[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1548 Reported in Senate (RS)]






                                                       Calendar No. 261
110th CONGRESS
  1st Session
                                S. 1548

     To authorize appropriations for fiscal year 2008 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for such fiscal year, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 5, 2007

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

                             June 13, 2007

 Referred to the Select Committee on Intelligence pursuant to section 
 3(b) of S. Res. 400, 94th Congress, as amended by S. Res. 445, 108th 
        Congress, for a period not to exceed 10 days of session

                             June 29, 2007

              Reported by Mr. Rockefeller, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2008 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for such fiscal year, 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 2008''.

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.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Rapid Acquisition Fund.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
                            Enhancement Package upgrades.
Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley 
                            fighting vehicle upgrades.
Sec. 113. Stryker Mobile Gun System.
Sec. 114. Consolidation of Joint Network Node program and Warfighter 
                            Information Network-Tactical program into 
                            single Army tactical network program.
                       Subtitle C--Navy Programs

Sec. 131. Multiyear procurement authority for Virginia class submarine 
                            program.
                     Subtitle D--Air Force Programs

Sec. 141. Limitation on retirement of C-130E/H tactical airlift 
                            aircraft.
Sec. 142. Limitation on retirement of KC-135E aerial refueling 
                            aircraft.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

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

Sec. 211. Advanced Sensor Applications Program.
Sec. 212. Active protection systems.
Sec. 213. Obligation and expenditure of funds for competitive 
                            procurement of propulsion system for the 
                            Joint Strike Fighter.
                  Subtitle C--Missile Defense Programs

Sec. 231. Limitation on availability of funds for procurement, 
                            construction, and deployment of missile 
                            defenses in Europe.
Sec. 232. Limitation on availability of funds for deployment of missile 
                            defense interceptors in Alaska.
Sec. 233. Budget and acquisition requirements for Missile Defense 
                            Agency activities.
Sec. 234. Participation of Director, Operational Test and Evaluation, 
                            in missile defense test and evaluation 
                            activities.
Sec. 235. Extension of Comptroller General assessments of ballistic 
                            missile defense programs.
                       Subtitle D--Other Matters

Sec. 251. Modification of notice and wait requirement for obligation of 
                            funds for foreign comparative test program.
Sec. 252. Modification of cost sharing requirement for Technology 
                            Transition Initiative.
Sec. 253. Strategic plan for the Manufacturing Technology Program.
Sec. 254. Modification of authorities on coordination of Defense 
                            Experimental Program to Stimulate 
                            Competitive Research with similar Federal 
                            programs.
Sec. 255. Enhancement of defense nanotechnology research and 
                            development program.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
                  Subtitle B--Environmental Provisions

Sec. 311. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with the Arctic Surplus 
                            Superfund Site, Fairbanks, Alaska.
Sec. 313. Payment to Environmental Protection Agency of stipulated 
                            penalties in connection with Jackson Park 
                            Housing Complex, Washington.
    Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Availability of funds in Defense Information Systems Agency 
                            Working Capital Fund for technology 
                            upgrades to Defense Information Systems 
                            Network.
Sec. 322. Extension of temporary authority for contract performance of 
                            security guard functions.
Sec. 323. Report on incremental cost of early 2007 enhanced deployment.
Sec. 324. Individual body armor.
                 Subtitle D--Workplace and Depot Issues

Sec. 341. Extension of authority for Army industrial facilities to 
                            engage in cooperative activities with non-
                            Army entities.
Sec. 342. Two-year extension of Arsenal Support Demonstration Program.
                       Subtitle E--Other Matters

Sec. 351. Enhancement of corrosion control and prevention functions 
                            within Department of Defense.
Sec. 352. Reimbursement for National Guard support provided to Federal 
                            agencies.
Sec. 353. Reauthorization of Aviation Insurance Program.
Sec. 354. Property accountability and disposition of unlawfully 
                            obtained property of the Armed Forces.
Sec. 355. Authority to impose reasonable conditions on the payment of 
                            full replacement value for claims related 
                            to personal property transported at 
                            Government expense.
Sec. 356. Authority for individuals to retain combat uniforms issued in 
                            connection with contingency operations.
Sec. 357. Modification of requirements on Comptroller General report on 
                            the readiness of Army and Marine Corps 
                            ground forces.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2008 limitation on number of non-dual status 
                            technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on 
                            active duty for operational support.
              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Increase in authorized strengths for Army officers on active 
                            duty in the grade of major to meet force 
                            structure requirements.
Sec. 502. Increase in authorized strengths for Navy officers on active 
                            duty in grades of lieutenant commander, 
                            commander, and captain to meet force 
                            structure requirements.
Sec. 503. Expansion of exclusion of military permanent professors from 
                            strength limitations for officers below 
                            general and flag grades.
Sec. 504. Mandatory retirement age for active-duty general and flag 
                            officers continued on active duty.
Sec. 505. Authority for reduced mandatory service obligation for 
                            initial appointments of officers in 
                            critically short health professional 
                            specialties.
Sec. 506. Increase in authorized number of permanent professors at the 
                            United States Military Academy.
Sec. 507. Expansion of authority for reenlistment of officers in their 
                            former enlisted grade.
Sec. 508. Enhanced authority for reserve general and flag officers to 
                            serve on active duty.
Sec. 509. Promotion of career military professors of the Navy.
                 Subtitle B--Enlisted Personnel Policy

Sec. 521. Increase in authorized daily average of number of members in 
                            pay grade E-9.
                Subtitle C--Reserve Component Management

Sec. 531. Revised designation, structure, and functions of the Reserve 
                            Forces Policy Board.
Sec. 532. Charter for the National Guard Bureau.
Sec. 533. Appointment, grade, duties, and retirement of the Chief of 
                            the National Guard Bureau.
Sec. 534. Mandatory separation for years of service of Reserve officers 
                            in the grade of lieutenant general or vice 
                            admiral.
Sec. 535. Increase in period of temporary Federal recognition as 
                            officers of the National Guard from six to 
                            twelve months.
                   Subtitle D--Education and Training

Sec. 551. Grade and service credit of commissioned officers in 
                            uniformed medical accession programs.
Sec. 552. Expansion of number of academies supportable in any State 
                            under STARBASE program.
Sec. 553. Repeal of post-2007-2008 academic year prohibition on phased 
                            increase in cadet strength limit at the 
                            United States Military Academy.
Sec. 554. Treatment of Southold, Mattituck, and Greenport High Schools, 
                            Southold, New York, as single institution 
                            for purposes of maintaining a Junior 
                            Reserve Officers' Training Corps unit.
           Subtitle E--Defense Dependents' Education Matters

Sec. 561. Continuation of authority to assist local educational 
                            agencies that benefit dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.
Sec. 562. Impact aid for children with severe disabilities.
Sec. 563. Inclusion of dependents of non-Department of Defense 
                            employees employed on Federal property in 
                            plan relating to force structure changes, 
                            relocation of military units, or base 
                            closures and realignments.
Sec. 564. Authority for payment of private boarding school tuition for 
                            military dependents in overseas areas not 
                            served by Department of Defense dependents' 
                            schools.
       Subtitle F--Military Justice and Legal Assistance Matters

Sec. 571. Authority of judges of the United States Court of Appeals for 
                            the Armed Forces to administer oaths.
Sec. 572. Military legal assistance for Department of Defense civilian 
                            employees in areas without access to non-
                            military legal assistance.
Sec. 573. Modification of authorities on senior members of the Judge 
                            Advocate Generals' corps.
                 Subtitle G--Military Family Readiness

Sec. 581. Department of Defense Military Family Readiness Council.
Sec. 582. Department of Defense policy and plans for military family 
                            readiness.
                       Subtitle H--Other Matters

Sec. 591. Enhancement of carryover of accumulated leave for members of 
                            the Armed Forces.
Sec. 592. Uniform policy on performances by military bands.
Sec. 593. Waiver of time limitations on award of Medals of Honor to 
                            certain members of the Army.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Allowance for participation of Reserves in electronic 
                            screening.
Sec. 603. Midmonth payment of basic pay for contributions of members 
                            participating in Thrift Savings Plan.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
                            health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 615. Increase in incentive special pay and multiyear retention 
                            bonus for medical officers of the Armed 
                            Forces.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Enhancement of hardship duty pay.
Sec. 618. Inclusion of service as off-cycle crewmember of multi-crewed 
                            ship in sea duty for career sea pay.
Sec. 619. Modification of reenlistment bonus for members of the 
                            Selected Reserve.
Sec. 620. Increase in years of commissioned service covered by 
                            agreements for nuclear-qualified officers 
                            extending periods of active duty.
Sec. 621. Authority to waive 25-year active duty limit for retention 
                            bonus for critical military skills with 
                            respect to certain members.
Sec. 622. Codification and improvement of authority to pay bonus to 
                            encourage members of the Army to refer 
                            other persons for enlistment in the Army.
Sec. 623. Authority to pay bonus to encourage Department of Defense 
                            personnel to refer other persons for 
                            appointment as officers to serve in health 
                            professions.
Sec. 624. Accession bonus for participants in Armed Forces Health 
                            Professions Scholarship and Financial 
                            Assistance program.
            Subtitle C--Travel and Transportation Allowances

Sec. 641. Payment of expenses of travel to the United States for 
                            obstetrical purposes of dependents located 
                            in very remote locations outside the United 
                            States.
Sec. 642. Payment of moving expenses for Junior Reserve Officers' 
                            Training Corps instructors in hard-to-fill 
                            positions.
             Subtitle D--Retired Pay and Survivor Benefits

Sec. 651. Modification of scheme for payment of death gratuity payable 
                            with respect to members of the Armed 
                            Forces.
Sec. 652. Annuities for guardians or caretakers of dependent children 
                            under Survivor Benefit Plan.
Sec. 653. Expansion of combat-related special compensation eligibility 
                            for chapter 61 military retirees.
Sec. 654. Clarification of application of retired pay multiplier 
                            percentage to members of the uniformed 
                            services with over 30 years of service.
Sec. 655. Commencement of receipt of non-regular service retired pay by 
                            members of the Ready Reserve on active 
                            Federal status or active duty for 
                            significant periods.
                     Subtitle E--Education Benefits

Sec. 671. Tuition assistance for off-duty training or education.
Sec. 672. Expansion of Selected Reserve education loan repayment 
                            program.
                       Subtitle F--Other Matters

Sec. 681. Enhancement of authorities on income replacement payments for 
                            Reserves experiencing extended and frequent 
                            mobilization for active-duty service.
Sec. 682. Overseas naturalization of military family members.
                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Inclusion of TRICARE retail pharmacy program in Federal 
                            procurement of pharmaceuticals.
Sec. 702. Surveys on continued viability of TRICARE Standard and 
                            TRICARE Extra.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Substantial savings under multiyear contracts.
Sec. 802. Changes to Milestone B certifications.
Sec. 803. Comptroller General report on Department of Defense 
                            organization and structure for major 
                            defense acquisition programs.
Sec. 804. Investment strategy for major defense acquisition programs.
Sec. 805. Report on implementation of recommendations on total 
                            ownership cost for major weapon systems.
  Subtitle B--Amendments Relating to General Contracting Authorities, 
                      Procedures, and Limitations

Sec. 821. Enhanced competition requirements for task and delivery order 
                            contracts.
Sec. 822. Clarification of rules regarding the procurement of 
                            commercial items.
Sec. 823. Clarification of rules regarding the procurement of 
                            commercial services.
Sec. 824. Modification of competition requirements for purchases from 
                            Federal Prison Industries.
Sec. 825. Five-year extension of authority to carry out certain 
                            prototype projects.
Sec. 826. Multiyear procurement authority for electricity from 
                            renewable energy sources.
             Subtitle C--Acquisition Policy and Management

Sec. 841. Joint Requirements Oversight Council.
Sec. 842. Management structure for the procurement of contract 
                            services.
Sec. 843. Specification of amounts requested for procurement of 
                            contract services.
Sec. 844. Department of Defense Acquisition Workforce Development Fund.
Sec. 845. Inventories and reviews of contracts for services based on 
                            cost or time of performance.
Sec. 846. Internal controls for procurements on behalf of the 
                            Department of Defense by certain non-
                            defense agencies.
          Subtitle D--Department of Defense Contractor Matters

Sec. 861. Protection for contractor employees from reprisal for 
                            disclosure of certain information.
Sec. 862. Requirements for defense contractors relating to certain 
                            former Department of Defense officials.
Sec. 863. Report on contractor ethics programs of major defense 
                            contractors.
Sec. 864. Report on Department of Defense contracting with contractors 
                            or subcontractors employing members of the 
                            Selected Reserve.
                       Subtitle E--Other Matters

Sec. 871. Contractors performing private security functions in areas of 
                            combat operations.
Sec. 872. Enhanced authority to acquire products and services produced 
                            in Iraq and Afghanistan.
Sec. 873. Defense Science Board review of Department of Defense 
                            policies and procedures for the acquisition 
                            of information technology.
Sec. 874. Enhancement and extension of acquisition authority for the 
                            unified combatant command for joint 
                            warfighting experimentation.
Sec. 875. Repeal of requirement for identification of essential 
                            military items and military system 
                            essential item breakout list.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Repeal of limitation on major Department of Defense 
                            headquarters activities personnel.
Sec. 902. Chief management officers of the Department of Defense.
Sec. 903. Modification of background requirement of individuals 
                            appointed as Under Secretary of Defense for 
                            Acquisition, Technology, and Logistics.
Sec. 904. Department of Defense Board of Actuaries.
Sec. 905. Assistant Secretaries of the military departments for 
                            acquisition matters; principal military 
                            deputies.
Sec. 906. Flexible authority for number of Army Deputy Chiefs of Staff 
                            and Assistant Chiefs of Staff.
Sec. 907. Sense of Congress on term of office of the Director of 
                            Operational Test and Evaluation.
                       Subtitle B--Space Matters

Sec. 921. Space posture review.
Sec. 922. Additional report on oversight of acquisition for defense 
                            space programs.
                       Subtitle C--Other Matters

Sec. 931. Department of Defense consideration of effect of climate 
                            change on Department facilities, 
                            capabilities, and missions.
Sec. 932. Board of Regents for the Uniformed Services University of the 
                            Health Sciences.
Sec. 933. United States Military Cancer Institute.
Sec. 934. Western Hemisphere Center for Excellence in Human Rights.
Sec. 935. Inclusion of commanders of Western Hemisphere combatant 
                            commands in Board of Visitors of Western 
                            Hemisphere Institute for Security 
                            Cooperation.
Sec. 936. Comptroller General assessment of proposed reorganization of 
                            the office of the Under Secretary of 
                            Defense for Policy.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
                            appropriations for fiscal year 2007.
Sec. 1003. Modification of fiscal year 2007 general transfer authority.
Sec. 1004. United States contribution to NATO common-funded budgets in 
                            fiscal year 2008.
Sec. 1005. Financial management transformation initiative for the 
                            Defense Agencies.
Sec. 1006. Repeal of requirement for two-year budget cycle for the 
                            Department of Defense.
Sec. 1007. Extension of period for transfer of funds to Foreign 
                            Currency Fluctuations, Defense account.
                  Subtitle B--Counter-Drug Activities

Sec. 1011. Expansion of Department of Defense authority to provide 
                            support for counter-drug activities to 
                            certain additional foreign governments.
         Subtitle C--Miscellaneous Authorities and Limitations

Sec. 1021. Enhancement of authority to pay rewards for assistance in 
                            combating terrorism.
Sec. 1022. Repeal of modification of authorities relating to the use of 
                            the Armed Forces in major public 
                            emergencies.
Sec. 1023. Procedures for Combatant Status Review Tribunals; 
                            modification of military commission 
                            authorities.
Sec. 1024. Gift acceptance authority.
Sec. 1025. Expansion of cooperative agreement authority for management 
                            of cultural resources.
Sec. 1026. Minimum annual purchase amounts for airlift from carriers 
                            participating in the Civil Reserve Air 
                            Fleet.
Sec. 1027. Provision of Air Force support and services to foreign 
                            military and state aircraft.
Sec. 1028. Participation in Strategic Airlift Capability Partnership.
Sec. 1029. Responsibility of the Air Force for fixed-wing support of 
                            Army intra-theater logistics.
Sec. 1030. Prohibition on sale of parts for F-14 fighter aircraft.
                          Subtitle D--Reports

Sec. 1041. Renewal of submittal of plans for prompt global strike 
                            capability.
Sec. 1042. Report on threats to the United States from ungoverned 
                            areas.
Sec. 1043. Study on national security interagency system.
                       Subtitle E--Other Matters

Sec. 1061. Revised nuclear posture review.
Sec. 1062. Termination of Commission on the Implementation of the New 
                            Strategic Posture of the United States.
<DELETED>Sec. 1063. Communications with the Committees on Armed 
                            Services of the Senate and the House of 
                            Representatives.
Sec. 1064. Repeal of standards for disqualification from issuance of 
                            security clearances by the Department of 
                            Defense.
</DELETED>Sec. 1065. Advisory panel on Department of Defense 
                            capabilities for support of civil 
                            authorities after certain incidents.
Sec. 1066. Sense of Congress on the Western Hemisphere Institute for 
                            Security Cooperation.
Sec. 1067. Technical amendments to title 10, United States Code, 
                            arising from enactment of the Intelligence 
                            Reform and Terrorism Prevention Act of 
                            2004.
Sec. 1068. Establishment of National Foreign Language Coordination 
                            Council.
Sec. 1069. Qualifications for public aircraft status of aircraft under 
                            contract with the Armed Forces.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Compensation of Federal wage system employees for certain 
                            travel hours.
Sec. 1102. Retirement service credit for service as cadet or midshipman 
                            at a military service academy.
Sec. 1103. Continuation of life insurance coverage for Federal 
                            employees called to active duty.
Sec. 1104. Department of Defense National Security Personnel System.
Sec. 1105. Authority to waive limitation on premium pay for Federal 
                            civilian employees working overseas under 
                            areas of United States Central Command.
Sec. 1106. Authority for inclusion of certain Office of Defense 
                            Research and Engineering positions in 
                            experimental personnel program for 
                            scientific and technical personnel.
             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Authority to equip and train foreign personnel to assist in 
                            accounting for missing United States 
                            personnel.
Sec. 1202. Extension and enhancement of authority for security and 
                            stabilization assistance.
Sec. 1203. Commanders' Emergency Response Program.
Sec. 1204. Government Accountability Office report on Global Peace 
                            Operations Initiative.
             Subtitle B--Other Authorities and Limitations

Sec. 1211. Cooperative opportunities documents under cooperative 
                            research and development agreements with 
                            NATO organizations and other allied and 
                            friendly foreign countries.
Sec. 1212. Extension and expansion of temporary authority to use 
                            acquisition and cross-servicing agreements 
                            to lend military equipment for personnel 
                            protection and survivability.
Sec. 1213. Acceptance of funds from the Government of Palau for costs 
                            of military Civic Action Teams.
Sec. 1214. Extension of participation of the Department of Defense in 
                            multinational military centers of 
                            excellence.
Sec. 1215. Limitation on assistance to the Government of Thailand.
Sec. 1216. Presidential report on policy objectives and United States 
                            strategy regarding Iran.
Sec. 1217. Limitation on availability of certain funds pending 
                            implementation of requirements regarding 
                            North Korea.
                          Subtitle C--Reports

Sec. 1231. Reports on United States policy and military operations in 
                            Afghanistan.
Sec. 1232. Strategy for enhancing security in Afghanistan by 
                            eliminating safe havens for violent 
                            extremists in Pakistan.
Sec. 1233. One-year extension of update on report on claims relating to 
                            the bombing of the Labelle Discotheque.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1302. Funding allocations.
Sec. 1303. Specification of Cooperative Threat Reduction programs in 
                            states outside the former Soviet Union.
Sec. 1304. Modification of authority to use Cooperative Threat 
                            Reduction funds outside the former Soviet 
                            Union.
Sec. 1305. Repeal of restrictions on assistance to states of the former 
                            Soviet Union for cooperative threat 
                            reduction.
Sec. 1306. National Academy of Sciences study of prevention of 
                            proliferation of biological weapons.
                    TITLE XIV--OTHER AUTHORIZATIONS

                     Subtitle A--Military Programs

Sec. 1401. Working capital funds.
Sec. 1402. National Defense Sealift Fund.
Sec. 1403. Defense Health Program.
Sec. 1404. Chemical Agents and Munitions Destruction, Defense.
Sec. 1405. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1406. Defense Inspector General.
Sec. 1407. Reduction in certain authorizations due to savings from 
                            lower inflation.
                 Subtitle B--National Defense Stockpile

Sec. 1411. Disposal of ferromanganese.
Sec. 1412. Disposal of chrome metal.
Sec. 1413. Modification of receipt objectives for previously authorized 
                            disposals from the national defense 
                            stockpile.
                       Subtitle C--Civil Programs

Sec. 1421. Armed Forces Retirement Home.
             Subtitle D--Chemical Demilitarization Matters

Sec. 1431. Modification of termination requirement for Chemical 
                            Demilitarization Citizens' Advisory 
                            Commissions.
Sec. 1432. Repeal of certain qualifications requirement for director of 
                            chemical demilitarization management 
                            organization.
Sec. 1433. Sense of Congress on completion of destruction of United 
                            States chemical weapons stockpile.
    TITLE XV--OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

   Subtitle A--Authorization of Additional War-Related Appropriations

Sec. 1501. Army procurement.
Sec. 1502. Navy and Marine Corps procurement.
Sec. 1503. Air Force procurement.
Sec. 1504. Defense-wide activities procurement.
Sec. 1505. Research, development, test, and evaluation.
Sec. 1506. Operation and maintenance.
Sec. 1507. Military personnel.
Sec. 1508. Defense Health Program.
Sec. 1509. Drug Interdiction and Counter-Drug Activities, Defense-wide.
Sec. 1510. Joint Improvised Explosive Device Defeat Fund.
Sec. 1511. Iraq Security Forces Fund.
Sec. 1512. Afghanistan Security Forces Fund.
Sec. 1513. Iraq Freedom Fund.
Sec. 1514. Defense Working Capital Funds.
Sec. 1515. National Defense Sealift Fund.
Sec. 1516. Defense Inspector General.
       Subtitle B--General Provisions Relating to Authorizations

Sec. 1521. Purpose.
Sec. 1522. Treatment as additional authorizations.
Sec. 1523. Special transfer authority.
                       Subtitle C--Other Matters

Sec. 1531. Limitation on availability of funds for certain purposes 
                            relating to Iraq.
Sec. 1532. Reimbursement of certain coalition nations for support 
                            provided to United States military 
                            operations.
Sec. 1533. Logistical support for coalition forces supporting 
                            operations in Iraq and Afghanistan.
Sec. 1534. Competition for procurement of small arms supplied to Iraq 
                            and Afghanistan.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Army as follows:
            (1) For aircraft, $5,229,175,000.
            (2) For missiles, $2,178,102,000.
            (3) For weapons and tracked combat vehicles, 
        $7,546,684,000.
            (4) For ammunition, $2,228,976,000.
            (5) For other procurement, $15,013,155,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for procurement for the Navy as follows:
            (1) For aircraft, $13,475,107,000.
            (2) For weapons, including missiles and torpedoes, 
        $3,078,387,000.
            (3) For shipbuilding and conversion, $13,605,638,000.
            (4) For other procurement, $5,432,412,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for procurement for the Marine Corps in the amount 
of $2,699,057,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $926,597,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,593,813,000.
            (2) For ammunition, $868,917,000.
            (3) For missiles, $5,166,002,000.
            (4) For other procurement, $16,312,962,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Defense-wide procurement in the amount of $3,385,970,000.

SEC. 105. RAPID ACQUISITION FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Rapid Acquisition Fund in the amount of $100,000,000.

                       Subtitle B--Army Programs

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

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

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

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

SEC. 113. STRYKER MOBILE GUN SYSTEM.

    (a) Limitation on Availability of Funds.--None of the amounts 
authorized to be appropriated by sections 101(3) and 1501(3) for 
procurement of weapons and tracked combat vehicles for the Army may be 
obligated or expended for purposes of the procurement of the Stryker 
Mobile Gun System until 30 days after the date on which the Secretary 
of the Army certifies to Congress that the Stryker Mobile Gun System is 
operationally effective, suitable, and survivable for its anticipated 
deployment missions.
    (b) Waiver.--The Secretary of Defense may waive the limitation in 
subsection (a) if the Secretary--
            (1) determines that further procurement of the Stryker 
        Mobile Gun System utilizing amounts referred to in subsection 
        (a) is in the national security interest of the United States 
        notwithstanding the inability of the Secretary of the Army to 
        make the certification required by that subsection; and
            (2) submits to the Congress, in writing , a notification of 
        the waiver together with a discussion of--
                    (A) the reasons for the determination described in 
                paragraph (1); and
                    (B) the actions that will be taken to mitigate any 
                deficiencies that cause the Stryker Mobile Gun System 
                not to be operationally effective, suitable, or 
                survivable, as that case may be, as described in 
                subsection (a).

SEC. 114. CONSOLIDATION OF JOINT NETWORK NODE PROGRAM AND WARFIGHTER 
              INFORMATION NETWORK-TACTICAL PROGRAM INTO SINGLE ARMY 
              TACTICAL NETWORK PROGRAM.

    (a) Consolidation Required.--The Secretary of the Army shall 
consolidate the Joint Network Node program and the Warfighter 
Information Network-Tactical program into a single Army tactical 
network program.
    (b) Report on Consolidation.--
            (1) Report required.--Not later than December 31, 2007, the 
        Secretary shall, with the concurrence of the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics and the 
        Assistant Secretary of Defense for Networks and Information 
        Integration, submit to the congressional defense committees a 
        report setting forth a plan to consolidate the Joint Network 
        Node program and the Warfighter Information Network-Tactical 
        program into a single Army tactical network program as required 
        by subsection (a).
            (2) Elements.--The report required by paragraph (1) shall 
        include with respect to the acquisition of the single Army 
        tactical network required by subsection (a) the following:
                    (A) An analysis of how the systems specified in 
                paragraph (1) will be integrated, including--
                            (i) an analysis of whether there are 
                        opportunities to leverage technologies and 
                        equipment from the Warfighter Information 
                        Network-Tactical program as part of the 
                        continuing development and fielding of the 
                        Joint Network Node; and
                            (ii) an analysis of major technical 
                        challenges of integrating the two programs.
                    (B) A description of the extent to which components 
                of the systems could be used together as elements of a 
                single Army tactical network.
                    (C) A description of the strategy of the Army for 
                completing the systems engineering necessary to ensure 
                the end-to-end interoperability of a single Army 
                tactical network as described in subsection (a).
                    (D) An assessment of the costs of acquiring the 
                systems.
                    (E) An assessment of the technical compatibility of 
                the systems.
                    (F) A description and assessment of the plans of 
                the Army relating to ownership of the technical data 
                packages for the systems, and an assessment of the 
                capacity of the industrial base to support Army needs.
                    (G) A description of the plans and schedule of the 
                Army for fielding the systems, and a description of the 
                associated training schedule.
                    (H) A description of the plans of the Army for 
                sustaining the single Army tactical network.
                    (I) A description of the plans of the Army for the 
                insertion of new technology into the Joint Network 
                Node.
                    (J) A description of the major technical challenges 
                of integrating the two programs.
                    (K) An assessment as to whether other programs 
                should be inserted into the single Army tactical 
                network as required by subsection (a).
                    (L) An analysis of the interoperability 
                requirements between the Army tactical network and the 
                Joint Network Node, an assessment of the technological 
                barriers to achievement of such interoperability 
                requirements, and a description of formal mechanisms of 
                coordination between the Army tactical network and the 
                Joint Network Node program.

                       Subtitle C--Navy Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA CLASS SUBMARINE 
              PROGRAM.

    (a) Authority.--The Secretary of the Navy may, in accordance with 
section 2306b of title 10, United States Code, enter into multiyear 
contracts, beginning with the fiscal year 2009 program year, for the 
procurement of Virginia-class submarines and government-furnished 
equipment.
    (b) Limitation.--The Secretary of the Navy may not enter into a 
contract authorized by subsection (a) until 30 days after the date on 
which the Secretary submits to the congressional defense committees a 
certification that the Secretary has made each of the findings with 
respect to such contract specified in subsection (a) of section 2306b 
of title 10, United States Code.

                     Subtitle D--Air Force Programs

SEC. 141. LIMITATION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT 
              AIRCRAFT.

    (a) Limitation.--The Secretary of the Air Force may not retire C-
130E/H tactical airlift aircraft during fiscal year 2008.
    (b) Maintenance of Certain Retired Aircraft.--The Secretary of the 
Air Force shall maintain each C-130E/H tactical airlift aircraft 
retired during fiscal year 2007 in a condition that will permit recall 
of such aircraft to future service.

SEC. 142. LIMITATION ON RETIREMENT OF KC-135E AERIAL REFUELING 
              AIRCRAFT.

    The Secretary of the Air Force shall not retire any KC-135E aerial 
refueling aircraft of the Air Force in fiscal year 2008 unless the 
Secretary provides written notification of such retirement to the 
congressional defense committees in accordance with established 
procedures.

         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 2008 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $11,268,904,000.
            (2) For the Navy, $16,296,395,000.
            (3) For the Air Force, $25,581,989,000.
            (4) For Defense-wide activities, $21,511,739,000, of which 
        $180,264,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2008.--Of the amounts authorized to be appropriated 
by section 201, $11,204,784,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense budget activity 1, 2, or 3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. ADVANCED SENSOR APPLICATIONS PROGRAM.

    (a) Transfer of Funds.--Of the amount authorized to be appropriated 
by section 201(4) for research, development, test, and evaluation, 
Defense-wide activities, and made available for the Foreign Material 
Acquisition and Exploitation Program and for activities of the Office 
of Special Technology, an aggregate of $20,000,000 shall be transferred 
to the Advanced Sensor Applications Program not later than 60 days 
after the date of the enactment of this Act.
    (b) Reassignment of Program.--Beginning not later than 30 days 
after the date of the enactment of this Act, the Advanced Sensor 
Applications Program shall be a program of the Defense Threat Reduction 
Agency, managed by the Director of the Defense Threat Reduction Agency, 
and shall be executed by the Program Executive Officer for Aviation for 
the Navy working for the Director of the Defense Threat Reduction 
Agency.

SEC. 212. ACTIVE PROTECTION SYSTEMS.

    (a) Comparative Tests Required.--
            (1) In general.--The Secretary of Defense shall undertake 
        comparative tests, including live-fire tests, of appropriate 
        foreign and domestic active protection systems in order--
                    (A) to determine the effectiveness of such systems; 
                and
                    (B) to develop information useful in the 
                consideration of the adoption of such systems in 
                defense acquisition programs.
            (2) Reports.--Not later than March 1 of each of 2008 and 
        2009, the Secretary shall submit to the congressional defense 
        committees a report on the results of the tests undertaken 
        under paragraph (1) as of the date of such report.
    (b) Comprehensive Assessment Required.--
            (1) In general.--The Secretary shall undertake a 
        comprehensive assessment of active protection systems in order 
        to develop information useful in the development of joint 
        active protection systems and other defense programs.
            (2) Elements.--The assessment under paragraph (1) shall 
        include--
                    (A) an identification of the potential merits and 
                operational costs of the use of active protection 
                systems by United States military forces;
                    (B) a characterization of the threats that use of 
                active protection systems by potential adversaries 
                would pose to United States military forces and 
                weapons;
                    (C) an identification and assessment of 
                countermeasures to active protection systems;
                    (D) an analysis of collateral damage potential of 
                active protection systems;
                    (E) an identification and assessment of emerging 
                direct-fire and top-attack threats to defense systems 
                that could potentially deploy active protection 
                systems; and
                    (F) an identification and assessment of critical 
                technology elements of active protection systems.
            (3) Report.--Not later than December 31, 2008, the 
        Secretary shall submit to the congressional defense committees 
        a report on the assessment under paragraph (1).

SEC. 213. OBLIGATION AND EXPENDITURE OF FUNDS FOR COMPETITIVE 
              PROCUREMENT OF PROPULSION SYSTEM FOR THE JOINT STRIKE 
              FIGHTER.

    Within amount authorized to be appropriated for fiscal years after 
fiscal year 2007 for procurement, and for research, development, test, 
and evaluation, for the Joint Strike Fighter Program, the Secretary of 
Defense shall ensure the obligation and expenditure of sufficient 
amounts each such fiscal year for the continued development and 
procurement of two options for the propulsion system for the Joint 
Strike Fighter in order to assure the competitive development and 
eventual production for the propulsion system for a Joint Strike 
Fighter aircraft, thereby giving a choice of engine to the growing 
number of nations expressing interest in procuring such aircraft.

                  Subtitle C--Missile Defense Programs

SEC. 231. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT, 
              CONSTRUCTION, AND DEPLOYMENT OF MISSILE DEFENSES IN 
              EUROPE.

    (a) General Limitation.--No funds authorized to be appropriated by 
this Act may be obligated or expended for procurement, site activation, 
construction, preparation of equipment for, or deployment of a long-
range missile defense system in Europe until the following conditions 
have been met:
            (1) The governments of the countries in which major 
        components of such missile defense system (including 
        interceptors and associated radars) are proposed to be deployed 
        have each given final approval to any missile defense 
        agreements negotiated between such governments and the United 
        States Government concerning the proposed deployment of such 
        components in their countries.
            (2) 45 days have elapsed following the receipt by Congress 
        of the report required under subsection (c)(6).
    (b) Additional Limitation.--In addition to the limitation in 
subsection (a), no funds authorized to be appropriated by this Act may 
be obligated or expended for the acquisition or deployment of 
operational missiles of a long-range missile defense system in Europe 
until the Secretary of Defense, after receiving the views of the 
Director of Operational Test and Evaluation, submits to Congress a 
report certifying that the proposed interceptor to be deployed as part 
of such missile defense system has demonstrated, through successful, 
operationally realistic flight testing, a high probability of working 
in an operationally effective manner.
    (c) Report on Independent Assessment for Ballistic Missile Defense 
in Europe.--
            (1) Independent assessment.--Not later than 30 days after 
        the date of the enactment of this Act, the Secretary of Defense 
        shall select a federally funded research and development center 
        to conduct an independent assessment of options for ballistic 
        missile defense for forward deployed forces of the United 
        States and its allies in Europe.
            (2) Issues to be assessed.--In carrying out the assessment 
        described in paragraph (1), the federally funded research and 
        development center selected under that paragraph shall consider 
        the following in connection with options for missile defense in 
        Europe:
                    (A) The threat to Europe of ballistic missiles 
                (including short-range, medium-range, intermediate-
                range, and long-range ballistic missiles) from Iran and 
                from other nations (except Russia), including the 
                likelihood and timing of such threats.
                    (B) The missile defense capabilities appropriate to 
                meet current, near-term, and mid-term ballistic missile 
                threats facing Europe during the period from 2008 
                through 2015.
                    (C) Alternative options for defending the European 
                territory of members of the North Atlantic Treaty 
                Organization against the threats described in 
                subparagraph (B).
                    (D) The utility and cost-effectiveness of providing 
                ballistic missile defense of the United States with a 
                system located in Europe, if warranted by the threat, 
                when compared with the provision of such defense 
                through the deployment of additional ballistic missile 
                defense in the United States.
                    (E) The views of European members of the North 
                Atlantic Treaty Organization on the desirability of 
                ballistic missile defenses for the European territory 
                of such nations.
                    (F) Potential opportunities for participation by 
                the Government of Russia in a European missile defense 
                system.
            (3) Technologies to be considered.--In conducting the 
        assessment described in paragraph (1), the federally funded 
        research and development center selected under that paragraph 
        shall consider, but not be limited to, the following missile 
        defense technology options:
                    (A) The Patriot PAC-3 system.
                    (B) The Medium Extended Air Defense System.
                    (C) The Aegis Ballistic Missile Defense system, 
                with all variants of the Standard Missile-3 
                interceptor.
                    (D) The Terminal High Altitude Area Defense (THAAD) 
                system.
                    (E) The proposed deployment of Ground-based 
                Midcourse Defense (GMD) system elements in Europe, 
                consisting of the proposed 2-stage Orbital Boost 
                Vehicle interceptor, and the proposed European 
                Midcourse X-band radar.
                    (F) Forward-Based X-band Transportable (FBX-T) 
                radars.
                    (G) Other non-United States, North Atlantic Treaty 
                Organization missile defense systems.
            (4) Factors to be considered.--In conducting the assessment 
        described in paragraph (1), the federally funded research and 
        development center selected under that paragraph shall consider 
        the following factors with respect to potential ballistic 
        missile defense options:
                    (A) The missile defense needs of the European 
                members of the North Atlantic Treaty Organization, 
                including forward deployed United States forces, with 
                respect to current, near-term, and mid-term ballistic 
                missile threats.
                    (B) Operational effectiveness.
                    (C) Command and control arrangements.
                    (D) Integration and interoperability with North 
                Atlantic Treaty Organization missile defenses.
                    (E) Cost and affordability, including possible 
                allied cost-sharing.
                    (F) Cost-effectiveness.
                    (G) The degree of coverage of the European 
                territory of members of the North Atlantic Treaty 
                Organization.
            (5) Cooperation of other agencies.--The Secretary of 
        Defense, the Director of National Intelligence, and the heads 
        of other departments and agencies of the United States 
        Government shall provide the federally funded research and 
        development center selected under paragraph (1) such data, 
        analyses, briefings, and other information as the center 
        considers necessary to carry out the assessment described in 
        that paragraph.
            (6) Report required.--Not later than 180 days after the 
        date of the enactment of this Act, the federally funded 
        research and development center selected under paragraph (1) 
        shall submit to the Secretary of Defense and the congressional 
        defense committees a report on the results of the assessment 
        described in that paragraph, including any findings and 
        recommendations of the center as a result of the assessment.
            (7) Form.--The report under paragraph (6) shall be 
        submitted in unclassified form, but may include a classified 
        annex.
    (d) Construction.--Nothing in this section shall be construed to 
limit continuing obligation and expenditure of funds for missile 
defense, including for research and development and for other 
activities not otherwise limited by subsection (a) or (b).

SEC. 232. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT OF MISSILE 
              DEFENSE INTERCEPTORS IN ALASKA.

    None of the funds authorized to be appropriated by this Act may be 
obligated or expended to deploy more than 40 Ground-Based Interceptors 
at Fort Greely, Alaska, until the Secretary of Defense, after receiving 
the views of the Director of Operational Test and Evaluation, submits 
to Congress a certification that the Block 2006 Ground-based Midcourse 
Defense element of the Ballistic Missile Defense System has 
demonstrated, through operationally realistic end-to-end flight 
testing, that it has a high probability of working in an operationally 
effective manner.

SEC. 233. BUDGET AND ACQUISITION REQUIREMENTS FOR MISSILE DEFENSE 
              AGENCY ACTIVITIES.

    (a) Revised Budget Structure.--The budget justification materials 
submitted to Congress in support of the Department of Defense budget 
for any fiscal year after fiscal year 2008 (as submitted with the 
budget of the President under section 1105(a) of title 31, United 
States Code) shall set forth separately amounts requested for the 
Missile Defense Agency for each of the following:
            (1) Research, development, test, and evaluation.
            (2) Procurement.
            (3) Operation and maintenance.
            (4) Military construction.
    (b) Objectives for Acquisition Activities.--
            (1) In general.--Commencing as soon as practicable, but not 
        later than the submittal to Congress of the budget for the 
        President for fiscal year 2009 under section 1105(a) of title 
        31, United States Code, the Missile Defense Agency shall take 
        appropriate actions to achieve the following objectives in its 
        acquisition activities:
                    (A) Improved transparency.
                    (B) Improved accountability.
                    (C) Enhanced oversight.
            (2) Required actions.--In order to achieve the objectives 
        specified in paragraph (1), the Missile Defense Agency shall, 
        at a minimum, take actions as follows:
                    (A) Establish acquisition cost, schedule, and 
                performance baselines for each Ballistic Missile 
                Defense System element that--
                            (i) has entered the equivalent of the 
                        System Development and Demonstration phase of 
                        acquisition; or
                            (ii) is being produced and acquired for 
                        operational fielding.
                    (B) Provide unit cost reporting data for each 
                Ballistic Missile Defense System element covered by 
                subparagraph (A), and secure independent estimation and 
                verification of such cost reporting data.
                    (C) Include each year in the budget justification 
                materials described in subsection (a) a description of 
                actions being taken in the fiscal year in which such 
                materials are submitted, and the actions to be taken in 
                the fiscal year covered by such materials, to achieve 
                such objectives.
            (3) Specification of ballistic missile defense system 
        elements.--The Ballistic Missile Defense System elements that, 
        as of May 2007, are Ballistic Missile Defense System elements 
        covered by paragraph (2)(A) are the following elements:
                    (A) Ground-based Midcourse Defense.
                    (B) Aegis Ballistic Missile Defense.
                    (C) Terminal High Altitude Area Defense.
                    (D) Forward-Based X-band radar-Transportable (AN/
                TPY-2).
                    (E) Command, Control, Battle Management, and 
                Communications.
                    (F) Sea-Based X-band radar.
                    (G) Upgraded Early Warning radars.

SEC. 234. PARTICIPATION OF DIRECTOR, OPERATIONAL TEST AND EVALUATION, 
              IN MISSILE DEFENSE TEST AND EVALUATION ACTIVITIES.

    Section 139 of title 10, United States Code, is amended--
            (1) by redesignating subsections (f) through (j) as 
        subsections (g) through (k), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f)(1) The Director of the Missile Defense Agency shall report 
promptly to the Director of Operational Test and Evaluation the results 
of all tests and evaluations conducted by the Missile Defense Agency 
and of all studies conducted by the Missile Defense Agency in 
connection with tests and evaluations in the Missile Defense Agency.
    ``(2) The Director of Operational Test and Evaluation may require 
that such observers as the Director designates be present during the 
preparation for and the conduct of any test and evaluation conducted by 
the Missile Defense Agency.
    ``(3) The Director of Operational Test and Evaluation shall have 
access to all records and data in the Department of Defense (including 
the records and data of the Missile Defense Agency) that the Director 
considers necessary to review in order to carry out his duties under 
this subsection.''.

SEC. 235. EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC 
              MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act for Fiscal 
Year 2002 (10 U.S.C. 2431 note) is amended--
            (1) in paragraph (1), by striking ``through 2008'' and 
        inserting ``through 2013''; and
            (2) in paragraph (2), by striking ``through 2009'' and 
        inserting ``through 2014''.

                       Subtitle D--Other Matters

SEC. 251. MODIFICATION OF NOTICE AND WAIT REQUIREMENT FOR OBLIGATION OF 
              FUNDS FOR FOREIGN COMPARATIVE TEST PROGRAM.

    Paragraph (3) of section 2350a(g) of title 10, United States Code, 
is amended to read as follows:
    ``(3) The Director of Defense Research and Engineering shall notify 
the congressional defense committees of the intent to obligate funds 
made available to carry out this subsection not less than 7 days before 
such funds are obligated.''.

SEC. 252. MODIFICATION OF COST SHARING REQUIREMENT FOR TECHNOLOGY 
              TRANSITION INITIATIVE.

    Paragraph (2) of section 2359a(f) of title 10, United States Code, 
is amended to read as follows:
    ``(2) The amount of funds provided to a project under paragraph (1) 
by the military department or Defense Agency concerned shall be the 
appropriate share of the military department or Defense Agency, as the 
case may be, of the cost of the project, as determined by the 
Manager.''.

SEC. 253. STRATEGIC PLAN FOR THE MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General.--Section 2521 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Strategic Plan.--(1) The Secretary shall develop a plan for 
the program which includes the following:
            ``(A) The overall manufacturing technology goals, 
        milestones, priorities, and investment strategy for the program 
        during the 5-fiscal year period beginning with the first fiscal 
        year commencing after the development of the plan.
            ``(B) For each of the fiscal years under the period of the 
        plan, the objectives of, and funding for, the program for each 
        military department and each Defense Agency that shall 
        participate in the program during the period of the plan.
    ``(2) The Secretary shall include in the plan mechanisms for 
assessing the effectiveness of the program under the plan.
    ``(3) The Secretary shall update the plan on a biennial basis.
    ``(4) The Secretary shall include the plan, and any update of the 
plan under paragraph (3), in the budget justification documents 
submitted in support of the budget of the Department of Defense for the 
applicable fiscal year (as included in the budget of the President 
submitted to Congress under section 1105 of title 31).''.
    (b) Initial Development of Plan.--The Secretary of Defense shall 
develop the strategic plan required by subsection (e) of section 2521 
of title 10, United States Code (as added by subsection (a) of this 
section), so that the plan goes into effect at the beginning of fiscal 
year 2009.

SEC. 254. MODIFICATION OF AUTHORITIES ON COORDINATION OF DEFENSE 
              EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH 
              WITH SIMILAR FEDERAL PROGRAMS.

    Section 257(e)(2) of the National Defense Authorization Act for 
Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by striking ``shall'' 
each place it appears and inserting ``may''.

SEC. 255. ENHANCEMENT OF DEFENSE NANOTECHNOLOGY RESEARCH AND 
              DEVELOPMENT PROGRAM.

    (a) Program Purposes.--Subsection (b) of section 246 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314; 116 Stat. 2500; 10 U.S.C. 2358 note) is amended--
            (1) in paragraph (2), by striking ``in nanoscale research 
        and development'' and inserting ``in the National 
        Nanotechnology Initiative and with the National Nanotechnology 
        Coordination Office under section 3 of the 21st Century 
        Nanotechnology Research and Development Act (15 U.S.C. 7502)''; 
        and
            (2) in paragraph (3), by striking ``portfolio of 
        fundamental and applied nanoscience and engineering research 
        initiatives'' and inserting ``portfolio of nanotechnology 
        research and development initiatives''.
    (b) Program Administration.--
            (1) Administration through under secretary of defense for 
        acquisition, technology, and logistics.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``the Director of Defense Research 
                and Engineering'' and inserting ``the Under Secretary 
                of Defense for Acquisition, Technology, and 
                Logistics''; and
                    (B) by striking ``The Director'' and inserting 
                ``The Under Secretary''.
            (2) Other administrative matters.--Such subsection is 
        further amended--
                    (A) in paragraph (2), by striking ``the 
                Department's increased investment in nanotechnology and 
                the National Nanotechnology Initiative; and'' and 
                inserting ``investments by the Department and other 
                departments and agencies participating in the National 
                Nanotechnology Initiative in nanotechnology research 
                and development;'';
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) oversee interagency coordination of the program with 
        other departments and agencies participating in the National 
        Nanotechnology Initiative, including providing appropriate 
        funds to support the National Nanotechnology Coordination 
        Office.''.
    (c) Program Activities.--Such section is further amended--
            (1) by striking subsection (d); and
            (2) by adding at the end the following new subsection (d):
    ``(d) Activities.--Activities under the program shall include the 
following:
            ``(1) The development of a strategic plan for defense 
        nanotechnology research and development that is integrated with 
        the strategic plan for the National Nanotechnology Initiative.
            ``(2) The issuance on an annual basis of policy guidance to 
        the military departments and the Defense Agencies that--
                    ``(A) establishes research priorities under the 
                program;
                    ``(B) provides for the determination and 
                documentation of the benefits to the Department of 
                Defense of research under the program; and
                    ``(C) sets forth a clear strategy for transitioning 
                the research into products needed by the Department.
            ``(3) Advocating for the transition of nanotechnologies in 
        defense acquisition programs, including the development of 
        nanomanufacturing capabilities and a nanotechnology defense 
        industrial base.''.
    (d) Reports.--Such section is further amended by adding at the end 
the following new subsection:
    ``(e) Reports.--(1) Not later than March 1 of each of 2009, 2011, 
and 2013, the Under Secretary of Defense for Acquisition, Technology, 
and Logistics shall submit to the congressional defense committees a 
report on the program.
    ``(2) Each report under paragraph (1) shall include the following:
            ``(A) A review of--
                    ``(i) the long-term challenges and specific 
                technical goals of the program; and
                    ``(ii) the progress made toward meeting such 
                challenges and achieving such goals.
            ``(B) An assessment of current and proposed funding levels 
        for the program, including an assessment of the adequacy of 
        such funding levels to support program activities.
            ``(C) A review of the coordination of activities under the 
        program within the Department of Defense, with other 
        departments and agencies of the United States, and with the 
        National Nanotechnology Initiative.
            ``(D) A review and analysis of the findings and 
        recommendations relating to the Department of Defense of the 
        most recent triennial external review of the National 
        Nanotechnology Program under section 5 of the 21st Century 
        Nanotechnology Research and Development Act (15 U.S.C. 1704), 
        and a description of initiatives of the Department to implement 
        such recommendations.
            ``(E) An assessment of technology transition from 
        nanotechnology research and development to enhanced warfighting 
        capabilities, including contributions from the Department of 
        Defense Small Business Innovative Research and Small Business 
        Technology Transfer Research programs, and the Department of 
        Defense Manufacturing Technology program, and an identification 
        of acquisition programs and deployed defense systems that are 
        incorporating nanotechnologies.
            ``(F) An assessment of global nanotechnology research and 
        development in areas of interest to the Department, including 
        an identification of the use of nanotechnologies in any foreign 
        defense systems.
            ``(G) An assessment of the defense nanotechnology 
        manufacturing and industrial base and its capability to meet 
        the near and far term requirements of the Department.
            ``(H) Such recommendations for additional activities under 
        the program to meet emerging national security requirements as 
        the Under Secretary considers appropriate.
    ``(3) Each report under paragraph (1) shall be submitted in 
unclassified form, but may include a classified annex.''.
    (e) Comptroller General Report on Program.--Not later than March 
31, 2010, the Comptroller General of the United States shall submit to 
the congressional defense committees a report setting forth the 
assessment of the Comptroller General of the progress made by the 
Department of Defense in achieving the purposes of the defense 
nanotechnology research and development program required by section 246 
of the Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (as amended by this section).

