[Congressional Record (Bound Edition), Volume 150 (2004), Part 1]
[House]
[Pages 531-543]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      NASA FLEXIBILITY ACT OF 2003

  The SPEAKER pro tempore. Pursuant to House Resolution 502 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the State of the Union for the consideration of the Senate bill, S. 
610.

                              {time}  1056


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the consideration of the 
Senate bill (S. 610) to amend the provision of title 5, United States 
Code, to provide for workforce flexibilities and certain Federal 
personnel provisions relating to the National Aeronautics and Space 
Administration, and for other purposes, with Mr. Isakson in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered as having 
been read the first time.
  Under the rule, the gentleman from New York (Mr. Boehlert) and the 
gentleman from Tennessee (Mr. Gordon) each will control 20 minutes; and 
the gentleman from Virginia (Mr. Tom Davis) and the gentleman from 
Illinois (Mr. Davis) each will control 10 minutes.
  The Chair recognizes the gentleman from New York (Mr. Boehlert).
  Mr. BOEHLERT. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I rise in strong support of S. 610 and I urge my 
colleagues to approve it and send it to the White House for the 
President's signature.
  This measure is a top priority of the entire administration, 
especially, of course, of the NASA Administrator. We have taken more 
than long enough to turn the bill into law.
  The need for this bill, it seems to me, is beyond dispute. Events of 
the past year have highlighted NASA's need to attract and retain the 
best workforce imaginable, and yet NASA is on the brink of losing the 
talent that it already has.
  Within just 5 years, 5 years, fully one-quarter of NASA's workforce 
will be eligible to retire. It is no wonder that the General Accounting 
Office has repeatedly cited strengthening human capital as one of 
NASA's top management challenges. We must stem the tide of the brain 
drain. S. 610 is a targeted, carefully crafted, moderate approach to 
giving NASA additional tools to meet that challenge. The bill does not 
make any radical departures from current law. Rather, it modifies and 
expands existing workforce authorities so that NASA can compete with 
the private sector in the labor market. That is just common sense.
  Will changes in civil service laws solve all of NASA's workforce 
problems? Of course not. But NASA will not be better prepared to 
recruit and retain the workforce it needs if it is competing with one 
hand tied behind its back, as it is with current law.
  This bill began as a proposal from NASA. We went over that proposal 
with a fine tooth comb, accepted some provisions, rejected others, and 
modified many more to clarify and target the new authority.
  As a result of those negotiations and additional work in the other 
body, we have finally ended up with the noncontroversial product that 
is before us today. A bill eagerly awaited by the administration, a 
bill that faces no opposition from organized labor, a bill that passed 
the Senate by unanimous consent.

                              {time}  1100

  In short, this is a bill that will make a real difference to NASA and 
the work we charge it to do without taking any untested approaches or 
crossing any ideological trip wires.
  I should note that the bill before us is nearly identical to my 
original bill, H.R. 1085, as reported by the House Committee on Science 
almost 6 months ago.
  The most significant difference between the two measures is that S. 
610 no longer includes a provision that would have increased the number 
of employees who could participate in a

[[Page 532]]

personnel demonstration project. We are trying to minimize the number 
of people that can be in a pilot project. If we do not limit the 
number, we end up having a universal project. NASA was never able to 
give us any sense of how it would use the requested new authority, and 
I have no regrets that it has not remained in the bill.
  I probably should also point out that we never included in H.R. 1085 
authority the administration sought to allow private sector employees 
to work as government employees for a set period of time. This reverse 
Intergovernmental Personnel Act program seemed destined to confuse 
further the line between contract and government workers that already 
bedevils NASA.
  The result of these kinds of decisions, once again, is that we have 
before us a bill that is not the least bit controversial, but is no 
less significant for that. It took a lot of work to get us to this 
point, but it will be worth it.
  I want to thank the gentleman from Virginia (Chairman Tom Davis) and 
the rest of the Committee on Government Reform for working so closely 
with us on this measure. The gentleman from Virginia (Mr. Tom Davis) 
had his own NASA provision as a part of a larger workforce bill, H.R. 
1836.
  I also want to thank the gentleman from Tennessee (Mr. Gordon), our 
new ranking member, for getting us off to such an amicable start. It 
has been a pleasure to work with the gentleman from Tennessee (Mr. 
Gordon) all these years, and I welcome him to this position of new 
responsibility and authority and am confident he will serve us all well 
in this post and will carry on the tradition that we have established 
in the Committee on Science of working across the aisle, working 
together to sort out things, to minimize our differences and maximize 
the opportunities we have to address real problems and deal with them 
responsibly.
  The gentleman from Tennessee (Mr. Gordon) was willing to look at this 
bill afresh in light of the work we had done with the Senate and events 
that had transpired since our markup. As a result, we are coming to the 
floor as a team. Not everyone in this Chamber would have been willing 
to do that, and I greatly appreciate it.
  I also want to thank the gentleman from California (Mr. Rohrabacher), 
the chairman of our Subcommittee on Space and Aeronautics, who 
contributed important scholarship provisions to the bill, and to 
welcome the gentleman from Texas (Mr. Lampson), the new ranking member 
of the subcommittee, my friend and colleague.
  Mr. Chairman, as I have mentioned, this bill is ready for the 
President's signature. I urge my colleagues to oppose any amendments 
that might arise and to give this bill the overwhelming support it 
deserves and that NASA so needs.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GORDON. Mr. Chairman, I yield myself such time as I may consume.
  First, Mr. Chairman, let me thank the gentleman from New York (Mr. 
Boehlert), my chairman, for his kind remarks; and let me concur in that 
our committee has a long tradition of working in a bipartisan manner. I 
cannot think of anyone that I would rather work with than our chairman, 
and I look forward to continuing that progress for our country.
  Mr. Chairman, the NASA workforce is a critical national asset. We 
need to ensure that its strength is maintained if NASA is to undertake 
all the challenging activities envisioned for it in the coming decades. 
NASA's workforce is a highly skilled workforce. They truly are rocket 
scientists.
  Yet the NASA workforce is under stress. Those stresses include 
infrastructure that is aging and in need of repair and upgrading, 
diversion of resources from existing tasks to provide money for 
proposed new initiatives, and outsourcing and privatization agendas 
that call into question the agency's commitment to careers at NASA. 
Last year, I would have added another item to that list, namely, a lack 
of long-term goals for the agency.
  However, President Bush has now proposed an initiative to go back to 
the Moon and then at some point in the future send humans to Mars. I 
have long supported the idea that the space program needs some clear 
and compelling long-term goals. So I welcome the President's decision 
to propose an initiative. Of course, setting goals is an important 
first step, but we will still need to assess whether or not the 
President's plan to achieve these goals is viable. We will have a 
better idea of that once the fiscal year 2005 budget request is 
released next week and once NASA provides more information on specifics 
of the initiative.
  Clearly, it will not send a good signal to NASA's workforce if the 
new initiative winds up being paid for by cannibalizing other important 
NASA activities. It will not be fair to the NASA workforce if they are 
tasked with a set of challenging and ambitious goals and a budget that 
is inadequate to achieve those goals.
  Turning to S. 610, the NASA Flexibility Act of 2003, I believe that 
it is an improvement over the legislation considered by the Committee 
on Science last year. It modifies or eliminates a number of provisions 
that I and other Members have found objectionable; and at the same 
time, we should not lull ourselves into believing that this bill will 
solve all of NASA's workforce problems. For example, S. 610 includes a 
number of enhanced recruitment and retention bonuses. Yet I have been 
troubled by the indications from NASA's own data that NASA may not be 
using its existing authorities to the fullest extent due to competing 
budgetary pressures at the various centers, pressures that may well be 
increased.
  Apparently my concerns are shared by NASA's inspector general. He has 
initiated an investigation into the extent to which NASA is making use 
of its existing workforce authorities. I look forward to hearing the 
results of that investigation.
  With respect to the space shuttle, under the President's plan, the 
civil servants and contract personnel supporting the shuttle program 
will see their jobs disappear over the next 6 years. The best of those 
employees are not going to wait around for the inevitable. That fact 
puts the onus on NASA's management to ensure that the critical skills 
needed to fly the shuttle safely will be retained over the entire 
period. I certainly hope that NASA has a credible shuttle workforce 
retention plan ready to go. If not, NASA's management needs to put one 
in place as soon as possible if we are to avoid a hemorrhaging of 
critical skills from the shuttle program.
  Finally, I remain concerned that S. 610 is a bill focused solely on 
the NASA workforce. However, the leadership of NASA has argued strongly 
that they need this legislation to maintain a strong workforce. As a 
result of that and as a result of the gentleman from New York (Chairman 
Boehlert) graciously accepting some improvements to the bill, I will 
support passage of S. 610 today; and I will be watching over the coming 
years to make sure that NASA's performance on workforce issues matches 
its stated intentions.
  Mr. Chairman, I reserve the balance of my time.
  Mr. BOEHLERT. Mr. Chairman, I yield 3 minutes to the gentleman from 
California (Mr. Rohrabacher), the distinguished chairman of the 
Subcommittee on Space and Aeronautics.
  Mr. ROHRABACHER. Mr. Chairman, I rise in support of S. 610, the NASA 
Flexibility Act of 2003. NASA engineers, scientists, and technicians 
have been the space agency's true pioneers. These talented men and 
women dedicated to pushing the technological envelope are credited with 
opening new vistas of progress for all of humankind. We must look at 
them as a valuable, valuable asset.
  With the recent announcement of our President, NASA's workforce will 
again be looked upon to extend the reach of our capabilities, to extend 
our reach to the Moon and then farther on into the heavens. Let us hope 
that the can-do spirit of the past will be reawakened in NASA as a 
result of the President's visionary goals-setting coupled with what I 
consider to be a very pragmatic strategy as set forward by the 
President.
  Let us hope the young people throughout America will hear the

[[Page 533]]

