[House Report 107-772]
[From the U.S. Government Publishing Office]




107th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                107-772
_______________________________________________________________________
 
                     NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2003

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 4546


                                     
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                     


               November 12, 2002.--Ordered to be printed

                              ___________


82-705                U.S. GOVERNMENT PRINTING OFFICE
                              WASHINGTON :  2002 






                            C O N T E N T S

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JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   311
    Summary Statement of Conference Actions......................   311
    Summary Table of Authorizations..............................   312
    Congressional Defense Committees.............................   318
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   318
Title I--Procurement.............................................   318
            Procurement overview.................................   318
            Aircraft Procurement, Army--Overview.................   320
            Missile Procurement, Army--Overview..................   326
            Procurement of Weapons and Tracked Combat Vehicles, 
              Army--Overview.....................................   330
            Procurement of Ammunition, Army--Overview............   335
            Other Procurement, Army--Overview....................   342
            Chemical Agents and Munitions Destruction, Army--
              Overview...........................................   361
            Aircraft Procurement, Navy--Overview.................   363
            MV-22 / CV-22 Osprey aircraft advance procurement....   363
            T-45 training system.................................   363
            Weapons Procurement, Navy--Overview..................   371
            Procurement of Ammunition, Navy and Marine Corps--
              Overview...........................................   376
            Shipbuilding and Conversion, Navy--Overview..........   381
            Other Procurement, Navy--Overview....................   385
            Procurement, Marine Corps--Overview..................   400
            Batteries............................................   400
            Aircraft Procurement, Air Force--Overview............   408
            Missile Procurement, Air Force--Overview.............   418
            Procurement of Ammunition, Air Force--Overview.......   423
            Other Procurement, Air Force--Overview...............   426
            Procurement, Defense-Wide--Overview..................   436
            Advanced SEAL Delivery System........................   436
            Chemical Agents and Munitions Destruction, Defense--
              Overview...........................................   446
    Items of Special Interest....................................   448
            Big Safari...........................................   448
            Navy ship acquisition................................   448
            Cryptographic equipment modernization................   451
            Signals intelligence architecture....................   451
    Legislative Provisions Adopted...............................   452
        Subtitle A--Authorization of Appropriations..............   452
            Authorization of appropriations (secs. 101-107)......   452
            Chemical Agents and Munitions Destruction, Defense 
              (sec. 106).........................................   452
        Subtitle B--Army Programs................................   453
            Pilot program on sales of manufactured articles and 
              services of certain Army industrial facilities 
              without regard to availability from domestic 
              sources (sec. 111).................................   453
            Report on impact of Army aviation modernization plan 
              on the Army National Guard (sec. 112)..............   453
            Family of Medium Tactical Vehicles (sec. 113)........   453
        Subtitle C--Navy Programs................................   454
            Extension of multiyear procurement authority for DDG-
              51 class destroyers (sec. 121).....................   454
            Sense of Congress on scope of conversion program for 
              Ticonderoga-class cruisers (sec. 122)..............   454
            Continuation of contract for operation of Champion-
              class T-5 fuel tanker vessels (sec. 123)...........   454
        Subtitle D--Air Force Programs...........................   455
            Multiyear procurement authority for C-130J aircraft 
              program (sec. 131).................................   455
            Pathfinder programs (sec. 132).......................   455
            Leases for tanker aircraft under multiyear aircraft-
              lease pilot program (sec. 133).....................   456
        Subtitle E--Other Programs...............................   456
            Destruction of existing stockpile of lethal chemical 
              agents and munitions (sec. 141)....................   456
            Report on unmanned aerial vehicle systems (sec. 142).   457
            Global Information Grid system (sec. 143)............   457
    Legislative Provisions Not Adopted...........................   457
            Compass Call program.................................   457
            Integrated bridge system.............................   457
