[Congressional Record Volume 149, Number 79 (Monday, June 2, 2003)]
[Senate]
[Pages S7190-S7194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. COLLINS (for herself, Mr. Levin, Mr. Voinovich, and Mr. 
        Sununu):
  S. 1166. A bill to establish a Department of Defense national 
security personnel system and for other purposes; to the Committee on 
Government Affairs.
  Ms. COLLINS. Mr. President, I ask unanimous consent that the text of 
the bill, the ``National Security Personnel System Act,'' be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1166

       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 ``National Security Personnel 
     System Act''.

     SEC. 2. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL 
                   SYSTEM.

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

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

``Sec.
``9901. Definitions.
``9902. Establishment of human resources management system.
``9903. Contracting for personal services.
``9904. Attracting highly qualified experts.
``9905. Special pay and benefits for certain employees outside the 
              United States.

     ``Sec. 9901. Definitions

       ``For purposes of this chapter--
       ``(1) the term `Director' means the Director of the Office 
     of Personnel Management; and
       ``(2) the term `Secretary' means the Secretary of Defense.

     ``Sec. 9902. Establishment of human resources management 
       system

       ``(a) In General.--Notwithstanding any other provision of 
     this part, the Secretary may, in regulations prescribed 
     jointly with the Director, establish a human resources 
     management system for some or all of the organizational or 
     functional units of the Department of Defense. The human 
     resources system established under authority of this section 
     shall be referred to as the `National Security Personnel 
     System'.
       ``(b) System Requirements.--The National Security Personnel 
     System established under subsection (a) shall--
       ``(1) be flexible;
       ``(2) be contemporary;
       ``(3) not waive, modify, or otherwise affect--
       ``(A) the public employment principles of merit and fitness 
     set forth in section 2301, including the principles of hiring 
     based on merit, fair treatment without regard to political 
     affiliation or other nonmerit considerations, equal pay for 
     equal work, and protection of employees against reprisal for 
     whistleblowing;
       ``(B) any provision of section 2302, relating to prohibited 
     personnel practices;
       ``(C)(i) any provision of law referred to in section 
     2302(b)(1), (8), and (9); or
       ``(ii) any provision of law implementing any provision of 
     law referred to in section 2302(b) (1), (8), and (9) by--
       ``(I) providing for equal employment opportunity through 
     affirmative action; or
       ``(II) providing any right or remedy available to any 
     employee or applicant for employment in the public service;
       ``(D) any other provision of this part (as described in 
     subsection (c)); or
       ``(E) any rule or regulation prescribed under any provision 
     of law referred to in this paragraph; and
       ``(4) not be limited by any specific law, authority, rule, 
     or regulation prescribed under this title that is waived in 
     regulations prescribed under this chapter.
       ``(c) Other Nonwaivable Provisions.--The other provisions 
     of this part referred to in subsection (b)(3)(D) are (to the 
     extent not otherwise specified in this title)--
       ``(1) subparts A, B, E, G, and H of this part; and
       ``(2) chapters 41, 45, 47, 55, 57, 59, 71, 72, 73, and 79, 
     and this chapter.

[[Page S7192]]

