotion to certain senior grades.
Sec. 505. Grades of the Judge Advocates General.
Sec. 506. Temporary extension of authority to reduce minimum length of 
                            commissioned service for voluntary 
                            retirement as an officer.
Sec. 507. Modification of strength in grade limitations applicable to 
                            reserve flag officers in active status.
Sec. 508. Uniform authority for deferment of separation of reserve 
                            general and flag officers for age.
                 Subtitle B--Enlisted Personnel Policy

Sec. 521. Uniform citizenship or residency requirements for enlistment 
                            in the Armed Forces.
            Subtitle C--Reserve Component Personnel Matters

Sec. 531. Requirements for physical examinations and medical and dental 
                            readiness for members of the Selected 
                            Reserve not on active duty.
Sec. 532. Repeal of limitation on amount of financial assistance under 
                            Reserve Officers' Training Corps 
                            scholarship program.
Sec. 533. Procedures for suspending financial assistance and 
                            subsistence allowance for senior ROTC 
                            cadets and midshipmen on the basis of 
                            health-related conditions.
Sec. 534. Increase in maximum number of Army Reserve and Army National 
                            Guard cadets under Reserve Officers' 
                            Training Corps.
Sec. 535. Modification of educational assistance for Reserves 
                            supporting contingency and other 
                            operations.
Sec. 536. Repeal of limitation on authority to redesignate the Naval 
                            Reserve as the Navy Reserve.
Sec. 537. Performance by reserve component personnel of operational 
                            test and evaluation and training relating 
                            to new equipment.
            Subtitle D--Military Justice and Related Matters

Sec. 551. Modification of periods of prosecution by courts-martial for 
                            murder, rape, and child abuse.
Sec. 552. Establishment of offense of stalking.
Sec. 553. Clarification of authority of military legal assistance 
                            counsel.
Sec. 554. Administrative censures of members of the Armed Forces.
Sec. 555. Reports by officers and senior enlisted personnel of matters 
                            relating to violations or alleged 
                            violations of criminal law.
                 Subtitle E--Military Service Academies

Sec. 561. Authority to retain permanent military professors at the 
                            Naval Academy after more than 30 years of 
                            service.
                   Subtitle F--Administrative Matters

Sec. 571. Clarification of leave accrual for members assigned to a 
                            deployable ship or mobile unit or other 
                            duty.
Sec. 572. Limitation on conversion of military medical and dental 
                            billets to civilian positions.
            Subtitle G--Defense Dependents Education Matters

Sec. 581. Expansion of authorized enrollment in Department of Defense 
                            dependents schools overseas.
Sec. 582. Assistance to local educational agencies with significant 
                            enrollment increases in military dependent 
                            students due to troop relocations, creation 
                            of new units, and realignments under BRAC.
Sec. 583. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 584. Impact aid for children with severe disabilities.
                       Subtitle H--Other Matters

Sec. 591. Policy and procedures on casualty assistance to survivors of 
                            military decedents.
Sec. 592. Modification and enhancement of mission and authorities of 
                            the Naval Postgraduate School.
Sec. 593. Expansion and enhancement of authority to present recognition 
                            items for recruitment and retention 
                            purposes.
Sec. 594. Requirement for regulations on policies and procedures on 
                            personal commercial solicitations on 
                            Department of Defense installations.
Sec. 595. Federal assistance for State programs under the National 
                            Guard Youth Challenge Program.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Eligibility for additional pay of permanent military 
                            professors at the United States Naval 
                            Academy with over 36 years of service.
Sec. 602. Enhanced authority for agency contributions for members of 
                            the Armed Forces participating in the 
                            Thrift Savings Plan.
Sec. 603. Permanent authority for supplemental subsistence allowance 
                            for low-income members with dependents.
Sec. 604. Modification of pay considered as saved pay upon appointment 
                            of an enlisted member as an officer.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
                            authorities for Reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
                            authorities for certain health care 
                            professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
                            nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
                            authorities.
Sec. 615. Payment and repayment of assignment incentive pay.
Sec. 616. Increase in amount of selective reenlistment bonus for 
                            certain senior supervisory nuclear 
                            qualified enlisted personnel.
Sec. 617. Consolidation and modification of bonuses for affiliation or 
                            enlistment in the Selected Reserve.
Sec. 618. Expansion and enhancement of special pay for enlisted members 
                            of the Selected Reserve assigned to certain 
                            high priority units.
Sec. 619. Retention incentive bonus for members of the Selected Reserve 
                            qualified in a critical military skill or 
                            specialty.
Sec. 620. Termination of limitation on duration of payment of imminent 
                            danger special pay during hospitalization.
Sec. 621. Authority for retroactive payment of imminent danger special 
                            pay.
Sec. 622. Authority to pay foreign language proficiency pay to members 
                            on active duty as a bonus.
Sec. 623. Incentive bonus for transfer between the Armed Forces.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Transportation of family members in connection with the 
                            repatriation of servicemembers or civilian 
                            employees held captive.
             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Enhancement of death gratuity and life insurance benefits for 
                            deaths from combat-related causes or causes 
                            incurred in combat operations or areas.
                       Subtitle E--Other Matters

Sec. 651. Payment of expenses of members of the Armed Forces to obtain 
                            professional credentials.
Sec. 652. Pilot program on contributions to Thrift Savings Plan for 
                            initial enlistees in the Armed Forces.
                         TITLE VII--HEALTH CARE

                      Subtitle A--Benefits Matters

Sec. 701. Clarification of eligibility of reserve officers for health 
                            care pending active duty following issuance 
                            of orders to active duty.
Sec. 702. Limitation on deductible and copayment requirements for 
                            nursing home residents under the pharmacy 
                            benefits program.
Sec. 703. Eligibility of surviving active duty spouses of deceased 
                            members for enrollment as dependents in a 
                            TRICARE dental plan.
Sec. 704. Increased period of continued TRICARE Prime coverage of 
                            children of members of the uniformed 
                            services who die while serving on active 
                            duty for a period of more than 30 days.
           Subtitle B--Planning, Programming, and Management

Sec. 711. TRICARE Standard coordinators in TRICARE regional offices.
Sec. 712. Report on delivery of health care benefits through military 
                            health care system.
Sec. 713. Comptroller General report on differential payments to 
                            children's hospitals for health care for 
                            children dependents under TRICARE.
Sec. 714. Repeal of requirement for Comptroller General reviews of 
                            certain Department of Defense-Department of 
                            Veterans Affairs projects on sharing of 
                            health care resources.
Sec. 715. Surveys on TRICARE Standard.
Sec. 716. Modification of health care quality information and 
                            technology enhancement report requirements.
Sec. 717. Modification of authorities relating to patient care 
                            reporting and management system.
                       Subtitle C--Other Matters

Sec. 731. Report on adverse health events associated with use of anti-
                            malarial drugs.
Sec. 732. Pilot projects on early diagnosis and treatment of post 
                            traumatic stress disorder and other mental 
                            health conditions.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Internal controls for procurements on behalf of the 
                            Department of Defense.
Sec. 802. Contract Support Acquisition Centers.
Sec. 803. Authority to enter into acquisition and cross-servicing 
                            agreements with regional organizations of 
                            which the United States is not a member.
Sec. 804. Requirement for authorization for procurement of major weapon 
                            systems as commercial items.
Sec. 805. Report on service surcharges for purchases made for military 
                            departments through other Department of 
                            Defense agencies.
Sec. 806. Review of defense acquisition structures.
              Subtitle B--Defense Industrial Base Matters

Sec. 811. Clarification of exception from Buy American requirements for 
                            procurement of perishable food for 
                            establishments outside the United States.
Sec. 812. Conditional waiver of domestic source or content requirements 
                            for certain countries with reciprocal 
                            defense procurement agreements with the 
                            United States.
Sec. 813. Consistency with United States obligations under trade 
                            agreements.
Sec. 814. Identification of areas of research and development effort 
                            for purposes of Small Business Innovation 
                            Research program.
                 Subtitle C--Defense Contractor Matters

Sec. 821. Requirements for defense contractors relating to certain 
                            former Department of Defense officials.
Sec. 822. Review of certain contractor ethics matters.
Sec. 823. Contract fraud risk assessment.
           Subtitle D--Defense Acquisition Workforce Matters

Sec. 831. Availability of funds in Acquisition Workforce Training Fund 
                            for defense acquisition workforce 
                            improvements.
Sec. 832. Limitation and reinvestment authority relating to reduction 
                            of the defense acquisition and support 
                            workforce.
Sec. 833. Technical amendments relating to defense acquisition 
                            workforce improvements.
                       Subtitle E--Other Matters

Sec. 841. Extension of contract goal for small disadvantaged business 
                            and certain institutions of higher 
                            education.
Sec. 842. Codification and modification of limitation on modification 
                            of military equipment within five years of 
                            retirement or disposal.
Sec. 843. Clarification of rapid acquisition authority to respond to 
                            combat emergencies.
Sec. 844. Modification of authority to carry out certain prototype 
                            projects.
Sec. 845. Extension of certain authorities on contracting with 
                            employers of persons with disabilities.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Directors of Small Business Programs.
Sec. 902. Executive agent for acquisition of capabilities to defend the 
                            homeland against cruise missiles and other 
                            low-altitude aircraft.
                      Subtitle B--Space Activities

Sec. 911. Advisory committee on Department of Defense requirements for 
                            space control.
                       Subtitle C--Other Matters

Sec. 921. Acceptance of gifts and donations for Department of Defense 
                            regional centers for security studies.
Sec. 922. Operational files of the Defense Intelligence Agency.
Sec. 923. Prohibition on implementation of certain orders and guidance 
                            on functions and duties of the General 
                            Counsel and the Judge Advocate General of 
                            the Air Force.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of Classified Annex.
Sec. 1003. United States contribution to NATO common-funded budgets in 
                            fiscal year 2006.
Sec. 1004. Reduction in certain authorizations due to savings relating 
                            to lower inflation.
Sec. 1005. Authorization of supplemental appropriations for fiscal year 
                            2005.
Sec. 1006. Increase in fiscal year 2005 transfer authority.
Sec. 1007. Monthly disbursement to States of State income tax 
                            voluntarily withheld from retired or 
                            retainer pay.
Sec. 1008. Reestablishment of limitation on payment of facilities 
                            charges assessed by Department of State.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Transfer of battleship.
Sec. 1022. Conveyance of Navy drydock, Jacksonville, Florida.
                    Subtitle C--Counterdrug Matters

Sec. 1031. Use of unmanned aerial vehicles for United States border 
                            reconnaissance.
Sec. 1032. Use of counterdrug funds for certain counterterrorism 
                            operations.
Sec. 1033. Support for counter-drug activities through bases of 
                            operation and training facilities in 
                            Afghanistan.
                    Subtitle D--Reports and Studies

Sec. 1041. Modification of frequency of submittal of Joint Warfighting 
                            Science and Technology Plan.
Sec. 1042. Review and assessment of Defense Base Act insurance.
Sec. 1043. Comptroller General report on corrosion prevention and 
                            mitigation programs of the Department of 
                            Defense.
                    Subtitle E--Technical Amendments

Sec. 1051. Technical amendments relating to certain provisions of 
                            environmental defense laws.
                   Subtitle F--Military Mail Matters

Sec. 1061. Safe delivery of mail in the military mail system.
Sec. 1062. Delivery of mail addressed to any service member.
                       Subtitle G--Other Matters

Sec. 1071. Policy on role of military medical and behavioral science 
                            personnel in interrogation of detainees.
Sec. 1072. Clarification of authority to issue security regulations and 
                            orders under Internal Security Act of 1950.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Extension of authority for voluntary separations in 
                            reductions in force.
Sec. 1102. Compensatory time off for nonappropriated fund employees of 
                            the Department of Defense.
Sec. 1103. Extension of authority to pay severance payments in lump 
                            sums.
Sec. 1104. Continuation of Federal Employee Health Benefits Program 
                            eligibility.
Sec. 1105. Permanent and enhanced authority for Science, Mathematics, 
                            and Research for Transformation (SMART) 
                            defense education program.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Commanders' Emergency Response Program.
Sec. 1202. Enhancement and expansion of authority to provide 
                            humanitarian and civic assistance.
Sec. 1203. Modification of geographic limitation on payment of 
                            personnel expenses under bilateral or 
                            regional cooperation programs.
Sec. 1204. Payment of travel expenses of coalition liaison officers.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1302. Funding allocations.
Sec. 1303. Permanent waiver of restrictions on use of funds for threat 
                            reduction in states of the former Soviet 
                            Union.
Sec. 1304. Modification of authority to use Cooperative Threat 
                            Reduction funds outside the former Soviet 
                            Union.
Sec. 1305. Repeal of requirement for annual Comptroller General 
                            assessment of annual Department of Defense 
                            report on activities and assistance under 
                            Cooperative Threat Reduction programs.
  TITLE XIV--AUTHORIZATION FOR SUPPLEMENTAL APPROPRIATIONS FOR IRAQ, 
              AFGHANISTAN, AND THE GLOBAL WAR ON TERRORISM

Sec. 1401. Purpose.
Sec. 1402. Designation as emergency amounts.
Sec. 1403. Army procurement.
Sec. 1404. Navy and Marine Corps procurement.
Sec. 1405. Air Force procurement.
Sec. 1406. Operation and maintenance.
Sec. 1407. Defense Health Program.
Sec. 1408. Military personnel.
Sec. 1409. Iraq Freedom Fund.
Sec. 1410. Transfer authority.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for procurement for the Army as follows:
            (1) For aircraft, $2,800,880,000.
            (2) For missiles, $1,265,850,000.
            (3) For weapons and tracked combat vehicles, 
        $1,692,549,000.
            (4) For ammunition, $1,831,672,000.
            (5) For other procurement, $4,339,434,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2006 for procurement for the Navy as follows:
            (1) For aircraft, $9,946,926,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,749,441,000.
            (3) For shipbuilding and conversion, $9,057,865,000.
            (4) For other procurement, $5,596,218,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2006 for procurement for the Marine Corps in the amount 
of $1,386,705,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2006 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $892,849,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for procurement for the Air Force as follows:
            (1) For aircraft, $13,212,633,000.
            (2) For missiles, $5,500,287,000.
            (3) For ammunition, $1,031,207,000.
            (4) For other procurement, $14,027,889,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for Defense-wide procurement in the amount of $2,784,832,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR AH-64D APACHE ATTACK 
              HELICOPTER BLOCK II CONVERSIONS.

    Beginning with the fiscal year 2006 program year, the Secretary of 
the Army may, in accordance with section 2306b of title 10, United 
States Code, enter into one or more multiyear contracts for procurement 
of AH-64D Apache attack helicopter block II conversions.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MODERNIZED TARGET 
              ACQUISITION DESIGNATION/PILOT NIGHT VISION SENSORS FOR 
              AH-64D APACHE ATTACK HELICOPTERS.

    Beginning with the fiscal year 2006 program year, the Secretary of 
the Army may, in accordance with section 2306b of title 10, United 
States Code, enter into one or more multiyear contracts for procurement 
of modernized target acquisition designation/pilot night vision sensors 
for AH-64D Apache attack helicopters.

SEC. 113. MULTIYEAR PROCUREMENT AUTHORITY FOR UTILITY HELICOPTERS.

    (a) UH-60M Black Hawk Helicopters.--Beginning with the fiscal year 
2006 program year, the Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into one or more 
multiyear contracts for the procurement of UH-60M Black Hawk 
helicopters.
    (b) MH-60S Seahawk Helicopters.--Beginning with the fiscal year 
2007 program year, the Secretary of the Army, acting as executive agent 
for the Department of the Navy, may, in accordance with section 2306b 
of title 10, United States Code, enter into one or more multiyear 
contracts for the procurement of MH-60S Seahawk helicopters.

                       Subtitle C--Navy Programs

SEC. 121. PROHIBITION ON ACQUISITION OF NEXT GENERATION DESTROYER 
              (DD(X)) THROUGH A SINGLE NAVAL SHIPYARD.

    (a) Prohibition.--Destroyers under the next generation destroyer 
(DD(X)) program may not be acquired through a winner-take-all 
acquisition strategy.
    (b) Prohibition on Use of Funds.--No funds authorized to be 
appropriated by this Act, or any other Act, may be obligated or 
expended to prepare for, conduct, or implement a strategy for the 
acquisition of destroyers under the next generation destroyer program 
through a winner-take-all acquisition strategy.
    (c) Winner-Take-All Acquisition Strategy Defined.--In this section, 
the term ``winner-take-all acquisition strategy'', with respect to the 
acquisition of destroyers under the next generation destroyer program, 
means the acquisition (including design and construction) of such 
destroyers through a single shipyard.

SEC. 122. SPLIT FUNDING AUTHORIZATION FOR CVN-78 AIRCRAFT CARRIER.

    (a) Authority To Use Split Funding.--The Secretary of the Navy is 
authorized to fund the detail design and construction of the aircraft 
carrier designated CVN-78 using split funding in the Shipbuilding and 
Conversion, Navy account in fiscal years 2007, 2008, 2009, and 2010.
    (b) Condition for Out-Year Contract Payments.--A contract entered 
into for the detail design and construction of the aircraft carrier 
designated CVN-78 shall provide that any obligation of the United 
States to make a payment under the contract for a fiscal year after 
fiscal year 2006 is subject to the availability of appropriations for 
such fiscal year.

SEC. 123. LHA REPLACEMENT (LHA(R)) SHIP.

    (a) Amount Authorized From SCN Account for Fiscal Year  2006.--Of 
the amount authorized to be appropriated by section 102(a)(3) for 
fiscal year 2006 for shipbuilding and conversion, Navy, $325,447,000 
shall be available for design, advance procurement, and advance 
construction with respect to the LHA Replacement (LHA(R)) ship.
    (b) Amounts Authorized From SCN Account for Fiscal Years 2007 and 
2008.--Amounts authorized to be appropriated for fiscal years 2007 and 
2008 for shipbuilding and conversion, Navy, shall be available for 
construction with respect to the LHA Replacement ship.
    (c) Contract Authority.--
            (1) Design, advance procurement, and advance 
        construction.--The Secretary of the Navy may enter into a 
        contract during fiscal year 2006 for design, advance 
        procurement, and advance construction with respect to the LHA 
        Replacement ship.
            (2) Detail design and construction.--The Secretary may 
        enter into a contract during fiscal year 2007 for the detail 
        design and construction of the LHA Replacement ship.
    (d) Condition for Out-Year Contract Payments.--A contract entered 
into under subsection (c) shall provide that any obligation of the 
United States to make a payment under the contract for a fiscal year 
after fiscal year 2006 is subject to the availability of appropriations 
for that purpose for such fiscal year.

SEC. 124. REFUELING AND COMPLEX OVERHAUL OF THE U.S.S. CARL VINSON.

    (a) Amount Authorized From SCN Account.--Of the amount authorized 
to be appropriated by section 102(a)(3) for fiscal year 2006 for 
shipbuilding and conversion, Navy, $1,493,563,000 shall be available 
for the commencement of the nuclear refueling and complex overhaul of 
the U.S.S. Carl Vinson (CVN-70). The amount available under the 
preceding sentence is the first increment in the incremental funding 
planned for the nuclear refueling and complex overhaul of the U.S.S. 
Carl Vinson.
    (b) Contract Authority.--The Secretary of the Navy may enter into a 
contract during fiscal year 2006 for the nuclear refueling and complex 
overhaul of the U.S.S. Carl Vinson.
    (c) Condition for Out-Year Contract Payments.--A contract entered 
into under subsection (b) shall provide that any obligation of the 
United States to make a payment under the contract for a fiscal year 
after fiscal year 2006 is subject to the availability of appropriations 
for that purpose for such fiscal year.

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-17 AIRCRAFT.

    (a) Multiyear Procurement Authorized.--Beginning with the fiscal 
year 2006 program year, the Secretary of the Air Force may exercise the 
option on the existing multiyear procurement contract for C-17 aircraft 
in order to enter into a multiyear contract for the procurement of up 
to 42 additional C-17 aircraft. A contract entered into under this 
subsection shall be entered into in accordance with section 2306b of 
title 10, United States Code.
    (b) Required Certification.--Prior to the exercise of the authority 
in subsection (a), the Secretary of Defense shall certify to the 
congressional defense committees that the additional airlift capability 
to be provided by the C-17 aircraft to be procured under that authority 
is consistent with the results of the Mobility Capabilities Study to be 
completed in fiscal year 2005.

SEC. 132. PROHIBITION ON RETIREMENT OF KC-135E AIRCRAFT.

    The Secretary of the Air Force may not retire any KC-135E aircraft 
of the Air Force in fiscal year 2006.

SEC. 133. USE OF TANKER REPLACEMENT TRANSFER FUND FOR MODERNIZATION OF 
              AERIAL REFUELING TANKERS.

    In addition to providing funds for a tanker acquisition program as 
specified in section 8132 of the Department of Defense Appropriations 
Act, 2005 (Public Law 108-287; 118 Stat, 1001), funds in the Tanker 
Replacement Transfer Fund established by that section may be used for 
the modernization of existing aerial refueling tankers if the 
modernization of such tankers is consistent with the results of the 
analysis of alternatives for meeting the aerial refueling requirements 
of the Air Force as required by section 134(b) of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1413).

SEC. 134. PROHIBITION ON RETIREMENT OF F-117 AIRCRAFT.

    The Secretary of the Air Force may not retire any F-117 Nighthawk 
stealth attack aircraft of the Air Force in fiscal year 2006.

SEC. 135. PROHIBITION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT 
              AIRCRAFT.

    The Secretary of the Air Force may not retire any C-130E/H tactical 
airlift aircraft of the Air Force in fiscal year 2006.

SEC. 136. PROCUREMENT OF C-130J/KC-130J AIRCRAFT AFTER FISCAL YEAR 
              2005.

    Any C-130J/KC-130J aircraft procured after fiscal year 2005 
(including C-130J/KC-130J aircraft procured through a multiyear 
contract continuing in force from a fiscal year before fiscal year 
2006) shall be procured through a contract under part 15 of the Federal 
Acquisition Regulation (FAR), relating to acquisition of items by 
negotiated contract (48 C.F.R. 15.000 et seq.), rather than through a 
contract under part 12 of the Federal Acquisition Regulation, relating 
to acquisition of commercial items (48 C.F.R. 12.000 et seq.).

SEC. 137. AIRCRAFT FOR PERFORMANCE OF AEROMEDICAL EVACUATIONS.

    (a) Requirement To Procure.--The Secretary of the Air Force shall 
procure aircraft for the purpose of providing aeromedical evacuation 
services to severely injured or ill personnel.
    (b) Required Capabilities.--The aircraft procured under subsection 
(a) shall be capable of providing nonstop aeromedical evacuations 
across the Atlantic Ocean.
    (c) Equipping.--Any aircraft procured under subsection (a) shall be 
equipped with current aeromedical support facilities, including 
electrical systems, sanitation, temperature controls, pressurization 
capacity, safe medical storage, equipment and medicines for life 
support and emergency purposes, food preparation facilities, and such 
other facilities as the Secretary considers appropriate for the 
provision of aeromedical evacuation services.
    (d) Dedicated Mission.--Each aircraft procured and equipped under 
this section shall be assigned the dedicated mission of providing 
aeromedical evacuation services as described in subsection (a).
    (e) Availability of Funds.--Of the amounts authorized to be 
appropriated by section 103(1) for aircraft procurement for the Air 
Force, $200,000,000 shall be available for the procurement and 
equipping of up to two aircraft under this section.

                   Subtitle E--Defense-Wide Programs

SEC. 151. ADVANCED SEAL DELIVERY SYSTEM.

    (a) Limitation on Availability of Funds for Advance Procurement.--
No funds authorized to be appropriated by this Act for fiscal year 2006 
for advance procurement of components for the Advanced SEAL Delivery 
System may be obligated or expended for that purpose until 30 days 
after the date on which the Secretary of Defense certifies to the 
congressional defense committees that the Under Secretary of Defense 
for Acquisition, Technology, and Logistics has made a favorable 
milestone C decision regarding the Advanced SEAL Delivery System. The 
certification shall be submitted together with the comprehensive report 
on the Advanced SEAL Delivery System required by subsection (b).
    (b) Report.--As soon as possible after completion of the review of 
the Advanced SEAL Delivery System by the Defense Acquisition Board, the 
Secretary shall submit to the congressional defense committees a report 
that includes the following:
            (1) The result of the milestone C decision on the Advanced 
        SEAL Delivery System made by the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics.
            (2) Such recommendations as the Secretary considers 
        appropriate regarding the continuation, restructuring, or 
        termination of the Advanced SEAL Delivery System program, 
        including recommendations on adjustments to contractual 
        arrangements in connection with the continuation, 
        restructuring, or termination of the program.
            (3) A detailed summary of the revised cost estimate and 
        future cost estimates for the Advanced SEAL Delivery System 
        program, which cost estimates shall be validated for purposes 
        of the report by the Cost Analysis and Improvement Group within 
        the Office of the Secretary of Defense.
            (4) A detailed acquisition strategy for the Advanced SEAL 
        Delivery System, if the Secretary recommends the continuation 
        or restructuring of the Advanced SEAL Delivery System program 
        under paragraph (2).
            (5) A plan to demonstrate realistic strategies for solving 
        any technical and performance problems identified during the 
        final operational test and evaluation of the Advanced SEAL 
        Delivery System proposed to be conducted during the summer of 
        2005.
    (c) Comptroller General Review.--
            (1) In general.--In order to achieve the purposes set forth 
        in paragraph (2), the Comptroller General of the United States 
        shall--
                    (A) review the adequacy of the final operational 
                test and evaluation test plan for the Advanced SEAL 
                Delivery System;
                    (B) review the results of the operational test of 
                the Advanced SEAL Delivery System; and
                    (C) update the March 2003 Comptroller General 
                report entitled Defense Acquisition, Advanced SEAL 
                Delivery System Program Needs Increased Oversight (GAO-
                03-442).
            (2) Purposes.--The purposes of the review and update under 
        paragraph (1) are as follows:
                    (A) To examine the progress made toward meeting 
                operational requirements and technical challenges with 
                respect to the Advanced SEAL Delivery System.
                    (B) To assess the capacity of the Advanced SEAL 
                Delivery System program to meet schedule and cost 
                projections for that program.
                    (C) To identify and evaluation any remaining 
                factors that may contribute to potential future 
                problems for the Advanced SEAL Delivery System program.
            (3) Report.--The Comptroller General shall submit to the 
        congressional defense committees a report on the activities of 
        the Comptroller General under paragraph (1) not later than 
        February 1, 2006.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $9,716,824,000.
            (2) For the Navy, $18,398,091,000.
            (3) For the Air Force, $22,636,568,000.
            (4) For Defense-wide activities, $18,843,296,000, of which 
        $168,458,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

    (a) Amount for Projects.--Of the total amount authorized to be 
appropriated by section 201, $10,924,401,000 shall be available for 
science and technology projects.
    (b) Science and Technology Defined.--In this section, the term 
``science and technology project'' means work funded in program 
elements for defense research, development, test, and evaluation under 
Department of Defense budget activities 1, 2, or 3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. CONTRACT FOR THE PROCUREMENT OF THE FUTURE COMBAT SYSTEM 
              (FCS).

    The Secretary of the Army shall procure the Future Combat System 
(FCS) through a contract under part 15 of the Federal Acquisition 
Regulation (FAR), relating to acquisition of items by negotiated 
contract (48 C.F.R. 15.000 et seq.), rather than through a transaction 
under section 2371 of title 10, United States Code.

SEC. 212. JOINT FIELD EXPERIMENT ON STABILITY AND SUPPORT OPERATIONS.

    (a) Joint Field Experiment Required.--The Secretary of Defense 
shall, in fiscal year 2006, carry out a joint field experiment to 
address matters relating to stability and support operations.
    (b) Purposes.--The purposes of the joint field experiment under 
subsection (a) are as follows:
            (1) To explore critical challenges associated with the 
        planning and execution of military and support activities 
        required in the post-conflict environment following major 
        combat activities.
            (2) To facilitate the development of recommendations for 
        appropriate policy, doctrine, training infrastructure, and 
        organizational structures to best facilitate the conduct of 
        effective stability and support operations in such an 
        environment.
    (c) Participating Elements and Forces.--
            (1) In general.--The joint field experiment under 
        subsection (a) shall involve--
                    (A) elements of the Army, the Marine Corps, and the 
                Special Operations Command selected by the Secretary 
                for purposes of the field experiment;
                    (B) representatives of policy elements within the 
                Department selected by the Secretary for such purposes; 
                and
                    (C) any other forces or elements of the Department 
                that the Secretary considers appropriate for such 
                purposes.
            (2) Additional elements.--The Secretary shall also invite 
        the participation in the field experiment of appropriate 
        elements of other departments and agencies of the United States 
        Government, and of such elements and forces of coalition 
        nations, as the Secretary considers appropriate for purposes of 
        the field experiment.
    (d) Report.--Not later than January 31, 2007, the Secretary shall 
submit to the congressional defense committees a report on the joint 
field experiment under subsection (a). The report shall include--
            (1) a description of the field experiment;
            (2) the findings of the Secretary as a result of the field 
        experiment; and
            (3) such recommendations, including recommendations for 
        additional legislative or administrative actions and 
        recommendations on funding required to implement such actions, 
        as the Secretary considers appropriate in light of the field 
        experiment.

                  Subtitle C--Missile Defense Programs

SEC. 221. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
              BALLISTIC MISSILE DEFENSE PROGRAMS.

    (a) Extension.--Section 232(g) of the National Defense 
Authorization Act for Fiscal Year 2002 (10 U.S.C. 2431 note) is 
amended--
            (1) in paragraph (1), by striking ``through 2006'' and 
        inserting ``through 2007''; and
            (2) in paragraph (2), by striking ``through 2007'' and 
        inserting ``through 2008''.
    (b) Modification of Submittal Date.--Paragraph (2) of such section 
is further amended by striking ``February 15'' and inserting ``March 
15''.

SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    (a) Authority To Use Funds.--Funds referred to in subsection (b) 
may, upon approval by the Secretary of Defense, be used for the 
development and fielding of ballistic missile defense capabilities.
    (b) Covered Funds.--Funds referred to in this subsection are funds 
authorized to be appropriated for fiscal year 2006 or 2007 for 
research, development, test, and evaluation for the Missile Defense 
Agency.

SEC. 223. PLANS FOR TEST AND EVALUATION OF OPERATIONAL CAPABILITY OF 
              THE BALLISTIC MISSILE DEFENSE SYSTEM.

    (a) Plans Required.--
            (1) In general.--With respect to block 06, and each 
        subsequent block, of the Ballistic Missile Defense System, the 
        appropriate joint and service operational test and evaluation 
        components of the Department of Defense concerned with such 
        block shall, in coordination with the Missile Defense Agency 
        and subject to the review and approval of the Director of 
        Operational Test and Evaluation, prepare a plan to test, 
        evaluate, and characterize the operational capability of such 
        block.
            (2) Nature of plans.--Each plan prepared under this 
        subsection shall be appropriate for the level of technological 
        maturity of the block to be tested.
    (b) Reports on Test and Evaluation of Blocks.--At the conclusion of 
the test and evaluation of block 06, and of each subsequent block, of 
the Ballistic Missile Defense System, the Director of Operational Test 
and Evaluation shall submit to the Secretary of Defense, and to the 
congressional defense committees, a report providing--
            (1) the assessment of the Director as to whether or not 
        such test and evaluation was adequate to evaluate the 
        operational capability of such block; and
            (2) the characterization of the Director as to the 
        operational effectiveness, suitability, and survivability of 
        such block, as appropriate for the level of technological 
        maturity of the block to be tested.

Subtitle D--High-Performance Defense Manufacturing Technology Research 
                            and Development

SEC. 231. RESEARCH AND DEVELOPMENT.

    (a) Identification of Enhanced Processes and Technologies.--The 
Under Secretary of the Defense for Acquisition, Technology, and 
Logistics shall identify advanced manufacturing processes and 
technologies whose utilization will achieve significant productivity 
and efficiency gains in the defense manufacturing base.
    (b) Research and Development.--The Under Secretary shall undertake 
research and development on processes and technologies identified under 
subsection (a) that addresses, in particular--
            (1) innovative manufacturing processes and advanced 
        technologies; and
            (2) the creation of extended production enterprises using 
        information technology and new business models.
    (c) Defense Priorities.--In undertaking research and development 
under subsection (b), the Under Secretary shall consider defense 
priorities established in the most current Joint Warfighting Science 
and Technology Plan.

SEC. 232. TRANSITION OF TRANSFORMATIONAL MANUFACTURING PROCESSES AND 
              TECHNOLOGIES TO THE DEFENSE MANUFACTURING BASE.

    (a) Acceleration of Transition from Science and Technology.--
            (1) In general.--The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics shall undertake 
        appropriate actions to accelerate the transition of 
        transformational manufacturing technologies and processes 
        (including processes and technologies identified under section 
        231) from the research stage to utilization by manufacturers in 
        the defense manufacturing base.
            (2) Execution.--The actions undertaken under paragraph (1) 
        shall include a memorandum of understanding among the Director 
        of Defense Research and Engineering, other appropriate elements 
        of the Department of Defense, and the Joint Defense 
        Manufacturing Technology Panel to accelerate the transition of 
        technologies and processes as described in that paragraph.
    (b) Prototypes and Testbeds.--
            (1) In general.--The Under Secretary shall, utilizing the 
        Manufacturing Technology Program, undertake the development of 
        prototypes and testbeds to promote the purposes of this 
        section.
            (2) Coordination of activities.--The Under Secretary shall 
        coordinate activities under this subsection with activities 
        under the Small Business Innovation Research Program and the 
        Small Business Technology Transfer Program.
    (c) Development of Improvement Process.--The Under Secretary shall, 
in consultation with persons and organizations in the defense 
manufacturing base, develop and implement a program to continuously 
identify and utilize improvements and innovative processes in 
appropriate defense acquisition programs and by manufacturers in the 
defense manufacturing base.
    (d) Diffusion of Enhancements Into Defense Manufacturing Base.--The 
Under Secretary shall ensure the utilization in industry of 
enhancements in productivity and efficiency identified by reason of 
activities under this subtitle through the following:
            (1) Research and development activities under the 
        Manufacturing Technology Program, including the establishment 
        of public-private partnerships.
            (2) Outreach through the Manufacturing Extension 
        Partnership Program under memoranda of agreement, cooperative 
        programs, and other appropriate arrangements.
            (3) Coordination with activities under such other current 
        programs for the dissemination of manufacturing technology as 
        the Under Secretary considers appropriate.
            (4) Identification of incentives for contractors in the 
        defense manufacturing base to incorporate and utilize 
        manufacturing enhancements in the manufacturing activities.