            Marine Corps live fire range improvements............   458
            Mobile emergency broadband system....................   458
            Reallocation of certain funds for Air Force Reserve 
              Command F-16 aircraft procurement..................   458
            Shipbuilding initiative..............................   458
Title II--Research, Development, Test, and Evaluation............   459
            Research, Development, Test, and Evaluation overview.   459
            Department of Defense science and technology funding.   459
            Research, Development, Test and Evaluation, Army--
              Overview...........................................   462
            Research, Development, Test and Evaluation, Navy--
              Overview...........................................   482
            Marine mammal research...............................   505
            Littoral support craft--experimental.................   505
            Research, Development, Test and Evaluation, Air 
              Force--Overview....................................   506
            Multi-sensor command and control constellation.......   526
            Research, Development, Test and Evaluation, Defense-
              Wide--Overview.....................................   526
            Advanced aerospace systems...........................   550
            Arrow................................................   550
            Operational Test and Evaluation, Defense--Overview...   550
    Items of Special Interest....................................   552
            Biometric identification technology..................   552
            Delegation of research, development, test, and 
              evaluation programs and activities.................   552
            Management of the chemical-biological defense program   553
            Wide bandgap semiconductor electronics...............   555
    Legislative Provisions Adopted...............................   557
        Subtitle A--Authorization of Appropriations..............   557
            Authorization of appropriations (sec. 201)...........   557
            Amount for defense science and technology (sec. 202).   557
            Defense health programs (sec. 203)...................   557
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   558
            RAH-66 Comanche aircraft program (sec. 211)..........   558
            Extension of requirements relating to management 
              responsibility for naval mine countermeasures 
              programs (sec. 212)................................   559
            Revised requirements for plan for Manufacturing 
              Technology Program (sec. 213)......................   560
            Advanced SEAL Delivery System (sec. 214).............   560
            Army experimentation program regarding design of the 
              objective force (sec. 215).........................   560
            Program to provide Army with self-propelled Future 
              Combat Systems non-line-of-sight cannon indirect 
              fire capability for the objective force (sec. 216).   560
            Prohibition on transfer of Medical Free Electron 
              Laser program (sec. 217)...........................   562
            Littoral combat ship program (sec. 218)..............   562
        Subtitle C--Ballistic Missile Defense....................   564
            Report requirements relating to ballistic missile 
              defense programs (sec. 221)........................   564
            Responsibility of Missile Defense Agency for 
              research, development, test, and evaluation related 
              to system improvements of programs transferred to 
              military departments (sec. 222)....................   565
            Limitation on obligation of funds for Theater High 
              Altitude Area Defense Program pending submission of 
              required life-cycle cost information (sec. 223)....   565
            Provision of information on flight testing of Ground-
              based Midcourse National Missile Defense system 
              (sec. 224).........................................   566
            References to new name for Ballistic Missile Defense 
              Organization (sec. 225)............................   566
            One-year limitation on use of funds for nuclear armed 
              interceptors (sec. 226)............................   567
        Subtitle D--Improved Management of Department of Defense 
          Test and Evaluation Facilities.........................   567
            Department of Defense Test Resource Management Center 
              (sec. 231).........................................   567
            Objective for institutional funding of test and 
              evaluation facilities (sec. 232)...................   567
            Uniform financial management system for Department of 
              Defense test and evaluation facilities (sec. 233)..   568
            Test and evaluation workforce improvements (sec. 234)   568
            Compliance with testing requirements (sec. 235)......   568
        Subtitle E--Other Matters................................   569
            Pilot programs for revitalizing Department of Defense 
              laboratories (sec. 241)............................   569
            Technology Transition Initiative (sec. 242)..........   569
            Defense Acquisition Challenge Program (sec. 243).....   570
            Encouragement of small businesses and nontraditional 
              defense contractors to submit proposals potentially 
              beneficial for combating terrorism (sec. 244)......   571
            Vehicle fuel cell program (sec. 245).................   572