       ``(d) Limitations Relating to Pay.--(1) Nothing in this 
     section shall constitute authority to modify the pay of any 
     employee who serves in an Executive Schedule position under 
     subchapter II of chapter 53 of this title.
       ``(2) Except as provided for in paragraph (1), the total 
     amount in a calendar year of allowances, differentials, 
     bonuses, awards, or other similar cash payments paid under 
     this title to any employee who is paid under section 5376 or 
     5383 of this title or under title 10 or under other 
     comparable pay authority established for payment of 
     Department of Defense senior executive or equivalent 
     employees may not exceed the total annual compensation 
     payable to the Vice President under section 104 of title 3.
       ``(e) Provisions To Ensure Collaboration With Employee 
     Representatives.--(1) In order to ensure that the authority 
     of this section is exercised in collaboration with, and in a 
     manner that ensures the participation of, employee 
     representatives in the planning, development, and 
     implementation of the National Security Personnel System, the 
     Secretary and the Director shall provide for the following:
       ``(A) The Secretary and the Director shall, with respect to 
     any proposed system or adjustment--
       ``(i) provide to the employee representatives representing 
     any employees who might be affected a written description of 
     the proposed system or adjustment (including the reasons why 
     it is considered necessary);
       ``(ii) give such representatives at least 30 calendar days 
     (unless extraordinary circumstances require earlier action) 
     to review and make recommendations with respect to the 
     proposal; and
       ``(iii) give any recommendations received from such 
     representatives under clause (ii) full and fair consideration 
     in deciding whether or how to proceed with the proposal.
       ``(B) Following receipt of recommendations, if any, from 
     such employee representatives with respect to a proposal 
     described in subparagraph (A), the Secretary and the Director 
     shall accept such modifications to the proposal in response 
     to the recommendations as they determine advisable and shall, 
     with respect to any parts of the proposal as to which they 
     have not accepted the recommendations--
       ``(i) notify Congress of those parts of the proposal, 
     together with the recommendations of the employee 
     representatives;
       ``(ii) meet and confer for not less than 30 calendar days 
     with the employee representatives, in order to attempt to 
     reach agreement on whether or how to proceed with those parts 
     of the proposal; and
       ``(iii) at the Secretary's option, or if requested by a 
     majority of the employee representatives participating, use 
     the services of the Federal Mediation and Conciliation 
     Service during such meet and confer period to facilitate the 
     process of attempting to reach agreement.
       ``(C)(i) Any part of the proposal as to which the 
     representatives do not make a recommendation, or as to which 
     the recommendations are accepted by the Secretary and the 
     Director, may be implemented immediately.
       ``(ii) With respect to any parts of the proposal as to 
     which recommendations have been made but not accepted by the 
     Secretary and the Director, at any time after 30 calendar 
     days have elapsed since the initiation of the congressional 
     notification, consultation, and mediation procedures set 
     forth in subparagraph (B), if the Secretary, in his 
     discretion, determines that further consultation and 
     mediation is unlikely to produce agreement, the Secretary may 
     implement any or all of such parts (including any 
     modifications made in response to the recommendations as the 
     Secretary determines advisable), but only after 30 days have 
     elapsed after notifying Congress of the decision to implement 
     the part or parts involved (as so modified, if applicable).
       ``(iii) The Secretary shall notify Congress promptly of the 
     implementation of any part of the proposal and shall furnish 
     with such notice an explanation of the proposal, any changes 
     made to the proposal as a result of recommendations from the 
     employee representatives, and of the reasons why 
     implementation is appropriate under this subparagraph.
       ``(D) If a proposal described in subparagraph (A) is 
     implemented, the Secretary and the Director shall--
       ``(i) develop a method for the employee representatives to 
     participate in any further planning or development which 
     might become necessary; and
       ``(ii) give the employee representatives adequate access to 
     information to make that participation productive.
       ``(2) The Secretary may, at the Secretary's discretion, 
     engage in any and all collaboration activities described in 
     this subsection at an organizational level above the level of 
     exclusive recognition.
       ``(3) In the case of any employees who are not within a 
     unit with respect to which a labor organization is accorded 
     exclusive recognition, the Secretary and the Director may 
     develop procedures for representation by any appropriate 
     organization which represents a substantial percentage of 
     those employees or, if none, in such other manner as may be 
     appropriate, consistent with the purposes of this subsection.
       ``(f) Pay-for-Performance Evaluation System.--(1) The 
     National Security Personnel System established in accordance 