                  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 2008 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense, for expenses, not otherwise provided for, 
for operation and maintenance, in amounts as follows:
            (1) For the Army, $29,725,273,000.
            (2) For the Navy, $33,307,690,000.
            (3) For the Marine Corps, $4,998,493,000.
            (4) For the Air Force, $32,967,215,000.
            (5) For Defense-wide activities, $22,397,153,000.
            (6) For the Army Reserve, $2,512,062,000.
            (7) For the Navy Reserve, $1,186,883,000.
            (8) For the Marine Corps Reserve, $208,637,000.
            (9) For the Air Force Reserve, $2,821,817,000.
            (10) For the Army National Guard, $5,861,409,000.
            (11) For the Air National Guard, $5,469,368,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,971,000.
            (13) For Environmental Restoration, Army, $434,879,000.
            (14) For Environmental Restoration, Navy, $300,591,000.
            (15) For Environmental Restoration, Air Force, 
        $458,428,000.
            (16) For Environmental Restoration, Defense-wide, 
        $12,751,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $270,249,000.
            (18) For Former Soviet Union Threat Reduction programs, 
        $448,048,000.
            (19) For Overseas Humanitarian, Disaster and Civic Aid 
        programs, $63,300,000.
            (20) For Overseas Contingency Operations Transfer Fund, 
        $5,000,000.

                  Subtitle B--Environmental Provisions

SEC. 311. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse.--
            (1) Transfer amount.--Using funds described in subsection 
        (b), the Secretary of Defense may, notwithstanding section 2215 
        of title 10, United States Code, transfer not more than 
        $91,588.51 to the Moses Lake Wellfield Superfund Site 10-6J 
        Special Account.
            (2) Purpose of reimbursement.--The payment under paragraph 
        (1) is to reimburse the Environmental Protection Agency for its 
        costs incurred in overseeing a remedial investigation/
        feasibility study performed by the Department of the Army under 
        the Defense Environmental Restoration Program at the former 
        Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, 
        Washington.
            (3) Interagency agreement.--The reimbursement described in 
        paragraph (2) is provided for in the interagency agreement 
        entered into by the Department of the Army and the 
        Environmental Protection Agency for the Moses Lake Wellfield 
        Superfund Site in March 1999.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(16) for 
operation and maintenance for Environmental Restoration, Defense-wide.
    (c) Use of Funds.--The Environmental Protection Agency shall use 
the amount transferred under subsection (a) to pay costs incurred by 
the Agency at the Moses Lake Wellfield Superfund Site.

SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH THE ARCTIC SURPLUS SUPERFUND 
              SITE, FAIRBANKS, ALASKA.

    (a) Authority To Reimburse.--
            (1) Transfer amount.--Using funds described in subsection 
        (b), the Secretary of Defense may, notwithstanding section 2215 
        of title 10, United States Code, transfer not more than 
        $186,625.38 to the Hazardous Substance Superfund.
            (2) Purpose of reimbursement.--The payment under paragraph 
        (1) is to reimburse the Environmental Protection Agency for 
        costs incurred pursuant to the agreement known as ``In the 
        Matter of Arctic Surplus Superfund Site, U.S. EPA Docket Number 
        CERCLA-10-2003-0114: Administrative Order on Consent for 
        Remedial Design and Remedial Action,'' entered into by the 
        Department of Defense and the Environmental Protection Agency 
        on December 11, 2003.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(16) for 
operation and maintenance for Environmental Restoration, Defense-wide.
    (c) Use of Funds.--The Environmental Protection Agency shall use 
the amount transferred under subsection (a) to pay costs incurred by 
the Agency pursuant to the agreement described in paragraph (2) of such 
subsection.

SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION AGENCY OF STIPULATED 
              PENALTIES IN CONNECTION WITH JACKSON PARK HOUSING 
              COMPLEX, WASHINGTON.

    (a) Authority To Transfer Funds.--
            (1) Transfer amount.--Using funds described in subsection 
        (b), the Secretary of the Navy may, notwithstanding section 
        2215 of title 10, United States Code, transfer not more than 
        $40,000.00 to the Hazardous Substance Superfund.
            (2) Purpose of transfer.--The payment under paragraph (1) 
        is to pay a stipulated penalty assessed by the Environmental 
        Protection Agency on October 25, 2005, against the Jackson Park 
        Housing Complex, Washington, for the failure by the Navy to 
        timely submit a draft final Phase II Remedial Investigation 
        Work Plan for the Jackson Park Housing Complex Operable Unit 
        (OU-3T-JPHC) pursuant to a schedule included in an Interagency 
        Agreement (Administrative Docket No. CERCLA-10-2005-0023).
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(14) for 
operation and maintenance for Environmental Restoration, Navy.
    (c) Use of Funds.--The amount transferred under subsection (a) 
shall be used by the Environmental Protection Agency to pay the penalty 
described under paragraph (2) of such subsection.

    Subtitle C--Program Requirements, Restrictions, and Limitations

SEC. 321. AVAILABILITY OF FUNDS IN DEFENSE INFORMATION SYSTEMS AGENCY 
              WORKING CAPITAL FUND FOR TECHNOLOGY UPGRADES TO DEFENSE 
              INFORMATION SYSTEMS NETWORK.

    (a) In General.--Funds in the Defense Information Systems Agency 
Working Capital Fund may be used for expenses directly related to 
technology upgrades to the Defense Information Systems Network.
    (b) Limitation on Certain Projects.--Funds may not be used under 
subsection (a) for--
            (1) any significant technology insertion to the Defense 
        Information Systems Network; or
            (2) any component with an estimated total cost in excess of 
        $500,000.
    (c) Limitation in Fiscal Year Pending Timely Report.--If in any 
fiscal year the report required by paragraph (1) of subsection (d) is 
not submitted by the date specified in paragraph (2) of subsection (d), 
funds may not be used under subsection (a) in such fiscal year during 
the period--
            (1) beginning on the date specified in paragraph (2) of 
        subsection (d); and
            (2) ending on the date of the submittal of the report under 
        paragraph (1) of subsection (d).
    (d) Annual Report.--
            (1) In general.--The Director of the Defense Information 
        Systems Agency shall submit to the congressional defense 
        committees each fiscal year a report on the use of the 
        authority in subsection (a) during the preceding fiscal year.
            (2) Deadline for submittal.--The report required by 
        paragraph (1) in a fiscal year shall be submitted not later 
        than 60 days after the date of the submittal to Congress of the 
        budget of the President for the succeeding fiscal year pursuant 
        to section 1105 of title 31, United States Code.
    (e) Sunset.--The authority in subsection (a) shall expire on 
October 1, 2011.

SEC. 322. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACT PERFORMANCE OF 
              SECURITY GUARD FUNCTIONS.

    (a) Extension.--Subsection (c) of section 332 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public Law 
107-314) is amended by striking ``September 30, 2009'' both places it 
appears and inserting ``September 30, 2012''.
    (b) Limitation for Fiscal Years 2010 Through 2012.--Subsection (d) 
of such section is amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following new paragraphs:
            ``(4) for fiscal year 2010, the number equal to 70 percent 
        of the total number of such personnel employed under such 
        contracts on October 1, 2006;
            ``(5) for fiscal year 2011, the number equal to 60 percent 
        of the total number of such personnel employed under such 
        contracts on October 1, 2006; and
            ``(6) for fiscal year 2012, the number equal to 50 percent 
        of the total number of such personnel employed under such 
        contracts on October 1, 2006.''.

SEC. 323. REPORT ON INCREMENTAL COST OF EARLY 2007 ENHANCED DEPLOYMENT.

    Section 323(b)(2) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 10 U.S.C. 229 note) is 
amended--
            (1) in subparagraph (A), by striking ``; and'' and 
        inserting a semicolon;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) each of the military departments for the 
                additional incremental cost resulting from the 
                additional deployment of forces to Iraq and Afghanistan 
                above the levels deployed to such countries on January 
                1, 2007.''.

SEC. 324. INDIVIDUAL BODY ARMOR.

    (a) Assessment.--The Director of Operational Test and Evaluation 
and the Director of Defense Research and Engineering shall jointly 
conduct an assessment of various domestic technological approaches for 
body armor systems for protection against ballistic threats at or above 
military requirements.
    (b) Report.--
            (1) Report required.--Not later than 90 days after the date 
        of the enactment of this Act, the Director of Operational Test 
        and Evaluation and the Director of Defense Research and 
        Engineering shall jointly submit to the Secretary of Defense, 
        and to the congressional defense committees, a report on the 
        assessment required by subsection (a).
            (2) Elements.--The report required under paragraph (1) 
        shall include--
                    (A) a detailed comparative analysis and assessment 
                of the technical approaches covered by the assessment 
                under subsection (a), including the technical 
                capability, feasibility, military utility, and cost of 
                each such approach; and
                    (B) such other matters as the Director of 
                Operational Test and Evaluation and the Director of 
                Defense Research and Engineering jointly consider 
                appropriate.
            (3) Form.--The report submitted under paragraph (1) to the 
        congressional defense committees shall be submitted in both 
        classified and unclassified form.

                 Subtitle D--Workplace and Depot Issues

SEC. 341. EXTENSION OF AUTHORITY FOR ARMY INDUSTRIAL FACILITIES TO 
              ENGAGE IN COOPERATIVE ACTIVITIES WITH NON-ARMY ENTITIES.

    (a) Extension of Authority.--Section 4544 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by adding at the end the following: 
        ``This authority may be used to enter into not more than eight 
        contracts or cooperative agreements.''; and
            (2) in subsection (k), by striking ``2009'' and inserting 
        ``2014''.
    (b) Reports.--
            (1) Annual report on use of authority.--The Secretary of 
        the Army shall submit to Congress at the same time the budget 
        of the President is submitted to Congress for fiscal years 2009 
        through 2016 under section 1105 of title 31, United States 
        Code, a report on the use of the authority provided under 
        section 4544 of title 10, United States Code.
            (2) Analysis of use of authority.--Not later than September 
        30, 2012, the Secretary of the Army shall submit to the 
        congressional defense committees a report assessing the 
        advisability of making such authority permanent and eliminating 
        the limitation on the number of contracts or cooperative 
        arrangements that may be entered into pursuant to such 
        authority.

SEC. 342. TWO-YEAR EXTENSION OF ARSENAL SUPPORT DEMONSTRATION PROGRAM.

    (a) Extension.--Subsection (a) of section 343 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 10 U.S.C. 4551 note) is amended 
by striking ``fiscal years 2001 through 2008'' and inserting ``fiscal 
years 2001 through 2010''.
    (b) Extension of Reporting Requirement.--The second sentence in 
subsection (g)(1) of such section is amended to read as follows: ``No 
report is required after fiscal year 2010.''.

                       Subtitle E--Other Matters

SEC. 351. ENHANCEMENT OF CORROSION CONTROL AND PREVENTION FUNCTIONS 
              WITHIN DEPARTMENT OF DEFENSE.

    (a) Office of Corrosion Policy and Oversight.--
            (1) In general.--Section 2228 of title 10, United States 
        Code, is amended--
                    (A) in the section heading, by striking ``Military 
                equipment and infrastructure: prevention and mitigation 
                of corrosion'' and inserting ``Office of Corrosion 
                Policy and Oversight''; and
                    (B) by amending subsection (a) to read as follows:
    ``(a) Office and Director.--(1) There is an Office of Corrosion 
Policy and Oversight within the Office of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics.
    ``(2) The Office shall be headed by a Director of Corrosion Policy 
and Oversight (in this section referred to as the `Director'), who 
shall be assigned to such position by the Under Secretary from among 
civilian employees of the Department of Defense with the qualifications 
described in paragraph (3). The Director is the senior official 
responsible in the Department of Defense to the Secretary of Defense 
(after the Under Secretary of Defense for Acquisition, Technology, and 
Logistics) for the prevention and mitigation of corrosion of the 
military equipment and infrastructure of the Department of Defense. The 
Director shall report directly to the Under Secretary.
    ``(3) In order to qualify to be assigned to the position of 
Director, an individual shall--
            ``(A) have a minimum of 10 years experience in the Defense 
        Acquisition Corps;
            ``(B) have technical expertise in, and professional 
        experience with, corrosion engineering, including an 
        understanding of the effects of corrosion policies on 
        infrastructure; research, development, test, and evaluation; 
        and maintenance; and
            ``(C) have background in and an understanding of Department 
        of Defense budget formulation and execution, policy 
        formulation, and planning and program requirements.''.
            (2) Conforming changes.--Subsection (b) of such section is 
        amended--
                    (A) in paragraph (1), by striking ``official or 
                organization designated under subsection (a)'' and 
                inserting ``Director''; and
                    (B) by striking ``designated official or 
                organization'' each place it appears and inserting 
                ``Director''.
    (b) Additional Authority for Director of Office.--Such section is 
further amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Additional Authorities for Director.--The Director is 
authorized to--
            ``(1) develop, update, and coordinate corrosion training 
        with the Defense Acquisition University;
            ``(2) participate in the process within the Department of 
        Defense for the development of relevant directives and 
        instructions; and
            ``(3) interact directly with the corrosion prevention 
        industry, trade associations, other government corrosion 
        prevention agencies, academic research institutions, and 
        scientific organizations engaged in corrosion prevention, 
        including the National Academy of Sciences.''.
    (c) Inclusion of Cooperative Research Agreements as Part of 
Corrosion Reduction Strategy.--Subparagraph (D) of subsection (d)(2) of 
such section, as redesignated by subsection (b), is amended by 
inserting after ``operational strategies'' the following: ``, including 
through the establishment of memoranda of agreement, joint funding 
agreements, public-private partnerships, university research centers, 
and other cooperative research agreements''.
    (d) Report Requirement.--Such section is further amended by 
inserting after subsection (d), as redesignated by subsection (b), the 
following new subsection:
    ``(e) Report.--(1) The Secretary of Defense shall submit with the 
defense budget materials for each fiscal year beginning with fiscal 
year 2009 a report on the following:
            ``(A) Funding requirements for the long-term strategy 
        developed under subsection (d).
            ``(B) The return on investment that would be achieved by 
        implementing the strategy.
            ``(C) The funds requested in the budget compared to the 
        funding requirements.
            ``(D) An explanation of why the Department of Defense is 
        not requesting funds for the entire requirement.
    ``(2) Not later than 60 days after submission of the budget for a 
fiscal year, the Comptroller General shall provide to the congressional 
defense committees--
            ``(A) an analysis of the budget submission for corrosion 
        control and prevention by the Department of Defense; and
            ``(B) an analysis of the report required under paragraph 
        (1).''.
    (e) Definitions.--Subsection (f), as redesignated by subsection 
(b), is amended by adding at the end the following new paragraphs:
            ``(4) The term `budget', with respect to a fiscal year, 
        means the budget for that fiscal year that is submitted to 
        Congress by the President under section 1105(a) of title 31.
            ``(5) The term `defense budget materials', with respect to 
        a fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for that fiscal 
        year.''.

SEC. 352. REIMBURSEMENT FOR NATIONAL GUARD SUPPORT PROVIDED TO FEDERAL 
              AGENCIES.

    Section 377 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``To the extent'' and 
        inserting ``Subject to subsection (c), to the extent'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b)(1) Subject to subsection (c), the Secretary of Defense shall 
require a Federal agency to which law enforcement support or support to 
a national special security event is provided by National Guard 
personnel performing duty under section 502(f) of title 32 to reimburse 
the Department of Defense for the costs of that support, 
notwithstanding any other provision of law. No other provision of this 
chapter shall apply to such support.
    ``(2) Any funds received by the Department of Defense under this 
subsection as reimbursement for support provided by personnel of the 
National Guard shall be credited, at the election of the Secretary of 
Defense, to the following:
            ``(A) The appropriation, fund, or account used to fund the 
        support.
            ``(B) The appropriation, fund, or account currently 
        available for reimbursement purposes.''; and
            (4) in subsection (c), as redesignated by paragraph (2)--
                    (A) by inserting ``or section 502(f) of title 32'' 
                after ``under this chapter''; and
                    (B) in paragraph (2), by inserting ``or personnel 
                of the National Guard'' after ``Department of 
                Defense''.

SEC. 353. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

    Section 44310 of title 49, United States Code, is amended by 
striking ``March 30, 2008'' and inserting ``December 31, 2013''.

SEC. 354. PROPERTY ACCOUNTABILITY AND DISPOSITION OF UNLAWFULLY 
              OBTAINED PROPERTY OF THE ARMED FORCES.

    (a) Statutory Establishment of Accountability for Property of Navy 
and Marine Corps.--
            (1) In general.--Chapter 661 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 7864. Property accountability; regulations
    ``The Secretary of the Navy may prescribe regulations for the 
accounting for property of the Navy and the Marine Corps and for the 
fixing of responsibility for such property.''.
            (2) Unauthorized disposition and recovery of property.--
        Such chapter is further amended by adding at the end the 
        following new section:
``Sec. 7865. Military equipment: unauthorized disposition
    ``(a) Prohibition.--No member of the Navy or the Marine Corps may 
sell, lend, pledge, barter, or give any clothing, arms, or equipment 
obtained by or furnished to the member by the United States to any 
person other than a member of the Navy or the Marine Corps authorized 
to receive it, an officer of the United States authorized to receive 
it, or any other individual authorized to receive it.
    ``(b) Seizure of Property.--If a member of the Navy or the Marine 
Corps disposes of property in violation of subsection (a) and it is in 
the possession of a person who is not authorized to receive it as 
described in that subsection, that person has no right to or interest 
in the property, and any civil or military officer of the United States 
may seize it, wherever found, subject to applicable regulations. 
Possession of such property by a person who is not authorized to 
receive it as described in subsection (a) is prima facie evidence that 
it has been disposed of in violation of subsection (a).
    ``(c) Retention of Seized Property.--If an officer who seizes 
property under subsection (b) is not authorized to retain it for the 
United States, the officer shall deliver it to a person who is 
authorized to retain it.''.
    (b) Standardizing Amendments Relating to Disposition of Unlawfully 
Obtained Army and Air Force Property.--
            (1) Army property.--Section 4836 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 4836. Military equipment: unauthorized disposition
    ``(a) Prohibition.--No member of the Army may sell, lend, pledge, 
barter, or give any clothing, arms, or equipment obtained by or 
furnished to the member by the United States to any person other than a 
member of the Army authorized to receive it, an officer of the United 
States authorized to receive it, or any other individual authorized to 
receive it.
    ``(b) Seizure of Property.--If a member of the Army disposes of 
property in violation of subsection (a) and it is in the possession of 
a person who is not authorized to receive it as described in that 
subsection, that person has no right to or interest in the property, 
and any civil or military officer of the United States may seize it, 
wherever found, subject to applicable regulations. Possession of such 
property by a person who is not authorized to receive it as described 
in subsection (a) is prima facie evidence that it has been disposed of 
in violation of subsection (a).
    ``(c) Retention of Seized Property.--If an officer who seizes 
property under subsection (b) is not authorized to retain it for the 
United States, the officer shall deliver it to a person who is 
authorized to retain it.''.
            (2) Air force property.--Section 9836 of such title is 
        amended is amended to read as follows:
``Sec. 9836. Military equipment: unauthorized disposition
    ``(a) Prohibition.--No member of the Air Force may sell, lend, 
pledge, barter, or give any clothing, arms, or equipment obtained by or 
furnished to the member by the United States to any person other than a 
member of the Air Force authorized to receive it, an officer of the 
United States authorized to receive it, or any other individual 
authorized to receive it.
    ``(b) Seizure of Property.--If a member of the Air Force disposes 
of property in violation of subsection (a) and it is in the possession 
of a person who is not authorized to receive it as described in that 
subsection, that person has no right to or interest in the property, 
and any civil or military officer of the United States may seize it, 
wherever found, subject to applicable regulations. Possession of such 
property by a person who is not authorized to receive it as described 
in subsection (a) is prima facie evidence that it has been disposed of 
in violation of subsection (a).
    ``(c) Retention of Seized Property.--If an officer who seizes 
property under subsection (b) is not authorized to retain it for the 
United States, the officer shall deliver it to a person who is 
authorized to retain it.''.
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 453 
        of such title is amended by striking the item relating to 
        section 4836 and inserting the following new item:

``4836. Military equipment: unauthorized disposition.''.
            (2) The table of sections at the beginning of chapter 661 
        of such title is amended by adding at the end the following new 
        items:

``7864. Property accountability: regulations.
``7865. Military equipment: unauthorized disposition.''.
            (3) The table of sections at the beginning of chapter 953 
        of such title is amended by striking the item relating to 
        section 9836 and inserting the following new item:

``9836. Military equipment: unauthorized disposition.''.

SEC. 355. AUTHORITY TO IMPOSE REASONABLE CONDITIONS ON THE PAYMENT OF 
              FULL REPLACEMENT VALUE FOR CLAIMS RELATED TO PERSONAL 
              PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE.

    Section 2636a(d) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``The regulations may 
require members of the armed forces or civilian employees of the 
Department of Defense to comply with reasonable conditions in order to 
receive benefits under this section.''.

SEC. 356. AUTHORITY FOR INDIVIDUALS TO RETAIN COMBAT UNIFORMS ISSUED IN 
              CONNECTION WITH CONTINGENCY OPERATIONS.

    The Secretary of a military department may authorize members of the 
Armed Forces under the jurisdiction of the Secretary to retain combat 
uniforms issued as organizational clothing and individual equipment in 
connection with their deployment in support of contingency operations.

SEC. 357. MODIFICATION OF REQUIREMENTS ON COMPTROLLER GENERAL REPORT ON 
              THE READINESS OF ARMY AND MARINE CORPS GROUND FORCES.

    (a) Submittal Date.--Subsection (a)(1) of section 345 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2156) is amended by striking ``June 1, 2007'' 
and inserting ``March 1, 2008''.
    (b) Elements.--Subsection (b) of such section is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraphs:
            ``(2) An assessment of the ability of the Army and Marine 
        Corps to provide trained and ready forces to meet the 
        requirements of increased force levels in support of Operations 
        Iraqi Freedom and Enduring Freedom and to meet the requirements 
        of other ongoing operations simultaneously with such increased 
        force levels.
            ``(3) An assessment of the strategic depth of the Army and 
        Marine Corps and their ability to provide trained and ready 
        forces to meet the requirements of the high-priority 
        contingency war plans of the regional combatant commands, 
        including an identification and evaluation for each such plan 
        of--
                    ``(A) the strategic and operational risks 
                associated with current and projected forces of current 
                and projected readiness;
                    ``(B) the time required to make forces available 
                and prepare them for deployment; and
                    ``(C) likely strategic tradeoffs necessary to meet 
                the requirements of each such plan.''.
    (c) Department of Defense Cooperation.--Such section is further 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Department of Defense Cooperation.--The Secretary of Defense 
shall ensure the full cooperation of the Department of Defense with the 
Comptroller General for purposes of the preparation of the report 
required by this section.''.

              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, 2008, as follows:
            (1) The Army, 525,400.
            (2) The Navy, 328,400.
            (3) The Marine Corps, 189,000.
            (4) The Air Force, 328,600.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2008, as follows:
            (1) The Army National Guard of the United States, 351,300.
            (2) The Army Reserve, 205,000.
            (3) The Navy Reserve, 67,800.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 106,700.
            (6) The Air Force Reserve, 67,500.
            (7) The Coast Guard Reserve, 10,000.
    (b) 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 
increased proportionately by the total authorized strengths of such 
units and by the total number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2008, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 29,204.
            (2) The Army Reserve, 15,870.
            (3) The Navy Reserve, 11,579.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 13,936.
            (6) The Air Force Reserve, 2,721.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2008 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 8,249.
            (2) For the Army National Guard of the United States, 
        26,502.
            (3) For the Air Force Reserve, 9,909.
            (4) For the Air National Guard of the United States, 
        22,553.

SEC. 414. FISCAL YEAR 2008 LIMITATION ON NUMBER OF NON-DUAL STATUS 
              TECHNICIANS.

    (a) Limitations.--
            (1) National guard.--Within the limitation provided in 
        section 10217(c)(2) of title 10, United States Code, the number 
        of non-dual status technicians employed by the National Guard 
        as of September 30, 2008, may not exceed the following:
                    (A) For the Army National Guard of the United 
                States, 1,600.
                    (B) For the Air National Guard of the United 
                States, 350.
            (2) Army reserve.--The number of non-dual status 
        technicians employed by the Army Reserve as of September 30, 
        2008, may not exceed 595.
            (3) Air force reserve.--The number of non-dual status 
        technicians employed by the Air Force Reserve as of September 
        30, 2008, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.

SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
              ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2008, the maximum number of members of the 
reserve components of the Armed Forces who may be serving at any time 
on full-time operational support duty under section 115(b) of title 10, 
United States Code, is the following:
            (1) The Army National Guard of the United States, 17,000.
            (2) The Army Reserve, 13,000.
            (3) The Navy Reserve, 6,200.
            (4) The Marine Corps Reserve, 3,000.
            (5) The Air National Guard of the United States, 16,000.
            (6) The Air Force Reserve, 14,000.

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for military personnel, in amounts as follows:
            (1) For the Army, $34,952,762,000.
            (2) For the Navy, $23,300,841,000.
            (3) For the Marine Corps, $11,065,542,000.
            (4) For the Air Force, $24,091,993,000.
            (5) For the Army Reserve, $3,701,197,000.
            (6) For the Navy Reserve, $1,766,408,000.
            (7) For the Marine Corps Reserve, $593,961,000.
            (8) For the Air Force Reserve, $1,356,618,000.
            (9) For the Army National Guard, $5,914,979,000.
            (10) For the Air National Guard, $2,607,456,000.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE 
              DUTY IN THE GRADE OF MAJOR TO MEET FORCE STRUCTURE 
              REQUIREMENTS.

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

``7,768
 8,689
 9,611
10,532
11,454
12,375
13,297
14,218
15,140
16,061
16,983
17,903
18,825
19,746
20,668
21,589
22,511
24,354
26,197
28,040
35,412''.

SEC. 502. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE 
              DUTY IN GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND 
              CAPTAIN TO MEET FORCE STRUCTURE REQUIREMENTS.

    (a) In General.--The table in section 523(a)(2) of title 10, United 
States Code, is amended to read as follows:


----------------------------------------------------------------------------------------------------------------
                                                        Number of officers who may be serving on active duty in
 ``Total number of commissioned officers (excluding                          the grade of:
 officers in categories specified in subsection (b)) -----------------------------------------------------------
                   on active duty:                        Lieutenant
                                                           Commander           Commander            Captain
----------------------------------------------------------------------------------------------------------------
Navy:
30,000                                                            7,698               5,269               2,222
33,000                                                            8,189               5,501               2,334
36,000                                                            8,680               5,733               2,447
39,000                                                            9,172               5,965               2,559
42,000                                                            9,663               6,197               2,671
45,000                                                           10,155               6,429               2,784
48,000                                                           10,646               6,660               2,896
51,000                                                           11,136               6,889               3,007
54,000                                                           11,628               7,121               3,120
57,000                                                           12,118               7,352               3,232
60,000                                                           12,609               7,583               3,344
63,000                                                           13,100               7,813               3,457
66,000                                                           13,591               8,044               3,568
70,000                                                           14,245               8,352               3,718
90,000                                                           17,517               9,890            4,467''.
----------------------------------------------------------------------------------------------------------------

    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 503. EXPANSION OF EXCLUSION OF MILITARY PERMANENT PROFESSORS FROM 
              STRENGTH LIMITATIONS FOR OFFICERS BELOW GENERAL AND FLAG 
              GRADES.

    (a) Inclusion of Permanent Professors of the Navy.--Section 
523(b)(8) of title 10, United States Code, is amended--
            (1) by striking ``Naval Academy'' and inserting ``Navy''; 
        and
            (2) by inserting ``or service'' before the period at the 
        end.
    (b) Expansion of Exclusion Generally.--Such section is further 
amended by striking ``50'' and inserting ``85''.

SEC. 504. MANDATORY RETIREMENT AGE FOR ACTIVE-DUTY GENERAL AND FLAG 
              OFFICERS CONTINUED ON ACTIVE DUTY.

    Section 637(b)(3) of title 10, United States Code, is amended by 
striking ``but such period may not (except as provided under section 
1251(b) of this title) extend beyond the date of the officer's sixty-
second birthday'' and inserting ``except as provided under section 1253 
of this title''.

SEC. 505. AUTHORITY FOR REDUCED MANDATORY SERVICE OBLIGATION FOR 
              INITIAL APPOINTMENTS OF OFFICERS IN CRITICALLY SHORT 
              HEALTH PROFESSIONAL SPECIALTIES.

    Section 651 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) The Secretary of Defense may waive the service required by 
subsection (a) for initial appointments of commissioned officers in 
such critically short health professional specialties as the Secretary 
shall specify for purposes of this subsection.
    ``(2) The minimum period of obligated service for an officer under 
a waiver under this subsection shall be the greater of--
            ``(A) two years; or
            ``(B) in the case of an officer who has accepted an 
        accession bonus or executed a contract or agreement for the 
        multiyear receipt of special pay for service in the armed 
        forces, the period of obligated service specified in such 
        contract or agreement.''.

SEC. 506. INCREASE IN AUTHORIZED NUMBER OF PERMANENT PROFESSORS AT THE 
              UNITED STATES MILITARY ACADEMY.

    Paragraph (4) of section 4331(b) of title 10, United States Code, 
is amended to read as follows:
            ``(4) Twenty-eight permanent professors.''.

SEC. 507. EXPANSION OF AUTHORITY FOR REENLISTMENT OF OFFICERS IN THEIR 
              FORMER ENLISTED GRADE.

    (a) Regular Army.--Section 3258 of title 10, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``a Reserve officer'' and inserting 
                ``an officer''; and
                    (B) by striking ``a temporary appointment'' and 
                inserting ``an appointment''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a Reserve 
                officer'' and inserting ``an officer''; and
                    (B) in paragraph (2), by striking ``the Reserve 
                commission'' and inserting ``the commission''.
    (b) Regular Air Force.--Section 8258 of such title is amended--
            (1) in subsection (a)--
                    (A) by striking ``a reserve officer'' and inserting 
                ``an officer''; and
                    (B) by striking ``a temporary appointment'' and 
                inserting ``an appointment''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a Reserve 
                officer'' and inserting ``an officer''; and
                    (B) in paragraph (2), by striking ``the Reserve 
                commission'' and inserting ``the commission''.

SEC. 508. ENHANCED AUTHORITY FOR RESERVE GENERAL AND FLAG OFFICERS TO 
              SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The limitations''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The limitations of this section also do not apply to a 
number, as specified by the Secretary of the military department 
concerned, of reserve component general or flag officers authorized to 
serve on active duty for a period of not more than 365 days. The number 
so specified for an armed force may not exceed the number equal to ten 
percent of the authorized number of general or flag officers, as the 
case may be, of that armed force under section 12004 of this title. In 
determining such number, any fraction shall be rounded down to the next 
whole number, except that such number shall be at least one.''.

SEC. 509. PROMOTION OF CAREER MILITARY PROFESSORS OF THE NAVY.

    (a) Promotion.--
            (1) In general.--Chapter 603 of title 10, United States 
        Code, is amended--
                    (A) by redesignating section 6970 as section 6970a; 
                and
                    (B) by inserting after section 6969 the following 
                new section 6970:
``Sec. 6970. Permanent professors: promotion
    ``(a) Promotion.--An officer serving as a permanent professor may 
be recommended for promotion to the grade of captain or colonel, as the 
case may be, under regulations prescribed by the Secretary of the Navy. 
The regulations shall include a competitive selection board process to 
identify those permanent professors best qualified for promotion. An 
officer so recommended shall be promoted by appointment to the higher 
grade by the President, by and with the advice and consent of the 
Senate.
    ``(b) Effective Date of Promotion.--If made, the promotion of an 
officer under subsection (a) shall be effective not earlier than three 
years after the selection of the officer as a permanent professor as 
described in that subsection.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 603 of such title is amended by striking 
        the item relating to section 6970 and inserting the following 
        new items:

``6970. Permanent professors: promotion.
``6970a. Permanent professors: retirement for years of service; 
                            authority for deferral.''.
    (b) Conforming Amendments.--Section 641(2) of such title is 
amended--
            (1) by striking ``and the registrar'' and inserting ``, the 
        registrar''; and
            (2) by inserting before the period at the end the 
        following: ``, and permanent professors of the Navy (as defined 
        in regulations prescribed by the Secretary of the Navy)''.

                 Subtitle B--Enlisted Personnel Policy

SEC. 521. INCREASE IN AUTHORIZED DAILY AVERAGE OF NUMBER OF MEMBERS IN 
              PAY GRADE E-9.

    (a) Increase.--Section 517(a) of title 10, United States Code, is 
amended by striking ``1 percent'' and inserting ``1.25 percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007, and shall apply with respect to fiscal 
years beginning on or after that date.

                Subtitle C--Reserve Component Management

SEC. 531. REVISED DESIGNATION, STRUCTURE, AND FUNCTIONS OF THE RESERVE 
              FORCES POLICY BOARD.

    (a) Modification of Designation, Structure, and Functions of 
Reserve Forces Policy Board.--
            (1) In general.--Section 10301 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 10301. Reserve Policy Advisory Board
    ``(a) There is in the Office of the Secretary of Defense a Reserve 
Policy Advisory Board.
    ``(b)(1) The Board shall consist of a civilian chairman and not 
more than 15 other members, each appointed by the Secretary of Defense, 
of whom--
            ``(A) not more than 4 members may be Government civilian 
        officials who must be from outside the Department of Defense; 
        and
            ``(B) not more than 2 members may be members of the armed 
        forces.
    ``(2) Each member appointed to serve on the Board shall have--
            ``(A) extensive knowledge, or experience with, reserve 
        component matters, national security and national military 
        strategies of the United States, or roles and missions of the 
        regular components and the reserve components;
            ``(B) extensive knowledge of, or experience in, homeland 
        defense and matters involving Department of Defense support to 
        civil authorities; or
            ``(C) a distinguished background in government, business, 
        personnel planning, technology and its application in military 
        operations, or other fields that are pertinent to the 
        management and utilization of the reserve components.
    ``(3) Each member of the Board shall serve for a term of 2 years, 
and, at the conclusion of such term, may be appointed under this 
subsection to serve an additional term of 2 years.
    ``(4) Upon the designation of the chairman of the Board and the 
approval of the Secretary of Defense, an officer of the Army, Navy, Air 
Force, or Marine Corps in the Reserves or the National Guard who is a 
general or flag officer shall serve as the military advisor to, and 
executive officer of, the Board. Such service shall be either full-time 
or part-time, as designated by the Secretary of Defense, and shall be 
in a non-voting status on the Board.
    ``(c)(1) This section does not affect the committees on reserve 
policies prescribed within the military departments by sections 10302 
through 10305 of this title.
    ``(2) A member of a committee or board prescribed under a section 
listed in paragraph (1) may, if otherwise eligible, be a member of the 
Reserve Policy Advisory Board.
    ``(d)(1) The Board shall provide the Secretary of Defense, through 
the Deputy Secretary of Defense, with independent advice and 
recommendations on strategies, policies, and practices designed to 
improve the capability, efficiency, and effectiveness of the reserve 
components.
    ``(2) The Board shall act on those matters referred to it by the 
Secretary or the chairman and, in addition, on any matter raised by a 
member of the Board.
    ``(e) The Under Secretary of Defense for Personnel and Readiness 
shall provide necessary logistical support to the Board.
    ``(f) The Board shall not be subject to the provisions of the 
Federal Advisory Committee Act (5 U.S.C. App.).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1009 of such title is amended by striking 
        the item relating to section 10301 and inserting the following 
        new item:

``10301. Reserve Policy Advisory Board.''.
            (3) References.--Any reference in any law, regulation, 
        document, record, or other paper of the United States to the 
        Reserve Forces Policy Board shall be deemed to be a reference 
        to the Reserve Policy Advisory Board.
    (b) Inclusion of Matters From Board in Annual Report on Activities 
of Department of Defense.--Paragraph (2) of section 113(c) of title 10, 
United States Code, is amended to read as follows:
    ``(2) At the same time the Secretary submits the annual report 
under paragraph (1), the Secretary may transmit to the President and 
Congress with such report any additional matters from the Reserve 
Policy Advisory Board on the programs and activities of the reserve 
components as the Secretary considers appropriate to include in such 
report.''.

SEC. 532. CHARTER FOR THE NATIONAL GUARD BUREAU.

    (a) Prescription of Charter by Secretary of Defense.--Section 10503 
of title 10, United States Code, is amended--
            (1) by striking ``The Secretary of the Army and the 
        Secretary of the Air Force shall jointly develop and'' in the 
        matter preceding paragraph (1) and inserting ``The Secretary of 
        the Defense shall, in consultation with the Secretary of the 
        Army, the Secretary of the Air Force, and the Chairman of the 
        Joint Chiefs of Staff,'';
            (2) in paragraph (10), by striking ``the Army and Air 
        Force'' and inserting ``the Secretary of Defense, the Secretary 
        of the Army, and the Secretary of the Air Force''; and
            (3) in paragraph (12), by striking ``Secretaries'' and 
        inserting ``Secretary of Defense, the Secretary of the Army, 
        and the Secretary of the Air Force''.
    (b) Conforming and Clerical Amendments.--
            (1) Conforming amendment.--The heading of section 10503 of 
        such title is amended to read as follows:
``Sec. 10503. Functions of National Guard Bureau: charter from the 
              Secretary of Defense''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1011 of such title is amended by striking 
        the item related to section 10503 and inserting the following 
        new item:

``10503. Functions of the National Guard Bureau: charter from the 
                            Secretary of Defense.''.

SEC. 533. APPOINTMENT, GRADE, DUTIES, AND RETIREMENT OF THE CHIEF OF 
              THE NATIONAL GUARD BUREAU.

    (a) Appointment.--Subsection (a) of section 10502 of title 10, 
United States Code, is amended by striking paragraphs (1) through (3) 
and inserting the following new paragraphs:
            ``(1) are recommended for such appointment by their 
        respective Governors or, in the case of the District of 
        Columbia, the commanding general of the District of Columbia 
        National Guard;
            ``(2) are recommended for such appointment by the Secretary 
        of the Army or the Secretary of the Air Force;
            ``(3) have had at least 10 years of federally recognized 
        commissioned service in an active status in the National Guard;
            ``(4) are in a grade above the grade of brigadier general;
            ``(5) are determined by the Chairman of the Joint Chiefs of 
        Staff, in accordance with criteria and as a result of a process 
        established by the Chairman, to have significant joint duty 
        experience;
            ``(6) are determined by the Secretary of Defense to have 
        successfully completed such other assignments and experiences 
        so as to possess a detailed understanding of the status and 
        capabilities of National Guard forces and the missions of the 
        National Guard Bureau as set forth in section 10503 of this 
        title;
            ``(7) have a level of operational experience in a position 
        of significant responsibility, professional military education, 
        and demonstrated expertise in national defense and homeland 
        defense matters that are commensurate with the advisory role of 
        the Chief of the National Guard Bureau; and
            ``(8) possess such other qualifications as the Secretary of 
        Defense shall prescribe for purposes of this section.''.
    (b) Grade.--Subsection (d) of such section is amended by striking 
``lieutenant general'' and inserting ``general''.
    (c) Repeal of Age 64 Limitation on Service.--Subsection (b) of such 
section is amended by striking ``An officer may not hold that office 
after becoming 64 years of age.''.
    (d) Advisory Duties.--Subsection (c) of section 10502 of such title 
is amended to read as follows:
    ``(c) Advisor on National Guard Matters.--The Chief of the National 
Guard Bureau is--
            ``(1) an advisor to the Secretary of Defense, through the 
        Chairman of the Joint Chiefs of Staff, on matters involving 
        non-federalized National Guard forces and on other matters as 
        determined by the Secretary of Defense; and
            ``(2) the principal adviser to the Secretary of the Army 
        and the Chief of Staff of the Army, and to the Secretary of the 
        Air Force and the Chief of Staff of the Air Force, on matters 
        relating to the National Guard, the Army National Guard of the 
        United States, and the Air National Guard of the United 
        States.''.
    (e) Deferral of Retirement.--Section 14512(a) of such title is 
amended by adding at the end the following new paragraph:
    ``(3) The President may defer the retirement of an officer serving 
in the position specified in paragraph (2)(A), but such deferment may 
not extend beyond the first day of the month following the month in 
which the officer becomes 68 years of age.''.

SEC. 534. MANDATORY SEPARATION FOR YEARS OF SERVICE OF RESERVE OFFICERS 
              IN THE GRADE OF LIEUTENANT GENERAL OR VICE ADMIRAL.

    Section 14508 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Thirty-Eight Years of Service for Lieutenant Generals and 
Vice Admirals.--Unless retired, transferred to the Retired Reserve, or 
discharged at an earlier date, each reserve officer of the Army, Air 
Force, or Marine Corps in the grade of lieutenant general, and each 
reserve officer of the Navy in the grade of vice admiral, shall, 30 
days after completion of 38 years of commissioned service, be separated 
in accordance with section 14514 of this title.''.

SEC. 535. INCREASE IN PERIOD OF TEMPORARY FEDERAL RECOGNITION AS 
              OFFICERS OF THE NATIONAL GUARD FROM SIX TO TWELVE MONTHS.

    Section 308(a) of title 32, United States Code, is amended by 
striking ``six months'' and inserting ``12 months''.

                   Subtitle D--Education and Training

SEC. 551. GRADE AND SERVICE CREDIT OF COMMISSIONED OFFICERS IN 
              UNIFORMED MEDICAL ACCESSION PROGRAMS.

    (a) Medical Students of USUHS.--Section 2114(b) of title 10, United 
States Code, is amended by striking the second sentence and inserting 
the following new sentences: ``Medical students so commissioned shall 
be appointed as regular officers in the grade of second lieutenant or 
ensign, or if they meet promotion criteria prescribed by the Secretary 
concerned, in the grade of first lieutenant or lieutenant (junior 
grade), and shall serve on active duty with full pay and allowances of 
an officer in the applicable grade. Any prior service of medical 
students on active duty shall be deemed, for pay purposes, to have been 
service as a warrant officer.''.
    (b) Participants in Health Professions Scholarship and Financial 
Assistance Program.--
            (1) Grade of participants.--Section 2121(c) of such title 
        is amended by striking the second sentence and inserting the 
        following new sentences: ``Persons so commissioned shall be 
        appointed in the grade of second lieutenant or ensign, or if 
        they meet promotion criteria prescribed by the Secretary 
        concerned, in the grade of first lieutenant or lieutenant 
        (junior grade), and shall serve on active duty with full pay 
        and allowances of an officer in the applicable grade for a 
        period of 45 days during each year of participation in the 
        program. Any prior service of such persons on active duty shall 
        be deemed, for pay purposes, to have been service as a warrant 
        officer.''.
            (2) Service credit.--Subsection (a) of section 2126 of such 
        title is amended to read as follows:
    ``(a) Service Not Creditable.--Except as provided in subsection 
(b), service performed while a member of the program shall not be 
counted in determining eligibility for retirement other than by reason 
of a physical disability incurred while on active duty as a member of 
the program.''.
    (c) Officers Detailed as Students at Medical Schools.--Subsection 
(a) of section 2004a of such title is amended by adding at the end the 
following new sentences: ``An officer detailed under this section shall 
serve on active duty, subject to the limitations on grade specified in 
section 2114(b) of this title. Any prior active service of such an 
officer shall be deemed, for pay purposes, to have been served as a 
warrant officer.''.

SEC. 552. EXPANSION OF NUMBER OF ACADEMIES SUPPORTABLE IN ANY STATE 
              UNDER STARBASE PROGRAM.

    (a) Expansion.--Section 2193b(c)(3) of title 10, United States 
Code, is amended--
            (1) in subparagraph (A), by striking ``more than two 
        academies'' and inserting ``more than four academies''; and
            (2) in subparagraph (B), by striking ``in excess of two'' 
        both places it appears and inserting ``in excess of four''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2007.

SEC. 553. REPEAL OF POST-2007-2008 ACADEMIC YEAR PROHIBITION ON PHASED 
              INCREASE IN CADET STRENGTH LIMIT AT THE UNITED STATES 
              MILITARY ACADEMY.

    Section 4342(j)(1) of title 10, United States Code, is amended by 
striking the last sentence.

SEC. 554. TREATMENT OF SOUTHOLD, MATTITUCK, AND GREENPORT HIGH SCHOOLS, 
              SOUTHOLD, NEW YORK, AS SINGLE INSTITUTION FOR PURPOSES OF 
              MAINTAINING A JUNIOR RESERVE OFFICERS' TRAINING CORPS 
              UNIT.

    Southold High School, Mattituck High School, and Greenport High 
School, located in Southold, New York, may be treated as a single 
institution for purposes of the maintenance of a unit of the Junior 
Reserve Officers' Training Corps of the Navy.

           Subtitle E--Defense Dependents' Education Matters

SEC. 561. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
              AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for Defense-
wide activities, $35,000,000 shall be available only for the purpose of 
providing assistance to local educational agencies under subsection (a) 
of section 572 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
    (b) Assistance to Schools With Enrollment Changes Due to Base 
Closures, Force Structure Changes, or Force Relocations.--Of the amount 
authorized to be appropriated pursuant to section 301(5) for operation 
and maintenance for Defense-wide activities, $10,000,000 shall be 
available only for the purpose of providing assistance to local 
educational agencies under subsection (b) of such section 572.
    (c) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)).

SEC. 562. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

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

SEC. 563. INCLUSION OF DEPENDENTS OF NON-DEPARTMENT OF DEFENSE 
              EMPLOYEES EMPLOYED ON FEDERAL PROPERTY IN PLAN RELATING 
              TO FORCE STRUCTURE CHANGES, RELOCATION OF MILITARY UNITS, 
              OR BASE CLOSURES AND REALIGNMENTS.

    Section 574(e)(3) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2227; 20 U.S.C. 
7703b note) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) elementary and secondary school students who 
                are dependents of personnel who are not members of the 
                Armed Forces or civilian employees of the Department of 
                Defense but who are employed on Federal property.''.