            Defense nanotechnology research and development 
              program (sec. 246).................................   572
            Activities of the Defense Experimental Program to 
              Stimulate Competitive Research (sec. 247)..........   573
            Four-year extension of authority of DARPA to award 
              prizes for advanced technology achievements and 
              additional authority of military departments and 
              Defense Agencies to award prizes for achievements 
              in promoting education (sec. 248)..................   573
            Plan for five-year program for enhancement of 
              measurement and signatures intelligence 
              capabilities of the United States through 
              incorporation of results of basic research on 
              sensors (sec. 249).................................   574
    Legislative Provisions Not Adopted...........................   574
            Aerospace Relay Mirror System demonstration..........   574
            Agroterrorist attacks................................   574
            Analysis of emerging threats.........................   574
            Army radar power technology..........................   574
            Aviation-shipboard information technology initiative.   575
            Basic seismic research program for support of 
              national requirements for monitoring nuclear 
              explosions.........................................   575
            Critical infrastructure protection...................   575
            DDG optimized manning initiative.....................   576
            Demonstration of renewable energy use................   576
            Full-scale high-speed permanent magnet generator.....   576
            Increased investment in test and evaluation 
              facilities.........................................   576
            Laser welding and cutting demonstration..............   576
            Limitation on obligation of funds for procurement of 
              Patriot (PAC-3) missiles pending submission of 
              required certification.............................   577
            Report on implementation of Defense Science Board 
              recommendations....................................   577
            Theater Aerospace Command and Control Simulation 
              Facility upgrades..................................   577
            Very high speed support vessel for the Army..........   577
Title III--Operation and Maintenance.............................   578
            Overview.............................................   578
            Department of Defense foreign language training......   620
            Ship depot maintenance...............................   620
            Secure communications for the reserve components.....   620
    Items of Special Interest....................................   621
            Formerly Used Defense Site at Lowry Bombing and 
              Gunnery Range......................................   621
            National Imagery and Mapping Agency commercial 
              satellite imaging support..........................   621
    Legislative Provisions Adopted...............................   622
        Subtitle A--Authorization of Appropriations..............   622
            Authorization of appropriations (secs. 301-302)......   622
            Armed Forces Retirement Home (sec. 303)..............   623
            Grant to National Guard Youth Foundation (sec. 304)..   623
        Subtitle B--Environmental Provisions.....................   623
            Enhancement of authority on cooperative agreements 
              for environmental purposes (sec. 311)..............   623
            Single point of contact for policy and budgeting 
              issues regarding unexploded ordnance, discarded 
              military munitions, and munitions constituents 
              (sec. 312).........................................   623
            Authority to carry out construction projects for 
              environmental responses (sec. 313).................   624
            Procurement of environmentally preferable procurement 
              items (sec. 314)...................................   624
            Incidental taking of migratory birds during military 
              readiness activities (sec. 315)....................   624
        Subtitle C--Commissaries and Nonappropriated Fund 
          Instrumentalities......................................   625
            Authority for each military department to provide 
              base operating support to Fisher Houses (sec. 321).   625
            Use of commissary stores and MWR retail facilities by 
              members of National Guard serving in national 
              emergency (sec. 322)...............................   625
            Uniform funding and management of morale, welfare, 
              and recreation programs (sec. 323).................   625
            Rebate agreements under the special supplemental food 
              program (sec. 324).................................   625
        Subtitle D--Workplace and Depot Issues...................   626
            Notification requirements in connection with required 
              studies for conversion of commercial or industrial 
              type functions to contractor performance (sec. 331)   626
            Temporary authority for contractor performance of 
              security-guard functions to meet increased 
              requirements since September 11, 2001 (sec. 332)...   626
            Repeal of obsolete provision regarding depot-level 
              maintenance and repair workloads that were 