President's words and are excited and activated by this new goal-
setting by the President of the United States and thus by the executive 
branch of the United States Government.
  As we begin a new chapter in America's space experience, we are doing 
our job on the legislative end. S. 610 will help ensure that talented 
and creative people continue to commit their time and services to 
America's space effort so we can achieve the goals that I just referred 
to.
  An aging workforce today threatens the future of our civil space 
program. In response to this impending crisis, this legislation calls 
for remedies aimed at helping NASA become more flexible in recruiting, 
retaining, and restructuring its workforce to address the agency's 
critical needs. For example, major provisions of the bill authorize 
NASA to provide greater pay and bonuses to individuals critical to the 
goals, missions, and objectives of the agency, as well as to authorize 
and set up a scholarship for a service program in which NASA can pay a 
student's tuition in exchange for accepting employment at NASA upon 
graduation; and I am particularly proud of that provision.
  The gentleman from New York's (Chairman Boehlert) continuing 
leadership and all of his hard work have been making this reform 
possible; and given the administration's new vision for NASA, there is 
no better time for us to be tackling this workforce problem. I thank 
the chairman; I thank the ranking member; I thank the people on both 
sides of the aisle. We have worked on this in a bipartisan spirit, and 
this will give us the ability to accomplish great things in the future 
for our country.
  Mr. GORDON. Mr. Chairman, I yield 5 minutes to the gentleman from 
Texas (Mr. Lampson), the new ranking member of the Subcommittee on 
Space and Aeronautics.
  Mr. LAMPSON. Mr. Chairman, I thank the gentleman from Tennessee (Mr. 
Gordon), the ranking member, and want to commend him on his ascension 
to being ranking member on the Committee on Science and thank him not 
only for what he is going to be doing as ranking member but for the 
great work the gentleman has done on the committee along the way.
  It is a pleasure also to work with the gentleman from New York 
(Chairman Boehlert) and the gentleman from California (Mr. 
Rohrabacher), the chairman of the Subcommittee on Space and 
Aeronautics, as well; and I look forward to that.
  Mr. Chairman, I rise in support of S. 610; and even though it does 
not address all of the important issues facing the NASA workforce, 
including those outlined by the gentleman from Tennessee (Mr. Gordon) 
earlier, it is the only NASA workforce bill that we are likely to get 
out of this Congress this year, and as such, I intend to support it.
  When a House version of this workforce legislation was marked up by 
the Committee on Science last year, I objected to the lack of any 
challenging goals for NASA's human space flight program. I offered an 
amendment to establish some specific goals. Unfortunately, my amendment 
was defeated on a party-line vote. I thought that was a mistake, and 
now it appears that President Bush agrees with me; and he has announced 
this ambitious, long-term exploration initiative that mirrors my 
amendment in earlier legislation that I had introduced; and I am very 
pleased to see that happen.
  The challenge, however, will be in turning those goals into a reality 
in a manner that does not damage NASA's other important programs or 
take away from our commitments to those members of society who do 
indeed need our help.
  Mr. Chairman, NASA's management has said that they need this 
workforce legislation. I am prepared to support it because I deeply 
care about the hardworking, dedicated men and women who work at NASA 
and especially at the Johnson Space Center, and I want to do whatever 
might help them achieve their full potential. Yet simply increasing the 
size of the bonuses available to NASA employees is not a cure-all, 
especially if NASA is not making full use of its existing bonus 
authority, a possibility that is being investigated, as we speak, by 
NASA's inspector general.
  I do not believe that NASA's best and brightest are motivated 
primarily by money anyway. Rather, I think it is the chance to work on 
cutting-edge research and development and to attempt the near 
impossible that attracts them to NASA, and that is what is going to 
keep them there.
  I remember a year or so ago getting up and leaving our table at the 
committee hearing and going out into the audience and sitting with 
about 20 or 25 college students and asking them, when we were talking 
about financial benefits that would supposedly motivate them to go to 
work for NASA, what it was that they wanted to see, and the response 
was destination goals: it will give me an opportunity to live my dream, 
give me an opportunity to go work on something that will make a 
difference to society.
  That is also why I was so upset a few years ago when the NASA 
leadership decided to cancel the X-38 crew return vehicle project. The 
X-38/CRV was an exciting example of NASA employees coming up with an 
innovative, low-cost way of meeting an important space station 
requirement, and they were working hard to turn it into a reality. Yet 
it was cancelled just as it was nearing completion, and I might add, at 
a greater cost than it would have taken to complete it. The dedicated 
NASA team that had worked on that project was broken up and dispersed.
  So where are we now? It appears that after several years of false 
starts on a more expensive project for the X-38/CRV, NASA leadership 
has now decided to pay the Russians to provide the same capability, 
create jobs in Russia.
  I sponsored legislation to allow the United States to use the Soyuz 
after the Columbia tragedy, to give more flexibility to the 
administration.

                              {time}  1115

  The Congress is going to have to revisit the Iran Nonproliferation 
Act if we are going to rely on Soyuz, as the administration wants, to 
get us to and from the Space Station after the Shuttle is retired in 
2010.
  So whatever we may think of the wisdom of sending U.S. taxpayer 
dollars to Russia, it certainly does not strike me as being the way to 
reward innovation by the NASA workforce. Quite the contrary.
  I intend to take a close look at NASA's plans for the Space Station 
and the Space Shuttle as we review the fiscal 2005 budget request over 
the coming months. We owe it to the NASA workforce to ask the tough 
questions. We need to ensure that they are being given sensible plans 
to implement, as well as the tools to carry them out. In the meantime, 
I think that S. 610 represents an improvement over legislation that we 
considered earlier, and I am prepared to support it.
  Mr. BOEHLERT. Mr. Chairman, I yield 3 minutes to the distinguished 
gentleman from Michigan (Mr. Ehlers), a very valued member of the 
Committee on Science.
  Mr. EHLERS. Mr. Chairman, I thank the gentleman for yielding me this 
time.
  Mr. Chairman, today I rise in strong support of S. 610, the NASA 
Flexibility Act. The Committee on Science chairman, the gentleman from 
New York (Mr. Boehlert), and the Committee on Government Reform 
chairman, the gentleman from Virginia (Mr. Tom Davis) are to be 
commended for working closely with our colleagues in the other body, as 
well as with NASA and NASA's unions, in crafting the moderate, targeted 
and careful package of civil service modifications that resulted in S. 
610.
  All proposals from NASA, its unions, the House and Senate were 
considered, refined, debated and discussed in a series of hearings in 
both the House and Senate committees. Differences were debated openly 
and in a straightforward manner. These measures were carefully crafted 
after a year and a half of thorough deliberation. This has been an 
arduous process, but the outcome is an excellent piece of legislation 
with S. 610.

[[Page 534]]

  The real winner from all this hard work that went into this 
legislation will be the scientists and engineers at NASA. NASA is 
having a difficult time recruiting and retaining the best and the 
brightest workforce, as many NASA employees from the Apollo era have 
retired; and unfortunately, the bright, prospective, new talent we need 
in the agency is instead sometimes attracted to jobs paying more than 
the government can provide.
  NASA does many amazing things, as the Mars exploration rovers have 
demonstrated, but the agency also faces a number of challenges in 
addressing the recommendations of the Columbia Accident Investigation 
Board report. S. 610 will help to revitalize the agency, and I ask all 
Members to support this bill.
  Let me also mention another important aspect of this issue. We cannot 
do good science without good scientists, and we cannot do good 
engineering without good engineers. In our Nation, unfortunately, the 
engineering enrollments have been declining for 20 years, in a steady, 
slow decline. We are having problems in this Nation with getting good, 
bright engineers and scientists to do the work we need, not only at 
NASA but elsewhere.
  I am very pleased that the President recognized this important factor 
in his State of the Union speech when he mentioned the need to improve 
math and science education in this Nation. Today, over half of the 
graduate students in science and engineering in our Nation are from 
other countries. Our students are not competing well on graduate 
student admissions. And when we trace it back, it is because they were 
not excited about science by the time they finished the K-12 system, 
even though many are excited going into it. We must address that 
problem.
  We have addressed it to the best of our ability through math-science 
partnerships in the National Science Foundation and in the Department 
of Education. We must continue to support that, plus we also have to 
provide the resources for our Nation's teachers and our education 
system to provide the education that our future scientists and 
engineers need.
  I believe a combination of improving our K-12 system plus this bill 
will be a great asset not only for NASA but also for our Nation in the 
years ahead.
  Mr. GORDON. Mr. Chairman, I reserve the balance of my time.
  Mr. BOEHLERT. Mr. Chairman, I reserve the balance of my time.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I yield myself such time as 
I may consume.
  Mr. Chairman, for years we have been sounding the alarm that the 
Federal Government faces grave danger when it comes to losing highly 
specialized employees. NASA is certainly no exception. In fact, it 
leads the pack. Fifteen percent of NASA's workforce is currently 
eligible to retire. A quarter of the agency will be eligible to retire 
over the next 5 years. Scientists and engineers over 60 outnumber those 
under 30 by nearly three to one. The potential loss of institutional 
knowledge is staggering.
  Why are we in the midst of a human capital crisis? When it comes to 
the kind of very smart, very well-educated, highly specialized people 
who work in our space program? It is largely because we are competing 
directly with the higher-paying private sector firms. But it is also 
because when it comes to the civil service, preserving traditions has 
become a tradition unto itself, and I think it is time to change that 
tradition.
  NASA, as well as the country as a whole, scored a major victory this 
month by safely landing two unmanned rovers on the face of Mars. In 
order to make sure that NASA's successes such as this outweigh its 
failures, we need to provide NASA with as much flexibility as possible 
in order to recruit and retain the best and the brightest that this 
country has to offer for our space program.
  The simple fact is that NASA's personnel policies are dated and are 
holding the agency back. The modernization that this bipartisan 
legislation promises marks a significant step in the right direction 
for NASA, for the government, for science and for taxpayers.
  It has been over a year since NASA Administrator Sean O'Keefe first 
came to Capitol Hill requesting these much-needed personnel 
flexibilities. And while I wish we could have responded sooner, I am 
pleased to be here today to see the legislation finally making its way 
through the process.
  The Committee on Government Reform, which I chair, marked up similar 
legislation last May, and the House Committee on Science marked up the 
legislation last July. I want to thank my friend and colleague, the 
chairman of the Committee on Science, the gentleman from New York (Mr. 
Boehlert) for his tremendous efforts in moving this important 
legislation forward, as well as the subcommittee chairman, the 
gentleman from California (Mr. Rohrabacher), and the ranking minority 
members as well; and I look forward to working with them in the future 
to improve workforce flexibilities available to NASA, as well as to 
other Federal agencies that work to expand the frontier of science.
  One of the difficulties we have in recruiting employees today for 
NASA and other agencies, is that when they go to a job fair and they 
talk to a college recruiter, by the time they go back and go through 
all the rules and regulations in hiring, sometimes background checks, 
it is months before they can put an offer on the table. In the 
meantime, the private sector is up there with hiring bonuses, and they 
are up there with an offer on the table immediately with a job 
guarantee. We cannot compete in that kind of environment.
  I know some of my friends on the Committee on Science on the other 
side of the aisle are concerned about paying bonuses, but this is 
commonplace in the private sector with which we are competing. We are 
talking about some of the brightest people in the world, scientists, 
engineers, literally rocket scientists that we want running our space 
program. We do not want to go second tier with people who are salaried 
and getting bogged down making sometimes one-tenth of what they could 
make in the private sector. It does not work that way.
  So I support this legislation, and I am proud to see it moving 
forward.
  Mr. Chairman, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Chairman, I yield myself such time as I 
may consume.
  Mr. Chairman, in July 2001, the Office of Personnel Management 
updated its report entitled Human Resources Flexibilities and 
Authorities in the Federal Government. The report states that the 
government as a single employer remains sound public policy. 
Consequently, it is important to retain government-wide approaches, 
authorities, entitlements, and requirements in several areas, including 
collective bargaining, merit system principles, due process protections 
related to adverse actions and, among other things, veterans preference 
in employment and retention.
  If, as the report states, government as a single employer is sound 
public policy, the overly broad and hastily developed human resources 
authorities granted to the Department of Homeland Security, the 
Department of Defense, and now the National Aeronautics and Space 
Administration, NASA, are simply not the best sound public policy.
  That is not to say that the current civil service system is not in 
need of reform. It is. Members of Congress, their staffs and 
stakeholders have worked diligently to improve agency-specific reform 
proposals as they speed to enactment, but that is not the way to create 
a fair and equitable civil service. Congress, the Office of Personnel 
Management and Federal employee groups should be concentrating our 
efforts on government-wide reforms rather than agency-by-agency 
requests.
  The bill being considered today is no exception. Although S. 610 has 
been greatly improved since its initial introduction, it serves only to 
further fragment the civil service. I applaud the fact that the bill 
includes a provision that mandates that NASA's Administrator submit a 
plan for OPM approval