SEC. 564. AUTHORITY FOR PAYMENT OF PRIVATE BOARDING SCHOOL TUITION FOR 
              MILITARY DEPENDENTS IN OVERSEAS AREAS NOT SERVED BY 
              DEPARTMENT OF DEFENSE DEPENDENTS' SCHOOLS.

    Section 1407(b)(1) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 926(b)(1)) is amended in the first sentence by inserting ``, 
including private boarding schools in the United States,'' after 
``subsection (a)''.

       Subtitle F--Military Justice and Legal Assistance Matters

SEC. 571. AUTHORITY OF JUDGES OF THE UNITED STATES COURT OF APPEALS FOR 
              THE ARMED FORCES TO ADMINISTER OATHS.

    Section 936 of title 10, United States Code (article 136 of the 
Uniform Code of Military Justice), is amended by adding at the end the 
following new subsection:
    ``(c) The judges of the United States Court of Appeals for the 
Armed Forces may administer oaths.''.

SEC. 572. MILITARY LEGAL ASSISTANCE FOR DEPARTMENT OF DEFENSE CIVILIAN 
              EMPLOYEES IN AREAS WITHOUT ACCESS TO NON-MILITARY LEGAL 
              ASSISTANCE.

    Section 1044(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(6) Civilian employees of the Department of Defense in 
        locations where legal assistance from non-military legal 
        assistance providers is not reasonably available.''.

SEC. 573. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF THE JUDGE 
              ADVOCATE GENERALS' CORPS.

    (a) Department of the Army.--
            (1) Grade of judge advocate general.--Subsection (a) of 
        section 3037 of title 10, United States Code, is amended by 
        striking the third sentence and inserting the following new 
        sentence: ``The Judge Advocate General, while so serving, has 
        the grade of lieutenant general.''.
            (2) Redesignation of assistant judge advocate general as 
        deputy judge advocate general.--Such section is further 
        amended--
                    (A) in subsection (a), by striking ``Assistant 
                Judge Advocate General'' each place it appears and 
                inserting ``Deputy Judge Advocate General''; and
                    (B) in subsection (d), by striking ``Assistant 
                Judge Advocate General'' and inserting ``Deputy Judge 
                Advocate General''.
            (3) Conforming and clerical amendments.--(A) The heading of 
        such section is amended by striking ``assistant judge advocate 
        general'' and inserting ``deputy judge advocate general''.
            (B) The table of sections at the beginning of chapter 305 
        of such title is amended in the item relating to section 3037 
        by striking ``Assistant Judge Advocate General'' and inserting 
        ``Deputy Judge Advocate General''.
    (b) Grade of Judge Advocate General of the Navy.--Section 5148(b) 
of such title is amended in subsection by striking the last sentence 
and inserting the following new sentence: ``The Judge Advocate General, 
while so serving, has the grade of vice admiral or lieutenant general, 
as appropriate.''.
    (c) Grade of Judge Advocate General of the Air Force.--Section 
8037(a) of such title is amended by striking the last sentence and 
inserting the following new sentence: ``The Judge Advocate General, 
while so serving, has the grade of lieutenant general.''.
    (d) Exclusion From Active-Duty General and Flag Officer Strength 
and Distribution Limitations.--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 applicable.''.
    (e) Legal Counsel to Chairman of the Joint Chiefs of Staff.--
            (1) In general.--Chapter 5 of title 10, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 156. Legal Counsel to the Chairman of the Joint Chiefs of Staff
    ``(a) In General.--There is a Legal Counsel to the Chairman of the 
Joint Chiefs of Staff.
    ``(b) Selection for Appointment.--Under regulations prescribed by 
the Secretary of Defense, the officer selected for appointment to serve 
as Legal Counsel to the Chairman of the Joint Chiefs of Staff shall be 
recommended by a board of officers convened by the Secretary of Defense 
that, insofar as practicable, is subject to the procedures applicable 
to selection boards convened under chapter 36 of this title.
    ``(c) Grade.--An officer appointed to serve as Legal Counsel to the 
Chairman of the Joint Chiefs of Staff shall, while so serving, hold the 
grade of brigadier general or rear admiral (lower half).
    ``(d) Duties.--The Legal Counsel of the Chairman of the Joint 
Chiefs of Staff shall perform such legal duties in support of the 
responsibilities of the Chairman of the Joint Chiefs of Staff as the 
Chairman may prescribe.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 5 of such title is amended by adding at 
        the end the following new item:

``156. Legal Counsel to the Chairman of the Joint Chiefs of Staff.''.

                 Subtitle G--Military Family Readiness

SEC. 581. DEPARTMENT OF DEFENSE MILITARY FAMILY READINESS COUNCIL.

    (a) In General.--Subchapter I of chapter 88 of title 10, United 
States Code, is amended by inserting after section 1781 the following 
new section:
``Sec. 1781a. Department of Defense Military Family Readiness Council
    ``(a) In General.--There is in the Department of Defense the 
Department of Defense Military Family Readiness Council (hereafter in 
this section referred to as the `Council').
    ``(b) Members.--(1) The members of the Council shall be the 
following:
            ``(A) The Under Secretary of Defense for Personnel and 
        Readiness, who shall serve as chair of the Council.
            ``(B) One representative of each of the Army, the Navy, the 
        Marine Corps, and the Air Force, who shall be appointed by 
        Secretary of Defense.
            ``(C) Three individuals appointed by the Secretary of 
        Defense from among representatives of military family 
        organizations (including military family organizations of 
        families of members of the regular components and of families 
        of members of the reserve components), of whom not less than 
        two shall be members of the family of an enlisted member of the 
        armed forces.
    ``(2) The term on the Council of the members appointed under 
paragraph (1)(C) shall be three years.
    ``(c) Meetings.--The Council shall meet not less often than twice 
each year. Not more than one meeting of the Council each year shall be 
in the National Capital Region.
    ``(d) Duties.--The duties of the Council shall include the 
following:
            ``(1) To review and make recommendations to the Secretary 
        of Defense on the policy and plans required under section 1781b 
        of this title.
            ``(2) To monitor requirements for the support of military 
        family readiness by the Department of Defense.
            ``(3) To evaluate and assess the effectiveness of the 
        military family readiness programs and activities of the 
        Department of Defense.
    ``(e) Annual Reports.--(1) Not later than February 1 each year, the 
Council shall submit to the Secretary of Defense and the congressional 
defense committees a report on military family readiness.
    ``(2) Each report under this subsection shall include the 
following:
            ``(A) An assessment of the adequacy and effectiveness of 
        the military family readiness programs and activities of the 
        Department of Defense during the preceding fiscal year in 
        meeting the needs and requirements of military families.
            ``(B) Recommendations on actions to be taken to improve the 
        capability of the military family readiness programs and 
        activities of the Department of Defense to meet the needs and 
        requirements of military families, including actions relating 
        to the allocation of funding and other resources to and among 
        such programs and activities.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter I of chapter 88 of such title is amended by inserting after 
the item relating to section 1781 the following new item:

``1781a. Department of Defense Military Family Readiness Council.''.

SEC. 582. DEPARTMENT OF DEFENSE POLICY AND PLANS FOR MILITARY FAMILY 
              READINESS.

    (a) Policy and Plans Required.--
            (1) In general.--Subchapter I of chapter 88 of title 10, 
        United States Code, as amended by section 581 of this Act, is 
        further amended by inserting after section 1781a the following 
        new section:
``Sec. 1781b. Department of Defense policy and plans for military 
              family readiness
    ``(a) In General.--The Secretary of Defense shall develop a policy 
and plans for the Department of Defense for the support of military 
family readiness.
    ``(b) Purposes.--The purposes of the policy and plans required 
under subsection (a) are as follows:
            ``(1) To ensure that the military family readiness programs 
        and activities of the Department of Defense are comprehensive, 
        effective, and properly supported.
            ``(2) To ensure that support is continuously available to 
        military families in peacetime and in war, as well as during 
        periods of force structure change and relocation of military 
        units.
            ``(3) To ensure that the military family readiness programs 
        and activities of the Department of Defense are available to 
        all military families, including military families of members 
        of the regular components and military families of members of 
        the reserve components.
            ``(4) To ensure that the goal of military family readiness 
        is an explicit element of applicable Department of Defense 
        plans, programs, and budgeting activities, and that achievement 
        of military family readiness is expressed through Department-
        wide goals that are identifiable and measurable.
            ``(5) To ensure that the military family readiness programs 
        and activities of the Department of Defense undergo continuous 
        evaluation in order to ensure that resources are allocated and 
        expended for such programs and activities in the most effective 
        possible manner throughout the Department.
    ``(c) Elements of Policy.--The policy required under subsection (a) 
shall include the following elements:
            ``(1) A definition for treating a program or activity of 
        the Department of Defense as a military family readiness 
        program or activity.
            ``(2) Department of Defense-wide goals for military family 
        support, both for military families of members of the regular 
        components and military families of members of the reserve 
        components.
            ``(3) Requirements for joint programs and activities for 
        military family support.
            ``(4) Policies on access to military family support 
        programs and activities based on military family populations 
        served and geographical location.
            ``(5) Metrics to measure the performance and effectiveness 
        of the military family readiness programs and activities of the 
        Department of Defense.
    ``(d) Elements of Plans.--(1) Each plan under required under 
subsection (a) shall include the elements specified in paragraph (2) 
for the five-fiscal year period beginning with the fiscal year in which 
such plan is submitted under paragraph (3).
    ``(2) The elements in each plan required under subsection (a) shall 
include, for the period covered by such plan, the following:
            ``(A) An ongoing identification and assessment of the 
        effectiveness of the military family readiness programs and 
        activities of the Department of Defense in meeting goals for 
        such programs and activities, which assessment shall evaluate 
        such programs and activities separately for each military 
        department and for each regular component and each reserve 
        component.
            ``(B) A description of the resources required to support 
        the military family readiness programs and activities of the 
        Department of Defense, including the military personnel, 
        civilian personnel, and volunteer personnel so required.
            ``(C) An ongoing identification in gaps in the military 
        family readiness programs and activities of the Department of 
        Defense, and an ongoing identification of the resources 
        required to address such gaps.
            ``(D) Mechanisms to apply the metrics developed under 
        subsection (c)(5).
            ``(E) A summary, by fiscal year, of the allocation of funds 
        (including appropriated funds and nonappropriated funds) for 
        major categories of military family readiness programs and 
        activities of the Department of Defense, set forth for each of 
        the military departments and for the Office of the Secretary of 
        Defense.
    ``(3) Not later than March 1, 2008, and each year thereafter, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the plans required under subsection (a) for the 
five-fiscal year period beginning with the fiscal year beginning in the 
year in which such report is submitted. Each report shall include the 
plans covered by such report and an assessment of the discharge by the 
Department of Defense of the previous plans submitted under this 
subsection.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of subchapter I of chapter 88 of such title, as so 
        amended, is further amended by inserting after the item 
        relating to section 1781a the following new item:

``1781b. Department of Defense policy and plans for military family 
                            readiness.''.
            (3) Report on policy.--The Secretary of Defense shall 
        submit to the congressional defense committees a report setting 
        forth the policy developed under section 1781b of title 10, 
        United States Code (as added by this subsection), not later 
        than February 1, 2009.
    (b) Surveys of Military Families.--Section 1782(a) of title 10, 
United States Code, is amended--
            (1) in the heading, by striking ``Authority'' and inserting 
        ``In General''; and
            (2) by striking ``may conduct surveys'' in the matter 
        preceding paragraph (1) and inserting ``shall, in fiscal year 
        2009 and not less often than once every three fiscal years 
        thereafter, conduct surveys''.

                       Subtitle H--Other Matters

SEC. 591. ENHANCEMENT OF CARRYOVER OF ACCUMULATED LEAVE FOR MEMBERS OF 
              THE ARMED FORCES.

    (a) Increase in Accumulation of Carryover Amount.--
            (1) In general.--Subsection (b) of section 701 of title 10, 
        United States Code, is amended by striking ``60 days'' and 
        inserting ``90 days''.
            (2) High deployment members.--Paragraph (1) of subsection 
        (f) of such section is amended--
                    (A) by striking ``60 days'' each place it appears 
                and inserting ``90 days''; and
                    (B) in subparagraph (C), by striking ``third fiscal 
                year'' and inserting ``fourth fiscal year''.
            (3) Members serving in support of contingency operations.--
        Paragraph (2) of subsection (f) of such section is amended by 
        striking ``except for this paragraph--'' and all that follows 
        and inserting ``except for this paragraph, would lose any 
        accumulated leave in excess of 90 days at the end of that 
        fiscal year, shall be permitted to retain such leave until the 
        end of the second fiscal year after the fiscal year in which 
        such service on active duty is terminated.''.
            (4) Conforming amendments.--Subsection (g) of such section 
        is amended--
                    (A) by striking ``60-day'' and inserting ``90-
                day''; and
                    (B) by striking ``90-day'' and inserting ``120-
                day''.
    (b) Pay.--Section 501(b) of title 37, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(6) An enlisted member of the armed forces who would lose 
accumulated leave in excess of 120 days of leave under section 
701(f)(1) of title 10 may elect to be paid in cash or by a check on the 
Treasurer of the United States for any leave in excess so accumulated 
for up to 30 days of such leave. A member may make an election under 
this paragraph only once.''.
    (c) Effective Date.--
            (1) Increase in accumulation.--The amendments made by 
        subsection (a) shall take effect on October 1, 2008.
            (2) Pay.--The amendment made by subsection (b) shall take 
        effect on the date of the enactment of this Act.

SEC. 592. UNIFORM POLICY ON PERFORMANCES BY MILITARY BANDS.

    (a) In General.--Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 988. Performances by military bands
    ``(a) In General.--Department of Defense bands, ensembles, 
choruses, or similar musical units, including individual members 
thereof performing in an official capacity, may not--
            ``(1) engage in the performance of music in competition 
        with local civilian musicians; or
            ``(2) receive remuneration for official performances.
    ``(b) Performance of Music in Competition With Local Civilian 
Musicians Defined.--In this section, the term `performance of music in 
competition with local civilian musicians'--
            ``(1) includes--
                    ``(A) a performance of music that is more than 
                incidental to an event that is not supported solely by 
                appropriated funds or free to the public; and
                    ``(B) a performance of background, dinner, dance, 
                or other social music at any event, regardless of 
                location, that is not supported solely by appropriated 
                funds; but
            ``(2) does not include a performance of music--
                    ``(A) at an official Federal Government event that 
                is supported solely by appropriated funds;
                    ``(B) at a concert, parade, or other event of a 
                patriotic nature (including a celebration of a national 
                holiday) that is free to the public; or
                    ``(C) that is incidental to an event that is not 
                supported solely by appropriated funds, including a 
                short performance of military or patriotic music at the 
                beginning or end of an event, if the performance 
                complies with such regulations as the Secretary of 
                Defense shall prescribe for purposes of this section.
    ``(c) Members of Department of Defense Bands Performing in Personal 
Capacity.--A member of a Department of Defense band, ensemble, chorus, 
or similar musical unit may perform music in the member's personal 
capacity, as an individual or part of a group, whether for remuneration 
or otherwise, if in so performing the member does not wear a military 
uniform or otherwise identify the member as a member of the Department 
of Defense, as provided in applicable regulations and standards of 
conduct.
    ``(d) Recordings.--(1) When authorized pursuant to regulations 
prescribed by the Secretary of Defense for purposes of this section, 
Department of Defense bands, ensembles, choruses, or similar musical 
units may produce recordings for distribution to the public, at a cost 
not to exceed production and distribution expenses.
    ``(2) Amounts received in payment for recording distributed to the 
public under this subsection shall be credited to the appropriation or 
account providing the funds for the production of such recordings. Any 
amounts so credited shall be merged with amounts in the appropriation 
or account to which credited, and shall be available for the same 
purposes, and subject to the same conditions and limitations, as 
amounts in such appropriation or account.''.
    (b) Conforming Repeals.--Sections 3634, 6223, and 8634 of such 
title are repealed.
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 49 of 
        such title is amended by adding at the end the following new 
        item:

``988. Performances by military bands.''.
            (2) The table of sections at the beginning of chapter 349 
        of such title is amended by striking the item relating to 
        section 3634.
            (3) The table of sections at the beginning of chapter 565 
        of such title is amended by striking the item relating to 
        section 6223.
            (4) The table of sections at the beginning of chapter 849 
        of such title is amended by striking the item relating to 
        section 8634.

SEC. 593. WAIVER OF TIME LIMITATIONS ON AWARD OF MEDALS OF HONOR TO 
              CERTAIN MEMBERS OF THE ARMY.

    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 of title 10, United States Code, 
or any other time limitation with respect to the awarding of certain 
medals to persons who served in the military service, the President may 
award the Medal of Honor under section 3741 of that title to any of the 
persons named in subsections (b), (c), (d), (e), and (f) for the acts 
of valor referred to in the respective subsections.
    (b) Woodrow Keeble.--Subsection (a) applies with respect to Woodrow 
W. Keeble, for conspicuous acts of gallantry and intrepidity at the 
risk of his life above and beyond the call of duty as an acting platoon 
leader on October 20, 1950, during the Korean War.
    (c) Leslie Sabo, Jr.--Subsection (a) applies with respect to Leslie 
H. Sabo, Jr., for conspicuous acts of gallantry and intrepidity at the 
risk of his life above and beyond the call of duty on May 10, 1970, as 
an Army soldier, serving in the grade of Specialist Grade Four in 
Vietnam, with Company B, 3d Battalion, 506th Infantry Regiment, 101st 
Airborne Division.
    (d) Philip Shadrach.--Subsection (a) applies with respect to Philip 
G. Shadrach, for conspicuous acts of gallantry and intrepidity at the 
risk of his life above and beyond the call of duty on April 12, 1862, 
as a Union Soldier, serving in the grade of Private during the Civil 
War, with Company K, 2nd Ohio Volunteer Infantry Regiment.
    (e) Henry Svehla.--Subsection (a) applies with respect to Henry 
Svehla, for conspicuous acts of gallantry and intrepidity at the risk 
of his life above and beyond the call of duty on June 12, 1952, as an 
Army soldier, serving in the grade of Private First Class in Korea, 
with Company F, 32d Infantry Regiment, 7th Infantry Division.
    (f) George Wilson.--Subsection (a) applies with respect to George 
D. Wilson, for conspicuous acts of gallantry and intrepidity at the 
risk of his life above and beyond the call of duty on April 12, 1862, 
as a Union Soldier, serving in the grade of Private during the Civil 
War, with Company B, 2nd Ohio Volunteer Infantry Regiment.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2008 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2008, the rates 
of monthly basic pay for members of the uniformed services are 
increased by 3.5 percent.

SEC. 602. ALLOWANCE FOR PARTICIPATION OF RESERVES IN ELECTRONIC 
              SCREENING.

    (a) Allowance for Participation in Electronic Screening.--
            (1) In general.--Chapter 7 of title 37, United States Code, 
        is amended by inserting after section 433 the following new 
        section:
``Sec. 433a. Allowance for participation in Ready Reserve screening
    ``(a) Allowance Authorized.--(1) Under regulations prescribed by 
the Secretaries concerned, a member of the Individual Ready Reserve may 
be paid a stipend for participation in the screening performed pursuant 
to section 10149 of title 10, in lieu of muster duty performed under 
section 12319 of title 10, if such participation is conducted through 
electronic means.
    ``(2) The stipend paid a member under this section shall constitute 
the sole monetary allowance authorized for participation in the 
screening described in paragraph (1), and shall constitute payment in 
full to the member for participation in such screening, regardless of 
the grade or rank in which the member is serving.
    ``(b) Maximum Payment.--The aggregate amount of the stipend paid a 
member of the Individual Ready Reserve under this section in any 
calendar year may not exceed $50.
    ``(c) Payment Requirements.--(1) The stipend authorized by this 
section may not be disbursed in kind.
    ``(2) Payment of a stipend to a member of the Individual Ready 
Reserve under this section for participation in screening shall be made 
on or after the date of participation in such screening, but not later 
than 30 days after such date.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 7 of such title is amended by inserting 
        after the item relating to section 433 the following new item:

``433a. Allowance for participation in Ready Reserve screening.''.
    (b) Bar to Dual Compensation.--Section 206 of such title is amended 
by adding at the end the following new subsection:
    ``(f) A member of the Individual Ready Reserve is not entitled to 
compensation under this section for participation in screening for 
which the member is paid a stipend under section 433a of this title.''.
    (c) Bar to Retirement Credit.--Section 12732(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(8) Service in the screening performed pursuant to 
        section 10149 of this title through electronic means, 
        regardless of whether or not a stipend is paid the member 
        concerned for such service under section 433a of title 37.''.

SEC. 603. MIDMONTH PAYMENT OF BASIC PAY FOR CONTRIBUTIONS OF MEMBERS 
              PARTICIPATING IN THRIFT SAVINGS PLAN.

    Section 1014 of title 37, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Subsection (a) does not preclude a payment with respect to a 
member who elects to participate in the Thrift Savings Plan under 
section 211 of this title of an amount equal to one-half of the monthly 
deposit to the Thrift Savings Fund otherwise to be made by the member 
in participating in the Plan, which amount shall be deposited in the 
Fund at midmonth.''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title 
37, United States Code, is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--Section 
308c(i) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (d) Ready Reserve Enlistment Bonus for Persons Without Prior 
Service.--Section 308g(f)(2) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons 
With Prior Service.--Section 308h(e) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (f) Selected Reserve Enlistment Bonus for Persons With Prior 
Service.--Section 308i(f) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2009''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(e) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (h) Accession Bonus for Medical Officers in Critically Short 
Wartime Specialties.--Section 302k(f) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (i) Accession Bonus for Dental Specialist Officers in Critically 
Short Wartime Specialties.--Section 302l(g) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.

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

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(f) of title 37, United States Code, is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2008''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.

SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (c) Enlistment Bonus.--Section 309(e) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (d) Retention Bonus for Members With Critical Military Skills or 
Assigned to High Priority Units.--Section 323(i) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (e) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (f) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2008''.
    (g) Accession Bonus for Officer Candidates.--Section 330(f) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.

SEC. 615. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION 
              BONUS FOR MEDICAL OFFICERS OF THE ARMED FORCES.

    (a) Incentive Special Pay.--Section 302(b)(1) of title 37, United 
States Code, is amended by striking ``$50,000'' and inserting 
``$75,000''.
    (b) Multiyear Retention Bonus.--Section 301d(a)(2) of such title is 
amended by striking ``$50,000'' and inserting ``$75,000''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 616. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

    (a) Increase.--Section 302b(a)(4) of title 37, United States Code, 
is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``at the following rates'' and inserting ``at a rate determined 
        by the Secretary concerned, which rate may not exceed the 
        following'';
            (2) in subparagraph (A), by striking ``$4,000'' and 
        inserting ``$10,000''; and
            (3) in subparagraph (B), by striking ``$6,000'' and 
        inserting ``$12,000''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2007, and shall apply to payments of dental 
officer additional special pay under agreements entered into under 
section 302b(b) of title 37, United States Code, on or after that date.

SEC. 617. ENHANCEMENT OF HARDSHIP DUTY PAY.

    (a) In General.--The text of section 305 of title 37, United States 
Code, is amended to read as follows:
    ``(a) Authority.--A member of a uniformed service who is entitled 
to basic pay may be paid special pay under this section while the 
member is performing duty that is designated by the Secretary of 
Defense as hardship duty.
    ``(b) Payment on Monthly or Lump Sum Basis.--Special pay payable 
under this section may be paid on a monthly basis or in a lump sum.
    ``(c) Maximum Rate or Amount.--(1) The maximum monthly rate of 
special pay payable to a member on a monthly basis under this section 
is $1,500.
    ``(2) The amount of the lump sum payment of special 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 the member qualifies for payment of special pay 
        on a lump sum basis under this section; and
            ``(B) the number of months for which special pay on a lump 
        sum basis under this section is payable to the member.
    ``(d) Relationship to Other Pay and Allowances.--Special pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(e) Repayment.--A member who is paid special pay in a lump sum 
under this section, but who fails to complete the period of service for 
which such special pay is paid, shall be subject to the repayment 
provisions of section 303a(e) of this title.
    ``(f) Regulations.--The Secretary of Defense shall prescribe 
regulations for the payment of hardship duty pay under this section, 
including the specific rates at which special pay payable under this 
section on a monthly basis shall be paid.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007, and shall apply with respect to 
hardship duty pay payable on or after that date.

SEC. 618. INCLUSION OF SERVICE AS OFF-CYCLE CREWMEMBER OF MULTI-CREWED 
              SHIP IN SEA DUTY FOR CAREER SEA PAY.

    (a) In General.--Section 305a(e)(1)(A) of title 37, United States 
Code, is amended--
            (1) in clause (ii), by striking ``or'' at the end; and
            (2) by adding at the end the following new clause:
                    ``(iv) while serving as an off-cycle crewmember of 
                a multi-crewed ship; or''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2007, and shall apply with respect to months 
beginning on or after that date.

SEC. 619. MODIFICATION OF REENLISTMENT BONUS FOR MEMBERS OF THE 
              SELECTED RESERVE.

    (a) Minimum Period of Reenlistment.--Subsection (a)(2) of section 
308b of title 37, United States Code, is amended by striking ``for a 
period of three years or for a period of six years'' and inserting 
``for a period of not less than three years''.
    (b) Amount of Bonus.--Subsection (b)(1) of such section is amended 
by striking ``may not exceed--'' and all that follows and inserting 
``may not exceed $15,000.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007, and shall apply with respect to 
reenlistments or extensions of enlistment that occur on or after that 
date.

SEC. 620. INCREASE IN YEARS OF COMMISSIONED SERVICE COVERED BY 
              AGREEMENTS FOR NUCLEAR-QUALIFIED OFFICERS EXTENDING 
              PERIODS OF ACTIVE DUTY.

    (a) Increase.--Section 312 of title 37, United States Code, is 
amended--
            (1) in subsection (a)(3), by striking ``26 years'' and 
        inserting ``30 years''; and
            (2) in subsection (e)(1), by striking ``26 years'' and 
        inserting ``30 years''.
    (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 agreements, including new agreements, entered into 
under section 312 of title 37, United States Code, on or after that 
date.

SEC. 621. AUTHORITY TO WAIVE 25-YEAR ACTIVE DUTY LIMIT FOR RETENTION 
              BONUS FOR CRITICAL MILITARY SKILLS WITH RESPECT TO 
              CERTAIN MEMBERS.

    (a) Authority.--Section 323(e) of title 37, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(4) The limitations in paragraph (1) may be waived by the 
Secretary of Defense, or by the Secretary of Homeland Security with 
respect to the Coast Guard when it is not operating as a service in the 
Navy, with respect to a member who is assigned duties in a critical 
skill designated by such Secretary for purposes of this paragraph 
during the period of active duty for which the bonus is being 
offered.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 2007, and shall apply with respect to written 
agreements that are executed, or reenlistments or extensions of 
enlistment that occur, under section 323 of title 37, United States 
Code, on or after that date.

SEC. 622. CODIFICATION AND IMPROVEMENT OF AUTHORITY TO PAY BONUS TO 
              ENCOURAGE MEMBERS OF THE ARMY TO REFER OTHER PERSONS FOR 
              ENLISTMENT IN THE ARMY.

    (a) Codification and Improvement of Bonus Authority.--
            (1) In general.--Chapter 5 of title 37, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 331. Bonus to encourage Army personnel to refer other persons 
              for enlistment in the Army
    ``(a) Authority To Pay Bonus.--
            ``(1) Authority.--The Secretary of the Army may pay a bonus 
        under this section to an individual referred to in paragraph 
        (2) who refers to an Army recruiter a person who has not 
        previously served in an armed force and who, after such 
        referral, enlists in the regular component of the Army or in 
        the Army National Guard or Army Reserve.
            ``(2) Individuals eligible for bonus.--Subject to 
        subsection (c), the following individuals are eligible for a 
        referral bonus under this section:
                    ``(A) A member in the regular component of the 
                Army.
                    ``(B) A member of the Army National Guard.
                    ``(C) A member of the Army Reserve.
                    ``(D) A member of the Army in a retired status, 
                including a member under 60 years of age who, but for 
                age, would be eligible for retired pay.
                    ``(E) A civilian employee of the Department of the 
                Army.
    ``(b) Referral.--For purposes of this section, a referral for which 
a bonus may be paid under subsection (a) occurs--
            ``(1) when the individual concerned contacts an Army 
        recruiter on behalf of a person interested in enlisting in the 
        Army; or
            ``(2) when a person interested in enlisting in the Army 
        contacts the Army recruiter and informs the recruiter of the 
        role of the individual concerned in initially recruiting the 
        person.
    ``(c) Certain Referrals Ineligible.--
            ``(1) Referral of immediate family.--A member of the Army 
        may not be paid a bonus under subsection (a) for the referral 
        of an immediate family member.
            ``(2) Members in recruiting roles.--A member of the Army 
        serving in a recruiting or retention assignment, or assigned to 
        other duties regarding which eligibility for a bonus under 
        subsection (a) could (as determined by the Secretary) be 
        perceived as creating a conflict of interest, may not be paid a 
        bonus under subsection (a).
            ``(3) Junior reserve officers' training corps 
        instructors.--A member of the Army detailed under subsection 
        (c)(1) of section 2031 of title 10 to serve as an administrator 
        or instructor in the Junior Reserve Officers' Training Corps 
        program or a retired member of the Army employed as an 
        administrator or instructor in the program under subsection (d) 
        of such section may not be paid a bonus under subsection (a).
    ``(d) Amount of Bonus.--The amount of the bonus payable for a 
referral under subsection (a) may not exceed $2,000. The amount shall 
be payable as provided in subsection (e).
    ``(e) Payment.--A bonus payable for a referral of a person under 
subsection (a) shall be paid as follows:
            ``(1) Not more than $1,000 shall be paid upon the 
        commencement of basic training by the person.
            ``(2) Not more than $1,000 shall be paid upon the 
        completion of basic training and individual advanced training 
        by the person.
    ``(f) Relation to Prohibition on Bounties.--The referral bonus 
authorized by this section is not a bounty for purposes of section 
514(a) of title 10.
    ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under 
this section to a member of the Army in a retired status is in addition 
to any compensation to which the member is entitled under title 10, 37, 
or 38, or any other provision of law.
    ``(h) Duration of Authority.--A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after December 
31, 2008.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 5 of such title is amended by adding at 
        the end the following new item:

``331. Bonus to encourage Army personnel to refer other persons for 
                            enlistment in the Army.''.
    (b) Repeal of Superseded Authority.--Section 645 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), as 
amended, is repealed.
    (c) Payment of Bonuses Under Superseded Authority.--Any bonus 
payable under section 645 of the National Defense Authorization Act for 
Fiscal Year 2006, as amended, as of the day before the date of the 
enactment of this Act shall remain payable after that date in 
accordance with the provisions of such section as in effect on such 
day.

SEC. 623. AUTHORITY TO PAY BONUS TO ENCOURAGE DEPARTMENT OF DEFENSE 
              PERSONNEL TO REFER OTHER PERSONS FOR APPOINTMENT AS 
              OFFICERS TO SERVE IN HEALTH PROFESSIONS.

    (a) In General.--Chapter 5 of title 37, United States Code, as 
amended by section 622 of this Act, is further amended by adding at the 
end the following new section:
``Sec. 331a. Bonus to encourage Department of Defense personnel to 
              refer other persons for appointment as officers to serve 
              in health professions
    ``(a) Authority To Pay Bonus.--
            ``(1) Authority.--The appropriate Secretary may pay a bonus 
        under this section to an individual referred to in paragraph 
        (2) who refers to a military recruiter a person who has not 
        previously served and, after such referral, takes an oath of 
        enlistment that leads to appointment as a commissioned officer, 
        or accepts an appointment as a commissioned officer, in an 
        armed force in a health profession designated by the 
        appropriate Secretary for purposes of this section.
            ``(2) Individuals eligible for bonus.--Subject to 
        subsection (c), the following individuals are eligible for a 
        referral bonus under this section:
                    ``(A) A member of the armed forces in a regular 
                component of the armed forced.
                    ``(B) A member of the armed forces in a reserve 
                component of the armed forced.
                    ``(C) A member of the armed forces in a retired 
                status, including a member under 60 years of age who, 
                but for age, would be eligible for retired or retainer 
                pay.
                    ``(D) A civilian employee of a military department 
                or the Department of Defense.
    ``(b) Referral.--For purposes of this section, a referral for which 
a bonus may be paid under subsection (a) occurs--
            ``(1) when the individual concerned contacts a military 
        recruiter on behalf of a person interested in taking an oath of 
        enlistment that leads to appointment as a commissioned officer, 
        or accepting an appointment as a commissioned officer, as 
        applicable, in an armed force in a health profession; or
            ``(2) when a person interested in taking an oath of 
        enlistment that leads to appointment as a commissioned officer, 
        or accepting an appointment as a commissioned officer, as 
        applicable, in an armed force in a health profession contacts a 
        military recruiter and informs the recruiter of the role of the 
        individual concerned in initially recruiting the person.
    ``(c) Certain Referrals Ineligible.--
            ``(1) Referral of immediate family.--A member of the armed 
        forces may not be paid a bonus under subsection (a) for the 
        referral of an immediate family member.
            ``(2) Members in recruiting roles.--A member of the armed 
        forces serving in a recruiting or retention assignment, or 
        assigned to other duties regarding which eligibility for a 
        bonus under subsection (a) could (as determined by the 
        appropriate Secretary) be perceived as creating a conflict of 
        interest, may not be paid a bonus under subsection (a).
            ``(3) Junior reserve officers' training corps 
        instructors.--A member of the armed forces detailed under 
        subsection (c)(1) of section 2031 of title 10 to serve as an 
        administrator or instructor in the Junior Reserve Officers' 
        Training Corps program or a retired member of the armed forces 
        employed as an administrator or instructor in the program under 
        subsection (d) of such section may not be paid a bonus under 
        subsection (a).
    ``(d) Amount of Bonus.--The amount of the bonus payable for a 
referral under subsection (a) may not exceed $2,000. The amount shall 
be payable as provided in subsection (e).
    ``(e) Payment.--A bonus payable for a referral of a person under 
subsection (a) shall be paid as follows:
            ``(1) Not more than $1,000 shall be paid upon the execution 
        by the person of an agreement to serve as an officer in a 
        health profession in an armed force for not less than 3 years,
            ``(2) Not more than $1,000 shall be paid upon the 
        completion by the person of the initial period of military 
        training as an officer.
    ``(f) Relation to Prohibition on Bounties.--The referral bonus 
authorized by this section is not a bounty for purposes of section 
514(a) of title 10.
    ``(g) Coordination With Receipt of Retired Pay.--A bonus paid under 
this section to a member of the armed forces in a retired status is in 
addition to any compensation to which the member is entitled under 
title 10, 37, or 38, or any other provision of law.
    ``(h) Appropriate Secretary Defined.--In this section, the term 
`appropriate Secretary' means--
            ``(1) the Secretary of the Army, with respect to matters 
        concerning the Army;
            ``(2) the Secretary of the Navy, with respect to matters 
        concerning the Navy, the Marine Corps, and the Coast Guard when 
        it is operating as a service in the Navy;
            ``(3) the Secretary of the Air Force, with respect to 
        matters concerning the Air Force; and
            ``(4) the Secretary of Defense, with respect to personnel 
        of the Department of Defense.
    ``(i) Duration of Authority.--A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after December 
31, 2008.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 5 of such title, as so amended, is further amended by adding at 
the end the following new item:

``331a. Bonus to encourage Department of Defense personnel to refer 
                            other persons for appointment as officers 
                            to serve in health professions.''.

SEC. 624. ACCESSION BONUS FOR PARTICIPANTS IN ARMED FORCES HEALTH 
              PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    (a) Accession Bonus Authorized.--Section 2127 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(f)(1) In order to increase participation in the program, the 
Secretary of Defense may pay a person who signs an agreement under 
section 2122 of this title an accession bonus of not more than $20,000.
    ``(2) An accession bonus paid a person under this subsection is in 
addition to any other amounts payable to the person under this 
subchapter.
    ``(3) In the case of an individual who is paid an accession bonus 
under this subsection, but fails to commence or complete the obligated 
service required of the person under this subchapter, the repayment 
provisions of section 303a(e) of title 37 shall apply to the accession 
bonus paid the person under this subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2007, and shall apply with respect to 
agreements signed under subchapter I of chapter 105 of title 10, United 
States Code, on or after that date.

            Subtitle C--Travel and Transportation Allowances

SEC. 641. PAYMENT OF EXPENSES OF TRAVEL TO THE UNITED STATES FOR 
              OBSTETRICAL PURPOSES OF DEPENDENTS LOCATED IN VERY REMOTE 
              LOCATIONS OUTSIDE THE UNITED STATES.

    Section 1040 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c) and (d) as subsection 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) The Secretary of Defense may pay the travel expenses and 
related expenses of a dependent of a member of the uniformed services 
assigned to a very remote location outside the United States, as 
determined by the Secretary, for travel for obstetrical purposes to a 
location in the United States.''.

SEC. 642. PAYMENT OF MOVING EXPENSES FOR JUNIOR RESERVE OFFICERS' 
              TRAINING CORPS INSTRUCTORS IN HARD-TO-FILL POSITIONS.

    Section 2031 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) When determined by the Secretary of the military 
department concerned to be in the national interest and agreed upon by 
the institution concerned, the institution may reimburse the moving 
expenses of a Junior Reserve Officers' Training Corps instructor who 
executes a written agreement to serve a minimum of two years of 
employment at the institution in a position that is hard-to-fill for 
geographic or economic reasons and as determined by the Secretary 
concerned.
    ``(2) Any reimbursement of an instructor under paragraph (1) is in 
addition to the minimum instructor pay otherwise payable to the 
instructor.
    ``(3) The Secretary concerned shall reimburse an institution making 
a reimbursement under paragraph (1) in an amount equal to the amount of 
the reimbursement paid by the institution under that paragraph. Any 
reimbursement under this paragraph shall be made from funds 
appropriated for that purpose.
    ``(4) The payment of reimbursements under paragraphs (1) and (3) 
shall be subject to regulations prescribed by the Secretary of Defense 
for purposes of this subsection.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 651. MODIFICATION OF SCHEME FOR PAYMENT OF DEATH GRATUITY PAYABLE 
              WITH RESPECT TO MEMBERS OF THE ARMED FORCES.

    (a) In General.--Subsection (a) of section 1477 of title 10, United 
States Code, is amended by striking all that follows ``on the following 
list:'' and inserting the following:
            ``(1) To any individual designated by the person in 
        writing.
            ``(2) If there is no person so designated, to the surviving 
        spouse of the person.
            ``(3) If there is none of the above, to the children (as 
        prescribed by subsection (b)) of the person and the descendants 
        of any deceased children by representation.
            ``(4) If there is none of the above, to the parents (as 
        prescribed by subsection (c)) of the person or the survivor of 
        them.
            ``(5) If there is none of the above, to the duly appointed 
        executor or administrator of the estate of the person.
            ``(6) If there is none of the above, to other next of kin 
        of the person entitled under the laws of domicile of the person 
        at the time of the person's death.''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (b), by striking ``Subsection (a)(2)'' in 
        the matter preceding paragraph (1) and inserting ``Subsection 
        (a)(3)'';
            (2) by striking (c) and inserting the following new 
        subsection (c):
    ``(c) For purposes of subsection (a)(4), parents include fathers 
and mothers through adoption. However, only one father and one mother 
may be recognized in any case, and preference shall be given to those 
who exercised a parental relationship on the date, or most nearly 
before the date, on which the decedent entered a status described in 
section 1475 or 1476 of this title.''; and
            (3) by striking subsection (d).
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    (d) Applicability.--Notwithstanding subsection (c), the provisions 
of section 1477 of title 10, United States Code, as in effect on the 
day before the date of the enactment of this Act, shall continue to 
apply to each member of the Armed Forces covered by such section until 
the earlier of the following--
            (1) the date on which such member makes the designation 
        contemplated by paragraph (1) of section 1477(a) of such title 
        (as amended by subsection (a) of this section); or
            (2) January 1, 2008.
    (e) Regulations.--
            (1) In general.--Not later than December 1, 2007, the 
        Secretary of Defense shall prescribe regulations to implement 
        the amendments to section 1477 of title 10, United States Code, 
        made by subsection (a).
            (2) Elements.--The regulations required by paragraph (1) 
        shall include forms for the making of the designation 
        contemplated by paragraph (1) of section 1477(a) of title 10, 
        United States Code (as amended by subsection (a)), and 
        instructions for members of the Armed Forces in the filling out 
        of such forms.

SEC. 652. ANNUITIES FOR GUARDIANS OR CARETAKERS OF DEPENDENT CHILDREN 
              UNDER SURVIVOR BENEFIT PLAN.

    (a) Election.--Section 1448(b) of title 10, United States Code, is 
amended--
            (1) in the subsection caption, by striking ``and Former 
        Spouse'' and inserting ``, Former Spouse, and Guardian or 
        Caretaker''; and
            (2) by adding at the end the following new paragraph:
            ``(6) Guardian or caretaker coverage.--
                    ``(A) General rule.--A person who is not married 
                and has one or more dependent children upon becoming 
                eligible to participate in the Plan may elect to 
                provide an annuity under the Plan to a natural person 
                (other than a natural person with an insurable interest 
                in the person under paragraph (1) or a former spouse) 
                who acts as a guardian or caretaker to such child or 
                children. In the case of a person providing a reserve-
                component annuity, such an election shall include a 
                designation under subsection (e).
                    ``(B) Termination of coverage.--Subparagraphs (B) 
                through (E) of paragraph (1) shall apply to an election 
                under subparagraph (A) of this paragraph in the same 
                manner as such subparagraphs apply to an election under 
                subparagraph (A) of paragraph (1).
                    ``(C) Election of new beneficiary upon death of 
                previous beneficiary.--Subparagraph (G) of paragraph 
                (1) shall apply to an election under subparagraph (A) 
                of this paragraph in the same manner as such 
                subparagraph (G) applies to an election under 
                subparagraph (A) of paragraph (1), except that any new 
                beneficiary elected under such subparagraph (G) by 
                reason of this subparagraph shall be a guardian or 
                caretaker of the dependent child or children of the 
                person making such election.''.
    (b) Payment of Annuity.--Section 1450 of such title is amended--
            (1) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(5) Guardian or caretaker coverage.--The natural person 
        designated under section 1448(b)(6) of this title, unless the 
        election to provide an annuity to the natural person has been 
        changed as provided in subsection (f).''; and
            (2) in the subsection caption of subsection (f), by 
        striking ``or Former Spouse'' and inserting ``, Former Spouse, 
        or Guardian or Caretaker''.
    (c) Amount of Annuity.--Section 1451(b) of such title is amended--
            (1) in the subsection caption, by inserting ``or Guardian 
        or Caretaker'' after ``Insurable Interest''; and
            (2) by inserting ``or 1450(a)(5)'' after ``1450(a)(4)'' 
        each place it appears in paragraphs (1) and (2).
    (d) Reduction in Retired Pay.--Section 1452(c) of such title is 
amended--
            (1) in the subsection caption, by inserting ``or Guardian 
        or Caretaker'' after ``Insurable Interest''; and
            (2) by inserting ``or 1450(a)(5)'' after ``1450(a)(4)'' 
        each place it appears in paragraphs (1) and (3).

SEC. 653. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY 
              FOR CHAPTER 61 MILITARY RETIREES.

    (a) Eligibility.--Subsection (c) of section 1413a of title 10, 
United States Code, is amended by striking ``entitled to retired pay 
who--'' and all that follows and inserting ``who--
            ``(1) is entitled to retired pay (other than by reason of 
        section 12731b of this title); and
            ``(2) has a combat-related disability.''.
    (b) Computation.--Paragraph (3) of subsection (b) of such section 
is amended--
            (1) by designating the text of that paragraph as 
        subparagraph (A), realigning that text so as to be indented 4 
        ems from the left margin, and inserting before ``In the case 
        of'' the following heading: ``In general.--''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Special rule for retirees with fewer than 20 
                years of service.--In the case of an eligible combat-
                related disabled uniformed services retiree who is 
                retired under chapter 61 of this title with fewer than 
                20 years of creditable service, the amount of the 
                payment under paragraph (1) for any month shall be 
                reduced by the amount (if any) by which the amount of 
                the member's retired pay under chapter 61 of this title 
                exceeds the amount equal to 2\1/2\ percent of the 
                member's years of creditable service multiplied by the 
                member's retired pay base under section 1406(b)(1) or 
                1407 of this title, whichever is applicable to the 
                member.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2008, and shall apply to payments for months 
beginning on or after that date.

SEC. 654. CLARIFICATION OF APPLICATION OF RETIRED PAY MULTIPLIER 
              PERCENTAGE TO MEMBERS OF THE UNIFORMED SERVICES WITH OVER 
              30 YEARS OF SERVICE.

    (a) Computation of Retired and Retainer Pay for Members of Naval 
Service.--The table in section 6333(a) of title 10, United States Code, 
is amended in Column 2 of Formula A by striking ``75 percent'' and 
inserting ``Retired pay multiplier prescribed under section 1409 for 
the years of service that may be credited to him under section 1405.''.
    (b) Retired Pay for Certain Members Recalled to Active Duty.--The 
table in section 1402(a) of such title is amended by striking Column 3.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on January 1, 2007, and shall apply with respect to 
retired pay and retainer pay payable on or after that date.

SEC. 655. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE RETIRED PAY BY 
              MEMBERS OF THE READY RESERVE ON ACTIVE FEDERAL STATUS OR 
              ACTIVE DUTY FOR SIGNIFICANT PERIODS.

    (a) Reduced Eligibility Age.--Section 12731 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking paragraph (1) and 
        inserting the following:
            ``(1) has attained the eligibility age applicable under 
        subsection (f) to that person;''; and
            (2) by adding at the end the following new subsection:
    ``(f)(1) Subject to paragraph (2), the eligibility age for purposes 
of subsection (a)(1) is 60 years of age.
    ``(2)(A) In the case of a person who as a member of the Ready 
Reserve serves on active duty or performs active service described in 
subparagraph (B) after the date of the enactment of this subsection, 
the eligibility age for purposes of subsection (a)(1) shall be reduced 
below 60 years of age by three months for each aggregate of 90 days on 
which such person so performs in any fiscal year after such date, 
subject to subparagraph (C). A day of duty may be included in only one 
aggregate of 90 days for purposes of this subparagraph.
    ``(B)(i) Service on active duty described in this subparagraph is 
service on active duty pursuant to a call or order to active duty under 
a provision of law referred to in section 101(a)(13)(B) or under 
section 12301(d) of this title. Such service does not include service 
on active duty pursuant to a call or order to active duty under section 
12310 of this title.
    ``(ii) Active service described in this subparagraph is also 
service under a call to active service authorized by the President or 
the Secretary of Defense under section 502(f) of title 32 for purposes 
of responding to a national emergency declared by the President or 
supported by Federal funds.
    ``(C) The eligibility age for purposes of subsection (a)(1) may not 
be reduced below 50 years of age for any person under subparagraph 
(A).''.
    (b) Continuation of Age 60 as Minimum Age for Eligibility of Non-
Regular Service Retirees For Health Care.--Section 1074(b) of such 
title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to a member or former member 
entitled to retired pay for non-regular service under chapter 1223 of 
this title who is under 60 years of age.''.
    (c) Administration of Related Provisions of Law or Policy.--With 
respect to any provision of law, or of any policy, regulation, or 
directive of the executive branch that refers to a member or former 
member of the uniformed services as being eligible for, or entitled to, 
retired pay under chapter 1223 of title 10, United States Code, but for 
the fact that the member or former member is under 60 years of age, 
such provision shall be carried out with respect to that member or 
former member by substituting for the reference to being 60 years of 
age a reference to having attained the eligibility age applicable under 
subsection (f) of section 12731 of title 10, United States Code (as 
added by subsection (a)), to such member or former member for 
qualification for such retired pay under subsection (a) of such 
section.