     with this chapter shall include a pay-for-performance 
     evaluation system to better link individual pay to 
     performance and provide an equitable method for appraising 
     and compensating employees.
       ``(2) The regulations implementing this chapter shall--
       ``(A) group employees into pay bands in accordance with the 
     type of work that such employees perform and their level of 
     responsibility;
       ``(B) establish a performance rating process, which shall 
     include, at a minimum--
       ``(i) rating periods;
       ``(ii) communication and feedback requirements;
       ``(iii) performance scoring systems;
       ``(iv) a system for linking performance scores to salary 
     increases and performance incentives;
       ``(v) a review process;
       ``(vi) a process for addressing performance that fails to 
     meet expectations; and
       ``(vii) a pay-out process;
       ``(C) establish an upper and lower salary level for each 
     pay band;
       ``(D) ensure that performance objectives are established 
     for individual position assignments and position 
     responsibilities; and
       ``(E) establish performance factors to be used to evaluate 
     the accomplishment of performance objectives and ensure that 
     comparable scores are assigned for comparable performance, 
     while accommodating diverse individual objectives.
       ``(3) For fiscal years 2004 through 2008, the overall 
     amount allocated for compensation of the civilian employees 
     of an organizational or functional unit of the Department of 
     Defense that is included in the National Security Personnel 
     System shall not be less than the amount of civilian pay that 
     would have been allocated to such compensation under the 
     General Schedule system, based on--
       ``(A) the number and mix of employees in such 
     organizational or functional unit prior to the conversion of 
     such employees to the National Security Personnel System; and
       ``(B) adjusted for normal step increases and rates of 
     promotion that would have been expected, had such employees 
     remained in the General Schedule system.
       ``(4) The regulations implementing the National Security 
     Personnel System shall provide a formula for calculating the 
     overall amount to be allocated for fiscal years after fiscal 
     year 2008 for compensation of the civilian employees of an 
     organizational or functional unit of the Department of 
     Defense that is included in the National Security Personnel 
     System. The formula shall ensure that such employees are not 
     disadvantaged in terms of the overall amount of pay available 
     as a result of conversion to the National Security Personnel 
     System, while providing flexibility to accommodate changes in 
     the function of the organization, changes in the mix of 
     employees performing those functions, and other changed 
     circumstances that might impact pay levels.
       ``(5) Funds allocated for compensation of the civilian 
     employees of an organizational or functional unit of the 
     Department of Defense in accordance with paragraph (3) or (4) 
     may not be made available for any other purpose unless the 
     Secretary of Defense determines that such action is necessary 
     in the national interest and submits a reprogramming 
     notification in accordance with established procedures.
       ``(g) Performance Management System.--The Secretary of 
     Defense shall develop and implement for organizational and 
     functional units included in the National Security Personnel 
     System, a performance management system that includes--
       ``(1) adherence to merit principles set forth in section 
     2301;
       ``(2) a fair, credible, and equitable system that results 
     in meaningful distinctions in individual employee 
     performance;
       ``(3) a link between the performance management system and 
     the agency's strategic plan;
       ``(4) a means for ensuring employee involvement in the 
     design and implementation of the system;
       ``(5) adequate training and retraining for supervisors, 
     managers, and employees in the implementation and operation 
     of the performance management system;
       ``(6) a process for ensuring ongoing performance feedback 
     and dialogue between supervisors, managers, and employees 
     throughout the appraisal period, and setting timetables for 
     review;
       ``(7) effective transparency and accountability measures to 
     ensure that the management of the system is fair, credible, 
     and equitable, including appropriate independent 
     reasonableness, reviews, internal grievance procedures, 
     internal assessments, and employee surveys; and
       ``(8) a means for ensuring that adequate agency resources 
     are allocated for the design, implementation, and 
     administration of the performance management system.
       ``(h) Provisions Regarding National Level Bargaining.--(1) 
     The National Security Personnel System implemented or 
     modified under this chapter may include employees of the 
     Department of Defense from any bargaining unit with respect 
     to which a labor organization has been accorded exclusive 
     recognition under chapter 71 of this title.
       ``(2) For issues impacting more than 1 bargaining unit so 
     included under paragraph (1), the Secretary may bargain at an 
     organizational level above the level of exclusive 
     recognition. Any such bargaining shall--
       ``(A) be binding on all subordinate bargaining units at the 
     level of recognition and