[[Page 535]]

detailing the workforce needs of NASA, how NASA intends to use new 
workforce flexibilities to meet those needs, and how the agency has 
utilized existing flexibilities.
  NASA is also required to submit a workforce plan to Congress and 
provide it to all employees at least 60 days before exercising any of 
the flexibilities in the plan. These are very prudent steps for 
Congress to require NASA to take. However, they are steps that should 
have been taken before granting NASA the authority.
  Mr. Chairman, I would urge that the Subcommittee on Civil Service and 
Agency Organization of the Committee on Government Reform exercise its 
authority over NASA and other agencies that have received new human 
capital flexibilities. If nothing else, we can examine how effective 
these agencies are in implementing these new flexibilities before 
granting them to other agencies.
  There has been a great deal of effort to reach bipartisan agreement 
on this legislation. I commend the chairman of the Committee on 
Government Reform, the gentleman from Virginia (Mr. Tom Davis), and the 
ranking member, the gentleman from California (Mr. Waxman), for the 
leadership and civility that they have displayed. So I am going to vote 
in favor of this legislation and further urge that we continue to take 
a good, hard look at the implementation of these flexibilities before 
granting them to other agencies on an individual-by-individual agency 
request. I still believe that agency-wide reform throughout the entire 
government is the best approach.
  Mr. Chairman, I yield back the balance of my time.
  Mr. BOEHLERT. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I want to conclude my remarks by thanking our very 
capable staff of the Committee on Science on our side, David Goldston 
and Chris Shank, and this was the last bill worked on by our deceased 
former counsel, Mr. Barry Berringer, who always gave so much, such 
great value added to the committee with his outstanding work.
  We cannot function in this Congress without the commitment, the 
ability and the hard work of dedicated professional staff, and we are 
blessed in the Committee on Science. But we are not the only ones. All 
across Capitol Hill, the people and the background are there every 
single day working hard to prepare us to deal responsibly in shaping 
public policy.
  So I want to conclude my remarks by thanking the staff for their 
outstanding work.
  Mr. Chairman, I submit for the Record letters to and from myself and 
the Chairman of the Committee on Government Reform regarding the 
appointment of conferees on this bill.

                                         House of Representatives,


                               Committee on Government Reform,

                                 Washington, DC, January 27, 2004.
     Hon. Sherwood L. Boehlert,
     Chairman, Committee on Science, House of Representatives, 
         Washington, DC.
       Dear Mr. Chairman: Thank you for working with me in 
     developing the H.R. 1085, the NASA Flexibility Act of 2003. 
     As you know, the Committee on Government Reform reported the 
     bill, H.R. 1836, the Civil Service and National Security 
     Personnel Improvement Act. Included in that Act was Title 
     III, Subtitle B, National Aeronautics and Space 
     Administration. The House is scheduled to consider S. 610, 
     the Senate companion to H.R. 1085 tomorrow. Although S. 610 
     has been held at the Speaker's desk it is my understanding 
     that the bill would have been referred to the Committees on 
     Science and on Government Reform.
       I support moving this important legislation forward 
     expeditiously; however, I do so only with the understanding 
     that this procedural route should not be construed to 
     prejudice the Committee on Government Reform's or the 
     Committee on Science's jurisdictional interest and 
     prerogatives on this bill or any other similar legislation.
       I respectfully request your support for the appointment of 
     outside conferees from the Committee on Government Reform 
     should this bill or a similar bill be considered in a 
     conference with the Senate. Finally, I would ask that you 
     include a copy of our exchange of letters on this matter in 
     the Congressional Record during floor consideration of S. 
     610. Thank you for your assistance and cooperation in this 
     matter.
           Sincerely,
                                                        Tom Davis,
     Chairman.
                                  ____

                                         House of Representatives,


                                         Committee on Science,

                                 Washington, DC, January 27, 2004.
     Hon. Tom Davis,
     Chairman, Committee on Government Reform, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: Thank you for your letter concerning 
     H.R. 1085, the NASA Flexibility Act of 2003, and S. 610, the 
     Senate's companion bill. As you know, the House will consider 
     S. 610 on the floor tomorrow.
       It is also my understanding that had S. 610 not been held 
     at the Speaker's desk, it would have been referred to the 
     Committee on Science and to the Committee on Government 
     Reform. I agree that by agreeing to have the bill held at the 
     desk, the Committee on Science and the Committee on 
     Government Reform have not adversely affected their 
     respective jurisdictional interests or their prerogatives in 
     this bill or similar legislation.
       I would be happy to support your request for conferees on 
     this bill or similar legislation should a conference with the 
     Senate become necessary.
       Thank you for your consideration and attention to this 
     bill.
           Sincerely,
                                                Sherwood Boehlert,
                                                         Chairman.

  Mr. Chairman, I yield back the balance of my time.

                              {time}  1130

  Mr. GORDON. Mr. Chairman, I yield myself such time as I may consume.
  In conclusion, I want to thank the gentleman from Virginia (Mr. Tom 
Davis) and the gentleman from New York (Mr. Boehlert) for bringing 
forth a better bill, and also thank the gentleman from Texas (Mr. 
Lampson) for improving the bill and for the gentleman's accession as 
the ranking member on the Subcommittee on Space and Aeronautics and let 
the gentleman know he could not possibly find a better partner than the 
gentleman from California (Mr. Rohrabacher) as the chairman of their 
subcommittee.
  Again, I thank the gentleman from New York (Chairman Boehlert) for 
helping us make this a better bill. I want to say to our Members that I 
intend to support this bill and recommend that they support it in final 
passage.
  Mrs. JO ANN DAVIS of Virginia. Mr. Chairman, I am pleased to be here 
today to speak in favor of S. 610, the NASA Flexibility Act of 2003.
  Since its creation in 1958, NASA has been the foremost symbol of 
American ingenuity, daring and accomplishment. Its talented employees 
have helped us explore new worlds and peek into distant galaxies. Time 
and again, NASA has shaped our Nation's future.
  But in one respect, NASA is still stuck in the past. This bill will 
help us transform NASA's personnel system into a modern, flexible and 
responsive system, one that is absolutely necessary for a 21st Century 
workforce.
  This legislation gives NASA powerful tools to win the recruitment and 
retention battles it faces everyday. Just last year, NASA Administrator 
Sean O'Keefe described the agency's personnel situation as 
``alarming,'' given that 1 out of every 4 of the agency's scientists 
and engineers is eligible to retire, and that those above the age of 60 
outnumber those below the age of 30 by a nearly 3-to-1 ratio. NASA 
faces a potential ``brain drain''--and that is not a scenario we can 
allow to happen.
  By authorizing higher pay for certain exceptional employees, offering 
more vacation time to mid-career hires, and allowing for recruitment, 
retention and relocation bonuses, S. 610 addresses these concerns.
  And this legislation has been created to address some of the concerns 
of employees, too. In exchange for these flexibilities, NASA is 
required to submit a written plan to the Office of Personnel Management 
stating the workforce needs of NASA, how NASA will use increased 
workforce flexibilities to meet those needs, and how NASA has used 
existing flexibilities. A workforce plan must also be submitted to 
Congress and to all employees at least 60 days before exercising any 
part of the plan. Prior to submitting a plan to Congress, however, a 
proposed plan must be provided to employee representatives and NASA is 
required to give their recommendations ``full and fair consideration.''
  These are provisions that I had pushed for in the House version of 
this bill, H.R. 1085, and I am pleased that they will be included in 
the final version that is poised to become law.
  Mr. Chairman, I urge passage of S. 610.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, it is with mild apprehension 
that I rise today in support of S. 610, the NASA Flexibility Act. My 
vote today is not really an endorsement of this bill. Instead it is a 
vote of

[[Page 536]]