                     Subtitle E--Education Benefits

SEC. 671. TUITION ASSISTANCE FOR OFF-DUTY TRAINING OR EDUCATION.

    (a) Clarification of Applicability of Current Authority to 
Commissioned Officers on Active Duty.--Subsection (b) of section 2007 
of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(other than a member of the 
                Ready Reserve)'' after ``active duty'' the first place 
                it appears; and
                    (B) by striking ``or full-time National Guard 
                duty'' both places it appears; and
            (2) in paragraph (2)(B), by inserting ``for which ordered 
        to active duty'' after ``active duty service''.
    (b) Authority To Pay Tuition Assistance to Members of the Ready 
Reserve.--
            (1) In general.--Subsection (c) of such section is amended 
        to read as follows:
    ``(c)(1) Subject to paragraphs (3)(A) and (4), the Secretary of a 
military department may pay the charges of an educational institution 
for the tuition or expenses described in subsection (a) of a member of 
the Selected Reserve.
    ``(2) Subject to paragraphs (3)(B) and (4), the Secretary of a 
military department may pay the charges of an educational institution 
for the tuition or expenses described in subsection (a) of a member of 
the Individual Ready Reserve who has a military occupational specialty 
designated by the Secretary for purposes of this subsection.
    ``(3)(A) The Secretary of a military department may not pay charges 
under paragraph (1) for tuition or expenses of an officer of the 
Selected Reserve unless the officer agrees to remain a member of the 
Selected Reserve for at least four years after completion of the 
education or training for which the charges are paid.
    ``(B) The Secretary of a military department may not pay charges 
under paragraph (2) for tuition or expenses of an officer of the 
Individual Ready Reserve unless the officer agrees to remain in the 
Selected Reserve or Individual Ready Reserve for at least four years 
after completion of the education or training for which the charges are 
paid.
    ``(4) The Secretary of a military department may require enlisted 
members of the Selected Reserve or Individual Ready Reserve to agree to 
serve for up to four years in the Selected Reserve or Individual Ready 
Reserve, as the case may be, after completion of education or training 
for which tuition or expenses are paid under paragraph (1) or (2), as 
applicable.''.
            (2) Repeal of superseded provision.--Such section is 
        further amended--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) and (f) as 
                subsections (d) and (e), respectively.
            (3) Repayment of unearned benefit.--Subsection (e) of such 
        section, as redesignated by paragraph (2) of this subsection, 
        is amended--
                    (A) by inserting ``(1)'' after ``(e)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) If a member of the Ready Reserve who enters into an agreement 
under subsection (c) does not complete the period of service specified 
in the agreement, the member shall be subject to the repayment 
provisions of section 303a(e) of title 37.''.
    (c) Regulations.--Such section is further amended by adding at the 
end the following new subsection:
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense and the Secretary of Homeland 
Security for the Coast Guard when it is not operating as a service in 
the Navy.''.

SEC. 672. EXPANSION OF SELECTED RESERVE EDUCATION LOAN REPAYMENT 
              PROGRAM.

    (a) Additional Loans Eligible for Repayment.--Paragraph (1) of 
subsection (a) of section 16301 of title 10, United States Code, is 
amended--
            (1) in subparagraph (B), by striking ``or'' at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
            ``(D) any loan incurred for educational purposes made by a 
        lender that is--
                    ``(i) an agency or instrumentality of a State;
                    ``(ii) a financial or credit institution (including 
                an insurance company) that is subject to examination 
                and supervision by an agency of the United States or 
                any State;
                    ``(iii) a pension fund approved by the Secretary 
                for purposes of this section; or
                    ``(iv) a nonprofit private entity designated by a 
                State, regulated by such State, and approved by the 
                Secretary for purposes of this section.''.
    (b) Eligibility of Officers.--Such subsection is further amended--
            (1) in paragraph (2)--
                    (A) by striking ``Except as provided in paragraph 
                (3), the Secretary'' and inserting ``The Secretary''; 
                and
                    (B) by striking ``an enlisted member of the 
                Selected Reserve of the Ready Reserve of an armed force 
                in a reserve component and military specialty'' and 
                inserting ``a member of the Selected Reserve of the 
                Ready Reserve of an armed force in a reserve component 
                and officer program or military specialty''; and
            (2) by striking paragraph (3).
    (c) Conforming Amendment.--The heading of such section is amended 
to read as follows:
``Sec. 16301. Education loan repayment program: members of the Selected 
              Reserve''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 1609 of such title is amended by striking the item relating to 
section 16301 and inserting the following new item:

``16301. Education loan repayment program: members of the Selected 
                            Reserve.''.

                       Subtitle F--Other Matters

SEC. 681. ENHANCEMENT OF AUTHORITIES ON INCOME REPLACEMENT PAYMENTS FOR 
              RESERVES EXPERIENCING EXTENDED AND FREQUENT MOBILIZATION 
              FOR ACTIVE-DUTY SERVICE.

    (a) Clarification of General Authority.--Subsection (a) of section 
910 of title 37, United States Code, is amended by inserting ``, when 
the total monthly military compensation of the member is less than the 
average monthly civilian income'' after ``by the Secretary''.
    (b) Eligibility.--Subsection (b) of such section is amended to read 
as follows:
    ``(b) Eligibility.--Subject to subsection (c), a reserve component 
member is entitled to a payment under this section for any full month 
of active duty of the member--
            ``(1) while on active duty under an involuntary 
        mobilization order, following the date on which the member--
                    ``(A) completes 18 continuous months of service on 
                active duty under such an order;
                    ``(B) completes 730 cumulative days of service on 
                active duty under such an order during the previous 
                1,826 days; or
                    ``(C) is involuntarily mobilized for service on 
                active duty for a period of 180 days or more within 180 
                days following the member's separation from a previous 
                period of involuntary active duty for period of 180 
                days or more; or
            ``(2) while retained on active duty under subparagraph (A) 
        or (B) of section 12301(h)(1) of title 10 because of an injury 
        or illness incurred or aggravated while deployed to an area 
        designated for special pay under section 310 of this title 
        after becoming entitled to income replacement pay under 
        paragraph (1).''.
    (c) Termination.--Subsection (g) of such section is amended to read 
as follows:
    ``(g) Termination of Authority.--Payment under this section shall 
only be made for service performed on or before December 31, 2008.''.

SEC. 682. OVERSEAS NATURALIZATION OF MILITARY FAMILY MEMBERS.

    (a) In General.--Section 319 of the Immigration and Nationality Act 
(8 U.S.C. 1430) is amended by adding at the end the following new 
subsection:
    ``(e) Any person who is lawfully admitted for permanent residence, 
is the spouse or child of a member of the Armed Forces, and is 
authorized to accompany such member and reside in a foreign country 
with the member pursuant to the member's official orders, and who is so 
accompanying and residing with the member (in marital union if a 
spouse), may be naturalized upon compliance with all the requirements 
of this title except that the person's residence and physical presence 
in such foreign country shall be treated as residence and physical 
presence in the United States or any State for the purpose of 
satisfying the requirements of section 316 or 322 for naturalization 
and for the purpose of satisfying the requirements of section 
101(a)(13)(C)(i) or (ii).''.
    (b) Overseas Naturalization Authority.--Section 1701(d) of the 
National Defense Authorization Act for Fiscal Year 2004 (8 U.S.C. 
1443a) is amended by inserting ``, and persons eligible to meet the 
residence or physical presence requirements for naturalization pursuant 
to subsection (e) of section 319 of the Immigration and Nationality Act 
(8 U.S.C. 1430),'' after ``Armed Forces''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and apply to any 
application of naturalization pending before the Secretary of Homeland 
Security on or after the date of enactment.

                   TITLE VII--HEALTH CARE PROVISIONS

SEC. 701. INCLUSION OF TRICARE RETAIL PHARMACY PROGRAM IN FEDERAL 
              PROCUREMENT OF PHARMACEUTICALS.

    (a) In General.--Section 1074g of title 10, United States Code, is 
amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Procurement of Pharmaceuticals by TRICARE Retail Pharmacy 
Program.--With respect to any prescription filled on or after October 
1, 2007, the TRICARE retail pharmacy program shall be treated as an 
element of the Department of Defense for purposes of the procurement of 
drugs by Federal agencies under section 8126 of title 38 to the extent 
necessary to ensure that pharmaceuticals paid for by the Department of 
Defense that are provided by pharmacies under the program to eligible 
covered beneficiaries under this section are subject to the pricing 
standards in such section 8126.''.
    (b) Regulations.--The Secretary of Defense shall, after 
consultation with the other administering Secretaries under chapter 55 
of title 10, United States Code, modify the regulations under 
subsection (h) of section 1074g of title 10, United States Code (as 
redesignated by subsection (a)(1) of this section), to implement the 
requirements of subsection (f) of section 1074g of title 10, United 
States Code (as amended by subsection (a)(2) of this section). The 
Secretary shall so modify such regulations not later than December 31, 
2007.

SEC. 702. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD AND 
              TRICARE EXTRA.

    (a) Requirement for Surveys.--
            (1) In general.--The Secretary of Defense shall conduct 
        surveys of health care providers and beneficiaries who use 
        TRICARE in the United States to determine, utilizing a 
        reconciliation of the responses of providers and beneficiaries 
        to such surveys, each of the following:
                    (A) How many health care providers in TRICARE Prime 
                service areas selected under paragraph (3)(A) are 
                accepting new patients under each of TRICARE Standard 
                and TRICARE Extra.
                    (B) How many health care providers in geographic 
                areas in which TRICARE Prime is not offered are 
                accepting patients under each of TRICARE Standard and 
                TRICARE Extra.
                    (C) The availability of mental health care 
                providers in TRICARE Prime service areas selected under 
                paragraph (3)(C) and in geographic areas in which 
                TRICARE Prime is not offered.
            (2) Benchmarks.--The Secretary shall establish for purposes 
        of the surveys required by paragraph (1) benchmarks for primary 
        care and specialty care providers, including mental health care 
        providers, to be utilized to determine the adequacy of health 
        care providers to beneficiaries eligible for TRICARE.
            (3) Scope of surveys.--The Secretary shall carry out the 
        surveys required by paragraph (1) as follows:
                    (A) In the case of the surveys required by 
                subparagraph (A) of that paragraph, in at least 20 
                TRICARE Prime service areas in the United States in 
                each of fiscal years 2008 through 2011.
                    (B) In the case of the surveys required by 
                subparagraph (B) of that paragraph, in 20 geographic 
                areas in which TRICARE Prime is not offered and in 
                which significant numbers of beneficiaries who are 
                members of the Selected Reserve reside.
                    (C) In the case of the surveys required by 
                subparagraph (C) of that paragraph, in at least 40 
                geographic areas.
            (4) Priority for surveys.--In prioritizing the areas which 
        are to be surveyed under paragraph (1), the Secretary shall--
                    (A) consult with representatives of TRICARE 
                beneficiaries and health care and mental health care 
                providers to identify locations where TRICARE Standard 
                beneficiaries are experiencing significant levels of 
                access-to-care problems under TRICARE Standard or 
                TRICARE Extra; and
                    (B) give a high priority to surveying health care 
                and mental health care providers in such areas.
            (5) Information from providers.--The surveys required by 
        paragraph (1) shall include questions seeking to determine from 
        health care and mental health care providers the following:
                    (A) Whether the provider is aware of the TRICARE 
                program.
                    (B) What percentage of the provider's current 
                patient population uses any form of TRICARE.
                    (C) Whether the provider accepts patients for whom 
                payment is made under the medicare program for health 
                care and mental health care services.
                    (D) If the provider accepts patients referred to in 
                subparagraph (C), whether the provider would accept 
                additional such patients who are not in the provider's 
                current patient population.
            (6) Information from beneficiaries.--The surveys required 
        by paragraph (1) shall include questions seeking information to 
        determine from TRICARE beneficiaries whether they have 
        difficulties in finding health care and mental health care 
        providers willing to provide services under TRICARE Standard or 
        TRICARE Extra.
    (b) Supervision.--
            (1) Supervising official.--The Secretary shall designate a 
        senior official of the Department of Defense to take the 
        actions necessary for achieving and maintaining participation 
        of health care and mental health care providers in TRICARE 
        Standard and TRICARE Extra throughout TRICARE in a number that 
        is adequate to ensure the viability of TRICARE Standard for 
        TRICARE beneficiaries.
            (2) Duties.--The official designated under paragraph (1) 
        shall have the following duties:
                    (A) To make recommendations to the Secretary for 
                purposes of subsection (a)(2) on appropriate benchmarks 
                for measuring the adequacy of health care and mental 
                health care providers in TRICARE Prime service areas 
                and geographic areas in the United States in which 
                TRICARE Prime is not offered.
                    (B) To educate health care and mental health care 
                providers about TRICARE Standard and TRICARE Extra.
                    (C) To encourage health care and mental health care 
                providers to accept patients under TRICARE Standard and 
                TRICARE Extra.
                    (D) To ensure that TRICARE beneficiaries have the 
                information necessary to locate TRICARE Standard and 
                TRICARE Extra providers readily.
                    (E) To recommend adjustments in TRICARE Standard 
                provider payment rates that the official considers 
                necessary to ensure adequate availability of TRICARE 
                Standard providers for TRICARE Standard beneficiaries.
    (c) GAO Review.--
            (1) Ongoing review.--The Comptroller General shall, on an 
        ongoing basis, review--
                    (A) the processes, procedures, and analysis used by 
                the Department of Defense to determine the adequacy of 
                the number of health care and mental health care 
                providers--
                            (i) that currently accept TRICARE Standard 
                        or TRICARE Extra beneficiaries as patients 
                        under TRICARE Standard in each TRICARE area as 
                        of the date of completion of the review; and
                            (ii) that would accept TRICARE Standard or 
                        TRICARE Extra beneficiaries as new patients 
                        under TRICARE Standard or TRICARE Extra, as 
                        applicable, within a reasonable time after the 
                        date of completion of the review; and
                    (B) the actions taken by the Department of Defense 
                to ensure ready access of TRICARE Standard 
                beneficiaries to health care and mental health care 
                under TRICARE Standard in each TRICARE area, including 
                any pending or resolved requests for waiver of payment 
                limits in order to improve access to health care or 
                mental health care in a specific geographic area.
            (2) Reports.--The Comptroller General shall submit to the 
        Committees on Armed Services of the Senate and the House of 
        Representatives on a bi-annual basis a report on the results of 
        the review under paragraph (1). Each report shall include the 
        following:
                    (A) An analysis of the adequacy of the surveys 
                under subsection (a).
                    (B) An identification of any impediments to 
                achieving adequacy of availability of health care and 
                mental health care under TRICARE Standard or TRICARE 
                Extra.
                    (C) An assessment of the adequacy of Department of 
                Defense education programs to inform health care and 
                mental health care providers about TRICARE Standard and 
                TRICARE Extra.
                    (D) An assessment of the adequacy of Department of 
                Defense initiatives to encourage health care and mental 
                health care providers to accept patients under TRICARE 
                Standard and TRICARE Extra.
                    (E) An assessment of the adequacy of information 
                available to TRICARE Standard beneficiaries to 
                facilitate access by such beneficiaries to health care 
                and mental health care under TRICARE Standard and 
                TRICARE Extra.
                    (F) An assessment of any need for adjustment of 
                health care and mental health care provider payment 
                rates to attract participation in TRICARE Standard by 
                appropriate numbers of health care and mental health 
                care providers.
    (d) Effective Date.--This section shall take effect on October 1, 
2007.
    (e) Repeal of Superseded Requirements and Authority.--Section 723 
of the National Defense Authorization Act for Fiscal Year 2004 (10 
U.S.C. 1073 note) is repealed, effective as of October 1, 2007.
    (f) Definitions.--In this section:
            (1) The term ``TRICARE Extra'' means the option of the 
        TRICARE program under which TRICARE Standard beneficiaries may 
        obtain discounts on cost-sharing as a result of using TRICARE 
        network providers.
            (2) The term ``TRICARE Prime'' means the managed care 
        option of the TRICARE program.
            (3) The term ``TRICARE Prime service area'' means a 
        geographic are designated by the Department of Defense in which 
        managed care support contractors develop a managed care network 
        under TRICARE Prime.
            (4) The term ``TRICARE Standard'' means the option of the 
        TRICARE program that is also known as the Civilian Health and 
        Medical Program of the Uniformed Services, as defined in 
        section 1072(4) of title 10, United States Code.
            (5) The term ``United States'' means the United States (as 
        defined in section 101(a) of title 10, United States Code), its 
        possessions (as defined in such section), and the Commonwealth 
        of Puerto Rico.

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

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

SEC. 801. SUBSTANTIAL SAVINGS UNDER MULTIYEAR CONTRACTS.

    (a) Definition in Regulations of Substantial Savings Under 
Multiyear Contracts.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        modify the regulations prescribed pursuant to subsection 
        (b)(2)(A) of section 2306b of title 10, United States Code, to 
        define the term ``substantial savings'' for purposes of 
        subsection (a)(1) of such section. Such regulations shall 
        specify that--
                    (A) savings that exceed 10 percent of the total 
                anticipated costs of carrying out a program through 
                annual contracts shall be considered to be substantial;
                    (B) savings that exceed 5 percent of the total 
                anticipated costs of carrying out a program through 
                annual contracts, but do not exceed 10 percent of such 
                costs, shall not be considered to be substantial unless 
                the Secretary determines in writing that an 
                exceptionally strong case has been made with regard to 
                the findings required by paragraphs (2) through (6) of 
                section 2306b(a) of such title; and
                    (C) savings that do not exceed 5 percent of the 
                total anticipated costs of carrying out a program 
                through annual contracts shall not be considered to be 
                substantial.
            (2) Effective date.--The modification required by paragraph 
        (1) shall apply with regard to any multiyear contract that is 
        authorized after the date that is 60 days after the date of the 
        enactment of this Act.
    (b) Report on Basis for Determination.--Section 2306b(i)(3) of 
title 10, United States Code, is amended by inserting before the period 
at the end the following: ``after the head of the agency concerned 
submits to the congressional defense committees a report on the 
specific facts supporting the determination of the head of that agency 
under subsection (a)''.
    (c) Reports on Savings Achieved.--
            (1) Reports required.--Not later than January 15 of 2008, 
        2009, and 2010, the Secretary shall submit to the congressional 
        defense committees a report on the savings achieved through the 
        use of multiyear contracts that were entered under the 
        authority of section 2306b of title 10, United States Code, and 
        the performance of which was completed in the preceding fiscal 
        year.
            (2) Elements.--Each report under paragraph (1) shall 
        specify, for each multiyear contract covered by such report--
                    (A) the savings that the Department of Defense 
                estimated it would achieve through the use of the 
                multiyear contract at the time such contract was 
                awarded; and
                    (B) the best estimate of the Department on the 
                savings actually achieved under such contract.

SEC. 802. CHANGES TO MILESTONE B CERTIFICATIONS.

    Section 2366a of title 10, United States Code, is amended--
            (1) in subsection (a), by inserting ``, after receiving a 
        business case analysis,'' after ``the milestone decision 
        authority'' in the matter preceding paragraph (1);
            (2) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively;
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Changes to Certification.--(1) The program manager for a 
major defense acquisition program that has received certification under 
subsection (a) shall immediately notify the milestone decision 
authority of any changes to the program that are--
            ``(A) inconsistent with such certification; or
            ``(B) deviate significantly from the material provided to 
        the milestone decision authority in support of such 
        certification.
    ``(2) Upon receipt of information under paragraph (1), the 
milestone decision authority may withdraw the certification concerned 
or rescind Milestone B approval (or Key Decision Point B approval in 
the case of a space program) if the milestone decision authority 
determines that such action is in the best interest of the national 
security of the United States.'';
            (4) in subsection (c), as redesignated by paragraph (1)--
                    (A) by inserting ``(1)'' before ``The 
                certification''; and
                    (B) by adding at the end the following new 
                paragraph (2):
    ``(2) Any information provided to the milestone decision authority 
pursuant to subsection (b) shall be summarized in the first Selected 
Acquisition Report submitted under section 2432 of this title after 
such information is received by the milestone decision authority.''; 
and
            (5) in subsection (e), as so redesignated, by striking 
        ``subsection (c)'' and inserting ``subsection (d)''.

SEC. 803. COMPTROLLER GENERAL REPORT ON DEPARTMENT OF DEFENSE 
              ORGANIZATION AND STRUCTURE FOR MAJOR DEFENSE ACQUISITION 
              PROGRAMS.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the congressional defense committees a report on 
potential modifications of the organization and structure of the 
Department of Defense for major defense acquisition programs.
    (b) Elements.--The report required by subsection (a) shall include 
the results of a review, conducted by the Comptroller General for 
purposes of the report, regarding the feasibility and advisability of, 
at a minimum, the following:
            (1) Establishing system commands within each military 
        department, each of which commands would be headed by a 4-star 
        general or flag officer, to whom the program managers and 
        program executive officers for major defense acquisition 
        programs would report.
            (2) Revising the acquisition process for major defense 
        acquisition programs by establishing shorter, more frequent 
        acquisition program milestones.
            (3) Requiring certifications of program status to the 
        defense acquisition executive and Congress prior to milestone 
        approval for major defense acquisition programs.
            (4) Establishing a new office (to be known as the ``Office 
        of Independent Assessment'') to provide independent cost 
        estimates and performance estimates for major defense 
        acquisition programs.
            (5) Establishing a milestone system for major defense 
        acquisition programs utilizing the following milestones (or 
        such other milestones as the Comptroller General considers 
        appropriate for purposes of the review):
                    (A) Milestone 0.--The time for the development and 
                approval of a mission need statement for a major 
                defense acquisition program.
                    (B) Milestone 1.--The time for the development and 
                approval of a capability need definition for a major 
                defense acquisition program, including development and 
                approval of a certification statement on the 
                characteristics required for the system under the 
                program and a determination of the priorities among 
                such characteristics.
                    (C) Milestone 2.--The time for technology 
                development and assessment for a major defense 
                acquisition program, including development and approval 
                of a certification statement on technology maturity of 
                elements under the program.
                    (D) Milestone 3.--The time for system development 
                and demonstration for a major defense acquisition 
                program, including development and approval of a 
                certification statement on design proof of concept.
                    (E) Milestone 4.--The time for final design, 
                production prototyping, and testing of a major defense 
                acquisition program, including development and approval 
                of a certification statement on cost, performance, and 
                schedule in advance of initiation of low-rate 
                production of the system under the program.
                    (F) Milestone 5.--The time for limited production 
                and field testing of the system under a major defense 
                acquisition program.
                    (G) Milestone 6.--The time for initiation of full-
                rate production of the system under a major defense 
                acquisition program.
            (6) Requiring the Milestone Decision Authority for a major 
        defense acquisition program to specify, at the time of 
        Milestone B approval, or Key Decision Point B approval, as 
        applicable, the period of time that will be required to deliver 
        an initial operational capability to the relevant combatant 
        commanders.
            (7) Establishing a materiel solutions process for 
        addressing identified gaps in critical warfighting 
        capabilities, under which process the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics circulates 
        among the military departments and appropriate Defense Agencies 
        a request for proposals for technologies and systems to address 
        such gaps.
            (8) Modifying the role played by chiefs of staff of the 
        Armed Forces in the requirements, resource allocation, and 
        acquisition processes.
    (c) Consultation.--In conducting the review required under 
subsection (b) for the report required by subsection (a), the 
Comptroller General shall obtain the views of the following:
            (1) Senior acquisition officials currently serving in the 
        Department of Defense.
            (2) Individuals who formerly served as senior acquisition 
        officials in the Department of Defense.
            (3) Participants in previous reviews of the organization 
        and structure of the Department of Defense for the acquisition 
        of major weapon systems, including the President's Blue Ribbon 
        Commission on Defense Management in 1986.
            (4) Other experts on the acquisition of major weapon 
        systems.
            (5) Appropriate experts in the Government Accountability 
        Office.

SEC. 804. INVESTMENT STRATEGY FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the strategies of the 
Department of Defense for the allocation of funds and other resources 
under major defense acquisition programs.
    (b) Elements.--The report required by subsection (a) shall address, 
at a minimum, Department of Defense organizations, procedures, and 
approaches for the following purposes:
            (1) To establish priorities among needed capabilities under 
        major defense acquisition programs, and to assess the resources 
        (including funds, technologies, time, and personnel) needed to 
        achieve such capabilities.
            (2) To balance cost, schedule, and requirements for major 
        defense acquisition programs to ensure the most efficient use 
        of Department of Defense resources.
            (3) To ensure that the budget, requirements, and 
        acquisition processes of the Department of Defense work in a 
        complementary manner to achieve desired results.
    (c) Role of Tri-Chair Committee in Resource Allocation.--
            (1) In general.--The report required by subsection (a) 
        shall also address the role of the committee described in 
        paragraph (2) in the resource allocation process for major 
        defense acquisition programs.
            (2) Committee.--The committee described in this paragraph 
        is a committee (to be known as the ``Tri-Chair Committee'') 
        composed of the following:
                    (A) The Under Secretary of Defense for Acquisition, 
                Technology, and Logistics, who is one of the chairs of 
                the committee.
                    (B) The Vice Chairman of the Joint Chiefs of Staff, 
                who is one of the chairs of the committee.
                    (C) The Director of Program Analysis and 
                Evaluation, who is one of the chairs of the committee.
                    (D) Any other appropriate officials of the 
                Department of Defense, as jointly agreed upon by the 
                Under Secretary and the Vice Chairman.
    (d) Recommendations.--The report required by subsection (a) shall 
include any recommendations, including recommendations for legislative 
action, that the Secretary considers appropriate to improve the 
organizations, procedures, and approaches described in the report.

SEC. 805. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS ON TOTAL 
              OWNERSHIP COST FOR MAJOR WEAPON SYSTEMS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the extent of the 
implementation of the recommendations set forth in the February 2003 
report of the Government Accountability Office entitled ``Setting 
Requirements Differently Could Reduce Weapon Systems' Total Ownership 
Costs''.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) For each recommendation described in subsection (a) 
        that has been implemented, or that the Secretary plans to 
        implement--
                    (A) a summary of all actions that have been taken 
                to implement such recommendation; and
                    (B) a schedule, with specific milestones, for 
                completing the implementation of such recommendation.
            (2) For each recommendation that the Secretary has not 
        implemented and does not plan to implement--
                    (A) the reasons for the decision not to implement 
                such recommendation; and
                    (B) a summary of any alternative actions the 
                Secretary plans to take to address the purposes 
                underlying such recommendation.
            (3) A summary of any additional actions the Secretary has 
        taken or plans to take to ensure that total ownership cost is 
        appropriately considered in the requirements process for major 
        weapon systems.

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

SEC. 821. ENHANCED COMPETITION REQUIREMENTS FOR TASK AND DELIVERY ORDER 
              CONTRACTS.

    (a) Limitation on Single Award Contracts.--Section 2304a(d) of 
title 10, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) No task or delivery order contract in an amount estimated to 
exceed $100,000,000 (including all options) may be awarded to a single 
contractor unless the head of the agency determines in writing that--
            ``(A) because of the size, scope, or method of performance 
        of the requirement, it would not be practical to award multiple 
        task or delivery order contracts;
            ``(B) the task or delivery orders expected under the 
        contract are so integrally related that only a single 
        contractor can reasonably perform the work;
            ``(C) the contract provides only for firm, fixed price task 
        orders or delivery orders for--
                    ``(i) products for which unit prices are 
                established in the contract; or
                    ``(ii) services for which prices are established in 
                the contract for the specific tasks to be performed; or
            ``(D) only one contractor is qualified and capable of 
        performing the work at a reasonable price to the government.''.
    (b) Enhanced Competition for Orders in Excess of $5,000,000.--
Section 2304c of such title is amended--
            (1) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively;
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Enhanced Competition for Orders in Excess of $5,000,000.--In 
the case of a task or delivery order in excess of $5,000,000, the 
requirement to provide all contractors a fair opportunity to be 
considered under subsection (b) is not met unless all such contractors 
are provided, at a minimum--
            ``(1) a notice of the task or delivery order that includes 
        a clear statement of the agency's requirements;
            ``(2) a reasonable period of time to provide a proposal in 
        response to the notice;
            ``(3) disclosure of the significant factors and subfactors, 
        including cost or price, that the agency expects to consider in 
        evaluating such proposals, and their relative importance;
            ``(4) in the case of an award that is to be made on a best 
        value basis, a written statement documenting the basis for the 
        award and the relative importance of quality and price or cost 
        factors; and
            ``(5) an opportunity for a post-award debriefing consistent 
        with the requirements of section 2305(b)(5) of this title.''; 
        and
            (3) by striking subsection (e), as redesignated by 
        paragraph (1), and inserting the following new subsection (e):
    ``(e) Protests.--(1) A protest is not authorized in connection with 
the issuance or proposed issuance of a task or delivery order except 
for--
            ``(A) a protest on the ground that the order increases the 
        scope, period, or maximum value of the contract under which the 
        order is issued; or
            ``(B) a protest of an order valued in excess of $5,000,000.
    ``(2) Notwithstanding section 3556 of title 31, the Comptroller 
General of the United States shall have exclusive jurisdiction of a 
protest authorized under paragraph (1)(B).''.
    (c) Effective Dates.--
            (1) Single award contracts.--The amendments made by 
        subsection (a) shall take effect on the date that is 60 days 
        after the date of the enactment of this Act, and shall apply 
        with respect to any contract awarded on or after such date.
            (2) Orders in excess of $5,000,000.--The amendments made by 
        subsection (b) shall take effect on the date that is 60 days 
        after the date of the enactment of this Act, and shall apply 
        with respect to any task or delivery order awarded on or after 
        such date.

SEC. 822. CLARIFICATION OF RULES REGARDING THE PROCUREMENT OF 
              COMMERCIAL ITEMS.

    (a) Treatment of Subsystems, Components, and Spare Parts as 
Commercial Items.--
            (1) In general.--Section 2379 of title 10, United States 
        Code, is amended--
                    (A) by striking subsection (b) and inserting the 
                following new subsection (b):
    ``(b) Treatment of Subsystems as Commercial Items.--A subsystem of 
a major weapon system shall be treated as a commercial item and 
purchased under procedures established for the procurement of 
commercial items only if--
            ``(1) the subsystem is intended for a major weapon system 
        that is being purchased, or has been purchased, under 
        procedures established for the procurement of commercial items 
        in accordance with the requirements of subsection (a);
            ``(2) the Secretary of Defense determines that--
                    ``(A) the subsystem is a commercial item, as 
                defined in section 4(12) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 403(12)); and
                    ``(B) the treatment of the subsystem as a 
                commercial item is necessary to meet national security 
                objectives; or
            ``(3) the contractor demonstrates that it has sold, leased, 
        or licensed the subsystem or an item that is the same as the 
        subsystem, but for modifications described in subparagraphs (B) 
        and (C) of section 4(12) of the Office of Federal Procurement 
        Policy Act, in significant quantities to the general public.'';
                    (B) by redesignating subsections (c) and (d) as 
                subsections (e) and (f), respectively; and
                    (C) by inserting after subsection (b) the following 
                new subsections (c) and (d):
    ``(c) Treatment of Components and Spare Parts as Commercial 
Items.--A component or spare part for a major weapon system may be 
treated as a commercial item, and purchased under procedures 
established for the procurement of commercial items, only if--
            ``(1) the component or spare part is intended for--
                    ``(A) a major weapon system that is being 
                purchased, or has been purchased, under procedures 
                established for the procurement of commercial items in 
                accordance with the requirements of subsection (a); or
                    ``(B) a subsystem of a major weapon system that is 
                being purchased, or has been purchased, under 
                procedures established for the procurement of 
                commercial items in accordance with the requirements of 
                subsection (b); or
            ``(2) the contractor demonstrates that it has sold, leased, 
        or licensed the component or spare part, or an item that is the 
        same as the component or spare part, but for modifications 
        described in subparagraphs (B) and (C) of section 4(12) of the 
        Office of Federal Procurement Policy Act, in significant 
        quantities to the general public.
    ``(d) Price Information.--In the case of any major weapon system, 
subsystem, component, or spare part purchased under procedures 
established for the procurement of commercial items under the authority 
of this section, the contractor shall provide data other than certified 
cost or pricing data, including information on prices at which the same 
item or similar items have previously been sold to the general public, 
that is adequate for evaluating, through price analysis, the 
reasonableness of the price of the contract, subcontract, or 
modification of the contract or subcontract pursuant to which such 
major weapon system, subsystem, component or spare part, as the case 
may be, will be purchased.''.
            (2) Conforming amendment to technical data provision.--
        Section 2321(f)(2) of such title is amended by striking 
        ``(whether or not under a contract for commercial items)'' and 
        inserting ``(other than technical data for a subsystem, 
        component, or spare part that is determined to be a commercial 
        item in accordance with the requirements of section 2379 of 
        this title)''.
    (b) Sales of Commercial Items to Nongovernmental Entities.--Not 
later than 180 days after the date of the enactment of this Act, the 
Secretary of Defense shall modify the regulations of the Department of 
Defense on the procurement of commercial items in order to clarify that 
the terms ``general public'' and ``nongovernmental entities'' in such 
regulations do not include the following:
            (1) The Federal Government or a State, local, or foreign 
        government.
            (2) A contractor or subcontractor acting on behalf of the 
        Federal Government or a State, local, or foreign government.
    (c) Harmonization of Thresholds for Cost or Pricing Data.--Section 
2306a(b)(3)(A) of title 10, United States Code, is amended by striking 
``$500,000'' and inserting ``the amount specified in subsection 
(a)(1)(A)(i), as adjusted from time to time under subsection (a)(7),''.

SEC. 823. CLARIFICATION OF RULES REGARDING THE PROCUREMENT OF 
              COMMERCIAL SERVICES.

    Notwithstanding section 8002(d) of the Federal Acquisition 
Streamlining Act of 1994 (41 U.S.C. 264 note), the Secretary of Defense 
shall modify the regulations of the Department of Defense on 
procurements for or on behalf of the Department of Defense in order to 
prohibit the use of time and materials contracts or labor-hour 
contracts to purchase as commercial items any category of commercial 
services other than the following:
            (1) Commercial services procured for support of a 
        commercial item, as described in section 4(12)(E) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12)(E)).
            (2) Emergency repair services.

SEC. 824. MODIFICATION OF COMPETITION REQUIREMENTS FOR PURCHASES FROM 
              FEDERAL PRISON INDUSTRIES.

    (a) Modification of Competition Requirements.--
            (1) In general.--Section 2410n of title 10, United States 
        Code, is amended by striking subsections (a) and (b) and 
        inserting the following new subsections (a) and (b):
    ``(a) Products for Which Federal Prison Industries Does Not Have 
Significant Market Share.--(1) Before purchasing a product listed in 
the latest edition of the Federal Prison Industries catalog under 
section 4124(d) of title 18 for which Federal Prison Industries does 
not have a significant market share, the Secretary of Defense shall 
conduct market research to determine whether the product is comparable 
to products available from the private sector that best meet the needs 
of the Department in terms of price, quality, and time of delivery.
    ``(2) If the Secretary determines that a Federal Prison Industries 
product described in paragraph (1) is not comparable in price, quality, 
or time of delivery to products of the private sector that best meets 
the needs of the Department in terms of price, quality, and time of 
delivery, the Secretary shall use competitive procedures for the 
procurement of the product, or shall make an individual purchase under 
a multiple award contract in accordance with the competition 
requirements applicable to such contract. In conducting such a 
competition, the Secretary shall consider a timely offer from Federal 
Prison Industries.
    ``(b) Products for Which Federal Prison Industries Has Significant 
Market Share.--(1) The Secretary of Defense may purchase a product 
listed in the latest edition of the Federal Prison Industries catalog 
for which Federal Prison Industries has a significant market share only 
if the Secretary uses competitive procedures for the procurement of the 
product or makes an individual purchase under a multiple award contract 
in accordance with the competition requirements applicable to such 
contract. In conducting such a competition, the Secretary shall 
consider a timely offer from Federal Prison Industries.
    ``(2) For purposes of this subsection, Federal Prison Industries 
shall be treated as having a significant share of the market for a 
product if the Secretary, in consultation with the Administrator of 
Federal Procurement Policy, determines that the Federal Prison 
Industries' share of the Department of Defense market for the category 
of products including such product is greater than 5 percent.''.
            (2) Effective date.--The amendment made by subsection (a) 
        shall take effect 60 days after the date of the enactment of 
        this Act.
    (b) List of Products for Which Federal Prison Industries Has 
Significant Market Share.--
            (1) Initial list.--Not later than 60 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        publish a list of product categories for which Federal Prison 
        Industries' share of the Department of Defense market is 
        greater than 5 percent, based on the most recent fiscal year 
        for which data is available.
            (2) Modification.--The Secretary may modify the list 
        published under paragraph (1) at any time if the Secretary 
        determines that new data require adding a product category to 
        the list or omitting a product category from the list.
            (3) Consultation.--The Secretary shall carry out this 
        subsection in consultation with the Administrator for Federal 
        Procurement Policy.

SEC. 825. FIVE-YEAR EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN 
              PROTOTYPE PROJECTS.

    Section 845(i) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended by striking ``September 30, 
2008'' and inserting ``September 30, 2013''.

SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR ELECTRICITY FROM 
              RENEWABLE ENERGY SOURCES.

    (a) Multiyear Procurement Authorized.--Chapter 141 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2410q. Multiyear procurement authority: purchase of electricity 
              from renewable energy sources
    ``(a) Multiyear Contracts Authorized.--Subject to subsection (b), 
the Secretary of Defense may enter into contracts for a period not to 
exceed 10 years for the purchase of electricity from sources of 
renewable energy, as that term is defined in section 203(b)(2) of the 
Energy Policy Act of 2005 (42 U.S.C. 15852(b)(2)).
    ``(b) Limitations on Contracts for Periods in Excess of Five 
Years.--The Secretary may exercise the authority in subsection (a) to 
enter a contract for a period in excess of five years only if the 
Secretary determines, on the basis of a business case prepared by the 
Department of Defense that--
            ``(1) the proposed purchase of electricity under such 
        contract is cost effective for the Department of Defense; and
            ``(2) it would not be possible to purchase electricity from 
        the source in an economical manner without the use of a 
        contract for a period in excess of five years.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 141 of such title is amended by adding at the end the following 
new item:

``2410q. Multiyear procurement authority: purchase of electricity from 
                            renewable energy sources.''.

             Subtitle C--Acquisition Policy and Management

SEC. 841. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

    (a) Advisors.--Section 181 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Advisors.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics and the Under Secretary of Defense 
(Comptroller) shall serve as advisors to the Council on matters within 
their authority and expertise.''.
    (b) Consultation.--Section 2433(e)(2) of such title is amended by 
inserting ``, after consultation with the Joint Requirements Oversight 
Council regarding program requirements,'' after ``Secretary of 
Defense'' in the matter preceding subparagraph (A).

SEC. 842. MANAGEMENT STRUCTURE FOR THE PROCUREMENT OF CONTRACT 
              SERVICES.

    (a) Authority To Establish Contract Support Acquisition Centers.--
Subsection (b) of section 2330 of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(4) Each senior official responsible for the management of 
acquisition of contract services is authorized to establish a center 
(to be known as a `Contract Support Acquisition Center') to act as 
executive agent for the acquisition of contract services. Any center so 
established shall be subject to the provisions of subsection (c).''.
    (b) Direction, Staff, and Support.--Such section is further 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Direction, Staff, and Support of Contract Support Acquisition 
Centers.--(1) The Contract Support Acquisition Center established by a 
senior official responsible for the management of acquisition of 
contract services under subsection (b)(4) shall be subject to the 
direction, supervision, and oversight of such senior official.
    ``(2) The Secretary of Defense or the Secretary of the military 
department concerned may transfer to a Contract Support Acquisition 
Center any personnel under the authority of such Secretary whose 
principal duty is the acquisition of contract services.
    ``(3)(A) Except as provided in subparagraph (E), the Secretary of 
Defense may accept from the head of a department or agency outside the 
Department of Defense a transfer to any Contract Support Acquisition 
Center under subsection (b)(4) 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 is available before such transfer, more than 50 percent 
of the contract services acquired by such organizational unit (as 
determined on the basis of cost) were acquired on behalf of the 
Department of Defense.
    ``(B) The head of a department or agency outside the Department of 
Defense may transfer in accordance with this paragraph an 
organizational unit that is authorized to be accepted under 
subparagraph (A).
    ``(C) A transfer under this paragraph may be made and accepted only 
pursuant to a memorandum of understanding entered into by the head of 
the department or agency making the transfer and the Secretary of 
Defense.
    ``(D) A transfer of an organizational unit under this paragraph 
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.
    ``(E) This paragraph does not authorize a transfer of the multiple 
award schedule program of the General Services Administration as 
described in section 2302(2)(C) of this title.''.

SEC. 843. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCUREMENT OF 
              CONTRACT SERVICES.

    (a) Specification of Amounts Requested.--The budget justification 
materials submitted to Congress in support of the budget of the 
Department of Defense for any fiscal year after fiscal year 2008 shall 
identify clearly and separately the amounts requested in each budget 
account for the procurement of contract services.
    (b) Contract Services Defined.--In this section, the term 
``contract services''--
            (1) means services from contractors; but
            (2) excludes services relating to research and development 
        and services relating to military construction.

SEC. 844. DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND.

    (a) Purpose.--The purpose of this section is to ensure that the 
Department of Defense acquisition workforce has the capacity, in both 
personnel and skills, needed to properly perform its mission, provide 
appropriate oversight of contractor performance, and ensure that the 
Department receives the best value for the expenditure of public 
resources.
    (b) Department of Defense Acquisition Workforce Development Fund.--
            (1) Establishment.--The Secretary of Defense shall 
        establish a fund to be known as the ``Department of Defense 
        Acquisition Workforce Fund'' (in this section referred to as 
        the ``Fund'') to provide funds for the recruitment, training, 
        and retention of acquisition personnel of the Department of 
        Defense for the purpose of this section.
            (2) Management.--The Fund shall be managed by a senior 
        official of the Department of Defense designated by the 
        Secretary for that purpose.
    (c) Elements.--
            (1) In general.--The Fund shall consist of amounts as 
        follows:
                    (A) Amounts credited to the Fund under paragraph 
                (2).
                    (B) Any other amounts appropriated to, credited to, 
                or deposited into the Fund by law.
            (2) Credits to the fund.--(A) There shall be credited to 
        the Fund an amount equal to the applicable percentage for a 
        fiscal year of all amounts expended by the Department of 
        Defense in such fiscal year for contract services, other than 
        services relating to research and development and services 
        relating to military construction.
            (B) Not later than 30 days after the end of the first 
        fiscal year quarter of fiscal year 2008, and 30 days after the 
        end of each fiscal year quarter thereafter, the head of each 
        military department and Defense Agency shall remit to the 
        Secretary of Defense an amount equal to the applicable 
        percentage for such fiscal year of the amount expended by such 
        military department or Defense Agency, as the case may be, 
        during such fiscal year quarter for services covered by 
        subparagraph (A). Any amount so remitted shall be credited to 
        the Fund under subparagraph (A).
            (C) For purposes of this paragraph, the applicable 
        percentage for a fiscal year is a percentage as follows:
                    (i) For fiscal year 2008, 0.5 percent.
                    (ii) For fiscal year 2009, 1 percent.
                    (iii) For fiscal year 2010, 1.5 percent.
                    (iv) For any fiscal year after fiscal year 2010, 2 
                percent.
    (d) Availability of Funds.--
            (1) In general.--Subject to the provisions of this 
        subsection, amounts in the Fund shall be available to the 
        Secretary of Defense for expenditure, or for transfer to a 
        military department or Defense Agency, for the recruitment, 
        training, and retention of acquisition personnel of the 
        Department of Defense for the purpose of this section, 
        including for the provision of training and retention 
        incentives to the acquisition workforce of the Department as of 
        the date of the enactment of this Act.
            (2) Limitation on payments to or for contractors.--Amounts 
        in the Fund shall not be available for payments to contractors 
        or contractor employees, other than for the purpose of 
        providing training to Department of Defense employees.
            (3) Prohibition on payment of base salary of current 
        employees.--Amounts in the Fund may not be used to pay the base 
        salary of any person who is an employee of the Department as of 
        the date of the enactment of this Act.
            (4) Duration of availability.--Amounts credited to the Fund 
        under subsection (c)(2) shall remain available for expenditure 
        in the fiscal year for which credited and the two succeeding 
        fiscal years.
    (e) Annual Report.--Not later than 60 days after the end of each 
fiscal year beginning with fiscal year 2008, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
operation of the Fund during such fiscal year. Each report shall 
include, for the fiscal year covered by such report, the following:
            (1) A statement of the amounts remitted to the Secretary 
        for crediting to the Fund for such fiscal year by each military 
        department and Defense Agency, and a statement of the amounts 
        credited to the Fund for such fiscal year.
            (2) A description of the expenditures made from the Fund 
        (including expenditures following a transfer of amounts in the 
        Fund to a military department or Defense Agency) in such fiscal 
        year, including the purpose of such expenditures.
            (3) A description and assessment of improvements in the 
        Department of Defense acquisition workforce resulting from such 
        expenditures.
            (4) A statement of the balance remaining in the Fund at the 
        end of such fiscal year.
    (f) Defense Agency Defined.--In this section, the term ``Defense 
Agency'' has the meaning given that term in section 101(a) of title 10, 
United States Code.
    (g) Expedited Hiring Authority.--
            (1) In general.--For purposes of sections 3304, 5333, and 
        5753 of title 5, United States Code, the Secretary of Defense 
        may--
                    (A) designate any category of acquisition positions 
                within the Department of Defense as shortage category 
                positions; and
                    (B) utilize the authorities in such sections to 
                recruit and appoint highly qualified persons directly 
                to positions so designated.
            (2) Sunset.--The Secretary may not appoint a person to a 
        position of employment under this subsection after September 
        30, 2012.

SEC. 845. INVENTORIES AND REVIEWS OF CONTRACTS FOR SERVICES BASED ON 
              COST OR TIME OF PERFORMANCE.