[[Page S7193]]

     their exclusive representatives, and the Department of 
     Defense and its subcomponents, without regard to levels of 
     recognition;
       ``(B) supersede all other collective bargaining agreements, 
     including collective bargaining agreements negotiated with an 
     exclusive representative at the level of recognition, except 
     as otherwise determined by the Secretary; and
       ``(C) not be subject to further negotiations for any 
     purpose, including bargaining at the level of recognition, 
     except as provided for by the Secretary.
       ``(3) The National Guard Bureau and the Army and Air Force 
     National Guard are excluded from coverage under this 
     subsection.
       ``(4) Any bargaining completed pursuant to this subsection 
     with a labor organization not otherwise having national 
     consultation rights with the Department of Defense or its 
     subcomponents shall not create any obligation on the 
     Department of Defense or its subcomponents to confer national 
     consultation rights on such a labor organization.
       ``(i) Provisions Relating to Appellate Procedures.--(1) The 
     Secretary--
       ``(A) may establish an appeals process that provides 
     employees of the Department of Defense organizational and 
     functional units that are included in the National Security 
     Personnel System fair treatment in any appeals that they 
     bring in decisions relating to their employment; and
       ``(B) shall in prescribing regulations for any such appeals 
     process--
       ``(i) ensure that employees in the National Security 
     Personnel System are afforded the protections of due process; 
     and
       ``(ii) toward that end, be required to consult with the 
     Merit Systems Protection Board before issuing any such 
     regulations.
       ``(2) Regulations implementing the appeals process may 
     establish legal standards for adverse actions to be taken on 
     the basis of employee misconduct or performance that fails to 
     meet expectations. Such standards shall be consistent with 
     the public employment principles of merit and fitness set 
     forth in section 2301. Legal standards and precedents applied 
     before the effective date of this section by the Merit 
     Systems Protection Board and the courts under chapters 75 and 
     77 of this title shall apply to employees of organizational 
     and functional units included in the National Security 
     Personnel System, unless such standards and precedents are 
     inconsistent with legal standards established under this 
     paragraph.
       ``(3) An employee who is adversely affected by a final 
     decision under the appeals process established under 
     paragraph (1) shall have the right to petition the Merit 
     Systems Protection Board for review of that decision. The 
     Board may dismiss any petition that, in the view of the 
     Board, does not raise substantial questions of fact or law. 
     No personnel action shall be stayed and no interim relief 
     shall be granted during the pendency of the Board's review 
     unless specifically ordered by the Board.
       ``(4) The Board shall order such corrective action as the 
     Board considers appropriate if the Board determines that the 
     decision was--
       ``(A) arbitrary, capricious, an abuse of discretion, or 
     otherwise not in accordance with law;
       ``(B) obtained without procedures required by law, rule, or 
     regulation having been followed; or
       ``(C) unsupported by substantial evidence.
       ``(5) An employee who is adversely affected by a final 
     order or decision of the Board may obtain judicial review of 
     the order or decision as provided in section 7703. The 
     Secretary of Defense may obtain judicial review of any final 
     order or decision of the Board under the same terms and 
     conditions as provided for the Director of the Office of 
     Personnel Management under section 7703.
       ``(6) Nothing in this subsection shall be construed to 
     authorize the waiver of any provision of law, including an 
     appeals provision providing a right or remedy under section 
     2302(b) (1), (8), or (9), that is not otherwise waivable 
     under subsection (a).
       ``(j) Phase-In.--(1) The Secretary of Defense is authorized 
     to apply the National Security Personnel System established 
     in accordance with subsection (a) to organizational or 
     functional units including--
       ``(A) up to 120,000 civilian employees of the Department of 
     Defense in fiscal year 2004;
       ``(B) up to 240,000 civilian employees of the Department of 
     Defense in fiscal year 2005; and
       ``(C) more than 240,000 civilian employees in a fiscal year 
     after fiscal year 2005, if the Secretary of Defense 
     determines in accordance with subsection (a) that the 
     Department has in place--
       ``(i) a performance management system that meets the 
     criteria specified in subsection (g); and
       ``(ii) a pay formula that meets the criteria specified in 
     subsection (f).
       ``(2) Civilian employees in organizational or functional 
     units participating in Department of Defense personnel 
     demonstration projects shall be counted as participants in 
     the National Security Personnel System for the purpose of the 
     limitations established under paragraph (1).
       ``(k) Provisions Related to Separation and Retirement 
     Incentives.--(1) The Secretary may establish a program within 
     the Department of Defense under which employees may be 
     eligible for early retirement, offered separation incentive 
     pay to separate from service voluntarily, or both. This 
     authority may be used to reduce the number of personnel 
     employed by the Department of Defense or to restructure the 
     workforce to meet mission objectives without reducing the 