SEC. 233. MANUFACTURING TECHNOLOGY STRATEGIES.

    (a) In General.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics may--
            (1) identify an area of technology where the development of 
        an industry-prepared roadmap for new manufacturing and 
        technology processes applicable to defense manufacturing 
        requirements would be beneficial to the Department of Defense; 
        and
            (2) establish a task force, and act in cooperation, with 
        the private sector to map the strategy for the development of 
        manufacturing processes and technologies needed to support 
        technology development in the area identified under paragraph 
        (1).
    (b) Commencement of Roadmapping.--The Under Secretary shall 
commence any roadmapping identified pursuant to subsection (a)(1) not 
later than January 2007.

SEC. 234. REPORT.

    (a) In General.--Not later than December 31, 2007, the Under 
Secretary of the Defense for Acquisition, Technology, and Logistics 
shall submit to the congressional defense committees a report on the 
actions undertaken by the Under Secretary under this subtitle during 
fiscal year 2006.
    (b) Elements.--The report under subsection (a) shall include--
            (1) a comprehensive description of the actions undertaken 
        under this subtitle during fiscal year 2006;
            (2) an assessment of effectiveness of such actions in 
        enhancing research and development on manufacturing 
        technologies and processes, and implementation of such within 
        the defense manufacturing base; and
            (3) such recommendations as the Under Secretary considers 
        appropriate for additional actions to be undertaken in order to 
        increase the effectiveness of the actions undertaken under this 
        subtitle in enhancing manufacturing activities within the 
        defense manufacturing base.

SEC. 235. DEFINITIONS.

    In this subtitle:
            (1) Defense manufacturing base.--The term ``defense 
        manufacturing base'' includes any supplier of the Department of 
        Defense, including a supplier of raw materials.
            (2) Extended production enterprise.--The term ``extended 
        production enterprise'' means a system in which key entities, 
        including entities engaged in product development, 
        manufacturing, sourcing, and user entities, in the 
        manufacturing chain are linked together through information 
        technology and other means to promote efficiency and 
        productivity.
            (3) Manufacturing extension partnership program.--The term 
        ``Manufacturing Extension Partnership Program'' means the 
        Manufacturing Extension Partnership Program of the Department 
        of Commerce.
            (4) Manufacturing technology program.--The term 
        ``Manufacturing Technology Program'' means the Manufacturing 
        Technology Program under the Director of Defense Research and 
        Engineering under section 2521 of title 10, United States Code.
            (5) Small business innovation research program.--The term 
        ``Small Business Innovation Research Program'' has the meaning 
        given that term in section 2055(11) of title 10, United States 
        Code.
            (6) Small business technology transfer program.--The term 
        ``Small Business Technology Transfer Program'' has the meaning 
        given that term in section 2500(12) of title 10, United States 
        Code.

                       Subtitle E--Other Matters

SEC. 241. EXPANSION OF ELIGIBILITY FOR LEADERSHIP OF DEPARTMENT OF 
              DEFENSE TEST RESOURCE MANAGEMENT CENTER.

    (a) Director of Center.--Paragraph (1) of section 196(b) of title 
10, United States Code, is amended by striking ``commissioned 
officers'' and all that follows through the end of the sentence and 
inserting ``individuals who have substantial experience in the field of 
test and evaluation.''.
    (b) Deputy Director of Center.--Paragraph (2) of such section is 
amended by striking ``senior civilian officers and employees of the 
Department of Defense'' and inserting ``individuals''.

SEC. 242. TECHNOLOGY TRANSITION.

    (a) Clarification of Duties of Technology Transition Council.--
Paragraph (2) of section 2359a(g) of title 10, United States Code, is 
amended to read as follows:
    ``(2) The duty of the Council shall be to support the 
Undersecretary of Defense for Acquisition, Technology, and Logistics in 
the development of policies to facilitate the rapid transition of 
technologies from science and technology programs of the Department of 
Defense into acquisition programs of the Department.''.
    (b) Report on Technology Transition.--
            (1) In general.--The Secretary of Defense, working through 
        the Technology Transition Council, shall submit to the 
        congressional defense committees a report on the challenges 
        associated with technology transition from the science and 
        technology programs of the Department of Defense to the 
        acquisition programs of the Department, and a strategy to 
        address such challenges, including--
                    (A) a description of any organizational barriers to 
                technology transition between operations, acquisition, 
                and technology development components of the 
                Department;
                    (B) an assessment of the effect of Department 
                acquisition regulations on technology transition;
                    (C) a description of the role of technology 
                transition in the planning, programming, and budgeting 
                processes of the Department;
                    (D) a description of any other challenges 
                associated with technology transition in the Department 
                that are identified by the Secretary;
                    (E) a Department-wide strategy for pursuing 
                technology transition; and
                    (F) such recommendations as the Secretary considers 
                appropriate for the improvement of technology 
                transition and for the elimination of internal barriers 
                within the Department to technology transition.
            (2) Submittal date.--The report under paragraph (1) shall 
        be submitted at the same time the budget of the President is 
        submitted to Congress pursuant to section 1105(a) of title 31, 
        United States Code, for fiscal year 2007.

SEC. 243. PREVENTION, MITIGATION, AND TREATMENT OF BLAST INJURIES.

    (a) Designation of Executive Agent.--The Secretary of Defense shall 
designate a senior official of the Department of Defense as the 
executive agent responsible for coordinating and managing the programs 
and efforts of the Department of Defense with respect to the 
prevention, mitigation, and treatment of blast injuries.
    (b) General Responsibility.--The executive agent designated under 
subsection (a) shall be responsible for ensuring that--
            (1) the programs and efforts of the Department of Defense 
        on the prevention, mitigation, and treatment of blast injuries 
        are adequate to meet requirements relating to the prevention, 
        mitigation, and treatment of such injuries; and
            (2) the resources devoted to such programs and efforts 
        facilitate the achievement of the objective specified in 
        paragraph (1).
    (c) Research Efforts.--The executive agent designated under 
subsection (a) shall--
            (1) review and assess the adequacy of current research 
        efforts of the Department of Defense on the prevention, 
        mitigation, and treatment of such injuries;
            (2) establish requirements for such research efforts in 
        order to enhance and accelerate such research efforts; and
            (3) establish, coordinate, and oversee Department-wide 
        research efforts on the prevention, mitigation, and treatment 
        of such injuries, including--
                    (A) in the case of blast injury prevention, 
                research on--
                            (i) blast characterization in a variety of 
                        environments;
                            (ii) modeling and simulation of safe blast 
                        stand-off distances;
                            (iii) detect and defeat capabilities; and
                            (iv) such other matters as such official 
                        considers appropriate;
                    (B) in the case of blast injury mitigation, 
                research on--
                            (i) armor design and materials testing for 
                        blast and ballistic protection;
                            (ii) the design of a comprehensive, 
                        integrated, flexible armor system which 
                        provides blast, ballistic, and fire protection 
                        for the head, neck, ears, eyes, torso, and 
                        extremities; and
                            (iii) such other matters as such official 
                        considers appropriate; and
                    (C) in the case of blast injury treatment, research 
                on emerging military medical technologies, 
                pharmacological agents, devices, and treatment and 
                rehabilitation techniques.
    (d) Studies.--The executive agent designated under subsection (a) 
shall conduct studies on the prevention, mitigation, and treatment of 
blast injuries, including--
            (1) studies to improve the clinical evaluation and 
        treatment of blast injuries, with an emphasis on traumatic 
        brain injuries and other consequences of blast injury, 
        including acoustic and eye injuries and injuries resulting from 
        over-pressure wave; and
            (2) studies to develop improved clinical protocols by which 
        physicians--
                    (A) can more accurately evaluate traumatic brain 
                injuries and discriminate between traumatic brain 
                injuries and post traumatic stress disorder (including 
                improved diagnostic and cognitive measures);
                    (B) can identify members of the Armed Forces who 
                may have both traumatic brain injury and post traumatic 
                stress disorder; and
                    (C) can develop integrated treatment approaches for 
                servicemembers who have both traumatic brain injuries 
                and post traumatic stress disorder and other multiple 
                injuries.
    (e) Pilot Projects.--The executive agent designated under 
subsection (a) shall commence in fiscal year 2006 not less than three 
pilot projects on the prevention, mitigation, and treatment of blast 
injuries, including pilot projects--
            (1) to study the incidence in returning soldiers of 
        traumatic brain injuries attributable to blast injuries;
            (2) to develop protocols for medical tracking of members of 
        the Armed Forces for up to five years following blast injuries; 
        and
            (3) to refine and improve educational interventions for 
        blast injury survivors and their families.
    (f) Training Program.--The executive agent designated under 
subsection (a) shall establish a training program for medical and non-
medical personnel on the prevention, mitigation, and treatment of blast 
injuries which program shall be intended to improve field and clinical 
training on early identification of blast injury consequences, both 
seen and unseen, including traumatic brain injuries, acoustic injuries, 
and internal injuries.
    (g) Treatment Program.--The executive agent designated under 
subsection (a) shall conduct a treatment program intended to enhance 
the evaluation and care of members of the Armed Forces with traumatic 
brain injuries in medical facilities in the United States and in 
deployed medical facilities.
    (h) Annual Reports on Blast Injury Matters.--
            (1) Reports Required.--Not later than February 15, 2006, 
        and annually thereafter through 2010, the Secretary of Defense 
        shall submit to the congressional defense committees a report 
        on the efforts of the Department of Defense to prevent, 
        mitigate, and treat blast injuries.
            (2) Elements.--Each report under paragraph (1) shall 
        include the following:
                    (A) A description of the activities undertaken 
                under this section during the year preceding the report 
                to improve the prevention, mitigation, and treatment of 
                blast injuries.
                    (B) A consolidated budget presentation for the 
                programs and activities of the Department of Defense 
                during the fiscal year beginning in the year of the 
                report for the prevention, mitigation, and treatment of 
                blast injuries.
                    (C) A description of any gaps in the capabilities 
                of the Department under its programs and activities for 
                the prevention, mitigation, and treatment of blast 
                injuries, and a description of any plans or projects to 
                address such gaps.
                    (D) A description of collaboration, if any, with 
                other departments and agencies of the Federal 
                Government, and with other countries, during the year 
                preceding the report in efforts for the prevention, 
                mitigation, and treatment of blast injuries.
                    (E) A description of any efforts during the year 
                preceding the report to disseminate findings on the 
                mitigation and treatment of blast injuries through 
                civilian and military research and medical communities.
                    (F) A description of the status of efforts during 
                the year preceding the report to design a comprehensive 
                force protection system that is effective in 
                confronting blast, ballistic, and fire threats.
    (i) Blast Injuries Defined.--In this section, the term ``blast 
injuries'' means injuries that occur as the result of the detonation of 
high explosives, including vehicle-borne and person-borne explosive 
devices, rocket-propelled grenades, and improvised explosive devices.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $24,951,460,000.
            (2) For the Navy, $30,547,489,000.
            (3) For the Marine Corps, $3,842,026,000.
            (4) For the Air Force, $31,425,919,000.
            (5) For Defense-wide activities, $18,584,469,000.
            (6) For the Army Reserve, $1,989,382,000.
            (7) For the Naval Reserve, $1,245,695,000.
            (8) For the Marine Corps Reserve, $199,934,000.
            (9) For the Air Force Reserve, $2,559,686,000.
            (10) For the Army National Guard, $4,528,019,000.
            (11) For the Air National Guard, $4,772,991,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,236,000.
            (13) For Environmental Restoration, Army, $407,865,000.
            (14) For Environmental Restoration, Navy, $305,275,000.
            (15) For Environmental Restoration, Air Force, 
        $406,461,000.
            (16) For Environmental Restoration, Defense-wide, 
        $28,167,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $261,921,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $61,546,000.
            (19) For Cooperative Threat Reduction programs, 
        $415,549,000.
            (20) For the Overseas Contingency Operations Transfer Fund, 
        $20,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,471,340,000.
            (2) For the National Defense Sealift Fund, $1,011,304,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2006 for 
expenses, not otherwise provided for, for the Defense Health Program, 
$19,900,812,000, of which--
            (1) $19,351,337,000 is for Operation and Maintenance;
            (2) $174,156,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $375,319,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--(1) Funds 
are hereby authorized to be appropriated for the Department of Defense 
for fiscal year 2006 for expenses, not otherwise provided for, for 
Chemical Agents and Munitions Destruction, Defense, $1,425,827,000, of 
which--
            (A) $1,241,514,000 is for Operation and Maintenance;
            (B) $67,786,000 is for Research, Development, Test, and 
        Evaluation; and
            (C) $116,527,000 is for Procurement.
    (2) Amounts authorized to be appropriated under paragraph (1) are 
authorized for--
            (A) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (B) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2006 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
$895,741,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2006 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, $209,687,000, of which--
            (1) $208,687,000 is for Operation and Maintenance; and
            (2) $1,000,000 is for Procurement.

                  Subtitle B--Environmental Provisions

SEC. 311. ELIMINATION AND SIMPLIFICATION OF CERTAIN ITEMS REQUIRED IN 
              THE ANNUAL REPORT ON ENVIRONMENTAL QUALITY PROGRAMS AND 
              OTHER ENVIRONMENTAL ACTIVITIES.

    Section 2706(b)(2) of title 10, United States Code, is amended--
            (1) by striking subparagraphs (D) and (E);
            (2) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) A summary of fines and penalties imposed or assessed 
        against the Department of Defense and the military departments 
        under Federal, State, or local environmental laws during the 
        fiscal year in which the report is submitted and the four 
        preceding fiscal years, which summary shall include--
                    ``(i) a trend analysis of such fines and penalties 
                for military installations inside and outside the 
                United States; and
                    ``(ii) a list of such fines or penalties that 
                exceeded $500,000 and the provisions of law under which 
                such fines or penalties were imposed or assessed.'';
            (3) by redesignating subparagraph (F) as subparagraph (E); 
        and
            (4) in subparagraph (E), as redesignated by paragraph (3), 
        by striking ``and amounts for conferences'' and all that 
        follows through ``such activities''.

SEC. 312. PAYMENT OF CERTAIN PRIVATE CLEANUP COSTS IN CONNECTION WITH 
              THE DEFENSE ENVIRONMENTAL RESTORATION PROGRAM.

    (a) Payment for Activities at Former Defense Property That is 
Subject to Covenant for Additional Remedial Action.--Subsection (d) of 
section 2701 of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``paragraph (3)'' and inserting 
                ``paragraphs (3) and (4)'';
                    (B) by inserting ``any owner of covenant 
                property,'' after ``tribe,'' the first place it 
                appears; and
                    (C) by inserting ``owner of covenant property,'' 
                after ``tribe,'' the second place it appears;
            (2) by redesignating paragraph (4) as paragraph (5);
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Performance of services on covenant property.--An 
        owner of covenant property may not be paid on a reimbursable or 
        other basis for services performed under an agreement under 
        paragraph (1) unless such services are performed on such 
        covenant property.''; and
            (4) in paragraph (5), as redesignated by paragraph (2), by 
        adding at the end the following new subparagraph:
                    ``(C) The term `owner of covenant property' means 
                an owner of property subject to a covenant provided by 
                the United States in accordance with section 
                120(h)(3)(A)(ii)(II) of CERCLA (42 U.S.C. 
                9620(h)(3)(A)(ii)(II)).''.
    (b) Applicable Cleanup Standards.--Paragraph (3) of such subsection 
is further amended--
            (1) by striking ``An agreement'' and inserting ``(A) An 
        agreement''; and
            (2) by inserting at the end the following new subparagraph:
            ``(B) An agreement under paragraph (1) may not change the 
        cleanup standards applicable to the site as established by 
        law.''.
    (c) Source of Funds for Former Base Closure and Realignment 
Property Subject to Covenant for Additional Remedial Action.--Section 
2703 of such title is amended--
            (1) in subsection (g)(1), by striking ``The sole source'' 
        and inserting ``Except as provided in subsection (h), the sole 
        source''; and
            (2) by adding at the end the following new subsection:
    ``(h) Sole Source of Funds for Certain Environmental Remediation at 
Base Realignment and Closure Sites.--In the case of property disposed 
of pursuant to a base closure law and subject to a covenant described 
in subsection (d)(5)(C) of section 2701 of this title, the sole source 
of funds for services under subsection (d)(1) of such section shall be 
the base closure account established under the base closure law under 
which such property was disposed of.''.

                       Subtitle C--Other Matters

SEC. 321. AIRCRAFT CARRIERS.

    (a) Funding for Repair and Maintenance of U.S.S. John F. Kennedy.--
Of the amounts authorized to be appropriated for operation and 
maintenance for the Navy by this Act and any other Act for fiscal year 
2005 and 2006, $288,000,000 shall be available only for repair and 
maintenance to extend the life of U.S.S. John F. Kennedy.
    (b) Limitation on Reduction in Number of Active Aircraft 
Carriers.--
            (1) Limitation.--The Secretary of the Navy may not reduce 
        the number of active aircraft carriers of the Navy below 12 
        active aircraft carriers until the later of the following:
                    (A) The date that is 180 days after the date of the 
                submittal to Congress of the quadrennial defense review 
                required in 2005 under section 118 of title 10, United 
                States Code.
                    (B) The date on which the Secretary of Defense, in 
                consultation with the Chairman of the Joint Chiefs of 
                Staff, certifies to the congressional defense 
                committees that such agreements have been entered into 
                to provide port facilities for the permanent forward 
                deployment of such number of aircraft carriers as is 
                necessary in the Pacific Command Area of Responsibility 
                to fulfill the roles and missions of that Command, 
                including agreements for the forward deployment of a 
                nuclear aircraft carrier after the retirement of the 
                current two conventional aircraft carriers.
            (2) Active aircraft carriers.--For purposes of this 
        subsection, an active aircraft carrier of the Navy includes an 
        aircraft carrier that is temporarily unavailable for worldwide 
        deployment due to routine or scheduled maintenance.

SEC. 322. LIMITATION ON TRANSITION OF FUNDING FOR EAST COAST SHIPYARDS 
              FROM FUNDING THROUGH NAVY WORKING CAPITAL FUND TO DIRECT 
              FUNDING.

    (a) Limitation.--The Secretary of the Navy may not convert funding 
for the shipyards of the Navy on the Eastern Coast of the United States 
from funding through the working capital fund of the Navy to funding on 
a direct basis (also known as ``mission funding'') until the later of--
            (1) the date that is six months after the date on which the 
        Secretary submits to the congressional defense committees the 
        report required by subsection (b); or
            (2) October 1, 2006.
    (b) Report on Direct Funding for Puget Sound Naval Shipyard.--The 
Secretary shall submit to the congressional defense committees a report 
that contains the assessment of the Secretary on the effects on Puget 
Sound Naval Shipyard, Washington, of the conversion of funding for 
Puget Sound Naval Shipyard from funding through the working capital 
fund of the Navy to funding on a direct basis.

SEC. 323. USE OF FUNDS FROM NATIONAL DEFENSE SEALIFT FUND TO EXERCISE 
              PURCHASE OPTIONS ON MARITIME PREPOSITIONING SHIP VESSELS.

    (a) Use of Funds.--Notwithstanding the provisions of section 
2218(f)(1) of title 10, United States Code, the Secretary of Defense 
may obligate and expend any funds in the National Defense Sealift Fund 
to exercise options to purchase three Maritime Prepositioning Ship 
(MPS) vessels under charter to the Navy as of the date of the enactment 
of this Act, the contracts for which charters expire in 2009.
    (b) National Defense Sealift Fund Defined.--In this section, the 
term ``National Defense Sealift Fund'' means the National Defense 
Sealift Fund established by section 2218 of title 10, United States 
Code.

SEC. 324. PURCHASE AND DESTRUCTION OF WEAPONS OVERSEAS.

    (a) Authority To Use Funds.--
            (1) In general.--Subchapter I of chapter 134 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 2249d. Use of appropriated funds for purchase and destruction of 
              weapons overseas
    ``(a) Purchase of Weapons.--Amounts appropriated or otherwise 
available to the Department of Defense for operation and maintenance 
may be used to purchase weapons overseas from any person, foreign 
government, international organization, or other entity for the purpose 
of protecting United States forces engaged in military operations 
overseas.
    ``(b) Destruction of Weapons.--Weapons purchased under the 
authority in subsection (a) may be destroyed.
    ``(c) Notice to Congress.--The Secretary of Defense shall promptly 
notify the congressional defense committees of any use of the authority 
in subsection (a) to purchase weapons.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such subchapter is amended by adding at the end 
        the following new item:

``2249d. Use of appropriated funds for purchase and destruction of 
                            weapons overseas.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005, and shall apply with respect to funds 
appropriated or otherwise made available for fiscal years after fiscal 
year 2005.

SEC. 325. INCREASE IN MAXIMUM CONTRACT AMOUNT FOR PROCUREMENT OF 
              SUPPLIES AND SERVICES FROM EXCHANGE STORES OUTSIDE THE 
              UNITED STATES.

    Section 2424(b)(1) of title 10, United States Code, is amended by 
striking ``$50,000'' and inserting ``$100,000''.

SEC. 326. EXTENSION OF AUTHORITY TO PROVIDE LOGISTICS SUPPORT AND 
              SERVICES FOR WEAPON SYSTEMS CONTRACTORS.

    Section 365(g)(1) of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2520; 10 U.S.C. 
2302 note) is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2010''.

SEC. 327. ARMY TRAINING STRATEGY.

    (a) Training Strategy.--
            (1) Strategy required.--The Secretary of the Army shall 
        develop and implement a training strategy to ensure the 
        readiness of brigade-based combat teams and functional 
        supporting brigades.
            (2) Elements.--The training strategy shall include the 
        following:
                    (A) A statement of the purpose of training for 
                brigade-based combat teams and supporting brigades.
                    (B) Performance goals for both active and reserve 
                brigade-based combat teams and supporting brigades, 
                including goals for live, virtual, and constructive 
                training for each component and brigade type.
                    (C) Metrics to quantify performance against the 
                performance goals specified under subparagraph (B).
                    (D) A process to report the accomplishment of 
                collective training by which Army leadership can 
                monitor the training performance of brigade-based 
                combat teams and functional supporting brigades.
                    (E) A model to quantify, and to forecast, operation 
                and maintenance funding required to attain training 
                goals.
    (b) Report.--
            (1) Report required.--Not later than one year after the 
        date of the enactment of this Act, the Secretary of the Army 
        shall submit to the congressional defense committees a report 
        on the requirements to be fulfilled in order to implement the 
        training strategy developed under subsection (a).
            (2) Elements.--The report shall include the following:
                    (A) A discussion of the training strategy developed 
                under subsection (a), including a description of 
                performance goals and metrics developed under that 
                subsection.
                    (B) A discussion and description of the training 
                range requirements necessary to implement the training 
                strategy.
                    (C) A discussion and description of the training 
                aids, devices, simulations and simulators necessary to 
                implement the training strategy.
                    (D) A list of the funding requirements, itemized by 
                fiscal year and specified in a format consistent with 
                the future-years defense program to accompany the 
                budget of the President for fiscal year 2007 under 
                section 221 of title 10, United States Code, necessary 
                to fulfill the range requirements described in 
                subparagraph (B) and to provide the training aids, 
                devices, simulations, and simulators described in 
                subparagraphs (C).
                    (E) A schedule for the implementation of the 
                training strategy.
                    (F) A discussion of the challenges that the Army 
                anticipates in the implementation of the training 
                strategy.
    (c) Comptroller General Review of Implementation.--
            (1) In general.--The Comptroller General of the United 
        States shall monitor the implementation of the training 
        strategy developed under subsection (a).
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Comptroller General shall submit to 
        the congressional defense committees a report containing the 
        assessment of the Comptroller General of the current progress 
        of the Army in implementing the training strategy.

SEC. 328. LIMITATION ON FINANCIAL MANAGEMENT IMPROVEMENT AND AUDIT 
              INITIATIVES WITHIN THE DEPARTMENT OF DEFENSE.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2006 may not be obligated or expended for the purposes 
of financial management improvement activities relating to the 
preparation, processing, or auditing of financial statements until the 
Secretary of Defense prepares and submits to the congressional defense 
committees the following:
            (1) A comprehensive and integrated financial management 
        improvement plan that--
                    (A) describes specific actions to be taken to 
                correct financial management deficiencies that impair 
                the ability of the Department of Defense to prepare 
                timely, reliable, and complete financial management 
                information; and
                    (B) systematically ties such actions to process and 
                control improvements and business systems modernization 
                efforts described in the business enterprise 
                architecture and transition plan required by section 
                2222 of title 10, United States Code.
            (2) A written determination that each of the financial 
        management improvement activities to be undertaken are--
                    (A) consistent with the financial management 
                improvement plan submitted pursuant to paragraph (1); 
                and
                    (B) likely to improve internal controls or 
                otherwise result in sustained improvements in the 
                ability of the Department to produce timely, reliable, 
                and complete financial management information.

SEC. 329. STUDY ON USE OF ETHANOL FUEL.

    (a) In General.--The Secretary of Defense shall conduct a study on 
the use of ethanol fuel by the Armed Forces and the Defense Agencies.
    (b) Elements.--The study shall include--
            (1) an evaluation of the historical utilization of ethanol 
        fuel by the Armed Forces and the Defense Agencies, including 
        the quantity of ethanol fuel acquired by the Department of 
        Defense for the Armed Forces and the Defense Agencies during 
        the 5-year period ending on the date of the report under 
        subsection (c);
            (2) a forecast of the requirements of the Armed Forces and 
        the Defense Agencies for ethanol fuel for each of fiscal years 
        2007 through 2012;
            (3) an assessment of the current and future commercial 
        availability of ethanol fuel, including facilities for the 
        production, storage, transportation, distribution, and 
        commercial sale of such fuel;
            (4) an assessment of the utilization by the Department of 
        the commercial infrastructure for ethanol fuel as described in 
        paragraph (3);
            (5) a review of the actions of the Department to coordinate 
        with State, local, and private entities to support the 
        expansion and use of alternative fuel refueling stations that 
        are accessible to the public; and
            (6) an assessment of the fueling infrastructure on military 
        installations in the United States, including storage and 
        distribution facilities, that could be adapted or converted to 
        the delivery of ethanol fuel, including--
                    (A) an assessment of cost of the adaptation or 
                conversion of such infrastructure to the delivery of 
                ethanol fuel; and
                    (B) an assessment of the feasibility and 
                advisability of that adaptation or conversion.
    (c) Report.--Not later than February 1, 2006, the Secretary shall 
submit to the congressional defense committees a report on the study 
conducted under subsection (a).
    (d) Ethanol Fuel Defined.--In this section, the term ``ethanol 
fuel'' means fuel that is 85 percent ethyl alcohol.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2006, as follows:
            (1) The Army, 522,400.
            (2) The Navy, 352,700.
            (3) The Marine Corps, 178,000.
            (4) The Air Force, 357,400.

SEC. 402. REVISION OF PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
              LEVELS.

    (a) Revision.--Section 691(b) of title 10, United States Code, is 
amended by striking paragraphs (1) through (4) and inserting the 
following:
            ``(1) For the Army, 522,400.
            ``(2) For the Navy, 352,700.
            ``(3) For the Marine Corps, 178,000.
            ``(4) For the Air Force, 357,400.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2005, and shall apply with respect to fiscal 
years beginning on or after that date.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2006, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 73,100.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 106,800.
            (6) The Air Force Reserve, 74,000.
            (7) The Coast Guard Reserve, 10,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year; and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2006, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 27,396.
            (2) The Army Reserve, 15,270.
            (3) The Naval Reserve, 13,392.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 13,123.
            (6) The Air Force Reserve, 2,290.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2006 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 7,649.
            (2) For the Army National Guard of the United States, 
        25,563.
            (3) For the Air Force Reserve, 9,852
            (4) For the Air National Guard of the United States, 
        22,971.

SEC. 414. FISCAL YEAR 2006 LIMITATIONS ON NON-DUAL STATUS TECHNICIANS.

    (a) Limitations.--(1) Within the limitation provided in section 
10217(c)(2) of title 10, United States Code, the number of non-dual 
status technicians employed by the National Guard as of September 30, 
2006, may not exceed the following:
            (A) For the Army National Guard of the United States, 
        1,600.
            (B) For the Air National Guard of the United States, 350.
    (2) The number of non-dual status technicians employed by the Army 
Reserve as of September 30, 2006, may not exceed 695.
    (3) The number of non-dual status technicians employed by the Air 
Force Reserve as of September 30, 2006, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given the term in 
section 10217(a) of title 10, United States Code.

              Subtitle C--Authorizations of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2006 a total of 
$109,179,601,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2006.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2006 
from the Armed Forces Retirement Home Trust Fund the sum of $58,281,000 
for the operation of the Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. EXCLUSION OF GENERAL AND FLAG OFFICERS ON LEAVE PENDING 
              SEPARATION OR RETIREMENT FROM COMPUTATION OF ACTIVE DUTY 
              OFFICERS FOR GENERAL AND FLAG OFFICER DISTRIBUTION AND 
              STRENGTH LIMITATIONS.

    (a) Distribution Limitations.--Section 525 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(e) In determining the total number of general officers or flag 
officers of an armed force on active duty for purposes of this section, 
an officer of that armed force in the grade of brigadier general or 
above, or an officer in the grade of rear admiral (lower half) or above 
in the Navy, who is on leave pending the separation, retirement, or 
release of such officer from active duty shall not be counted, but only 
during the 60-day period beginning on the date of the commencement of 
leave of such officer.''.
    (b) Active Duty Strength Limitations.--
            (1) In general.--Section 526 of such title is amended by 
        adding at the end the following new subsection:
    ``(e) Exclusion of Certain Officers on Leave Pending Separation or 
Retirement.--The limitations of this section do not apply to general or 
flag officers on leave pending separation, retirement, or release from 
active duty as described in section 525(e) of this title.''.
            (2) Conforming amendment.--The heading of subsection (d) of 
        such section is amended by striking ``Certain Officers'' and 
        inserting ``Certain Reserve Officers on Active Duty''.

SEC. 502. EXPANSION OF JOINT DUTY ASSIGNMENTS FOR RESERVE COMPONENT 
              GENERAL AND FLAG OFFICERS.

    (a) Increase in Authorized Number.--Section 526(b)(2)(A) of title 
10, United States Code, is amended by striking ``10'' and inserting 
``11''.
    (b) Assignment to Joint Staff.--Such section is further amended by 
inserting ``, and on the Joint Staff,'' after ``commands''.

SEC. 503. DEADLINE FOR RECEIPT BY PROMOTION SELECTION BOARDS OF 
              CORRESPONDENCE FROM ELIGIBLE OFFICERS.

    (a) Officers on Active Duty List.--Section 614(b) of title 10, 
United States Code, is amended by inserting ``the date before'' after 
``not later than''.
    (b) Officers on Reserve Active-Status List.--Section 14106 of such 
title is amended by inserting ``the date before'' after ``not later 
than''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on March 1, 2006, and shall apply with respect to selection 
boards convened on or after that date.

SEC. 504. FURNISHING TO PROMOTION SELECTION BOARDS OF ADVERSE 
              INFORMATION ON OFFICERS ELIGIBLE FOR PROMOTION TO CERTAIN 
              SENIOR GRADES.

    (a) Officers on Active-Duty List.--
            (1) In general.--Section 615(a) of title 10, United States 
        Code, is amended--
                    (A) by redesignating paragraphs (3), (4), (5), and 
                (6) as paragraphs (4), (5), (6), and (7), respectively; 
                and
                    (B) by inserting after paragraph (2) the following 
                new paragraph (3):
    ``(3) In the case of an eligible officer considered for promotion 
to the grade of lieutenant colonel, or commander in the case of the 
Navy, or above, any information of an adverse nature, including any 
substantiated adverse finding or conclusion from an officially 
documented investigation or inquiry, shall be furnished to the 
selection board in accordance with standards and procedures set out in 
the regulations prescribed by the Secretary of Defense pursuant to 
paragraph (1).''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in paragraph (4), as redesignated by paragraph 
                (1)(A) of this subsection, by striking ``paragraph 
                (2)'' and inserting ``paragraphs (2) and (3)'';
                    (B) in paragraph (5), as so redesignated, by 
                striking ``and (3)'' and inserting ``, (3), and (4)'';
                    (C) in paragraph (6), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``, or in paragraph (3),'' 
                        after ``paragraph (2)''; and
                            (ii) in subparagraph (B), by inserting ``or 
                        (3), as applicable'' after ``paragraph (2)''; 
                        and
                    (D) in subparagraph (A) of paragraph (7), as so 
                redesignated, by inserting ``or (3)'' after ``paragraph 
                (2)(B)''.
    (b) Reserve Officers.--
            (1) In general.--Section 14107(a) of title 10, United 
        States Code, is amended--
                    (A) by redesignating paragraphs (3), (4), (5), and 
                (6) as paragraphs (4), (5), (6), and (7), respectively; 
                and
                    (B) by inserting after paragraph (2) the following 
                new paragraph (3):
    ``(3) In the case of an eligible officer considered for promotion 
to the grade of lieutenant colonel, or commander in the case of the 
Navy, or above, any information of an adverse nature, including any 
substantiated adverse finding or conclusion from an officially 
documented investigation or inquiry, shall be furnished to the 
selection board in accordance with standards and procedures set out in 
the regulations prescribed by the Secretary of Defense pursuant to 
paragraph (1).''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in paragraph (4), as redesignated by paragraph 
                (1)(A) of this subsection, by striking ``paragraph 
                (2)'' and inserting ``paragraphs (2) and (3)'';
                    (B) in paragraph (5), as so redesignated, by 
                striking ``and (3)'' and inserting ``, (3), and (4)'';
                    (C) in paragraph (6), as so redesignated--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``, or in paragraph (3),'' 
                        after ``paragraph (2)''; and
                            (ii) in subparagraph (B), by inserting ``or 
                        (3), as applicable'' after ``paragraph (2)''; 
                        and
                    (D) in subparagraph (A) of paragraph (7), as so 
                redesignated, by inserting ``or (3)'' after ``paragraph 
                (2)(B)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2006, and shall apply with respect to promotion 
selection boards convened on or after that date.