              performed at closed or realigned military 
              installations (sec. 333)...........................   626
            Exclusion of certain expenditures from limitation on 
              private sector performance of depot-level 
              maintenance (sec. 334).............................   627
        Subtitle E--Defense Dependents Education.................   627
            Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and 
              Department of Defense civilian employees (sec. 341)   627
            Housing benefits for unaccompanied teachers required 
              to live at Guantanamo Bay Naval Station, Cuba (sec. 
              342)...............................................   627
            Options for funding dependent summer school programs 
              (sec. 343).........................................   627
            Impact aid eligibility for local educational agencies 
              affected by privatization of military housing (sec. 
              344)...............................................   628
            Comptroller General study of adequacy of compensation 
              provided for teachers in the Department of Defense 
              Overseas Dependents' Schools (sec. 345)............   628
        Subtitle F--Information Technology.......................   628
            Annual submission of information regarding 
              information technology capital assets (sec. 351)...   628
            Policy regarding acquisition of information assurance 
              and information assurance-enabled information 
              technology products (sec. 352).....................   628
            Installation and connection policy and procedures 
              regarding Defense Switch Network (sec. 353)........   629
        Subtitle G--Other Matters................................   629
            Distribution of monthly reports on allocation of 
              funds within operation and maintenance budget 
              subactivities (sec. 361)...........................   629
            Continuation of arsenal support program initiative 
              (sec. 362).........................................   629
            Extension of work safety demonstration program (sec. 
              363)...............................................   629
            Condition on authority of Defense Security Service to 
              impose fees on fee-for-service basis (sec. 364)....   629
            Logistics support and services for weapon systems 
              contractors (sec. 365).............................   630
            Training range sustainment plan, Global Status of 
              Resources and Training System, and training range 
              inventory (sec. 366)...............................   630
            Engineering study and environmental analysis of road 
              modifications in vicinity of Fort Belvoir, Virginia 
              (sec. 367).........................................   630
            Reauthorization of warranty claims recovery pilot 
              program (sec. 368).................................   631
            Expanded eligibility for loan, gift, or exchange of 
              documents, historical artifacts, and condemned or 
              obsolete combat materiel (sec. 369)................   631
    Legislative Provisions Not Adopted...........................   631
            Calculation of five-year period of limitation for 
              Navy-Marine Corps Intranet contract................   631
            Clarification of required core logistics capabilities   631
            Cleanup of unexploded ordnance on Kaho'olawe Island, 
              Hawaii.............................................   631
            Impact aid for children with severe disabilities.....   632
            Lift support for mine warfare ships and other vessels   632
            Military readiness and the conservation of protected 
              species............................................   632
            Minimum deduction from pay of certain members of the 
              Armed Forces to support Armed Forces Retirement 
              Home...............................................   633
            National Army Museum, Fort Belvoir, Virginia.........   633
            Navy data conversion activities......................   633
            Navy Pilot Human Resources Call Center, Cutler, Maine   634
            Range Enhancement Initiative Fund....................   634
            Reimbursement for reserve component intelligence 
              support............................................   634
Title IV--Military Personnel Authorizations......................   634
    Legislative Provisions Adopted...............................   634
        Subtitle A--Active Forces................................   634
            End strengths for active forces (sec. 401)...........   634
            Revision in permanent end strength minimum levels 
              (sec. 402).........................................   635
            Expanded authority for administrative increases in 
              statutory active-duty end strengths (sec. 403).....   635
            General and flag officer management (sec. 404).......   636
            Extension of certain authorities relating to 
              management of numbers of general and flag officers 
              in certain grades (sec. 405).......................   636
            Increase in authorized strengths for Marine Corps 
              officers on active duty in the grade of colonel 
              (sec. 406).........................................   637
        Subtitle B--Reserve Forces...............................   637
            End strengths for Selected Reserve (sec. 411)........   637