     overall number of personnel. This authority is in addition 
     to, and notwithstanding, any other authorities established by 
     law or regulation for such programs.
       ``(2)(A) The Secretary may not authorize the payment of 
     voluntary separation incentive pay under paragraph (1) to 
     more than 10,000 employees in any fiscal year, except that 
     employees who receive voluntary separation incentive pay as a 
     result of a closure or realignment of a military installation 
     under the Defense Base Closure and Realignment Act of 1990 
     (title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) shall 
     not be included in that number.
       ``(B) The Secretary shall prepare a report each fiscal year 
     setting forth the number of employees who received such pay 
     as a result of a closure or realignment of a military base as 
     described under subparagraph (A).
       ``(C) The Secretary shall submit the report under 
     subparagraph (B) to--
       ``(i) the Committee on the Armed Services and the Committee 
     on Government Affairs of the Senate; and
       ``(ii) the Committee on Armed Services and the Committee on 
     Government Reform of the House of Representatives.
       ``(3) For purposes of this section, the term `employee' 
     means an employee of the Department of Defense, serving under 
     an appointment without time limitation, except that such term 
     does not include--
       ``(A) a reemployed annuitant under subchapter III of 
     chapter 83 or chapter 84 of this title, or another retirement 
     system for employees of the Federal Government;
       ``(B) an employee having a disability on the basis of which 
     such employee is or would be eligible for disability 
     retirement under any of the retirement systems referred to in 
     paragraph (1); or
       ``(C) for purposes of eligibility for separation incentives 
     under this section, an employee who is in receipt of a 
     decision notice of involuntary separation for misconduct or 
     unacceptable performance.
       ``(4) An employee who is at least 50 years of age and has 
     completed 20 years of service, or has at least 25 years of 
     service, may, pursuant to regulations promulgated under this 
     section, apply and be retired from the Department of Defense 
     and receive benefits in accordance with chapter 83 or 84 if 
     the employee has been employed continuously within the 
     Department of Defense for more than 30 days before the date 
     on which the determination to conduct a reduction or 
     restructuring within 1 or more Department of Defense 
     components is approved pursuant to the system established 
     under subsection (a).
       ``(5)(A) Separation pay shall be paid in a lump sum or in 
     installments and shall be equal to the lesser of--
       ``(i) an amount equal to the amount the employee would be 
     entitled to receive under section 5595(c) of this title, if 
     the employee were entitled to payment under such section; or
       ``(ii) $25,000.
       ``(B) Separation pay shall not be a basis for payment, and 
     shall not be included in the computation, of any other type 
     of Government benefit. Separation pay shall not be taken into 
     account for the purpose of determining the amount of any 
     severance pay to which an individual may be entitled under 
     section 5595 of this title, based on any other separation.
       ``(C) Separation pay, if paid in installments, shall cease 
     to be paid upon the recipient's acceptance of employment by 
     the Federal Government, or commencement of work under a 
     personal services contract as described in paragraph (5).
       ``(6) An employee who receives separation pay under this 
     section on the basis of a separation occurring on or after 
     the date of the enactment of the Federal Workforce 
     Restructuring Act of 1994 (Public Law 103-236; 108 Stat. 111) 
     and accepts employment with the Government of the United 
     States, or who commences work through a personal services 
     contract with the United States within 5 years after the date 
     of the separation on which payment of the separation pay is 
     based, shall be required to repay the entire amount of the 
     separation pay to the Department of Defense. If the 
     employment is with an Executive agency (as defined by section 
     105 of this title) other than the Department of Defense, the 
     Director may, at the request of the head of that agency, 
     waive the repayment if the individual involved possesses 
     unique abilities and is the only qualified applicant 
     available for the position. If the employment is within the 
     Department of Defense, the Secretary may waive the repayment 
     if the individual involved is the only qualified applicant 
     available for the position. If the employment is with an 
     entity in the legislative branch, the head of the entity or 
     the appointing official may waive the repayment if the 
     individual involved possesses unique abilities and is the 
     only qualified applicant available for the position. If the 
     employment is with the judicial branch, the Director of the 
     Administrative Office of the United States Courts may waive 
     the repayment if the individual involved possesses unique 
     abilities and is the only qualified applicant available for 
     the position.
       ``(7) Under this program, early retirement and separation 
     pay may be offered only pursuant to regulations established 
     by the Secretary, subject to such limitations or conditions 
     as the Secretary may require.
       ``(l) Provisions Relating to Hiring.--Notwithstanding 
     subsection (c), the Secretary may exercise any hiring 
     flexibilities that would otherwise be available to the 
     Secretary under section 4703(a)(1). Veterans shall be offered 
     preference in hiring.