SEC. 505. GRADES OF THE JUDGE ADVOCATES GENERAL.

    (a) Judge Advocate General of the Army.--Section 3037(a) of title 
10, United States Code, is amended by striking the last sentence and 
inserting the following new sentence: ``The Judge Advocate General, 
while so serving, has the grade of lieutenant general.''.
    (b) Judge Advocate General of the Navy.--Section 5148(b) of such 
title is amended by striking the last sentence and inserting the 
following new sentence: ``The Judge Advocate General, while so serving, 
has the grade of vice admiral or lieutenant general, as appropriate.''.
    (c) Judge Advocate General of the Air Force.--Section 8037(a) of 
such title is amended by striking the last sentence and inserting the 
following new sentence: ``The Judge Advocate General, while so serving, 
has the grade of lieutenant general.''.
    (d) Exclusion From Limitation on General and Flag Officer 
Distribution.--Section 525(b) of such title is amended by adding at the 
end the following new paragraph:
    ``(9) An officer while serving as the Judge Advocate General of the 
Army, the Judge Advocate General of the Navy, or the Judge Advocate 
General of the Air Force is in addition to the number that would 
otherwise be permitted for that officer's armed force for officers 
serving on active duty in grades above major general or rear admiral 
under paragraph (1) or (2), as the case may be.''.

SEC. 506. TEMPORARY EXTENSION OF AUTHORITY TO REDUCE MINIMUM LENGTH OF 
              COMMISSIONED SERVICE FOR VOLUNTARY RETIREMENT AS AN 
              OFFICER.

    (a) Army.--Section 3911(b) of title 10, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) in paragraph (1), as so designated, by striking ``, 
        during the period beginning on October 1, 1990, and ending on 
        December 31, 2001,''; and
            (3) by adding at the end the following new paragraph:
    ``(2) The authority in paragraph (1) may be exercised during the 
period beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2006 and ending on December 31, 
2008.''.
    (b) Navy and Marine Corps.--Section 6323(a)(2) of such title is 
amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) in subparagraph (A), as so designated, by striking ``, 
        during the period beginning on October 1, 1990, and ending on 
        December 31, 2001,''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) The authority in subparagraph (A) may be exercised during the 
period beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2006 and ending on December 31, 
2008.''.
    (c) Air Force.--Section 8911(b) of such title is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) in paragraph (1), as so designated, by striking ``, 
        during the period beginning on October 1, 1990, and ending on 
        December 31, 2001,''; and
            (3) by adding at the end the following new paragraph:
    ``(2) The authority in paragraph (1) may be exercised during the 
period beginning on the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2006 and ending on December 31, 
2008.''.

SEC. 507. MODIFICATION OF STRENGTH IN GRADE LIMITATIONS APPLICABLE TO 
              RESERVE FLAG OFFICERS IN ACTIVE STATUS.

    (a) Line Officers.--Paragraph (1) of section 12004(c) of title 10, 
United States Code, is amended in the item in the table relating to 
Line officers by striking ``28'' and inserting ``33''.
    (b) Medical Department Staff Corps Officers.--Such paragraph is 
further amended in the item in the table relating to the Medical 
Department staff corps officers by striking ``9'' and inserting ``5''.
    (c) Supply Corps Officers.--Paragraph (2)(A) of such section is 
amended by striking ``seven'' and inserting ``six''.
    (d) Conforming Amendment.--Paragraph (1) of such section is further 
amended in the matter preceding the table by striking ``39'' and 
inserting ``40''.

SEC. 508. UNIFORM AUTHORITY FOR DEFERMENT OF SEPARATION OF RESERVE 
              GENERAL AND FLAG OFFICERS FOR AGE.

    (a) In General.--Section 14512 of title 10, United States Code, is 
amended to read as follows:
``Sec. 14512. Separation at age 64
    ``(a) In General.--The Secretary of the military department 
concerned may, subject to subsection (b), defer the retirement under 
section 14510 or 14511 of this title of a reserve officer of the Army, 
Air Force, or Marine Corps in a grade above colonel, or a reserve 
officer of the Navy in a grade above captain, and retain such officer 
in active status until such officer becomes 64 years of age.
    ``(b) Limitation on Number of Deferments.--(1) Not more than 10 
officers may be deferred by the Secretary of a military department 
under subsection (a) at any one time.
    ``(2) Deferments by the Secretary of the Navy may be distributed 
between the Naval Reserve and the Marine Corps Reserve as the Secretary 
determines appropriate.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1407 of such title is amended by striking the item relating to 
section 14512 and inserting the following new item:

``14512. Separation at age 64.''.

                 Subtitle B--Enlisted Personnel Policy

SEC. 521. UNIFORM CITIZENSHIP OR RESIDENCY REQUIREMENTS FOR ENLISTMENT 
              IN THE ARMED FORCES.

    (a) Uniform Requirements.--Section 504 of title 10, United States 
Code, is amended--
            (1) by inserting ``(a) Insanity, Desertion, Felons, Etc..--
        '' before ``No person''; and
            (2) by adding at the end the following new subsection:
    ``(b) Citizenship or Residency.--(1) No person may be enlisted in 
any armed force unless such person is a citizen or national of the 
United States, a habitual resident of the Federal States of Micronesia, 
the Republic of Palau, or the Republic of the Marshall Islands, or has 
been lawfully admitted to the United States for permanent residence 
under the applicable provisions of the Immigration and Nationality Act 
(8 U.S.C. 1101 et seq.).
    ``(2) The Secretary concerned may waive the applicability of 
paragraph (1) to a person if such Secretary determines that the 
enlistment of such person is vital to the national interest.''.
    (b) Repeal of Superseded Limitations for the Army and Air Force.--
Sections 3253 and 8253 of such title are repealed.
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 333 
        of such title is amended by striking the item relating to 
        section 3253.
            (2) The table of sections at the beginning of chapter 833 
        of such title is amended by striking the item relating to 
        section 8253.

            Subtitle C--Reserve Component Personnel Matters

SEC. 531. REQUIREMENTS FOR PHYSICAL EXAMINATIONS AND MEDICAL AND DENTAL 
              READINESS FOR MEMBERS OF THE SELECTED RESERVE NOT ON 
              ACTIVE DUTY.

    (a) In General.--Subsection (a) of section 10206 of title 10, 
United States Code, is amended--
            (1) in paragraph (1), by striking ``examined'' and all that 
        follows through the semicolon and inserting ``provided a 
        comprehensive physical examination on an annual basis;''; and
            (2) in paragraph (2), by striking ``annually to the 
        Secretary concerned'' and all that follows and inserting ``to 
        the Secretary concerned on an annual basis documentation of the 
        medical and dental readiness of the member to perform military 
        duties.''.
    (b) Conforming Amendment.--The heading of such section is amended 
by striking ``periodic''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 1007 of such title is amended by striking ``periodic''.

SEC. 532. REPEAL OF LIMITATION ON AMOUNT OF FINANCIAL ASSISTANCE UNDER 
              RESERVE OFFICERS' TRAINING CORPS SCHOLARSHIP PROGRAM.

    (a) In General.--Section 2107(c) of title 10, United States Code, 
is amended--
            (1) by striking paragraph (4);
            (2) by redesignating paragraph (5) as paragraph (4); and
            (3) in subparagraph (B) of paragraph (4), as so 
        redesignated, by striking ``, (3), or (4)'' and inserting ``or 
        (3)''.
    (b) Army Reserve and Army National Guard Members.--Section 2107a(c) 
of such title is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraph (4) as paragraph (3).
    (c) Conforming Amendment.--Section 524(c) of the Ronald W. Reagan 
National Defense Authorization Act for Fiscal Year 2005 (Public Law 
108-375; 118 Stat. 1889) is amended by striking ``paragraph (5)'' and 
all that follows through ``subsection (b)'' and inserting ``paragraph 
(4) of section 2107(c) of title 10, United States Code (as added by 
subsection (a) of this section and redesignated by section 532(a)(2) of 
the National Defense Authorization Act for Fiscal Year 2006), and under 
paragraph (3) of section 2107a(c) of title 10, United States Code (as 
added by subsection (b) of this section and redesignated by section 
532(b)(2) of such Act)''.

SEC. 533. PROCEDURES FOR SUSPENDING FINANCIAL ASSISTANCE AND 
              SUBSISTENCE ALLOWANCE FOR SENIOR ROTC CADETS AND 
              MIDSHIPMEN ON THE BASIS OF HEALTH-RELATED CONDITIONS.

    (a) Requirements.--Section 2107 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(j)(1) Payment of financial assistance under this section for, 
and payment of a monthly subsistence allowance under section 209 of 
title 37 to, a cadet or midshipman appointed under this section may be 
suspended on the basis of health-related incapacity of the cadet or 
midshipman only in accordance with regulations prescribed under 
paragraph (2).
    ``(2) The Secretary of Defense shall prescribe in regulations the 
policies and procedures for suspending payments under paragraph (1). 
The regulations shall apply uniformly to all of the military 
departments. The regulations shall include the following matters:
            ``(A) The standards of health-related fitness that are to 
        be applied.
            ``(B) Requirements for--
                    ``(i) the health-related condition and prognosis of 
                a cadet or midshipman to be determined, in relation to 
                the applicable standards prescribed under subparagraph 
                (A), by a health care professional on the basis of a 
                medical examination of the cadet or midshipman; and
                    ``(ii) the Secretary concerned to take into 
                consideration the determinations made under clause (i) 
                with respect to such condition in deciding whether to 
                suspend payment in the case of such cadet or midshipman 
                on the basis of that condition.
            ``(C) A requirement for the Secretary concerned to transmit 
        to a cadet or midshipman proposed for suspension under this 
        subsection a notification of the proposed suspension together 
        with the determinations made under subparagraph (B)(i) in the 
        case of the proposed suspension.
            ``(D) A procedure for a cadet or midshipman proposed for 
        suspension under this subsection to submit a written response 
        to the proposal for suspension, including any supporting 
        information.
            ``(E) Requirements for--
                    ``(i) one or more health-care professionals to 
                review, in the case of such a response of a cadet or 
                midshipman, each health-related condition and prognosis 
                addressed in the response, taking into consideration 
                the matters submitted in such response; and
                    ``(ii) the Secretary concerned to take into 
                consideration the determinations made under clause (i) 
                with respect to such condition in making a final 
                decision regarding whether to suspend payment in the 
                case of such cadet or midshipman on the basis of that 
                condition, and the conditions under which such 
                suspension may be lifted.''.
    (b) Time for Promulgation of Regulations.--The Secretary of Defense 
shall prescribe the regulations required under subsection (j) of 
section 2107 of title 10, United States Code (as added by subsection 
(a)), not later than May 1, 2006.

SEC. 534. INCREASE IN MAXIMUM NUMBER OF ARMY RESERVE AND ARMY NATIONAL 
              GUARD CADETS UNDER RESERVE OFFICERS' TRAINING CORPS.

    Section 2107a(h) of title 10, United States Code, is amended by 
striking ``208 cadets'' and inserting ``416 cadets''.

SEC. 535. MODIFICATION OF EDUCATIONAL ASSISTANCE FOR RESERVES 
              SUPPORTING CONTINGENCY AND OTHER OPERATIONS.

    (a) Official Receiving Elections of Benefits.--Section 16163(e) of 
title 10, United States Code, is amended by striking ``Secretary 
concerned'' and inserting ``Secretary of Veterans Affairs''.
    (b) Exception to Immediate Termination of Assistance.--Section 
16165 of such title is amended--
            (1) by striking ``Educational assistance'' and inserting 
        ``(a) In General.--Except as provided in subsection (b), 
        educational assistance''; and
            (2) by adding at the end the following new subsection:
    ``(b) Exception.--Under regulations prescribed by the Secretary of 
Defense, educational assistance may be provided under this chapter to a 
member of the Selected Reserve of the Ready Reserve who incurs a break 
in service in the Selected Reserve of not more than 90 days if the 
member continues to serve in the Ready Reserve during and after such 
break in service.''.

SEC. 536. REPEAL OF LIMITATION ON AUTHORITY TO REDESIGNATE THE NAVAL 
              RESERVE AS THE NAVY RESERVE.

    Section 517(a) of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
1884; 10 U.S.C. 10101 note) is amended by striking ``, which date'' and 
all that follows through the end and inserting a period.

SEC. 537. PERFORMANCE BY RESERVE COMPONENT PERSONNEL OF OPERATIONAL 
              TEST AND EVALUATION AND TRAINING RELATING TO NEW 
              EQUIPMENT.

    (a) Pilot Program.--The Secretary of the Army shall carry out a 
pilot program to evaluate the feasibility and advisability of--
            (1) utilizing members of the reserve components of the 
        Army, rather than contractor personnel, to perform test, 
        evaluation, new equipment training, and related activities for 
        one or more acquisition programs selected by the Secretary for 
        purposes of the pilot program; and
            (2) utilizing funds otherwise available for multi-year 
        purposes for such activities in appropriations for research, 
        development, test, and evaluation, and for procurement, in 
        order to reimburse appropriations for personnel for the costs 
        of pay, allowances, and expenses of such members in the 
        performance of such activities.
    (b) Nonwaiver of Personnel and Training Policies and Procedures.--
Nothing in this section may be construed to authorize any deviation 
from established personnel or training policies or procedures that are 
applicable to the reserve components of the personnel used under the 
pilot program.
    (c) Reimbursement Authority.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        may transfer from appropriations for research, development, 
        test, and evaluation, or for procurement, for an acquisition 
        program under the pilot program under subsection (a) to 
        appropriations for reserve component personnel of the Army 
        amounts necessary to reimburse appropriations for reserve 
        component personnel of the Army for pay, allowances, and 
        expenses of reserve component personnel of the Army in 
        performing activities under the pilot program.
            (2) Limitation.--The amount that may be transferred under 
        paragraph (1) in any fiscal year may not exceed $10,000,000.
            (3) Merger of funds.--Amounts transferred to an account 
        under paragraph (1) shall be merged with other amounts in such 
        account, and shall be available for the same period, and 
        subject to the same limitations, as the amounts with which 
        merged.
            (4) Relationship to other transfer authority.--The 
        authority to transfer funds under paragraph (1) is in addition 
        to any other authority to transfer funds under law.
    (d) Termination.--The authority to carry out the pilot program 
under subsection (a) shall expire on September 30, 2010.
    (e) Report.--Not later than March 1, 2010, the Secretary of the 
Army shall, in consultation with the Secretary of Defense, submit to 
the congressional defense committees a report on the pilot program 
under subsection (a). The report shall include--
            (1) a comprehensive description of the pilot program, 
        including the acquisition programs covered by the pilot program 
        and the activities performed by members of the reserve 
        components of the Army under the pilot program;
            (2) an assessment of the benefits, including cost savings 
        and other benefits, of the performance of activities under the 
        pilot program by members of the reserve components of the Army 
        rather than by contractor personnel; and
            (3) any recommendations for legislative or administrative 
        action that the Secretary considers appropriate in light of the 
        pilot program.

            Subtitle D--Military Justice and Related Matters

SEC. 551. MODIFICATION OF PERIODS OF PROSECUTION BY COURTS-MARTIAL FOR 
              MURDER, RAPE, AND CHILD ABUSE.

    (a) Unlimited Period for Murder and Rape.--Subsection (a) of 
section 843 of title 10, United States Code (article 43 of the Uniform 
Code of Military Justice), is amended by striking ``or with any 
offense'' and inserting ``with murder or rape, or with any other 
offense''.
    (b) Extended Period for Child Abuse.--Subsection (b)(2) of such 
section (article) is amended--
            (1) in subparagraph (A), by striking ``before the child 
        attains the age of 25 years'' and all that follows through the 
        period and inserting ``by an officer exercising summary court-
        martial jurisdiction with respect to that person during the 
        life of the victim or the date that is five years after the 
        date of the offense, whichever is the later date.'';
            (2) in subparagraph (B)--
                    (A) in the matter preceding clause (i), by striking 
                ``sexual or physical''; and
                    (B) in clause (v), by striking ``Indecent 
                assault,'' and inserting ``Kidnapping, indecent 
                assault,''; and
            (3) by adding at the end the following new subparagraph:
    ``(C) In subparagraph (A), the term `child abuse offense' also 
includes an act that involves abuse of a person who has not attained 
the age of 18 years and would constitute an offense under chapter 110 
or 117 or section 1591 of title 18.''.

SEC. 552. ESTABLISHMENT OF OFFENSE OF STALKING.

    (a) Establishment of Offense.--Subchapter X of chapter 47 of title 
10, United States Code (the Uniform Code of Military Justice), is 
amended by inserting after section 893 (article 93) the following new 
section (article):
``Sec. 893a. Art. 93a. Stalking
    ``(a) Any person subject to this chapter--
            ``(1) who wrongfully engages in a course of conduct 
        directed at a specific person that would cause a reasonable 
        person to fear death or bodily harm, including sexual assault, 
        to himself or herself or a member of his or her immediate 
        family;
            ``(2) who has knowledge, or should have knowledge, that the 
        specific person will be placed in reasonable fear of death or 
        bodily harm, including sexual assault, to himself or herself or 
        a member of his or her immediate family; and
            ``(3) whose acts induce reasonable fear in the specific 
        person of death or bodily harm, including sexual assault, to 
        himself or herself or to a member of his or her immediate 
        family,
is guilty of stalking and shall be punished as a court-martial may 
direct.
    ``(b) For purposes of this section:
            ``(1) The term `course of conduct' means--
                    ``(A) a repeated maintenance of visual or physical 
                proximity to a specific person; or
                    ``(B) a repeated conveyance of verbal threat, 
                written threats, or threats implied by conduct, or a 
                combination of such threats, directed at or toward a 
                specific person.
            ``(2) The term `repeated', with respect to conduct, means 
        two or more occasions of such conduct.
            ``(3) The term `immediate family', in the case of a 
        specific person, means a spouse, parent, child, or sibling of 
        the person, or any other family member or relative of the 
        person who regularly resides in the household of the person or 
        who within the six months preceding the commencement of the 
        course of conduct regularly resided in the household of the 
        person.''.
    (b) Clerical amendment.--The table of sections at the beginning of 
subchapter X of such chapter is amended by inserting after the item 
relating to section 893 (article 93) the following new item:

``893a. Art. 93a. Stalking.''.

SEC. 553. CLARIFICATION OF AUTHORITY OF MILITARY LEGAL ASSISTANCE 
              COUNSEL.

    Section 1044 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d)(1) Notwithstanding any law regarding the licensure of 
attorneys, a judge advocate or civilian attorney who is authorized to 
provide military legal assistance is authorized to provide that 
assistance in any jurisdiction, subject to such regulations as may be 
prescribed by the Secretary concerned.
    ``(2) In this subsection, the term `military legal assistance' 
includes--
            ``(A) legal assistance provided under this section; and
            ``(B) legal assistance contemplated by sections 1044a, 
        1044b, 1044c, and 1044d of this title.''.

SEC. 554. ADMINISTRATIVE CENSURES OF MEMBERS OF THE ARMED FORCES.

    (a) Authority To Issue Administrative Censures.--
            (1) Authority of secretary of defense.--The Secretary of 
        Defense may issue, in writing, an administrative censure to any 
        member of the Armed Forces.
            (2) Authority of secretaries of military departments.--The 
        Secretary of a military department may issue, in writing, an 
        administrative censure to any member of the Armed Forces under 
        the jurisdiction of such Secretary.
            (3) Regulations.--Administrative censures shall be issued 
        under this section pursuant to regulations prescribed by the 
        Secretary of Defense. The regulations shall apply uniformly 
        throughout the military departments.
    (b) Administrative Censure.--For purposes of this section, an 
administrative censure is a statement of adverse opinion or criticism 
with respect to the conduct or performance of duty of a member of the 
Armed Forces.
    (c) Finality.--An administrative censure issued under this section 
is final and may not be appealed by the member of the Armed Forces 
concerned.
    (d) Construction.--The authority under this section to issue 
administrative censures with respect to the conduct or performance of 
duty of a member of the Armed Forces is in addition to the authority to 
impose non-judicial punishment with respect to such conduct or 
performance of duty under section 815 of title 10, United States Code 
(article 15 of the Uniform Code of Military Justice).

SEC. 555. REPORTS BY OFFICERS AND SENIOR ENLISTED PERSONNEL OF MATTERS 
              RELATING TO VIOLATIONS OR ALLEGED VIOLATIONS OF CRIMINAL 
              LAW.

    (a) Requirement for Reports.--
            (1) In general.--The Secretary of Defense shall prescribe 
        in regulations a requirement that each covered member of the 
        Armed Forces, whether on the active-duty list or on the reserve 
        active-status list, shall submit to an authority in the 
        military department concerned designated pursuant to such 
        regulations a timely report on any investigation, arrest, 
        charge, detention, adjudication, or conviction of such member 
        by any law enforcement authority of the United States for a 
        violation of a criminal law of the United States, whether or 
        not such member is on active duty at the time of the conduct 
        that provides the basis of such investigation, arrest, charge, 
        detention, adjudication, or conviction. The regulations shall 
        apply uniformly throughout the military departments.
            (2) Covered members.--In this section, the term ``covered 
        member of the Armed Forces'' means the following:
                    (A) An officer.
                    (B) An enlisted member in the grade of E-7 or 
                above.
    (b) Law Enforcement Authority of the United States.--For purposes 
of this section, a law enforcement authority of the United States 
includes--
            (1) a military or other Federal law enforcement authority;
            (2) a State or local law enforcement authority; and
            (3) such other law enforcement authorities within the 
        United States as the Secretary shall specify in the regulations 
        prescribed pursuant to subsection (a).
    (c) Criminal Law of the United States.--
            (1) In general.--Except as provided in paragraph (2), for 
        purposes of this section, a criminal law of the United States 
        includes--
                    (A) any military or other Federal criminal law;
                    (B) any State, county, municipal, or local criminal 
                law or ordinance; and
                    (C) such other criminal laws and ordinances of 
                jurisdictions within the United States as the Secretary 
                shall specify in the regulations prescribed pursuant to 
                subsection (a).
            (2) Exception.--For purposes of this section, a criminal 
        law of the United States shall not include a law or ordinance 
        specifying a minor traffic offense (as determined by the 
        Secretary for purposes of such regulations).
    (d) Actions Subject To Report.--
            (1) In general.--The regulations prescribed pursuant to 
        subsection (a) shall specify each action of a law enforcement 
        authority of the United States for which a report under that 
        subsection shall be required.
            (2) Multiple reports on single conduct.--If the conduct of 
        a covered member of the Armed Forces would provide the basis 
        for actions of a law enforcement authority of the United States 
        warranting more than one report under this section, the 
        regulations shall specify which of such actions such be subject 
        to a report under this section.
    (e) Timeliness of Reports.--The regulations prescribed pursuant to 
subsection (a) shall establish requirements for the timeliness of 
reports under this section.
    (f) Forwarding of Information.--The regulations prescribed pursuant 
to subsection (a) shall provide that, in the event a military 
department receives information that a covered member of the Armed 
Forces under the jurisdiction of another military department has become 
subject to an investigation, arrest, charge, detention, adjudication, 
or conviction for which a report is required by this section, the 
Secretary of the military department receiving such information shall, 
in accordance with such procedures as the Secretary of Defense shall 
establish in such regulations, forward such information to the 
authority in the military department having jurisdiction over such 
member designated pursuant to such regulations.
    (g) Deadline for Regulations.--The regulations required by 
subsection (a), including the requirement in subsection (f), shall go 
into effect not later than January 1, 2006.

                 Subtitle E--Military Service Academies

SEC. 561. AUTHORITY TO RETAIN PERMANENT MILITARY PROFESSORS AT THE 
              NAVAL ACADEMY AFTER MORE THAN 30 YEARS OF SERVICE.

    (a) Authority To Retain.--
            (1) In general.--Chapter 603 of title 10, United States 
        Code, is amended by inserting after section 6952 the following 
        new section:
``Sec. 6952a. Faculty: retention of permanent military professors
    ``(a) Retirement for Years of Service.--(1) Except as provided in 
subsection (b), an officer serving as a permanent military professor at 
the Naval Academy in the grade of commander who is not on a list of 
officers recommended for promotion to the grade of captain shall, if 
not earlier retired, be retired on the first day of the month after the 
month in which the officer completes 28 years of active commissioned 
service.
    ``(2) Except as provided in subsection (b), an officer serving as a 
permanent military professor at the Naval Academy in the grade of 
captain who is not on a list of officers recommended for promotion to 
the grade of rear admiral (lower half) shall, if not earlier retired, 
be retired on the first day of the month after the month in which the 
officer completes 30 years of active commissioned service.
    ``(b) Continuation on Active Duty.--(1) An officer subject to 
retirement under subsection (a) may be continued on active duty by the 
Secretary of the Navy after the date otherwise provided for retirement 
under such subsection--
            ``(A) upon the recommendation of the Superintendent of the 
        Naval Academy; and
            ``(B) with the concurrence of the Chief of Naval 
        Operations.
    ``(2) The Secretary of the Navy shall determine the period of 
continuation on active duty of an officer under this subsection.
    ``(c) Eligibility for Promotion.--A permanent military professor at 
the Naval Academy who has been retained on active duty as a permanent 
military professor after more than 28 years of active commissioned 
service in the grade of commander under subsection (b) is eligible for 
consideration for promotion to the grade of captain.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 6952 the following new item:

``6952a. Faculty: retention of permanent military professors.''.
    (b) Conforming Amendments.--
            (1) Section 633 of such title is amended--
                    (A) by striking ``and an officer'' and inserting 
                ``, an officer''; and
                    (B) by inserting ``, and an officer who is a 
                permanent military professor at the Naval Academy to 
                whom section 6952a of this title applies,'' after 
                ``section 6383 of this title applies''.
            (2) Section 634 of such title is amended by inserting ``and 
        an officer who is a permanent military professor at the Naval 
        Academy to whom section 6952a of this title applies,'' after 
        ``section 6383(a)(4) of this title''.

                   Subtitle F--Administrative Matters

SEC. 571. CLARIFICATION OF LEAVE ACCRUAL FOR MEMBERS ASSIGNED TO A 
              DEPLOYABLE SHIP OR MOBILE UNIT OR OTHER DUTY.

    Subparagraph (B) of section 701(f)(1) of title 10, United States 
Code, is amended to read as follows:
    ``(B) This subsection applies to a member who--
            ``(i) serves on active duty for a continuous period of at 
        least 120 days in an area in which the member is entitled to 
        special pay under section 310(a) of title 37; or
            ``(ii) is assigned to a deployable ship or mobile unit or 
        to other duty designated for the purpose of this section.''.

SEC. 572. LIMITATION ON CONVERSION OF MILITARY MEDICAL AND DENTAL 
              BILLETS TO CIVILIAN POSITIONS.

    (a) Limitation.--Commencing as of the date of the enactment of this 
Act, no military medical or dental billet may be converted to a 
civilian position until 90 days after the date on which the Secretary 
of Defense certifies to the congressional defense committees each of 
the following:
            (1) That the conversion of military medical or dental 
        billets to civilian positions, whether before the date of the 
        enactment or as scheduled after the limitation under this 
        subsection no longer applies, will not result in an increase in 
        civilian health care costs.
            (2) That the conversion of such billets to such positions 
        meets the joint medical and dental readiness requirements of 
        the uniformed services, as determined jointly by all the 
        uniformed services.
            (3) That, as determined pursuant to market surveys 
        conducted under subsection (b), the civilian medical and dental 
        care providers available in each affected area are adequate to 
        fill the civilian positions created by the conversion of such 
        billets to such positions in such affected area.
    (b) Market Surveys.--The Secretary of Defense shall conduct in each 
affected area a survey of the availability of civilian medical and 
dental care providers in such area in order to determine, for purposes 
of subsection (a)(3), whether or not the civilian medical and dental 
care providers available in such area are adequate to fill the civilian 
positions created by the conversion of medical and dental billets to 
civilian positions in such area.
    (c) Definitions.--In this section:
            (1) The term ``affected area'' means an area in which the 
        conversion of military medical or dental billets to civilian 
        positions has taken place as of the date of the enactment of 
        this Act or is scheduled to take place after the limitation 
        under subsection (a) no longer applies.
            (2) The term ``uniformed services'' has the meaning given 
        that term in section 1072(1) of title 10, United States Code.

            Subtitle G--Defense Dependents Education Matters

SEC. 581. EXPANSION OF AUTHORIZED ENROLLMENT IN DEPARTMENT OF DEFENSE 
              DEPENDENTS SCHOOLS OVERSEAS.

    The Defense Dependents' Education Act of 1978 (20 U.S.C. 931 et 
seq.) is amended by inserting after section 1404 the following new 
section:

   ``enrollment of certain additional children on tuition-free basis

    ``Sec. 1404A. (a) The Secretary of Defense may, under regulations 
to be prescribed by the Secretary, authorize the enrollment in schools 
of the defense dependents' education system on a tuition-free basis the 
children of full-time, locally-hired employees of the Department of 
Defense in an overseas area if such employees are citizens or nationals 
of the United States.
    ``(b) The Secretary may utilize funds available for the defense 
dependents' education system, including funds for construction, in 
order to provide for the education of children enrolled in the defense 
dependents' education system under subsection (a).''.

SEC. 582. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES WITH SIGNIFICANT 
              ENROLLMENT INCREASES IN MILITARY DEPENDENT STUDENTS DUE 
              TO TROOP RELOCATIONS, CREATION OF NEW UNITS, AND 
              REALIGNMENTS UNDER BRAC.

    (a) Availability of Assistance.--To assist communities in making 
adjustments resulting from the creation of new units and other large-
scale relocations of members of the Armed Forces between military 
installations, the Secretary of Defense may make payments to local 
educational agencies described in subsection (b) that, during the 
period between the end of the school year preceding the fiscal year for 
which the payments are authorized and the beginning of the school year 
immediately preceding that school year, had an overall increase in the 
number of military dependent students enrolled in schools of such local 
educational agencies equal to or greater than 250 military dependent 
students.
    (b) Eligible Local Educational Agencies.--A local educational 
agency is eligible for assistance under this section for a fiscal year 
only if the Secretary of Defense determines that--
            (1) the local educational agency is eligible for 
        educational agencies assistance for the same fiscal year; and
            (2) the required overall increase in the number of military 
        dependent students enrolled in schools of that local 
        educational agency, as provided in subsection (a), occurred as 
        a result of the relocation of military personnel due to--
                    (A) the global rebasing plan of the Department of 
                Defense;
                    (B) the official creation or activation of one or 
                more new military units; or
                    (C) the realignment of forces as a result of the 
                base closure process.
    (c) Notification.--Not later than June 30, 2006, and June 30 of 
each of the next two fiscal years, the Secretary of Defense shall 
notify each local educational agency that is eligible for assistance 
under this section for such fiscal year of--
            (1) the eligibility of the local educational agency for the 
        assistance; and
            (2) the amount of the assistance for which that local 
        educational agency is eligible, as determined under subsection 
        (d).
    (d) Amount of Assistance.--
            (1) In general.--In making assistance available to local 
        educational agencies under this section, the Secretary of 
        Defense shall, in consultation with the Secretary of Education, 
        make assistance available to such local educational agencies 
        for a fiscal year on a pro rata basis based on the size of the 
        overall increase in the number of military and Department of 
        Defense civilian dependent students enrolled in schools of 
        those local educational agencies for such fiscal year.
            (2) Limitation.--No local educational agency may receive 
        more than $1,000,000 in assistance under this section for any 
        fiscal year.
    (e) Disbursement of Funds.--The Secretary of Defense shall disburse 
assistance made available under this section for a fiscal year not 
later than 30 days after the date on which notification to the eligible 
local educational agencies is provided pursuant to subsection (c) for 
that fiscal year.
    (f) Consultation.--The Secretary of Defense shall carry out this 
section in consultation with the Secretary of Education.
    (g) Reports.--
            (1) Reports required.--Not later than May 1 of each of 
        2007, 2008, and 2009, the Secretary of Defense shall submit to 
        the congressional defense committees a report on the assistance 
        provided under this section during the fiscal year preceding 
        the date of such report.
            (2) Element.--Each report on the assistance provided during 
        a fiscal year under this section shall include an assessment 
        and description of the current compliance of each local 
        educational agency receiving such assistance with the 
        requirements of the No Child Left Behind Act of 2001 (Public 
        Law 107-110).
    (h) Funding.--Of the amount authorized to be appropriated to the 
Department of Defense for fiscal years 2006, 2007, and 2008 for 
operation and maintenance for Defense-wide activities, $15,000,000 
shall be available for each such fiscal year only for the purpose of 
providing assistance to local educational agencies under this section.
    (i) Termination.--The authority of the Secretary of Defense to 
provide financial assistance under this section shall expire on 
September 30, 2008.
    (j) Definitions.--In this section:
            (1) The term ``base closure process'' means the 2005 base 
        closure and realignment process authorized by Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note) or any base closure 
        and realignment process conducted after the date of the 
        enactment of this Act under section 2687 of title 10, United 
        States Code, or any other similar law enacted after that date.
            (2) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (3) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
            (4) The term ``military dependent students'' refers to--
                    (A) elementary and secondary school students who 
                are dependents of members of the Armed Forces; and
                    (B) elementary and secondary school students who 
                are dependents of civilian employees of the Department 
                of Defense.

SEC. 583. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
2006.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$30,000,000 shall be available only for the purpose of providing 
educational agencies assistance to local educational agencies.
    (b) Notification.--Not later than June 30, 2006, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2006 of--
            (1) that agency's eligibility for the assistance; and
            (2) the amount of the assistance for which that agency is 
        eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
            (3) The term ``basic support payment'' means a payment 
        authorized under section 8003(b)(1) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(b)(1)).

SEC. 584. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 
U.S.C. 7703a).

                       Subtitle H--Other Matters

SEC. 591. POLICY AND PROCEDURES ON CASUALTY ASSISTANCE TO SURVIVORS OF 
              MILITARY DECEDENTS.