confidence for the people at NASA, and a demonstration of my heart-felt 
desire to work together in a bipartisan fashion here in Congress, with 
the Administrator at NASA, and with the administration, to help NASA 
achieve the greatness of which it is capable.
  NASA is at a turning point. The past two decades have seen drastic 
cuts in the NASA budgets and the NASA workforce. Its mission has been 
unambitious, and its programs have seemed to drift. We have lost two 
space shuttles and 14 brave astronauts. But today, there is 
unprecedented hope for the future. Two rovers on the surface of Mars 
are beaming back data that could help us unlock some of the greatest 
mysteries of our universe. They have captured the imaginations of the 
American people, with over 30 million people logging on to the NASA 
website in the last weeks. The President has launched a dialog that 
could lead to a bold new mission for NASA, to go back to the Moon, then 
on to Mars, and beyond. The excitement in my district of Houston is 
palpable.
  If we start this new phase on the right foot, there is nothing that 
NASA, driven by the American spirit, cannot accomplish. But if we 
stumble, we could set back human space exploration for generations. 
That would be tragic for our scientists, our society, and our economy.
  When the Workforce Flexibility bill first came to us in the Science 
Committee, I was absolutely against it. It gave too much latitude to 
the Administrator to tinker with the loyal NASA workforce through huge 
demonstration projects. It allowed big bonuses for political 
appointees--and I don't hear anyone arguing that there is a critical 
need for more political appointees in this town. After some intense 
bipartisan work in the Science Committee, and with help from the 
unions, and with some strong leadership from Senator Hollings, the most 
egregious parts of the bill have been removed.
  But the most important reason I was against the bill before us in 
Fall, is that I felt it was irresponsible to give the Administrator of 
NASA the flexibility to move faster--when we had no idea where he was 
going. We were hearing that they needed the ability to bring in key 
personnel, but they couldn't tell us what project those people were 
going to work on, because NASA was severely lacking in vision and 
mission. This is why I and many other of our colleagues supported 
Congressman Nick Lampson's Space Exploration Act of 2003, which would 
have set a series of bold, yet attainable goals for NASA. I am pleased 
that the President has heard our call, and has put forth his plan for 
the future of the manned-space mission of NASA.
  We are far from finalizing that plan, but there has been a surge of 
momentum and enthusiasm, and I hope we capitalize on it. The bold new 
mission will take creativity at every level of NASA. That is why I am 
lending my voice in support of this workforce bill. But I am still 
concerned. I hope this and future NASA administrators are judicious in 
their use of this new ``flexibility.'' My district is a stone's-throw 
from Johnson Space Center, and I consider the people there my friends 
and neighbors. They come to Houston out of a noble sense of purpose, to 
do something extraordinary and be a part of something unlike anything 
else in the history of this planet.
  Sure, bonuses and travel expenses like those authorized in this bill 
can make it a bit more comfortable for those in government jobs--but 
that is not what will keep the best people at NASA. They want a sense 
of purpose--and that will come from a bold mission. They want a sense 
of community--and that will come from stability and fairness in the 
workplace. They want to feel that they are making a difference--and 
that will come from changing the culture at NASA so that bright 
thoughtful people are heard and respected. And they want to feel safe--
and that will come from making safety a priority and not an 
afterthought as it has been in the past.
  To make NASA all it should be, we will all need to work together. I 
will do my part, and by supporting this bill I am giving the 
Administrator the tools he says he needs to do his. But, I will be 
following closely as the future of NASA unfolds. Today we are hearing a 
new level of interest and commitment from the administration. However, 
as we have seen with education, and homeland security, and HIV/AIDS--
often the words are not backed up by adequate funding and political 
capital. I hope that will not be the case with NASA.
  This act creates scholarship for work programs that will help get the 
best young people to choose NASA for their careers. I hope various 
retention bonuses will enable the Administrator to encourage top people 
to stay through the transition that will occur over the next decade as 
we move from the space shuttle and the space station, into the work 
beyond. For example, we must harvest the talents of the fabulous space 
shuttle team in Houston, and not risk letting them run to private 
industry while Congress or the administration sits on its hands.
  It should be an exciting year for NASA, and space enthusiasts around 
the world. I hope this act will help drive NASA to greatness. I support 
it and urge my colleagues to do the same.
  Mr. GORDON. Mr. Chairman, I yield back the balance of my time.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I yield back the balance of 
my time.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the bill is considered read for amendment under 
the 5-minute rule.
  The text of S. 610 is as follows:

                                 S. 610

       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 ``NASA Flexibility Act of 
     2003''.

     SEC. 2. COMPENSATION FOR CERTAIN EXCEPTED PERSONNEL.

       (a) In General.--Subparagraph (A) of section 203(c)(2) of 
     the National Aeronautics and Space Act of 1958 (42 U.S.C. 
     2473(c)(2)(A)) is amended by striking ``the highest rate of 
     grade 18 of the General Schedule of the Classification Act of 
     1949, as amended,'' and inserting ``the rate of basic pay 
     payable for level III of the Executive Schedule,''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the first day of the first pay period 
     beginning on or after the date of enactment of this Act.

     SEC. 3. WORKFORCE AUTHORITIES.

       (a) In General.--Subpart I of part III of title 5, United 
     States Code, is amended by inserting after chapter 97, as 
     added by section 841(a)(2) of the Homeland Security Act of 
     2002 (Public Law 107-296; 116 Stat. 2229), the following:

      ``CHAPTER 98--NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

``Sec.
``9801. Definitions.
``9802. Planning, notification, and reporting requirements.
``9803. Restrictions.
``9804. Recruitment, redesignation, and relocation bonuses.
``9805. Retention bonuses.
``9806. Term appointments.
``9807. Pay authority for critical positions.
``9808. Assignments of intergovernmental personnel.
``9809. Science and technology scholarship program.
``9810. Distinguished scholar appointment authority.
``9811. Travel and transportation expenses of certain new appointees
``9812. Annual leave enhancements.
``9813. Limited appointments to Senior Executive Service positions.
``9814. Qualifications pay.
``9815. Reporting requirement.

     ``Sec. 9801. Definitions

       ``For purposes of this chapter--
       ``(1) the term `Administration' means the National 
     Aeronautics and Space Administration;
       ``(2) the term `Administrator' means the Administrator of 
     the National Aeronautics and Space Administration;
       ``(3) the term `critical need' means a specific and 
     important safety, management, engineering, science, research, 
     or operations requirement of the Administration's mission 
     that the Administration is unable to fulfill because the 
     Administration lacks the appropriate employees because--
       ``(A) of the inability to fill positions; or
       ``(B) employees do not possess the requisite skills;
       ``(4) the term `employee' means an individual employed in 
     or under the Administration;
       ``(5) the term `workforce plan' means the plan required 
     under section 9802(a);
       ``(6) the term `appropriate committees of Congress' means--
       ``(A) the Committees on Government Reform, Science, and 
     Appropriations of the House of Representatives; and
       ``(B) the Committees on Governmental Affairs, Commerce, 
     Science, and Transportation, and Appropriations of the 
     Senate;
       ``(7) the term `redesignation bonus' means a bonus under 
     section 9804 paid to an individual described in subsection 
     (a)(2) thereof;
       ``(8) the term `supervisor' has the meaning given such term 
     by section 7103(a)(10); and
       ``(9) the term `management official' has the meaning given 
     such term by section 7103(a)(11).

     ``Sec. 9802. Planning, notification, and reporting 
       requirements

       ``(a) Not later than 90 days before exercising any of the 
     workforce authorities made available under this chapter, the 
     Administrator shall submit a written plan to the appropriate 
     committees of Congress. Such plan shall be approved by the 
     Office of Personnel Management.
       ``(b) A workforce plan shall include a description of--

[[Page 537]]

       ``(1) each critical need of the Administration and the 
     criteria used in the identification of that need;
       ``(2)(A) the functions, approximate number, and classes or 
     other categories of positions or employees that--
       ``(i) address critical needs; and
       ``(ii) would be eligible for each authority proposed to be 
     exercised under this chapter; and
       ``(B) how the exercise of those authorities with respect to 
     the eligible positions or employees involved would address 
     each critical need identified under paragraph (1);
       ``(3)(A) any critical need identified under paragraph (1) 
     which would not be addressed by the authorities made 
     available under this chapter; and
       ``(B) the reasons why those needs would not be so 
     addressed;
       ``(4) the specific criteria to be used in determining which 
     individuals may receive the benefits described under sections 
     9804 and 9805 (including the criteria for granting bonuses in 
     the absence of a critical need), and how the level of those 
     benefits will be determined;
       ``(5) the safeguards or other measures that will be applied 
     to ensure that this chapter is carried out in a manner 
     consistent with merit system principles;
       ``(6) the means by which employees will be afforded the 
     notification required under subsections (c) and (d)(1)(B);
       ``(7) the methods that will be used to determine if the 
     authorities exercised under this chapter have successfully 
     addressed each critical need identified under paragraph (1);
       ``(8)(A) the recruitment methods used by the Administration 
     before the enactment of this chapter to recruit highly 
     qualified individuals; and
       ``(B) the changes the Administration will implement after 
     the enactment of this chapter in order to improve its 
     recruitment of highly qualified individuals, including how it 
     intends to use--
       ``(i) nongovernmental recruitment or placement agencies; 
     and
       ``(ii) Internet technologies; and
       ``(9) any workforce-related reforms required to resolve the 
     findings and recommendations of the Columbia Accident 
     Investigation Board, the extent to which those 
     recommendations were accepted, and, if necessary, the reasons 
     why any of those recommendations were not accepted.
       ``(c) Not later than 60 days before first exercising any of 
     the workforce authorities made available under this chapter, 
     the Administrator shall provide to all employees the 
     workforce plan and any additional information which the 
     Administrator considers appropriate.
       ``(d)(1)(A) The Administrator may from time to time modify 
     the workforce plan. Any modification to the workforce plan 
     shall be submitted to the Office of Personnel Management for 
     approval by the Office before the modification may be 
     implemented.
       ``(B) Not later than 60 days before implementing any such 
     modifications, the Administrator shall provide an 
     appropriately modified plan to all employees of the 
     Administration and to the appropriate committees of Congress.
       ``(2) Any reference in this chapter or any other provision 
     of law to the workforce plan shall be considered to include 
     any modification made in accordance with this subsection.
       ``(e) Before submitting any written plan under subsection 
     (a) (or modification under subsection (d)) to the Office of 
     Personnel Management, the Administrator shall--
       ``(1) provide to each employee representative representing 
     any employees who might be affected by such plan (or 
     modification) a copy of the proposed plan (or modification);
       ``(2) give each representative 30 calendar days (unless 
     extraordinary circumstances require earlier action) to review 
     and make recommendations with respect to the proposed plan 
     (or modification); and
       ``(3) give any recommendations received from any such 
     representatives under paragraph (2) full and fair 
     consideration in deciding whether or how to proceed with 
     respect to the proposed plan (or modification).
       ``(f) None of the workforce authorities made available 
     under this chapter may be exercised in a manner inconsistent 
     with the workforce plan.
       ``(g) Whenever the Administration submits its performance 
     plan under section 1115 of title 31 to the Office of 
     Management and Budget for any year, the Administration shall 
     at the same time submit a copy of such plan to the 
     appropriate committees of Congress.
       ``(h) Not later than 6 years after the date of enactment of 
     this chapter, the Administrator shall submit to the 
     appropriate committees of Congress an evaluation and analysis 
     of the actions taken by the Administration under this 
     chapter, including--
       ``(1) an evaluation, using the methods described in 
     subsection (b)(7), of whether the authorities exercised under 
     this chapter successfully addressed each critical need 
     identified under subsection (b)(1);
       ``(2) to the extent that they did not, an explanation of 
     the reasons why any critical need (apart from the ones under 
     subsection (b)(3)) was not successfully addressed; and
       ``(3) recommendations for how the Administration could 
     address any remaining critical need and could prevent those 
     that have been addressed from recurring.
       ``(i) The budget request for the Administration for the 
     first fiscal year beginning after the date of enactment of 
     this chapter and for each fiscal year thereafter shall 
     include a statement of the total amount of appropriations 
     requested for such fiscal year to carry out this chapter.

     ``Sec. 9803. Restrictions

       ``(a) None of the workforce authorities made available 
     under this chapter may be exercised with respect to any 
     officer who is appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(b) Unless specifically stated otherwise, all workforce 
     authorities made available under this chapter shall be 
     subject to section 5307.
       ``(c)(1) None of the workforce authorities made available 
     under section 9804, 9805, 9806, 9807, 9809, 9812, 9813, 9814, 
     or 9815 may be exercised with respect to a political 
     appointee.
       ``(2) For purposes of this subsection, the term `political 
     appointee' means an employee who holds--
       ``(A) a position which has been excepted from the 
     competitive service by reason of its confidential, policy-
     determining, policy-making, or policy-advocating character; 
     or
       ``(B) a position in the Senior Executive Service as a 
     noncareer appointee (as such term is defined in section 
     3132(a)).