    (a) Preparation of Lists of Activities Under Contracts for 
Services.--
            (1) Preparation of lists.--Not later than the end of the 
        third quarter of each fiscal year beginning with fiscal year 
        2008, the Secretary of each military department and the head of 
        each Defense Agency shall submit to the Secretary of Defense a 
        list of the activities performed during the preceding fiscal 
        year pursuant to contracts for services for or on behalf of 
        such military department or Defense Agency, as the case may be, 
        under which the contractor is paid on the basis of the cost or 
        time of performance, rather than specific tasks performed or 
        results achieved.
            (2) List elements.--The entry for an activity on a list 
        under paragraph (1) shall include, for the fiscal year covered 
        by such entry, the following:
                    (A) The fiscal year for which the activity first 
                appeared on a list under this section.
                    (B) The number of full-time contractor employees 
                (or its equivalent) paid for the performance of the 
                activity.
                    (C) A determination whether the contract pursuant 
                to which the activity is performed is a personal 
                services contract.
                    (D) The name of the Federal official responsible 
                for the management of the contract pursuant to which 
                the activity is performed.
                    (E) With respect to a list for a fiscal year after 
                fiscal year 2008, information on plans and written 
                determinations made pursuant to subsection (c)(2).
    (b) Public Availability of Lists.--Not later than 30 days after the 
date on which lists are required to be submitted to the Secretary of 
Defense under subsection (a), the Secretary shall--
            (1) transmit to the congressional defense committees a copy 
        of the lists so submitted to the Secretary;
            (2) make such lists available to the public; and
            (3) publish in the Federal Register a notice that such 
        lists are available to the public.
    (c) Review and Planning Requirements.--
            (1) Review of lists.--Within a reasonable time after the 
        date on which a notice of the public availability of a list is 
        published under subsection (b)(3), the Secretary of the 
        military department or head of the Defense Agency concerned 
        shall--
                    (A) review the contracts and activities included on 
                the list;
                    (B) ensure that--
                            (i) each contract on the list that is a 
                        personal services contract has been entered 
                        into, and is being performed, in accordance 
                        with applicable statutory and regulatory 
                        requirements;
                            (ii) the activities on the list do not 
                        include any inherently governmental functions; 
                        and
                            (iii) to the maximum extent practicable, 
                        the activities on the list do not include any 
                        functions closely associated with inherently 
                        governmental functions; and
                    (C) for each activity on the list, either--
                            (i) develop a plan to convert the activity 
                        to performance by Federal employees, convert 
                        the contract to a performance-based contract, 
                        or terminate the activity; or
                            (ii) make a written determination that it 
                        is not practicable for the military department 
                        or Defense Agency, as the case may be, to take 
                        any of the actions otherwise required under 
                        clause (i).
            (2) Elements of determination.--A written determination 
        pursuant to subparagraph (B)(ii) shall be accompanied by--
                    (A) a statement of the basis for the determination; 
                and
                    (B) a description of the resources that will be 
                made available to ensure adequate planning, management, 
                and oversight for each contract covered by the 
                determination.
    (d) Challenges to Lists.--
            (1) In general.--An interested party may submit to the 
        Secretary of the military department or head of the Defense 
        Agency concerned a challenge to the omission of a particular 
        activity from, or the inclusion of a particular activity on, a 
        list made available to the public under subsection (b).
            (2) Interested party defined.--In this subsection, the term 
        ``interested party'', with respect to an activity referred to 
        in subsection (a), means--
                    (A) the contractor performing the activity;
                    (B) an officer or employee of an organization 
                within the military department or Defense Agency 
                concerned that is responsible for the performance of 
                the activity; or
                    (C) the head of any labor organization referred to 
                in section 7103(a)(4) of title 5, United States Code, 
                that includes within its membership officers or 
                employees or an organization described in subparagraph 
                (B).
            (3) Deadline for challenge.--A challenge to a list shall be 
        submitted under paragraph (1) not later than 30 days after the 
        date of the publication of the notice of public availability of 
        the list under subsection (b)(3).
            (4) Resolution of challenge.--Not later than 30 days of the 
        receipt by the Secretary of a military department or head of a 
        Defense Agency of a challenge to a list under this subsection, 
        an official designated by the Secretary of the military 
        department or the head of the Defense Agency, as the case may 
        be, shall--
                    (A) determine whether or not the challenge is 
                valid; and
                    (B) submit to the interested party concerned a 
                written notification of the determination, together 
                with a discussion of the rationale for the 
                determination.
            (5) Action following determination of valid challenge.--If 
        the Secretary of a military department or head of a Defense 
        Agency determines under paragraph (4)(A) that a challenge under 
        this subsection to a list under this section is valid, such 
        official shall--
                    (A) notify the Secretary of Defense of the 
                determination; and
                    (B) adjust the next list submitted by such official 
                under subsection (a) after the date of the 
                determination to reflect the resolution of the 
                challenge.
    (e) Rules of Construction.--
            (1) No authorization of performance of personal services.--
        Nothing in this section shall be construed to authorize the 
        performance of personal services by a contractor except where 
        expressly authorized by a provision of statute other than this 
        section.
            (2) No public-private competition for conversion of 
        performance of certain functions.--No public-private 
        competition may be required under this section, Office of 
        Management and Budget Circular A-76, or any other provision of 
        law or regulation before a function closely associated with 
        inherently governmental functions is converted to performance 
        by Federal employees.
    (f) Definitions.--In this section:
            (1) The term ``Defense Agency'' has the meaning given that 
        term in section 101(a) of title 10, United States Code.
            (2) The term ``function closely associated with inherently 
        governmental functions'' has the meaning given that term in 
        section 2383(b)(3) of title 10, United States Code.
            (3) The term ``inherently governmental functions'' has the 
        meaning given that term in section 2383(b)(2) of title 10, 
        United States Code.
            (4) The term ``personal services contract'' means a 
        contract under which, as a result of its terms or conditions or 
        the manner of its administration during performance, contractor 
        personnel are subject to the relatively continuous supervision 
        and control of one or more Government officers or employees, 
        except that the giving of an order for a specific article or 
        service, with the right to reject the finished product or 
        result, is not the type of supervision or control that makes a 
        contract a personal services contract.

SEC. 846. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
              DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE AGENCIES.

    (a) Limitation on Procurements on Behalf of Department of 
Defense.--Except as provided in subsection (b), no official of the 
Department of Defense may place an order, make a purchase, or otherwise 
procure property or services for the Department of Defense in an amount 
in excess of $100,000 through a non-defense agency in any fiscal year 
if--
            (1) the head of the non-defense agency has not certified 
        that the non-defense agency will comply with defense 
        procurement requirements during that fiscal year;
            (2) in the case of a covered non-defense agency that has 
        been determined under this section to be not compliant with 
        defense procurement requirements, such determination has not 
        been terminated in accordance with subsection (c); or
            (3) in the case of a covered non-defense agency for which a 
        memorandum of understanding is required by subsection (e)(4), 
        the Inspector General of the Department of Defense and the 
        Inspector General of the non-defense agency have not yet 
        entered into such a memorandum of understanding.
    (b) Exception for Procurements of Necessary Property and 
Services.--
            (1) In general.--The limitation in subsection (a) shall not 
        apply to the procurement of property and services on behalf of 
        the Department of Defense by a non-defense agency during any 
        fiscal year for which there is in effect a written 
        determination of the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics that it is necessary in 
        the interest of the Department of Defense to procure property 
        and services through the non-defense agency during such fiscal 
        year.
            (2) Scope of particular exception.--A written determination 
        with respect to a non-defense agency under paragraph (1) shall 
        apply to any category of procurements through the non-defense 
        agency that is specified in the determination.
    (c) Termination of Applicability of Certain Limitation.--In the 
event the limitation under subsection (a)(2) applies to a covered non-
defense agency, the limitation shall cease to apply to the non-defense 
agency on the date on which the Inspector General of the Department of 
Defense and the Inspector General of the non-defense agency jointly--
            (1) determine that the non-defense agency is compliant with 
        defense procurement requirements; and
            (2) notify the Secretary of Defense of that determination.
    (d) Compliance With Defense Procurement Requirements.--For the 
purposes of this section, a non-defense agency is compliant with 
defense procurement requirements if the procurement policies, 
procedures, and internal controls of the non-defense agency applicable 
to the procurement of products and services on behalf of the Department 
of Defense, and the manner in which they are administered, are adequate 
to ensure the compliance of the non-defense agency with the 
requirements of laws and regulations (including applicable Department 
of Defense financial management regulations) that apply to procurements 
of property and services made directly by the Department of Defense.
    (e) Inspectors General Reviews and Determinations.--
            (1) In general.--For each covered non-defense agency, the 
        Inspector General of the Department of Defense and the 
        Inspector General of such non-defense agency shall, not later 
        than the date specified in paragraph (2), jointly--
                    (A) review--
                            (i) the procurement policies, procedures, 
                        and internal controls of such 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 such policies, 
                        procedures, and internal controls; and
                    (B) determine in writing whether such non-defense 
                agency is or is not compliant with defense procurement 
                requirements.
            (2) Deadline for reviews and determinations.--The reviews 
        and determinations required by paragraph (1) shall take place 
        as follows:
                    (A) In the case of the General Services 
                Administration, by not later than March 15, 2010.
                    (B) In the case of each of the Department of the 
                Treasury, the Department of the Interior, and the 
                National Aeronautics and Space Administration, by not 
                later than March 15, 2011.
                    (C) In the case of each of the Department of 
                Veterans Affairs and the National Institutes of Health, 
                by not later than March 15, 2012.
            (3) Separate reviews and determinations.--The Inspector 
        General of the Department of Defense and the Inspector General 
        of a covered non-defense agency may by joint agreement conduct 
        separate reviews of the procurement of property and services on 
        behalf of the Department of Defense that are conducted by 
        separate business units, or under separate governmentwide 
        acquisition contracts, of the non-defense agency. If such 
        separate reviews are conducted, the Inspectors General shall 
        make a separate determination under paragraph (1)(B) with 
        respect to each such separate review.
            (4) Memoranda of understanding for reviews and 
        determinations.--Not later than one year before a review and 
        determination is required under this subsection with respect to 
        a covered non-defense agency, the Inspector General of the 
        Department of Defense and the Inspector General of the covered 
        non-defense agency shall enter into a memorandum of 
        understanding with each other to carry out such review and 
        determination.
    (f) Treatment of Procurements for Fiscal Year Purposes.--For the 
purposes of this section, a procurement shall be treated as being made 
during a particular fiscal year to the extent that funds are obligated 
by the Department of Defense for the procurement in that fiscal year.
    (g) Resolution of Disagreements.--If the Inspector General of the 
Department of Defense and the Inspector General of a covered non-
defense agency are unable to agree on a joint determination under 
subsection (c) or (e), a determination by the Inspector General of the 
Department of Defense under such subsection shall be conclusive for the 
purposes of this section.
    (h) Definitions.--In this section:
            (1) The term ``covered non-defense agency'' means each of 
        the following:
                    (A) The General Services Administration.
                    (B) The Department of the Treasury.
                    (C) The Department of the Interior.
                    (D) The National Aeronautics and Space 
                Administration.
                    (E) The Department of Veterans Affairs.
                    (F) The National Institutes of Health.
            (2) The term ``governmentwide acquisition contract'', with 
        respect to a covered 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.

          Subtitle D--Department of Defense Contractor Matters

SEC. 861. PROTECTION FOR CONTRACTOR EMPLOYEES FROM REPRISAL FOR 
              DISCLOSURE OF CERTAIN INFORMATION.

    (a) Increased Protection From Reprisal.--Subsection (a) of section 
2409 of title 10, United States Code, is amended--
            (1) by striking ``disclosing to a Member of Congress or an 
        authorized official of an agency or the Department of Justice'' 
        and inserting ``disclosing to a Member of Congress, a 
        representative of a committee of Congress, an Inspector 
        General, the Government Accountability Office, a Department of 
        Defense employee responsible for contract oversight or 
        management, or an authorized official of an agency or the 
        Department of Justice, including in the case of a disclosure 
        made in the ordinary course of an employee's duties,''; and
            (2) by striking ``information relating to a substantial 
        violation of law related to a contract'' and inserting 
        ``information that the employee reasonably believes is evidence 
        of gross mismanagement of a Department of Defense contract, a 
        gross waste of Department of Defense funds, a substantial and 
        specific danger to public health or safety, or a violation of 
        law related to a Department of Defense contract''.
    (b) Acceleration of Schedule for Denying Relief or Providing 
Remedy.--Subsection (c) of such section is amended--
            (1) in paragraph (1)--
                    (A) by inserting after ``(1)'' the following: ``Not 
                later than 90 days after receiving an Inspector General 
                report pursuant to subsection (b), the head of the 
                agency concerned shall determine whether the contractor 
                concerned has subjected the complainant to a reprisal 
                prohibited under subsection (a).''; and
                    (B) by adding at the end the following new 
                subparagraphs:
            ``(D) In the event the disclosure relates to a cost-plus 
        contract, prohibit the contractor from receiving one or more 
        award fee payments to which the contractor would otherwise be 
        eligible until such time as the contractor takes the actions 
        ordered by the head of the agency pursuant to subparagraphs (A) 
        through (C).
            ``(E) Take the reprisal into consideration in any past 
        performance evaluation of the contractor for the purpose of a 
        contract award.'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3)(A) In the case of a disclosure that relates to a contract 
covered under subsection (f), not later than 90 days after receipt of a 
written determination under paragraph (1), a complainant who is 
aggrieved by the determination or by an action that the agency head has 
taken or failed to take pursuant to such determination may bring an 
action at law or equity for de novo review to seek compensatory damages 
and other relief available under this section in the appropriate 
district court of the United States, which shall have jurisdiction over 
such an action without regard to the amount in controversy. Such an 
action shall, at the request of either party to the action, be tried by 
the court with a jury.
    ``(B) In the event that a determination by an agency head pursuant 
to paragraph (1) has not been made within 15 months after a complaint 
is submitted under subsection (b), and such delay is not shown to be 
due to the bad faith of the complainant, the complainant shall be 
deemed to have exhausted the complainant's administrative remedies with 
respect to the complaint and may bring an action at law or equity 
described under subparagraph (A).''.
    (c) Legal Burden of Proof.--Such section is further amended--
            (1) by redesignating subsection (e) as subsection (g); and
            (2) by inserting after subsection (d) the following new 
        subsection:
    ``(e) Legal Burden of Proof.--The legal burdens of proof specified 
in section 1221(e) of title 5 shall be controlling for the purposes of 
any investigation conducted by an inspector general, decision by the 
head of an agency, or hearing to determine whether discrimination 
prohibited under this section has occurred.''.
    (d) Requirement To Notify Employees of Rights Related to Protection 
From Reprisal.--Such section, as amended by subsection (c), is further 
amended by inserting after subsection (e) the following new subsection:
    ``(f) Notice of Rights Related to Protection From Reprisal.--
            ``(1) In general.--Each Department of Defense contract in 
        excess of $5,000,000, other than a contract for the purchase of 
        commercial items, shall include a clause requiring the 
        contractor to ensure that all employees of the contractor who 
        are working on Department of Defense contracts are notified 
        of--
                    ``(A) their rights under this section;
                    ``(B) the fact that the restrictions imposed by any 
                employee contract, employee agreement, or non-
                disclosure agreement may not supersede, conflict with, 
                or otherwise alter the employee rights provided for 
                under this section; and
                    ``(C) the telephone number for the whistleblower 
                hotline of the Inspector General of the Department of 
                Defense.
            ``(2) Form of notice.--The notice required by paragraph (1) 
        shall be made by posting the required information at a 
        prominent place in each workplace where employees working on 
        the contract regularly work.''.

SEC. 862. 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, as amended by section 826 of this Act, is further amended 
        by adding at the end the following new section:
``Sec. 2410r. 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.--Except as provided in subsection (c), 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 who served--
                            ``(i) in an Executive Schedule position 
                        under subchapter II of chapter 53 of title 5;
                            ``(ii) in a position in the Senior 
                        Executive Service under subchapter VIII of 
                        chapter 53 of title 5;
                            ``(iii) in a general or flag officer 
                        position compensated at a rate of pay for grade 
                        0-7 or above under section 201 of title 37; or
                            ``(iv) as a program manager, deputy program 
                        manager, procuring contracting officer, 
                        administrative contracting officer, source 
                        selection authority, member of the source 
                        selection evaluation board, or chief of a 
                        financial or technical evaluation team for a 
                        contract with a value in excess of $10,000,000; 
                        and
                    ``(B) during the preceding calendar year was 
                provided compensation by the contractor, if such 
                compensation was first provided by the contractor not 
                more than two years after such officer, employee, or 
                member left service in the Department of Defense; 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.
    ``(c) Duplicate Information Not Required.--An annual report 
submitted by a contractor pursuant to subsection (b) need not provide 
information with respect to any former officer or employee of the 
Department of Defense or former or retired member of the armed forces 
if such information has already been provided in a previous annual 
report filed by such contractor under this section.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title, as so amended, is 
        further amended by adding at the end the following new item:

``2410r. 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. 863. REPORT ON CONTRACTOR ETHICS PROGRAMS OF MAJOR DEFENSE 
              CONTRACTORS.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the internal ethics programs of 
major defense contractors.
    (b) Elements.--The report required by subsection (a) shall address, 
at a minimum--
            (1) the extent to which major defense contractors have 
        internal ethics programs in place;
            (2) the extent to which the ethics programs described in 
        paragraph (1) include--
                    (A) the availability of internal mechanisms, such 
                as hotlines, for contractor employees to report conduct 
                that may violate applicable requirements of law or 
                regulation;
                    (B) notification to contractor employees of the 
                availability of external mechanisms, such as the 
                hotline of the Inspector General of the Department of 
                Defense, for the reporting of conduct that may violate 
                applicable requirements of law or regulation;
                    (C) notification to contractor employees of their 
                right to be free from reprisal for disclosing a 
                substantial violation of law related to a contract, in 
                accordance with section 2409 of title 10, United States 
                Code;
                    (D) ethics training programs for contractor 
                officers and employees;
                    (E) internal audit or review programs to identify 
                and address conduct that may violate applicable 
                requirements of law or regulation;
                    (F) self-reporting requirements, under which 
                contractors report conduct that may violate applicable 
                requirements of law or regulation to appropriate 
                government officials;
                    (G) disciplinary action for contractor employees 
                whose conduct is determined to have violated applicable 
                requirements of law or regulation; and
                    (H) appropriate management oversight to ensure the 
                successful implementation of such ethics programs;
            (3) the extent to which the Department of Defense monitors 
        or approves the ethics programs of major defense contractors; 
        and
            (4) the advantages and disadvantages of legislation 
        requiring that defense contractors develop internal ethics 
        programs and requiring that specific elements be included in 
        such ethics programs.
    (c) Access to Information.--In accordance with the contract clause 
required pursuant to section 2313(c) of title 10, United States Code, 
each major defense contractor shall provide the Comptroller General 
access to information requested by the Comptroller General that is 
within the scope of the report required by this section.
    (d) Major Defense Contractor Defined.--In this section, the term 
``major defense contractor'' means any company that received more than 
$500,000,000 in contract awards from the Department of Defense during 
fiscal year 2006.

SEC. 864. REPORT ON DEPARTMENT OF DEFENSE CONTRACTING WITH CONTRACTORS 
              OR SUBCONTRACTORS EMPLOYING MEMBERS OF THE SELECTED 
              RESERVE.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
on contracting with the Department of Defense by actual and potential 
contractors and subcontractors of the Department who employ members of 
the Selected Reserve of the reserve components of the Armed Forces.
    (b) Elements.--The study required by subsection (a) shall address 
the following:
            (1) The extent to which actual and potential contractors 
        and subcontractors of the Department, including small 
        businesses, employ members of the Selected Reserve.
            (2) The extent to which actual and potential contractors 
        and subcontractors of the Department have been or are likely to 
        be disadvantaged in the performance of contracts with the 
        Department, or in competition for new contracts with the 
        Department, when employees who are such members are mobilized 
        as part of a United States military operation overseas.
            (3) Any actions that, in the view of the Secretary, should 
        be taken to address any such disadvantage, including--
                    (A) the extension of additional time for the 
                performance of contracts to contractors and 
                subcontractors of the Department who employ members of 
                the Selected Reserve who are mobilized as part of a 
                United States military operation overseas; and
                    (B) the provision of assistance in forming 
                contracting relationships with other entities to 
                ameliorate the temporary loss of qualified personnel.
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress a report 
on the study required by this section. The report shall set forth the 
findings and recommendations of the Secretary as a result of the study.
    (d) Repeal of Superseded Authority.--Section 819 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3385; 10 U.S.C. 2305 note) is repealed.

                       Subtitle E--Other Matters

SEC. 871. CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS IN AREAS OF 
              COMBAT OPERATIONS.

    (a) Regulations on Contractors Performing Private Security 
Functions.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        prescribe regulations on the selection, training, equipping, 
        and conduct of personnel performing private security functions 
        under a covered contract or covered subcontract in an area of 
        combat operations.
            (2) Elements.--The regulations prescribed under subsection 
        (a) shall, at a minimum, establish--
                    (A) a process for registering, processing, and 
                accounting for personnel performing private security 
                functions in an area of combat operations;
                    (B) a process for authorizing and accounting for 
                weapons to be carried by, or available to be used by, 
                personnel performing private security functions in an 
                area of combat operations;
                    (C) a process for the reporting of all incidents in 
                which--
                            (i) a weapon is discharged by personnel 
                        performing private security functions in an 
                        area of combat operations; or
                            (ii) personnel performing private security 
                        functions in an area of combat operations are 
                        killed or injured;
                    (D) a process for investigating--
                            (i) incidents reported pursuant to 
                        subparagraph (C); and
                            (ii) incidents of alleged misconduct by 
                        personnel performing private security functions 
                        in an area of combat operations;
                    (E) qualification, training, screening, and 
                security requirements for personnel performing private 
                security functions in an area of combat operations;
                    (F) guidance to the commanders of the combatant 
                commands on the issuance of--
                            (i) orders, directives, and instructions to 
                        contractors and subcontractors performing 
                        private security functions relating to force 
                        protection, security, health, safety, or 
                        relations and interaction with locals; and
                            (ii) rules of engagement for personnel 
                        performing private security functions in an 
                        area of combat operations; and
                    (G) a process by which a commander of a combatant 
                command may request an action described in subsection 
                (b)(3).
    (b) Contract Clause on Contractors Performing Private Security 
Functions.--
            (1) Requirement under far.--Not later than 180 days after 
        the date of the enactment of this Act, the Federal Acquisition 
        Regulation issued in accordance with section 25 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 421) shall be 
        revised to require the insertion into each covered contract and 
        covered subcontract of a contract clause addressing the 
        selection, training, equipping, and conduct of personnel 
        performing private security functions under such contract or 
        subcontract.
            (2) Clause requirement.--The contract clause required by 
        paragraph (1) shall require, at a minimum, that the contractor 
        or subcontractor concerned shall--
                    (A) comply with Department of Defense procedures 
                for--
                            (i) registering, processing, and accounting 
                        for personnel performing private security 
                        functions in an area of combat operations;
                            (ii) authorizing and accounting of weapons 
                        to be carried by, or available to be used by, 
                        personnel performing private security functions 
                        in an area of combat operations; and
                            (iii) the reporting of incidents in which--
                                    (I) a weapon is discharged by 
                                personnel performing private security 
                                functions in an area of combat 
                                operations; or
                                    (II) personnel performing private 
                                security functions in an area of combat 
                                operations are killed or injured;
                    (B) ensure that all personnel performing private 
                security functions under such contract or subcontract 
                comply with--
                            (i) qualification, training, screening, and 
                        security requirements established by the 
                        Secretary of Defense for personnel performing 
                        private security functions in an area of combat 
                        operations;
                            (ii) applicable laws and regulations of the 
                        United States and the host country, and 
                        applicable treaties and international 
                        agreements, regarding the performance of the 
                        functions of the contractor or subcontractor;
                            (iii) orders, directives, and instructions 
                        issued by the applicable commander of a 
                        combatant command relating to force protection, 
                        security, health, safety, or relations and 
                        interaction with locals; and
                            (iv) rules of engagement issued by the 
                        applicable commander of a combatant command for 
                        personnel performing private security functions 
                        in an area of combat operations; and
                    (C) cooperate with any investigation conducted by 
                the Department of Defense pursuant to subsection 
                (a)(2)(D) by providing access to employees of the 
                contractor or subcontractor, as the case may be, and 
                relevant information in the possession of the 
                contractor or subcontractor, as the case may be, 
                regarding the incident concerned.
            (3) Noncompliance of personnel with clause.--The 
        contracting officer for a covered contract or subcontract may 
        direct the contractor or subcontractor, at its own expense, to 
        remove or replace any personnel performing private security 
        functions in an area of combat operations who violate or fail 
        to comply with applicable requirements of the clause required 
        by this subsection. If the violation or failure to comply is 
        significant or repeated, the contract or subcontract may be 
        terminated for default.
            (4) Applicability.--The contract clause required by this 
        subsection shall be included in all covered contracts and 
        covered subcontracts awarded on or after the date that is 180 
        days after the date of the enactment of this Act. Federal 
        agencies shall make best efforts to provide for the inclusion 
        of the contract clause required by this subsection in covered 
        contracts and covered subcontracts awarded before such date.
    (c) Areas of Combat Operations.--
            (1) Designation.--The Secretary of Defense shall designate 
        the areas constituting an area of combat operations for 
        purposes of this section by not later than 120 days after the 
        date of the enactment of this Act.
            (2) Particular areas.--Iraq and Afghanistan shall be 
        included in the areas designated as an area of combat 
        operations under paragraph (1).
            (3) Additional areas.--The Secretary may designate any 
        additional area as an area constituting an area of combat 
        operations for purposes of this section if the Secretary 
        determines that the presence or potential of combat operations 
        in such area warrants designation of such area as an area of 
        combat operations for purposes of this section.
            (4) Modification or elimination of designation.--The 
        Secretary may modify or cease the designation of an area under 
        this subsection as an area of combat operations if the 
        Secretary determines that combat operations are no longer 
        ongoing in such area.
    (d) Definitions.--In this section:
            (1) The term ``covered contract'' means a contract of a 
        Federal agency for the performance of services in an area of 
        combat operations, as designated by the Secretary of Defense 
        under subsection (c).
            (2) The term ``covered subcontract'' means a subcontract 
        for the performance of private security functions at any tier 
        under a covered contract.
            (3) The term ``private security functions'' means 
        activities engaged in by a contractor or subcontractor under a 
        covered contract or subcontract as follows:
                    (A) Guarding of personnel, facilities, or property 
                of a Federal agency, the contractor or subcontractor, 
                or a third party.
                    (B) Any other activity for which personnel are 
                required to carry weapons in the performance of their 
                duties.

SEC. 872. ENHANCED AUTHORITY TO ACQUIRE PRODUCTS AND SERVICES PRODUCED 
              IN IRAQ AND AFGHANISTAN.

    (a) In General.--In the case of a product or service to be acquired 
in support of military operations or stability operations in Iraq or 
Afghanistan (including security, transition, reconstruction, and 
humanitarian relief activities) for which the Secretary of Defense 
makes a determination described in subsection (b), the Secretary may 
conduct a procurement in which--
            (1) competition is limited to products or services that are 
        from Iraq or Afghanistan;
            (2) procedures other than competitive procedures are used 
        to award a contract to a particular source or sources from Iraq 
        or Afghanistan; or
            (3) a preference is provided for products or services that 
        are from Iraq or Afghanistan.
    (b) Determination.--A determination described in this subsection is 
a determination by the Secretary that--
            (1) the product or service concerned is to be used only by 
        the military forces, police, or other security personnel of 
        Iraq or Afghanistan; or
            (2) it is in the national security interest of the United 
        States to limit competition, use procedures other than 
        competitive procedures, or provide a preference as described in 
        subsection (a) because--
                    (A) such limitation, procedure, or preference is 
                necessary to provide a stable source of jobs in Iraq or 
                Afghanistan; and
                    (B) such limitation, procedure, or preference will 
                not adversely affect--
                            (i) military operations or stability 
                        operations in Iraq or Afghanistan; or
                            (ii) the United States industrial base.
    (c) Products, Services, and Sources From Iraq or Afghanistan.--For 
the purposes of this section:
            (1) A product is from Iraq or Afghanistan if it is mined, 
        produced, or manufactured in Iraq or Afghanistan.
            (2) A service is from Iraq or Afghanistan if it is 
        performed in Iraq or Afghanistan by citizens or permanent 
        resident aliens of Iraq or Afghanistan.
            (3) A source is from Iraq or Afghanistan if it--
                    (A) is located in Iraq or Afghanistan; and
                    (B) offers products or services that are from Iraq 
                or Afghanistan.

SEC. 873. DEFENSE SCIENCE BOARD REVIEW OF DEPARTMENT OF DEFENSE 
              POLICIES AND PROCEDURES FOR THE ACQUISITION OF 
              INFORMATION TECHNOLOGY.

    (a) Review Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall direct the 
Defense Science Board to carry out a review of Department of Defense 
policies and procedures for the acquisition of information technology.
    (b) Matters To Be Addressed.--The matters addressed by the review 
required by subsection (a) shall include the following:
            (1) Department of Defense policies and procedures for 
        acquiring national security systems, business information 
        systems, and other information technology.
            (2) The roles and responsibilities in implementing such 
        policies and procedures of--
                    (A) the Under Secretary of Defense for Acquisition, 
                Technology, and Logistics;
                    (B) the Chief Information Officer of the Department 
                of Defense;
                    (C) the Director of the Business Transformation 
                Agency;
                    (D) the service acquisition executives;
                    (E) the chief information officers of the military 
                departments;
                    (F) Defense Agency acquisition officials; and
                    (G) the information officers of the Defense 
                Agencies.
            (3) The application of such policies and procedures to 
        information technologies that are an integral part of weapons 
        or weapon systems.
            (4) The requirements of the Clinger-Cohen Act (division E 
        of Public Law 104-106) and the Paperwork Reduction Act of 1995 
        regarding performance-based and results-based management, 
        capital planning, and investment control in the acquisition of 
        information technology.
            (5) Department of Defense policies and procedures for 
        maximizing the usage of commercial information technology while 
        ensuring the security of the microelectronics, software, and 
        networks of the Department.
            (6) The suitability of Department of Defense acquisition 
        regulations, including Department of Defense Directive 5000.1 
        and the accompanying milestones, to the acquisition of 
        information technology systems.
            (7) The adequacy and transparency of performance metrics 
        currently used by the Department of Defense for the acquisition 
        of information technology systems.
            (8) The effectiveness of existing statutory and regulatory 
        reporting requirements for the acquisition of information 
        technology systems.
    (c) Report Required.--Not later than one year after the date of 
enactment of this Act, the Secretary shall submit to the congressional 
defense committees a report on the results of the review required by 
subsection (a). The report shall include the findings and 
recommendations of the Defense Science Board pursuant to the review, 
including such recommendations for legislative or administrative action 
as the Board considers appropriate, together with any comments the 
Secretary considers appropriate.

SEC. 874. ENHANCEMENT AND EXTENSION OF ACQUISITION AUTHORITY FOR THE 
              UNIFIED COMBATANT COMMAND FOR JOINT WARFIGHTING 
              EXPERIMENTATION.

    (a) Sustainment of Equipment.--
            (1) In general.--Subsection (a) of section 167a of title 
        10, United States Code, is amended by striking ``and acquire'' 
        and inserting ``, acquire, and sustain''.
            (2) Conforming amendment.--Subsection (d) of such section 
        is amended in the matter preceding paragraph (1) by striking 
        ``or acquisition'' and inserting ``, acquisition, or 
        sustainment''.
    (b) Two-Year Extension.--Subsection (f) of such section is 
amended--
            (1) by striking ``through 2008'' and inserting ``through 
        2010''; and
            (2) by striking ``September 30, 2008'' and inserting 
        ``September 30, 2010''.

SEC. 875. REPEAL OF REQUIREMENT FOR IDENTIFICATION OF ESSENTIAL 
              MILITARY ITEMS AND MILITARY SYSTEM ESSENTIAL ITEM 
              BREAKOUT LIST.

    Section 813 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1543) is repealed.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT OF DEFENSE 
              HEADQUARTERS ACTIVITIES PERSONNEL.

    (a) Repeal.--Section 130a of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 3 of such title is amended by striking the item relating to 
section 130a.

SEC. 902. CHIEF MANAGEMENT OFFICERS OF THE DEPARTMENT OF DEFENSE.

    (a) Service of Deputy Secretary of Defense as Chief Management 
Officer of Department of Defense.--Section 132 of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c)(1) The Deputy Secretary--
            ``(A) serves as the Chief Management Officer of the 
        Department of Defense; and
            ``(B) is the principal adviser to the Secretary of Defense 
        on matters relating to the management of the Department of 
        Defense, including the development, approval, implementation, 
        integration, and oversight of policies, procedures, processes, 
        and systems for the management of the Department of Defense 
        that relate to the performance of the following functions:
                    ``(i) Planning and budgeting, including performance 
                measurement.
                    ``(ii) Acquisition.
                    ``(iii) Logistics.
                    ``(iv) Facilities, installations, and environment.
                    ``(v) Financial management.
                    ``(vi) Human resources and personnel.
                    ``(vii) Management of information resources, 
                including information technology, networks, and 
                telecommunications functions.
    ``(2) In carrying out the duties of Chief Management Officer of the 
Department of Defense, the Deputy Secretary shall--
            ``(A) develop and maintain a departmentwide strategic plan 
        for business reform identifying key initiatives to be 
        undertaken by the Department of Defense and its components, 
        together with related resource needs;
            ``(B) establish performance goals and measures for 
        improving and evaluating the overall economy, efficiency, and 
        effectiveness of the business operations of the Department of 
        Defense;
            ``(C) monitor the progress of the Department of Defense and 
        its components in meeting performance goals and measures 
        established pursuant to subparagraph (B);
            ``(D) review and approve plans and budgets for business 
        reform, including any proposed changes to policies, procedures, 
        processes, and systems, to ensure the compatibility of such 
        plans and budgets with the strategic plan for business reform 
        established pursuant to subparagraph (A);
            ``(E) oversee the development of, and review and approve, 
        all budget requests for defense business systems, including the 
        information to be submitted to Congress under section 2222(h) 
        of this title; and
            ``(F) subject to the authority, direction, and control of 
        the Secretary of Defense, perform the responsibilities of the 
        Secretary under section 2222 of this title.
    ``(3) The Deputy Secretary exercises the authority of the Secretary 
of Defense in the performance of the duties of Chief Management Officer 
of the Department of Defense under this subsection subject to the 
authority, direction, and control of the Secretary. The exercise of 
that authority is binding on the Secretaries of the military 
departments and the heads of the other elements and components of the 
Department of Defense.''.
    (b) Deputy Chief Management Officer.--
            (1) In general.--Chapter 4 of such title is amended by 
        inserting after section 133b the following new section:
``Sec. 133c. Under Secretary of Defense for Management (Deputy Chief 
              Management Officer)
    ``(a) There is an Under Secretary of Defense for Management (Deputy 
Chief Management Officer), appointed from civilian life by the 
President, by and with the advice and consent of the Senate, from among 
persons who have--
            ``(1) extensive executive level leadership and management 
        experience in the public or private sector;
            ``(2) strong leadership skills;
            ``(3) a demonstrated ability to manage large and complex 
        organizations; and
            ``(4) a record of achieving positive operational results.
    ``(b) The Under Secretary of Defense for Management (Deputy Chief 
Management Officer) shall assist the Deputy Secretary of Defense in the 
performance of his duties as Chief Management Officer. The Under 
Secretary of Defense for Management (Deputy Chief Management Officer) 
shall act for, and exercise the powers of, the Chief Management Officer 
when the Deputy Secretary is absent or disabled or there is no Deputy 
Secretary.
    ``(c)(1) With respect to all matters for which he has 
responsibility by law or by direction of the Secretary of Defense, the 
Under Secretary of Defense for Management (Deputy Chief Management 
Officer) takes precedence in the Department of Defense after the 
Secretary of Defense and the Deputy Secretary of Defense.
    ``(2) With respect to all matters other than matters for which he 
has responsibility by law or by direction of the Secretary of Defense, 
the Under Secretary takes precedence in the Department of Defense after 
the Secretaries of the military departments and the Under Secretary of 
Defense for Acquisition, Technology, and Logistics.''.
            (2) Clerical amendment.--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. Under Secretary of Defense for Management (Deputy Chief 
                            Management Officer).''.
            (3) Executive schedule level iii.--Section 5314 of title 5, 
        United States Code, is amended by inserting after the item 
        relating to the Under Secretary of Defense for Intelligence the 
        following new item:
            ``Under Secretary of Defense for Management (Deputy Chief 
        Management Officer).''.
            (4) Placement in osd.--Section 131(b)(2) of title 10, 
        United States Code, is amended--
                    (A) by redesignating subparagraphs (B) through (E) 
                as subparagraphs (C) through (F), respectively; and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph (B):
                    ``(B) The Under Secretary of Defense for Management 
                (Deputy Chief Management Officer).''.
            (5) Conforming amendment.--Section 134(c) of such title is 
        amended by striking ``the Secretary of Defense'' and all that 
        follows and inserting ``the Under Secretary of Defense for 
        Management (Deputy Chief Management Officer).''.
    (c) Chief Management Officers of the Military Departments.--
            (1) Department of the army.--Section 3015 of title 10, 
        United States Code, is amended by adding at the end the 
        following new subsection:
    ``(c)(1) The Under Secretary serves as the Chief Management Officer 
of the Department of the Army.
    ``(2) The Under Secretary is the principal adviser to the Secretary 
of the Army on matters relating to the management of the Department of 
the Army, including the development, approval, implementation, 
integration, and oversight of policies, procedures, processes, and 
systems for the management of the Department of the Army that relate to 
the performance of the following functions:
            ``(A) Planning and budgeting, including performance 
        measurement.
            ``(B) Acquisition.
            ``(C) Logistics.
            ``(D) Facilities, installations, and environment.
            ``(E) Financial management.
            ``(F) Human resources and personnel.
            ``(G) Management of information resources, including 
        information technology, networks, and telecommunications 
        functions.
    ``(3) Subject to the direction and oversight of the Chief 
Management Officer and Deputy Chief Management Officer of the 
Department of Defense, the Under Secretary shall be responsible for--
            ``(A) developing and maintaining a strategic plan for 
        business reform that identifies key initiatives to be 
        undertaken by the Department of the Army for business reform, 
        together with related resource needs;
            ``(B) establishing performance goals and measures for 
        improving and evaluating the overall economy, efficiency, and 
        effectiveness of the business operations of the Department of 
        the Army;
            ``(C) monitoring the progress of the Department of the Army 
        and its components in meeting the performance goals and 
        measures established pursuant to subparagraph (B);
            ``(D) reviewing and approving the plans and budgets of the 
        Department of the Army for business reform, including any 
        proposed changes to policies, procedures, processes, and 
        systems, to ensure the compatibility of such plans and budgets 
        with the strategic plan for business reform established 
        pursuant to subparagraph (A); and
            ``(E) overseeing the development of, and reviewing and 
        approving, all budget requests for defense business systems by 
        the Department of the Army, including the information to be 
        submitted to Congress under section 2222(h) of this title.''.
            (2) Department of the navy.--Section 5015 of such title is 
        amended by adding at the end the following new subsection:
    ``(c)(1) The Under Secretary serves as the Chief Management Officer 
of the Department of the Navy.
    ``(2) The Under Secretary is the principal adviser to the Secretary 
of the Navy on matters relating to the management of the Department of 
the Navy, including the development, approval, implementation, 
integration, and oversight of policies, procedures, processes, and 
systems for the management of the Department of the Navy that relate to 
the performance of the following functions:
            ``(A) Planning and budgeting, including performance 
        measurement.
            ``(B) Acquisition.
            ``(C) Logistics.
            ``(D) Facilities, installations, and environment.
            ``(E) Financial management.
            ``(F) Human resources and personnel.
            ``(G) Management of information resources, including 
        information technology, networks, and telecommunications 
        functions.
    ``(3) Subject to the direction and oversight of the Chief 
Management Officer and Deputy Chief Management Officer of the 
Department of Defense, the Under Secretary shall be responsible for--
            ``(A) developing and maintaining a strategic plan for 
        business reform that identifies key initiatives to be 
        undertaken by the Department of the Navy for business reform, 
        together with related resource needs;
            ``(B) establishing performance goals and measures for 
        improving and evaluating the overall economy, efficiency, and 
        effectiveness of the business operations of the Department of 
        the Navy;
            ``(C) monitoring the progress of the Department of the Navy 
        and its components in meeting the performance goals and 
        measures established pursuant to subparagraph (B);
            ``(D) reviewing and approving the plans and budgets of the 
        Department of the Navy for business reform, including any 
        proposed changes to policies, procedures, processes, and 
        systems, to ensure the compatibility of such plans and budgets 
        with the strategic plan for business reform established 
        pursuant to subparagraph (A); and
            ``(E) overseeing the development of, and reviewing and 
        approving, all budget requests for defense business systems by 
        the Department of the Navy, including the information to be 
        submitted to Congress under section 2222(h) of this title.''.
            (3) Department of the air force.--Section 8015 of such 
        title is amended by adding at the end the following new 
        subsection:
    ``(c)(1) The Under Secretary serves as the Chief Management Officer 
of the Department of the Air Force.
    ``(2) The Under Secretary is the principal adviser to the Secretary 
of the Air Force on matters relating to the management of the 
Department of the Air Force, including the development, approval, 
implementation, integration, and oversight of policies, procedures, 
processes, and systems for the management of the Department of the Air 
Force that relate to the performance of the following functions:
            ``(A) Planning and budgeting, including performance 
        measurement.
            ``(B) Acquisition.
            ``(C) Logistics.
            ``(D) Facilities, installations, and environment.
            ``(E) Financial management.
            ``(F) Human resources and personnel.
            ``(G) Management of information resources, including 
        information technology, networks, and telecommunications 
        functions.
    ``(3) Subject to the direction and oversight of the Chief 
Management Officer and Deputy Chief Management Officer of the 
Department of Defense, the Under Secretary shall be responsible for--
            ``(A) developing and maintaining a strategic plan for 
        business reform that identifies key initiatives to be 
        undertaken by the Department of the Air Force for business 
        reform, together with related resource needs;
            ``(B) establishing performance goals and measures for 
        improving and evaluating the overall economy, efficiency, and 
        effectiveness of the business operations of the Department of 
        the Air Force;
            ``(C) monitoring the progress of the Department of the Air 
        Force and its components in meeting the performance goals and 
        measures established pursuant to subparagraph (B);
            ``(D) reviewing and approving the plans and budgets of the 
        Department of the Air Force for business reform, including any 
        proposed changes to policies, procedures, processes, and 
        systems, to ensure the compatibility of such plans and budgets 
        with the strategic plan for business reform established 
        pursuant to subparagraph (A); and
            ``(E) overseeing the development of, and reviewing and 
        approving, all budget requests for defense business systems by 
        the Department of the Air Force, including the information to 
        be submitted to Congress under section 2222(h) of this 
        title.''.
    (d) Matters Relating to Financial Management Modernization 
Executive Committee.--Section 185(a) of title 10, United States Code, 
is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) through (E) 
                as subparagraphs (C) though (G), respectively; and
                    (B) by inserting before subparagraph (C), as 
                redesignated by subparagraph (A) of this paragraph, the 
                following new subparagraphs:
            ``(A) The Deputy Secretary of Defense, who shall be the 
        chairman of the committee.
            ``(B) The Under Secretary of Defense for Management (Deputy 
        Chief Management Officer), who shall act as the chairman of the 
        committee in the absence of the Deputy Secretary of Defense.''; 
        and
                    (C) in subparagraph (C), as so redesignated, by 
                striking ``, who shall be the chairman of the 
                committee''; and
            (2) in paragraph (3), by inserting ``the Under Secretary of 
        Defense for Management (Deputy Chief Management Officer),'' 
        after ``the Deputy Secretary of Defense,''.
    (e) Matters Relating to Defense Business System Management 
Committee.--Section 186 of such title is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (2) through (7) as 
                paragraphs (3) through (8), respectively; and
                    (B) by inserting after paragraph (1) the following 
                new paragraph (2):
            ``(2) The Under Secretary of Defense for Management (Deputy 
        Chief Management Officer).''; and
            (2) in subsection (b), by striking the second sentence and 
        inserting the following new sentence: ``The Under Secretary of 
        Defense for Management (Deputy Chief Management Officer) shall 
        serve as the vice chairman of the committee, and shall act as 
        the chairman of the committee in the absence of the Deputy 
        Secretary of Defense.''.
    (f) Management of Defense Business Transformation Agency.--Section 
192(e)(2) of such title is amended by striking ``that the Agency'' and 
all that follows and inserting ``that the Director of the Agency shall 
report directly to the Under Secretary of Defense for Management 
(Deputy Chief Management Officer).''.

SEC. 903. MODIFICATION OF BACKGROUND REQUIREMENT OF INDIVIDUALS 
              APPOINTED AS UNDER SECRETARY OF DEFENSE FOR ACQUISITION, 
              TECHNOLOGY, AND LOGISTICS.

    Section 133(a) of title 10, United States Code, is amended by 
striking ``in the private sector''.

SEC. 904. DEPARTMENT OF DEFENSE BOARD OF ACTUARIES.

    (a) Establishment.--
            (1) In general.--Chapter 7 of title 10, United States Code, 
        is amended by inserting after section 182 the following new 
        section:
``Sec. 183. Department of Defense Board of Actuaries
    ``(a) In General.--There shall be in the Department of Defense a 
Department of Defense Board of Actuaries (hereinafter in this section 
referred to as the `Board').
    ``(b) Members.--(1) The Board shall consist of three members who 
shall be appointed by the Secretary of Defense from among qualified 
professional actuaries who are members of the Society of Actuaries.
    ``(2) The members of the Board shall serve for a term of 15 years, 
except that a member of the Board appointed to fill a vacancy occurring 
before the end of the term for which the member's predecessor was 
appointed shall only serve until the end of such term. A member may 
serve after the end of the member's term until the member's successor 
takes office.
    ``(3) A member of the Board may be removed by the Secretary of 
Defense only for misconduct or failure to perform functions vested in 
the Board.
    ``(4) A member of the Board who is not an employee of the United 
States is entitled to receive pay at the daily equivalent of the annual 
rate of basic pay of the highest rate of basic pay then currently being 
paid under the General Schedule of subchapter III of chapter 53 of 
title 5 for each day the member is engaged in the performance of the 
duties of the Board and is entitled to travel expenses, including a per 
diem allowance, in accordance with section 5703 of that title in 
connection with such duties.
    ``(c) Duties.--The Board shall have the following duties:
            ``(1) To review valuations of the Department of Defense 
        Military Retirement Fund in accordance with section 1465(c) of 
        this title and submit to the President and Congress, not less 
        often than once every four years, a report on the status of 
        that Fund, including such recommendations for modifications to 
        the funding or amortization of that Fund as the Board considers 
        appropriate and necessary to maintain that Fund on a sound 
        actuarial basis.
            ``(2) To review valuations of the Department of Defense 
        Education Benefits Fund in accordance with section 2006(e) of 
        this title and make recommendations to the President and 
        Congress on such modifications to the funding or amortization 
        of that Fund as the Board considers appropriate to maintain 
        that Fund on a sound actuarial basis.
            ``(3) To review valuations of such other funds as the 
        Secretary of Defense shall specify for purposes of this section 
        and make recommendations to the President and Congress on such 
        modifications to the funding or amortization of such funds as 
        the Board considers appropriate to maintain such funds on a 
        sound actuarial basis.
    ``(d) Records.--The Secretary of Defense shall ensure that the 
Board has access to such records regarding the funds referred to in 
subsection (c) as the Board shall require to determine the actuarial 
status of such funds.
    ``(e) Reports.--(1) The Board shall submit to the Secretary of 
Defense on an annual basis a report on the actuarial status of each of 
the following:
            ``(A) The Department of Defense Military Retirement Fund.
            ``(B) The Department of Defense Education Benefits Fund.
            ``(C) Each other fund specified by Secretary under 
        subsection (c)(3).
    ``(2) The Board shall also furnish its advice and opinion on 
matters referred to it by the Secretary.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 7 of such title is amended by inserting 
        after the item relating to section 182 the following new item:

``183. Department of Defense Board of Actuaries.''.
            (3) Initial service as board members.--Each member of the 
        Department of Defense Retirement Board of Actuaries or the 
        Department of Defense Education Benefits Board of Actuaries as 
        of the date of the enactment of this Act shall serve as an 
        initial member of the Department of Defense Board of Actuaries 
        under section 183 of title 10, United States Code (as added by 
        paragraph (1)), from that date until the date otherwise 
        provided for the completion of such individual's term as a 
        member of the Department of Defense Retirement Board of 
        Actuaries or the Department of Defense Education Benefits Board 
        of Actuaries, as the case may be, unless earlier removed by the 
        Secretary of Defense.
    (b) Termination of Existing Boards of Actuaries.--
            (1) Department of defense retirement board of actuaries.--
        (A) Section 1464 of title 10, United States Code, is repealed.
            (B) The table of sections at the beginning of chapter 74 of 
        such title is amended by striking the item relating to section 
        1464.
            (2) Department of defense education benefits board of 
        actuaries.--Section 2006 of such title is amended--
                    (A) in subsection (c)(1), by striking ``subsection 
                (g)'' and inserting ``subsection (f)'';
                    (B) by striking subsection (e);
                    (C) by redesignating subsections (f), (g), and (h) 
                as subsections (e), (f), and (g), respectively;
                    (D) in subsection (e), as redesignated by 
                subparagraph (C), by striking ``subsection (g)'' in 
                paragraph (5) and inserting ``subsection (f)''; and
                    (E) in subsection (f), as so redesignated--
                            (i) in paragraph (2)(A), by striking 
                        ``subsection (f)(3)'' and inserting 
                        ``subsection (e)(3)''; and
                            (ii) in paragraph (2)(B), by striking 
                        ``subsection (f)(4)'' and inserting 
                        ``subsection (e)(4)''.
    (c) Conforming Amendments.--
            (1) Section 1175(h)(4) of title 10, United States Code, is 
        amended by striking ``Retirement'' the first place it appears.
            (2) Section 1460(b) of such title is amended by striking 
        ``Retirement''.
            (3) Section 1466(c)(3) of such title is amended by striking 
        ``Retirement''.
            (4) Section 12521(6) of such title is amended by striking 
        ``Department of Defense Education Benefits Board of Actuaries 
        referred to in section 2006(e)(1) of this title'' and inserting 
        ``Department of Defense Board of Actuaries under section 183 of 
        this title''.