    (a) Comprehensive Policy on Casualty Assistance.--
            (1) Policy required.--Not later than January 1, 2006, the 
        Secretary of Defense shall develop and prescribe a 
        comprehensive policy for the Department of Defense on the 
        provision of casualty assistance to survivors and next of kin 
        of members of the Armed Forces who die during military service 
        (in this section referred to as ``military decedents'').
            (2) Consultation.--The Secretary shall develop the policy 
        in consultation with the Secretaries of the military 
        departments, the Secretary of Veterans Affairs, and the 
        Secretary of Homeland Security with respect to the Coast Guard
            (3) Incorporation of past experience and practice.--The 
        policy shall be based on--
                    (A) the experience and best practices of the 
                military departments;
                    (B) the recommendations of nongovernment 
                organizations with demonstrated expertise in responding 
                to the needs of survivors of military decedents; and
                    (C) such other matters as the Secretary of Defense 
                considers appropriate.
            (4) Procedures.--The policy shall include procedures to be 
        followed by the military departments in the provision of 
        casualty assistance to survivors and next of kin of military 
        decedents. The procedures shall be uniform across the military 
        departments except to the extent necessary to reflect the 
        traditional practices or customs of a particular military 
        department.
    (b) Elements of Policy.--The comprehensive policy developed under 
subsection (a) shall address the following matters:
            (1) The initial notification of primary and secondary next 
        of kin of the deaths of military decedents and any subsequent 
        notifications of next of kin warranted by circumstances.
            (2) The transportation and disposition of remains of 
        military decedents, including notification of survivors of the 
        performance of autopsies.
            (3) The qualifications, assignment, training, duties, 
        supervision, and accountability for the performance of casualty 
        assistance responsibilities.
            (4) The relief or transfer of casualty assistance officers, 
        including notification to survivors and next of kin of the 
        reassignment of such officers to other duties.
            (5) Centralized, short-term and long-term case-management 
        procedures for casualty assistance by each military department, 
        including rapid access by survivors of military decedents and 
        casualty assistance officers to expert case managers and 
        counselors.
            (6) The provision, at no cost to survivors of military 
        decedents, of personalized, integrated information on the 
        benefits and financial assistance available to such survivors 
        from the Federal Government.
            (7) The provision, at no cost to survivors of military 
        decedents, of legal assistance by military attorneys on matters 
        arising from the deaths of such decedents, including tax 
        matters, on an expedited, prioritized basis.
            (8) The provision of financial counseling to survivors of 
        military decedents, particularly with respect to appropriate 
        disposition of death gratuity and insurance proceeds received 
        by surviving spouses, minor dependent children, and their 
        representatives.
            (9) The provision of information to survivors and next of 
        kin of military decedents on mechanisms for registering 
        complaints about, or requests for, additional assistance 
        related to casualty assistance.
            (10) Liaison with the Department of Veterans Affairs and 
        the Social Security Administration in order to ensure prompt 
        and accurate resolution of issues relating to benefits 
        administered by those agencies for survivors of military 
        decedents.
            (11) Data collection regarding the incidence and quality of 
        casualty assistance provided to survivors of military 
        decedents, including surveys of such survivors and military and 
        civilian members assigned casualty assistance duties.
    (c) Adoption by Military Departments.--Not later than March 1, 
2006, the Secretary of each military department shall prescribe 
regulations, or modify current regulations, on the policies and 
procedures of such military department on the provision of casualty 
assistance to survivors and next of kin of military decedents in order 
to conform such policies and procedures to the policy developed under 
subsection (a).
    (d) Report on Improvement of Casualty Assistance Programs.--Not 
later than May 1, 2006, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report that includes--
            (1) the assessment of the Secretary of the adequacy and 
        sufficiency of the current casualty assistance programs of the 
        military departments;
            (2) a plan for a system for the uniform provision to 
        survivors of military decedents of personalized, accurate, and 
        integrated information on the benefits and financial assistance 
        available to such survivors through the casualty assistance 
        programs of the military departments under subsection (c); and
            (3) such recommendations for other legislative or 
        administrative action as the Secretary considers appropriate to 
        enhance and improve such programs to achieve their intended 
        purposes.
    (e) GAO Report.--
            (1) Report required.--Not later than August 1, 2006, the 
        Comptroller General of the United States shall submit to the 
        congressional defense committees a report on the evaluation by 
        the Comptroller General of the casualty assistance programs of 
        the Department of Defense and of such other departments and 
        agencies of the Federal Government as provide casualty 
        assistance to survivors and next of kin of military decedents.
            (2) Assessment.--The report shall include the assessment of 
        the Comptroller General of the adequacy of the current policies 
        and procedures of, and funding for, the casualty assistance 
        programs covered by the report to achieve their intended 
        purposes.

SEC. 592. MODIFICATION AND ENHANCEMENT OF MISSION AND AUTHORITIES OF 
              THE NAVAL POSTGRADUATE SCHOOL.

    (a) Combat-Related Focus for Naval Postgraduate School.--
            (1) In general.--Section 7041 of title 10, United States 
        Code, is amended by striking ``for the advanced instruction'' 
        and all that follows and inserting ``for the provision of 
        advanced instruction, and professional and technical education, 
        to commissioned officers of the naval service to enhance combat 
        effectiveness and the national security.''.
            (2) Conforming amendment.--Section 7042(b)(1) of such title 
        is amended by striking ``and technical education'' and 
        inserting ``, and technical and professional education,''.
    (b) Expanded Eligibility of Enlisted Personnel for Instruction.--
Section 7045 of such title is amended--
            (1) in subsection (a)(2)--
                    (A) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (B) by inserting after subparagraph (B) the 
                following new subparagraph (C):
    ``(C) The Secretary may permit an eligible member of the armed 
forces to receive instruction from the Postgraduate School in 
certificate programs and courses required for the performance of the 
member's duties.''; and
                    (C) in subparagraph (D), as so redesignated, by 
                striking ``(A) and (B)'' and inserting ``(A), (B), and 
                (C)''; and
            (2) in subsection (b)(2), by striking ``(a)(2)(C)'' and 
        inserting ``(a)(2)(D)''.

SEC. 593. EXPANSION AND ENHANCEMENT OF AUTHORITY TO PRESENT RECOGNITION 
              ITEMS FOR RECRUITMENT AND RETENTION PURPOSES.

    (a) In General.--(1) Subchapter II of chapter 134 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2261. Presentation of recognition items for recruitment and 
              retention purposes
    ``(a) Expenditures for Recognition Items.--Under regulations 
prescribed by the Secretary of Defense, appropriated funds may be 
expended--
            ``(1) to procure recognition items of nominal or modest 
        value for recruitment or retention purposes; and
            ``(2) to present such items--
                    ``(A) to members of the armed forces, including 
                members of the reserve components of the armed forces; 
                and
                    ``(B) to members of the families of members of the 
                armed forces, and to other individuals recognized as 
                providing support that substantially facilitates 
                service in the armed forces.
    ``(b) Provision of Meals and Refreshments.--For purposes of section 
520c of this title and any regulation prescribed to implement that 
section, functions conducted for the purpose of presenting recognition 
items described in subsection (a) shall be treated as recruiting 
functions, and recipients of such items shall be treated as persons who 
are the objects of recruiting efforts.
    ``(c) Definition.--The term `recognition items of nominal or modest 
value' means commemorative coins, medals, trophies, badges, flags, 
posters, paintings, or other similar items that are valued at less than 
$50 per item and are designed to recognize or commemorate service in 
the armed forces.
    ``(d) Termination of Authority.--The authority under this section 
shall expire December 31, 2007.''.
    (2) The table of sections at the beginning of subchapter II of 
chapter 134 of such title is amended by adding at the end the following 
new item:

``2261. Presentation of recognition items for recruitment and retention 
                            purposes.''.
    (b) Repeal of Superseded Authorities.--
            (1) Army reserve.--(A) Section 18506 of title 10, United 
        States Code, is repealed.
            (B) The table of sections at the beginning of chapter 1805 
        of such title is amended by striking the item relating to 
        section 18506.
            (2) National guard.--(A) Section 717 of title 32, United 
        States Code, is repealed.
            (B) The table of sections at the beginning of chapter 7 of 
        such title is amended by striking the item relating to section 
        717.

SEC. 594. REQUIREMENT FOR REGULATIONS ON POLICIES AND PROCEDURES ON 
              PERSONAL COMMERCIAL SOLICITATIONS ON DEPARTMENT OF 
              DEFENSE INSTALLATIONS.

    (a) Requirement.--Not later than January 1, 2006, the Secretary of 
Defense shall prescribe regulations, or modify existing regulations, on 
the policies and procedures relating to personal commercial 
solicitations, including the sale of life insurance and securities, on 
Department of Defense installations.
    (b) Repeal of Superseded Limitations.--The following provisions of 
law are repealed:
            (1) Section 586 of the National Defense Authorization Act 
        for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1493).
            (2) Section 8133 of the Department of Defense 
        Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 1002).

SEC. 595. FEDERAL ASSISTANCE FOR STATE PROGRAMS UNDER THE NATIONAL 
              GUARD YOUTH CHALLENGE PROGRAM.

    (a) In General.--Section 509(d) of title 32, United States Code, is 
amended by striking paragraphs (1), (2), (3), and (4) and inserting the 
following new paragraphs:
            ``(1) for fiscal year 2006, 65 percent of the costs of 
        operating the State program during that fiscal year;
            ``(2) for fiscal year 2007, 70 percent of the costs of 
        operating the State program during that fiscal year; and
            ``(3) for fiscal year 2008 and each subsequent fiscal year, 
        75 percent of the costs of operating the State program during 
        such fiscal year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2005.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. ELIGIBILITY FOR ADDITIONAL PAY OF PERMANENT MILITARY 
              PROFESSORS AT THE UNITED STATES NAVAL ACADEMY WITH OVER 
              36 YEARS OF SERVICE.

    Section 203(b) of title 37, United States Code, is amended by 
inserting ``, the United States Naval Academy,'' after ``the United 
States Military Academy''.

SEC. 602. ENHANCED AUTHORITY FOR AGENCY CONTRIBUTIONS FOR MEMBERS OF 
              THE ARMED FORCES PARTICIPATING IN THE THRIFT SAVINGS 
              PLAN.

    (a) Authority To Make Contributions for Certain First-Time 
Enlistees.--Section 211(d) of title 37, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by inserting ``(i)'' after 
                ``(A)'';
                    (B) by redesignating subparagraph (B) as clause 
                (ii) of subparagraph (A);
                    (C) in clause (ii) of subparagraph (A), as so 
                redesignated, by striking the period at the end and 
                inserting ``; or''; and
                    (D) by adding at the end the following new 
                subparagraph (B):
            ``(B) in the case of a member first enlisting in the armed 
        forces, the period of the member's enlistment is not less than 
        two years.'';
            (2) in paragraph (2), by striking ``paragraph (1)'' the 
        first place it appears and inserting ``paragraph (1)(A)''; and
            (3) by adding at the end the following new paragraph:
    ``(3) In the case of a member described by paragraph (1)(B), the 
Secretary shall make contributions to the Fund for the benefit of the 
member for each pay period of the enlistment of the member described in 
that paragraph for which the member makes a contribution to the Fund 
under section 8440e of title 5 (other than under subsection (d)(2) 
thereof). The second sentence of paragraph (2) applies to the 
Secretary's obligation to make contributions under this paragraph to 
the same extent as such paragraph applies to the Secretary's obligation 
to make contributions under such paragraph.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

SEC. 603. PERMANENT AUTHORITY FOR SUPPLEMENTAL SUBSISTENCE ALLOWANCE 
              FOR LOW-INCOME MEMBERS WITH DEPENDENTS.

    Section 402a of title 37, United States Code, is amended by 
striking subsection (i).

SEC. 604. MODIFICATION OF PAY CONSIDERED AS SAVED PAY UPON APPOINTMENT 
              OF AN ENLISTED MEMBER AS AN OFFICER.

    (a) In General.--Section 907(d) of title 37, United States Code, is 
amended to read as follows:
    ``(d) In determining the amount of the pay and allowances of a 
grade formerly held by an officer, the following special and incentive 
pays may be considered only so long as the officer continues to perform 
the duty creating the entitlement to or eligibility for such pay and 
would otherwise be eligible to receive such pay in the officer's former 
grade:
            ``(1) Incentive pay for hazardous duty under section 301 of 
        this title.
            ``(2) Submarine duty incentive pay under section 301c of 
        this title.
            ``(3) Diving duty special pay under section 304 of this 
        title.
            ``(4) Hardship duty special pay under section 305 of this 
        title.
            ``(5) Career sea pay under section 305a of this title.
            ``(6) Special pay for service as a member of a Weapons of 
        Mass Destruction Civil Support Team under section 305b of this 
        title.
            ``(7) Assignment incentive pay under section 307a of this 
        title.
            ``(8) Hostile fire pay or imminent danger pay under section 
        310 of this title.
            ``(9) Special pay for extension of overseas tour of duty 
        under section 314 of this title.
            ``(10) Foreign language proficiency pay under section 316 
        of this title.
            ``(11) Critical skill retention bonus under section 323 of 
        this title, if payable in periodic installments.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act, and shall apply with 
respect to acceptances of enlisted members of appointments as officers 
on or after that date.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title 
37, United States Code, is amended by striking ``December 31, 2005'' 
and inserting ``December 31, 2006''.
    (b) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2005'' and inserting ``December 31, 2006''.
    (c) Ready Reserve Non-Prior Service Enlistment Bonus.--Section 
308g(h) of such title is amended by striking ``an enlistment after 
September 30, 1992.'' and inserting ``an enlistment--
            ``(1) during the period beginning on October 1, 1992, and 
        ending on September 30, 2005; or
            ``(2) after September 30, 2006.''.
    (d) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2005'' and 
inserting ``December 31, 2006''.
    (e) Prior Service Enlistment Bonus.--Section 308i(f) of such title 
is amended by striking ``December 31, 2005'' and inserting ``December 
31, 2006''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2005'' and inserting ``December 31, 2006''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``before January 1, 2006'' and inserting ``on or 
before December 31, 2006''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2005'' and inserting ``December 31, 2006''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2005'' 
and inserting ``December 31, 2006''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(f) of such title is 
amended by striking ``December 31, 2005'' and inserting ``December 31, 
2006''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2005'' and inserting 
``December 31, 2006''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``the date of the enactment of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 and 
ending on September 30, 2005'' and inserting ``October 30, 2000, and 
ending on December 31, 2006''.

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

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 2005'' and inserting ``December 31, 
2006''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2005'' and inserting ``December 
31, 2006''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2005'' and inserting 
``December 31, 2006''.

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2005'' and 
inserting ``December 31, 2006''.
    (b) Assignment Incentive Pay.--Section 307a(f) of such title is 
amended by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2005'' and inserting 
``December 31, 2006''.
    (d) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2005'' and inserting 
``December 31, 2006''.
    (e) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2005'' and inserting ``December 31, 2006''.
    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2005'' and 
inserting ``December 31, 2006''.

SEC. 615. PAYMENT AND REPAYMENT OF ASSIGNMENT INCENTIVE PAY.

    (a) Flexible Payment.--Section 307a of title 37, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``monthly''; and
                    (B) by adding at the end the following new 
                sentence: ``Incentive pay payable under this section 
                may be paid on a monthly basis, in a lump sum, or in 
                installments.'';
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``The Secretary 
                concerned'';
                    (B) in paragraph (1), as so designated, by striking 
                ``incentive pay'' in the first sentence and inserting 
                ``the payment of incentive pay on a monthly basis''; 
                and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) The Secretary concerned shall require a member performing 
service in an assignment designated under subsection (a) to enter into 
a written agreement with the Secretary in order to qualify for the 
payment of incentive pay on a lump sum or installment basis under this 
section. The written agreement shall specify the period for which the 
incentive pay will be paid to the member and, subject to subsection 
(c), the amount of the lump sum, or each installment, of the incentive 
pay.''; and
            (3) by striking subsection (c) and inserting the following 
        new subsection (c):
    ``(c) Maximum Rate or Amount.--(1) The maximum monthly rate of 
incentive pay payable to a member on a monthly basis under this section 
is $1,500.
    ``(2) The amount of the lump sum payment of incentive pay payable 
to a member on a lump sum basis under this section may not exceed an 
amount equal to the product of--
            ``(A) the maximum monthly rate authorized under paragraph 
        (1) at the time of the written agreement of the member under 
        subsection (b)(2); and
            ``(B) the number of months in the period for which 
        incentive pay will be paid pursuant to the agreement.
    ``(3) The amount of each installment payment of incentive pay 
payable to a member on an installment basis under this section shall be 
the amount equal to--
            ``(A) the product of (i) a monthly rate specified in the 
        written agreement of the member under subsection (b)(2) (which 
        monthly rate may not exceed the maximum monthly rate authorized 
        under paragraph (1) at the time of the written agreement), and 
        (ii) the number of months in the period for which incentive pay 
        will be paid; divided by
            ``(B) the number of installments over such period.
    ``(4) If a member extends an assignment specified in an agreement 
with the Secretary under subsection (b), incentive pay for the period 
of the extension may be paid under this section on a monthly basis, in 
a lump sum, or in installments in accordance with this section.''.
    (b) Repayment.--Such section is further amended--
            (1) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
            (2) by inserting after subsection (c), as amended by 
        subsection (a)(3) of this section, the following new subsection 
        (d):
    ``(d) Repayment of Incentive Pay.--(1)(A) A member who, pursuant to 
an agreement under subsection (b)(2), receives a lump sum or 
installment payment of incentive pay under this section and who fails 
to complete the total period of service or other conditions specified 
in the agreement voluntarily or because of misconduct, shall refund to 
the United States an amount equal to the percentage of incentive pay 
paid which is equal to the unexpired portion of the service divided by 
the total period of service.
    ``(B) The Secretary concerned may waive repayment of an amount of 
incentive pay under subparagraph (A), whether in whole or in part, if 
the Secretary determines that conditions and circumstances warrant.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of the agreement does not discharge 
the member signing the agreement from a debt arising under paragraph 
(1).''.

SEC. 616. INCREASE IN AMOUNT OF SELECTIVE REENLISTMENT BONUS FOR 
              CERTAIN SENIOR SUPERVISORY NUCLEAR QUALIFIED ENLISTED 
              PERSONNEL.

    (a) In General.--Section 308 of title 37, United States Code, is 
amended--
            (1) by redesignating subsections (b) through (g) as 
        subsections (c) through (h), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b)(1) An enlisted member of the naval service who--
            ``(A) has completed at least ten, but not more than 
        fourteen, years of active duty;
            ``(B) is currently qualified for duty in connection with 
        the supervision, operation, and maintenance of naval nuclear 
        propulsion plants;
            ``(C) is qualified in a military skill designated as 
        critical by the Secretary of Defense; and
            ``(D) reenlists or voluntarily extends the member's 
        enlistment for a period of at least three years in the regular 
        component of the naval service,
may be paid a bonus as provided in paragraph (2).
    ``(2) The bonus to be paid a member under paragraph (1) may not 
exceed the lesser of the following amounts:
            ``(A) The amount determined with respect to the member in 
        accordance with subsection (a)(2)(A).
            ``(B) $75,000.
    ``(3) Subsection (a)(3) applies to the computation under paragraph 
(2)(A) of any bonus payable under this subsection.
    ``(4) Subsection (a)(4) applies to the payment of any bonus payable 
under this subsection.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005, and shall apply with respect to 
reenlistments or voluntary extensions of enlistments that occur on or 
after that date.

SEC. 617. CONSOLIDATION AND MODIFICATION OF BONUSES FOR AFFILIATION OR 
              ENLISTMENT IN THE SELECTED RESERVE.

    (a) Consolidation and Modification of Bonuses.--Section 308c of 
title 37, United States Code, is amended to read as follows:
``Sec. 308c. Special pay: bonus for affiliation or enlistment in the 
              Selected Reserve
    ``(a) Affiliation Bonus Authorized.--Under regulations prescribed 
by the Secretary of Defense, the Secretary concerned may pay an 
affiliation bonus to an enlisted member of an armed force who--
            ``(1) has completed fewer than 20 years of military 
        service; and
            ``(2) executes a written agreement to serve in the Selected 
        Reserve of the Ready Reserve of an armed force for a period of 
        not less than three years in a skill, unit, or pay grade 
        designated under subsection (b) after being discharged or 
        released from active duty under honorable conditions.
    ``(b) Designation of Skills, Units, and Pay Grades.--The Secretary 
concerned shall designate the skills, units, and pay grades for which 
an affiliation bonus may be paid under subsection (a). Any skill, unit, 
or pay grade so designated shall be a skill, unit, or pay grade for 
which there is a critical need for personnel in the Selected Reserve of 
the Ready Reserve of an armed force, as determined by the Secretary 
concerned.
    ``(c) Accession Bonus Authorized.--Under regulations prescribed by 
the Secretary of Defense, the Secretary concerned may pay an accession 
bonus to a person who--
            ``(1) has not previously served in the armed forces; and
            ``(2) executes a written agreement to serve as an enlisted 
        member in the Selected Reserve of the Ready Reserve of an armed 
        force for a period of not less than three years upon acceptance 
        of the agreement by the Secretary concerned.
    ``(d) Limitation on Amount of Bonus.--The amount of a bonus under 
subsection (a) or (c) may not exceed $10,000.
    ``(e) Payment Method.--Upon acceptance of a written agreement by 
the Secretary concerned, the total amount of the bonus payable under 
the agreement becomes fixed. The agreement shall specify whether the 
bonus shall be paid by the Secretary concerned in a lump sum or in 
installments.
    ``(f) Continued Entitlement to Bonus Payments.--A member entitled 
to a bonus under this section who is called or ordered to active duty 
shall be paid, during that period of active duty, any amount of the 
bonus that becomes payable to the member during that period of active 
duty.
    ``(g) Repayment for Failure to Commence or Complete Obligated 
Service.--(1) An individual who, after being paid all or part of a 
bonus under an agreement under subsection (a) or (c), does not commence 
to serve in the Selected Reserve or does not satisfactorily participate 
in the Selected Reserve for the total period of service specified in 
such agreement shall repay to the United States the amount of such 
bonus so paid, except as otherwise prescribed under paragraph (2).
    ``(2) The Secretary concerned shall prescribe in regulations 
whether repayment of an amount otherwise required under paragraph (1) 
shall be made in whole or in part, the method for computing the amount 
of such repayment, and any conditions under which an exception to 
required repayment would apply.
    ``(3) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States. A 
discharge in bankruptcy under title 11 that is entered less than five 
years after the termination of an agreement entered into under 
subsection (a) or (c) does not discharge the individual signing the 
agreement from a debt arising under such agreement or under paragraph 
(1).
    ``(h) Termination of Bonus Authority.--No bonus may be paid under 
this section with respect to any agreement entered into under 
subsection (a) or (c) after December 31, 2006.''.
    (b) Repeal of Superseded Affiliation Bonus Authority.--Section 308e 
of such title is repealed.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 5 of such title is amended--
            (1) by striking the item relating to section 308c and 
        inserting the following new item:

``308c. Special pay: bonus for affiliation or enlistment in the 
                            Selected Reserve.'';
        and
            (B) by striking the item relating to section 308e.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005, and shall apply with respect to agreements 
entered into under section 308c of title 37, United States Code (as 
amended by subsection (a)), on or after that date.

SEC. 618. EXPANSION AND ENHANCEMENT OF SPECIAL PAY FOR ENLISTED MEMBERS 
              OF THE SELECTED RESERVE ASSIGNED TO CERTAIN HIGH PRIORITY 
              UNITS.

    (a) Eligibility for Pay.--Subsection (a) of section 308d of title 
37, United States Code, is amended by striking ``an enlisted member'' 
and inserting ``a member''.
    (b) Amount of Pay.--Such subsection is further amended by striking 
``$10'' and inserting ``$50''.
    (c) Conforming and Clerical Amendments.--
            (1) Conforming amendment.--The heading of such section is 
        amended to read as follows:
``Sec. 308d. Special pay: members of the Selected Reserve assigned to 
              certain high priority units''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 5 of such title is amended by striking the 
        item relating to section 308d and inserting the following new 
        item:

``308d. Special pay: members of the Selected Reserve assigned to 
                            certain high priority units.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005, and shall apply to inactive-duty training 
performed on or after that date.

SEC. 619. RETENTION INCENTIVE BONUS FOR MEMBERS OF THE SELECTED RESERVE 
              QUALIFIED IN A CRITICAL MILITARY SKILL OR SPECIALTY.

    (a) Bonus Authorized.--
            (1) In general.--Chapter 5 of title 37, United States Code, 
        is amended by inserting after section 308j the following new 
        section:
``Sec. 308k. Special pay: retention incentive bonus for members of the 
              Selected Reserve qualified in a critical military skill 
              or specialty
    ``(a) Retention Bonus Authorized.--An eligible officer or enlisted 
member of the armed forces may be paid a retention bonus as provided in 
this section if--
            ``(1) in the case of an officer or warrant officer, the 
        member executes a written agreement to remain in the Selected 
        Reserve for at least 2 years;
            ``(2) in the case of an enlisted member, the member 
        reenlists or voluntarily extends the member's enlistment in the 
        Selected Reserve for a period of at least 2 years; or
            ``(3) in the case of an enlisted member serving on an 
        indefinite reenlistment, the member executes a written 
        agreement to remain in the Selected Reserve for at least 2 
        years.
    ``(b) Eligible Members.--Subject to subsection (d), an officer or 
enlisted member is eligible for a bonus under this section if the 
member--
            ``(1) is qualified in a military skill or specialty 
        designated as critical for purposes of this section under 
        subsection (c); or
            ``(2) agrees to train or retrain in a military skill or 
        specialty so designated as critical.
    ``(c) Designation of Critical Skills or Specialties.--The Secretary 
of Defense shall designate the military skills and specialties that 
shall be treated as critical military skills and specialties for 
purposes of this section.
    ``(d) Certain Members Ineligible.--A bonus may not be paid under 
subsection (a) to a member of the armed forces who--
            ``(1) has completed more than 25 years of qualifying 
        service under section 12732 of title 10; or
            ``(2) will complete the member's twenty-fifth year of 
        qualifying service under section 12732 of title 10 before the 
        end of the period of service for which the bonus is being 
        offered.
    ``(e) Maximum Bonus Amount.--A member may enter into an agreement 
under this section, or reenlist or voluntarily extend the member's 
enlistment, more than once to receive a bonus under this section. 
However, a member may not receive a total of more than $100,000 in 
payments under this section.
    ``(f) Payment Methods.--(1) A bonus under subsection (a) may be 
paid in a single lump sum or in installments.
    ``(2) In the case of a member who agrees to train or retrain in a 
military skill or specialty designated as critical under subsection 
(b)(2), no payment may be made until the member successfully completes 
the training or retraining and is qualified in such skill or specialty.
    ``(g) Relationship To Other Incentives.--A bonus paid to a member 
under subsection (a) is in addition to any other pay and allowances to 
which the member is entitled under any other provision of law.
    ``(h) Repayment for Failure to Commence or Complete Obligated 
Service.--(1) An individual who, after receiving all or part of the 
bonus under an agreement, or a reenlistment or voluntary extension of 
enlistment, referred to in subsection (a), does not commence to serve 
in the Selected Reserve, or does not satisfactorily participate in the 
Selected Reserve for the total period of service specified in the 
agreement, or under such reenlistment or voluntary extension of 
enlistment, as applicable, shall repay to the United States such bonus, 
except under conditions established by the Secretary concerned.
    ``(2) The Secretary concerned shall establish, in accordance with 
the regulations prescribed under subsection (i)--
            ``(A) whether repayment of a bonus under paragraph (1) is 
        required in whole or in part;
            ``(B) the method for computing the amount of such 
        repayment; and
            ``(C) the conditions under which an exception to repayment 
        otherwise required under that paragraph would apply.
    ``(3) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States. A 
discharge in bankruptcy under title 11 that is entered less than 5 
years after the termination of an agreement under subsection (a), or a 
reenlistment or voluntary extension of enlistment under subsection (a), 
does not discharge the individual signing the agreement, reenlisting, 
or voluntarily extending enlistment, as applicable, from a debt arising 
under paragraph (1).
    ``(i) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense.
    ``(j) Termination of Authority.--No bonus may be paid under this 
section with respect to any agreement, reenlistment, or voluntary 
extension of enlistment in the armed forces entered into after December 
31, 2006.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 5 of such title is amended by inserting 
        after the item relating to section 308j the following new item:

``308k. Special pay: retention incentive bonus for members of the 
                            Selected Reserve qualified in a critical 
                            military skill or specialty.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

SEC. 620. TERMINATION OF LIMITATION ON DURATION OF PAYMENT OF IMMINENT 
              DANGER SPECIAL PAY DURING HOSPITALIZATION.

    (a) Termination of Limitation.--Section 310(b) of title 37, United 
States Code, is amended by striking ``not more than three additional 
months'' and inserting ``any month, or any portion of a month,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
with respect to months beginning on or after that date.

SEC. 621. AUTHORITY FOR RETROACTIVE PAYMENT OF IMMINENT DANGER SPECIAL 
              PAY.

    Section 310 of title 37, United States Code, is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Date of Commencement of Payment of Imminent Danger Pay.--
Payment of special pay under this section to a member covered by 
subsection (a)(2)(D) may be made from any date, as determined by the 
Secretary of Defense, on or after which such member was assigned to 
duty in a foreign area determined by the Secretary to be covered by 
such subsection.''.

SEC. 622. AUTHORITY TO PAY FOREIGN LANGUAGE PROFICIENCY PAY TO MEMBERS 
              ON ACTIVE DUTY AS A BONUS.

    (a) Authority To Pay.--Section 316 of title 37, United States Code, 
is amended--
            (1) in subsection (a)--
                    (A) by inserting ``or Bonus'' after ``Special 
                Pay''; and
                    (B) by inserting ``or a bonus'' after ``monthly 
                special pay'';
            (2) in subsection (d)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by inserting after paragraph (1) the following 
                new paragraph (2):
    ``(2) The amount of the bonus paid under subsection (a) may not 
exceed $12,000 for the one-year period covered by the certification of 
the member. The Secretary concerned may pay the bonus in a single lump 
sum at the beginning of the certification period or in installments 
during the certification period.''; and
            (3) in subsection (f)(1)(C), by inserting ``or a bonus'' 
        after ``special pay''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

SEC. 623. INCENTIVE BONUS FOR TRANSFER BETWEEN THE ARMED FORCES.

    (a) In General.--Chapter 5 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 327. Incentive bonus: transfer between armed forces
    ``(a) Incentive Bonus Authorized.--A bonus under this section may 
be paid to an eligible member of a regular component or reserve 
component of an armed force who executes a written agreement--
            ``(1) to transfer from such regular component or reserve 
        component to a regular component or reserve component of 
        another armed force; and
            ``(2) to serve pursuant to such agreement for a period of 
        not less than three years in the component to which 
        transferred.
    ``(b) Eligible Members.--A member is eligible to enter into an 
agreement under subsection (a) if, as of the date of the agreement, the 
member--
            ``(1) has not failed to satisfactorily complete any term of 
        enlistment in the armed forces;
            ``(2) is eligible for reenlistment in the armed forces or, 
        in the case of an officer, is eligible to continue in service 
        in a regular or reserve component of the armed forces; and
            ``(3) has fulfilled such requirements for transfer to the 
        component of the armed force to which the member will transfer 
        as the Secretary having jurisdiction over such armed force 
        shall establish.
    ``(c) Limitation.--A member may enter into an agreement under 
subsection (a) to transfer to a regular component or reserve component 
of another armed force only if the Secretary having jurisdiction over 
such armed force determines that there is shortage of trained and 
qualified personnel in such component.
    ``(d) Amount and Payment of Bonus.--(1) A bonus under this section 
may not exceed $2,500.
    ``(2) A bonus under this section shall be paid by the Secretary 
having jurisdiction of the armed force to which the member to be paid 
the bonus is transferring.
    ``(3) A bonus under this section shall, at the election of the 
Secretary paying the bonus--
            ``(A) be disbursed to the member in one lump sum when the 
        transfer for which the bonus is paid is approved by the chief 
        personnel officer of the armed force to which the member is 
        transferring; or
            ``(B) be paid to the member in annual installments in such 
        amounts as may be determined by the Secretary paying the bonus.
    ``(e) Relationship to Other Pay and Allowances.--A bonus paid to a 
member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(f) Repayment of Bonus.--(1) A member who is paid a bonus under 
an agreement under this section and who, voluntarily or because of 
misconduct, fails to serve for the period covered by such agreement 
shall refund to the United States an amount which bears the same ratio 
to the amount of the bonus paid such member as the period which such 
member failed to serve bears to the total period for which the bonus 
was paid.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than 5 years after the termination of an agreement under this section 
does not discharge the person signing such agreement from a debt 
arising under paragraph (1).
    ``(g) Regulations.--The Secretaries concerned shall prescribe 
regulations to carry out this section. Regulations prescribed by the 
Secretary of a military department under this subsection shall be 
subject to the approval of the Secretary of Defense.
    ``(h) Termination of Authority.--No agreement under this section 
may be entered into after December 31, 2006.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title is amended by adding at the end the following 
new item:

``327. Incentive bonus: transfer between armed forces.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRANSPORTATION OF FAMILY MEMBERS IN CONNECTION WITH THE 
              REPATRIATION OF SERVICEMEMBERS OR CIVILIAN EMPLOYEES HELD 
              CAPTIVE.