     ``Sec. 9804. Recruitment, redesignation, and relocation 
       bonuses

       ``(a) Notwithstanding section 5753, the Administrator may 
     pay a bonus to an individual, in accordance with the 
     workforce plan and subject to the limitations in this 
     section, if--
       ``(1) the Administrator determines that the Administration 
     would be likely, in the absence of a bonus, to encounter 
     difficulty in filling a position; and
       ``(2) the individual--
       ``(A) is newly appointed as an employee of the Federal 
     Government;
       ``(B) is currently employed by the Federal Government and 
     is newly appointed to another position in the same geographic 
     area; or
       ``(C) is currently employed by the Federal Government and 
     is required to relocate to a different geographic area to 
     accept a position with the Administration.
       ``(b) If the position is described as addressing a critical 
     need in the workforce plan under section 9802(b)(2)(A), the 
     amount of a bonus may not exceed--
       ``(1) 50 percent of the employee's annual rate of basic pay 
     (including comparability payments under sections 5304 and 
     5304a) as of the beginning of the service period multiplied 
     by the service period specified under subsection 
     (d)(1)(B)(i); or
       ``(2) 100 percent of the employee's annual rate of basic 
     pay (including comparability payments under sections 5304 and 
     5304a) as of the beginning of the service period.
       ``(c) If the position is not described as addressing a 
     critical need in the workforce plan under section 
     9802(b)(2)(A), the amount of a bonus may not exceed 25 
     percent of the employee's annual rate of basic pay (excluding 
     comparability payments under sections 5304 and 5304a) as of 
     the beginning of the service period.
       ``(d)(1)(A) Payment of a bonus under this section shall be 
     contingent upon the individual entering into a service 
     agreement with the Administration.
       ``(B) At a minimum, the service agreement shall include--
       ``(i) the required service period;
       ``(ii) the method of payment, including a payment schedule, 
     which may include a lump-sum payment, installment payments, 
     or a combination thereof;
       ``(iii) the amount of the bonus and the basis for 
     calculating that amount; and
       ``(iv) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed, and the effect of the termination.
       ``(2) For purposes of determinations under subsections 
     (b)(1) and (c)(1), the employee's service period shall be 
     expressed as the number equal to the full years and twelfth 
     parts thereof, rounding the fractional part of a month to the 
     nearest twelfth part of a year. The service period may not be 
     less than 6 months and may not exceed 4 years.
       ``(3) A bonus under this section may not be considered to 
     be part of the basic pay of an employee.
       ``(e) Before paying a bonus under this section, the 
     Administration shall establish a plan for paying recruitment, 
     redesignation, and relocation bonuses, subject to approval by 
     the Office of Personnel Management.
       ``(f) No more than 25 percent of the total amount in 
     bonuses awarded under subsection (a) in any year may be 
     awarded to supervisors or management officials.

     ``Sec. 9805. Retention bonuses

       ``(a) Notwithstanding section 5754, the Administrator may 
     pay a bonus to an employee, in accordance with the workforce 
     plan and subject to the limitations in this section, if the 
     Administrator determines that--
       ``(1) the unusually high or unique qualifications of the 
     employee or a special need of the Administration for the 
     employee's services makes it essential to retain the 
     employee; and

[[Page 538]]

       ``(2) the employee would be likely to leave in the absence 
     of a retention bonus.
       ``(b) If the position is described as addressing a critical 
     need in the workforce plan under section 9802(b)(2)(A), the 
     amount of a bonus may not exceed 50 percent of the employee's 
     annual rate of basic pay (including comparability payments 
     under sections 5304 and 5304a).
       ``(c) If the position is not described as addressing a 
     critical need in the workforce plan under section 
     9802(b)(2)(A), the amount of a bonus may not exceed 25 
     percent of the employee's annual rate of basic pay (excluding 
     comparability payments under sections 5304 and 5304a).
       ``(d)(1)(A) Payment of a bonus under this section shall be 
     contingent upon the employee entering into a service 
     agreement with the Administration.
       ``(B) At a minimum, the service agreement shall include--
       ``(i) the required service period;
       ``(ii) the method of payment, including a payment schedule, 
     which may include a lump-sum payment, installment payments, 
     or a combination thereof;
       ``(iii) the amount of the bonus and the basis for 
     calculating the amount; and
       ``(iv) the conditions under which the agreement may be 
     terminated before the agreed-upon service period has been 
     completed, and the effect of the termination.
       ``(2) The employee's service period shall be expressed as 
     the number equal to the full years and twelfth parts thereof, 
     rounding the fractional part of a month to the nearest 
     twelfth part of a year. The service period may not be less 
     than 6 months and may not exceed 4 years.
       ``(3) Notwithstanding paragraph (1), a service agreement is 
     not required if the Administration pays a bonus in biweekly 
     installments and sets the installment payment at the full 
     bonus percentage rate established for the employee, with no 
     portion of the bonus deferred. In this case, the 
     Administration shall inform the employee in writing of any 
     decision to change the retention bonus payments. The employee 
     shall continue to accrue entitlement to the retention bonus 
     through the end of the pay period in which such written 
     notice is provided.
       ``(e) A bonus under this section may not be considered to 
     be part of the basic pay of an employee.
       ``(f) An employee is not entitled to a retention bonus 
     under this section during a service period previously 
     established for that employee under section 5753 or under 
     section 9804.
       ``(g) No more than 25 percent of the total amount in 
     bonuses awarded under subsection (a) in any year may be 
     awarded to supervisors or management officials.

     ``Sec. 9806. Term appointments

       ``(a) The Administrator may authorize term appointments 
     within the Administration under subchapter I of chapter 33, 
     for a period of not less than 1 year and not more than 6 
     years.
       ``(b) Notwithstanding chapter 33 or any other provision of 
     law relating to the examination, certification, and 
     appointment of individuals in the competitive service, the 
     Administrator may convert an employee serving under a term 
     appointment to a permanent appointment in the competitive 
     service within the Administration without further competition 
     if--
       ``(1) such individual was appointed under open, competitive 
     examination under subchapter I of chapter 33 to the term 
     position;
       ``(2) the announcement for the term appointment from which 
     the conversion is made stated that there was potential for 
     subsequent conversion to a career-conditional or career 
     appointment;
       ``(3) the employee has completed at least 2 years of 
     current continuous service under a term appointment in the 
     competitive service;
       ``(4) the employee's performance under such term 
     appointment was at least fully successful or equivalent; and
       ``(5) the position to which such employee is being 
     converted under this section is in the same occupational 
     series, is in the same geographic location, and provides no 
     greater promotion potential than the term position for which 
     the competitive examination was conducted.
       ``(c) Notwithstanding chapter 33 or any other provision of 
     law relating to the examination, certification, and 
     appointment of individuals in the competitive service, the 
     Administrator may convert an employee serving under a term 
     appointment to a permanent appointment in the competitive 
     service within the Administration through internal 
     competitive promotion procedures if the conditions under 
     paragraphs (1) through (4) of subsection (b) are met.
       ``(d) An employee converted under this section becomes a 
     career-conditional employee, unless the employee has 
     otherwise completed the service requirements for career 
     tenure.
       ``(e) An employee converted to career or career-conditional 
     employment under this section acquires competitive status 
     upon conversion.

     ``Sec. 9807. Pay authority for critical positions

       ``(a) In this section, the term `position' means--
       ``(1) a position to which chapter 51 applies, including a 
     position in the Senior Executive Service;
       ``(2) a position under the Executive Schedule under 
     sections 5312 through 5317;
       ``(3) a position established under section 3104; or
       ``(4) a senior-level position to which section 5376(a)(1) 
     applies.
       ``(b) Authority under this section--
       ``(1) may be exercised only with respect to a position 
     that--
       ``(A) is described as addressing a critical need in the 
     workforce plan under section 9802(b)(2)(A); and
       ``(B) requires expertise of an extremely high level in a 
     scientific, technical, professional, or administrative field;
       ``(2) may be exercised only to the extent necessary to 
     recruit or retain an individual exceptionally well qualified 
     for the position; and
       ``(3) may be exercised only in retaining employees of the 
     Administration or in appointing individuals who were not 
     employees of another Federal agency as defined under section 
     5102(a)(1).
       ``(c)(1) Notwithstanding section 5377, the Administrator 
     may fix the rate of basic pay for a position in the 
     Administration in accordance with this section. The 
     Administrator may not delegate this authority.
       ``(2) The number of positions with pay fixed under this 
     section may not exceed 10 at any time.
       ``(d)(1) The rate of basic pay fixed under this section may 
     not be less than the rate of basic pay (including any 
     comparability payments) which would otherwise be payable for 
     the position involved if this section had never been enacted.
       ``(2) The annual rate of basic pay fixed under this section 
     may not exceed the per annum rate of salary payable under 
     section 104 of title 3.
       ``(3) Notwithstanding any provision of section 5307, in the 
     case of an employee who, during any calendar year, is 
     receiving pay at a rate fixed under this section, no 
     allowance, differential, bonus, award, or similar cash 
     payment may be paid to such employee if, or to the extent 
     that, when added to basic pay paid or payable to such 
     employee (for service performed in such calendar year as an 
     employee in the executive branch or as an employee outside 
     the executive branch to whom chapter 51 applies), such 
     payment would cause the total to exceed the per annum rate of 
     salary which, as of the end of such calendar year, is payable 
     under section 104 of title 3.

     ``Sec. 9808. Assignments of intergovernmental personnel

       ``For purposes of applying the third sentence of section 
     3372(a) (relating to the authority of the head of a Federal 
     agency to extend the period of an employee's assignment to or 
     from a State or local government, institution of higher 
     education, or other organization), the Administrator may, 
     with the concurrence of the employee and the government or 
     organization concerned, take any action which would be 
     allowable if such sentence had been amended by striking `two' 
     and inserting `four'.