SEC. 905. ASSISTANT SECRETARIES OF THE MILITARY DEPARTMENTS FOR 
              ACQUISITION MATTERS; PRINCIPAL MILITARY DEPUTIES.

    (a) Department of the Army.--Section 3016(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
    ``(5)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of the Army for Acquisition, Technology, and Logistics. The 
principal duty of the Assistant Secretary shall be the overall 
supervision of acquisition, technology, and logistics matters of the 
Department of the Army.
    ``(B) The Assistant Secretary shall have a Principal Deputy, who 
shall be a lieutenant general of the Army on active duty. The Principal 
Deputy shall be appointed from among officers who have significant 
experience in the areas of acquisition and program management.''.
    (b) Department of the Navy.--Section 5016(b) of such title is 
amended by adding at the end the following new paragraph:
    ``(4)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of the Navy for Research, Development, and Acquisition. The 
principal duty of the Assistant Secretary shall be the overall 
supervision of research, development, and acquisition matters of the 
Department of the Navy.
    ``(B) The Assistant Secretary shall have a Principal Deputy, who 
shall be a vice admiral of the Navy or a lieutenant general of the 
Marine Corps on active duty. The Principal Deputy shall be appointed 
from among officers who have significant experience in the areas of 
acquisition and program management.''.
    (c) Department of the Air Force.--Section 8016(b) of such title is 
amended by adding at the end the following new paragraph:
    ``(4)(A) One of the Assistant Secretaries shall be the Assistant 
Secretary of the Air Force for Acquisition. The principal duty of the 
Assistant Secretary shall be the overall supervision of acquisition 
matters of the Department of the Air Force.
    ``(B) The Assistant Secretary shall have a Principal Deputy, who 
shall be a lieutenant general of the Air Force on active duty. The 
Principal Deputy shall be appointed from among officers who have 
significant experience in the areas of acquisition and program 
management.''.
    (d) Duty of Principal Military Deputies To Inform Service Chiefs on 
Major Defense Acquisition Programs.--Each Principal Deputy to a service 
acquisition executive shall be responsible for keeping the Chief of 
Staff of the Armed Force concerned informed of the progress of major 
defense acquisition programs.
    (e) Exclusion of Principal Military Deputies From Distribution and 
Strength in Grade Limitations.--
            (1) Distribution.--Section 525(b) of such title is amended 
        by adding at the end the following new paragraph:
    ``(9)(A) An officer while serving in a position specified in 
subparagraph (B) is in addition to the number that would otherwise be 
permitted for that officer's armed force for the grade of lieutenant 
general or vice admiral, as applicable.
    ``(B) A position specified in this subparagraph is each position as 
follows:
            ``(i) Principal Deputy to the Assistant Secretary of the 
        Army for Acquisition, Logistics, and Technology.
            ``(ii) Principal Deputy to the Assistant Secretary of the 
        Navy for Research, Development, and Acquisition.
            ``(iii) Principal Deputy to the Assistant Secretary of the 
        Air Force for Acquisition.''.
            (2) Authorized strength.--Section 526 of such title is 
        amended by adding at the end the following new subsection:
    ``(g) Exclusion of Principal Deputies to Assistant Secretaries of 
the Military Departments for Acquisition Matters.--The limitations of 
this section do not apply to a general or flag officer who is covered 
by the exclusion under section 525(b)(9) of this title.''.

SEC. 906. FLEXIBLE AUTHORITY FOR NUMBER OF ARMY DEPUTY CHIEFS OF STAFF 
              AND ASSISTANT CHIEFS OF STAFF.

    Subsection (b) of section 3035 of title 10, United States Code, is 
amended to read as follows:
    ``(b) The Secretary of the Army shall prescribe the number of 
Deputy Chiefs of Staff and Assistant Chiefs of Staff. The aggregate 
number of such positions may not exceed eight positions.''.

SEC. 907. SENSE OF CONGRESS ON TERM OF OFFICE OF THE DIRECTOR OF 
              OPERATIONAL TEST AND EVALUATION.

    It is the sense of Congress that the term of office of the Director 
of Operational Test and Evaluation of the Department of Defense should 
be not less than five years.

                       Subtitle B--Space Matters

SEC. 921. SPACE POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to clarify the 
national security space policy and strategy of the United States for 
the near term, the Secretary of Defense and the Director of National 
Intelligence shall jointly conduct a comprehensive review of the space 
posture of the United States over the posture review period.
    (b) Elements of Review.--The review conducted under subsection (a) 
shall include, for the posture review period, the following:
            (1) The definition, policy, requirements, and objectives 
        for each of the following:
                    (A) Space situational awareness.
                    (B) Space control.
                    (C) Space superiority, including defensive and 
                offensive counterspace.
                    (D) Force enhancement and force application.
                    (E) Space-based intelligence and surveillance and 
                reconnaissance from space.
                    (F) Any other matter the Secretary considers 
                relevant to understanding the space posture of the 
                United States.
            (2) A description of current and planned space acquisition 
        programs that are in acquisition categories 1 and 2, including 
        how each such program will address the policy, requirements, 
        and objectives described under each of subparagraphs (A) 
        through (F) of paragraph (1).
            (3) A description of future space systems and technology 
        development (other than such systems and technology in 
        development as of the date of the enactment of this Act) 
        necessary to address the policy, requirements, and objectives 
        described under each of subparagraphs (A) through (F) of 
        paragraph (1).
            (4) An assessment of the relationship among the following:
                    (A) United States military space policy.
                    (B) National security space policy.
                    (C) National security space objectives.
                    (D) Arms control policy.
            (5) An assessment of the effect of the military and 
        national security space policy of the United States on the 
        proliferation of weapons capable of targeting objects in space 
        or objects on Earth from space.
    (c) Report.--
            (1) In general.--Not later than December 1, 2009, the 
        Secretary of Defense and the Director of National Intelligence 
        shall jointly submit to the congressional committees specified 
        in paragraph (3) a report on the review conducted under 
        subsection (a).
            (2) Form of report.--The report under this subsection shall 
        be submitted in unclassified form, but may include a classified 
        annex.
            (3) Committees.--The congressional committees specified in 
        this paragraph are--
                    (A) the Committee on Armed Services and the Select 
                Committee on Intelligence of the Senate; and
                    (B) the Committee on Armed Services and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.
    (d) Posture Review Period Defined.--In this section, the term 
``posture review period'' means the 10-year period beginning on 
February 1, 2009.

SEC. 922. ADDITIONAL REPORT ON OVERSIGHT OF ACQUISITION FOR DEFENSE 
              SPACE PROGRAMS.

    Section 911(b)(1) of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2621) is 
amended by inserting ``, and March 15, 2008,'' after ``March 15, 
2003,''.

                       Subtitle C--Other Matters

SEC. 931. DEPARTMENT OF DEFENSE CONSIDERATION OF EFFECT OF CLIMATE 
              CHANGE ON DEPARTMENT FACILITIES, CAPABILITIES, AND 
              MISSIONS.

    Section 118 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Consideration of Effect of Climate Change on Department 
Facilities, Capabilities, and Missions.--(1) The first national 
security strategy and national defense strategy prepared after the date 
of the enactment of this subsection shall include guidance for military 
planners--
            ``(A) to assess the risks of projected climate change to 
        current and future missions of the armed forces;
            ``(B) to update defense plans based on these assessments, 
        including working with allies and partners to incorporate 
        climate mitigation strategies, capacity building, and relevant 
        research and development; and
            ``(C) to develop the capabilities needed to reduce future 
        impacts.
    ``(2) The first quadrennial defense review prepared after the date 
of the enactment of this subsection shall also examine the capabilities 
of the armed forces to respond to the consequences of climate change, 
in particular, preparedness for natural disasters from extreme weather 
events and other missions the armed forces may be asked to support 
inside the United States and overseas.
    ``(3) For planning purposes to comply with the requirements of this 
subsection, the Secretary of Defense shall use--
            ``(A) the mid-range projections of the fourth assessment 
        report of the Intergovernmental Panel on Climate Change;
            ``(B) subsequent mid-range consensus climate projections if 
        more recent information is available when the next national 
        security strategy, national defense strategy, or quadrennial 
        defense review, as the case may be, is conducted; and
            ``(C) findings of appropriate and available estimations or 
        studies of the anticipated strategic, social, political, and 
        economic effects of global climate change and the implications 
        of such effects on the national security of the United States.
    ``(4) The Secretary shall ensure that this subsection is 
implemented in a manner that does not have a negative impact on 
national security.
    ``(5) In this subsection, the term `national security strategy' 
means the annual national security strategy report of the President 
under section 108 of the National Security Act of 1947 (50 U.S.C. 
404a).''.

SEC. 932. BOARD OF REGENTS FOR THE UNIFORMED SERVICES UNIVERSITY OF THE 
              HEALTH SCIENCES.

    (a) Appointments.--
            (1) In general.--Section 2113 of title 10, United States 
        Code, is amended--
                    (A) in subsection (a)(1), by striking ``by the 
                President, by and with the advice and consent of the 
                Senate'' and inserting ``by the Secretary of Defense''; 
                and
                    (B) in subsection (b)--
                            (i) in paragraph (1), by adding ``and'' at 
                        the end;
                            (ii) by striking paragraph (2); and
                            (iii) by redesignating paragraph (3) as 
                        paragraph (2).
            (2) Chairman.--Subsection (c) of such section is amended by 
        striking ``the President'' and inserting ``the Secretary''.
    (b) Statutory Redesignation of Dean as President.--
            (1) Section 2113 of such title is further amended by 
        striking ``Dean'' each place it appears in subsections (d) and 
        (f)(1) and inserting ``President''.
            (2) Section 2114(e) of such title is amended by striking 
        ``Dean'' each place it appears in paragraphs (3) and (5).
    (c) Compensation of Members for Performance of Duties.--Subsection 
(e) of section 2113 of such title is further amended by striking ``but 
not exceeding $100 per diem''.

SEC. 933. UNITED STATES MILITARY CANCER INSTITUTE.

    (a) Establishment.--Chapter 104 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2117. United States Military Cancer Institute
    ``(a) Establishment.--The Secretary of Defense shall establish in 
the University the United States Military Cancer Institute. The 
Institute shall be established pursuant to regulations prescribed by 
the Secretary.
    ``(b) Purposes.--The purposes of the Institute are as follows:
            ``(1) To establish and maintain a clearinghouse of data on 
        the incidence and prevalence of cancer among members and former 
        members of the armed forces.
            ``(2) To conduct research that contributes to the detection 
        or treatment of cancer among the members and former members of 
        the armed forces.
    ``(c) Head of Institute.--The Director of the United States 
Military Cancer Institute is the head of the Institute. The Director 
shall report to the President of the University regarding matters 
relating to the Institute.
    ``(d) Elements.--(1) The Institute is composed of clinical and 
basic scientists in the Department of Defense who have an expertise in 
research, patient care, and education relating to oncology and who meet 
applicable criteria for affiliation with the Institute.
    ``(2) The components of the Institute include military treatment 
and research facilities that meet applicable criteria and are 
designated as affiliates of the Institute.
    ``(e) Research.--(1) The Director of the United States Military 
Cancer Institute shall carry out research studies on the following:
            ``(A) The epidemiological features of cancer, including 
        assessments of the carcinogenic effect of genetic and 
        environmental factors, and of disparities in health, inherent 
        or common among populations of various ethnic origins within 
        the members of the armed forces.
            ``(B) The prevention and early detection of cancer among 
        members and former members of the armed forces.
            ``(C) Basic, translational, and clinical investigation 
        matters relating to the matters described in subparagraphs (A) 
        and (B).
    ``(2) The research studies under paragraph (1) shall include 
complementary research on oncologic nursing.
    ``(f) Collaborative Research.--The Director of the United States 
Military Cancer Institute shall carry out the research studies under 
subsection (e) in collaboration with other cancer research 
organizations and entities selected by the Institute for purposes of 
the research studies.
    ``(g) Annual Report.--(1) Not later than November 1 each year, the 
Director of the United States Military Cancer Institute shall submit to 
the President of the University a report on the current status of the 
research studies being carried out by the Institute under subsection 
(e).
    ``(2) Not later than 60 days after receiving a report under 
paragraph (1), the President of the University shall transmit such 
report to the Secretary of Defense and to Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 104 of such title is amended by adding at the end the following 
new item:

``2117. United States Military Cancer Institute.''.

SEC. 934. WESTERN HEMISPHERE CENTER FOR EXCELLENCE IN HUMAN RIGHTS.

    (a) Center Authorized.--The Secretary of Defense may establish and 
operate a center to be known as the Western Hemisphere Center for 
Excellence in Human Rights.
    (b) Missions.--The missions of the Center shall be as follows:
            (1) To provide and facilitate education, training, 
        research, strategic planning, and reform on the integration of 
        respect for human rights into all aspects of military 
        operations, doctrine, education, judicial systems, and other 
        internal control mechanisms, and into the relations of the 
        military with civil society, including the development of 
        programs to combat the growing phenomenon of trafficking in 
        persons.
            (2) To sponsor conferences, symposia, seminars, academic 
        exchanges, and courses, as well as special projects such as 
        studies, reviews, design of curricula, and evaluations, on the 
        matters covered by paragraph (1).
            (3) In carrying out its other mission, to place special 
        emphasis on the implementation of reforms that result in 
        measurable improvements in respect for human rights in the 
        provision of effective security.
    (c) Formulation and Execution of Programs.--
            (1) Concurrence of secretary of state.--The Secretary of 
        Defense may carry out this section only with the concurrence of 
        the Secretary of State.
            (2) Formulation and execution of programs.--The Secretary 
        of Defense and the Secretary of State shall--
                    (A) jointly formulate any program or other 
                activities undertaken under this section; and
                    (B) shall coordinate with one another, under 
                procedures that they jointly establish, to ensure 
                appropriate implementation of such programs and 
                activities, including in a manner that--
                            (i) incorporates appropriate vetting 
                        procedures, irrespective of the source of 
                        funding for the activity; and
                            (ii) avoids duplication with existing 
                        programs.
    (d) Joint Operation With Educational Institutions and 
Nongovernmental Organizations Authorized.--The Secretary of Defense may 
enter into agreements with appropriate officials of institutions of 
higher education and nongovernmental organizations to provide for the 
joint operation of the Center by the Secretary and such entities. Any 
such agreement may provide for the institution or organization 
concerned to furnish necessary administrative services for the Center, 
including administration and allocation of funds.
    (e) Acceptance of Gifts and Donations.--
            (1) Acceptance authorized.--Except as provided in paragraph 
        (2), the Secretary of Defense may accept, on behalf of the 
        Center, gifts and donations to be used to defray the costs of 
        the Center or to enhance the operation of the Center. Any such 
        gift or donation may be accepted from any State or local 
        government, any foreign government, any foundation or other 
        charitable organization (including any that is organized or 
        operates under the laws of a foreign country), or any other 
        private source in the United States or a foreign country.
            (2) Limitation.--The Secretary may not accept a gift or 
        donation under paragraph (1) if acceptance of the gift or 
        donation would compromise or appear to compromise--
                    (A) the ability of the Department of Defense, any 
                employee of the Department, or members of the Armed 
                Forces to carry out any responsibility or duty of the 
                Department in a fair and objective manner; or
                    (B) the integrity of any program of the Department 
                or of any person involved in such a program.
            (3) Crediting.--Amounts accepted as a gift or donation 
        under paragraph (1) shall be credited to the appropriation 
        available to the Department of Defense for the Western 
        Hemisphere Center for Excellence in Human Rights. Amounts so 
        credited shall be merged with the appropriation to which 
        credited, and shall be available to the Center for the same 
        purposes, and subject to the same conditions and limitations, 
        as amounts in the appropriation with which merged.
            (4) Annual report.--Not later than January 31 each year, 
        the Secretary shall submit to the congressional defense 
        committees a report on the gifts or donations accepted under 
        paragraph (1) during the preceding year. Each report shall 
        include, for the year covered by such report, a description of 
        each gift of donation so accepted, including--
                    (A) the source of the gift or donation;
                    (B) the amount of the gift or donation; and
                    (C) the use of the gift or donation.

SEC. 935. INCLUSION OF COMMANDERS OF WESTERN HEMISPHERE COMBATANT 
              COMMANDS IN BOARD OF VISITORS OF WESTERN HEMISPHERE 
              INSTITUTE FOR SECURITY COOPERATION.

    Subparagraph (F) of section 2166(e)(1) of title 10, United States 
Code, is amended to read as follows:
            ``(F) The commanders of the combatant commands having 
        geographic responsibility for the Western Hemisphere, or the 
        designees of those officers.''.

SEC. 936. COMPTROLLER GENERAL ASSESSMENT OF PROPOSED REORGANIZATION OF 
              THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR POLICY.

    (a) Assessment Required.--Not later than March 1, 2008, the 
Comptroller General of the United States shall submit to the 
congressional defense committees a report containing an assessment of 
the proposed reorganization of the office of the Under Secretary of 
Defense for Policy, including an assessment with respect to the matters 
set forth in subsection (b).
    (b) Matters To Be Assessed.--The matters to be included in the 
assessment required by subsection are as follows:
            (1) Whether the proposed reorganization of the office will 
        further the stated purposes of the proposed reorganization in 
        the short-and long-term, namely whether the proposed 
        reorganization will enhance the ability of the Department of 
        Defense--
                    (A) to address current security priorities, 
                including the war in Iraq and the global war on 
                terrorism in Afghanistan and elsewhere;
                    (B) to manage geopolitical defense relationships; 
                and
                    (C) to anticipate future strategic shifts.
            (2) Whether, and to what extent, the proposed 
        reorganization adheres to generally accepted principles of 
        effective organization such as establishing clear goals, 
        identifying clear lines of authority and accountability, and 
        developing an effective human capital strategy.
            (3) The extent to which the Department has developed 
        detailed implementation plans for the proposed reorganization, 
        and the current status of the implementation of all aspects of 
        the reorganization.
            (4) The extent to which the Department has worked to 
        mitigate congressional concerns and address other challenges 
        that have arisen since the proposed reorganization was 
        announced.
            (5) Whether the Department plans to evaluate progress in 
        achieving the stated goals of the proposed reorganization and 
        what metrics, if any, the Department has established to assess 
        the results of the reorganization.
            (6) The impact of the large span of responsibilities for 
        the Assistant Secretary of Defense for Special Operations and 
        Low Intensity Conflict under the proposed reorganization on the 
        ability of the Assistant Secretary to carry out the principal 
        duties of the Assistant Secretary under law.
            (7) The impact of the large span of responsibility for the 
        Assistant Secretary of Defense for Special Operations and Low 
        Intensity Conflict under the proposed reorganization, including 
        responsibility under the proposed reorganization for each of 
        the following:
                    (A) Strategic capabilities.
                    (B) Forces transformation.
                    (C) Major budget programs.
            (8) The relationship between any global war on terrorism 
        task force that reports directly to the Under Secretary of 
        Defense for Policy, the Assistant Secretary of Defense for 
        Special Operations and Low Intensity Conflict, and the 
        Principal Deputy Under Secretary of Defense for Policy in 
        managing policy on combating terrorism.
            (9) The impact of the large span of responsibilities for 
        the proposed Deputy Assistant Secretary of Defense for 
        Counternarcotics, Counterproliferation, and Global Threats 
        under the proposed reorganization.
            (10) The impact of the proposed reorganization on 
        counternarcotics program execution.
            (11) The unique placement under the proposed reorganization 
        of both functional and regional issue responsibilities under 
        the single proposed Assistant Secretary of Defense for Homeland 
        Defense and Americas' Security Affairs.
            (12) The differentiation between the responsibilities of 
        the proposed Deputy Assistant Secretary of Defense for Building 
        Partnership Capacity Strategy and the proposed Deputy Assistant 
        Secretary of Defense for Security Cooperation Options under the 
        proposed reorganization, and the relationship between such 
        officials.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--
            (1) Authority.--Upon determination by the Secretary of 
        Defense that such action is necessary in the national interest, 
        the Secretary may transfer amounts of authorizations made 
        available to the Department of Defense in this division for 
        fiscal year 2008 between any such authorizations for that 
        fiscal year (or any subdivisions thereof). Amounts of 
        authorizations so transferred shall be merged with and be 
        available for the same purposes as the authorization to which 
        transferred.
            (2) Limitation.--Except as provided in paragraph (3), the 
        total amount of authorizations that the Secretary may transfer 
        under the authority of this section may not exceed 
        $5,000,000,000.
            (3) Exception for transfers between military personnel 
        authorizations.--A transfer of funds between military personnel 
        authorizations under title IV shall not be counted toward the 
        dollar limitation in paragraph (2).
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL 
              APPROPRIATIONS FOR FISCAL YEAR 2007.

    Amounts authorized to be appropriated to the Department of Defense 
for fiscal year 2007 in the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364) are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization are increased by a 
supplemental appropriation or by a transfer of funds, or decreased by a 
rescission, or any thereof, pursuant to the U.S. Troop Readiness, 
Veterans' Care, Katrina Recovery, and Iraq Accountability 
Appropriations Act, 2007 (Public Law 110-28).

SEC. 1003. MODIFICATION OF FISCAL YEAR 2007 GENERAL TRANSFER AUTHORITY.

    Section 1001(a) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2371) is 
amended by adding at the end the following new paragraph:
            ``(3) Exception for certain transfers.--The following 
        transfers of funds shall be not be counted toward the 
        limitation in paragraph (2) on the amount that may be 
        transferred under this section:
                    ``(A) The transfer of funds to the Iraq Security 
                Forces Fund under reprogramming FY07-07-R PA.
                    ``(B) The transfer of funds to the Joint Improvised 
                Explosive Device Defeat Fund under reprogramming FY07-
                11 PA.
                    ``(C) The transfer of funds back from the accounts 
                referred to in subparagraphs (A) and (B) to restore the 
                sources used in the reprogrammings referred to in such 
                subparagraphs.''.

SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2008.

    (a) Fiscal Year 2008 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2008 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2007, of funds appropriated for fiscal years before 
        fiscal year 2008 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $1,031,000 
        for the Civil Budget.
            (2) Of the amount provided in section 301(1), $362,159,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR THE 
              DEFENSE AGENCIES.

    (a) Financial Management Transformation Initiative.--
            (1) In general.--The Director of the Business 
        Transformation Agency of the Department of Defense shall carry 
        out an initiative for financial management transformation in 
        the Defense Agencies. The initiative shall be known as the 
        ``Defense Agencies Initiative'' (in this section referred to as 
        the ``Initiative'').
            (2) Scope of authority.--In carrying out the Initiative, 
        the Director of the Business Transformation Agency may require 
        the heads of the Defense Agencies to carry out actions that are 
        within the purpose and scope of the Initiative.
    (b) Purposes.--The purposes of Initiative shall be as follows:
            (1) To eliminate or replace financial management systems of 
        the Defense Agencies that are duplicative, redundant, or fail 
        to comply with the standards set forth in subsection (d).
            (2) To transform the budget, finance, and accounting 
        operations of the Defense Agencies to enable the Defense 
        Agencies to achieve accurate and reliable financial information 
        needed to support financial accountability and effective and 
        efficient management decisions.
    (c) Required Elements.--The Initiative shall include, to the 
maximum extent practicable--
            (1) the utilization of commercial, off-the-shelf 
        technologies and web-based solutions;
            (2) a standardized technical environment and an open and 
        accessible architecture; and
            (3) the implementation of common business processes, shared 
        services, and common data structures.
    (d) Standards.--In carrying out the Initiative, the Director of the 
Business Transformation Agency shall ensure that the Initiative is 
consistent with--
            (1) the requirements of the Business Enterprise 
        Architecture and Transition Plan developed pursuant to section 
        2222 of title 10, United States Code;
            (2) the Standard Financial Information Structure of the 
        Department of Defense;
            (3) the Federal Financial Management Improvement Act of 
        1996 (and the amendments made by that Act); and
            (4) other applicable requirements of law and regulation.
    (e) Scope.--The Initiative shall be designed to provide, at a 
minimum, capabilities in the major process areas for both general fund 
and working capital fund operations of the Defense Agencies as follows:
            (1) Budget formulation.
            (2) Budget to report, including general ledger and trial 
        balance.
            (3) Procure to pay, including commitments, obligations, and 
        accounts payable.
            (4) Order to fulfill, including billing and accounts 
        receivable.
            (5) Cost accounting.
            (6) Acquire to retire (account management).
            (7) Time and attendance and employee entitlement.
            (8) Grants financial management.
    (f) Program Control.--In carrying out the Initiative, the Director 
of the Business Transformation Agency shall establish--
            (1) a board (to be known as the ``Configuration Control 
        Board'') to manage scope and cost changes to the Initiative; 
        and
            (2) a program management office (to be known as the 
        ``Program Management Office'') to control and enforce 
        assumptions made in the acquisition plan, the cost estimate, 
        and the system integration contract for the Initiative, as 
        directed by the Configuration Control Board.
    (g) Plan on Development and Implementation of Initiative.--Not 
later than six months after the date of the enactment of this Act, the 
Director of the Business Transformation Agency shall submit to the 
congressional defense committees a plan for the development and 
implementation of the Initiative. The plan shall provide for the 
implementation of an initial capability under the Initiative as 
follows:
            (1) In at least one Defense Agency by not later than eight 
        months after the date of the enactment of this Act.
            (2) In not less than six Defense Agencies by not later than 
        18 months after the date of the enactment of this Act.

SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE FOR THE 
              DEPARTMENT OF DEFENSE.

    Section 1405 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 99 Stat. 744; 31 U.S.C. 1105 note) is repealed.

SEC. 1007. EXTENSION OF PERIOD FOR TRANSFER OF FUNDS TO FOREIGN 
              CURRENCY FLUCTUATIONS, DEFENSE ACCOUNT.

    Section 2779 of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``second fiscal 
        year'' and inserting ``fifth fiscal year''; and
            (2) in subsection (d)(2), by striking ``second fiscal 
        year'' and inserting ``fifth fiscal year''.

                  Subtitle B--Counter-Drug Activities

SEC. 1011. EXPANSION OF DEPARTMENT OF DEFENSE AUTHORITY TO PROVIDE 
              SUPPORT FOR COUNTER-DRUG ACTIVITIES TO CERTAIN ADDITIONAL 
              FOREIGN GOVERNMENTS.

    Section 1033(b) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881), as amended by 
section 1021(b) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1593) and section 1022(b) of 
the John Warner National Defense Authorization Act for Fiscal Year 2007 
(Public Law 109-364; 120 Stat. 2382), is further amended by adding at 
the end the following new paragraphs:
            ``(17) The Government of the Dominican Republic.
            ``(18) The Government of Mexico.''.

         Subtitle C--Miscellaneous Authorities and Limitations

SEC. 1021. ENHANCEMENT OF AUTHORITY TO PAY REWARDS FOR ASSISTANCE IN 
              COMBATING TERRORISM.

    (a) Increase in Amount of Reward.--Subsection (b) of section 127b 
of title 10, United States Code, is amended by inserting ``, or 
$5,000,000 during fiscal year 2008'' after ``$200,000''.
    (b) Delegation of Authority to Commanders of Combatant Commands.--
Subsection (c)(1)(B) of such title is amended by inserting ``, or 
$1,000,000 during fiscal year 2008'' after ``$50,000''.
    (c) Consultation With Secretary of State in Award.--Subsection 
(d)(2) of such section is amended by inserting ``, or $2,000,000 during 
fiscal year 2008'' after ``$100,000''.

SEC. 1022. REPEAL OF MODIFICATION OF AUTHORITIES RELATING TO THE USE OF 
              THE ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.

    (a) Repeal.--
            (1) In general.--Section 333 of title 10, United States 
        Code, as amended by section 1076 of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007 (Public Law 109-
        364; 120 Stat. 2404), is amended to read as such section read 
        on October 16, 2006, which is the day before the date of the 
        enactment of the John Warner National Defense Authorization Act 
        for Fiscal Year 2007.
            (2) Conforming clerical amendments.--(A) The heading of 
        such section 333, as so amended, is amended to read as such 
        heading read on October 16, 2006.
            (B) The item relating to such section 333 in the table of 
        sections at the beginning of chapter 15 of such title, as so 
        amended, is amended to read as such item read on October 16, 
        2006.
            (C) The heading of chapter 15 of such title, as so amended, 
        is amended to read as such heading read on October 16, 2006.
            (D) The item relating to chapter 15 of such title in the 
        tables of chapters at the beginning of subtitle A of such 
        title, and at the beginning of part I of such subtitle, as so 
        amended, is amended to read as such item read on October 16, 
        2006.
    (b) Other Conforming Amendments.--
            (1) Conforming repeal.--(A) Section 2567 of title 10, 
        United States Code, is repealed.
            (B) The table of sections at the beginning of chapter 152 
        of such title is amended by striking the item relating to 
        section 2567.
            (2) Additional amendment.--Section 12304(c)(1) of such 
        title, as amended by section 1076 of the John Warner National 
        Defense Authorization Act for Fiscal Year 2007, is amended to 
        read as such section read on October 16, 2006.

SEC. 1023. PROCEDURES FOR COMBATANT STATUS REVIEW TRIBUNALS; 
              MODIFICATION OF MILITARY COMMISSION AUTHORITIES.

    (a) Determination of Status of Certain Combatants.--Subsection (b) 
of section 1005 of the Detainee Treatment Act of 2005 (title X of 
Public Law 109-148; 10 U.S.C. 801 note) is amended to read as follows:
    ``(b) Determination of Status of Certain Combatants.--
            ``(1) In general.--The Secretary of Defense shall determine 
        the status of each detainee described in paragraph (2) through 
        a Combatant Status Review Tribunal (in this subsection referred 
        to as a `Tribunal') conducted in accordance with the 
        requirements of this subsection.
            ``(2) Covered detainees.--
                    ``(A) In general.--A detainee described in this 
                paragraph is a detainee who--
                            ``(i) is held by the Department of Defense 
                        as an unlawful enemy combatant on or after the 
                        date of the enactment of the National Defense 
                        Authorization Act for Fiscal Year 2008; and
                            ``(ii) has been detained by the United 
                        States for a period of more than two years.
                    ``(B) Unlawful enemy combatant defined.--In this 
                subsection, the term `unlawful enemy combatant' has the 
                meaning given such term in section 948a(1) of title 10, 
                United States Code.
            ``(3) Standard of proof.--A Tribunal shall determine 
        whether or not a detainee is an unlawful enemy combatant by a 
        preponderance of the evidence. Weight shall be accorded to 
        evidence based on the credibility, reliability, and probative 
        value of the evidence.
            ``(4) Procedures.--Not later than 120 days after the date 
        of the enactment of the National Defense Authorization Act for 
        Fiscal Year 2008, the Secretary shall prescribe procedures for 
        Tribunals under this subsection. Such procedures shall ensure, 
        at a minimum, that--
                    ``(A) the President of a Tribunal is a military 
                judge--
                            ``(i) who shall meet the qualification 
                        requirements of section 948j(b) of title 10, 
                        United States Code, and
                            ``(ii) who shall rule on all questions of 
                        law and exclude evidence that would not have 
                        probative value to a reasonable person;
                    ``(B) each detainee is represented in the same 
                manner as provided for the accused before a military 
                commission under section 949c of title 10, United 
                States Code;
                    ``(C) each detainee is afforded a reasonable 
                opportunity to obtain witnesses and other evidence, 
                including a process to compel witnesses to appear and 
                testify and to compel the production of other evidence, 
                <DELETED>that is similar to that provided for defense 
                counsel in a military commission under section 949j of 
                title 10, United States Code;</DELETED> that is 
                consistent with the procedures to obtain witnesses and 
                other evidence under section 949j of title 10, United 
                States  Code;
                    ``(D) each detainee is permitted to present 
                evidence in his defense, to cross-examine the witnesses 
                who testify against him, and to examine and respond to 
                evidence admitted against him, while providing for the 
                handling of classified information in a manner so 
                that--
                            ``(i) counsel for the detainee is provided 
                        access to the relevant classified evidence, 
                        including both evidence admitted against the 
                        detainee and any potentially exculpatory 
                        evidence, consistent with the procedures for 
                        the protection of classified information in 
                        section 949d(f) of title 10, United States 
                        Code; and
                            ``(ii) the detainee is provided access--
                                    ``(I) to all unclassified evidence; 
                                and
                                    ``(II) to <DELETED>a summary</DELETED> 
                                an unclassified summary of the 
                                classified evidence admitted against 
                                the detainee that is sufficiently 
                                specific to provide the detainee a fair 
                                opportunity to respond, with the 
                                assistance of counsel, to such 
                                evidence;
                    ``(E) in making a determination of status of any 
                such detainee, a Tribunal may not consider a statement 
                that was obtained through methods that amount to 
                torture; and
                    ``(F) in making a determination of status of a 
                detainee, a Tribunal may not consider a statement in 
                which the degree of coercion is disputed unless--
                            ``(i) the totality of the circumstances 
                        renders the statement reliable and possessing 
                        sufficient probative value;
                            ``(ii) the interests of justice would best 
                        be served by admission of the statement into 
                        evidence; and
                            ``(iii) the Tribunal determines that--
                                    ``(I) the alleged coercion was 
                                incident to the lawful conduct of 
                                military operations at the point of 
                                apprehension;
                                    ``(II) the statement was voluntary; 
                                or
                                    ``(III) the interrogation methods 
                                used to obtain the statement do not 
                                amount to cruel, inhuman, or degrading 
                                treatment prohibited by section 1003 of 
                                this Act.
            ``(5) Scheduling.--The Secretary shall ensure that a 
        Tribunal is scheduled for a detainee described in paragraph (2) 
        not later than 180 days after the date on which a Tribunal 
        becomes required for such detainee under paragraph (1), except 
        that--
                    ``(A) the Secretary shall schedule a Tribunal for a 
                detainee who is eligible for such a Tribunal on the 
                date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2008 not later than 
                one year after the date on which procedures are 
                required to be prescribed by paragraph (4); and
                    ``(B) the Secretary shall not be required to 
                schedule a Tribunal for--
                            ``(i) a detainee upon whom charges have 
                        been served in accordance with section 948s of 
                        title 10, United States Code, until after final 
                        judgment has been reached on such charges; or
                            ``(ii) a detainee who has been convicted by 
                        a military commission under chapter 47A of such 
                        title of an offense under subchapter VII of 
                        that chapter.''.
    (b) Modifications of Military Commission Authorities.--
            (1) Enemy combatant status.--Paragraph (1) of section 948a 
        of title 10, United States Code, is amended to read as follows:
            ``(1) Unlawful enemy combatant.--The term `unlawful enemy 
        combatant' means a person who is not a lawful enemy combatant 
        who--
                    ``(A) has engaged in hostilities against the United 
                States;
                    ``(B) has purposefully and materially supported 
                hostilities against the United States (other than 
                hostilities engaged in by lawful enemy combatants); or
                    ``(C) has been a knowing and active participant in 
                an organization that engaged in hostilities against the 
                United States.''.
            (2) Repeal of dispositive nature of previous csrt 
        determinations.--Section 948d of such title is amended--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsection (d) as subsection 
                (c).
            (3) Statements obtained through cruel, inhuman, or 
        degrading treatment.--Section 948r of such title is amended--
                    (A) by striking subsections (c) and (d); and
                    (B) by adding after subsection (b) the following 
                new subsection (c):
    ``(c) Statements Obtained Through Cruel, Inhuman, or Degrading 
Treatment.--A statement in which the degree of coercion is disputed may 
be admitted if the military judge finds that--
            ``(1) the totality of the circumstances renders the 
        statement reliable and possessing sufficient probative value;
            ``(2) the interests of justice would best be served by 
        admission of the statement into evidence; and
            ``(3) one of the following circumstances is met:
                    ``(A) The alleged coercion was incident to the 
                lawful conduct of military operations at the point of 
                apprehension.
                    ``(B) The statement was voluntary.
                    ``(C) The interrogation methods used to obtain the 
                statement do not amount to cruel, inhuman, or degrading 
                treatment prohibited by section 1003 of the Detainee 
                Treatment Act of 2005 (42 U.S.C. 2000dd).''.
            (4) Admittance of hearsay evidence.--Subparagraph (E) of 
        section 949a(b)(2) of such title is amended to read as follows:
            ``(E) Hearsay evidence not otherwise admissible under the 
        rules of evidence applicable in trial by general courts-martial 
        may be admitted in a trial by military commission if--
                    ``(i) the proponent of the evidence makes known to 
                the adverse party, sufficiently in advance of trial or 
                hearing to provide the adverse party with a fair 
                opportunity to meet the evidence, the proponent's 
                intention to offer the evidence, and the particulars of 
                the evidence (including information on the 
                circumstances under which the evidence was obtained); 
                and
                    ``(ii) the military judge finds that the totality 
                of the circumstances render the evidence more probative 
                on the point for which it is offered than other 
                evidence which the proponent can procure through 
                reasonable efforts, taking into consideration the 
                unique circumstances of the conduct of military and 
                intelligence operations during hostilities.''.
            (5) Technical and conforming amendments.--
                    (A) Technical amendment.--The heading of section 
                950j of such title is amended by striking ``Finality 
                or'' and inserting ``Finality of''.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of subchapter VI of chapter 47A of such 
                title is amended to read as follows:

``950j. Finality of proceedings, findings, and sentences.''.

SEC. 1024. GIFT ACCEPTANCE AUTHORITY.

    (a) Permanent Authority To Accept Gifts on Behalf of the Wounded.--
Section 2601(b) of title 10, United States Code, is amended by striking 
paragraph (4).
    (b) Limitation on Solicitation of Gifts.--The Secretary of Defense 
shall prescribe regulations implementing sections 2601 and 2608 of 
title 10, United States Code, that prohibit the solicitation of any 
gift under such sections by any employee of the Department of Defense 
if the nature or circumstances of such solicitation would compromise 
the integrity or the appearance of integrity of any program of the 
Department of Defense or of any individual involved in such program.

SEC. 1025. EXPANSION OF COOPERATIVE AGREEMENT AUTHORITY FOR MANAGEMENT 
              OF CULTURAL RESOURCES.

    (a) In General.--Subsection (a) of section 2684 of title 10, United 
States Code, is amended to read as follows:
    ``(a) Authority.--(1) The Secretary of Defense or the Secretary of 
a military department may enter into a cooperative agreement with a 
State or local government, tribal government, or other entity for any 
purpose as follows:
            ``(A) For the preservation, management, maintenance, and 
        improvement of cultural resources.
            ``(B) For the conduct of research regarding cultural 
        resources.
    ``(2) To be covered under a cooperative agreement under this 
subsection, cultural resources shall be located--
            ``(A) on a military installation; or
            ``(B) off a military installation, but only if the 
        cooperative agreement directly relieves or eliminates current 
        or anticipated restrictions that would or might restrict, 
        impede, or otherwise interfere (whether directly or indirectly) 
        with current or anticipated military training, testing, or 
        operations on the installation.
    ``(3) Activities under a cooperative agreement under this 
subsection shall be subject to the availability of funds to carry out 
the cooperative agreement.''.
    (b) Inclusion of Indian Sacred Sites in Cultural Resources.--
Subsection (c) of such section is amended by adding at the end the 
following new paragraph:
            ``(5) An Indian sacred site, as the that term is defined in 
        section 1(b)(iii) of Executive Order 13007.''.

SEC. 1026. MINIMUM ANNUAL PURCHASE AMOUNTS FOR AIRLIFT FROM CARRIERS 
              PARTICIPATING IN THE CIVIL RESERVE AIR FLEET.

    (a) In General.--Chapter 931 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 9515. Airlift services: minimum annual purchase amount for 
              carriers participating in Civil Reserve Air Fleet
    ``(a) In General.--The Secretary of Defense may award to air 
carriers participating in the Civil Reserve Air Fleet on a fiscal year 
basis a one-year contract for airlift services with a minimum purchase 
amount determined in accordance with this section.
    ``(b) Minimum Purchase Amount.--(1) The aggregate amount of the 
minimum purchase amount for all contracts awarded under subsection (a) 
for a fiscal year shall be based on forecast needs, but may not exceed 
the amount equal to 80 percent of the annual average expenditure of the 
Department of Defense for airlift during the five-fiscal year period 
ending in the fiscal year before the fiscal year for which such 
contracts are awarded.
    ``(2) In calculating the annual average expenditure of the 
Department of Defense for airlift for purposes of paragraph (1), the 
Secretary of Defense shall omit from the calculation any fiscal year 
exhibiting unusually high demand for airlift if the Secretary 
determines that the omission of such fiscal year from the calculation 
will result in a more accurate forecast of anticipated airlift for 
purposes of that paragraph.
    ``(3) The aggregate amount of the minimum purchase amount for all 
contracts awarded under subsection (a) for a fiscal year, as determined 
under paragraph (1), shall be allocated among all carriers awarded 
contracts under that subsection for such fiscal year in proportion to 
the commitments of such carriers to the Civil Reserve Air Fleet for 
such fiscal year.
    ``(c) Adjustment to Minimum Purchase Amount for Periods of 
Unavailability of Airlift.--In determining the minimum purchase amount 
payable under a contract under subsection (a) for airlift provided by a 
carrier during the fiscal year covered by such contract, the Secretary 
of Defense may adjust the amount allocated to the carrier under 
subsection (b)(3) to take into account periods during such fiscal year 
when services of the carrier are unavailable for usage by the 
Department of Defense, including during periods of refused business or 
suspended operations or when the carrier is placed in nonuse status 
pursuant to section 2640 of this title for safety issues.
    ``(d) Distribution of Amounts.--If any amount available under this 
section for the minimum purchase of airlift from a carrier for a fiscal 
year under a contract under subsection (a) is not utilized to purchase 
airlift from the carrier in such fiscal year, such amount shall be 
provided to the carrier before the first day of the following fiscal 
year.
    ``(e) Transfer of Funds.--At the beginning of each fiscal year, the 
Secretary of each military department shall transfer to the 
transportation working capital fund a percentage of the total amount 
anticipated to be required in such fiscal year for payment of minimum 
purchase amounts under all contracts awarded under subsection (a) for 
such fiscal year equivalent to the percentage of the anticipated use of 
airlift by such military department during such fiscal year from all 
carriers under contracts awarded under subsection (a) for such fiscal 
year.
    ``(f) Availability of Airlift.--(1) From the total amount of 
airlift available for a fiscal year under all contracts awarded under 
subsection (a) for such fiscal year, a military department shall be 
entitled to obtain a percentage of such airlift equivalent to the 
percentage of the contribution of the military department to the 
transportation working capital fund for such fiscal year under 
subsection (e).
    ``(2) A military department may transfer any entitlement to airlift 
under paragraph (1) to any other military department or to any other 
agency, element, or component of the Department of Defense.
    ``(g) Sunset.--The authorities in this section shall expire on 
December 31, 2015.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 931 of such title is amended by adding at the end the following 
new item:

``9515. Airlift services: minimum annual purchase amount for carriers 
                            participating in Civil Reserve Air 
                            Fleet.''.

SEC. 1027. PROVISION OF AIR FORCE SUPPORT AND SERVICES TO FOREIGN 
              MILITARY AND STATE AIRCRAFT.

    (a) Provision of Support and Services.--
            (1) In general.--Section 9626 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 9626. Aircraft supplies and services: foreign military or other 
              state aircraft
    ``(a) Provision of Supplies and Services on Reimbursable Basis.--
(1) The Secretary of the Air Force may, under such regulations as the 
Secretary may prescribe and when in the best interests of the United 
States, provide any of the supplies or services described in paragraph 
(2) to military and other state aircraft of a foreign country, on a 
reimbursable basis without an advance of funds, if similar supplies and 
services are furnished on a like basis to military aircraft and other 
state aircraft of the United States by the foreign country.
    ``(2) The supplies and services described in this paragraph are 
supplies and services as follows:
            ``(A) Routine airport services, including landing and 
        takeoff assistance, servicing aircraft with fuel, use of 
        runways, parking and servicing, and loading and unloading of 
        baggage and cargo.
            ``(B) Miscellaneous supplies, including Air Force-owned 
        fuel, provisions, spare parts, and general stores, but not 
        including ammunition.
    ``(b) Provision of Routine Airport Services on Non-Reimbursable 
Basis.--(1) Routine airport services may be provided under this section 
at no cost to a foreign country under circumstances as follows:
            ``(A) If such services are provided by Air Force personnel 
        and equipment without direct cost to the Air Force.
            ``(B) If such services are provided under an agreement with 
        the foreign country that provides for the reciprocal furnishing 
        by the foreign country of routine airport services to military 
        and other state aircraft of the United States without 
        reimbursement.
    ``(2) If routine airport services are provided under this section 
by a working-capital fund activity of the Air Force under section 2208 
of this title and such activity is not reimbursed directly for the 
costs incurred by the activity in providing such services by reason of 
paragraph (1)(B), the working-capital fund activity shall be reimbursed 
for such costs out of funds currently available to the Air Force for 
operation and maintenance.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 939 of such title is amended by striking 
        the item relating to section 9626 and inserting the following 
        new item:

``9626. Aircraft supplies and services: foreign military or other state 
                            aircraft.''.
    (b) Conforming Amendment.--Section 9629(3) of such title is amended 
by striking ``for aircraft of a foreign military or air attache''.

SEC. 1028. PARTICIPATION IN STRATEGIC AIRLIFT CAPABILITY PARTNERSHIP.

    (a) Authority to Participate in Partnership.--The Secretary of 
Defense may--
            (1) enter into a multilateral memorandum of understanding 
        authorizing the Strategic Airlift Capability Partnership to 
        conduct activities necessary to accomplish its purpose, 
        including--
                    (A) the acquisition, equipping, ownership, and 
                operation of strategic airlift aircraft; and
                    (B) the acquisition or transfer of airlift and 
                airlift-related services and supplies among members of 
                the Strategic Airlift Capability Partnership, or 
                between the Partnership and non-member countries or 
                international organizations, on a reimbursable basis or 
                by replacement-in-kind or exchange of airlift or 
                airlift-related services of an equal value; and
            (2) pay from funds available to the Department of Defense 
        for such purpose the United States equitable share of the 
        recurring and non-recurring costs of the activities and 
        operations of the Strategic Airlift Capability Partnership, 
        including costs associated with procurement of aircraft 
        components and spare parts, maintenance, facilities, and 
        training, and the costs of claims.
    (b) Authorities Under Partnership.--In carrying out the memorandum 
of understanding entered into under subsection (a), the Secretary of 
Defense may do the following:
            (1) Waive reimbursement of the United States for the cost 
        of the functions performed by Department of Defense personnel 
        with respect to the Strategic Airlift Capability Partnership as 
        follows:
                    (A) Auditing.
                    (B) Quality assurance.
                    (C) Inspection.
                    (D) Contract administration.
                    (E) Acceptance testing.
                    (F) Certification services.
                    (G) Planning, programming, and management services.
            (2) Waive the imposition of any surcharge for 
        administrative services provided by the United States that 
        would otherwise be chargeable against the Strategic Airlift 
        Capability Partnership.
            (3) Pay the salaries, travel, lodging, and subsistence 
        expenses of Department of Defense personnel assigned for duty 
        to the Strategic Airlift Capability Partnership without seeking 
        reimbursement or cost-sharing for such expenses.
    (c) Crediting of Receipts.--Any amount received by the United 
States in carrying out the memorandum of understanding entered into 
under subsection (a) shall be credited, as elected by the Secretary of 
Defense, to the following:
            (1) The appropriation, fund, or account used in incurring 
        the obligation for which such amount is received.
            (2) An appropriation, fund, or account currently providing 
        funds for the purposes for which such obligation was made.
    (d) Authority To Transfer Aircraft.--
            (1) In general.--The Secretary of Defense is authorized to 
        transfer one strategic airlift aircraft to the Strategic 
        Airlift Capability Partnership in accordance with the terms and 
        conditions of the memorandum of understanding entered into 
        under subsection (a).
            (2) Report.--Not later than 30 days before the date on 
        which the Secretary transfers a strategic airlift aircraft 
        under paragraph (1), the Secretary shall submit to the 
        congressional defense committees a report on the strategic 
        airlift aircraft to be transferred, including the type of 
        strategic airlift aircraft to be transferred and the tail 
        registration or serial number of such aircraft.
    (e) Strategic Airlift Capability Partnership Defined.--In this 
section the term ``Strategic Airlift Capability Partnership'' means the 
strategic airlift capability consortium established by the United 
States and other participating countries.