    (a) Military Captives.--(1) Chapter 7 of title 37, United States 
Code, is amended by inserting after section 411i the following new 
section:
``Sec. 411j. Travel and transportation allowances: transportation of 
              family members incident to the repatriation of members 
              held captive
    ``(a) Allowance for Family Members and Certain Others.--(1) Under 
uniform regulations prescribed by the Secretaries concerned, travel and 
transportation described in subsection (d) may be provided for not more 
than 3 family members of a member described in subsection (b).
    ``(2) In addition to the family members authorized to be provided 
travel and transportation under paragraph (1), the Secretary concerned 
may provide travel and transportation described in subsection (d) to an 
attendant to accompany a family member described in that paragraph if 
the Secretary determines that--
            ``(A) the family member to be accompanied is unable to 
        travel unattended because of age, physical condition, or other 
        reason determined by the Secretary; and
            ``(B) no other family member who is eligible for travel and 
        transportation under paragraph (1) is able to serve as an 
        attendant for the family member.
    ``(3) If no family member of a member described in subsection (b) 
is able to travel to the repatriation site of the member, travel and 
transportation described in subsection (d) may be provided to not more 
than 2 persons related to and selected by the member.
    ``(b) Covered Members.--A member described in this subsection is a 
member of the uniformed services who--
            ``(1) is serving on active duty;
            ``(2) was held captive, as determined by the Secretary 
        concerned; and
            ``(3) is repatriated to a site inside or outside the United 
        States.
    ``(c) Eligible Family Members.--In this section, the term `family 
member' has the meaning given the term in section 411h(b) of this 
title.
    ``(d) Travel and Transportation Authorized.--(1) The transportation 
authorized by subsection (a) is round-trip transportation between the 
home of the family member (or home of the attendant or person provided 
transportation under paragraph (2) or (3) of subsection (a), as the 
case may be) and the location of the repatriation site at which the 
member is located.
    ``(2) In addition to the transportation authorized by subsection 
(a), the Secretary concerned may provide a per diem allowance or 
reimbursement for the actual and necessary expenses of the travel, or a 
combination thereof, but not to exceed the rates established for such 
allowances and expenses under section 404(d) of this title.
    ``(3) The transportation authorized by subsection (a) may be 
provided by any of the means described in section 411h(d)(1) of this 
title.
    ``(4) An allowance under this subsection may be paid in advance.
    ``(5) Reimbursement payable under this subsection may not exceed 
the cost of government-procured round-trip air travel.''.
    (2) The table of sections at the beginning of chapter 7 of such 
title is amended by inserting after the item relating to section 411i 
the following new item:

``411j. Travel and transportation allowances: transportation of family 
                            members incident to the repatriation of 
                            members held captive.''.
    (b) Civilian Captives.--(1) Chapter 57 of title 5, United States 
Code, is amended by adding at the end the following new section:
``Sec. 5760. Travel and transportation allowances: transportation of 
              family members incident to the repatriation of employees 
              held captive
    ``(a) Allowance for Family Members and Certain Others.--(1) Under 
uniform regulations prescribed by the heads of agencies, travel and 
transportation described in subsection (d) may be provided for not more 
than 3 family members of an employee described in subsection (b).
    ``(2) In addition to the family members authorized to be provided 
travel and transportation under paragraph (1), the head of an agency 
may provide travel and transportation described in subsection (d) to an 
attendant to accompany a family member described in subsection (b) if 
the head of an agency determines--
            ``(A) the family member to be accompanied is unable to 
        travel unattended because of age, physical condition, or other 
        reason determined by the head of the agency; and
            ``(B) no other family member who is eligible for travel and 
        transportation under subsection (a) is able to serve as an 
        attendant for the family member.
    ``(3) If no family member of an employee described in subsection 
(b) is able to travel to the repatriation site of the employee, travel 
and transportation described in subsection (d) may be provided to not 
more than 2 persons related to and selected by the employee.
    ``(b) Covered Employees.--An employee described in this subsection 
is an employee (as defined in section 2105 of this title) who--
            ``(1) was held captive, as determined by the head of an 
        agency concerned; and
            ``(2) is repatriated to a site inside or outside the United 
        States.
    ``(c) Eligible Family Members.--In this section, the term `family 
member' has the meaning given the term in section 411h(b) of title 37.
    ``(d) Travel and Transportation Authorized.--(1) The transportation 
authorized by subsection (a) is round-trip transportation between the 
home of the family member (or home of the attendant or person provided 
transportation under paragraph (2) or (3) of subsection (a), as the 
case may be) and the location of the repatriation site at which the 
employee is located.
    ``(2) In addition to the transportation authorized by subsection 
(a), the head of an agency may provide a per diem allowance or 
reimbursement for the actual and necessary expenses of the travel, or a 
combination thereof, but not to exceed the rates established for such 
allowances and expenses under section 404(d) of title 37.
    ``(3) The transportation authorized by subsection (a) may be 
provided by any of the means described in section 411h(d)(1) of title 
37.
    ``(4) An allowance under this subsection may be paid in advance.
    ``(5) Reimbursement payable under this subsection may not exceed 
the cost of government-procured round-trip air travel.''.
    (2) The table of sections at the beginning of chapter 57 of such 
title is amended by adding at the end the following new item:

``5760. Travel and transportation allowances: transportation of family 
                            members incident to the repatriation of 
                            employees held captive.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. ENHANCEMENT OF DEATH GRATUITY AND LIFE INSURANCE BENEFITS FOR 
              DEATHS FROM COMBAT-RELATED CAUSES OR CAUSES INCURRED IN 
              COMBAT OPERATIONS OR AREAS.

    (a) Increased Amount of Death Gratuity.--
            (1) In general.--Section 1478 of title 10, United States 
        Code, is amended--
                    (A) in subsection (a), by inserting ``, except as 
                provided in subsection (c)'' after ``$12,000'';
                    (B) by redesignating subsection (c) as subsection 
                (d); and
                    (C) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c) The death gratuity payable under sections 1475 through 1477 
of this title is $100,000 in the case of a death resulting from wounds, 
injuries, or illnesses that are--
            ``(1) incurred as described in section 1413a(e)(2) of this 
        title; or
            ``(2) incurred in an operation or area designated as a 
        combat operation or a combat zone, respectively, by the 
        Secretary of Defense under section 1967(e)(1)(A) of title 
        38.''.
            (2) Conforming amendment.--Subsection (a) of such section, 
        as amended by paragraph (1), is further amended by striking 
        ``(as adjusted under subsection (c))'' and inserting ``(as 
        adjusted under subsection (d))''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2005, immediately after the 
        termination of the amendments made to section 1478 of title 10, 
        United States Code, by the Emergency Supplemental 
        Appropriations Act for Defense, the Global War on Terror, and 
        Tsunami Relief, 2005 (Public Law 109-13), and shall apply with 
        respect to deaths occurring on or after that date.
    (b) Servicemembers' Group Life Insurance Enhancements.--
            (1) Increased maximum amount of sgli.--Section 1967 of 
        title 38, United States Code, is amended--
                    (A) in subsection (a)(3)(A), by striking clause (i) 
                and inserting the following new clause:
            ``(i) In the case of a member--
                    ``(I) $400,000 or such lesser amount as the member 
                may elect as provided in subparagraph (B);
                    ``(II) in the case of a member covered by 
                subsection (e), the amount provided for or elected by 
                the member under subclause (I) plus the additional 
                amount of insurance provided for the member by 
                subsection (e); or
                    ``(III) in the case of a member covered by 
                subsection (e) who has made an election under paragraph 
                (2)(A) not to be insured under this subchapter, the 
                amount of insurance provided for the member by 
                subsection (e).''; and
                    (B) in subsection (d), by striking ``$250,000'' and 
                inserting ``$400,000''.
            (2) Increments of decreased amounts electable by members.--
        Subsection (a)(3)(B) of such section is amended by striking 
        ``member or spouse'' in the last sentence and inserting 
        ``member, be evenly divisible by $50,000 and, in the case of a 
        member's spouse''.
            (3) Additional amount for members serving in certain areas 
        or operations.--
                    (A) Increased amount.--Section 1967 of such title 
                is further amended--
                            (i) by redesignating subsection (e) as 
                        subsection (f); and
                            (ii) by inserting after subsection (d) the 
                        following new subsection (e):
    ``(e)(1) A member covered by this subsection is any member as 
follows:
            ``(A) Any member who dies as a result of one or more 
        wounds, injuries, or illnesses incurred while serving in an 
        operation or area that the Secretary of Defense designates, in 
        writing, as a combat operation or a zone of combat, 
        respectively, for purposes of this subsection.
            ``(B) Any member who formerly served in an operation or 
        area so designated and whose death is determined (under 
        regulations prescribed by the Secretary of Defense) to be the 
        direct result of injury or illness incurred or aggravated while 
        so serving.
    ``(2) The additional amount of insurance under this subchapter that 
is provided for a member by this subsection is $150,000, except that in 
a case in which the amount provided for or elected by the member under 
subsection (a)(3)(A)(i)(I) exceeds $250,000, the additional amount of 
insurance under this subchapter that is provided for the member by this 
subsection shall be reduced to such amount as is necessary to comply 
with the limitation in paragraph (3).
    ``(3) The total amount of insurance payable for a member under this 
subchapter may not exceed $400,000.
    ``(4) While a member is serving in an operation or area designated 
as described in paragraph (1), the cost of insurance of the member 
under this subchapter that is attributable to $150,000 of insurance 
coverage shall, at the election of the Secretary concerned--
            ``(A) be contributed as provided in section 1969(b)(2) of 
        this title, rather through deduction or withholding from the 
        member's pay; or
            ``(B) if deducted or withheld from the member's pay, be 
        reimbursed to the member through such mechanism as the 
        Secretary concerned determines appropriate.''.
                    (B) Funding.--Section 1969(b) of such title is 
                amended--
                            (i) by inserting ``(1)'' after ``(b)''; and
                            (ii) by adding at the end the following new 
                        paragraph:
    ``(2) For each month for which a member insured under this 
subchapter is serving in an operation or area designated as described 
by paragraph (1)(A) of section 1967(e) of this title, there may, at the 
election of the Secretary concerned under paragraph (4)(A) of such 
section, be contributed from the appropriation made for active duty pay 
of the uniformed service concerned an amount determined by the 
Secretary and certified to the Secretary concerned to be the cost of 
Servicemembers' Group Life Insurance which is traceable to the cost of 
providing insurance for the member under section 1967 of this title in 
the amount of $150,000.''.
            (4) Conforming amendment.--Section 1967(a)(2)(A) of such 
        title is amended by inserting before the period at the end the 
        following: ``, except with respect to insurance provided under 
        paragraph (3)(A)(i)(III)''.
            (5) Coordination with vgli.--Section 1977(a) of such title 
        is amended--
                    (A) by striking ``$250,000'' each place it appears 
                and inserting ``$400,000''; and
                    (B) by adding at the end of paragraph (1) the 
                following new sentence: ``Any additional amount of 
                insurance provided a member under section 1967(e) of 
                this title may not be treated as an amount for which 
                Veterans' Group Life Insurance shall be issued under 
                this section.''.
            (6) Requirements regarding elections of members to reduce 
        or decline insurance.--Section 1967(a) of such title is further 
        amended--
                    (A) in paragraph (2), by adding at the end the 
                following new subparagraph:
    ``(C) Pursuant to regulations prescribed by the Secretary of 
Defense, notice of an election of a member with a spouse not to be 
insured under this subchapter, or to be insured under this subchapter 
in an amount less than the maximum amount provided under paragraph 
(3)(A)(i)(I), shall be provided to the spouse of the member.''; and
                    (B) in paragraph (3), by adding at the end the 
                following new subparagraph:
    ``(D) Whenever a member who is not married elects not to be insured 
under this subchapter, or to be insured under this subchapter in an 
amount less than the maximum amount provided for under subparagraph 
(A)(i)(I), the Secretary concerned shall provide a notice of such 
election to any person designated by the member as a beneficiary or 
designated as the member's next-of-kin for the purpose of emergency 
notification, as determined under regulations prescribed by the 
Secretary of Defense.''.
            (7) Requirement regarding redesignation of beneficiaries.--
        Section 1970 of such title is amended by adding at the end the 
        following new subsection:
    ``(j) A member with a spouse may not modify the beneficiary or 
beneficiaries designated by the member under subsection (a) without 
providing written notice of such modification to the spouse.''.
            (8) Effective date.--This subsection and the amendments 
        made by this subsection shall take effect on October 1, 2005, 
        immediately after the termination of the amendments made to 
        sections 1967, 1969, 1970, and 1977 of title 38, United States 
        Code, by the Emergency Supplemental Appropriations Act for 
        Defense, the Global War on Terror, and Tsunami Relief, 2005 
        (Public Law 109-13).

                       Subtitle E--Other Matters

SEC. 651. PAYMENT OF EXPENSES OF MEMBERS OF THE ARMED FORCES TO OBTAIN 
              PROFESSIONAL CREDENTIALS.

    (a) Payment Authorized.--Chapter 101 of title 10, United States 
Code, is amended by inserting after section 2007 the following new 
section:
``Sec. 2007a. Payment of expenses of members of the armed forces to 
              obtain professional credentials
    ``(a) Payment Authorized.--Except as provided in subsection (b), 
the Secretary of Defense may pay for--
            ``(1) expenses of members of the armed forces to obtain 
        professional credentials, including expenses of professional 
        accreditation, State-imposed and professional licenses, and 
        professional certification; and
            ``(2) examinations to obtain such credentials.
    ``(b) Exception.--The authority in subsection (a) may not be 
exercised on behalf of any member of the armed forces for expenses to 
obtain the basic qualifications for membership in a profession or 
officer community.
    ``(c) Funds Available.--Funds appropriated or otherwise made 
available to the Secretary of Defense may be used to pay expenses under 
subsection (a).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2007a. Payment of expenses of members of the armed forces to obtain 
                            professional credentials.''.

SEC. 652. PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT SAVINGS PLAN FOR 
              INITIAL ENLISTEES IN THE ARMED FORCES.

    (a) Pilot Program Required.--During fiscal year 2006, the Secretary 
of the Army shall carry out within the Army a pilot program in order to 
assess the extent to which contributions by the military departments to 
the Thrift Savings Fund on behalf of members of the Armed Forces 
described in subsection (b) would--
            (1) assist the Armed Forces in recruiting efforts; and
            (2) assist such members in establishing habits of financial 
        responsibility during their initial enlistments in the Armed 
        Forces.
    (b) Covered Members.--A member of the Armed Forces described in 
this subsection is a member of the Armed Forces who is serving in the 
Armed Forces under an initial enlistment for a period of not less than 
two years.
    (c) Contributions to Thrift Savings Fund.--
            (1) In general.--The Secretary of the Army may make 
        contributions to the Thrift Savings Fund on behalf of any 
        participant in the pilot program under subsection (a) for any 
        pay period during the period of the pilot program.
            (2) Limitations.--The amount of any contributions made with 
        respect to a member under paragraph (1) shall be subject to the 
        provisions of section 8432(c) of title 5, United States Code.
    (d) Report.--
            (1) In general.--Not later than February 1, 2007, the 
        Secretary of Defense shall submit to the congressional defense 
        committees a report on the pilot program under subsection (a).
            (2) Elements.--The report shall include the following:
                    (A) A description of the pilot program, including 
                the number of members of the Army who participated in 
                the pilot program and the contributions made by the 
                Army to the Thrift Savings Fund on behalf of such 
                members during the period of the pilot program.
                    (B) An assessment, based on the pilot program and 
                taking into account the views of officers and senior 
                enlisted personnel of the Army, and of field 
                recruiters, of the extent to which contributions by the 
                military departments to the Thrift Savings Fund on 
                behalf of members of the Armed Forces similar to the 
                participants in the pilot program--
                            (i) would enhance the recruiting efforts of 
                        the Armed Forces; and
                            (ii) would assist such members in 
                        establishing habits of financial responsibility 
                        during their initial enlistments in the Armed 
                        Forces.

                         TITLE VII--HEALTH CARE

                      Subtitle A--Benefits Matters

SEC. 701. CLARIFICATION OF ELIGIBILITY OF RESERVE OFFICERS FOR HEALTH 
              CARE PENDING ACTIVE DUTY FOLLOWING ISSUANCE OF ORDERS TO 
              ACTIVE DUTY.

    Section 1074(a)(2)(B)(iii) of title 10, United States Code, is 
amended by inserting before the semicolon the following: ``, or the 
orders have been issued but the member has not entered on active 
duty''.

SEC. 702. LIMITATION ON DEDUCTIBLE AND COPAYMENT REQUIREMENTS FOR 
              NURSING HOME RESIDENTS UNDER THE PHARMACY BENEFITS 
              PROGRAM.

    Section 1074g(a)(6) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(C) In the case of a beneficiary who is a resident of a nursing 
home and who is required, by State law, to use nursing home pharmacy 
services utilizing pre-packaged pharmaceuticals, any deductible or 
copayment requirements for such pharmaceuticals under the cost sharing 
requirements may not exceed such deductible or copayment requirements 
as are applicable under the cost sharing requirements to a beneficiary 
who uses a network provider pharmacy under the pharmacy benefits 
program.''.

SEC. 703. ELIGIBILITY OF SURVIVING ACTIVE DUTY SPOUSES OF DECEASED 
              MEMBERS FOR ENROLLMENT AS DEPENDENTS IN A TRICARE DENTAL 
              PLAN.

    Section 1076a(k)(2) of title 10, United States Code, is amended--
            (1) by striking ``under subsection (f), or'' and inserting 
        ``under subsection (f),''; and
            (2) by inserting after ``is not enrolled because the 
        dependent is a child under the minimum age for enrollment,'' 
        the following: ``or is not enrolled because the dependent is a 
        spouse who did not qualify for enrollment on the date of the 
        member's death because the spouse was also on active duty for a 
        period of more than 30 days on the date of the member's 
        death,''.

SEC. 704. INCREASED PERIOD OF CONTINUED TRICARE PRIME COVERAGE OF 
              CHILDREN OF MEMBERS OF THE UNIFORMED SERVICES WHO DIE 
              WHILE SERVING ON ACTIVE DUTY FOR A PERIOD OF MORE THAN 30 
              DAYS.

    (a) Period of Eligibility.--Section 1079(g) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)'';
            (2) by striking the second sentence; and
            (3) by adding at the end the following new paragraph:
    ``(2) In addition to any continuation of eligibility for benefits 
under paragraph (1), when a member dies while on active duty for a 
period of more than 30 days, the member's dependents who are receiving 
benefits under a plan covered by subsection (a) shall continue to be 
eligible for benefits under TRICARE Prime during the three-year period 
beginning on the date of the member's death, except that, in the case 
of such a dependent of the deceased who is described by subparagraph 
(D) or (I) of section 1072(2) of this title, the period of continued 
eligibility shall be the longer of the following periods beginning on 
such date:
            ``(A) Three years.
            ``(B) The period ending on the date on which such dependent 
        attains 21 years of age.
            ``(C) In the case of such a dependent who, at 21 years of 
        age, is enrolled in a full-time course of study in a secondary 
        school or in a full-time course of study in an institution of 
        higher education approved by the administering Secretary and 
        was, at the time of the member's death, in fact dependent on 
        the member for over one-half of such dependent's support, the 
        period ending on the earlier of the following dates:
                    ``(i) The date on which such dependent ceases to 
                pursue such a course of study, as determined by the 
                administering Secretary.
                    ``(ii) The date on which such dependent attains 23 
                years of age.
    ``(3) For the purposes of paragraph (2)(C), a dependent shall be 
treated as being enrolled in a full-time course of study in an 
institution of higher education during any reasonable period of 
transition between the dependent's completion of a full-time course of 
study in a secondary school and the commencement of an enrollment in a 
full-time course of study in an institution of higher education, as 
determined by the administering Secretary.
    ``(4) The terms and conditions under which health benefits are 
provided under this chapter to a dependent of a deceased member under 
paragraph (2) shall be the same as those that would apply to the 
dependent under this chapter if the member were living and serving on 
active duty for a period of more than 30 days.
    ``(5) In this subsection, the term `TRICARE Prime' means the 
managed care option of the TRICARE program.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 7, 2001, and shall apply with respect to deaths 
occurring on or after that date.

           Subtitle B--Planning, Programming, and Management

SEC. 711. TRICARE STANDARD COORDINATORS IN TRICARE REGIONAL OFFICES.

    (a) Coordinator in Each Regional Office.--
            (1) In general.--In each TRICARE Regional Office there 
        shall be a position the responsibilities of which shall be the 
        monitoring, oversight, and improvement of the TRICARE Standard 
        option in the TRICARE region concerned.
            (2) Designation.--The position under paragraph (1) in a 
        TRICARE Regional Office shall be filled by an individual in 
        such Regional Office designated for that purpose.
    (b) Duties of Position.--
            (1) In general.--The specific duties of the positions 
        required under subsection (a) shall be as set forth in 
        regulations prescribed by the Secretary of Defense, in 
        consultation with the other administering Secretaries.
            (2) Elements.--The duties shall include--
                    (A) identifying health care providers who will 
                participate in the TRICARE program and provide the 
                TRICARE Standard option under that program;
                    (B) communicating with beneficiaries who receive 
                the TRICARE Standard option;
                    (C) outreach to community health care providers to 
                encourage their participation in the TRICARE program; 
                and
                    (D) publication of information that identifies 
                health care providers in the TRICARE region concerned 
                who provide the TRICARE Standard option.
    (c) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary shall submit to the congressional defense 
committees a report setting forth the plans to implement the 
requirements of the section.
    (d) Definitions.--In this section:
            (1) The terms ``administering Secretaries'' and ``TRICARE 
        program'' have the meaning given such terms in section 1072 of 
        title 10, United States Code.
            (2) The term ``TRICARE Standard'' means the Civilian Health 
        and Medical Program of the Uniformed Services option under the 
        TRICARE program.

SEC. 712. REPORT ON DELIVERY OF HEALTH CARE BENEFITS THROUGH MILITARY 
              HEALTH CARE SYSTEM.

    (a) Report Required.--Not later than February 1, 2007, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the delivery of health care benefits through the 
military health care system.
    (b) Elements.--The report under subsection (a) shall include the 
following:
            (1) An analysis of the organization and costs of delivering 
        health care benefits to current and retired members of the 
        Armed Forces and their families.
            (2) An analysis of the costs of ensuring medical readiness 
        throughout the Armed Forces in support of national security 
        objectives.
            (3) An assessment of the role of health benefits in the 
        recruitment and retention of members of the Armed Forces, 
        whether in the regular components or the reserve components of 
        the Armed Forces.
            (4) An assessment of the experience of the military 
        departments during fiscal years 2003, 2004, and 2005 in 
        recruitment and retention of military and civilian medical and 
        dental personnel, whether in the regular components or the 
        reserve components of the Armed Forces, in light of military 
        and civilian medical manpower requirements.
            (5) A description of requirements for graduate medical 
        education for military medical care providers and options for 
        meeting such requirements, including civilian medical training 
        programs.
    (c) Recommendations.--In addition to the matters specified in 
subsection (b), the report under subsection (a) shall also include such 
recommendations for legislative or administrative action as the 
Secretary considers necessary to improve efficiency and quality in the 
provision of health care benefits through the military health care 
system, including recommendations on--
            (1) the organization and delivery of health care benefits;
            (2) mechanisms required to measure costs more accurately;
            (3) mechanisms required to measure quality of care, and 
        access to care, more accurately;
            (4) other improvements in the efficiency of the military 
        health care system; and
            (5) any other matters the Secretary considers appropriate 
        to improve the efficiency and quality of military health care 
        benefits.

SEC. 713. COMPTROLLER GENERAL REPORT ON DIFFERENTIAL PAYMENTS TO 
              CHILDREN'S HOSPITALS FOR HEALTH CARE FOR CHILDREN 
              DEPENDENTS UNDER TRICARE.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the effectiveness of the current system of 
differential payments to children's hospitals for health care services 
for severely ill dependent children of members of the uniformed 
services under the TRICARE program in achieving the objective of 
securing adequate health care services for such dependent children 
under that program.
    (b) Elements of Study.--The study required by subsection (a) shall 
include the following:
            (1) A description of the current participation of 
        children's hospitals in the TRICARE program.
            (2) An assessment of the current system of differential 
        payments to children's hospitals for health care services 
        described in that subsection, including an assessment of--
                    (A) the extent to which the calculation of such 
                differential payments takes into account the complexity 
                and extraordinary resources required for the provision 
                of such health care services;
                    (B) the extent to which such differential payments 
                provide appropriate compensation to such hospitals for 
                the provision of such services; and
                    (C) any obstacles or challenges to the development 
                of future modifications to the system of differential 
                payments.
            (3) An assessment of the adequacy of the access of 
        dependent children described in that subsection to specialized 
        hospital services for their illnesses under the TRICARE 
        program.
    (c) Reports.--Not later than May 1, 2006, the Comptroller General 
shall submit to the Secretary of Defense and the congressional defense 
committees a report on the study required by subsection (a), together 
with such recommendations, if any, as the Comptroller General considers 
appropriate for modifications of the current system of differential 
payments to children's hospitals in order to achieve the objective 
described in that subsection.
    (d) Transmittal to Congress.--
            (1) In general.--Not later than November 1, 2006, the 
        Secretary of Defense shall transmit to the congressional 
        defense committees the report submitted by the Comptroller 
        General to the Secretary under subsection (c).
            (2) Implementation of modifications.--If the report under 
        paragraph (1) includes recommendations of the Comptroller 
        General for modifications of the current system of differential 
        payments to children's hospitals, the Secretary shall transmit 
        with the report--
                    (A) a proposal for such legislative or 
                administration action as may be required to implement 
                such modifications; and
                    (B) an assessment and estimate of the costs 
                associated with the implementation of such 
                modifications.
    (e) Definitions.--In this section:
            (1) Differential payments to children's hospitals.--The 
        term ``differential payments to children's hospitals'' means 
        the additional amounts paid to children's hospitals under the 
        TRICARE program for health care procedures for severely ill 
        children in order to take into account the additional costs 
        associated with such procedures for such children when compared 
        with the costs associated with such procedures for adults and 
        other children.
            (2) TRICARE program.--The term ``TRICARE program'' has the 
        meaning given that term in section 1072(7) of title 10, United 
        States Code.

SEC. 714. REPEAL OF REQUIREMENT FOR COMPTROLLER GENERAL REVIEWS OF 
              CERTAIN DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS 
              AFFAIRS PROJECTS ON SHARING OF HEALTH CARE RESOURCES.

    (a) Joint Incentives Program.--Section 8111(d) of title 38, United 
States Code, is amended--
            (1) by striking paragraph (3); and
            (2) by redesignating paragraph (4) as paragraph (3).
    (b) Health Care Resources Sharing and Coordination Project.--
Section 722 of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2595; 38 U.S.C. 8111 
note) is amended--
            (1) by striking subsection (h);
            (2) by redesignating subsection (i) as subsection (h); and
            (3) in paragraph (2) of subsection (h), as so redesignated, 
        by striking ``based on recommendations'' and all that follows 
        and inserting ``as determined by the Secretaries based on 
        information available to the Secretaries to warrant such 
        action.''.

SEC. 715. SURVEYS ON TRICARE STANDARD.

    Section 723(a) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1532; 10 U.S.C. 1073 note) is 
amended by adding at the end the following new paragraph:
    ``(4) The surveys required by paragraph (1) shall include questions 
designed to determine from health care providers participating in such 
surveys whether such providers are aware of the TRICARE program, what 
percentage of the current patient population of such providers receive 
any benefit option under the TRICARE program, and whether such 
providers accept patients under the medicare program or new patients 
under the medicare program.''.

SEC. 716. MODIFICATION OF HEALTH CARE QUALITY INFORMATION AND 
              TECHNOLOGY ENHANCEMENT REPORT REQUIREMENTS.

    Section 723(e) of the National Defense Authorization Act for Fiscal 
Year 2000 (10 U.S.C. 1071 note) is amended by striking paragraphs (1) 
through (4) and inserting the following new paragraphs:
            ``(1) Quality measures, including structure, process, and 
        outcomes concerning--
                    ``(A) patient safety;
                    ``(B) timeliness and accessibility of care;
                    ``(C) patient satisfaction; and
                    ``(D) the use of evidence-based practices.
            ``(2) Population health.
            ``(3) Biosurveillance.''.

SEC. 717. MODIFICATION OF AUTHORITIES RELATING TO PATIENT CARE 
              REPORTING AND MANAGEMENT SYSTEM.

    (a) Repeal of Requirement to Locate Department of Defense Patient 
Safety Center Within Armed Forces Institute of Pathology.--Subsection 
(c)(3) of section 754 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into lay by Public 
Law 106-398; 114 Stat. 1654A-196) is amended by striking ``within the 
Armed Forces Institute of Pathology''.
    (b) Renaming of MedTeams Program.--The caption of subsection (d) of 
such section is amended by striking ``MedTeams'' and inserting 
``Medical Team Training''.

                       Subtitle C--Other Matters

SEC. 731. REPORT ON ADVERSE HEALTH EVENTS ASSOCIATED WITH USE OF ANTI-
              MALARIAL DRUGS.

    (a) Study Required.--
            (1) In general.--The Secretary of Defense shall conduct a 
        study of adverse health events that may be associated with use 
        of anti-malarial drugs, including mefloquine.
            (2) Participation of certain researchers.--The Secretary 
        shall ensure the participation in the study of epidemiological 
        and clinical researchers of the Federal Government outside the 
        Department of Defense, and of epidemiological and clinical 
        researchers outside the Federal Government.
    (b) Matters Covered.--The study required by subsection (a) shall 
include the following:
            (1) A comparison of adverse health events that may be 
        associated with different anti-malarial drugs, including 
        mefloquine.
            (2) An analysis of the extent to which mefloquine may be a 
        risk factor contributing to suicides among members of the Armed 
        Forces.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report on the study required by subsection (a).

SEC. 732. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF POST 
              TRAUMATIC STRESS DISORDER AND OTHER MENTAL HEALTH 
              CONDITIONS.

    (a) Pilot Projects Required.--The Secretary of Defense shall carry 
out not less than three pilot projects to evaluate the efficacy of 
various approaches to improving the capability of the military and 
civilian health care systems to provide early diagnosis and treatment 
of Post Traumatic Stress Disorder (PTSD) and other mental health 
conditions.
    (b) Pilot Project Requirements.--
            (1) Mobilization-demobilization facility.--
                    (A) In general.--One of the pilot projects under 
                subsection (a) shall be carried out at a military 
                medical facility at a large military installation at 
                which the mobilization or demobilization of members of 
                the Armed Forces occurs.
                    (B) Elements.--The pilot project under this 
                paragraph shall be designed to evaluate and produce 
                effective diagnostic and treatment approaches for use 
                by primary care providers in the military health care 
                system in order to improve the capability of such 
                providers to diagnose and treat Post Traumatic Stress 
                Disorder in a manner that avoids the referral of 
                patients to specialty care by a psychiatrist or other 
                mental health professional.
            (2) National guard or reserve facility.--
                    (A) In general.--One of the pilot projects under 
                subsection (a) shall be carried out at the location of 
                a National Guard or Reserve unit or units that are 
                located more than 40 miles from a military medical 
                facility and whose personnel are served primarily by 
                civilian community health resources.
                    (B) Elements.--The pilot project under this 
                paragraph shall be designed--
                            (i) to evaluate approaches for providing 
                        evidence-based clinical information on Post 
                        Traumatic Stress Disorder to civilian primary 
                        care providers; and
                            (ii) to develop educational materials and 
                        other tools for use by members of the National 
                        Guard or Reserve who come into contact with 
                        other members of the National Guard or Reserve 
                        who may suffer from Post Traumatic Stress 
                        Disorder in order to encourage and facilitate 
                        early reporting and referral for treatment.
            (3) Internet-based diagnosis and treatment.--One of the 
        pilot projects under subsection (a) shall be designed to 
        evaluate--
                    (A) Internet-based automated tools available to 
                military and civilian health care providers for the 
                early diagnosis and treatment of Post Traumatic Stress 
                Disorder, and for tracking patients who suffer from 
                Post Traumatic Stress Disorder; and
                    (B) Internet-based tools available to family 
                members of members of the Armed Forces in order to 
                assist such family members in the identification of the 
                emergence of Post Traumatic Stress Disorder.
    (c) Report.--Not later than June 1, 2006, the Secretary shall 
submit to the congressional defense committees a report on the pilot 
projects to be carried out under this section. The report shall include 
a description of each such pilot project, including the location of the 
pilot projects under paragraphs (2) and (3) of subsection (b), and the 
scope and objectives of each such pilot project.