     ``Sec. 9809. Science and technology scholarship program

       ``(a)(1) The Administrator shall establish a National 
     Aeronautics and Space Administration Science and Technology 
     Scholarship Program to award scholarships to individuals that 
     is designed to recruit and prepare students for careers in 
     the Administration.
       ``(2) Individuals shall be selected to receive scholarships 
     under this section through a competitive process primarily on 
     the basis of academic merit, with consideration given to 
     financial need and the goal of promoting the participation of 
     individuals identified in section 33 or 34 of the Science and 
     Engineering Equal Opportunities Act.
       ``(3) To carry out the Program the Administrator shall 
     enter into contractual agreements with individuals selected 
     under paragraph (2) under which the individuals agree to 
     serve as full-time employees of the Administration, for the 
     period described in subsection (f)(1), in positions needed by 
     the Administration and for which the individuals are 
     qualified, in exchange for receiving a scholarship.
       ``(b) In order to be eligible to participate in the 
     Program, an individual must--
       ``(1) be enrolled or accepted for enrollment as a full-time 
     student at an institution of higher education in an academic 
     field or discipline described in the list made available 
     under subsection (d);
       ``(2) be a United States citizen or permanent resident; and
       ``(3) at the time of the initial scholarship award, not be 
     an employee (as defined in section 2105).
       ``(c) An individual seeking a scholarship under this 
     section shall submit an application to the Administrator at 
     such time, in such manner, and containing such information, 
     agreements, or assurances as the Administrator may require.
       ``(d) The Administrator shall make publicly available a 
     list of academic programs and fields of study for which 
     scholarships under the Program may be utilized and shall 
     update the list as necessary.
       ``(e)(1) The Administrator may provide a scholarship under 
     the Program for an academic year if the individual applying 
     for the scholarship has submitted to the Administrator, as 
     part of the application required

[[Page 539]]

     under subsection (c), a proposed academic program leading to 
     a degree in a program or field of study on the list made 
     available under subsection (d).
       ``(2) An individual may not receive a scholarship under 
     this section for more than 4 academic years, unless the 
     Administrator grants a waiver.
       ``(3) The dollar amount of a scholarship under this section 
     for an academic year shall be determined under regulations 
     issued by the Administrator, but shall in no case exceed the 
     cost of attendance.
       ``(4) A scholarship provided under this section may be 
     expended for tuition, fees, and other authorized expenses as 
     established by the Administrator by regulation.
       ``(5) The Administrator may enter into a contractual 
     agreement with an institution of higher education under which 
     the amounts provided for a scholarship under this section for 
     tuition, fees, and other authorized expenses are paid 
     directly to the institution with respect to which the 
     scholarship is provided.
       ``(f)(1) The period of service for which an individual 
     shall be obligated to serve as an employee of the 
     Administration is, except as provided in subsection (h)(2), 
     24 months for each academic year for which a scholarship 
     under this section is provided. Under no circumstances shall 
     the total period of obligated service be more than 4 years.
       ``(2)(A) Except as provided in subparagraph (B), obligated 
     service under paragraph (1) shall begin not later than 60 
     days after the individual obtains the educational degree for 
     which the scholarship was provided.
       ``(B) The Administrator may defer the obligation of an 
     individual to provide a period of service under paragraph (1) 
     if the Administrator determines that such a deferral is 
     appropriate. The Administrator shall prescribe the terms and 
     conditions under which a service obligation may be deferred 
     through regulation.
       ``(g)(1) Scholarship recipients who fail to maintain a high 
     level of academic standing, as defined by the Administrator 
     by regulation, who are dismissed from their educational 
     institutions for disciplinary reasons, or who voluntarily 
     terminate academic training before graduation from the 
     educational program for which the scholarship was awarded, 
     shall be in breach of their contractual agreement and, in 
     lieu of any service obligation arising under such agreement, 
     shall be liable to the United States for repayment within 1 
     year after the date of default of all scholarship funds paid 
     to them and to the institution of higher education on their 
     behalf under the agreement, except as provided in subsection 
     (h)(2). The repayment period may be extended by the 
     Administrator when determined to be necessary, as established 
     by regulation.
       ``(2) Scholarship recipients who, for any reason, fail to 
     begin or complete their service obligation after completion 
     of academic training, or fail to comply with the terms and 
     conditions of deferment established by the Administrator 
     pursuant to subsection (f)(2)(B), shall be in breach of their 
     contractual agreement. When recipients breach their 
     agreements for the reasons stated in the preceding sentence, 
     the recipient shall be liable to the United States for an 
     amount equal to--
       ``(A) the total amount of scholarships received by such 
     individual under this section; plus
       ``(B) the interest on the amounts of such awards which 
     would be payable if at the time the awards were received they 
     were loans bearing interest at the maximum legal prevailing 
     rate, as determined by the Treasurer of the United States,
     multiplied by 3.
       ``(h)(1) Any obligation of an individual incurred under the 
     Program (or a contractual agreement thereunder) for service 
     or payment shall be canceled upon the death of the 
     individual.
       ``(2) The Administrator shall by regulation provide for the 
     partial or total waiver or suspension of any obligation of 
     service or payment incurred by an individual under the 
     Program (or a contractual agreement thereunder) whenever 
     compliance by the individual is impossible or would involve 
     extreme hardship to the individual, or if enforcement of such 
     obligation with respect to the individual would be contrary 
     to the best interests of the Government.
       ``(i) For purposes of this section--
       ``(1) the term `cost of attendance' has the meaning given 
     that term in section 472 of the Higher Education Act of 1965;
       ``(2) the term `institution of higher education' has the 
     meaning given that term in section 101(a) of the Higher 
     Education Act of 1965; and
       ``(3) the term `Program' means the National Aeronautics and 
     Space Administration Science and Technology Scholarship 
     Program established under this section.
       ``(j)(1) There is authorized to be appropriated to the 
     Administration for the Program $10,000,000 for each fiscal 
     year.
       ``(2) Amounts appropriated under this section shall remain 
     available for 2 fiscal years.

     ``Sec. 9810. Distinguished scholar appointment authority

       ``(a) In this section--
       ``(1) the term `professional position' means a position 
     that is classified to an occupational series identified by 
     the Office of Personnel Management as a position that--
       ``(A) requires education and training in the principles, 
     concepts, and theories of the occupation that typically can 
     be gained only through completion of a specified curriculum 
     at a recognized college or university; and
       ``(B) is covered by the Group Coverage Qualification 
     Standard for Professional and Scientific Positions; and
       ``(2) the term `research position' means a position in a 
     professional series that primarily involves scientific 
     inquiry or investigation, or research-type exploratory 
     development of a creative or scientific nature, where the 
     knowledge required to perform the work successfully is 
     acquired typically and primarily through graduate study.
       ``(b) The Administration may appoint, without regard to the 
     provisions of section 3304(b) and sections 3309 through 3318, 
     but subject to subsection (c), candidates directly to General 
     Schedule professional, competitive service positions in the 
     Administration for which public notice has been given (in 
     accordance with regulations of the Office of Personnel 
     Management), if--
       ``(1) with respect to a position at the GS-7 level, the 
     individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant baccalaureate degrees, a baccalaureate degree in a 
     field of study for which possession of that degree in 
     conjunction with academic achievements meets the 
     qualification standards as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.0 or 
     higher on a 4.0 scale and a grade point average of 3.5 or 
     higher for courses in the field of study required to qualify 
     for the position;
       ``(2) with respect to a position at the GS-9 level, the 
     individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant graduate degrees, a graduate degree in a field of study 
     for which possession of that degree meets the qualification 
     standards at this grade level as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.5 or 
     higher on a 4.0 scale in graduate coursework in the field of 
     study required for the position;
       ``(3) with respect to a position at the GS-11 level, the 
     individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant graduate degrees, a graduate degree in a field of study 
     for which possession of that degree meets the qualification 
     standards at this grade level as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.5 or 
     higher on a 4.0 scale in graduate coursework in the field of 
     study required for the position; or
       ``(4) with respect to a research position at the GS-12 
     level, the individual--
       ``(A) received, within 2 years before the effective date of 
     the appointment, from an accredited institution authorized to 
     grant graduate degrees, a graduate degree in a field of study 
     for which possession of that degree meets the qualification 
     standards at this grade level as prescribed by the Office of 
     Personnel Management for the position to which the individual 
     is being appointed; and
       ``(B) achieved a cumulative grade point average of 3.5 or 
     higher on a 4.0 scale in graduate coursework in the field of 
     study required for the position.
       ``(c) In making any selections under this section, 
     preference eligibles who meet the criteria for distinguished 
     scholar appointments shall be considered ahead of 
     nonpreference eligibles.
       ``(d) An appointment made under this authority shall be a 
     career-conditional appointment in the competitive civil 
     service.

     ``Sec. 9811. Travel and transportation expenses of certain 
       new appointees

       ``(a) In this section, the term `new appointee' means--
       ``(1) a person newly appointed or reinstated to Federal 
     service to the Administration to--
       ``(A) a career or career-conditional appointment or an 
     excepted service appointment to a continuing position;
       ``(B) a term appointment;
       ``(C) an excepted service appointment that provides for 
     noncompetitive conversion to a career or career-conditional 
     appointment;
       ``(D) a career or limited term Senior Executive Service 
     appointment;
       ``(E) an appointment made under section 203(c)(2)(A) of the 
     National Aeronautics and Space Act of 1958 (42 U.S.C. 
     2473(c)(2)(A));
       ``(F) an appointment to a position established under 
     section 3104; or
       ``(G) an appointment to a position established under 
     section 5108; or
       ``(2) a student trainee who, upon completion of academic 
     work, is converted to an appointment in the Administration 
     that is identified in paragraph (1) in accordance with an 
     appropriate authority.
       ``(b) The Administrator may pay the travel, transportation, 
     and relocation expenses of

[[Page 540]]

     a new appointee to the same extent, in the same manner, and 
     subject to the same conditions as the payment of such 
     expenses under sections 5724, 5724a, 5724b, and 5724c to an 
     employee transferred in the interests of the United States 
     Government.

     ``Sec. 9812. Annual leave enhancements

       ``(a) In this section--
       ``(1) the term `newly appointed employee' means an 
     individual who is first appointed--
       ``(A) as an employee of the Federal Government; or
       ``(B) as an employee of the Federal Government following a 
     break in service of at least 90 days after that individual's 
     last period of Federal employment, other than--
       ``(i) employment under the Student Educational Employment 
     Program administered by the Office of Personnel Management;
       ``(ii) employment as a law clerk trainee;
       ``(iii) employment under a short-term temporary appointing 
     authority while a student during periods of vacation from the 
     educational institution at which the student is enrolled;
       ``(iv) employment under a provisional appointment if the 
     new appointment is permanent and immediately follows the 
     provisional appointment; or
       ``(v) employment under a temporary appointment that is 
     neither full-time nor the principal employment of the 
     individual;
       ``(2) the term `period of qualified non-Federal service' 
     means any period of service performed by an individual that--
       ``(A) was performed in a position the duties of which were 
     directly related to the duties of the position in the 
     Administration which that individual will fill as a newly 
     appointed employee; and
       ``(B) except for this section, would not otherwise be 
     service performed by an employee for purposes of section 
     6303; and
       ``(3) the term `directly related to the duties of the 
     position' means duties and responsibilities in the same line 
     of work which require similar qualifications.
       ``(b)(1) For purposes of section 6303, the Administrator 
     may deem a period of qualified non-Federal service performed 
     by a newly appointed employee to be a period of service of 
     equal length performed as an employee.
       ``(2) A decision under paragraph (1) to treat a period of 
     qualified non-Federal service as if it were service performed 
     as an employee shall continue to apply so long as that 
     individual serves in or under the Administration.
       ``(c)(1) Notwithstanding section 6303(a), the annual leave 
     accrual rate for an employee of the Administration in a 
     position paid under section 5376 or 5383, or for an employee 
     in an equivalent category whose rate of basic pay is greater 
     than the rate payable at GS-15, step 10, shall be 1 day for 
     each full biweekly pay period.
       ``(2) The accrual rate established under this subsection 
     shall continue to apply to the employee so long as such 
     employee serves in or under the Administration.