[[Page S7194]]

     ``Sec. 9903. Contracting for personal services

       ``(a) Outside the United States.--The Secretary may 
     contract with individuals for services to be performed 
     outside the United States as determined by the Secretary to 
     be necessary and appropriate for supporting the activities 
     and programs of the Department of Defense outside the United 
     States.
       ``(b) No Federal Employees.--Individuals employed by 
     contract under subsection (a) shall not, by virtue of such 
     employment, be considered employees of the United States 
     Government for the purposes of--
       ``(1) any law administered by the Office of Personnel 
     Management; or
       ``(2) under the National Security Personnel System 
     established under this chapter.
       ``(c) Applicability of Law.--Any contract entered into 
     under subsection (a) shall not be subject to any statutory 
     provision prohibiting or restricting the use of personal 
     service contracts.

     ``Sec. 9904. Attracting highly qualified experts

       ``(a) In General.--The Secretary may carry out a program 
     using the authority provided in subsection (b) in order to 
     attract highly qualified experts in needed occupations, as 
     determined by the Secretary.
       ``(b) Authority.--Under the program, the Secretary may--
       ``(1) appoint personnel from outside the civil service and 
     uniformed services (as such terms are defined in section 2101 
     of this title) to positions in the Department of Defense 
     without regard to any provision of this title governing the 
     appointment of employees to positions in the Department of 
     Defense;
       ``(2) prescribe the rates of basic pay for positions to 
     which employees are appointed under paragraph (1) at rates 
     not in excess of the maximum rate of basic pay authorized for 
     senior-level positions under section 5376 of this title, as 
     increased by locality-based comparability payments under 
     section 5304 of this title, notwithstanding any provision of 
     this title governing the rates of pay or classification of 
     employees in the executive branch; and
       ``(3) pay any employee appointed under paragraph (1) 
     payments in addition to basic pay within the limits 
     applicable to the employee under subsection (d).
       ``(c) Limitation on Term of Appointment.--(1) Except as 
     provided in paragraph (2), the service of an employee under 
     an appointment made pursuant to this section may not exceed 5 
     years.
       ``(2) The Secretary may, in the case of a particular 
     employee, extend the period to which service is limited under 
     paragraph (1) by up to 1 additional year if the Secretary 
     determines that such action is necessary to promote the 
     Department of Defense's national security missions.
       ``(d) Limitations on Additional Payments.--(1) The total 
     amount of the additional payments paid to an employee under 
     this section for any 12-month period may not exceed the 
     lesser of the following amounts:
       ``(A) $50,000 in fiscal year 2004, which may be adjusted 
     annually thereafter by the Secretary, with a percentage 
     increase equal to one-half of 1 percentage point less than 
     the percentage by which the Employment Cost Index, published 
     quarterly by the Bureau of Labor Statistics, for the base 
     quarter of the year before the preceding calendar year 
     exceeds the Employment Cost Index for the base quarter of the 
     second year before the preceding calendar year.
       ``(B) The amount equal to 50 percent of the employee's 
     annual rate of basic pay.

     For purposes of this paragraph, the term `base quarter' has 
     the meaning given such term by section 5302(3).
       ``(2) An employee appointed under this section is not 
     eligible for any bonus, monetary award, or other monetary 
     incentive for service except for payments authorized under 
     this section.
       ``(3) Notwithstanding any other provision of this 
     subsection or of section 5307, no additional payments may be 
     paid to an employee under this section in any calendar year 
     if, or to the extent that, the employee's total annual 
     compensation will exceed the maximum amount of total annual 
     compensation payable at the salary set in accordance with 
     section 104 of title 3.
       ``(e) Limitation on Number of Highly Qualified Experts.--
     The number of highly qualified experts appointed and retained 
     by the Secretary under subsection (b)(1) shall not exceed 300 
     at any time.
       ``(f) Savings Provisions.--In the event that the Secretary 
     terminates this program, in the case of an employee who, on 
     the day before the termination of the program, is serving in 
     a position pursuant to an appointment under this section--
       ``(1) the termination of the program does not terminate the 
     employee's employment in that position before the expiration 
     of the lesser of--
       ``(A) the period for which the employee was appointed; or
       ``(B) the period to which the employee's service is limited 
     under subsection (c), including any extension made under this 
     section before the termination of the program; and
       ``(2) the rate of basic pay prescribed for the position 
     under this section may not be reduced as long as the employee 
     continues to serve in the position without a break in 
     service.