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

             Subtitle A--Acquisition Policy and Management

SEC. 801. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Inspector General Reviews and Determinations.--
            (1) In general.--For each non-defense agency of the Federal 
        Government that procured property or services in excess of 
        $100,000,000 on behalf of the Department of Defense during 
        fiscal year 2005, the Inspector General of the Department of 
        Defense and the Inspector General of such non-defense agency 
        shall, not later than March 15, 2006, jointly--
                    (A) review--
                            (i) the procurement policies, procedures, 
                        and internal controls of such non-defense 
                        agency that are applicable to the procurement 
                        of property and services on behalf of the 
                        Department by such non-defense agency; and
                            (ii) the administration of those policies, 
                        procedures, and internal controls; and
                    (B) determine in writing whether--
                            (i) such non-defense agency is compliant 
                        with defense procurement requirements;
                            (ii) such non-defense agency is not 
                        compliant with defense procurement 
                        requirements, but made significant progress 
                        during 2005 toward ensuring compliance with 
                        defense procurement requirements; or
                            (iii) neither of the conclusions stated in 
                        clauses (i) and (ii) is correct in the case of 
                        such non-defense agency.
            (2) Actions following certain determinations.--If the 
        Inspectors General determine under paragraph (1) that the 
        conclusion stated in clause (ii) or (iii) of subparagraph (B) 
        of such paragraph is correct in the case of a non-defense 
        agency, those Inspectors General shall, not later than March 
        15, 2007, jointly--
                    (A) conduct a second review, as described in 
                paragraph (1)(A), regarding such non-defense agency's 
                procurement of property or services on behalf of the 
                Department of Defense in fiscal year 2006; and
                    (B) determine in writing whether such non-defense 
                agency is or is not compliant with defense procurement 
                requirements.
    (b) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a non-defense agency is compliant with 
defense procurement requirements if such non-defense agency's 
procurement policies, procedures, and internal controls applicable to 
the procurement of products and services on behalf of the Department of 
Defense, and the manner in which they are administered, are adequate to 
ensure such non-defense agency's compliance with the requirements of 
laws and regulations that apply to procurements of property and 
services made directly by the Department of Defense.
    (c) Memoranda of Understanding Between Inspectors General.--
            (1) In general.--Not later than 30 days after the date of 
        the enactment of this Act, the Inspector General of the 
        Department of Defense and the Inspector General of each non-
        defense agency referred to in subsection (a) shall enter into a 
        memorandum of understanding with each other to carry out the 
        reviews and make the determinations required by this section.
            (2) Scope of memoranda.--The Inspector General of the 
        Department of Defense and the Inspector General of a non-
        defense agency may by mutual agreement conduct separate reviews 
        of the procurement of property and services on behalf of the 
        Department of Defense that are conducted by separate business 
        units, or under separate governmentwide acquisition contracts, 
        of such non-defense agency. In any case where such separate 
        reviews are conducted, the Inspectors General shall make 
        separate determinations under paragraphs (1) and (2) of 
        subsection (a), as applicable, with respect to each such 
        separate review.
    (d) Limitations on Procurements on Behalf of Department of 
Defense.--
            (1) Limitation during review period.--After March 15, 2006, 
        and before March 16, 2007, no official of the Department of 
        Defense may, except as provided in subsection (e) or (f), 
        order, purchase, or otherwise procure property or services in 
        an amount in excess of $100,000 through a non-defense agency 
        for which a determination described in paragraph (1)(B)(iii) of 
        subsection (a) has been made under that subsection.
            (2) Limitation after review period.--After March 15, 2007, 
        no official of the Department of Defense may, except as 
        provided in subsection (e) or (f), order, purchase, or 
        otherwise procure property or services in an amount in excess 
        of $100,000 through a non-defense agency that, having been 
        subject to review under this section, has not been determined 
        under this section as being compliant with defense procurement 
        requirements.
    (e) Exception From Applicability of Limitations.--
            (1) Exception.--No limitation applies under subsection (d) 
        with respect to the procurement of property and services on 
        behalf of the Department of Defense by a particular non-defense 
        agency during any period that there is in effect a 
        determination of the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics, made in writing, that 
        it is necessary in the interest of the Department of Defense to 
        continue to procure property and services through such non-
        defense agency.
            (2) Applicability of determination.--A written 
        determination with respect to a non-defense agency under 
        paragraph (1) is in effect for the period, not in excess of one 
        year, that the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics shall specify in the written 
        determination. The Under Secretary may extend from time to 
        time, for up to one year at a time, the period for which the 
        written determination remains in effect.
    (f) Termination of Applicability of Limitations.--Subsection (d) 
shall cease to apply to a non-defense agency on the date on which the 
Inspector General of the Department of Defense and the Inspector 
General of that agency jointly--
            (1) determine that such non-defense agency is compliant 
        with defense procurement requirements; and
            (2) notify the Secretary of Defense of that determination.
    (g) Identification of Procurements Made During a Particular Fiscal 
Year.--For the purposes of subsection (a), a procurement shall be 
treated as being made during a particular fiscal year to the extent 
that funds are obligated by the Department of Defense for that 
procurement in that fiscal year.
    (h) Inapplicability to Certain GSA Contracts.--This section does 
not apply as follows:
            (1) To Client Support Centers of the Federal Technology 
        Service of the General Services Administration, which are 
        subject to review under section 802 of the Ronald W. Reagan 
        National Defense Authorization Act for Fiscal Year 2005 (Public 
        Law 108-375; 118 Stat. 2004; 10 U.S.C. 2302).
            (2) To any purchase through the multiple award schedules 
        established by the Administrator of General Services, as 
        described in section 2302(2)(C) of title 10, United States 
        Code, unless such purchase is made through--
                    (A) a non-defense agency other than the General 
                Services Administration; or
                    (B) a business unit of the General Services 
                Administration that is not responsible for 
                administering the multiple award schedules program.
    (i) Definitions.--In this section:
            (1) The term ``non-defense agency'' means a department or 
        agency of the Federal Government outside the Department of 
        Defense, except as excluded under subsection (h).
            (2) The term ``governmentwide acquisition contract'', with 
        respect to a non-defense agency, means a task or delivery order 
        contract that--
                    (A) is entered into by the non-defense agency; and
                    (B) may be used as the contract under which 
                property or services are procured for one or more other 
                departments or agencies of the Federal Government.

SEC. 802. CONTRACT SUPPORT ACQUISITION CENTERS.

    (a) Establishment.--
            (1) Organization; duties.--Subchapter I of chapter 8 of 
        title 10, United States Code, is amended by adding at the end 
        the following new section:
``Sec. 197. Contract Support Acquisition Centers
    ``(a) Establishment.--(1) The Secretary of Defense shall establish 
within the Defense Logistics Agency a Defense Contract Support 
Acquisition Center.
    ``(2) The Secretary of each military department shall establish a 
Contract Support Acquisition Center for that military department.
    ``(b) Director.--(1) The Director of a Contract Support Acquisition 
Center is the head of the Center.
    ``(2)(A) The Secretary of Defense shall appoint the Director of the 
Defense Contract Support Acquisition Center.
    ``(B) The Secretary of a military department shall appoint the 
Director of the Contract Support Acquisition Center of that department.
    ``(3) The Director of a Contract Support Acquisition Center shall 
be selected from among commissioned officers of the armed forces on 
active duty and senior civilian officers and employees of the 
Department of Defense who have substantial experience in the 
acquisition of contract services.
    ``(c) Duties Regarding Acquisitions.--(1)(A) The Director of the 
Defense Contract Support Acquisition Center shall act as the executive 
agent within the Department of Defense for each acquisition of contract 
services in excess of the simplified acquisition threshold for the 
Department of Defense, other than an acquisition referred to in 
subparagraph (B).
    ``(B) The Director of the Contract Support Acquisition Center of a 
military department shall act as the executive agent within that 
military department for each acquisition of contract services in excess 
of the simplified acquisition threshold for such military department.
    ``(2) In carrying out paragraph (1), the Director of a Center 
shall--
            ``(A) develop and maintain policies, procedures, and best 
        practices guidelines addressing the acquisition of contract 
        services for the Secretary appointing the Director, including 
        policies, procedures, and best practices guidelines for--
                    ``(i) acquisition planning;
                    ``(ii) solicitation and contract award;
                    ``(iii) requirements development and management;
                    ``(iv) contract tracking and oversight;
                    ``(v) performance evaluation; and
                    ``(vi) risk management;
            ``(B) assign responsibility for carrying out the 
        acquisition of contract services to employees of the Center and 
        other appropriate organizational elements under the 
        jurisdiction of that Secretary;
            ``(C) dedicate fulltime commodity managers to coordinate 
        the acquisition of key categories of services;
            ``(D) ensure that contract services being acquired to meet 
        the Secretary's requirements for those services are acquired by 
        means of a contract, or a task or delivery order, that--
                    ``(i) is in the best interests of the Department of 
                Defense or, in the case of the Director of the Center 
                for a military department, the best interests of that 
                military department; and
                    ``(ii) is entered into or issued, and is managed, 
                in compliance with applicable laws, regulations, and 
                directives, and other applicable requirements;
            ``(E) ensure that competitive procedures and performance-
        based contracting are used to the maximum extent practicable 
        for the acquisition of contract services for that Secretary; 
        and
            ``(F) monitor data collection under section 2330a of this 
        title and periodically conduct a spending analysis to ensure 
        that funds expended for the acquisition of contract services 
        for the Secretary are being expended in the most rational and 
        economical manner practicable.
    ``(d) Duties Regarding Acquisition Personnel.--The Directors of the 
Contract Support Acquisition Centers shall work with appropriate 
officials of the Department of Defense--
            ``(1) to identify the critical skills and competencies 
        needed to carry out the acquisition of contract services on 
        behalf of the Department of Defense; and
            ``(2) to develop a comprehensive strategy for recruiting, 
        training, and deploying employees to meet the requirements for 
        those skills and competencies.
    ``(e) Scope of Authority.--The authority of the Director of a 
Contract Support Acquisition Center under this section applies to 
acquisitions in excess of the simplified acquisition threshold.
    ``(f) Exclusivity of Authority.--(1) After September 30, 2009, no 
officer or employee of the Federal Government outside the Defense 
Contract Support Acquisition Center may, without the prior written 
approval of the Director of the Center or the Secretary of Defense, 
engage in a procurement action for the acquisition of contract services 
for the Department of Defense that is valued in excess of the 
simplified acquisition threshold, other than a procurement action 
covered by paragraph (2).
    ``(2) After September 30, 2009, no officer or employee of the 
Federal Government outside the Contract Support Acquisition Center of a 
military department may, without the prior written approval of the 
Director of the Center, the Secretary of Defense, or the Secretary of 
that military department, engage in a procurement action for the 
acquisition of contract services for that military department that is 
valued in excess of the simplified acquisition threshold.
    ``(3) In this subsection, the term `procurement action' includes 
the following actions:
            ``(A) Entry into a contract or any other form of agreement.
            ``(B) Issuance of a task order, delivery order, or military 
        interdepartmental purchase request.
    ``(g) Staff and Support.--(1) The Secretary appointing the Director 
of a Contract Support Acquisition Center shall ensure that the Director 
of the Center is provided a staff and administrative support that are 
adequate for the Director to perform the duties of the position under 
this section effectively.
    ``(2) The Secretary of Defense may transfer to the Defense Contract 
Support Acquisition Center any personnel within the Department of 
Defense whose principal duty is the acquisition of contract services 
for the Department of Defense.
    ``(3) The Secretary of a military department may transfer to the 
Contract Support Acquisition Center of that military department any 
personnel within such military department whose principal duty is the 
acquisition of contract services for that military department.
    ``(h) Transfers of Nondefense Organizations.--(1) Except as 
provided in paragraph (5), the Secretary of Defense may accept from the 
head of a department or agency outside the Department of Defense a 
transfer to any of the Contract Support Acquisition Centers of all or 
part of any organizational unit of such other department or agency that 
is primarily engaged in the acquisition of contract services if, during 
the most recent year for which data are available before such transfer, 
more than 50 percent of the contract services acquired by such 
organizational unit (determined on the basis of cost) were acquired on 
behalf of the Department of Defense.
    ``(2) The head of a department or agency outside the Department of 
Defense may transfer in accordance with this section an organizational 
unit that is authorized to be accepted under paragraph (1).
    ``(3) A transfer under this subsection may be made and accepted 
only pursuant to a memorandum of understanding that is entered into by 
the head of the department or agency making the transfer and the 
Secretary of Defense.
    ``(4) A transfer of an organizational unit under this section shall 
include the transfer of the personnel of such organizational unit, the 
assets of such organizational unit, and the contracts of such 
organizational unit, to the extent provided in the memorandum of 
understanding governing the transfer of the unit.
    ``(5) This section does not authorize a transfer of the multiple 
award schedule program of the General Services Administration described 
in section 2302(2)(C) of this title.
    ``(i) Simplified Acquisition Threshold.--In this section, the term 
`simplified acquisition threshold' has the meaning given that term in 
section 2302(7) of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such subchapter is amended by adding at the end 
        the following new item:

``197. Contract Support Acquisition Centers.''.
    (b) Implementation.--
            (1) Phased implementation of director's authority to act as 
        executive agent.--Notwithstanding subsections (c)(1) and (e) of 
        section 197 of title 10, United States Code (as added by 
        subsection (a)), the authority of the Director of a Contract 
        Support Acquisition Center to act under such section as 
        executive agent for acquisitions of contract services before 
        October 1, 2009, applies only with respect to--
                    (A) contracts in excess of $10,000,000 that are 
                entered into after September 30, 2006, and before 
                October 1, 2009; and
                    (B) any other acquisitions of contract services 
                that, as designated by the Secretary who appointed the 
                Director, are to be carried out for that Secretary by 
                the Director.
            (2) Procurement management structure.--The Secretary of 
        Defense shall implement section 2330 of title 10, United States 
        Code (relating to a management structure for the procurement of 
        services for the Department of Defense), by designating each 
        Director of the Contract Support Acquisition Center appointed 
        under section 197 of such title (as added by subsection (a)) to 
        act as executive agent for the management of the procurements 
        of services carried out for the Secretary appointing such 
        Director with respect to--
                    (A) all contracts in excess of $10,000,000 that are 
                entered into after September 30, 2006, and before 
                October 1, 2009; and
                    (B) all contracts in excess of the simplified 
                acquisition threshold (as defined in section 2302(7) of 
                such title) that are entered into after September 30, 
                2009.
            (3) Compliance with certain public law 108-375 
        requirements.--For compliance with the requirements of section 
        854 of the Ronald W. Reagan National Defense Authorization Act 
        for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2022, 10 
        U.S.C. 2304 note), the Secretary concerned shall designate the 
        Director of the Contract Support Acquisition Center appointed 
        by that Secretary to act as the executive agent of that 
        Secretary to review and approve the use of a contract for the 
        acquisition of contract services that--
                    (A) is entered into after September 30, 2006, by a 
                department or agency outside the Department of Defense; 
                and
                    (B) if entered into--
                            (i) before October 1, 2009, is valued in 
                        excess of $10,000,000; or
                            (ii) after September 30, 2009, is valued in 
                        excess of the simplified acquisition threshold 
                        (as defined in section 2302(7) of title 10, 
                        United States Code).
            (4) Secretary concerned defined.--In paragraph (3), the 
        term ``Secretary concerned'' means the head of an agency named 
        in subsection (f)(1) of section 854 of the Ronald W. Reagan 
        National Defense Authorization Act for Fiscal Year 2005 (Public 
        Law 108-375; 118 Stat. 2022; 10 U.S.C. 2304 note).

SEC. 803. AUTHORITY TO ENTER INTO ACQUISITION AND CROSS-SERVICING 
              AGREEMENTS WITH REGIONAL ORGANIZATIONS OF WHICH THE 
              UNITED STATES IS NOT A MEMBER.

    (a) Acquisition Agreements.--Section 2341(1) of title 10, United 
States Code, is amended by striking ``of which the United States is a 
member''.
    (b) Cross-Servicing Agreements.--Section 2342(a)(1)(C) of such 
title is amended by striking ``of which the United States is a 
member''.
    (c) Conforming Amendment.--Section 2344(b)(4) of such title is 
amended by striking ``of which the United States is a member''.

SEC. 804. REQUIREMENT FOR AUTHORIZATION FOR PROCUREMENT OF MAJOR WEAPON 
              SYSTEMS AS COMMERCIAL ITEMS.

    (a) Requirement for Authorization.--
            (1) In general.--Chapter 140 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2379. Requirement for authorization for procurement of major 
              weapon systems as commercial items
    ``(a) Requirement for Authorization.--A major weapon system of the 
Department of Defense may be treated as a commercial item, or purchased 
under procedures established for the procurement of commercial items, 
only if specifically authorized by Congress.
    ``(b) Treatment of Subsystems and Components as Commercial Items.--
A subsystem or component of a major weapon system shall be treated as a 
commercial item and purchased under procedures established for the 
procurement of commercial items if such subsystem or component 
otherwise meets the requirements for treatment as a commercial item.
    ``(c) Major Weapon System Defined.--In this section, the term 
`major weapon system' means a weapon system acquired pursuant to a 
major defense acquisition program (as that term is defined in section 
2430 of this title).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 140 of such title is amended by adding at 
        the end the following new item:

``2379. Requirement for authorization for procurement of major weapon 
                            systems as commercial items.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
to contracts entered on or after such date.

SEC. 805. REPORT ON SERVICE SURCHARGES FOR PURCHASES MADE FOR MILITARY 
              DEPARTMENTS THROUGH OTHER DEPARTMENT OF DEFENSE AGENCIES.

    (a) Reports by Military Departments.--For each of fiscal years 2005 
and 2006, the Secretary of each military department shall, not later 
than 60 days after the last day of that fiscal year, submit to the 
Under Secretary of Defense for Acquisition, Technology, and Logistics a 
report on the service charges imposed on such military department for 
purchases in amounts greater than the simplified acquisition threshold 
that were made for that military department during such fiscal year 
through a contract entered into by an agency of the Department of 
Defense other than that military department. The report shall specify 
the amounts of the service charges and identify the services provided 
in exchange for such charges.
    (b) Analysis of Military Department Reports.--Not later than 90 
days after receiving a report of the Secretary of a military department 
for a fiscal year under subsection (a), the Under Secretary of Defense 
for Acquisition, Technology, and Logistics shall review the service 
charges delineated in such report for the acquisitions covered by the 
report and the services provided in exchange for such charges and shall 
compare those charges with the costs of the alternative means for 
making such acquisitions. The analysis shall include the Under 
Secretary's determinations of whether the imposition and amounts of the 
service charges were reasonable.
    (c) Report to Congress.--Not later than April 1, 2006 (for reports 
for fiscal year 2005 under subsection (a)), and not later than April 1, 
2007 (for reports for fiscal year 2006 under subsection (a)), the Under 
Secretary of Defense for Acquisition, Technology, and Logistics shall 
submit to the congressional defense committees a report on the reports 
submitted by the Secretaries of the military departments under 
subsection (a), together with the Under Secretary's determinations 
under subsection (b) with regard to the matters set forth in those 
reports.
    (d) Simplified Acquisition Threshold Defined.--In this section, the 
term ``simplified acquisition threshold'' has the meaning given such 
term in section 4(11) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(11)).

SEC. 806. REVIEW OF DEFENSE ACQUISITION STRUCTURES.

    (a) Review by Defense Acquisition University.--The Defense 
Acquisition University, acting under the direction and authority of the 
Under Secretary of Defense for Acquisition, Technology, and Logistics, 
shall conduct a review of the acquisition structure of the Department 
of Defense, including the acquisition structure of the following:
            (1) Each military department.
            (2) Each defense agency.
            (3) Any other element of the Department of Defense that has 
        an acquisition function.
    (b) Elements.--
            (1) In general.--In reviewing the acquisition structure of 
        an organization under subsection (a), the Defense Acquisition 
        University shall--
                    (A) determine the current structure of the 
                organization;
                    (B) review the evolution of the current structure 
                of the organization, including the reasons for each 
                reorganization of the structure, and identify any 
                acquisition structures or capabilities that have been 
                divested from the organization during the last 15 
                years;
                    (C) identify the capabilities needed by the 
                organization to fulfill its function and assess the 
                capacity of the organization, as currently structured, 
                to provide such capabilities; and
                    (D) identify any gaps, shortfalls, or inadequacies 
                relating to acquisitions in the current structure of 
                the organization.
            (2) Emphasis in review.--In conducting the review of 
        acquisition structures under subsection (a), the University 
        shall place special emphasis on consideration of--
                    (A) structures and processes for joint acquisition, 
                including actions that may be needed to improve such 
                structures and processes; and
                    (B) actions that may be needed to improve 
                acquisition outcomes.
    (c) Priority on Completion of Review of Acquisition Structure of 
Department of Air Force.--In conducting the review of acquisition 
structures under subsection (a), the Defense Acquisition University 
shall give a priority to a review of the acquisition structure of the 
Department of the Air Force.
    (d) Funding.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall provide the Defense Acquisition 
University the funds required to conduct the review under subsection 
(a).
    (e) Reports.--
            (1) Interim report on structure of department of air 
        force.--Not later than one year after the date of the enactment 
        of this Act, the Defense Acquisition University shall submit to 
        the congressional defense committees an interim report 
        addressing the acquisition structure of the Department of the 
        Air Force.
            (2) Final report on review.--Not later than 180 days after 
        the completion of the review required by subsection (a), the 
        University shall submit to the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics a report on the review. 
        The report shall include a separate annex on the acquisition 
        structure on each organization covered by the review, which 
        annex--
                    (A) shall address the matters specified under 
                subsection (b) with respect to such organization; and
                    (B) may include such recommendations with respect 
                to such organization as the University considers 
                appropriate.
            (3) Transmittal of final report.--Not later than 90 days 
        after the receipt of the report under paragraph (2), the Under 
        Secretary shall transmit to the congressional defense 
        committees a copy of the report, together with the comments of 
        the Under Secretary on the report.
    (f) Defense Acquisition University Defined.--In this section, the 
term ``Defense Acquisition University'' means the Defense Acquisition 
University established pursuant to section 1746 of title 10, United 
States Code.

              Subtitle B--Defense Industrial Base Matters

SEC. 811. CLARIFICATION OF EXCEPTION FROM BUY AMERICAN REQUIREMENTS FOR 
              PROCUREMENT OF PERISHABLE FOOD FOR ESTABLISHMENTS OUTSIDE 
              THE UNITED STATES.

    Section 2533a(d)(3) of title 10, United States Code, is amended by 
inserting ``, or for,'' after ``perishable foods by''.

SEC. 812. CONDITIONAL WAIVER OF DOMESTIC SOURCE OR CONTENT REQUIREMENTS 
              FOR CERTAIN COUNTRIES WITH RECIPROCAL DEFENSE PROCUREMENT 
              AGREEMENTS WITH THE UNITED STATES.

    (a) Authority for Annual Waiver.--Subchapter V of chapter 148 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 2539c. Domestic source or content requirements: one-year waiver 
              for certain countries with reciprocal defense procurement 
              agreements with the United States
    ``(a) Waiver Authority.--Subject to subsection (g), upon making a 
determination under subsection (b) that a foreign country described by 
that subsection has not qualitatively or quantitatively increased 
exports of defense items, as determined by the Secretary of Defense for 
purposes of this section, to the People's Republic of China during the 
fiscal year in which such determination is made, the Secretary of 
Defense may waive the application of any domestic source requirement or 
domestic content requirement referred to in subsection (c) and thereby 
authorize the procurement of items that are grown, reprocessed, reused, 
produced, or manufactured in such foreign country during the fiscal 
year following the fiscal year in which such determination is made.
    ``(b) Annual Determinations.--Not later than September 30 each 
fiscal year, the Secretary of Defense may determine whether or not a 
foreign country with which the United States had in force during such 
fiscal year a reciprocal defense procurement memorandum of 
understanding or agreement qualitatively or quantitatively increased 
exports of defense items to the People's Republic of China during such 
fiscal year. Each such determination shall be in writing.
    ``(c) Covered Requirements.--For purposes of this section:
            ``(1) A domestic source requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring 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 satisfy its 
        requirements for an item by procuring an item produced or 
        manufactured partly or wholly from components and materials 
        grown, reprocessed, reused, produced, or manufactured in the 
        United States.
    ``(d) Effective Period of Waiver.--Any waiver of the application of 
any domestic source requirement or domestic content with respect to a 
foreign country under subsection (a) shall be effective only for the 
fiscal year following the fiscal year in which is made the 
determination on which such waiver is based.
    ``(e) Limitation on Delegation.--The authority of the Secretary of 
Defense to waive the application of domestic source or content 
requirements under subsection (a) may not be delegated to any officer 
or employee other than the Deputy Secretary of Defense or the Under 
Secretary of Defense for Acquisition, Technology, and Logistics.
    ``(f) Consultations.--The Secretary of Defense may grant a waiver 
of the application of a domestic source or content requirement under 
subsection (a) only after consultation with the United States Trade 
Representative, the Secretary of Commerce, and the Secretary of State.
    ``(g) Laws Not Waivable.--The Secretary of Defense may not exercise 
the authority under subsection (a) to waive any domestic source or 
content requirement contained in any of the following laws:
            ``(1) The Small Business Act (15 U.S.C. 631 et seq.).
            ``(2) The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
            ``(3) Section 2533a of this title.
            ``(4) Sections 7309 and 7310 of this title.
    ``(h) 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.
    ``(i) Clarification of Relationship With Buy American Act.--Nothing 
in this section shall be construed to alter in any way the 
applicability of the Buy American Act (41 U.S.C. 10a), or the authority 
of the Secretary of Defense to waive the requirements of such Act, with 
respect to the procurement of any item to which such Act would apply 
without regard to this section.
    ``(j) 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 that is set forth in a law 
enacted after the enactment of this section solely on the basis of the 
later enactment of such law.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter V of such chapter is amended by adding at the end the 
following new item:

``2539c. Domestic source or content requirements: one-year waiver for 
                            certain countries with reciprocal defense 
                            procurement agreements with the United 
                            States.''.

SEC. 813. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER TRADE 
              AGREEMENTS.

    No provision of this Act or any amendment made by this Act shall 
apply to a procurement by or for the Department of Defense to the 
extent that the Secretary of Defense, in consultation with the 
Secretary of Commerce, the United States Trade Representative, and the 
Secretary of State, determines that it is inconsistent with United 
States obligations under a trade agreement.

SEC. 814. IDENTIFICATION OF AREAS OF RESEARCH AND DEVELOPMENT EFFORT 
              FOR PURPOSES OF SMALL BUSINESS INNOVATION RESEARCH 
              PROGRAM.

    (a) Revision and Update of Criteria and Procedures of 
Identification.--The Secretary of Defense shall, not less often than 
once every four years, revise and update the criteria and procedures 
utilized to identify areas of the research and development effort of 
the Department of Defense which are suitable for the provision of funds 
under the Small Business Innovation Research Program.
    (b) Utilization of Plans.--The criteria and procedures described in 
subsection (a) shall be developed through the use of the most current 
versions of the following plans:
            (1) The joint warfighting science and technology plan 
        required under section 270 of the National Defense 
        Authorization Act for Fiscal Year 1997 (10 U.S.C. 2501 note).
            (2) The Defense Technology Area Plan of the Department of 
        Defense.
            (3) The Basic Research Plan of the Department of Defense.
    (c) Input in Identification of Areas of Effort.--The criteria and 
procedures described in subsection (a) shall include input in the 
identification of areas of research and development effort described in 
that subsection from Department of Defense program managers (PMs) and 
program executive officers (PEOs).
    (d) Identification of Research Programs For Accelerated Transition 
to Acquisition Process.--
            (1) In general.--The Secretary of each military department 
        shall identify research programs that have successfully 
        completed Phase II of the Small Business Innovation Research 
        Program and that have the potential for rapid transitioning to 
        Phase III and into the acquisition process.
            (2) Limitation.--No research program may be identified 
        under paragraph (1) unless the Secretary of the military 
        department concerned certifies in writing that the successful 
        transition of the program to Phase III and into the acquisition 
        process is expected to meet high priority military requirements 
        of such military department.
            (3) Report.--The Secretary shall submit to the 
        congressional defense committees a report setting forth the 
        research programs identified under paragraph (1). The report 
        shall include a description of the requirements intended to be 
        met by each program identified in the report.
    (e) Small Business Innovation Research Program Defined.--In this 
section, the term ``Small Business Innovation Research Program'' has 
the meaning given that term in section 2500(11) of title 10, United 
States Code.

                 Subtitle C--Defense Contractor Matters

SEC. 821. REQUIREMENTS FOR DEFENSE CONTRACTORS RELATING TO CERTAIN 
              FORMER DEPARTMENT OF DEFENSE OFFICIALS.

    (a) Requirements.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2410p. Defense contractors: requirements concerning former 
              Department of Defense officials
    ``(a) In General.--Each contract for the procurement of goods or 
services in excess of $10,000,000, other than a contract for the 
procurement of commercial items, that is entered into by the Department 
of Defense shall include a provision under which the contractor agrees 
to submit to the Secretary of Defense, not later than April 1 of each 
year such contract is in effect, a written report setting forth the 
information required by subsection (b).
    ``(b) Report Information.--A report by a contractor under 
subsection (a) shall--
            ``(1) list the name of each person who--
                    ``(A) is a former officer or employee of the 
                Department of Defense or a former or retired member of 
                the armed forces; and
                    ``(B) during the preceding calendar year was 
                provided compensation by the contractor, if such 
                compensation was first provided by the contractor--
                            ``(i) not more than two years after such 
                        officer, employee, or member left service in 
                        the Department of Defense; and
                            ``(ii) not more than two years before the 
                        date on which the report is required to be 
                        submitted; and
            ``(2) in the case of each person listed under paragraph 
        (1)--
                    ``(A) identify the agency in which such person was 
                employed or served on active duty during the last two 
                years of such person's service with the Department of 
                Defense;
                    ``(B) state such person's job title and identify 
                each major defense system, if any, on which such person 
                performed any work with the Department of Defense 
                during the last two years of such person's service with 
                the Department; and
                    ``(C) state such person's current job title with 
                the contractor and identify each major defense system 
                on which such person has performed any work on behalf 
                of the contractor.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by adding at 
        the end the following new item:

``2410p. Defense contractors: requirements concerning former Department 
                            of Defense officials.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act, and shall apply 
with respect to contracts entered into on or after that date.

SEC. 822. REVIEW OF CERTAIN CONTRACTOR ETHICS MATTERS.

    (a) In General.--The Secretary of Defense shall, in consultation 
with the Director of the Office of Government Ethics and the 
Administrator for Federal Procurement Policy, conduct a review of the 
ethics considerations raised by the following:
            (1) The performance by contractor employees of functions 
        closely associated with inherently governmental functions.
            (2) The performance by contractor employees of other 
        functions historically performed by Government employees in the 
        Federal workplace.
    (b) Options To Be Addressed.--The review under subsection (a) shall 
include the consideration of a broad range of options for addressing 
the ethics considerations described in that subsection, including--
            (1) amending the Federal Acquisition Regulation to address 
        ethics and personal conflict of interest concerns for 
        contractor employees;
            (2) implementing the Federal Acquisition Regulation, as so 
        amended, through the incorporation of appropriate provisions in 
        Federal agency contracts and in the solicitations for such 
        contracts;
            (3) requiring such contracts and solicitations to state 
        that contractor employees will be bound by certain ethics 
        standards, whether contractor-imposed or Government-imposed;
            (4) encouraging Federal agency personnel to consider 
        including provisions in contracts and solicitations that 
        address conflict of interest issues and require contractor 
        personnel to receive training on Government ethics rules; and
            (5) continuing to identify and mitigate conflicts and 
        ethics concerns involving contractor personnel on a case-by-
        case basis.
    (c) Report.--
            (1) In general.--Not later than 6 months after the date of 
        the enactment of this Act, the Secretary shall submit to the 
        congressional defense committees a report setting forth the 
        findings and recommendations of the Secretary as a result of 
        the review under subsection (a) and the consideration of 
        options under subsection (b).
            (2) Additional views.--The report under paragraph (1) shall 
        set forth the views, if any, of the Director of the Office of 
        Government Ethics and the Administrator for Federal Procurement 
        Policy on the matters covered by the report.
    (d) Functions Closely Associated With Inherently Governmental 
Functions Defined.--In this section, the term ``functions closely 
associated with inherently governmental functions'' has the meaning 
given such term in section 2383(b)(3) of title 10, United States Code.

SEC. 823. CONTRACT FRAUD RISK ASSESSMENT.

    (a) Risk Assessment Team.--(1) Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
establish a risk assessment team to assess the vulnerability of 
Department of Defense contracts to fraud, waste, and abuse.
    (2) The risk assessment team shall be chaired by the Inspector 
General of the Department of Defense and shall include representatives 
of the Defense Logistics Agency, the Defense Contract Management 
Agency, the Defense Contract Audit Agency, the Army, the Navy, and the 
Air Force.
    (3) The risk assessment team shall--
            (A) review the contracting systems and internal controls of 
        the Department of Defense and the systems and controls of prime 
        contractors of the Department of Defense to identify areas of 
        vulnerability of Department of Defense contracts to fraud, 
        waste, and abuse; and
            (B) prepare a report on the results of its review.
    (4) Not later than six months after the date of the enactment of 
this Act, the chairman of the risk assessment team shall submit the 
report prepared under paragraph (3)(B) to the Secretary of Defense and 
the congressional defense committees.
    (b) Comptroller General Review.--(1) Not later than 60 days after 
the date on which the report of the risk assessment team is submitted 
under subsection (a)(4), the Comptroller General of the United States 
shall--
            (A) review the methodology used by the risk assessment team 
        and the results of the team's review; and
            (B) submit a report on the Comptroller General's review to 
        the congressional defense committees.
    (2) The report under paragraph (1)(B) shall include the Comptroller 
General's findings and any recommendations that the Comptroller 
considers appropriate.
    (c) Action Plan.--Not later than three months after receiving the 
report of the risk assessment team under subsection (a)(4), the 
Secretary of Defense shall develop and submit to the congressional 
defense committees a plan of actions for addressing the areas of 
vulnerability identified in the report. If the Secretary determines 
that no action is necessary with regard to an area of vulnerability, 
the report shall include a discussion of the rationale for that 
determination.

           Subtitle D--Defense Acquisition Workforce Matters

SEC. 831. AVAILABILITY OF FUNDS IN ACQUISITION WORKFORCE TRAINING FUND 
              FOR DEFENSE ACQUISITION WORKFORCE IMPROVEMENTS.

    (a) Availability of Department of Defense Contract Fees for Defense 
Acquisition University.--Section 37 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 433) is amended--
            (1) in subsection (a), by striking ``This section'' and 
        inserting ``Except as otherwise provided, this section''; and
            (2) in subsection (h)(3)--
                    (A) in subparagraph (B), by striking ``(other than 
                the Department of Defense)'' in the first sentence;
                    (B) by redesignating subparagraphs (D), (E), (F), 
                and (G) as subparagraphs (E), (F), (G), and (H), 
                respectively;
                    (C) by inserting after subparagraph (C) the 
                following new subparagraph (D):
                    ``(D) The Administrator of General Services shall 
                credit to the Defense Acquisition University fees 
                collected in accordance with subparagraph (B) from the 
                Department of Defense. Amounts so credited shall be 
                used to develop and expand training for the defense 
                acquisition workforce.''; and
                    (D) in subparagraph (E), as so redesignated, by 
                striking ``the purpose specified in subparagraph (A)'' 
                and inserting ``the purposes specified in subparagraphs 
                (A) and (D)''.
    (b) Conforming Amendment.--Section 1412 of the National Defense 
Authorization Act for Fiscal year 2004 (Public Law 108-136; 117 Stat. 
1664; 41 U.S.C. 433 note) is amended by striking subsection (c).

SEC. 832. LIMITATION AND REINVESTMENT AUTHORITY RELATING TO REDUCTION 
              OF THE DEFENSE ACQUISITION AND SUPPORT WORKFORCE.