     ``Sec. 9813. Limited appointments to Senior Executive Service 
       positions

       ``(a) In this section--
       ``(1) the term `career reserved position' means a position 
     in the Administration designated under section 3132(b) which 
     may be filled only by--
       ``(A) a career appointee; or
       ``(B) a limited emergency appointee or a limited term 
     appointee--
       ``(i) who, immediately before entering the career reserved 
     position, was serving under a career or career-conditional 
     appointment outside the Senior Executive Service; or
       ``(ii) whose limited emergency or limited term appointment 
     is approved in advance by the Office of Personnel Management;
       ``(2) the term `limited emergency appointee' has the 
     meaning given under section 3132; and
       ``(3) the term `limited term appointee' means an individual 
     appointed to a Senior Executive Service position in the 
     Administration to meet a bona fide temporary need, as 
     determined by the Administrator.
       ``(b) The number of career reserved positions which are 
     filled by an appointee as described under subsection 
     (a)(1)(B) may not exceed 10 percent of the total number of 
     Senior Executive Service positions allocated to the 
     Administration.
       ``(c) Notwithstanding sections 3132 and 3394(b)--
       ``(1) the Administrator may appoint an individual to any 
     Senior Executive Service position in the Administration as a 
     limited term appointee under this section for a period of--
       ``(A) 4 years or less to a position the duties of which 
     will expire at the end of such term; or
       ``(B) 1 year or less to a position the duties of which are 
     continuing; and
       ``(2) in rare circumstances, the Administrator may 
     authorize an extension of a limited appointment under--
       ``(A) paragraph (1)(A) for a period not to exceed 2 years; 
     and
       ``(B) paragraph (1)(B) for a period not to exceed 1 year.
       ``(d) A limited term appointee who has been appointed in 
     the Administration from a career or career-conditional 
     appointment outside the Senior Executive Service shall have 
     reemployment rights in the agency from which appointed, or in 
     another agency, under requirements and conditions established 
     by the Office of Personnel Management. The Office shall have 
     the authority to direct such placement in any agency.
       ``(e) Notwithstanding section 3394(b) and section 3395--
       ``(1) a limited term appointee serving under a term 
     prescribed under this section may be reassigned to another 
     Senior Executive Service position in the Administration, the 
     duties of which will expire at the end of a term of 4 years 
     or less; and
       ``(2) a limited term appointee serving under a term 
     prescribed under this section may be reassigned to another 
     continuing Senior Executive Service position in the 
     Administration, except that the appointee may not serve in 1 
     or more positions in the Administration under such 
     appointment in excess of 1 year, except that in rare 
     circumstances, the Administrator may approve an extension up 
     to an additional 1 year.
       ``(f) A limited term appointee may not serve more than 7 
     consecutive years under any combination of limited 
     appointments.
       ``(g) Notwithstanding section 5384, the Administrator may 
     authorize performance awards to limited term appointees in 
     the Administration in the same amounts and in the same manner 
     as career appointees.

     ``Sec. 9814. Qualifications pay

       ``(a) Notwithstanding section 5334, the Administrator may 
     set the pay of an employee paid under the General Schedule at 
     any step within the pay range for the grade of the position, 
     if such employee--
       ``(1) possesses unusually high or unique qualifications; 
     and
       ``(2) is assigned--
       ``(A) new duties, without a change of position; or
       ``(B) to a new position.
       ``(b) If an exercise of the authority under this section 
     relates to a current employee selected for another position 
     within the Administration, a determination shall be made that 
     the employee's contribution in the new position will exceed 
     that in the former position, before setting pay under this 
     section.
       ``(c) Pay as set under this section is basic pay for such 
     purposes as pay set under section 5334.
       ``(d) If the employee serves for at least 1 year in the 
     position for which the pay determination under this section 
     was made, or a successor position, the pay earned under such 
     position may be used in succeeding actions to set pay under 
     chapter 53.
       ``(e) Before setting any employee's pay under this section, 
     the Administrator shall submit a plan to the Office of 
     Personnel Management and the appropriate committees of 
     Congress, that includes--
       ``(1) criteria for approval of actions to set pay under 
     this section;
       ``(2) the level of approval required to set pay under this 
     section;
       ``(3) all types of actions and positions to be covered;
       ``(4) the relationship between the exercise of authority 
     under this section and the use of other pay incentives; and
       ``(5) a process to evaluate the effectiveness of this 
     section.

     ``Sec. 9815. Reporting requirement

       ``The Administrator shall submit to the appropriate 
     committees of Congress, not later than February 28 of each of 
     the next 6 years beginning after the date of enactment of 
     this chapter, a report that provides the following:
       ``(1) A summary of all bonuses paid under subsections (b) 
     and (c) of section 9804 during the preceding fiscal year. 
     Such summary shall include the total amount of bonuses paid, 
     the total number of bonuses paid, the percentage of the 
     amount of bonuses awarded to supervisors and management 
     officials, and the average percentage used to calculate the 
     total average bonus amount, under each of those subsections.
       ``(2) A summary of all bonuses paid under subsections (b) 
     and (c) of section 9805 during the preceding fiscal year. 
     Such summary shall include the total amount of bonuses paid, 
     the total number of bonuses paid, the percentage of the 
     amount of bonuses awarded to supervisors and management 
     officials, and the average percentage used to calculate the 
     total average bonus amount, under each of those subsections.
       ``(3) The total number of term appointments converted 
     during the preceding fiscal year under section 9806 and, of 
     that total number, the number of conversions that were made 
     to address a critical need described in the workforce plan 
     pursuant to section 9802(b)(2).
       ``(4) The number of positions for which the rate of basic 
     pay was fixed under section 9807 during the preceding fiscal 
     year, the number of positions for which the rate of basic pay 
     under such section was terminated during the preceding fiscal 
     year, and the number of times the rate of basic pay was fixed 
     under such section to address a critical need described in 
     the workforce plan pursuant to section 9802(b)(2).
       ``(5) The number of scholarships awarded under section 9809 
     during the preceding fiscal year and the number of 
     scholarship recipients appointed by the Administration during 
     the preceding fiscal year.
       ``(6) The total number of distinguished scholar 
     appointments made under section 9810 during the preceding 
     fiscal year and, of

[[Page 541]]

     that total number, the number of appointments that were made 
     to address a critical need described in the workforce plan 
     pursuant to section 9802(b)(2).
       ``(7) The average amount paid per appointee, and the 
     largest amount paid to any appointee, under section 9811 
     during the preceding fiscal year for travel and 
     transportation expenses.
       ``(8) The total number of employees who were awarded 
     enhanced annual leave under section 9812 during the preceding 
     fiscal year; of that total number, the number of employees 
     who were serving in a position addressing a critical need 
     described in the workforce plan pursuant to section 
     9802(b)(2); and, for employees in each of those respective 
     groups, the average amount of additional annual leave such 
     employees earned in the preceding fiscal year (over and above 
     what they would have earned absent section 9812).
       ``(9) The total number of appointments made under section 
     9813 during the preceding fiscal year and, of that total 
     number, the number of appointments that were made to address 
     a critical need described in the workforce plan pursuant to 
     section 9802(b)(2).
       ``(10) The number of employees for whom the Administrator 
     set the pay under section 9814 during the preceding fiscal 
     year and the number of times pay was set under such section 
     to address a critical need described in the workforce plan 
     pursuant to section 9802(b)(2).
       ``(11) A summary of all recruitment, relocation, 
     redesignation, and retention bonuses paid under authorities 
     other than this chapter and excluding the authorities 
     provided in sections 5753 and 5754 of this title, during the 
     preceding fiscal year. Such summary shall include, for each 
     type of bonus, the total amount of bonuses paid, the total 
     number of bonuses paid, the percentage of the amount of 
     bonuses awarded to supervisors and management officials, and 
     the average percentage used to calculate the total average 
     bonus amount.''.
       (b) Clerical Amendment.--The table of chapters for part III 
     of title 5, United States Code, is amended by adding at the 
     end the following:

``98. National Aeronautics and Space Administration.........9801''.....

  The CHAIRMAN. During consideration of the bill for amendment, the 
Chair may accord priority in recognition to a Member offering an 
amendment that he has printed in the designated place in the 
Congressional Record. Those amendments will be considered read.
  Are there any amendments to the bill?


                     Amendment Offered by Mr. Flake

  Mr. FLAKE. Mr. Chairman, I offer an amendment.
  The Clerk read as follows:

       Amendment offered by Mr. Flake:
       Page 9, after line 15, insert the following:
       ``(j) The budget requests for the Administration for the 
     second fiscal year beginning after the date of enactment of 
     this chapter and for each fiscal year thereafter shall 
     include a statement that demonstrates that the amount that 
     was requested to carry out this chapter for the previous year 
     was equal to or less than reductions in specific item budget 
     requests made for that same year.
       Page 42, line 2, strike the closing quotation marks and the 
     last period.
       Page 42, after line 2, insert the following:
       ``(12) A statement including the following:
       ``(A) The total amount of appropriations requested for the 
     previous fiscal year to carry out this chapter.
       ``(B) Total outlays expended during the previous fiscal 
     year to carry out this chapter.
       ``(C) A summary of all cost-cutting initiatives implemented 
     and carried out by the Administration during the previous 
     fiscal year to carry out this chapter.
       ``(D) An estimate of the total amount of appropriations to 
     be requested by the Administration for the next fiscal year 
     to carry out this chapter.
       ``(E) A written plan to implement cost-cutting initiatives 
     during the next fiscal year to carry out this chapter. Such 
     plan shall demonstrate that the estimated savings resulting 
     from cost-cutting initiatives to be implemented during the 
     next fiscal year shall be equal to or exceed the estimate of 
     the appropriations request for the next fiscal year to carry 
     out this chapter.''.