SEC. 1029. RESPONSIBILITY OF THE AIR FORCE FOR FIXED-WING SUPPORT OF 
              ARMY INTRA-THEATER LOGISTICS.

    The Secretary of Defense shall, acting through the Chairman of the 
Joint Chiefs of Staff, prescribe directives or instructions to provide 
that the Air Force shall have responsibility for the missions and 
functions of fixed-wing support for Army intra-theater logistics.

SEC. 1030. PROHIBITION ON SALE OF PARTS FOR F-14 FIGHTER AIRCRAFT.

    (a) Prohibition on Sale by Department of Defense.--
            (1) In general.--Except as provided in paragraph (2), the 
        Department of Defense may not sell (whether directly or 
        indirectly) any parts for F-14 fighter aircraft, whether 
        through the Defense Reutilization and Marketing Service or 
        through another agency or element of the Department.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to the sale of parts for F-14 fighter aircraft to a museum or 
        similar organization located in the United States that is 
        involved in the preservation of F-14 fighter aircraft for 
        historical purposes.
    (b) Prohibition on Export License.--No license for the export of 
parts for F-14 fighter aircraft to a non-United States person or entity 
may be issued by the United States Government.

                          Subtitle D--Reports

SEC. 1041. RENEWAL OF SUBMITTAL OF PLANS FOR PROMPT GLOBAL STRIKE 
              CAPABILITY.

    Section 1032(b)(1) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1605; 10 U.S.C. 113 
note) is amended by inserting ``and each of 2007, 2008, and 2009,'' 
after ``2004, 2005, and 2006,''.

SEC. 1042. REPORT ON THREATS TO THE UNITED STATES FROM UNGOVERNED 
              AREAS.

    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense and the Secretary of 
State shall jointly, in coordination with the Director of National 
Intelligence, submit to Congress a report on the threats posed to the 
United States from ungoverned areas, including the threats to the 
United States from terrorist groups and individuals located in such 
areas who direct their activities against the United States and its 
allies.
    (b) Elements.--The report required by subsection (a) shall include 
the following:
            (1) A description of the intelligence capabilities and 
        skills required by the United States Government to support 
        United States policy aimed at managing the threats described in 
        subsection (a), including, specifically, the technical, 
        linguistic, and analytical capabilities and the skills required 
        by the Department of Defense and the Department of State.
            (2) An assessment of the extent to which the Department of 
        Defense and the Department of State possess the capabilities 
        described in paragraph (1) as well as the necessary resources 
        and organization to support United States policy aimed at 
        managing the threats described in subsection (a).
            (3) A description of the extent to which the implementation 
        of Department of Defense Directive 3000.05, entitled ``Military 
        Support for Stability, Security, Transition, and Reconstruction 
        Operations'', will support United States policy for managing 
        such threats.
            (4) A description of the actions, if any, to be taken to 
        improve the capabilities and skills of the Department of 
        Defense and the Department of State described in paragraph (1), 
        and the schedule for implementing any actions so described.

SEC. 1043. STUDY ON NATIONAL SECURITY INTERAGENCY SYSTEM.

    (a) Study Required.--The Secretary of Defense shall enter into an 
agreement with an independent, non-profit, non-partisan organization to 
conduct a study on the national security interagency system.
    (b) Report.--The agreement entered into under subsection (a) shall 
require the organization to submit to Congress and the President a 
report containing the results of the study conducted pursuant to such 
agreement and any recommendations for changes to the national security 
interagency system (including legislative or regulatory changes) 
identified by the organization as a result of the study.
    (c) Submittal Date.--The agreement entered into under subsection 
(a) shall require the organization to submit the report required under 
subsection (a) not later than 180 days after the date on which the 
Secretary makes funds available to the organization under subsection 
(e) for purposes of the study.
    (d) National Security Interagency System Defined.--In this section, 
the term ``national security interagency system'' means the structures, 
mechanisms, and processes by which the departments, agencies, and 
elements of the Federal Government that have national security missions 
coordinate and integrate their policies, capabilities, expertise, and 
activities to accomplish such missions.
    (e) Funding.--
            (1) In general.--Of the amount authorized to be 
        appropriated by section 301(5) for operation and maintenance 
        for Defense-wide activities, not more than $3,000,000 may be 
        available to carry out this section.
            (2) Matching funding requirement.--The amount provided by 
        the Secretary for the agreement entered into under subsection 
        (a) may not exceed the value of contributions (whether money or 
        in-kind contributions) obtained and provided by the 
        organization for the study from non-government sources.

                       Subtitle E--Other Matters

SEC. 1061. REVISED NUCLEAR POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to clarify 
United States nuclear deterrence policy and strategy for the near term, 
the Secretary of Defense shall conduct a comprehensive review of the 
nuclear posture of the United States for the next 5 to 10 years. The 
Secretary shall conduct the review in consultation with the Secretary 
of Energy and the Secretary of State.
    (b) Elements of Review.--The nuclear posture review shall include 
the following elements:
            (1) The role of nuclear forces in United States military 
        strategy, planning, and programming.
            (2) The policy requirements and objectives for the United 
        States to maintain a safe, reliable, and credible nuclear 
        deterrence posture.
            (3) The relationship among United States nuclear deterrence 
        policy, targeting strategy, and arms control objectives.
            (4) The role that missile defense capabilities and 
        conventional strike forces play in determining the role and 
        size of nuclear forces.
            (5) The levels and composition of the nuclear delivery 
        systems that will be required for implementing the United 
        States national and military strategy, including any plans for 
        replacing or modifying existing systems.
            (6) The nuclear weapons complex that will be required for 
        implementing the United States national and military strategy, 
        including any plans to modernize or modify the complex.
            (7) The active and inactive nuclear weapons stockpile that 
        will be required for implementing the United States national 
        and military strategy, including any plans for replacing or 
        modifying warheads.
    (c) Report to Congress.--The Secretary of Defense shall submit to 
Congress, in unclassified and classified forms as necessary, a report 
on the results of the nuclear posture review conducted under this 
section. The report shall be submitted concurrently with the 
quadrennial defense review required to be submitted under section 118 
of title 10, United States Code, in 2009.
    (d) Sense of Congress.--It is the sense of Congress that the 
nuclear posture review conducted under this section should be used as a 
basis for establishing future United States arms control objectives and 
negotiating positions.

SEC. 1062. TERMINATION OF COMMISSION ON THE IMPLEMENTATION OF THE NEW 
              STRATEGIC POSTURE OF THE UNITED STATES.

    Section 1051 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3431) is repealed.

<DELETED>SEC. 1063. COMMUNICATIONS WITH THE COMMITTEES ON ARMED 
              SERVICES OF THE SENATE AND THE HOUSE OF 
              REPRESENTATIVES.</DELETED>

<DELETED>    (a) Requests of Committees.--The Director of the National 
Counterterrorism Center, the Director of a national intelligence 
center, or the head of any department, agency, or element of the 
intelligence community shall, not later than 15 days after receiving a 
request from the Committee on Armed Services of the Senate or the 
Committee on Armed Services of the House of Representatives for any 
intelligence assessment, report, estimate, legal opinion, or other 
intelligence information relating to matters within the jurisdiction of 
such Committee, make available to such committee such assessment, 
report, estimate, legal opinion, or other information, as the case may 
be.</DELETED>
<DELETED>    (b) Assertion of Privilege.--In response to a request 
covered by subsection (a), the Director of the National 
Counterterrorism Center, the Director of a national intelligence 
center, or the head of any department, agency, or element of the 
intelligence community shall provide the document or information 
covered by such request unless the President certifies that such 
document or information is not being provided because the President is 
asserting a privilege pursuant to the Constitution of the United 
States.</DELETED>
<DELETED>    (c) Independent Testimony of Intelligence Officials.--No 
officer, department, agency, or element within the Executive branch 
shall have any authority to require the head of any department, agency, 
or element of the intelligence community, or any designate of such a 
head--</DELETED>
        <DELETED>    (1) to receive permission to testify before the 
        Committee on Armed Services of the Senate or the Committee on 
        Armed Services of the House of Representatives; or</DELETED>
        <DELETED>    (2) to submit testimony, legislative 
        recommendations, or comments to any officer or agency of the 
        Executive branch for approval, comments, or review prior to the 
        submission of such recommendations, testimony, or comments to 
        the Committee on Armed Services of the Senate or the Committee 
        on Armed Services of the House of Representatives if such 
        testimony, legislative recommendations, or comments include a 
        statement indicating that the views expressed therein are those 
        of the head of the department, agency, or element of the 
        intelligence community that is making the submission and do not 
        necessarily represent the views of the 
        Administration.</DELETED>

<DELETED>SEC. 1064. REPEAL OF STANDARDS FOR DISQUALIFICATION FROM 
              ISSUANCE OF SECURITY CLEARANCES BY THE DEPARTMENT OF 
              DEFENSE.</DELETED>

<DELETED>    (a) Repeal.--Section 986 of title 10, United States Code, 
is repealed.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 49 of such title is amended by striking the item 
relating to section 986.</DELETED>

SEC. 1065. ADVISORY PANEL ON DEPARTMENT OF DEFENSE CAPABILITIES FOR 
              SUPPORT OF CIVIL AUTHORITIES AFTER CERTAIN INCIDENTS.

    (a) In General.--The Secretary of Defense shall establish an 
advisory panel to carry out an assessment of the capabilities of the 
Department of Defense to provide support to United States civil 
authorities in the event of a chemical, biological, radiological, 
nuclear, or high-yield explosive (CBRNE) incident.
    (b) Panel Matters.--
            (1) In general.--The advisory panel required by subsection 
        (a) shall consist of individuals appointed by the Secretary of 
        Defense (in consultation with the Chairmen and Ranking Members 
        of the Committees on Armed Services of the Senate and the House 
        of Representatives) from among private citizens of the United 
        States with expertise in the legal, operational, and 
        organizational aspects of the management of the consequences of 
        a chemical, biological, radiological, nuclear, or high-yield 
        explosive incident.
            (2) Deadline for appointment.--All members of the advisory 
        panel shall be appointed under this subsection not later than 
        30 days after the date on which the Secretary enters into the 
        contract required by subsection (c).
            (3) Initial meeting.--The advisory panel shall conduct its 
        first meeting not later than 30 days after the date that all 
        appointments to the panel have been made under this subsection.
            (4) Procedures.--The advisory panel shall carry out its 
        duties under this section under procedures established under 
        subsection (c) by the federally funded research and development 
        center with which the Secretary contracts under that 
        subsection. Such procedures shall include procedures for the 
        selection of a chairman of the advisory panel from among its 
        members.
    (c) Support of Federally Funded Research and Development Center.--
            (1) In general.--The Secretary of Defense shall enter into 
        a contract with a federally funded research and development 
        center for the provision of support and assistance to the 
        advisory panel required by subsection (a) in carrying out its 
        duties under this section. Such support and assistance shall 
        include the establishment of the procedures of the advisory 
        panel under subsection (b)(4).
            (2) Deadline for contract.--The Secretary shall enter into 
        the contract required by this subsection not later than 60 days 
        after the date of the enactment of this Act.
    (d) Duties of Panel.--The advisory panel required by subsection (a) 
shall--
            (1) evaluate the authorities and capabilities of the 
        Department of Defense to conduct operations in support to 
        United States civil authorities in the event of a chemical, 
        biological, radiological, nuclear, or high-yield explosive 
        incident, including the authorities and capabilities of the 
        military departments, the Defense Agencies, the combatant 
        commands, any supporting commands, and the reserve components 
        of the Armed Forces (including the National Guard in a Federal 
        and non-Federal status);
            (2) assess the adequacy of existing plans and programs of 
        the Department of Defense for training and equipping dedicated, 
        special, and general purposes forces for conducting operations 
        described in paragraph (1) across a broad spectrum of 
        scenarios, including current National Planning Scenarios as 
        applicable;
            (3) assess policies, directives, and plans of the 
        Department of Defense in support of civilian authorities in 
        managing the consequences of a chemical, biological, 
        radiological, nuclear, or high-yield explosive incident;
            (4) assess the adequacy of policies and structures of the 
        Department of Defense for coordination with other department 
        and agencies of the Federal Government, especially the 
        Department of Homeland Security, the Department of Energy, the 
        Department of Justice, and the Department of Health and Human 
        Services, in the provision of support described in paragraph 
        (1);
            (5) assess the adequacy and currency of information 
        available to the Department of Defense, whether directly or 
        through other departments and agencies of the Federal 
        Government, from State and local governments in circumstances 
        where the Department provides support described in paragraph 
        (1) because State and local response capabilities are not fully 
        adequate for a comprehensive response;
            (6) assess the equipment capabilities and needs of the 
        Department of Defense to provide support described in paragraph 
        (1); and
            (7) develop recommendations for modifying the capabilities, 
        plans, policies, equipment, and structures evaluated or 
        assessed under this subsection in order to improve the 
        provision by the Department of Defense of the support described 
        in paragraph (1).
    (e) Cooperation of Other Agencies.--
            (1) In general.--The advisory panel required by subsection 
        (a) may secure directly from the Department of Defense, the 
        Department of Homeland Security, the Department of Energy, the 
        Department of Justice, the Department of Health and Human 
        Services, and any other department or agency of the Federal 
        Government information that the panel considers necessary for 
        the panel to carry out its duties.
            (2) Cooperation.--The Secretary of Defense, the Secretary 
        of Homeland Secretary, the Secretary of Energy, the Attorney 
        General, the Secretary of Health and Human Services, and any 
        other official of the United States shall provide the advisory 
        panel with full and timely cooperation in carrying out its 
        duties under this section.
    (f) Report.--Not later than 12 months after the date of the initial 
meeting of the advisory panel required by subsection (a), the advisory 
panel shall submit to the Secretary of Defense, and to the Committees 
on Armed Services of the Senate and the House of Representatives, a 
report on activities under this section. The report shall set forth--
            (1) the findings, conclusions, and recommendations of the 
        advisory panel for improving the capabilities of the Department 
        of Defense to provide support to United States civil 
        authorities in the event of a chemical, biological, 
        radiological, nuclear, or high-yield explosive incident; and
            (2) such other findings, conclusions, and recommendations 
        for improving the capabilities of the Department for homeland 
        defense as the advisory panel considers appropriate.

SEC. 1066. SENSE OF CONGRESS ON THE WESTERN HEMISPHERE INSTITUTE FOR 
              SECURITY COOPERATION.

    It is the sense of Congress that--
            (1) the education and training facility of the Department 
        of Defense known as the Western Hemisphere Institute for 
        Security Cooperation has the mission of providing professional 
        education and training to eligible military personnel, law 
        enforcement officials, and civilians of nations of the Western 
        Hemisphere that support the democratic principles set forth in 
        the Charter of the Organization of American States, while 
        fostering mutual knowledge, transparency, confidence, and 
        cooperation among the participating nations and promoting 
        democratic values and respect for human rights; and
            (2) therefore, the Institute is an invaluable education and 
        training facility which continues to foster a spirit of 
        partnership and interoperability among the United States 
        military and the militaries of participating nations.

SEC. 1067. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES CODE, 
              ARISING FROM ENACTMENT OF THE INTELLIGENCE REFORM AND 
              TERRORISM PREVENTION ACT OF 2004.

    (a) References to Head of Intelligence Community.--
            (1) References.--Title 10, United States Code, is amended 
        by striking ``Director of Central Intelligence'' each place it 
        appears in the following provisions and inserting ``Director of 
        National Intelligence'':
                    (A) Section 192(c)(2).
                    (B) Section 193.
                    (C) Section 201(a).
                    (D) Section 201(c)(1).
                    (E) Section 425(a).
                    (F) Section 426.
                    (G) Section 441.
                    (H) Section 443(d).
                    (I) Section 2273(b)(1).
                    (J) Section 2723(a).
            (2) Caption amendments.--Title 10, United States Code, is 
        further amended by striking ``Director of Central 
        Intelligence'' each place it appears in the heading of the 
        following provisions and inserting ``Director of National 
        Intelligence'':
                    (A) Section 441(c).
                    (B) Section 443(d).
    (b) References to Head of Central Intelligence Agency.--Title 10, 
United States Code, is further amended by striking ``Director of 
Central Intelligence'' each place it appears in the following 
provisions and inserting ``Director of the Central Intelligence 
Agency'':
            (1) Section 431(b)(1).
            (2) Section 444.
            (3) Section 1089(g)(1).
    (c) Other Amendments.--Section 201 of title 10, United States Code, 
is further amended--
            (1) in paragraph (1) of subsection (b), by striking 
        ``Before submitting'' and all that follows and inserting ``In 
        the event of a vacancy in a position referred to in paragraph 
        (2), the making by the Secretary of Defense of a recommendation 
        to the President regarding the appointment of an individual to 
        such position shall be governed by the provisions of section 
        106(b) of the National Security Act of 1947 (50 U.S.C. 403-
        6(b)), relating to the concurrence of the Director of National 
        Intelligence in appointments to positions in the intelligence 
        community.''; and
            (2) in subsection (c), by striking ``National Foreign 
        Intelligence Program'' and inserting ``National Intelligence 
        Program''.

SEC. 1068. ESTABLISHMENT OF NATIONAL FOREIGN LANGUAGE COORDINATION 
              COUNCIL.

    (a) Establishment.--There is established in the Executive Office of 
the President a National Foreign Language Coordination Council (in this 
section referred to as the ``Council'').
    (b) Membership.--The Council shall consist of the following members 
or their designees:
            (1) The National Language Director, who shall serve as the 
        chairperson of the Council.
            (2) The Secretary of Education.
            (3) The Secretary of Defense.
            (4) The Secretary of State.
            (5) The Secretary of Homeland Security.
            (6) The Attorney General.
            (7) The Director of National Intelligence.
            (8) The Secretary of Labor.
            (9) The Director of the Office of Personnel Management.
            (10) The Director of the Office of Management and Budget.
            (11) The Secretary of Commerce.
            (12) The Secretary of Health and Human Services.
            (13) The Secretary of the Treasury.
            (14) The Secretary of Housing and Urban Development.
            (15) The Secretary of Agriculture.
            (16) The Chairman and President of the Export-Import Bank 
        of the United States.
            (17) The heads of such other Federal agencies as the 
        Council considers appropriate.
    (c) Responsibilities.--
            (1) In general.--The Council shall be charged with--
                    (A) overseeing, coordinating, and implementing the 
                National Security Language Initiative;
                    (B) developing a national foreign language 
                strategy, building upon the efforts of the National 
                Security Language Initiative, within 18 months after 
                the date of the enactment of this Act, in consultation 
                with--
                            (i) State and local government agencies;
                            (ii) academic sector institutions;
                            (iii) foreign language related interest 
                        groups;
                            (iv) business associations;
                            (v) industry;
                            (vi) heritage associations; and
                            (vii) other relevant stakeholders;
                    (C) conducting a survey of the status of Federal 
                agency foreign language and area expertise and agency 
                needs for such expertise; and
                    (D) monitoring the implementation of such strategy 
                through--
                            (i) application of current and recently 
                        enacted laws; and
                            (ii) the promulgation and enforcement of 
                        rules and regulations.
            (2) Strategy content.--The strategy developed under 
        paragraph (1) shall include--
                    (A) recommendations for amendments to title 5, 
                United States Code, in order to improve the ability of 
                the Federal Government to recruit and retain 
                individuals with foreign language proficiency and 
                provide foreign language training for Federal 
                employees;
                    (B) the long term goals, anticipated effect, and 
                needs of the National Security Language Initiative;
                    (C) identification of crucial priorities across all 
                sectors;
                    (D) identification and evaluation of Federal 
                foreign language programs and activities, including--
                            (i) any duplicative or overlapping programs 
                        that may impede efficiency;
                            (ii) recommendations on coordination;
                            (iii) program enhancements; and
                            (iv) allocation of resources so as to 
                        maximize use of resources;
                    (E) needed national policies and corresponding 
                legislative and regulatory actions in support of, and 
                allocation of designated resources to, promising 
                programs and initiatives at all levels (Federal, State, 
                and local), especially in the less commonly taught 
                languages that are seen as critical for national 
                security and global competitiveness during the next 20 
                to 50 years;
                    (F) effective ways to increase public awareness of 
                the need for foreign language skills and career paths 
                in all sectors that can employ those skills, with the 
                objective of increasing support for foreign language 
                study among--
                            (i) Federal, State, and local leaders;
                            (ii) students;
                            (iii) parents;
                            (iv) elementary, secondary, and 
                        postsecondary educational institutions; and
                            (v) employers;
                    (G) recommendations for incentives for related 
                educational programs, including foreign language 
                teacher training;
                    (H) coordination of cross-sector efforts, including 
                public-private partnerships;
                    (I) coordination initiatives to develop a strategic 
                posture for language research and recommendations for 
                funding for applied foreign language research into 
                issues of national concern;
                    (J) recommendations for assistance for--
                            (i) the development of foreign language 
                        achievement standards; and
                            (ii) corresponding assessments for the 
                        elementary, secondary, and postsecondary 
                        education levels, including the National 
                        Assessment of Educational Progress in foreign 
                        languages;
                    (K) recommendations for development of--
                            (i) language skill-level certification 
                        standards;
                            (ii) frameworks for pre-service and 
                        professional development study for those who 
                        teach foreign language;
                            (iii) suggested graduation criteria for 
                        foreign language studies and appropriate non-
                        language studies, such as--
                                    (I) international business;
                                    (II) national security;
                                    (III) public administration;
                                    (IV) health care;
                                    (V) engineering;
                                    (VI) law;
                                    (VII) journalism; and
                                    (VIII) sciences;
                    (L) identification of and means for replicating 
                best practices at all levels and in all sectors, 
                including best practices from the international 
                community; and
                    (M) recommendations for overcoming barriers in 
                foreign language proficiency.
            (3) National security language initiative.--The term 
        ``National Security Language Initiative'' means the 
        comprehensive national plan of the President announced on 
        January 5, 2006, and under the direction of the Secretaries of 
        State, Education, and Defense and the Director of National 
        Intelligence to expand foreign language education for national 
        security purposes in the United States.
    (d) Submission of Strategy to President and Congress.--Not later 
than 18 months after the date of enactment of this section, the Council 
shall prepare and transmit to the President and the relevant committees 
of Congress the strategy required under subsection (c).
    (e) Meetings.--The Council may hold such meetings, and sit and act 
at such times and places, as the Council considers appropriate, but 
shall meet in formal session at least 2 times a year. State and local 
government agencies and other organizations (such as academic sector 
institutions, foreign language-related interest groups, business 
associations, industry, and heritage community organizations) shall be 
invited, as appropriate, to public meetings of the Council at least 
once a year.
    (f) Staff.--
            (1) In general.--The Director may--
                    (A) appoint, without regard to the provisions of 
                title 5, United States Code, governing the competitive 
                service, such personnel as the Director considers 
                necessary; and
                    (B) compensate such personnel without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of that title.
            (2) Detail of government employees.--Upon request of the 
        Council, any Federal Government employee may be detailed to the 
        Council without reimbursement, and such detail shall be without 
        interruption or loss of civil service status or privilege
            (3) Experts and consultants.--With the approval of the 
        Council, the Director may procure temporary and intermittent 
        services under section 3109(b) of title 5, United States Code.
            (4) Travel expenses.--Council members and staff shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Council.
            (5) Security clearance.--
                    (A) In general.--Subject to subparagraph (B), the 
                appropriate Federal agencies or departments shall 
                cooperate with the Council in expeditiously providing 
                to the Council members and staff appropriate security 
                clearances to the extent possible pursuant to existing 
                procedures and requirements.
                    (B) Exception.--No person shall be provided with 
                access to classified information under this section 
                without the appropriate required security clearance 
                access.
            (6) Compensation.--The rate of pay for any employee of the 
        Council (including the Director) may not exceed the rate 
        payable for level V of the Executive Schedule under section 
        5316 of title 5, United States Code.
    (g) Powers.--
            (1) Delegation.--Any member or employee of the Council may, 
        if authorized by the Council, take any action that the Council 
        is authorized to take in this section.
            (2) Information.--
                    (A) Council authority to secure.--The Council may 
                secure directly from any Federal agency such 
                information, consistent with Federal privacy laws, 
                including The Family Educational Rights and Privacy Act 
                (20 U.S.C. 1232g) and Department of Education's General 
                Education Provisions Act (20 U.S.C. 1232(h)), the 
                Council considers necessary to carry out its 
                responsibilities.
                    (B) Requirement to furnish requested information.--
                Upon request of the Director, the head of such agency 
                shall furnish such information to the Council.
            (3) Donations.--The Council may accept, use, and dispose of 
        gifts or donations of services or property.
            (4) Mail.--The Council may use the United States mail in 
        the same manner and under the same conditions as other Federal 
        agencies.
    (h) Conferences, Newsletter, and Website.--In carrying out this 
section, the Council--
            (1) may arrange Federal, regional, State, and local 
        conferences for the purpose of developing and coordinating 
        effective programs and activities to improve foreign language 
        education;
            (2) may publish a newsletter concerning Federal, State, and 
        local programs that are effectively meeting the foreign 
        language needs of the nation; and
            (3) shall create and maintain a website containing 
        information on the Council and its activities, best practices 
        on language education, and other relevant information.
    (i) Annual Report.--
            (1) Requirement.--Not later than 90 days after the date of 
        the enactment of this Act, and annually thereafter, the Council 
        shall prepare and transmit to the President and the relevant 
        committees of Congress a report that describes--
                    (A) the activities of the Council;
                    (B) the efforts of the Council to improve foreign 
                language education and training; and
                    (C) impediments to the use of a National Foreign 
                Language program, including any statutory and 
                regulatory restrictions.
            (2) Relevant committees.--For purposes of paragraph (1), 
        the relevant committees of Congress include--
                    (A) in the House of Representatives--
                            (i) the Committee on Appropriations;
                            (ii) the Committee on Armed Services;
                            (iii) the Committee on Education and Labor;
                            (iv) the Committee on Oversight and 
                        Government Reform;
                            (v) the Committee on Small Business;
                            (vi) the Committee on Foreign Affairs; and
                            (vii) the Permanent Select Committee on 
                        Intelligence;
                    (B) in the Senate--
                            (i) the Committee on Appropriations;
                            (ii) the Committee on Armed Services;
                            (iii) the Committee on Health, Education, 
                        Labor, and Pensions;
                            (iv) the Committee on Homeland Security and 
                        Governmental Affairs;
                            (v) the Committee on Foreign Relations; and
                            (vi) the Select Committee on Intelligence.
    (j) Establishment of a National Language Director.--
            (1) In general.--There is established a National Language 
        Director who shall be appointed by the President. The National 
        Language Director shall be a nationally recognized individual 
        with credentials and abilities across the sectors to be 
        involved with creating and implementing long-term solutions to 
        achieving national foreign language and cultural competency.
            (2) Responsibilities.--The National Language Director 
        shall--
                    (A) develop and monitor the implementation of a 
                national foreign language strategy, built upon the 
                efforts of the National Security Language Initiative, 
                across all sectors;
                    (B) establish formal relationships among the major 
                stakeholders in meeting the needs of the Nation for 
                improved capabilities in foreign languages and cultural 
                understanding, including Federal, State, and local 
                government agencies, academia, industry, labor, and 
                heritage communities; and
                    (C) coordinate and lead a public information 
                campaign that raises awareness of public and private 
                sector careers requiring foreign language skills and 
                cultural understanding, with the objective of 
                increasing interest in and support for the study of 
                foreign languages among national leaders, the business 
                community, local officials, parents, and individuals.
    (k) Encouragement of State Involvement.--
            (1) State contact persons.--The Council shall consult with 
        each State to provide for the designation by each State of an 
        individual to serve as a State contact person for the purpose 
        of receiving and disseminating information and communications 
        received from the Council.
            (2) State interagency councils and lead agencies.--Each 
        State is encouraged to establish a State interagency council on 
        foreign language coordination or designate a lead agency for 
        the State for the purpose of assuming primary responsibility 
        for coordinating and interacting with the Council and State and 
        local government agencies as necessary.
    (l) Congressional Notification.--The Council shall provide to 
Congress such information as may be requested by Congress, through 
reports, briefings, and other appropriate means.

SEC. 1069. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS OF AIRCRAFT UNDER 
              CONTRACT WITH THE ARMED FORCES.

    (a) Definition of Public Aircraft.--Section 40102(a)(41)(E) of 
title 49, United States Code, is amended--
            (1) by inserting ``or an operational support service'' 
        after ``transportation''; and
            (2) by adding at the end the following new sentence: ``The 
        term `an operational support service' means a mission performed 
        by an aircraft operator that uses fixed or rotary winged 
        aircraft to provide a service other than transportation.''.
    (b) Armed Forces Operational Mission.--Section 40125(c) of such 
title is amended--
            (1) in paragraph (1)(C), by inserting ``or an operational 
        support service'' after ``transportation''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Compliance with federal aviation regulations.--If the 
        Secretary of Defense (or the Secretary of the department in 
        which the Coast Guard is operating) does not make a designation 
        under paragraph (1)(C) with regard to a chartered aircraft, the 
        transportation or operational support service provided to the 
        armed forces by such aircraft shall be in compliance with the 
        Federal Aviation Regulations under title 14, Code of Federal 
        Regulations.''.
    (c) Technical Corrections.--
            (1) Section 40125(b) of such title is amended by striking 
        ``40102(a)(37)'' and inserting ``40102(a)(41)''.
            (2) Section 40125(c)(1) of such title is amended by 
        striking ``40102(a)(37)(E)'' appears and inserting 
        ``40102(a)(41)(E)''.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

SEC. 1101. COMPENSATION OF FEDERAL WAGE SYSTEM EMPLOYEES FOR CERTAIN 
              TRAVEL HOURS.

    Section 5544(a) of title 5, United States Code, is amended in the 
third sentence in the matter following paragraph (3) by inserting ``, 
including travel by the employee to such event and the return of the 
employee from such event to the employee's official duty station,'' 
after ``event''.

SEC. 1102. RETIREMENT SERVICE CREDIT FOR SERVICE AS CADET OR MIDSHIPMAN 
              AT A MILITARY SERVICE ACADEMY.

    (a) Civil Service Retirement System.--Section 8331(13) of title 5, 
United States Code, is amended by striking ``but'' and inserting ``and 
includes service as a cadet at the United States Military Academy, the 
United States Air Force Academy, or the United States Coast Guard 
Academy, or as a midshipman at the United States Naval Academy, but''.
    (b) Federal Employees' Retirement System.--Section 8401(31) of such 
title is amended by striking ``but'' and inserting ``and includes 
service as a cadet at the United States Military Academy, the United 
States Air Force Academy, or the United States Coast Guard Academy, or 
as a midshipman at the United States Naval Academy, but''.
    (c) Applicability.--The amendments made by this section shall apply 
to--
            (1) any annuity, eligibility for which is based upon a 
        separation occurring before, on, or after the date of enactment 
        of this Act; and
            (2) any period of service as a cadet at the United States 
        Military Academy, the United States Air Force Academy, or the 
        United States Coast Guard Academy, or as a midshipman at the 
        United States Naval Academy, occurring before, on, or after the 
        date of enactment of this Act.

SEC. 1103. CONTINUATION OF LIFE INSURANCE COVERAGE FOR FEDERAL 
              EMPLOYEES CALLED TO ACTIVE DUTY.

    Section 8706(b) of title 5, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5) In the case of an employee enrolled in life insurance under 
this chapter who is a member of a reserve component of the armed forces 
called or ordered to active duty, is placed on leave without pay to 
perform active duty pursuant to such call or order, and serves on 
active duty pursuant to such call or order for a period of more than 30 
consecutive days, the life insurance of the employee under this chapter 
may continue for up to 24 months after discontinuance of pay by reason 
of the performance of such active duty.''.

SEC. 1104. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

    (a) Exclusion of Wage-Grade Employees.--Subsection (b) of section 
9902 of title 5, United States Code, is amended--
            (1) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (5), (6), and (7), respectively; and
            (2) by inserting after paragraph (3) the following new 
        paragraph (4):
            ``(4) not apply to any prevailing rate employees, as 
        defined in section 5342(a)(2);''.
    (b) Clarification of Requirements Regarding Labor-Management 
Relations.--
            (1) In general.--Such section is further amended by 
        striking subsection (m).
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (f)(1)(D)(i), by inserting 
                ``subject to the requirements of chapter 71,'' before 
                ``develop a method''; and
                    (B) in subsection (g)(2)--
                            (i) in subparagraph (B), by inserting 
                        ``and'' at the end;
                            (ii) in subparagraph (C), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking subparagraph (D).
            (3) Construction of pay establishment or adjustment.--
        Subsection (e) of such section is amended by adding at the end 
        the following new paragraph:
    ``(6) Any rate of pay established or adjusted in accordance with 
the requirements of this section shall be a matter covered by section 
7103(a)(14)(C) of this title.''.

SEC. 1105. AUTHORITY TO WAIVE LIMITATION ON PREMIUM PAY FOR FEDERAL 
              CIVILIAN EMPLOYEES WORKING OVERSEAS UNDER AREAS OF UNITED 
              STATES CENTRAL COMMAND.

    (a) Waiver Authority.--
            (1) In general.--Notwithstanding section 5547 of title 5, 
        United States Code, during 2008, the head of an Executive 
        agency (as that term is defined in section 105 of title 5, 
        United States Code) may waive limitations on total 
        compensation, including limitations on the aggregate of basic 
        pay and premium pay payable in a calendar year, to an employee 
        who performs work while in an overseas location that is in the 
        area of responsibility of the Commander of the United States 
        Central Command in direct support of, or directly related to--
                    (A) a military operation, including a contingency 
                operation; or
                    (B) an operation in response to a declared 
                emergency.
            (2) Limitation.--The total compensation payable to an 
        employee pursuant to a waiver under this subsection in a 
        calendar year may not exceed $212,100.
    (b) Additional Pay Not Considered Basic Pay.--To the extent that a 
waiver under subsection (a) results in payment of additional premium 
pay of a type that is normally creditable as basic pay for retirement 
or any other purpose, such additional pay shall not be considered to be 
basic pay for any purpose, nor shall such additional pay be used in 
computing a lump-sum payment for accumulated and accrued annual leave 
under section 5551 of title 5, United States Code.
    (c) Regulations.--The Director of the Office of Personnel 
Management may prescribe regulations to ensure appropriate consistency 
among heads of Executive agencies in the exercise of the authority 
granted by this section.

SEC. 1106. AUTHORITY FOR INCLUSION OF CERTAIN OFFICE OF DEFENSE 
              RESEARCH AND ENGINEERING POSITIONS IN EXPERIMENTAL 
              PERSONNEL PROGRAM FOR SCIENTIFIC AND TECHNICAL PERSONNEL.

    Section 1101(b)(1) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding after subparagraph (C) the following new 
        subparagraph (D):
                    ``(D) not more than a total of 20 scientific and 
                engineering positions in the Office of the Director of 
                Defense Research and Engineering;''.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

SEC. 1201. AUTHORITY TO EQUIP AND TRAIN FOREIGN PERSONNEL TO ASSIST IN 
              ACCOUNTING FOR MISSING UNITED STATES PERSONNEL.

    (a) In General.--Chapter 20 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 408. Equipment and training of foreign personnel to assist in 
              Department of Defense accounting for missing United 
              States personnel
    ``(a) In General.--The Secretary of Defense may, with the 
concurrence of the Secretary of State, provide assistance to any 
foreign nation to assist the Department of Defense with recovery of and 
accounting for missing United States personnel.
    ``(b) Types of Assistance.--The assistance provided under 
subsection (a) may include the following:
            ``(1) Equipment.
            ``(2) Supplies.
            ``(3) Services.
            ``(4) Training of personnel.
    ``(c) Limitation.--The amount of assistance provided under this 
section in any fiscal year may not exceed $1,000,000.
    ``(d) Construction With Other Assistance.--The authority to provide 
assistance under this section is in addition to any other authority to 
provide assistance to foreign nations under law.
    ``(e) Annual Reports.--(1) Not later than December 31 each year, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on the assistance provided under this section 
during the fiscal year ending in such year.
    ``(2) Each report under paragraph (1) shall include, for the fiscal 
year covered by such report, the following:
            ``(A) A statement of each foreign nation provided 
        assistance under this section.
            ``(B) For each nation so provided assistance, a description 
        of the type and amount of such assistance.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 20 of such title is amended by adding at the end the following 
new item:

``408. Equipment and training of foreign personnel to assist in 
                            Department of Defense accounting for 
                            missing United States personnel.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 1202. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR SECURITY AND 
              STABILIZATION ASSISTANCE.

    (a) Increase in Amount of Authorized Assistance.--Subsection (b) of 
section 1207 of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163; 119 Stat. 3458) is amended by striking 
``$100,000,000'' and inserting ``$200,000,000''.
    (b) Program for Assistance.--Such section is further amended--
            (1) by redesignating subsections (d), (e), and (f) as 
        subsection (e), (f), and (g), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Formulation and Implementation of Program for Assistance.--
The Secretary of State shall coordinate with the Secretary of Defense 
in the formulation and implementation of a program of reconstruction, 
security, or stabilization assistance to a foreign country that 
involves the provision of services or transfer of defense articles or 
funds under subsection (a).''.
    (c) One-Year Extension.--Subsection (g) of such section, as 
redesignated by subsection (b) of this section, is amended by striking 
``September 30, 2007'' and inserting ``September 30, 2008''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 1203. COMMANDERS' EMERGENCY RESPONSE PROGRAM.

    (a) Authority for Fiscal Year 2008.--During fiscal year 2008, from 
funds made available to the Department of Defense for operation and 
maintenance for such fiscal year, not to exceed $977,441,000 may be 
used by the Secretary of Defense in such fiscal year to provide funds--
            (1) for the Commanders' Emergency Response Program in Iraq 
        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; and
            (2) for a similar program to assist the people of 
        Afghanistan.
    (b) Waiver Authority.--For purposes of exercising the authority 
provided by this section or any other provision of law making funds 
available for the Commanders' Emergency Response Program in Iraq or any 
similar program to assist the people of Afghanistan, the Secretary may 
waive any provision of law not contained in this section that would 
(but for the waiver) prohibit, restrict, limit, or otherwise constrain 
the exercise of that authority.
    (c) Quarterly Reports.--Not later than 15 days after the end of 
each fiscal-year quarter of fiscal year 2008, the Secretary 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 referred to in subsection (a).
    (d) Submittal of Modifications of Guidance.--In the event any 
modification is made after the date of the enactment of this Act in the 
guidance issued to the Armed Forces by the Under Secretary of Defense 
(Comptroller) on February 18, 2005, concerning the allocation of funds 
through the Commanders' Emergency Response Program in Iraq and any 
similar program to assist the people of Afghanistan, the Secretary 
shall submit to the congressional defense committees a copy of such 
modification not later than 15 days after the date of such 
modification.

SEC. 1204. GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON GLOBAL PEACE 
              OPERATIONS INITIATIVE.

    (a) Report Required.--Not later than March 1, 2008, the Comptroller 
General of the United States shall submit to the congressional defense 
committees, the Committee on Foreign Relations of the Senate, and the 
Committee on Foreign Affairs of the House of Representatives a report 
assessing the Global Peace Operations Initiative.
    (b) Content.--The report required under subsection (a) shall 
include the following:
            (1) An assessment of whether, and to what extent, the 
        Global Peace Operations Initiative has met the goals set by the 
        President at the inception of the program in 2004.
            (2) Which goals, if any, remain unfulfilled.
            (3) A description of activities conducted by each member 
        state of the Group of Eight (G-8), including the approximate 
        cost of the activities, and the approximate percentage of the 
        total monetary value of the activities conducted by each G-8 
        member, including the United States, as well as efforts by the 
        President to seek contributions or participation by other G-8 
        members.
            (4) A description of any activities conducted by non-G-8 
        members, or other organizations and institutions, as well as 
        any efforts by the President to solicit contributions or 
        participation.
            (5) A description of the extent to which the Global Peace 
        Operations Initiative has had global participation.
            (6) A description of the administration of the program by 
        the Department of State and Department of Defense, including--
                    (A) whether each Department should concentrate 
                administration in one office or bureau, and if so, 
                which one;
                    (B) the extent to which the two Departments 
                coordinate and the quality of their coordination; and
                    (C) the extent to which contractors are used and an 
                assessment of the quality and timeliness of the results 
                achieved by the contractors, and whether the United 
                States Government might have achieved similar or better 
                results without contracting out functions.
            (7) A description of the metrics, if any, that are used by 
        the President and the G-8 to measure progress in implementation 
        of the Global Peace Operations Initiative, including--
                    (A) assessments of the quality and sustainability 
                of the training of individual soldiers and units;
                    (B) the extent to which the G-8 and participating 
                countries maintain records or databases of trained 
                individuals and units and conduct inspections to 
                measure and monitor the continued readiness of such 
                individuals and units;
                    (C) the extent to which the individuals and units 
                are equipped and remain equipped to deploy in peace 
                operations; and
                    (D) the extent to which, the timeline by which, and 
                how individuals and units can be mobilized for peace 
                operations.
            (8) The extent to which, the timeline by which, and how 
        individuals and units can be and are being deployed to peace 
        operations.
            (9) An assessment of whether individuals and units trained 
        under the Global Peace Operations Initiative have been utilized 
        in peace operations subsequent to receiving training under the 
        Initiative, whether they will be deployed to upcoming 
        operations in Africa and elsewhere, and the extent to which 
        such individuals and units would be prepared to deploy and 
        participate in such peace operations.
            (10) Recommendations as to whether participation in the 
        Global Peace Operations Initiative should require reciprocal 
        participation by countries in peace operations.
            (11) Any additional measures that could be taken to enhance 
        the effectiveness of the Global Peace Operations Initiative in 
        terms of--
                    (A) achieving its stated goals; and
                    (B) ensuring that individuals and units trained as 
                part of the Initiative are regularly participating in 
                peace operations.

             Subtitle B--Other Authorities and Limitations

SEC. 1211. COOPERATIVE OPPORTUNITIES DOCUMENTS UNDER COOPERATIVE 
              RESEARCH AND DEVELOPMENT AGREEMENTS WITH NATO 
              ORGANIZATIONS AND OTHER ALLIED AND FRIENDLY FOREIGN 
              COUNTRIES.

    Section 2350a(e) of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(A)'';
                    (B) by striking ``an arms cooperation opportunities 
                document'' and inserting ``a cooperative opportunities 
                document before the first milestone or decision 
                point''; and
                    (C) by striking subparagraph (B); and
            (2) in paragraph (2), by striking ``An arms cooperation 
        opportunities document'' and inserting ``A cooperative 
        opportunities document''.

SEC. 1212. EXTENSION AND EXPANSION OF TEMPORARY AUTHORITY TO USE 
              ACQUISITION AND CROSS-SERVICING AGREEMENTS TO LEND 
              MILITARY EQUIPMENT FOR PERSONNEL PROTECTION AND 
              SURVIVABILITY.

    (a) Expansion to Nations Engaged in Certain Peacekeeping 
Operations.--Subsection (a) of section 1202 of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
Stat. 2412) is amended--
            (1) in paragraph (1), by inserting ``or participating in 
        combined operations with the United States as part of a 
        peacekeeping operation under the Charter of the United Nations 
        or another international agreement'' after ``Iraq or 
        Afghanistan''; and
            (2) in paragraph (3) by inserting ``, or in a peacekeeping 
        operation described in paragraph (1), as applicable,'' after 
        ``Iraq or Afghanistan''.
    (b) One-Year Extension.--Subsection (e) of such section is amended 
by striking ``September 30, 2008'' and inserting ``September 30, 
2009''.
    (c) Conforming Amendment.--The heading of such section is amended 
by striking ``foreign forces in iraq and afghanistan'' and inserting 
``certain foreign forces''.

SEC. 1213. ACCEPTANCE OF FUNDS FROM THE GOVERNMENT OF PALAU FOR COSTS 
              OF MILITARY CIVIC ACTION TEAMS.

    Section 104(a) of Public Law 99-658 (48 U.S.C. 1933(a)) is 
amended--
            (1) by inserting ``(1)'' before ``In recognition''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary of Defense may accept from the Government of 
Palau the amount available for the use of the Government of Palau under 
paragraph (1). Any amount so accepted by the Secretary under this 
paragraph shall be credited to the appropriation or account available 
to the Department of Defense for the Civic Action Team with respect to 
which such amount is so accepted. Amounts so credited shall be merged 
with the appropriation or account to which credited, and shall be 
available to the Civic Action Team for the same purposes, and subject 
to the same conditions and limitations, as the appropriation or account 
with which merged.''.

SEC. 1214. EXTENSION OF PARTICIPATION OF THE DEPARTMENT OF DEFENSE IN 
              MULTINATIONAL MILITARY CENTERS OF EXCELLENCE.

    (a) Extension of Participation.--Section 1205 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364; 120 Stat. 2416) is amended--
            (1) in subsection (a), by striking ``fiscal year 2007'' and 
        inserting ``during fiscal years 2007 and 2008''; and
            (2) in subsection (e)(2), by inserting ``or 2008'' after 
        ``in fiscal year 2007''.
    (b) Reporting Requirements.--Subsection (g) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``October 31, 2007,'' and inserting 
                ``October 31 of each of 2007 and 2008,''; and
                    (B) by striking ``fiscal year 2007'' and inserting 
                ``fiscal year 2007 or 2008, as applicable''; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``The report'' and 
                        inserting ``Each report''; and
                            (ii) by inserting ``, for the fiscal year 
                        covered by such report,'' after ``shall 
                        include''; and
                    (B) in subparagraph (A), by striking ``fiscal year 
                2007''.

SEC. 1215. LIMITATION ON ASSISTANCE TO THE GOVERNMENT OF THAILAND.

    (a) Limitation.--Notwithstanding any other provision of law, no 
funds authorized to be appropriated by this Act may be obligated or 
expended to provide direct assistance to the Government of Thailand 
unless the President certifies to the congressional defense committees 
that a democratically-elected government has taken office in Thailand 
on or after October 1, 2007.
    (b) Exception.--The limitation in subsection (a) shall not apply 
with respect to funds as follows:
            (1) Amounts authorized to be appropriated for Overseas 
        Humanitarian, Disaster, and Civic Aid.
            (2) Amounts otherwise authorized to be appropriated by this 
        Act and available for humanitarian or emergency assistance for 
        other nations.
    (c) Waiver.--The President may waive the limitation in subsection 
(a) if the President certifies to the congressional defense committees 
in writing that the waiver of the limitation is in the national 
security interests of the United States.