    (a) Limitation.--Notwithstanding any other provision of law, the 
defense acquisition and support workforce may not be reduced, during 
fiscal years 2006, 2007, and 2008, below the level of that workforce as 
of September 30, 2004, determined on the basis of full-time employee 
equivalence, except as may be necessary to strengthen the defense 
acquisition and support workforce in higher priority positions in 
accordance with this section.
    (b) Increase and Realignment of Workforce.--(1)(A) During fiscal 
years 2006, 2007, and 2008, the Secretary of Defense shall increase the 
number of persons employed in the defense acquisition and support 
workforce as follows:
            (i) During fiscal year 2006, to 105 percent of the baseline 
        number (as defined in subparagraph (B)).
            (ii) During fiscal year 2007, to 110 percent of the 
        baseline number.
            (iii) During fiscal year 2008, to 115 percent of the 
        baseline number.
    (B) In this paragraph, the term ``baseline number'', with respect 
to persons employed in the defense acquisition and support workforce, 
means the number of persons employed in such workforce as of September 
30, 2004 (determined on the basis of full-time employee equivalence).
    (C) The Secretary of Defense may waive a requirement in 
subparagraph (A) and, subject to subsection (a), employ in the defense 
acquisition and support workforce a lesser number of employees if the 
Secretary determines and certifies to the congressional defense 
committees that the cost of increasing such workforce to the larger 
size as required under that subparagraph would exceed the savings to be 
derived from the additional oversight that would be achieved by having 
a defense acquisition and support workforce of such larger size.
    (2) During fiscal years 2006, 2007, and 2008, the Secretary of 
Defense may realign any part of the defense acquisition and support 
workforce to support reinvestment in other, higher priority positions 
in such workforce.
    (c) Higher Priority Positions.--For the purposes of this section, 
higher priority positions in the defense acquisition and support 
workforce include the following positions:
            (1) Positions the responsibilities of which include system 
        engineering.
            (2) Positions the responsibilities of which include 
        drafting performance-based work statements for services 
        contracts and overseeing the performance of contracts awarded 
        pursuant to such work statements.
            (3) Positions the responsibilities of which include 
        conducting spending analyses, negotiating company-wide pricing 
        agreements, and taking other measures to reduce contract costs.
            (4) Positions the responsibilities of which include 
        reviewing contractor quality control systems, assessing and 
        analyzing quality deficiency reports, and taking other measures 
        to improve product quality.
            (5) Positions the responsibilities of which include 
        effectively conducting public-private competitions in 
        accordance with Office of Management and Budget Circular A-76.
            (6) Any other positions in the defense acquisition and 
        support workforce that the Secretary of Defense identifies as 
        being higher priority positions that are staffed at levels not 
        likely to ensure efficient and effective performance of all of 
        the responsibilities of those positions.
    (d) Strategic Assessment and Plan.--(1) The Secretary of Defense 
shall--
            (A) assess the extent to which the Department of Defense 
        can recruit, retain, train, and provide professional 
        development opportunities for acquisition professionals over 
        the 10-fiscal year period beginning with fiscal year 2006; and
            (B) develop a human resources strategic plan for the 
        defense acquisition and support workforce that includes 
        objectives and planned actions for improving the management of 
        such workforce.
    (2) The Secretary shall submit to Congress, not later than April 1, 
2006, a report on the progress made in--
            (A) completing the assessment required under paragraph (1); 
        and
            (B) completing and implementing the strategic plan required 
        under such paragraph.
    (e) Defense Acquisition and Support Workforce Defined.--In this 
section, the term ``defense acquisition and support workforce'' means 
members of the Armed Forces and civilian personnel who are assigned to, 
or are employed in, an organization of the Department of Defense that 
has acquisition as its predominant mission, as determined by the 
Secretary of Defense.

SEC. 833. TECHNICAL AMENDMENTS RELATING TO DEFENSE ACQUISITION 
              WORKFORCE IMPROVEMENTS.

    Section 1732 of title 10, United States Code, is amended--
            (1) in subsection (c)--
                    (A) by striking ``(b)(2)(A) and (b)(2)(B)'' each 
                place it appears in paragraphs (1) and (2) and 
                inserting ``(b)(1)(A) and (b)(1)(B)''; and
                    (B) by striking paragraph (3); and
            (2) in subsection (d)(2), by striking ``(b)(2)A)(ii)'' and 
        inserting ``(b)(1)(A)(ii)''.

                       Subtitle E--Other Matters

SEC. 841. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESS 
              AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

    Section 2323(k) of title 10, United States Code, is amended by 
striking ``2006'' both places it appears and inserting ``2009''.

SEC. 842. CODIFICATION AND MODIFICATION OF LIMITATION ON MODIFICATION 
              OF MILITARY EQUIPMENT WITHIN FIVE YEARS OF RETIREMENT OR 
              DISPOSAL.

    (a) Codification and Modification of Limitation.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, as amended by section 821(a)(1) of this Act, is further 
        amended by adding at the end the following new section:
``Sec. 2410q. Modification of equipment within five years of retirement 
              or disposal
    ``(a) In General.--Except as provided in subsection (b), a military 
department may not modify an aircraft, vessel, weapon, or other item of 
equipment if the military department plans to retire or otherwise 
dispose of such equipment within 5 years of the date of the completion 
of such modification.
    ``(b) Exceptions.--The prohibition in subsection (a) shall not 
apply to any modification as follows:
            ``(1) A modification for safety purposes.
            ``(2) Any other modification but only if the aggregate cost 
        of all such modifications for the aircraft, vessel, weapon, or 
        other item of equipment concerned during any fiscal year, 
        including any procurement, installation, or removal costs, is 
        less than $100,000.
    ``(c) Waiver.--The Secretary of a military department may waive the 
prohibition in subsection (a) with respect to a modification referred 
to in that subsection if such Secretary--
            ``(1) determines that the waiver is in the national 
        security interests of the United States; and
            ``(2) notifies the congressional defense committees of such 
        determination in writing.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter, as amended by section 821(a)(2) of 
        this Act, is further amended by adding at the end the following 
        new item:

``2410q. Modification of equipment within five years of retirement or 
                            disposal.''.
    (b) Repeal of Superseded Limitation.--Section 8053 of the 
Department of Defense Appropriations Act, 1998 (Public Law 105-56; 111 
Stat. 1232; 10 U.S.C. 2241 note) is repealed.

SEC. 843. CLARIFICATION OF RAPID ACQUISITION AUTHORITY TO RESPOND TO 
              COMBAT EMERGENCIES.

    (a) Scope of Authority.--Subsection (c) of section 806 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (10 
U.S.C. 2302 note) is amended--
            (1) by striking ``combat capability'' each place it 
        appears; and
            (2) by striking ``fatalities'' each place it appears and 
        inserting ``casualties''.
    (b) Delegation of Authority.--Such subsection is further amended in 
paragraph (1) by inserting ``below the Deputy Secretary of Defense'' 
after ``delegation''.
    (c) Waiver Authority.--Subsection (d)(1) of such section is further 
amended--
            (1) in subparagraph (B), by striking ``or'';
            (2) in subparagraph (C), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) domestic source or content restrictions that would 
        inhibit or impede the rapid acquisition of the equipment.''.

SEC. 844. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
              PROJECTS.

    Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``The Director'' and inserting 
                ``(1) Subject to paragraph (2), the Director''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The authority of this section--
            ``(A) does not extend to any prototype project that is 
        expected to cost in excess of $100,000,000; and
            ``(B) may be exercised for a prototype project that is 
        expected to cost in excess of $20,000,000 only upon a written 
        determination by the senior procurement executive for the 
        agency (as designated for the purpose of section 16(c) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 414(c)) 
        that--
                    ``(i) the requirements of subsection (d) will be 
                met; and
                    ``(ii) the use of a standard contact, grant, or 
                cooperative agreement for such project is not feasible 
                or appropriate.'';
            (2) by redesignating subsection (h) as subsection (i); and
            (3) by inserting after subsection (g) the following new 
        subsection (h):
    ``(h) Applicability of Procurement Ethics Requirements.--An 
agreement entered into under the authority of this section shall be 
treated as a Federal agency procurement for the purposes of section 27 
of the Office of Federal Procurement Policy Act (41 U.S.C. 423).''.

SEC. 845. EXTENSION OF CERTAIN AUTHORITIES ON CONTRACTING WITH 
              EMPLOYERS OF PERSONS WITH DISABILITIES.

    Section 853 of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2021) is 
amended by striking ``September 30, 2005'' in subsections (a)(2)(A) and 
(b)(2)(A) and inserting ``September 30, 2006''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

SEC. 901. DIRECTORS OF SMALL BUSINESS PROGRAMS.

    (a) Redesignation of Existing Positions and Offices.--(1) Each of 
the following positions within the Department of Defense is 
redesignated as the Director of Small Business Programs:
            (A) The Director of Small and Disadvantaged Business 
        Utilization of the Department of Defense.
            (B) The Director of Small and Disadvantaged Business 
        Utilization of the Department of the Army.
            (C) The Director of Small and Disadvantaged Business 
        Utilization of the Department of the Navy.
            (D) The Director of Small and Disadvantaged Business 
        Utilization of the Department of the Air Force.
    (2) Each of the following offices within the Department of Defense 
is redesignated as the Office of Small Business Programs:
            (A) The Office of Small and Disadvantaged Business 
        Utilization of the Department of Defense.
            (B) The Office of Small and Disadvantaged Business 
        Utilization of the Department of the Army.
            (C) The Office of Small and Disadvantaged Business 
        Utilization of the Department of the Navy.
            (D) The Office of Small and Disadvantaged Business 
        Utilization of the Department of the Air Force.
    (3) Any reference in any law, regulation, document, paper, or other 
record of the United States to a position or office redesignated by 
paragraph (1) or (2) shall be deemed to be a reference to the position 
or office as so redesignated.
    (b) Department of Defense Position and Office.--(1) Chapter 4 of 
title 10, United States Code, is amended by inserting after section 
133b the following new section:
``Sec. 133c. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of Defense. The Director is appointed by the Secretary 
of Defense.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of Defense is the office that is 
established within the Office of the Secretary of Defense under section 
15(k) of the Small Business Act (15 U.S.C. 644(k)). The Director of 
Small Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of Defense, and shall 
exercise such powers regarding those programs, as the Secretary of 
Defense may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 133b the 
following new item:

``133c. Director of Small Business Programs.''.
    (c) Department of the Army Position and Office.--(1) Chapter 303 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 3024. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of the Army. The Director is appointed by the Secretary 
of the Army.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of the Army is the office that is 
established within the Department of the Army under section 15(k) of 
the Small Business Act (15 U.S.C. 644(k)). The Director of Small 
Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of the Army, and shall 
exercise such powers regarding those programs, as the Secretary of the 
Army may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3024. Director of Small Business Programs.''.
    (d) Department of the Navy Position and Office.--(1) Chapter 503 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 5028. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of the Navy. The Director is appointed by the Secretary 
of the Navy.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of the Navy is the office that is 
established within the Department of the Navy under section 15(k) of 
the Small Business Act (15 U.S.C. 644(k)). The Director of Small 
Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of the Navy, and shall 
exercise such powers regarding those programs, as the Secretary of the 
Navy may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5028. Director of Small Business Programs.''.
    (d) Department of the Air Force Position and Office.--(1) Chapter 
803 of title 10, United States Code, is amended by adding at the end 
the following new section:
``Sec. 8024. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of the Air Force. The Director is appointed by the 
Secretary of the Air Force.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of the Air Force is the office that 
is established within the Department of the Air Force under section 
15(k) of the Small Business Act (15 U.S.C. 644(k)). The Director of 
Small Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of the Air Force, and shall 
exercise such powers regarding those programs, as the Secretary of the 
Air Force may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8024. Director of Small Business Programs.''.

SEC. 902. EXECUTIVE AGENT FOR ACQUISITION OF CAPABILITIES TO DEFEND THE 
              HOMELAND AGAINST CRUISE MISSILES AND OTHER LOW-ALTITUDE 
              AIRCRAFT.

    (a) Designation of Executive Agent.--The Secretary of Defense shall 
designate an official within the Department of Defense to act as 
executive agent to manage the acquisition of capabilities necessary to 
defend the homeland against cruise missiles, unmanned aerial vehicles, 
and other low altitude aircraft that may be launched against the United 
States.
    (b) Coordination of Activities.--The official designated as 
executive agent under subsection (a) shall, in order to promote 
commonality and limit duplication of effort, coordinate in the 
acquisition of capabilities described in that subsection with 
appropriate officials of the following:
            (1) The Missile Defense Agency.
            (2) The Joint Theater Air and Missile Defense Organization.
            (3) The United States Northern Command.
            (4) The United States Strategic Command.
            (5) Such other elements of the Department of Defense, and 
        of other departments and agencies of the United States 
        Government, as the Secretary considers appropriate for purposes 
        of this section.
    (c) Plan for Defense Against Attack.--
            (1) Plan required.--Not later than 180 days after the date 
        of the enactment of this Act, the Secretary of Defense shall 
        submit to the congressional defense committees a plan for the 
        defense of the United States against cruise missiles, unmanned 
        aerial vehicles, and other low altitude aircraft that may be 
        launched against the United States.
            (2) Focus of plan.--In developing the plan, the Secretary 
        shall focus on the role of Department of Defense components in 
        the defense of the United States against an attack described in 
        paragraph (1), but shall also address the role, if any, of 
        other departments and agencies of the United States Government 
        in that defense.
            (3) Elements.--The plan shall include the following:
                    (A) An identification of the capabilities required 
                by the Department of Defense in order to fulfill its 
                mission to defend the homeland against cruise missiles, 
                unmanned aerial vehicles, and other low altitude 
                aircraft, and an identification of any current 
                shortfalls in such capabilities.
                    (B) A schedule for implementing the plan.
                    (C) A statement of the funding required to 
                implement the Department of Defense portion of the 
                plan.
                    (D) An identification of the roles and missions, if 
                any, of other departments and agencies of the United 
                States Government in contributing to the defense of the 
                United States against attack described in subparagraph 
                (A).
            (4) Scope of plan.--The plan shall be coordinated with 
        Department of Defense plans for defending the United States 
        against attack by short-range to medium-range ballistic 
        missiles.

                      Subtitle B--Space Activities

SEC. 911. ADVISORY COMMITTEE ON DEPARTMENT OF DEFENSE REQUIREMENTS FOR 
              SPACE CONTROL.

    (a) Advisory Committee Required.--
            (1) In general.--The Secretary of Defense shall provide for 
        an advisory committee to review and assess Department of 
        Defense requirements for space control.
            (2) New or existing advisory committee.--The Secretary may 
        carry out paragraph (1) through the establishment of a new 
        advisory committee, or the utilization of a current advisory 
        committee, meeting the requirements of subsection (b)(1).
    (b) Membership and Administration of Advisory Committee.--
            (1) Membership.--The advisory committee under subsection 
        (a) shall consist of individuals from among officers and 
        employees of the Federal Government, and private citizens of 
        the United States, with knowledge and expertise in national 
        security space policy.
            (2) Administration.--The Secretary shall establish 
        appropriate procedures for the administration of the advisory 
        committee for purposes of this section, including designation 
        of the chairman of the advisory committee from among its 
        members.
            (3) Security clearances.--All members of the advisory 
        committee shall hold security clearances appropriate for the 
        work of the advisory committee.
            (4) First meeting.--The advisory committee shall convene 
        its first meeting for purposes of this section not later than 
        30 days after the date on which all members of the advisory 
        committee have been selected for such purposes.
    (c) Duties.--The advisory committee shall conduct a review and 
assessment of the following:
            (1) The requirements of the Department of Defense for its 
        space control mission and the efforts of the Department to 
        fulfill such requirements.
            (2) Whether or not the Department of Defense is allocating 
        appropriate resources to fulfill the current space control 
        mission of the Department when compared with the allocation by 
        the Department of resources to other military space missions.
            (3) The plans of the Department of Defense to meet its 
        future space control mission.
    (d) Information From Federal and State Agencies.--
            (1) In general.--The advisory committee may secure directly 
        from the Department of Defense, from any other department or 
        agency of the Federal Government, and any State government any 
        information that the advisory committee considers necessary to 
        carry out its duties under this section.
            (2) Liaison.--The Secretary of Defense shall designate at 
        least one senior civilian employee of the Department of Defense 
        and at least one general or flag officer of an Armed Force to 
        serve as liaison between the Department, the Armed Forces, and 
        the advisory committee for purposes of this section.
    (e) Report.--
            (1) In general.--Not later than 6 months after the date of 
        the first meeting of the advisory committee under subsection 
        (b)(4), the advisory committees shall submit to the Secretary 
        of Defense and the congressional defense committees a report on 
        the results of the review and assessment under subsection (c).
            (2) Elements.--The report shall include--
                    (A) the findings and conclusions of the advisory 
                committee on the requirements of the Department of 
                Defense for its space control mission and the efforts 
                of the Department to fulfill such requirements; and
                    (B) any recommendations that the advisory committee 
                considers appropriate regarding the best means by which 
                the Department may fulfill such requirements.
    (f) Termination.--The advisory committee shall terminate for 
purposes of this section 10 months after the date of the first meeting 
of the advisory committee under subsection (b)(4).
    (g) Space Control Mission.--In this section, the term ``space 
control mission'' means the mission of the Department of Defense 
involving the following:
            (1) Space situational awareness.
            (2) Defensive counterspace operations.
            (3) Offensive counterspace operations.
    (h) Funding.--Amounts authorized to be appropriated to the 
Department of Defense shall be available to the Secretary of Defense 
for purposes of the activities of the advisory committee under this 
section.

                       Subtitle C--Other Matters

SEC. 921. ACCEPTANCE OF GIFTS AND DONATIONS FOR DEPARTMENT OF DEFENSE 
              REGIONAL CENTERS FOR SECURITY STUDIES.

    (a) Authority To Accept.--
            (1) In general.--Section 2611 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 2611. Regional centers for security studies: acceptance of gifts 
              and donations
    ``(a) Authority To Accept Gifts and Donations.--Subject to 
subsection (c), the Secretary of Defense may, on behalf of any 
Department of Defense regional center for security studies, any 
combination of such centers, or such centers generally, accept from any 
source specified in subsection (b) any gift or donation for purposes of 
defraying the costs, or enhancing the operation, of such center, 
combination of centers, or centers generally, as the case may be.
    ``(b) Sources.--The sources from which gifts and donations may be 
accepted under subsection (a) are the following:
            ``(1) The government of a State or a political subdivision 
        of a State.
            ``(2) The government of a foreign country.
            ``(3) A foundation or other charitable organization, 
        including a foundation or charitable organization this is 
        organized or operates under the laws of a foreign country.
            ``(4) Any source in the private sector of the United States 
        or a foreign country.
    ``(c) Limitation.--The Secretary may not accept a gift or donation 
under subsection (a) if acceptance of the gift or donation would 
compromise or appear to compromise--
            ``(1) the ability of the Department of Defense, any 
        employee of the Department, or any member of the armed forces 
        to carry out the responsibility or duty of the Department in a 
        fair and objective manner; or
            ``(2) the integrity of any program of the Department, or of 
        any person involved in such a program.
    ``(d) Criteria for Acceptance.--The Secretary shall prescribe 
written guidance setting forth the criteria to be used in determining 
whether the acceptance of a gift or donation would have a result 
described in subsection (c).
    ``(e) Crediting of Funds.--(1) There is established on the books of 
the Treasury of the United States an account to be known as the 
`Regional Centers for Security Studies Account'.
    ``(2) Gifts and donations of money accepted under subsection (a) 
shall be credited to the Account, and shall be available until 
expended, without further appropriation, to defray the costs, or 
enhance the operation, of the regional center, combination of centers, 
or centers generally for which donated under that subsection.
    ``(f) Gift or Donation Defined.--In this section, the term `gift or 
donation' means any gift or donation of funds, materials (including 
research materials), real or personal property, or services (including 
lecture services and faculty services).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 155 of such title is amended by striking 
        the item relating to section 2611 and inserting the following 
        new item:

``2611. Regional centers for security studies: acceptance of gifts and 
                            donations.''.
    (b) Conforming Amendments.--
            (1) Section 1306 of the National Defense Authorization Act 
        for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2892) is 
        amended by striking subsection (a).
            (2) Section 1065 of the National Defense Authorization Act 
        for Fiscal Year 1997 (10 U.S.C. 113 note) is amended--
                    (A) by striking subsection (a); and
                    (B) by redesignating subsections (b) and (c) as 
                subsections (a) and (b), respectively.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

SEC. 922. OPERATIONAL FILES OF THE DEFENSE INTELLIGENCE AGENCY.

    (a) Protection of Operational Files of Defense Intelligence 
Agency.--(1) Title VII of the National Security Act of 1947 (50 U.S.C. 
431 et. seq.) is amended by adding at the end the following new 
section:

         ``operational files of the defense intelligence agency

    ``Sec. 705. (a) Exemption of Operational Files.--The Director of 
the Defense Intelligence Agency, in coordination with the Director of 
National Intelligence, may exempt operational files of the Defense 
Intelligence Agency from the provisions of section 552 of title 5, 
United States Code, which require publication, disclosure, search, or 
review in connection therewith.
    ``(b) Operational Files Defined.--(1) In this section, the term 
`operational files' means--
            ``(A) files of the Directorate of Human Intelligence of the 
        Defense Intelligence Agency (and any successor organization of 
        that directorate) that document the conduct of foreign 
        intelligence or counterintelligence operations or intelligence 
        or security liaison arrangements or information exchanges with 
        foreign governments or their intelligence or security services; 
        and
            ``(B) files of the Directorate of Technology of the Defense 
        Intelligence Agency (and any successor organization of that 
        directorate) that document the means by which foreign 
        intelligence or counterintelligence is collected through 
        technical systems.
    ``(2) Files that are the sole repository of disseminated 
intelligence are not operational files.
    ``(c) Search and Review for Information.--Notwithstanding 
subsection (a), exempted operational files shall continue to be subject 
to search and review for information concerning:
            ``(1) United States citizens or aliens lawfully admitted 
        for permanent residence who have requested information on 
        themselves pursuant to the provisions of section 552 or 552a of 
        title 5, United States Code.
            ``(2) Any special activity the existence of which is not 
        exempt from disclosure under the provisions of section 552 of 
        title 5, United States Code.
            ``(3) The specific subject matter of an investigation by 
        any of the following for any impropriety, or violation of law, 
        Executive Order, or Presidential directive, in the conduct of 
        an intelligence activity:
                    ``(A) The Committee on Armed Services and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.
                    ``(B) The Committee on Armed Services and the 
                Select Committee on Intelligence of the Senate.
                    ``(C) The Intelligence Oversight Board.
                    ``(D) The Department of Justice.
                    ``(E) The Office of General Counsel of the 
                Department of Defense or of the Defense Intelligence 
                Agency.
                    ``(F) The Office of Inspector General of the 
                Department of Defense or of the Defense Intelligence 
                Agency.
                    ``(G) The Office of the Director of the Defense 
                Intelligence Agency.
    ``(d) Information Derived or Disseminated From Exempted Operational 
Files.--(1) Files that are not exempted under subsection (a) and 
contain information derived or disseminated from exempted operational 
files shall be subject to search and review.
    ``(2) The inclusion of information from exempted operational files 
in files that are not exempted under subsection (a) shall not affect 
the exemption under subsection (a) of the originating operational files 
from search, review, publication, or disclosure.
    ``(3) The declassification of some of the information contained in 
exempted operational files shall not affect the status of the 
operational file as being exempt from search, review, publication, or 
disclosure.
    ``(4) Records from exempted operational files that have been 
disseminated to and referenced in files that are not exempted under 
subsection (a) and that have been returned to exempted operational 
files for sole retention shall be subject to search and review.
    ``(e) Allegation; Improper Withholding of Records; Judicial 
Review.--(1) Except as provided in paragraph (2), whenever any person 
who has requested agency records under section 552 of title 5, alleges 
that the Defense Intelligence Agency has withheld records improperly 
because of failure to comply with any provision of this section, 
judicial review shall be available under the terms set forth in section 
552(a)(4)(B) of title 5, United States Code.
    ``(2) Judicial review shall not be available in the manner provided 
under paragraph (1) as follows:
            ``(A) In any case in which information specifically 
        authorized under criteria established by an Executive order to 
        be kept secret in the interest of national defense or foreign 
        relations which is filed with, or produced for, the court by 
        the Defense Intelligence Agency, such information shall be 
        examined ex parte, in camera by the court.
            ``(B) The court shall determine, to the fullest extent 
        practicable, issues of fact based on sworn written submissions 
        of the parties.
            ``(C) When a complainant alleges that requested records 
        were improperly withheld because of improper placement solely 
        in exempted operational files, the complainant shall support 
        such allegation with a sworn written submission based upon 
        personal knowledge or otherwise admissible evidence.
            ``(D)(i) When a complainant alleges that requested records 
        were improperly withheld because of improper exemption of 
        operational files, the Defense Intelligence Agency shall meet 
        its burden under section 552(a)(4)(B) of title 5, United States 
        Code, by demonstrating to the court by sworn written submission 
        that exempted operational files likely to contain responsible 
        records currently perform the functions set forth in subsection 
        (b).
            ``(ii) The court may not order the Defense Intelligence 
        Agency to review the content of any exempted operational file 
        or files in order to make the demonstration required under 
        clause (i), unless the complainant disputes the Defense 
        Intelligence Agency's showing with a sworn written submission 
        based on personal knowledge or otherwise admissible evidence.
            ``(E) In proceedings under subparagraphs (C) and (D), the 
        parties shall not obtain discovery pursuant to rules 26 through 
        36 of the Federal Rules of Civil Procedure, except that 
        requests for admission may be made pursuant to rules 26 and 36.
            ``(F) If the court finds under this subsection that the 
        Defense Intelligence Agency has improperly withheld requested 
        records because of failure to comply with any provision of this 
        subsection, the court shall order the Defense Intelligence 
        Agency to search and review the appropriate exempted 
        operational file or files for the requested records and make 
        such records, or portions thereof, available in accordance with 
        the provisions of section 552 of title 5, United States Code, 
        and such order shall be the exclusive remedy for failure to 
        comply with this section (other than subsection (f)).
            ``(G) If at any time following the filing of a complaint 
        pursuant to this paragraph the Defense Intelligence Agency 
        agrees to search the appropriate exempted operational file or 
        files for the requested records, the court shall dismiss the 
        claim based upon such complaint; and
            ``(H) Any information filed with, or produced for the court 
        pursuant to subparagraphs (A) and (D) shall be coordinated with 
        the Director of National Intelligence before submission to the 
        court.
    ``(f) Decennial Review of Exempted Operational Files.--(1) Not less 
than once every 10 years, the Director of the Defense Intelligence 
Agency and the Director of National Intelligence shall review the 
exemptions in force under subsection (a) to determine whether such 
exemptions may be removed from a category of exempted files or any 
portion thereof. The Director of National Intelligence must approve any 
determinations to remove such exemptions.
    ``(2) The review required by paragraph (1) shall include 
consideration of the historical value or other public interest in the 
subject matter of the particular category of files or portions thereof 
and the potential for declassifying a significant part of the 
information contained therein.
    ``(3) A complainant that alleges that the Defense Intelligence 
Agency has improperly withheld records because of failure to comply 
with this subsection may seek judicial review in the district court of 
the United States of the district in which any of the parties reside, 
or in the District of Columbia. In such a proceeding, the court's 
review shall be limited to determining the following:
            ``(A) Whether the Defense Intelligence Agency has conducted 
        the review required by paragraph (1) before the expiration of 
        the 10-year period beginning on the date of the enactment of 
        this section or before the expiration of the 10-year period 
        beginning on the date of the most recent review.
            ``(B) Whether the Defense Intelligence Agency, in fact, 
        considered the criteria set forth in paragraph (2) in 
        conducting the required review.''.
    (2) The table of contents for that Act is amended by inserting 
after the item relating to section 704 the following new item:

``Sec. 705. Operational files of the Defense Intelligence Agency.''.
    (b) Search and Review of Certain Other Operational Files.--The 
National Security Act of 1947 is further amended--
            (1) in section 702(a)(3)(C) (50 U.S.C. 432(a)(3)(C)), by 
        adding the following new clause:
                    ``(vi) The Office of the Inspector General of the 
                National Geospatial-Intelligence Agency.'';
            (2) in section 703(a)(3)(C) (50 U.S.C. 432a(a)(3)(C)), by 
        adding at the end the following new clause:
                    ``(vii) The Office of the Inspector General of the 
                NRO.''; and
            (3) in section 704(c)(3) (50 U.S.C. 432b(c)(3)), by adding 
        at the end the following subparagraph:
                    ``(H) The Office of the Inspector General of the 
                National Security Agency.''.

SEC. 923. PROHIBITION ON IMPLEMENTATION OF CERTAIN ORDERS AND GUIDANCE 
              ON FUNCTIONS AND DUTIES OF THE GENERAL COUNSEL AND THE 
              JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

    No funds authorized to be appropriated by this Act may be obligated 
or expended to implement or enforce either of the following:
            (1) The order of the Secretary of the Air Force dated May 
        15, 2003, and entitled ``Functions and Duties of the General 
        Counsel and the Judge Advocate General''.
            (2) Any internal operating instruction or memorandum issued 
        by the General Counsel of the Department of the Air Force in 
        reliance upon the order referred to in paragraph (1).

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority to Transfer Authorizations.--
            (1) Authority.--Upon determination by the Secretary of 
        Defense that such action is necessary in the national interest, 
        the Secretary may transfer amounts of authorizations made 
        available to the Department of Defense in this division for 
        fiscal year 2006 between any such authorizations for that 
        fiscal year (or any subdivisions thereof). Amounts of 
        authorizations so transferred shall be merged with and be 
        available for the same purposes as the authorization to which 
        transferred.
            (2) Aggregate limitation.--The total amount of 
        authorizations that the Secretary may transfer under the 
        authority of this section may not exceed $3,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

    (a) Status of Classified Annex.--The Classified Annex prepared by 
the Committee on Armed Services of the Senate to accompany its report 
on the bill S. 1042 of the One Hundred Ninth Congress and transmitted 
to the President is hereby incorporated into this Act.
    (b) Construction With Other Provisions of Act.--The amounts 
specified in the Classified Annex are not in addition to amounts 
authorized to be appropriated by other provisions of this Act.
    (c) Limitation on Use of Funds.--Funds appropriated pursuant to an 
authorization contained in this Act that are made available for a 
program, project, or activity referred to in the Classified Annex may 
only be expended for such program, project, or activity in accordance 
with such terms, conditions, limitations, restrictions, and 
requirements as are set out for that program, project, or activity in 
the Classified Annex.
    (d) Distribution of Classified Annex.--The President shall provide 
for appropriate distribution of the Classified Annex, or of appropriate 
portions of the annex, within the executive branch of the Government.

SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2006.

    (a) Fiscal Year 2006 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2006 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2005, of funds appropriated for fiscal years before 
        fiscal year 2006 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $763,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $238,364,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1004. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS RELATING 
              TO LOWER INFLATION.

    (a) Reduction.--The aggregate amount authorized to be appropriated 
by titles I, II, and III is the amount equal to the sum of all the 
amounts authorized to be appropriated by such titles reduced by 
$1,300,000,000.
    (b) Source of Savings.--Reductions required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of the annual review of the budget 
conducted by the Congressional Budget Office.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the amounts 
authorized to be appropriated for accounts in titles I, II, and III to 
reflect the extent to which net savings from lower-than-expected 
inflation are allocable to amounts authorized to be appropriated to 
such accounts.

SEC. 1005. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
              2005.

    Amounts authorized to be appropriated to the Department of Defense 
and the Department of Energy for fiscal year 2005 in the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108-375) are hereby adjusted, with respect to any such authorized 
amount, by the amount by which appropriations pursuant to such 
authorization are increased (by a supplemental appropriation) or 
decreased (by a rescission), or both, or are increased by a transfer of 
funds, pursuant to title I or chapter 2 of title IV of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on Terror, 
and Tsunami Relief, 2005 (Public Law 109-13).

SEC. 1006. INCREASE IN FISCAL YEAR 2005 TRANSFER AUTHORITY.

    Section 1001(a)(2) of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
2034) is amended by striking ``$3,500,000,000'' and inserting 
``$6,185,000,000''.

SEC. 1007. MONTHLY DISBURSEMENT TO STATES OF STATE INCOME TAX 
              VOLUNTARILY WITHHELD FROM RETIRED OR RETAINER PAY.

    Section 1045(a) of title 10, United States Code, is amended--
            (1) by striking ``quarter'' the first place it appears and 
        inserting ``month''; and
            (2) by striking ``during the month following that calendar 
        quarter'' and inserting ``during the following calendar 
        month''.

SEC. 1008. REESTABLISHMENT OF LIMITATION ON PAYMENT OF FACILITIES 
              CHARGES ASSESSED BY DEPARTMENT OF STATE.

    (a) Costs of Goods and Services Provided to Department of State.--
Funds appropriated for the Department of Defense may be transferred to 
the Department of State as remittance for a fee charged to the 
Department of Defense by the Department of State for any year for the 
maintenance, upgrade, or construction of United States diplomatic 
facilities only to the extent that the amount charged (when added to 
other amounts previously so charged for that fiscal year) exceeds the 
total amount of the unreimbursed costs incurred by the Department of 
Defense during that fiscal year in providing goods and services to the 
Department of State.
    (b) Construction of Limitation.--The provisions of subsection (a) 
shall be applicable without regard to the following provisions of law:
            (1) The provisions of subsection (e) of section 604 of the 
        Secure Embassy Construction and Counterterrorism Act of 1999, 
        as added by section 629 of division B of Public Law 108-447 
        (118 Stat. 2920; 22 U.S.C. 4865 note).
            (2) The provisions of section 630 of the Departments of 
        Commerce, Justice, and State, the Judiciary, and Related 
        Agencies Appropriations Act, 2005 (division B of Public Law 
        108-447 (118 Stat. 2921)).
    (c) Effective Date.--This section shall take effect as of October 
1, 2005.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. TRANSFER OF BATTLESHIP.

    (a) Transfer of Battleship Wisconsin.--The Secretary of the Navy is 
authorized--
            (1) to strike the Battleship U.S.S. WISCONSIN (BB-64) from 
        the Naval Vessel Register; and
            (2) subject to section 7306b of title 10, United States 
        Code, to transfer the ship by gift or otherwise provided that 
        the Secretary requires, as a condition of transfer, that the 
        transferee locate the U.S.S. WISCONSIN in the Commonwealth of 
        Virginia.
    (b) Inapplicability of Certain Authority To Transfer.--
Notwithstanding paragraph (2) of subsection (a), the cost of the 
transfer authorized by subsection (a) may not be shared by the United 
States pursuant to section 7306b(d) of title 10, United States Code, 
but shall be borne by the transferee under subsection (a).
    (c) Inapplicability of Certain Requirements Related to Transfer 
Authority.--The transfer authorized by subsection (a) may be made 
without regard to the following provisions of law:
            (1) Section 1011 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 421).
            (2) Section 1011 of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
        Stat. 2118).