  Mr. FLAKE. Mr. Chairman, what the Flake amendment does, and I 
listened to the discussion about the merits of the bill, and I am 
compelled that we do need to do this. This is a good bill. We need to 
give NASA the flexibility they need to hire good people and retain 
them. I am not questioning the merits of the bill at all. I am simply 
saying in this era of big deficits and the spending problem that we 
have in Congress, we ought to ensure that any new authorization is met 
with some spending restraint on the other side and we pay for the money 
we are spending here.
  The Flake amendment would require NASA to submit to Congress a plan 
to offset new spending authorized under this legislation with budget 
reductions elsewhere in the NASA budget. The Flake amendment gives NASA 
the flexibility to choose which budget request to target for reduction. 
We are not telling them how to do it; we are simply saying please match 
this funding with similar reductions.
  The report that NASA must give when they get this money must 
demonstrate that spending requests for provisions authorized under this 
legislation are matched with corresponding budget cuts in other 
specific budget items. Adoption of the Flake amendment gives Congress 
the opportunity to ensure that new spending authorization for must-have 
workplace flexibility is met with spending restraints.
  The CBO estimates that S. 610 will cost $80 million over the 2004-
2008 period. There has been no indication that the new authorized 
spending will be prioritized against the spending accounts. While the 
workforce flexibility afforded to NASA under S. 610 is positive and 
market-oriented, NASA should identify areas of spending that can be 
reduced to offset new costs.
  In November, Congress passed a $400 billion Medicare bill. The Senate 
passed the final omnibus package which totaled over $370 billion in 
spending. That has been signed into law. Two days ago, the CBO 
announced that we have a $477 billion projected deficit. If you include 
draws on the trust fund, that brings it all of the way up to just under 
$700 billion for the coming year. It is time to exercise some fiscal 
restraint. That is what the Flake amendment is designed to do.
  Mr. BOEHLERT. Mr. Chairman, I rise in opposition to the amendment.
  I want to thank the gentleman for his explanation of the amendment. 
The gentleman from Arizona is a very thoughtful Member, and he 
contributes significantly to the deliberations of this body. However, 
let me say a couple of things.
  First of all, this legislation will give flexibility to NASA to work 
within the existing constraints. No new money, we are not coming up 
with a ton of new money or anything else. We are saying they have an 
existing budget for personnel and they have more flexibility with it. 
We are treating them like a business. I think that is very important.
  We have to stem the tide of this brain drain. It is very serious. As 
the gentleman from Virginia (Mr. Tom Davis) pointed out, within 5 
years, 25 percent of the workforce is eligible for retirement. We have 
15 percent eligible for retirement right now. Those over 60 outnumber 
by three to one those under 30. It is a very serious problem. We tried 
to address it in a very responsible way. We did not address like some 
people around here suggest we address problems, give them a blank 
check. We did not do that. We said, no, they have to use their existing 
personnel accounts, no additional money; but we give them flexibility. 
Having said that, let me point out something else. There is a very 
practical reason why we should not accept this amendment and should go 
forward today. We have to get the bill to the President for his 
signature. This is a bill that has passed unanimously in the Senate, a 
bill that is going to pass by substantial margin here in the House, 
hopefully unanimously.
  If we amend it, here is what is going to happen. This is something 
which has been cooking for months now. We just got the amendment today, 
and that is why I appreciate the explanation. I had not seen the 
amendment before. We received a thorough, sound, reasoned explanation; 
but if we pass this amendment, the bill is amended, and it goes back to 
the Senate, and we start all over again back and forth like a ping-pong 
match. We have preconferenced this bill. We worked it out with the 
Senate. They send it back here, we vote ``aye'' today, it goes to the 
President, he signs it, and we get on with the job of giving NASA the 
flexibility it needs.
  I would urge my colleagues to vote against the amendment. I thank the 
gentleman from Arizona (Mr. Flake) for his thoughtful presentation.
  Mr. FLAKE. Mr. Chairman, will the gentleman yield?

[[Page 542]]


  Mr. BOEHLERT. I yield to the gentleman from Arizona.
  Mr. FLAKE. Mr. Chairman, I think it is not unreasonable to ask to go 
back to the Senate. I think Members agree this flexibility is needed. 
It is market-oriented. We need to make sure that NASA retains and hires 
good people.
  Many of my colleagues that I have spoken to in the last day on this 
subject have indicated that they were informed this would not cost 
anything, this would be totally from NASA's own budget. Yet the CBO 
estimates that it will cost $80 billion over the next 4 years. If that 
is the case that it draws only on NASA's budget, if it is the case that 
it does not cost anything, I would submit that there is no problem 
here, that it does not increase spending.
  So all our amendment says is to the degree it does, if it is going to 
increase spending and if we are going to have to authorize new 
spending, it should be matched with spending reductions elsewhere in 
the budget.
  The NASA budget for personnel is $2 billion a year. I do not believe 
it is unreasonable to ask for those kinds of spending reductions.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, will the gentleman yield?
  Mr. BOEHLERT. I yield to the gentleman from Virginia.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, my question is what are the 
CBO costs on this?
  Mr. FLAKE. Mr. Chairman, will the gentleman yield?
  Mr. BOEHLERT. I yield to the gentleman from Arizona.
  Mr. FLAKE. Mr. Chairman, I would say to the gentleman that the 
personnel costs for NASA are $2 billion per year, with a ``B.'' The 
costs that CBO projects for this are $80 million.
  Mr. BOEHLERT. Reclaiming my time, that is within the existing 
personnel allocation. This is not additional money, additional to the 
$2 billion. They are saying if NASA took advantage of all these 
programs, scholarships, retention incentives, moving expenses, the 
types of things that happen every single day in the business community, 
they have to do it with the existing personnel budget, no new money.
  I am like the gentleman from Arizona, perhaps not as fiscally 
conservative, but I am moving in that direction. But the point is this 
does not add money; it allows more flexibility. The estimates that the 
gentleman from Arizona are referring to are estimates on what this 
could cost from the existing budget by using the flexibility that we 
are proposing.
  Mr. TOM DAVIS of Virginia. Mr. Chairman, I move to strike the last 
word.
  Again, the gentleman from Arizona (Mr. Flake) and I have worked 
together on so many battles. I respect what the gentleman is trying to 
do here, but I have to oppose this amendment for several reasons.
  First of all, as the chairman of the Committee on Science noted, if 
we amend this bill today, it goes back to the other body, the black 
hole. We have been waiting a long time to get these personnel changes 
into effect so we can go out and retain part of that workforce that is 
now contemplating retiring, and we can start retaining the best and 
brightest out of our universities. Every day we delay that, we lose 
flexibility to do that.
  The NASA budget is $15.5 billion. The personnel costs are only $2 
billion. If we want to go after NASA's budget or start holding it down, 
the way to control that is by their section 302(b) allocation through 
the appropriations process. It is designed that NASA will eat these 
costs under the current appropriations. They may pay a little more for 
personnel in some areas and may pay less in some areas, but they have 
to do it under the budget that we pass. This appropriates no additional 
money, but it does give them flexibility to pay people at the top, our 
top rocket scientists, top engineers, and top program managers, the 
kind of dollars that will keep them in the program and recruit some of 
our best people into our space program instead of going out into the 
private sector where they can gain a lot more money.
  The costs of failure of not doing this are much greater. A failed 
launch, cost delays, those costs are literally astronomical, if we are 
to do that; and that is what we are trying to eliminate here, the 
downside of not passing this. It is a cost-avoidance issue.
  We control this through the budget process, the section 302(b) 
allocations that we make and budget, and there are no additional monies 
appropriated. These costs will be eaten up within the NASA budget, and 
there is plenty of flexibility to do this. There is a $15.5 billion 
budget, $2 billion for personnel costs, and $80 million can be 
reallocated without any additional cost to American taxpayers; and we 
can retain and recruit some of the quality people that are needed to 
run this space program and keep it going on the right track.
  It is for those reasons that I urge my colleagues to vote against 
this amendment.
  Mr. GORDON. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, we were not given notice of this amendment; but on 
quick and brief review, it seems to be a well-intentioned amendment 
that does not improve the bill. It seeks to solve a problem that does 
not exist, so I want to concur with the gentleman from Virginia (Mr. 
Tom Davis) and the gentleman from New York (Mr. Boehlert) in opposing 
this amendment.
  Mr. FLAKE. Mr. Chairman, I ask unanimous consent to strike the 
requisite number of words.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Arizona?
  There was no objection.
  Mr. FLAKE. Mr. Chairman, I would like to engage in a colloquy with 
the sponsor of the bill. There seems to be some confusion as to whether 
or not this is new authorization for additional spending over and above 
NASA's personnel costs which have already been approved.
  Mr. BOEHLERT. Mr. Chairman, will the gentleman yield?
  Mr. FLAKE. I yield to the gentleman from New York.

                              {time}  1145

  Mr. BOEHLERT. Mr. Chairman, that is a legitimate concern expressed by 
the gentleman. Let me assure him, this is not additional money. This 
says to NASA, using your existing personnel allocation, we are giving 
you flexibility.
  We say constantly, why does government not operate more like 
business, like they do in the real world? We are trying to give NASA 
that opportunity. We are not giving them a blank check. We are not 
giving them the key to the Treasury. We are just saying, existing 
dollars, you have more flexibility to retain the workforce you need to 
do the job we expect you to do.
  Mr. FLAKE. Let me rephrase the question. If NASA takes advantage of 
the new flexibility given them to the fullest extent, will it have an 
additional draw on the Treasury or will it be totally within NASA's 
existing budget?
  Mr. BOEHLERT. My counsel just advises me, it depends on what the 
appropriators do in future appropriations. But the answer is clearly 
``no.'' I know what the gentleman's intent is, his intent as I 
understand it, and that is why I appreciate the thoughtful presentation 
he gave on the floor today. I wish we had had it earlier. As Chairman 
Rohrabacher has said, he takes a back seat to no one in being concerned 
about how we spend money around here.
  So I agree with the basic intention. It is not to have additional 
money spent for NASA on personnel. It is to give them flexibility on 
the existing money we appropriate for them. Who knows, with the 
President's vision outlined, for this new Mars vision, eventually a 
generation or two ahead of us and the Moon in this generation, if the 
Congress decides to be supportive of that, there are going to be budget 
differences; but I want to assure the gentleman that our intent is to 
give NASA the flexibility to use existing dollars, not to add to the 
allocation or appropriation for NASA on personnel or any other thing.
  Mr. FLAKE. So the CBO estimates of the cost are simply within NASA's 
own budget?

[[Page 543]]


  Mr. BOEHLERT. That is right.
  Mr. FLAKE. With that explanation, I will withdraw the amendment 
assuming that we are on the same page.
  Mr. BOEHLERT. I thank the gentleman.
  Mr. FLAKE. Mr. Chairman, I ask unanimous consent to withdraw the 
amendment.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Arizona?
  There was no objection.
  The CHAIRMAN. Are there any other amendments?
  Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
Flake) having assumed the chair, Mr. Isakson, Chairman of the Committee 
of the Whole House on the State of the Union, reported that that 
Committee, having had under consideration the Senate bill (S. 610) to 
amend the provisions of title 5, United States Code, to provide for 
workforce flexibilities and certain Federal personnel provisions 
relating to the National Aeronautics and Space Administration, and for 
other purposes, pursuant to House Resolution 502, he reported the 
Senate bill back to the House.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  The question is on the third reading of the Senate bill.
  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.

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