SEC. 1216. PRESIDENTIAL REPORT ON POLICY OBJECTIVES AND UNITED STATES 
              STRATEGY REGARDING IRAN.

    Not more than 75 percent of the amount authorized to be 
appropriated by this Act and available for the Office of the Under 
Secretary of Defense for Policy may be obligated or expended for that 
purpose until the President submits to Congress the report required by 
section 1213(b) of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2422).

SEC. 1217. LIMITATION ON AVAILABILITY OF CERTAIN FUNDS PENDING 
              IMPLEMENTATION OF REQUIREMENTS REGARDING NORTH KOREA.

    Notwithstanding any other provision of law, no funds authorized to 
be appropriated for the Department of Defense by this Act or any other 
Act for the provision of security and stabilization assistance as 
authorized by section 1207 of the National Defense Authorization Act 
for Fiscal Year 2006 (as amended by section 1202 of this Act) may be 
obligated or expended for that purpose until the President certifies to 
Congress that all the provisions of section 1211 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-163; 120 Stat. 2420) have been or are being carried out.

                          Subtitle C--Reports

SEC. 1231. REPORTS ON UNITED STATES POLICY AND MILITARY OPERATIONS IN 
              AFGHANISTAN.

    (a) Reports Required.--Not later than 60 days after the date of the 
enactment of this Act and every 180 days thereafter through the end of 
fiscal year 2009, the President shall submit to the congressional 
defense committees a report on United States policy and military 
operations in Afghanistan.
    (b) Elements.--Each report required by subsection (a) shall include 
the following:
            (1) A comprehensive strategy, coordinated between and among 
        the departments and agencies of the United States Government, 
        for achieving the objectives of United States policy and 
        military operations in Afghanistan.
            (2) A description of current and proposed efforts to assist 
        the Government of Afghanistan in increasing the size and 
        capability of the Afghan Security Forces, including key 
        criteria for measuring the capabilities and readiness of the 
        Afghan National Army, the Afghan National Police, and other 
        Afghan security forces.
            (3) A description of current and proposed efforts of the 
        United States Government to work with coalition partners to 
        strengthen the International Security Assistance Force (ISAF) 
        led by the North Atlantic Treaty Organization (NATO) in 
        Afghanistan, including efforts--
                    (A) to encourage North Atlantic Treaty Organization 
                members to make or fulfill commitments to meet North 
                Atlantic Treaty Organization mission requirements with 
                respect to the International Security Assistance Force; 
                and
                    (B) to remove national restrictions on the use of 
                forces of members of the North Atlantic Treaty 
                Organization deployed as part of the International 
                Security Assistance Force mission.
            (4) A description of current and proposed efforts to 
        improve provincial governance and expand economic development 
        in the provinces of Afghanistan, including--
                    (A) a statement of the mission and objectives of 
                the Provincial Reconstruction Teams in Afghanistan;
                    (B) a description of the number, funding (including 
                the sources of funding), staffing requirements, and 
                current staffing levels of the Provincial 
                Reconstruction Teams, set forth by United States 
                Government agency;
                    (C) an evaluation of the effectiveness of each 
                Provincial Reconstruction Team, including each team 
                under the command of the United States and each team 
                under the command of the International Security 
                Assistance Force, in achieving its mission and 
                objectives; and
                    (D) a description of the collaboration, if any, 
                between the United States Agency for International 
                Development and Special Operations Forces in such 
                efforts, and an assessment of the results of such 
                collaboration.
            (5) With respect to current counternarcotics efforts in 
        Afghanistan--
                    (A) a description of the counternarcotics plan of 
                the United States Government in Afghanistan, including 
                a statement of priorities among United States 
                counterdrug activities (including interdiction, 
                eradication, and alternative livelihood programs) 
                within that plan, and a description of the specific 
                resources allocated for each such activity;
                    (B) a description of the counternarcotics roles and 
                missions assumed by the local and provincial 
                governments of Afghanistan, the Government of 
                Afghanistan, particular departments and agencies of the 
                United States Government, the International Security 
                Assistance Force, and other governments;
                    (C) a description of the extent, if any, to which 
                counternarcotics operations in or with respect to 
                Afghanistan have been determined to constitute a United 
                States military mission, and the justification for that 
                determination;
                    (D) a description of United States efforts to 
                destroy drug manufacturing facilities; and
                    (E) a description of United States efforts to 
                apprehend or eliminate major drug traffickers in 
                Afghanistan, and a description of the extent to which 
                such drug traffickers are currently assisting United 
                States counterterrorist efforts.
            (6) A description of current and proposed efforts to help 
        the Government of Afghanistan fight public corruption and 
        strengthen the rule of law.
            (7) A description of current and proposed diplomatic and 
        other efforts to encourage and assist the Government of 
        Pakistan to eliminate safe havens for Taliban, Al Qaeda, and 
        other extremists within the territory of Pakistan which 
        threaten the stability of Afghanistan, and an evaluation of the 
        cooperation of the Government of Pakistan in eliminating such 
        safe havens.
    (c) Form.--Each report required by subsection (a) shall be 
submitted in unclassified form to the maximum extent practicable, but 
may include a classified annex.

SEC. 1232. STRATEGY FOR ENHANCING SECURITY IN AFGHANISTAN BY 
              ELIMINATING SAFE HAVENS FOR VIOLENT EXTREMISTS IN 
              PAKISTAN.

    (a) Findings.--Congress makes the following findings:
            (1) Since September 11, 2001, the Government of Pakistan 
        has been an important partner in helping the United States 
        remove the Taliban regime from Afghanistan.
            (2) In early September 2006, the Government of Pakistan 
        signed a peace agreement with pro-Taliban militants in 
        Miramshah, North Waziristan, Pakistan. Under the agreement, 
        local tribesmen in North Waziristan agreed to halt cross-border 
        movement of pro-Taliban insurgents from the North Waziristan 
        area to Afghanistan and to remove all foreigners who do not 
        respect the peace and abide by the agreement.
            (3) In late September 2006, United States military 
        officials in Kabul, Afghanistan, reported two-fold, and in 
        cases three-fold, increases in the number of cross-border 
        attacks along the Afghanistan border with Pakistan in the weeks 
        following the signing of the agreement referred to in paragraph 
        (2).
            (4) On February 13, 2007, Lieutenant General Karl W. 
        Eikenberry, the former commanding general of Combined Forces 
        Command--Afghanistan, stated in a written statement to the 
        Committee on Armed Services of the House of Representatives 
        that ``Al Qaeda and Taliban leadership presence inside Pakistan 
        remains a significant problem that must be satisfactorily 
        addressed if we are to prevail in Afghanistan and if we are to 
        defeat the global threat posed by international terrorism''.
            (5) On February 27, 2007, John McConnell, the Director of 
        National Intelligence, stated in a written statement to the 
        Committee on Armed Services of the Senate that ``[e]liminating 
        the safehaven that the Taliban and other extremists have found 
        in Pakistan's tribal areas is not sufficient to end the 
        insurgency in Afghanistan but it is necessary''.
    (b) Strategy Relating to Pakistan.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall submit to the 
        congressional defense committees a report describing the long-
        term strategy of the United States to engage with the 
        Government of Pakistan--
                    (A) to prevent the movement of Taliban, Al Qaeda, 
                and other violent extremist forces across the border of 
                Pakistan into Afghanistan; and
                    (B) to eliminate safe havens for such forces on the 
                national territory of Pakistan.
            (2) Form.--The report shall be submitted in unclassified 
        form, but may include a classified annex.
    (c) Limitation on Availability of Department of Defense Coalition 
Support Funds for Pakistan.--
            (1) Limitation.--For fiscal years 2008 and 2009, the 
        Government of Pakistan may not be reimbursed in any fiscal year 
        quarter for the provision to the United States of logistical, 
        military, or other support utilizing funds appropriated or 
        otherwise made available by an Act making supplemental 
        appropriations for fiscal year 2007 for operations in Iraq and 
        Afghanistan, or any other Act, for the purpose of making 
        payments to reimburse key cooperating nations for the provision 
        to the United States of such support unless the President 
        certifies to the congressional defense committees for such 
        fiscal year quarter that the Government of Pakistan is making 
        substantial and sustained efforts to eliminate safe havens for 
        the Taliban, Al Qaeda and other violent extremists in areas 
        under its sovereign control, including in the cities of Quetta 
        and Chaman and in the Northwest Frontier Province and the 
        Federally Administered Tribal Areas.
            (2) Content of certification.--Each certification submitted 
        under paragraph (1) shall include a detailed description of the 
        efforts made by the Government of Pakistan to eliminate safe 
        havens for the Taliban, Al Qaeda, and other violent extremists 
        in areas under its sovereign control.
            (3) Form.--Each certification submitted under paragraph (1) 
        shall be submitted in unclassified form, but may include a 
        classified annex.
            (4) Waiver.--The President may waive the limitation on 
        reimbursements under paragraph (1) for a fiscal year quarter if 
        the President determines and certifies to the congressional 
        defense committees that it is important to the national 
        security interest of the United States to do so.

SEC. 1233. ONE-YEAR EXTENSION OF UPDATE ON REPORT ON CLAIMS RELATING TO 
              THE BOMBING OF THE LABELLE DISCOTHEQUE.

    Section 1225(b)(2) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3465) is amended by 
striking ``Not later than one year after enactment of this Act,'' and 
inserting ``Not later than each of January 6, 2007, and January 7, 
2008,''.

  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 Cooperative Threat Reduction 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 (50 
U.S.C. 2362 note), as amended by section 1303 of this Act.
    (b) Fiscal Year 2008 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2008 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 $428,048,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2008 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, 
        $102,885,000.
            (2) For nuclear weapons storage security in Russia, 
        $22,988,000.
            (3) For nuclear weapons transportation security in Russia, 
        $37,700,000.
            (4) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $51,986,000.
            (5) For biological weapons proliferation prevention in the 
        former Soviet Union, $194,489,000.
            (6) For chemical weapons destruction in Russia, $1,000,000.
            (7) For threat reduction outside the former Soviet Union, 
        $10,000,000.
            (8) For defense and military contacts, $8,000,000.
            (9) For activities designated as Other Assessments/
        Administrative Support, $19,000,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2008 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (9) 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 2008 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) In general.--Subject to paragraph (2), 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 2008 for a purpose listed 
        in paragraphs (1) through (9) of subsection (a) in excess of 
        the specific amount authorized for that purpose.
            (2) Notice-and-wait required.--An obligation of funds for a 
        purpose stated in paragraphs (1) through (9) of 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.

SEC. 1303. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS IN 
              STATES OUTSIDE THE FORMER SOVIET UNION.

    Section 1501 of the National Defense Authorization Act for Fiscal 
Year 1997 (50 U.S.C. 2362 note) is amended--
            (1) in subsection (a), by striking ``subsection (b)'' and 
        inserting ``subsections (b) and (c)''; and
            (2) by adding at the end the following new subsection:
    ``(c) Specified Programs With Respect to States Outside the Former 
Soviet Union.--The programs referred to in subsection (a) are the 
following programs with respect to states that are not states of the 
former Soviet Union:
            ``(1) Programs to facilitate the elimination, and safe and 
        secure transportation and storage, of biological, or chemical 
        weapons, materials, weapons components, or weapons-related 
        materials.
            ``(2) Programs to prevent the proliferation of nuclear, 
        chemical, or biological weapons, weapons components, and 
        weapons-related military technology and expertise.
            ``(3) Programs to facilitate detection and reporting of 
        highly pathogenic diseases or other diseases that are 
        associated with or that could be utilized as an early warning 
        mechanism for disease outbreaks that could impact the Armed 
        Forces of the United States or allies of the United States.''.

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

    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) in subsection (a), by striking ``the President'' the 
        second place it appears and inserting ``the Secretary of 
        Defense, with the concurrence of the Secretary of State,''; and
            (2) in subsection (d)--
                    (A) in paragraph (1), by striking ``the President'' 
                the second place it appears and inserting ``the 
                Secretary of Defense, with the concurrence of the 
                Secretary of State,''; and
                    (B) in paragraph (2), by striking ``the President'' 
                and inserting ``the Secretary of Defense and the 
                Secretary of State''.

SEC. 1305. REPEAL OF RESTRICTIONS ON ASSISTANCE TO STATES OF THE FORMER 
              SOVIET UNION FOR COOPERATIVE THREAT REDUCTION.

    (a) In General.--
            (1) Soviet nuclear threat reduction act of 1991.--The 
        Soviet Nuclear Threat Reduction Act of 1991 (title II of Public 
        Law 102-228; 22 U.S.C. 2551 note) is amended--
                    (A) by striking section 211; and
                    (B) in section 212, by striking ``, consistent with 
                the findings stated in section 211,''.
            (2) Cooperative threat reduction act of 1993.--Section 1203 
        of the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 
        5952) is amended by striking subsection (d).
            (3) Russian chemical weapons destruction facilities.--
        Section 1305 of the National Defense Authorization Act for 
        Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 note) is 
        repealed.
            (4) Conforming repeal.--Section 1303 of the Ronald W. 
        Reagan National Defense Authorization Act for Fiscal Year 2005 
        (Public Law 108-375; 22 U.S.C. 5952 note) is repealed.
    (b) Inapplicability of Other Restrictions.--Section 502 of the 
Freedom for Russia and Emerging Eurasian Democracies and Open Markets 
Support Act of 1992 (22 U.S.C. 5852) shall not apply to any Cooperative 
Threat Reduction program.

SEC. 1306. NATIONAL ACADEMY OF SCIENCES STUDY OF PREVENTION OF 
              PROLIFERATION OF BIOLOGICAL WEAPONS.

    (a) Study Required.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall enter into an 
arrangement with the National Academy of Sciences under which the 
Academy shall carry out a study to identify areas for cooperation with 
states other than states of the former Soviet Union under the 
Cooperative Threat Reduction program of the Department of Defense in 
the prevention of proliferation of biological weapons.
    (b) Matters To Be Included in Study.--The Secretary shall provide 
for the study under subsection (a) to include the following:
            (1) An assessment of trends in the biological sciences and 
        biotechnology that will affect the capabilities of governments 
        of developing countries to control the containment and use of 
        dual-use technologies of potential interest to terrorist 
        organizations or individuals with hostile intentions.
            (2) An assessment of the approaches to cooperative threat 
        reduction used by the states of the former Soviet Union that 
        are of special relevance in preventing the proliferation of 
        biological weapons in other areas of the world.
            (3) A review of programs of the United States Government 
        and other governments, international organizations, 
        foundations, and other private sector entities used in 
        developing countries that are not states of the former Soviet 
        Union that may contribute to the prevention of the 
        proliferation of biological weapons.
            (4) Recommendations on steps for integrating activities of 
        the Cooperative Threat Reduction program relating to the 
        prevention of the proliferation of biological weapons with 
        activities of other departments and agencies of the United 
        States addressing problems and opportunities in developing 
        countries that are not states of the former Soviet Union.
    (c) Report.--
            (1) In general.--Not later than December 31, 2008, the 
        Secretary shall submit to the Committee on Armed Services of 
        the Senate and the Committee on Armed Services of the House of 
        Representatives a report on the study carried out under 
        subsection (a).
            (2) Matters to be included.--The report under paragraph (1) 
        shall include the following:
                    (A) The results of the study carried out under 
                subsection (a), including any report received by the 
                Secretary from the National Academy of Sciences on the 
                study.
                    (B) An assessment by the Secretary of the study.
                    (C) A statement of the actions, if any, to be 
                undertaken by the Secretary to implement any 
                recommendations in the study.
            (3) Form.--The report under paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex.
    (d) Funding.--Of the amount authorized to be appropriated by 
section 301(18) for Cooperative Threat Reduction programs, not more 
than $2,500,000 may be obligated or expended to carry out this section.

                    TITLE XIV--OTHER AUTHORIZATIONS

                     Subtitle A--Military Programs

SEC. 1401. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $102,446,000.
            (2) For the Defense Working Capital Fund, Defense 
        Commissary, $1,250,300,000.

SEC. 1402. NATIONAL DEFENSE SEALIFT FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the National Defense Sealift Fund in the amount of $1,044,194,000.

SEC. 1403. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2008 for expenses, not otherwise provided 
for, for the Defense Health Program, in the amount of $22,543,124,000, 
of which--
            (1) $22,044,381,000 is for Operation and Maintenance;
            (2) $136,482,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $362,261,000 is for Procurement.

SEC. 1404. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal year 2008 
for expenses, not otherwise provided for, for Chemical Agents and 
Munitions Destruction, Defense, in the amount of $1,491,724,000, of 
which--
            (1) $1,186,452,000 is for Operation and Maintenance;
            (2) $274,846,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $30,426,000 is for Procurement.
    (b) Use.--Amounts authorized to be appropriated under subsection 
(a) are authorized for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 1405. DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE-WIDE.

    Funds are hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2008 for expenses, not otherwise provided 
for, for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
in the amount of $959,322,000.

SEC. 1406. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2008 for expenses, not otherwise provided 
for, for the Office of the Inspector General of the Department of 
Defense, in the amount of $225,995,000, of which--
            (1) $224,995,000 is for Operation and Maintenance; and
            (2) $1,000,000 is for Procurement.

SEC. 1407. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS FROM 
              LOWER INFLATION.

    (a) Reduction.--The aggregate amount authorized to be appropriated 
by this division is the amount equal to the sum of all the amounts 
authorized to be appropriated by the provisions of this division 
reduced by $1,627,000,000, to be allocated as follows:
            (1) Procurement.--The aggregate amount authorized to be 
        appropriated by title I is hereby reduced by $601,000,000.
            (2) Research, development, test, and evaluation.--The 
        aggregate amount authorized to be appropriated by title II is 
        hereby reduced by $451,000,000.
            (3) Operation and maintenance.--The aggregate amount 
        authorized to be appropriated by title III is hereby reduced by 
        $554,000,000.
            (4) Other authorizations.--The aggregate amount authorized 
        to be appropriated by title XIV is hereby reduced by 
        $21,000,000.
    (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 difference between the inflation 
assumptions used in the Concurrent Resolution on the Budget for Fiscal 
Year 2008 when compared with the inflation assumptions used in the 
budget of the President for fiscal year 2008, as submitted to Congress 
pursuant to section 1005 of title 31, United States Code.
    (c) Allocation of Reductions.--The Secretary of Defense shall 
allocate the reductions required by this section among the amounts 
authorized to be appropriated for accounts in titles I, II, III, and 
XIV to reflect the extent to which net savings from lower-than-expected 
inflations are allocable to amounts authorized to be appropriated to 
such accounts.

                 Subtitle B--National Defense Stockpile

SEC. 1411. DISPOSAL OF FERROMANGANESE.

    (a) Disposal Authorized.--The Secretary of Defense may dispose of 
up to 50,000 tons of ferromanganese from the National Defense Stockpile 
during fiscal year 2008.
    (b) Contingent Authority for Additional Disposal.--
            (1) In general.--If the Secretary of Defense completes the 
        disposal of the total quantity of ferromanganese authorized for 
        disposal by subsection (a) before September 30, 2008, the 
        Secretary of Defense may dispose of up to an additional 25,000 
        tons of ferromanganese from the National Defense Stockpile 
        before that date.
            (2) Additional amounts.--If the Secretary completes the 
        disposal of the total quantity of additional ferromanganese 
        authorized for disposal by paragraph (1) before September 30, 
        2008, the Secretary may dispose of up to an additional 25,000 
        tons of ferromanganese from the National Defense Stockpile 
        before that date.
    (c) Certification.--The Secretary of Defense may dispose of 
ferromanganese under the authority of paragraph (1) or (2) of 
subsection (b) only if the Secretary submits written certification to 
the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives, not later than 30 days 
before the commencement of disposal under the applicable paragraph, 
that--
            (1) the disposal of the additional ferromanganese from the 
        National Defense Stockpile is in the interest of national 
        defense;
            (2) the disposal of the additional ferromanganese will not 
        cause disruption to the usual markets of producers and 
        processors of ferromanganese in the United States; and
            (3) the disposal of the additional ferromanganese is 
        consistent with the requirements and purpose of the National 
        Defense Stockpile.
    (d) Delegation of Responsibility.--The Secretary of Defense may 
delegate the responsibility of the Secretary under subsection (c) to an 
appropriate official within the Department of Defense.
    (e) National Defense Stockpile Defined.--In this section, the term 
``National Defense Stockpile'' means the stockpile provided for in 
section 4 of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98c).

SEC. 1412. DISPOSAL OF CHROME METAL.

    (a) Disposal Authorized.--The Secretary of Defense may dispose of 
up to 500 short tons of chrome metal from the National Defense 
Stockpile during fiscal year 2008.
    (b) Contingent Authority for Additional Disposal.--
            (1) In general.--If the Secretary of Defense completes the 
        disposal of the total quantity of chrome metal authorized for 
        disposal by subsection (a) before September 30, 2008, the 
        Secretary of Defense may dispose of up to an additional 250 
        short tons of chrome metal from the National Defense Stockpile 
        before that date.
            (2) Additional amounts.--If the Secretary completes the 
        disposal of the total quantity of additional chrome metal 
        authorized for disposal by paragraph (1) before September 30, 
        2008, the Secretary may dispose of up to an additional 250 
        short tons of chrome metal from the National Defense Stockpile 
        before that date.
    (c) Certification.--The Secretary of Defense may dispose of chrome 
metal under the authority of paragraph (1) or (2) of subsection (b) 
only if the Secretary submits written certification to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives, not later than 30 days before the 
commencement of disposal under the applicable paragraph, that--
            (1) the disposal of the additional chrome metal from the 
        National Defense Stockpile is in the interest of national 
        defense;
            (2) the disposal of the additional chrome metal will not 
        cause disruption to the usual markets of producers and 
        processors of chrome metal in the United States; and
            (3) the disposal of the additional chrome metal is 
        consistent with the requirements and purpose of the National 
        Defense Stockpile.
    (d) Delegation of Responsibility.--The Secretary of Defense may 
delegate the responsibility of the Secretary under subsection (c) to an 
appropriate official within the Department of Defense.
    (e) National Defense Stockpile Defined.--In this section, the term 
``National Defense Stockpile'' means the stockpile provided for in 
section 4 of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98c).

SEC. 1413. MODIFICATION OF RECEIPT OBJECTIVES FOR PREVIOUSLY AUTHORIZED 
              DISPOSALS FROM THE NATIONAL DEFENSE STOCKPILE.

    (a) Fiscal Year 2000 Disposal Authority.--Paragraph (5) of section 
3402(b) of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 50 U.S.C. 98d note), as amended by section 3302(b) 
of the National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3546), is further amended by striking 
``$600,000,000 before'' and inserting ``$729,000,000 by''.
    (b) Fiscal Year 1999 Disposal Authority.--Paragraph (7) of section 
3303(a) of the Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 98d note), as amended 
by section 3302(a) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2513), is 
further amended to read as follows:
            ``(7) $1,469,102,000 by the end of fiscal year 2015.''.

                       Subtitle C--Civil Programs

SEC. 1421. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2008 
from the Armed Forces Retirement Home Trust Fund the sum of $61,624,000 
for the operation of the Armed Forces Retirement Home.

             Subtitle D--Chemical Demilitarization Matters

SEC. 1431. MODIFICATION OF TERMINATION REQUIREMENT FOR CHEMICAL 
              DEMILITARIZATION CITIZENS' ADVISORY COMMISSIONS.

    (a) Modification.--Subsection (h) of section 172 of the National 
Defense Authorization Act for Fiscal Year 1993 (50 U.S.C. 1521 note) is 
amended by striking ``after the stockpile located in that commission's 
State has been destroyed'' and inserting ``upon the earlier of--
            ``(1) the completion of closure activities for the chemical 
        agent destruction facility in the commission's State as 
        required pursuant to regulations promulgated by the 
        Administrator of the Environmental Protection Agency pursuant 
        to the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.); or
            ``(2) the request of the Governor of the commission's 
        State.''.
    (b) Technical Amendments.--Subsections (b), (f), and (g) of such 
section are each amended by striking ``Assistant Secretary of the Army 
(Research, Development, and Acquisition)'' and inserting ``Assistant 
Secretary of the Army (Acquisition, Logistics, and Technology)''.

SEC. 1432. REPEAL OF CERTAIN QUALIFICATIONS REQUIREMENT FOR DIRECTOR OF 
              CHEMICAL DEMILITARIZATION MANAGEMENT ORGANIZATION.

    Section 1412(e)(3) of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521(e)(3)) is amended--
            (1) in subparagraph (A), by adding ``and'' at the end;
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 1433. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED 
              STATES CHEMICAL WEAPONS STOCKPILE.

    (a) Findings.--Congress makes the following findings:
            (1) The Convention on the Prohibition of the Development, 
        Production, Stockpiling and Use of Chemical Weapons and on 
        Their Destruction, done at Paris on January 13, 1993 (commonly 
        referred to as the ``Chemical Weapons Convention''), requires 
        that destruction of the entire United States chemical weapons 
        stockpile be completed by not later than April 29, 2007.
            (2) In 2006, under the terms of the Chemical Weapons 
        Convention, the United States requested and received a one-
        time, 5-year extension of its chemical weapons destruction 
        deadline to April 29, 2012.
            (3) On April 10, 2006, the Secretary of Defense notified 
        Congress that the United States would not meet even the 
        extended deadline under the Chemical Weapons Convention for 
        destruction of the United States chemical weapons stockpile, 
        but would ``continue working diligently to minimize the time to 
        complete destruction without sacrificing safety and security'' 
        and would also ``continue requesting resources needed to 
        complete destruction as close to April 2012 as practicable''.
            (4) Destroying the remaining stockpile of United States 
        chemical weapons is imperative for public safety and homeland 
        security, and doing so by April 2012, in accordance with the 
        current destruction deadline provided under the Chemical 
        Weapons Convention, is required by United States law.
            (5) The elimination of chemical weapons anywhere they exist 
        in the world, and the prevention of their proliferation, is of 
        utmost importance to the national security of the United 
        States.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States is, and must remain, committed to 
        making every effort to safely dispose of its entire chemical 
        weapons stockpile by April 2012, the current destruction 
        deadline provided under the Chemical Weapons Convention, or as 
        soon thereafter as possible, and must carry out all of its 
        other obligations under the Convention; and
            (2) the Secretary of Defense should make every effort to 
        plan for, and to request in the annual budget of the President 
        submitted to Congress adequate funding to complete, the 
        elimination of the United States chemical weapons stockpile in 
        accordance with United States obligations under the Chemical 
        Weapons Convention and in a manner that will protect public 
        health, safety, and the environment, as required by law.
    (c) Reports Required.--
            (1) In general.--Not later than March 15, 2008, and every 
        180 days thereafter until the year in which the United States 
        completes the destruction of its entire stockpile of chemical 
        weapons under the terms of the Chemical Weapons Convention, the 
        Secretary of Defense shall submit to the members and committees 
        of Congress referred to in paragraph (3) a report on the 
        implementation by the United States of its chemical weapons 
        destruction obligations under the Chemical Weapons Convention.
            (2) Elements.--Each report under paragraph (1) shall 
        include the following:
                    (A) The anticipated schedule at the time of such 
                report for the completion of destruction of chemical 
                agents, munitions, and materiel at each chemical 
                weapons demilitarization facility in the United States.
                    (B) A description of the options and alternatives 
                for accelerating the completion of chemical weapons 
                destruction at each such facility, particularly in time 
                to meet the destruction deadline of April 29, 2012, 
                currently provided by the Chemical Weapons Convention.
                    (C) A description of the funding required to 
                achieve each of the options for destruction described 
                under subparagraph (B).
                    (D) A description of all actions being taken by the 
                United States to accelerate the destruction of its 
                entire stockpile of chemical weapons, agents, and 
                materiel in order to meet the current destruction 
                deadline under the Chemical Weapons Convention of April 
                29, 2012, or as soon thereafter as possible.
            (3) Members and committees of congress.--The members and 
        committees of Congress referred to in this paragraph are--
                    (A) the majority leader of the Senate, the minority 
                leader of the Senate, and the Committees on Armed 
                Services and Appropriations of the Senate; and
                    (B) the Speaker of the House of Representatives, 
                the majority leader of the House of Representatives, 
                the minority leader of the House of Representatives, 
                and the Committees on Armed Services and Appropriations 
                of the House of Representatives.

    TITLE XV--OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

   Subtitle A--Authorization of Additional War-Related Appropriations

SEC. 1501. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement accounts of the Army in amounts as follows:
            (1) For aircraft procurement, $890,786,000.
            (2) For missiles, $492,734,000.
            (3) For weapons and tracked combat vehicles procurement, 
        $1,249,177,000.
            (4) For ammunition, $303,000,000.
            (5) For other procurement, $10,310,055,000.

SEC. 1502. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for procurement accounts for the Navy in amounts as 
follows:
            (1) For aircraft procurement, $2,263,018,000.
            (2) For weapons procurement, $251,281,000.
            (3) For other procurement, $814,311,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for the procurement account for the Marine Corps 
in the amount of $4,236,140,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for the procurement account for 
ammunition for the Navy and the Marine Corps in the amount of 
$590,090,000.

SEC. 1503. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement accounts for the Air Force in amounts as follows:
            (1) For aircraft procurement, $2,069,009,000.
            (2) For ammunition, $74,005,000.
            (3) For missile procurement, $1,800,000.
            (4) For other procurement, $4,163,450,000.

SEC. 1504. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the procurement account for Defense-wide in the amount of 
$593,768,000.

SEC. 1505. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $121,653,000.
            (2) For the Navy, $370,798,000.
            (3) For the Air Force, $922,791,000.
            (4) For Defense-wide activities, $535,087,000.

SEC. 1506. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
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, $45,519,264,000.
            (2) For the Navy, $5,190,000,000.
            (3) For the Marine Corps, $4,013,093,000.
            (4) For the Air Force, $10,532,630,000.
            (5) For Defense-wide activities, $5,976,216,000.
            (6) For the Army Reserve, $158,410,000.
            (7) For the Navy Reserve, $69,598,000.
            (8) For the Marine Corps Reserve, $68,000,000.
            (9) For the Army National Guard, $466,150,000.
            (10) For the Air National Guard, $31,168,000.

SEC. 1507. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated for fiscal year 2008 
for the Department of Defense for military personnel in amounts as 
follows:
            (1) For the Army, $9,140,516,000.
            (2) For the Navy, $752,089,000.
            (3) For the Marine Corps, $817,475,000.
            (4) For the Air Force, $1,411,890,000.
            (5) For the Army Reserve, $235,000,000.
            (6) For the Navy Reserve, $70,000,000.
            (7) For the Marine Corps Reserve, $15,420,000.
            (8) For the Air Force Reserve, $3,000,000.
            (9) For the Army National Guard, $476,584,000.

SEC. 1508. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Department of Defense for expenses, not otherwise provided for, 
for the Defense Health Program, in the amount of $1,022,842,000, for 
operation and maintenance.

SEC. 1509. DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE-WIDE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Department of Defense for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, in the 
amount of $257,618,000.

SEC. 1510. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

    (a) Authorization of Appropriation.--Funds are hereby authorized 
for fiscal year 2008 for the Joint Improvised Explosive Device Defeat 
Fund in the amount of $4,500,000,000.
    (b) Use of Funds.--Funds appropriated pursuant to subsection (a) 
shall be available to the Secretary of Defense for the purpose of 
allowing the Director of the Joint Improvised Explosive Device Defeat 
Organization to investigate, develop, and provide equipment, supplies, 
services, training, facilities, personnel, and funds to assist United 
States forces in the defeat of improvised explosive devices.
    (c) Transfer Authority.--
            (1) Transfers authorized.--Amounts authorized to be 
        appropriated by subsection (a) may be transferred from the 
        Joint Improvised Explosive Device Defeat Fund to any of the 
        following accounts and funds of the Department of Defense to 
        accomplish the purposes provided in subsection (b):
                    (A) Military personnel accounts.
                    (B) Operation and maintenance accounts.
                    (C) Procurement accounts.
                    (D) Research, development, test, and evaluation 
                accounts.
                    (E) Defense working capital funds.
            (2) Additional transfer authority.--The transfer authority 
        provided by paragraph (1) is in addition to any other transfer 
        authority available to the Department of Defense.
            (3) Transfers back to the fund.--Upon determination that 
        all or part of the funds transferred from the Joint Improvised 
        Explosive Device Defeat Fund under paragraph (1) are not 
        necessary for the purpose provided, such funds may be 
        transferred back to the Joint Improvised Explosive Device 
        Defeat Fund.
            (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.
    (d) Notice to Congress.--Funds may not be obligated from the Joint 
Improvised Explosive Device Defeat Fund, or transferred under the 
authority provided in subsection (c)(1), until five days after the date 
on which the Secretary of Defense notifies the congressional defense 
committees in writing of the details of the proposed obligation or 
transfer.
    (e) Management Plan.--
            (1) Plan required.--Not later than 60 days after the date 
        of the enactment of this Act, the Secretary of Defense shall 
        submit to the congressional defense committees a plan for the 
        intended management and use of the Joint Improvised Explosive 
        Device Defeat Fund.
            (2) Matter to be included.--The plan required by paragraph 
        (1) shall include an update of the plan required in the 
        paragraph under the heading ``Joint Improvised Explosive Device 
        Defeat Fund'' in chapter 2 of title I of the Emergency 
        Supplemental Appropriations Act for Defense, the Global War on 
        Terror, and Hurricane Recovery, 2006 (Public Law 109-234; 120 
        Stat. 424), including identification of--
                    (A) year-to-date transfers and obligations; and
                    (B) projected transfers and obligations through 
                September 30, 2008.
    (f) Quarterly Reports.--Not later than 30 days after the end of 
each fiscal-year quarter, the Secretary of Defense shall submit to the 
congressional defense committees a report summarizing the detail of any 
obligation or transfer of funds from the Joint Improvised Explosive 
Device Defeat Fund plan required by subsection (e).
    (g) Duration of Authority.--Amounts appropriated to the Joint 
Improvised Explosive Device Defeat Fund are available for obligation or 
transfer from the Fund until September 30, 2009.

SEC. 1511. IRAQ SECURITY FORCES FUND.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for the Iraq Security Forces 
Fund in the amount of $2,000,000,000.
    (b) Use of Funds.--
            (1) In general.--Funds appropriated pursuant to subsection 
        (a) shall be available to the Secretary of Defense for the 
        purpose of allowing the Commander, Multi-National Security 
        Transition Command--Iraq, to provide assistance to the security 
        forces of Iraq.
            (2) Types of assistance authorized.--Assistance provided 
        under this section may include the provision of equipment, 
        supplies, services, training, facility and infrastructure 
        repair, renovation, construction, and funding.
            (3) Secretary of state concurrence.--Assistance may be 
        provided under this section only with the concurrence of the 
        Secretary of State.
    (c) Authority in Addition to Other Authorities.--The authority to 
provide assistance under this section is in addition to any other 
authority to provide assistance to foreign nations.
    (d) Transfer Authority.--
            (1) Transfers authorized.--Subject to paragraph (2), 
        amounts authorized to be appropriated by subsection (a) may be 
        transferred from the Iraq Security Forces Fund to any of the 
        following accounts and funds of the Department of Defense to 
        accomplish the purposes provided in subsection (b):
                    (A) Military personnel accounts.
                    (B) Operation and maintenance accounts.
                    (C) Procurement accounts.
                    (D) Research, development, test, and evaluation 
                accounts.
                    (E) Defense working capital funds.
                    (F) Overseas Humanitarian, Disaster, and Civic Aid 
                account.
            (2) Additional authority.--The transfer authority provided 
        by paragraph (1) is in addition to any other transfer authority 
        available to the Department of Defense.
            (3) Transfers back to the fund.--Upon determination that 
        all or part of the funds transferred from the Iraq Security 
        Forces Fund under paragraph (1) are not necessary for the 
        purpose provided, such funds may be transferred back to the 
        Iraq Security Forces Fund.
            (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.
    (e) Notice to Congress.--Funds may not be obligated from the Iraq 
Security Forces Fund, or transferred under the authority provided in 
subsection (d)(1), until five days after the date on which the 
Secretary of Defense notifies the congressional defense committees in 
writing of the details of the proposed obligation or transfer.
    (f) Contributions.--
            (1) Authority to accept contributions.--Subject to 
        paragraph (2), the Secretary of Defense may accept 
        contributions of amounts to the Iraq Security Forces Fund for 
        the purposes provided in subsection (b) from any person, 
        foreign government, or international organization. Any amounts 
        so accepted shall be credited to the Iraq Security Forces Fund.
            (2) Limitation.--The Secretary may not accept a 
        contribution under this subsection if the acceptance of the 
        contribution would compromise or appear to compromise the 
        integrity of any program of the Department of Defense.
            (3) Use.--Amounts accepted under this subsection shall be 
        available for assistance authorized by subsection (b), 
        including transfer under subsection (d) for that purpose.
            (4) Notification.--The Secretary shall notify the 
        congressional defense committees in writing upon the 
        acceptance, and upon the transfer under subsection (d), of any 
        contribution under this subsection. Such notice shall specify 
        the source and amount of any amount so accepted and the use of 
        any amount so accepted.
    (g) Quarterly Reports.--Not later than 30 days after the end of 
each fiscal-year quarter, the Secretary of Defense shall submit to the 
congressional defense committees a report summarizing the details of 
any obligation or transfer of funds from the Iraq Security Forces Fund 
during such fiscal-year quarter.
    (h) Duration of Authority.--Amounts authorized to be appropriated 
or contributed to the Fund during fiscal year 2008 are available for 
obligation or transfer from the Iraq Security Forces Fund in accordance 
with this section until September 30, 2009.

SEC. 1512. AFGHANISTAN SECURITY FORCES FUND.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for the Afghanistan Security 
Forces Fund in the amount of $2,700,000,000.
    (b) Use of Funds.--
            (1) In general.--Funds authorized to be appropriated by 
        subsection (a) shall be available to the Secretary of Defense 
        for the purpose of allowing the Commander, Office of Security 
        Cooperation-Afghanistan, to provide assistance to the security 
        forces of Afghanistan.
            (2) Types of assistance authorized.--Assistance provided 
        under this section may include the provision of equipment, 
        supplies, services, training, facility and infrastructure 
        repair, renovation, construction, and funds.
            (3) Secretary of state concurrence.--Assistance may be 
        provided under this section only with the concurrence of the 
        Secretary of State.
    (c) Authority in Addition to Other Authorities.--The authority to 
provide assistance under this section is in addition to any other 
authority to provide assistance to foreign nations.
    (d) Transfer Authority.--
            (1) Transfers authorized.--Subject to paragraph (2), 
        amounts authorized to be appropriated by subsection (a) may be 
        transferred from the Afghanistan Security Forces Fund to any of 
        the following accounts and funds of the Department of Defense 
        to accomplish the purposes provided in subsection (b):
                    (A) Military personnel accounts.
                    (B) Operation and maintenance accounts.
                    (C) Procurement accounts.
                    (D) Research, development, test, and evaluation 
                accounts.
                    (E) Defense working capital funds.
                    (F) Overseas Humanitarian, Disaster, and Civic Aid.
            (2) Additional authority.--The transfer authority provided 
        by paragraph (1) is in addition to any other transfer authority 
        available to the Department of Defense.
            (3) Transfers back to fund.--Upon a determination that all 
        or part of the funds transferred from the Afghanistan Security 
        Forces Fund under paragraph (1) are not necessary for the 
        purpose for which transferred, such funds may be transferred 
        back to the Afghanistan Security Forces Fund.
            (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.
    (e) Prior Notice to Congress of Obligation or Transfer.--Funds may 
not be obligated from the Afghanistan Security Forces Fund, or 
transferred under subsection (d)(1), until five days after the date on 
which the Secretary of Defense notifies the congressional defense 
committees in writing of the details of the proposed obligation or 
transfer.
    (f) Contributions.--
            (1) Authority to accept contributions.--Subject to 
        paragraph (2), the Secretary of Defense may accept 
        contributions of amounts to the Afghanistan Security Forces 
        Fund for the purposes provided in subsection (b) from any 
        person, foreign government, or international organization. Any 
        amounts so accepted shall be credited to the Afghanistan 
        Security Forces Fund.
            (2) Limitation.--The Secretary may not accept a 
        contribution under this subsection if the acceptance of the 
        contribution would compromise or appear to compromise the 
        integrity of any program of the Department of Defense.
            (3) Use.--Amounts accepted under this subsection shall be 
        available for assistance authorized by subsection (b), 
        including transfer under subsection (d) for that purpose.
            (4) Notification.--The Secretary shall notify the 
        congressional defense committees in writing upon the 
        acceptance, and upon the transfer under subsection (d), of any 
        contribution under this subsection. Such notice shall specify 
        the source and amount of any amount so accepted and the use of 
        any amount so accepted.
    (g) Quarterly Reports.--Not later than 30 days after the end of 
each fiscal-year quarter, the Secretary of Defense shall submit to the 
congressional defense committees a report summarizing the details of 
any obligation or transfer of funds from the Afghanistan Security 
Forces Fund during such fiscal-year quarter.
    (h) Duration of Authority.--Amounts authorized to be appropriated 
or contributed to the Fund during fiscal year 2008 are available for 
obligation or transfer from the Afghanistan Security Forces Fund in 
accordance with this section until September 30, 2009.

SEC. 1513. IRAQ FREEDOM FUND.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for the Iraq Freedom Fund in the amount of 
$107,500,000.
    (b) 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 five 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. 1514. DEFENSE WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for the Defense Working 
Capital Funds in the amount of $1,676,275,000.

SEC. 1515. NATIONAL DEFENSE SEALIFT FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the National Defense Sealift Fund in the amount of $5,100,000.

SEC. 1516. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Department of Defense for expenses, not otherwise provided for, 
for the Office of Inspector General of the Department of Defense in the 
amount of $4,394,000, for Operation and Maintenance.

       Subtitle B--General Provisions Relating to Authorizations

SEC. 1521. PURPOSE.

    The purpose of this title is to authorize additional appropriations 
for the Department of Defense for fiscal year 2008 for the incremental 
costs of Operation Iraqi Freedom and Operation Enduring Freedom.

SEC. 1522. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

    The amounts authorized to be appropriated by this title are in 
addition to amounts otherwise authorized to be appropriated by this 
Act.

SEC. 1523. SPECIAL 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 title for fiscal 
        year 2008 between any such authorizations for that fiscal year 
        (or any subdivisions thereof). Amounts of authorizations so 
        transferred shall be merged with and be available for the same 
        purposes as the authorization to which transferred.
            (2) Limitation.--The total amount of authorizations that 
        the Secretary may transfer under the authority of this section 
        may not exceed $3,500,000,000.
    (b) Terms and Conditions.--Transfers under this section shall be 
subject to the same terms and conditions as transfers under section 
1001.
    (c) Additional Authority.--The transfer authority provided by this 
section is in addition to the transfer authority provided under section 
1001.

                       Subtitle C--Other Matters

SEC. 1531. LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN PURPOSES 
              RELATING TO IRAQ.

    No funds appropriated pursuant to an authorization of 
appropriations in this Act may be obligated or expended for a purpose 
as follows:
            (1) To establish any military installation or base for the 
        purpose of providing for the permanent stationing of United 
        States Armed Forces in Iraq.
            (2) To exercise United States control of the oil resources 
        of Iraq.

SEC. 1532. REIMBURSEMENT OF CERTAIN COALITION NATIONS FOR SUPPORT 
              PROVIDED TO UNITED STATES MILITARY OPERATIONS.

    (a) Authority.--From funds made available for the Department of 
Defense by section 1506 for operation and maintenance, Defense-wide 
activities, the Secretary of Defense may reimburse any key cooperating 
nation for logistical and military support provided by that nation to 
or in connection with United States military operations in Operation 
Iraqi Freedom or Operation Enduring Freedom.
    (b) Amounts of Reimbursement.--
            (1) In general.--Reimbursement authorized by subsection (a) 
        may be made in such amounts as the Secretary of Defense, with 
        the concurrence of the Secretary of State and in consultation 
        with the Director of the Office of Management and Budget, may 
        determine, based on documentation determined by the Secretary 
        of Defense to adequately account for the support provided.
            (2) Standards.--Not later than 30 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        prescribe standards for determining the kinds of logistical and 
        military support to the United States that shall be considered 
        reimbursable under the authority in subsection (a). Such 
        standards may not take effect until 15 days after the date on 
        which the Secretary submits to the congressional defense 
        committees a report setting forth such standards.
    (c) Limitations.--
            (1) Limitation on amount.--The total amount of 
        reimbursements made under the authority in subsection (a) 
        during fiscal year 2008 may not exceed $1,200,000,000.
            (2) Prohibition on contractual obligations to make 
        payments.--The Secretary of Defense may not enter into any 
        contractual obligation to make a reimbursement under the 
        authority in subsection (a).
    (d) Notice to Congress.--The Secretary of Defense shall--
            (1) notify the congressional defense committees not less 
        than 15 days before making any reimbursement under the 
        authority in subsection (a); and
            (2) submit to the congressional defense committees on a 
        quarterly basis a report on any reimbursements made under the 
        authority in subsection (a) during such quarter.

SEC. 1533. LOGISTICAL SUPPORT FOR COALITION FORCES SUPPORTING 
              OPERATIONS IN IRAQ AND AFGHANISTAN.

    (a) Availability of Funds for Logistical Support.--Subject to the 
provisions of this section, amounts available to the Department of 
Defense for fiscal year 2008 for operation and maintenance may be used 
to provide supplies, services, transportation (including airlift and 
sealift), and other logistical support to coalition forces supporting 
United States military and stabilization operations in Iraq and 
Afghanistan.
    (b) Required Determination.--The Secretary may provide logistical 
support under the authority in subsection (a) only if the Secretary 
determines that the coalition forces to be provided the logistical 
support--
            (1) are essential to the success of a United States 
        military or stabilization operation; and
            (2) would not be able to participate in such operation 
        without the provision of the logistical support.
    (c) Coordination With Export Control Laws.--Logistical support may 
be provided under the authority in subsection (a) only in accordance 
with applicable provisions of the Arms Export Control Act and other 
export control laws of the United States.
    (d) Limitation on Value.--The total amount of logistical support 
provided under the authority in subsection (a) in fiscal year 2008 may 
not exceed $400,000,000.
    (e) Quarterly Reports.--
            (1) Reports required.--Not later than 15 days after the end 
        of each fiscal-year quarter of fiscal year 2008, the Secretary 
        shall submit to the congressional defense committees a report 
        on the provision of logistical support under the authority in 
        subsection (a) during such fiscal-year quarter.
            (2) Elements.--Each report under paragraph (1) shall 
        include, for the fiscal-year quarter covered by such report, 
        the following:
                    (A) Each nation provided logistical support under 
                the authority in subsection (a).
                    (B) For each such nation, a description of the type 
                and value of logistical support so provided.

SEC. 1534. COMPETITION FOR PROCUREMENT OF SMALL ARMS SUPPLIED TO IRAQ 
              AND AFGHANISTAN.

    (a) Competition Requirement.--For the procurement of pistols and 
other weapons described in subsection (b), the Secretary of Defense 
shall ensure, consistent with the provisions of section 2304 of title 
10, United States Code, that--
            (1) full and open competition is obtained to the maximum 
        extent practicable;
            (2) no responsible United States manufacturer is excluded 
        from competing for such procurements; and
            (3) products manufactured in the United States are not 
        excluded from the competition.
    (b) Procurements Covered.--This section applies to the procurement 
of the following:
            (1) Pistols and other weapons less than 0.50 caliber for 
        assistance to the Army of Iraq, the Iraqi Police Forces, and 
        other Iraqi security organizations.
            (2) Pistols and other weapons less than 0.50 caliber for 
        assistance to the Army of Afghanistan, the Afghani Police 
        Forces, and other Afghani security organizations.
                                                       Calendar No. 261

110th CONGRESS

  1st Session

                                S. 1548

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2008 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for such fiscal year, and for other purposes.

_______________________________________________________________________

                             June 29, 2007

                        Reported with amendments