SEC. 1022. CONVEYANCE OF NAVY DRYDOCK, JACKSONVILLE, FLORIDA.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
Atlantic Marine Property Holding Company (in this section referred to 
as the ``Company'') all right, title, and interest of the United States 
in and to Navy Drydock No. AFDM 7 (the SUSTAIN), located in Duval 
County, Florida. The Company is the current user of the drydock.
    (b) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the drydock remain at the 
facilities of the Company until September 30, 2010.
    (c) Consideration.--As consideration for the conveyance under 
subsection (a), the Company shall pay the Secretary an amount equal to 
the fair market value of the drydock as determined by the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                    Subtitle C--Counterdrug Matters

SEC. 1031. USE OF UNMANNED AERIAL VEHICLES FOR UNITED STATES BORDER 
              RECONNAISSANCE.

    (a) In General.--Chapter 18 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 383. Use of unmanned aerial vehicles for United States border 
              reconnaissance
    ``(a) In General.--The Secretary of Defense is authorized to use 
Department of Defense personnel and equipment to conduct aerial 
reconnaissance within the area of responsibility of the United States 
Northern Command with unmanned aerial vehicles in order to conduct, for 
the purposes specified in subsection (b), the following:
            ``(1) The detection and monitoring of, and communication 
        on, the movement of air and sea traffic along the United States 
        border.
            ``(2) The detection and monitoring of, and communication 
        on, the movement of surface traffic that is--
                    ``(A) outside of the geographic boundary of the 
                United States; or
                    ``(B) inside the United States, but within not more 
                than 25 miles of the geographic boundary of the United 
                States, with respect to surface traffic first detected 
                outside the geographic boundary of the United States.
    ``(b) Purposes of Authorized Activities.--The purposes of 
activities authorized by subsection (a) are as follows:
            ``(1) To detect and monitor suspicious air, sea, and 
        surface traffic.
            ``(2) To communicate information on such traffic to 
        appropriate Federal law enforcement officials, State law 
        enforcement officials, and local law enforcement officials.
    ``(c) Funds.--Amounts available to the Department of Defense for 
counterdrug activities shall be available for activities authorized by 
subsection (a).
    ``(d) Limitations.--Any limitations and restrictions under this 
chapter with respect to the use of personnel, equipment, and facilities 
under this chapter shall apply to the exercise of the authority in 
subsection (a).
    ``(e) Annual Reports on Use of Unmanned Aerial Vehicles.--(1) The 
Secretary of Defense shall submit to the congressional defense 
committees each year a report on the operation of unmanned aerial 
vehicles along the United States border under this section during the 
preceding year. Each report shall include, for the year covered by such 
report, the following:
            ``(A) A description of the aerial reconnaissance missions 
        carried out along the United States border by unmanned aerial 
        vehicles under this section, including the total number of 
        sorties and flight hours.
            ``(B) A statement of the costs of such missions.
            ``(C) A statement of the number of times data collected by 
        the Department of Defense from such missions was communicated 
        to other authorities of the Federal Government or to State or 
        local authorities.
    ``(2) A report is not required under this subsection for a year if 
no operations of unmanned aerial vehicles along the United States 
border occurred under this section during such year.
    ``(3) Each report under this subsection shall be submitted in 
unclassified form, but may include a classified annex.
    ``(f) Definitions.--In this section:
            ``(1) The term `suspicious air, sea, and surface traffic' 
        means any air, sea, or surface traffic that is suspected of 
        illegal activities, including involvement in activities that 
        would constitute a violation of any provision of law set forth 
        in or described under section 374(b)(4)(A) of this title.
            ``(2) The term `State law enforcement officials' includes 
        authorized members of the National Guard operating under 
        authority of title 32.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 18 of such title is amended by adding at the end the following 
new item:

``383. Use of unmanned aerial vehicles for United States border 
                            reconnaissance.''.

SEC. 1032. USE OF COUNTERDRUG FUNDS FOR CERTAIN COUNTERTERRORISM 
              OPERATIONS.

    (a) Authority To Use Funds.--In conjunction with counterdrug 
activities authorized by law, the Secretary of Defense may use funds 
authorized to be appropriated to the Department of Defense for drug 
interdiction and counterdrug activities in fiscal years 2006 and 2007 
for the detection, monitoring, and interdiction of terrorists, 
terrorism-related activities, and other related transnational threats 
along the borders and within the territorial waters of the United 
States.
    (b) Construction With Other Authority.--The authority provided by 
subsection (a) is in addition to the authority provided in section 124 
of title 10, United States Code.

SEC. 1033. SUPPORT FOR COUNTER-DRUG ACTIVITIES THROUGH BASES OF 
              OPERATION AND TRAINING FACILITIES IN AFGHANISTAN.

    In providing support for counterdrug activities under section 1004 
of the National Defense Authorization Act for Fiscal Year 1991 (10 
U.S.C. 374 note), the Secretary of Defense may, in accordance with a 
request under subsection (a) of such section, provide through or 
utilizing bases of operation or training facilities in Afghanistan--
            (1) any type of support specified in subsection (b) of such 
        section for counter-drug activities; and
            (2) any type of support for counter-drug related Afghan 
        criminal justice activities.

                    Subtitle D--Reports and Studies

SEC. 1041. MODIFICATION OF FREQUENCY OF SUBMITTAL OF JOINT WARFIGHTING 
              SCIENCE AND TECHNOLOGY PLAN.

    (a) Submittal of Joint Warfighting Science and Technology Plan.--
Section 270 of the National Defense Authorization Act for Fiscal Year 
1997 (10 U.S.C. 2501 note) is amended by striking ``(a) Annual Plan 
Required.--On March 1 of each year,'' and inserting ``Not later than 
March 1 of each year through 2006, and March 1 every two years 
thereafter,''.
    (b) Conforming Amendment.--The heading of such section is amended 
by striking ``ANNUAL''.

SEC. 1042. REVIEW AND ASSESSMENT OF DEFENSE BASE ACT INSURANCE.

    (a) In General.--The Secretary of Defense shall, in coordination 
with the Director of the Office of Management and Budget and 
appropriate officials of the Department of Labor, the Department of 
State and the United States Agency for International Development, 
review current and future needs, options, and risks associated with 
Defense Base Act insurance.
    (b) Matters To Be Addressed.--The review under subsection (a) shall 
address the following matters:
            (1) Cost-effective options for acquiring Defense Base Act 
        insurance.
            (2) Methods for coordinating data collection efforts among 
        agencies and contractors on numbers of employees, costs of 
        insurance, and other information relevant to decisions on 
        Defense Base Act insurance.
            (3) Improved communication and coordination within and 
        among agencies on the implementation of Defense Base Act 
        insurance.
            (4) Actions to be taken to address difficulties in the 
        administration of Defense Base Act insurance, including on 
        matters relating to cost, data, enforcement, and claims 
        processing.
    (c) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report on the results of the review under 
subsection (a). The report shall set forth the findings of the 
Secretary as a result of the review and such recommendations, including 
recommendations for legislative or administrative action, as the 
Secretary considers appropriate in light of the review.
    (d) Defense Base Act Insurance Defined.--In this section, the term 
``Defense Base Act insurance'' means workers' compensation insurance 
provided to contractor employees pursuant to the Defense Base Act (42 
U.S.C. 1651 et seq.).

SEC. 1043. COMPTROLLER GENERAL REPORT ON CORROSION PREVENTION AND 
              MITIGATION PROGRAMS OF THE DEPARTMENT OF DEFENSE.

    (a) Report Required.--Not later than April 1, 2007, the Comptroller 
General of the United States shall submit to the congressional defense 
committees a report on the effectiveness of the corrosion prevention 
and mitigation programs of the Department of Defense.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) An assessment of the document of the Department of 
        Defense entitled ``Long-Term Strategy to Reduce Corrosion and 
        the Effects of Corrosion on the Military Equipment and 
        Infrastructure of the Department of Defense'', dated November 
        2004.
            (2) An assessment of the adequacy for purposes of the 
        strategy set forth in that document of the funding requested in 
        the budget of the President for fiscal year 2006, as submitted 
        to Congress pursuant to section 1105(a) of title 31, United 
        States Code, and the associated Future-Years Defense Program 
        under section 221 of title 10, United States Code.
            (3) An assessment of the adequacy and effectiveness of the 
        organizational structure of the Department of Defense in 
        implementing that strategy.
            (4) An assessment of the progress made as of the date of 
        the report in establishing throughout the Department common 
        metrics, definitions, and procedures on corrosion prevention 
        and mitigation.
            (5) An assessment of the progress made as of the date of 
        the report in establishing a baseline estimate of the scope of 
        the corrosion problems of the Department.
            (6) An assessment of the extent to which the strategy of 
        the Department on corrosion prevention and mitigation has been 
        revised to incorporate the recommendations of the October 2004 
        Defense Science Board report on corrosion control.
            (7) An assessment of the implementation of the corrosion 
        prevention and mitigation programs of the Department during 
        fiscal year 2006.
            (8) Recommendations by the Comptroller General for 
        addressing any shortfalls or areas of potential improvement 
        identified in the review for purposes of the report.

                    Subtitle E--Technical Amendments

SEC. 1051. TECHNICAL AMENDMENTS RELATING TO CERTAIN PROVISIONS OF 
              ENVIRONMENTAL DEFENSE LAWS.

    (a) Definition of ``Military Munitions''.--Section 101(e)(4)(B)(ii) 
of title 10, United States Code, is amended by striking ``explosives, 
and'' and inserting ``explosives and''.
    (b) Defense Environmental Restoration Program.--Section 2703(b) of 
such title is amended by striking ```unexploded ordnance', `discarded 
military munitions', and'' and inserting ```discarded military 
munitions' and''.

                   Subtitle F--Military Mail Matters

SEC. 1061. SAFE DELIVERY OF MAIL IN THE MILITARY MAIL SYSTEM.

    (a) Plan Required.--
            (1) In general.--The Secretary of Defense shall promptly 
        develop and implement a plan to ensure that the mail within the 
        military mail system is safe for delivery.
            (2) Screening.--The plan under this subsection shall 
        provide for the screening of all mail within the military mail 
        system in order to detect the presence in such mail of 
        biological, chemical, or radiological weapons, agents, or 
        pathogens, or explosive devices, before such mail is delivered 
        to its intended recipients.
    (b) Funding for Plan.--The budget justification materials that are 
submitted to Congress with the budget of the President for any fiscal 
year after fiscal year 2006, as submitted under section 1105(a) of 
title 31, United States Code, shall include a description of the 
amounts required in such fiscal year to carry out the plan under 
subsection (a).
    (c) Report on Safety of Mail for Delivery.--
            (1) Report required.--Not later than 120 days after the 
        date of the enactment of this Act, the Secretary shall submit 
        to the congressional defense committees a report on the safety 
        of mail within the military mail system for delivery.
            (2) Elements.--The report shall include the following:
                    (A) An assessment of any existing deficiencies in 
                the military mail system in ensuring that mail within 
                such system is safe for delivery.
                    (B) The plan developed under subsection (a).
                    (C) An estimate of the time and resources required 
                to implement the plan.
                    (D) A description of the delegation within the 
                Department of Defense of responsibility for ensuring 
                that mail within the military mail system is safe for 
                delivery, including responsibility for the development, 
                implementation, and oversight of improvements to that 
                system in order to ensure the safety of such mail for 
                delivery.
            (3) Form.--The report shall be submitted in unclassified 
        form, but may include a classified annex.
    (d) Mail Within the Military Mail System Defined.--
            (1) In general.--Except as provided in paragraph (2), in 
        this section, the term ``mail within the military mail 
        system''--
                    (A) means--
                            (i) any mail that is posted through the 
                        Military Post Offices (including Army Post 
                        Offices (APOs) and Fleet Post Offices (FPOs)), 
                        Department of Defense mail centers, military 
                        Air Mail Terminals, and military Fleet Mail 
                        Centers; and
                            (ii) any mail or package posted in the 
                        United States that is addressed to an 
                        unspecified member of the Armed Forces; and
                    (B) includes any official mail posted by the 
                Department of Defense.
            (2) Exception.--The term does not include any mail posted 
        as otherwise described in paragraph (1) that has been screened 
        for safety for delivery by the United States Postal Service 
        before its posting as so described.

SEC. 1062. DELIVERY OF MAIL ADDRESSED TO ANY SERVICE MEMBER.

    (a) Program of Delivery of Mail.--The Secretary of Defense shall 
carry out a program under which mail and packages addressed to Any 
Service Member that are posted in the United States shall be delivered 
to deployed members of the Armed Forces overseas at or through such 
Army Post Offices (APOs) and Fleet Post Offices (FPOs) as the Secretary 
shall designate for purposes of the program.
    (b) Screening of Mail.--In carrying out the program required by 
subsection (a), the Secretary shall take appropriate actions to ensure 
that the mail and packages covered by the program are screened in order 
to detect the presence in such mail and packages of biological, 
chemical, or radiological weapons, agents, or pathogens, or explosive 
devices, before such mail and packages are delivered to members of the 
Armed Forces.
    (c) Distribution.--The Secretary shall ensure that mail and 
packages delivered under the program required by subsection (a) are 
widely distributed on an equitable basis among all the Armed Forces in 
their overseas areas.
    (d) Outreach.--
            (1) In general.--The Secretary shall, in collaboration with 
        the Postmaster General, take appropriate actions to provide 
        information to the public on the program required by subsection 
        (a).
            (2) Outlets.--Information shall be provided to the public 
        under this subsection through Department of Defense facilities 
        and communications outlets, Postal Service facilities, and such 
        other means as the Secretary and the Postmaster General 
        consider appropriate.
    (e) Any Service Member Defined.--In this section, the term ``Any 
Service Member'' means an undesignated or unspecified member of the 
Armed Forces (often addressed on mail or packages as ``Any American 
Service Member or Soldier''), rather than any particular or specified 
member of the Armed Forces.

                       Subtitle G--Other Matters

SEC. 1071. POLICY ON ROLE OF MILITARY MEDICAL AND BEHAVIORAL SCIENCE 
              PERSONNEL IN INTERROGATION OF DETAINEES.

    (a) Policy Required.--The Secretary of Defense shall establish the 
policy of the Department of Defense on the role of military medical and 
behavioral science personnel in the interrogation of persons detained 
by the Armed Forces. The policy shall apply uniformly throughout the 
Armed Forces.
    (b) Report.--Not later than March 1, 2006, the Secretary shall 
submit to the congressional defense committees a report on the policy 
established under subsection (a). The report shall set forth the 
policy, and shall include such additional matters on the policy as the 
Secretary considers appropriate.

SEC. 1072. CLARIFICATION OF AUTHORITY TO ISSUE SECURITY REGULATIONS AND 
              ORDERS UNDER INTERNAL SECURITY ACT OF 1950.

    Section 21(a) of the Internal Security Act of 1950 (Public Law 81-
831; 64 Stat. 1005) is amended by inserting ``or military or civilian 
director'' after ``military commander''.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

SEC. 1101. EXTENSION OF AUTHORITY FOR VOLUNTARY SEPARATIONS IN 
              REDUCTIONS IN FORCE.

    Section 3502(f)(5) of title 5, United States Code, is amended by 
striking ``September 30, 2005'' and inserting ``September 30, 2010''.

SEC. 1102. COMPENSATORY TIME OFF FOR NONAPPROPRIATED FUND EMPLOYEES OF 
              THE DEPARTMENT OF DEFENSE.

    Section 5543 of title 5, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) The Secretary of Defense may, on request of a Department of 
Defense employee paid from nonappropriated funds, grant such employee 
compensatory time off from duty instead of overtime pay for overtime 
work.''.

SEC. 1103. EXTENSION OF AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP 
              SUMS.

    Section 5595(i)(4) of title 5, United States Code, is amended by 
striking ``October 1, 2006'' and inserting ``October 1, 2010''.

SEC. 1104. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM 
              ELIGIBILITY.

    Section 8905a(d)(4)(B) of title 5, United States Code, is amended--
            (1) in clause (i), by striking ``October 1, 2006'' and 
        inserting ``October 1, 2010''; and
            (2) in clause (ii)--
                    (A) by striking ``February 1, 2007'' and inserting 
                ``February 1, 2011''; and
                    (B) by striking ``October 1, 2006'' and inserting 
                ``October 1, 2010''.

SEC. 1105. PERMANENT AND ENHANCED AUTHORITY FOR SCIENCE, MATHEMATICS, 
              AND RESEARCH FOR TRANSFORMATION (SMART) DEFENSE EDUCATION 
              PROGRAM.

    (a) Permanent Authority for Program.--Section 1105 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108-375; 118 Stat. 2074; 10 U.S.C. 2192 note) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(1)''; and
                    (B) by striking paragraph (2); and
            (2) by striking ``pilot'' each place it appears.
    (b) Assistance Under Program.--Such section is further amended--
            (1) in subsection (b)--
                    (A) by striking ``(b)'' and all that follows 
                through ``a scholarship'' and inserting ``(b) 
                Assistance.--(1) Under the program under this section, 
                the Secretary of Defense may award a scholarship or 
                fellowship'';
                    (B) in paragraph (1)(B), by inserting 
                ``accredited'' before ``institution of higher 
                education'';
                    (C) in paragraph (2)--
                            (i) by inserting ``or fellowship'' after 
                        ``scholarship'';
                            (ii) by inserting ``equipment expenses,'' 
                        after ``laboratory expenses,''; and
                            (iii) by striking the second sentence; and
                    (D) by adding at the end the following new 
                paragraph:
    ``(3) Any assistance payable to a person under this subsection may 
be paid directly to the person awarded such assistance or to an 
administering entity that shall disburse such assistance to the 
person.''; and
            (2) in subsection (c)(2)--
                    (A) by striking ``a scholarship'' and inserting 
                ``financial assistance'';
                    (B) by striking ``the financial assistance provided 
                under the scholarship'' and inserting ``such financial 
                assistance''; and
                    (C) by striking ``the scholarship.'' and inserting 
                ``such financial assistance.''.
    (c) Employment of Program Participants.--Such section is further 
amended--
            (1) by redesignating subsections (d), (e), (f), (g), and 
        (h) as subsections (e), (f), (g), (h), and (i), respectively; 
        and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Employment of Program Participants.--(1) The Secretary of 
Defense may--
            ``(A) appoint or retain a person participating in the 
        program under this section in a position on an interim basis 
        during the period of such person's pursuit of a degree under 
        the program and for a period not to exceed 2 years after 
        completion of the degree, but only if, during such periods--
                    ``(i) there is no readily available appropriate 
                permanent position for such person; and
                    ``(ii) there is an active and ongoing effort to 
                identify and assign such person to an appropriate 
                permanent position as soon as practicable; and
            ``(B) if there is no appropriate permanent position 
        available after the end of the periods described in 
        subparagraph (A), separate such person from employment with the 
        Department without regard to any other provision of law, in 
        which event the service agreement of such person under 
        subsection (c) shall terminate.
    ``(2) The period of service of a person covered by paragraph (1) in 
a position on an interim basis under that paragraph shall, after 
completion of the degree, be treated as a period of service for 
purposes of satisfying the obligated service requirements of the person 
under the service agreement of the person under subsection (c).''.
    (d) Refund for Period of Unserved Obligated Service.--Paragraph (1) 
of subsection (e) of such section, as redesignated by subsection (c)(1) 
of this section, is amended to read as follows:
    ``(1)(A) A participant in the program under this section who is not 
an employee of the Department of Defense and who voluntarily fails to 
complete the educational program for which financial assistance has 
been provided under this section, or fails to maintain satisfactory 
academic progress as determined in accordance with regulations 
prescribed by the Secretary of Defense, shall refund to the United 
States an appropriate amount, as determined by the Secretary.
    ``(B) A participant in the program under this section who is an 
employee of the Department of Defense and who--
            ``(i) voluntarily fails to complete the educational program 
        for which financial assistance has been provided, or fails to 
        maintain satisfactory academic progress as determined in 
        accordance with regulations prescribed by the Secretary; or
            ``(ii) before completion of the period of obligated service 
        required of such participant--
                    ``(I) voluntarily terminates such participant's 
                employment with the Department; or
                    ``(II) is removed from such participant's 
                employment with the Department on the basis of 
                misconduct,
shall refund the United States an appropriate amount, as determined by 
the Secretary.''.
    (e) Conforming Amendments.--
            (1) Subsection (f) of such section, as redesignated by 
        subsection (c)(1) of this section, is further amended by 
        striking ``Pilot''.
            (2) The heading of such section is amended to read as 
        follows:

``SEC. 1105. SCIENCE, MATHEMATICS, AND RESEARCH FOR TRANSFORMATION 
              (SMART) DEFENSE EDUCATION PROGRAM.''.

            (3) Section 3304(a)(3)(B)(ii) of title 5, United States 
        Code, is--
                    (A) by striking ``Scholarship Pilot Program'' and 
                inserting ``Defense Education Program''; and
                    (B) by inserting ``(10 U.S.C. 2912 note)'' after 
                ``for Fiscal Year 2005''.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

SEC. 1201. COMMANDERS' EMERGENCY RESPONSE PROGRAM.

    (a) Authority for Fiscal Years 2006 and 2007.--During fiscal year 
2006 and fiscal year 2007, from funds made available to the Department 
of Defense for operation and maintenance for such fiscal year, not to 
exceed $500,000,000 may be used in each such fiscal year to provide 
funds--
            (1) for the Commanders' Emergency Response Program; and
            (2) for a similar program to assist the people of 
        Afghanistan.
    (b) Quarterly Reports.--Not later than 15 days after the end of 
each fiscal-year quarter (beginning with the first quarter of fiscal 
year 2006), the Secretary of Defense shall submit to the congressional 
defense committees a report regarding the source of funds and the 
allocation and use of funds during that quarter that were made 
available pursuant to the authority provided in this section or under 
any other provision of law for the purposes of the programs under 
subsection (a).
    (c) Commanders' Emergency Response Program Defined.--In this 
section, the term ``Commanders' Emergency Response Program'' means the 
program established by the Administrator of the Coalition Provisional 
Authority for the purpose of enabling United States military commanders 
in Iraq to respond to urgent humanitarian relief and reconstruction 
requirements within their areas of responsibility by carrying out 
programs that will immediately assist the Iraqi people.

SEC. 1202. ENHANCEMENT AND EXPANSION OF AUTHORITY TO PROVIDE 
              HUMANITARIAN AND CIVIC ASSISTANCE.

    (a) Increase in Authorized Expenses Associated With Detection and 
Clearance of Landmines.--Subsection (c)(3) of section 401 of title 10, 
United States Code, is amended by striking ``$5,000,000'' and inserting 
``$10,000,000''.
    (b) Inclusion of Assistance on Communications and Information 
Infrastructure Under Authority.--Such section is further amended--
            (1) in subsection (c)--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) by inserting after paragraph (3) the following 
                new paragraph (4):
    ``(4) Expenses covered by paragraph (1) also include expenses 
incurred in providing communications or information systems equipment 
or supplies that are transferred or otherwise furnished to a foreign 
country in furtherance of the provision of other assistance under this 
section.''; and
            (2) in subsection (e), by adding at the end the following 
        new paragraph:
            ``(6) Restoring or improving the information and 
        communications infrastructure of a country, including 
        activities relating to the furnishing of education, training, 
        and technical assistance with respect to information and 
        communications technology.''.
    (c) Expansion of Authority To Provide Medical, Dental, and 
Veterinary Care.--Subsection (e)(1) of such section is amended by 
inserting before the period the following: ``, including education, 
training, and technical assistance related to the care provided''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

SEC. 1203. MODIFICATION OF GEOGRAPHIC LIMITATION ON PAYMENT OF 
              PERSONNEL EXPENSES UNDER BILATERAL OR REGIONAL 
              COOPERATION PROGRAMS.

    Section 1051(b)(1) of title 10, United States Code, is amended by 
striking ``within the area'' and all that follows through ``developing 
country is located'' and inserting ``to and within the area of 
responsibility of a unified combatant command (as such term is defined 
in section 161(c) of this title)''.

SEC. 1204. PAYMENT OF TRAVEL EXPENSES OF COALITION LIAISON OFFICERS.

    (a) Authority To Pay Certain Travel Expenses of Military Officers 
on Coalition Missions.--Subsection (b) of section 1051a of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
    ``(3) The Secretary may pay the travel expenses of a military 
officer of a developing country involved in coalition operations while 
temporarily assigned to the headquarters of a combatant command, 
component command, or subordinate operational command for the mission-
related roundtrip travel of such officer, upon the direction of the 
commander of such command, from such headquarters to one or more 
locations specified by the commander of such command if such travel is 
determined to be in support of United States national interests.''.
    (b) Extension of Authority To Pay Travel Expenses.--Subsection (e) 
of such section is amended by striking ``September 30, 2005'' and 
inserting ``September 30, 2009''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October, 1, 2005.

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

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2006 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2006 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $415,549,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2006 in 
section 301(19) for Cooperative Threat Reduction programs, the 
following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $78,900,000.
            (2) For nuclear weapons storage security in Russia, 
        $74,100,000.
            (3) For nuclear weapons transportation security in Russia, 
        $30,000,000.
            (4) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $40,600,000.
            (5) For biological weapons proliferation prevention in the 
        former Soviet Union, $60,849,000.
            (6) For chemical weapons destruction in Russia, 
        $108,500,000.
            (7) For defense and military contacts, $8,000,000.
            (8) For activities designated as Other Assessments/
        Administrative Support, $14,600,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2006 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (8) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2006 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (c) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraphs (2) and (3), in any case in which the Secretary of Defense 
determines that it is necessary to do so in the national interest, the 
Secretary may obligate amounts appropriated for fiscal year 2006 for a 
purpose listed in any of the paragraphs in subsection (a) in excess of 
the specific amount authorized for that purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount 
authorized for such purpose may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress notification of the 
        intent to do so together with a complete discussion of the 
        justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts for a purpose stated in any of 
paragraphs (6) through (8) of subsection (a) in excess of 125 percent 
of the specific amount authorized for such purpose.

SEC. 1303. PERMANENT WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR THREAT 
              REDUCTION IN STATES OF THE FORMER SOVIET UNION.

    Section 1306 of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314; 22 U.S.C. 5952 note) is 
amended--
            (1) by striking subsections (c) and (d); and
            (2) by redesignating subsection (e) as subsection (c).

SEC. 1304. MODIFICATION OF AUTHORITY TO USE COOPERATIVE THREAT 
              REDUCTION FUNDS OUTSIDE THE FORMER SOVIET UNION.

    (a) In General.--Subsection (a) of section 1308 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 
Stat. 1662; 22 U.S.C. 5963) is amended--
            (1) by striking ``the President may'' and inserting ``the 
        Secretary of Defense may''; and
            (2) by striking ``if the President'' and inserting ``if the 
        Secretary of Defense, with the concurrence of the Secretary of 
        State,''.
    (b) Availability of Funds.--Subsection (d) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``The President'' and inserting 
                ``The Secretary of Defense''; and
                    (B) by striking ``the President'' and inserting 
                ``the Secretary of Defense, with the concurrence of the 
                Secretary of State,''; and
            (2) in paragraph (2)--
                    (A) by striking ``10 days after'' and inserting 
                ``15 days before''; and
                    (B) by striking ``the President shall notify 
                Congress'' and inserting ``the Secretary of Defense 
                shall notify the congressional defense committees''.

SEC. 1305. REPEAL OF REQUIREMENT FOR ANNUAL COMPTROLLER GENERAL 
              ASSESSMENT OF ANNUAL DEPARTMENT OF DEFENSE REPORT ON 
              ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE THREAT 
              REDUCTION PROGRAMS.

    Section 1308 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-341) is amended by striking subsection (e).

  TITLE XIV--AUTHORIZATION FOR SUPPLEMENTAL APPROPRIATIONS FOR IRAQ, 
              AFGHANISTAN, AND THE GLOBAL WAR ON TERRORISM

SEC. 1401. PURPOSE.

    The purpose of this title is to authorize supplemental 
appropriations for the Department of Defense for fiscal year 2006 for 
operations in Iraq, Afghanistan, and the global war on terrorism that 
are in addition to the amounts otherwise authorized to be appropriated 
for the Department of Defense by this Act.

SEC. 1402. DESIGNATION AS EMERGENCY AMOUNTS.

    Amounts appropriated pursuant to the authorizations of 
appropriations in this title are designated as an emergency requirement 
pursuant to section 402(b) of the conference report to accompany H. 
Con. Res. 95 (109th Congress).

SEC. 1403. ARMY PROCUREMENT.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal year 2006 for procurement accounts of the Army in amounts as 
follows:
            (1) For aircraft, $70,300,000.
            (2) For weapons and tracked combat vehicles, $27,800,000.
            (3) For other procurement $271,700,000.
    (b) Availability of Certain Amounts.--
            (1) Availability.--Of the amounts authorized to be 
        appropriated by subsection (a)(3), $120,000,000 shall be 
        available for purposes as follows:
                    (A) Procurement of up-armored high mobility 
                multipurpose wheeled vehicles (UAHs).
                    (B) Procurement of wheeled vehicle add-on armor 
                protection.
                    (C) Procurement of M1151/M1152 high mobility 
                multipurpose wheeled vehicles.
            (2) Allocation of funds.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary of the Army shall allocate the manner in 
                which amounts available under paragraph (1) shall be 
                available for the purposes specified in that paragraph.
                    (B) Limitation.--Amounts available under paragraph 
                (1) may not be allocated under subparagraph (A) until 
                the Secretary certifies to the congressional defense 
                committees that the Army has a validated requirement 
                for procurement for a purpose specified in paragraph 
                (1) based on a statement of urgent needs from a 
                commander of a combatant command.
                    (C) Reports.--Not later than 15 days after an 
                allocation of funds is made under subparagraph (A), the 
                Secretary shall submit to the congressional defense 
                committees a report describing such allocation of 
                funds.

SEC. 1404. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2006 for the procurement accounts of the Navy in amounts as 
follows:
            (1) For aircraft, $183,800,000.
            (2) For weapons, including missiles and torpedoes, 
        $165,500,000.
            (3) For other procurement, $30,800,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2006 for the procurement account for the Marine Corps 
in the amount of $89,200,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to appropriated for fiscal year 2006 for the procurement account for 
ammunition for the Navy and the Marine Corps in the amount of 
$104,500,000.

SEC. 1405. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for the procurement accounts for the Air Force in the amounts as 
follows:
            (1) For aircraft, $104,700,000.
            (2) For other procurement, $51,900,000.

SEC. 1406. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal year 2006 
for the use of the Armed Forces for expenses, not otherwise provided 
for, for operation and maintenance, in amounts as follows:
            (1) For the Army, $22,139,775,000, of which $200,000,000 
        may be made available for linguistic support operations in Iraq 
        and Afghanistan.
            (2) For the Navy, $1,944,300,000.
            (3) For the Marine Corps, $1,808,231,000.
            (4) For the Air Force, $2,635,555,000.
            (5) For Defense-wide activities, $3,470,118,000.

SEC. 1407. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2006 for expenses, not otherwise provided 
for, the Defense Health Program, in the amount of $977,778,000, for 
operation and maintenance.

SEC. 1408. MILITARY PERSONNEL.

    Funds are hereby authorized to be appropriated to the Department of 
Defense for military personnel accounts for fiscal year 2006 in amounts 
as follows:
            (1) For military personnel of the Army, $9,517,643,000.
            (2) For military personnel of the Navy, $350,000,000.
            (3) For military personnel of the Marine Corps, 
        $811,771,000.
            (4) For military personnel of the Air Force, $916,559,000.

SEC. 1409. IRAQ FREEDOM FUND.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal year 2006 for the Iraq Freedom Fund in the amount of 
$4,325,670,000.
    (b) Limitation on Availability of Certain Amount.--Of the amount 
authorized to be appropriated by subsection (a), not less than 
$500,000,000 shall be available only for support of activities of the 
Joint Improvised Explosive Device Task Force.
    (c) Transfer.--
            (1) Transfer authorized.--Subject to paragraph (2), amounts 
        authorized to be appropriated by subsection (a) may be 
        transferred from the Iraq Freedom Fund to any accounts as 
        follows:
                    (A) Operation and maintenance accounts of the Armed 
                Forces.
                    (B) Military personnel accounts.
                    (C) Research, development, test, and evaluation 
                accounts of the Department of Defense.
                    (D) Procurement accounts of the Department of 
                Defense.
                    (E) Accounts providing funding for classified 
                programs.
                    (F) The operating expenses account of the Coast 
                Guard.
            (2) Notice to congress.--A transfer may not be made under 
        the authority in paragraph (1) until 5 days after the date on 
        which the Secretary of Defense notifies the congressional 
        defense committees in writing of the transfer.
            (3) Treatment of transferred funds.--Amounts transferred to 
        an account under the authority in paragraph (1) shall be merged 
        with amounts in such account, and shall be made available for 
        the same purposes, and subject to the same conditions and 
        limitations, as amounts in such account.
            (4) Effect on authorization amounts.--A transfer of an 
        amount to an account under the authority in paragraph (1) shall 
        be deemed to increase the amount authorized for such account by 
        an amount equal to the amount transferred.

SEC. 1410. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--
            (1) Transfer authorized.--Upon determination by the 
        Secretary of Defense that such action is necessary in the 
        national interest, the Secretary may transfer amounts of 
        authorizations made available to the Department of Defense in 
        this title for fiscal year 2006 between any such authorizations 
        for that fiscal year (or any subdivisions thereof). Amounts of 
        authorizations so transferred shall be merged with and be 
        available for the same purposes as the authorization to which 
        transferred.
            (2) Limitation on aggregate amount.--The total amount of 
        authorizations that the Secretary may transfer under the 
        authority of this section may not exceed $2,500,000,000.
            (3) Construction with other transfer authority.--The 
        transfer authority provided in this section is in addition to 
        any other transfer authority available to the Secretary of 
        Defense.
    (b) Other Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred;
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress; and
            (3) may not be combined with the authority under section 
        1001.
    (c) Notice and Wait.--A transfer may be made under the authority of 
this section only after the Secretary--
            (1) consults with the Chairmen and Ranking Members of each 
        of the congressional defense committees with respect to such 
        transfer; and
            (2) on a date after consultation under paragraph (1), but 
        not later than five days before the date of such transfer, 
        submits to the congressional defense committees written notice 
        of such transfer.
    (d) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.




                                                       Calendar No. 103

109th CONGRESS

  1st Session

                                S. 1043

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2006 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                              May 17, 2005

                 Read twice and placed on the calendar