     ``Sec. 9905. Special pay and benefits for certain employees 
       outside the United States

       ``The Secretary may provide to certain civilian employees 
     of the Department of Defense assigned to activities outside 
     the United States as determined by the Secretary to be in 
     support of Department of Defense activities abroad hazardous 
     to life or health or so specialized because of security 
     requirements as to be clearly distinguishable from normal 
     Government employment--
       ``(1) allowances and benefits--
       ``(A) comparable to those provided by the Secretary of 
     State to members of the Foreign Service under chapter 9 of 
     title I of the Foreign Service Act of 1980 (Public Law 96-
     465, 22 U.S.C. 4081 et seq.) or any other provision of law; 
     or
       ``(B) comparable to those provided by the Director of 
     Central Intelligence to personnel of the Central Intelligence 
     Agency; and
       ``(2) special retirement accrual benefits and disability in 
     the same manner provided for by the Central Intelligence 
     Agency Retirement Act (50 U.S.C. 2001 et seq.) and in section 
     18 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
     403r).''.
       (2) The table of chapters for part III of such title is 
     amended by adding at the end of subpart I the following new 
     item:

   ``99. Department of Defense National Security Personnel 
           System.............................................  9901''.

       (b) Impact on Department of Defense Civilian Personnel.--
     (1) Any exercise of authority under chapter 99 of such title 
     (as added by subsection (a)), including under any system 
     established under such chapter, shall be in conformance with 
     the requirements of this subsection.
       (2) No other provision of this Act or of any amendment made 
     by this Act may be construed or applied in a manner so as to 
     limit, supersede, or otherwise affect the provisions of this 
     section, except to the extent that it does so by specific 
     reference to this section.
       (c) External Third-Party Review of Labor-Management 
     Disputes.--Chapter 71 of title 5, United States Code is 
     amended--
       (1) in section 7105(a), by adding at the end the following:
       ``(3)(A) In carrying out subparagraphs (C), (D), (E), (F), 
     and (H) of paragraph (2), in matters that involve agencies 
     and employees of the Department of Defense, the Authority 
     shall take final action within 180 days after the filing of a 
     charge, unless--
       ``(i) there is express approval of the parties to extend 
     the 180-day period; or
       ``(ii) the Authority extends the 180-day period under 
     subparagraph (B).
       ``(B) In cases raising significant issues that involve 
     agencies and employees of the Department of Defense, the 
     Authority may extend the time limit under subparagraph (A), 
     and the time limits under sections 7105(e)(1), 7105(f) and 
     7118(a)(9) of this title, if the Authority gives notice to 
     the public of the opportunity for interested persons to file 
     amici curiae briefs.'';
       (2) in section 7105(e), by adding at the end the following:
       ``(3) If a representation inquiry or election involves 
     employees of the Department of Defense, the regional director 
     shall, absent express approval from the parties, complete the 
     tasks delegated to the regional authority under paragraph (1) 
     within 180 days after the delegation.'';
       (3) in section 7105(f)--
       (A) by inserting ``(1)'' after ``(f)'';
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (C) by adding at the end the following:
       ``(2) In any dispute that involves agencies and employees 
     within the Department of Defense, if review is granted, the 
     Authority action to affirm, modify, or reverse any action 
     shall, absent express approval from the parties, be completed 
     within 120 days after the grant of review.'';
       (4) in section 7118(a), by adding at the end the following:
       ``(9)(A) Any individual conducting a hearing described in 
     paragraph (7) or (8), involving an unfair labor practice 
     allegation within the Department of Defense, shall complete 
     the hearing and make any determinations within 180 days after 
     the filing of a charge under paragraph (1). The Authority's 
     review of any such determinations shall, absent express 
     approval from the parties, be completed within 180 days after 
     the filing of any exceptions.
       ``(B) The 180-day periods under subparagraph (A) shall 
     apply, unless there is express approval of the parties to 
     extend a period.''; and
       (5) in section 7119(c)(5)(C), by adding at the end the 
     following: ``The Panel shall, absent express approval from 
     the parties, take final action within 180 days after being 
     presented with an impasse between agencies and employees 
     within the Department of Defense.''.

     SEC. 3. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN 
                   EMPLOYEES.

       (a) In General.--Subsection (b) of section 6323 of title 5, 
     United States Code, is amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and at the end of clause (ii), as 
     so redesignated, by inserting ``or''; and
       (B) by inserting ``(A)'' after ``(2)''; and
       (2) by inserting the following before the text beginning 
     with ``is entitled'':
       ``(B) performs full-time military service as a result of a 
     call or order to active duty in support of a contingency 
     operation as defined in section 101(a)(13) of title 10;''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to military service performed on or after the 
     date of the enactment of this Act.
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