            End strengths for Reserves on active duty in support 
              of the reserves (sec. 412).........................   637
            End strengths for military technicians (dual status) 
              (sec. 413).........................................   638
            Fiscal year 2003 limitation on non-dual status 
              technicians (sec. 414).............................   638
        Subtitle C--Authorization of Appropriations..............   639
            Authorization of appropriations for military 
              personnel (sec. 421)...............................   639
    Legislative Provisions Not Adopted...........................   639
            Authority to increase strength and grade limitations 
              to account for reserve component members on active 
              duty in support of a contingency operation.........   639
Title V--Military Personnel Policy...............................   640
    Items of Special Interest....................................   640
            Department of Defense education partnerships.........   640
            Enrollments at Air Force Institute of Technology and 
              Naval Postgraduate School..........................   640
            STARBASE resource and training center................   640
    Legislative Provisions Adopted...............................   641
        Subtitle A--Officer Personnel Policy.....................   641
            Extension of good-of-the-service waiver authority for 
              officers appointed to a Reserve Chief or Guard 
              Director position (sec. 501).......................   641
            Exclusion of certain officers from limitation on 
              authority to grant a waiver of required completion 
              or sequencing for joint professional military 
              education (sec. 502)...............................   641
            Extension and codification of authority for recall of 
              retired aviators to active duty (sec. 503).........   642
            Grades for certain positions (sec. 504)..............   642
            Reinstatement of authority to reduce three-year time-
              in-grade requirement for retirement in grade for 
              officers in grades above major and lieutenant 
              commander (sec. 505)...............................   642
            Authority to require that an officer take leave 
              pending review of a recommendation for removal by a 
              board of inquiry (sec. 506)........................   643
        Subtitle B--Reserve Component Management.................   643
            Reviews of National Guard strength accounting and 
              management and other issues (sec. 511).............   643
            Courts-martial for the National Guard when not in 
              Federal service (sec. 512).........................   643
            Fiscal year 2003 funding for military personnel costs 
              of reserve component Special Operations Forces 
              personnel engaged in humanitarian assistance 
              activities relating to clearing of landmines (sec. 
              513)...............................................   644
            Use of Reserves to perform duties relating to defense 
              against terrorism (sec. 514).......................   644
            Repeal of prohibition on use of Air Force Reserve AGR 
              personnel for Air Force base security functions 
              (sec. 515).........................................   644
        Subtitle C--Reserve Component Officer Personnel Policy...   645
            Eligibility for consideration for promotion to grade 
              of major general for certain reserve component 
              brigadier generals who do not otherwise qualify for 
              consideration for promotion under the one-year rule 
              (sec. 521).........................................   645
            Authority for limited extension of medical deferment 
              of mandatory retirement or separation of reserve 
              component officers (sec. 522)......................   645
        Subtitle D--Enlistment, Education, and Training Programs.   645
            Enlistment incentives for pursuit of skills to 
              facilitate national service (sec. 531).............   645
            Authority for phased increase to 4,400 in authorized 
              strengths for the service academies (sec. 532).....   646
            Enhancement of reserve component delayed training 
              program (sec. 533).................................   646
            Review of Armed Forces programs for preparation for, 
              participation in, and conduct of athletic 
              competitions (sec. 534)............................   646
            Repeal of bar to eligibility of Army College First 
              Program participants for benefits under student 
              loan repayment program (sec. 535)..................   647
        Subtitle E--Decorations, Awards, and Commendations.......   647
            Waiver of time limitations for award of Army 
              Distinguished-Service Cross to certain persons 
              (sec. 541).........................................   647
            Option to convert award of Armed Forces Expeditionary 
              Medal awarded for Operation Frequent Wind to 
              Vietnam Service Medal (sec. 542)...................   647
            Korea Defense Service Medal (sec. 543)...............   647
            Commendation of military chaplains (sec. 544)........   648
        Subtitle F--Administrative Matters.......................   648
            Staffing and funding for Defense Prisoner of War/
              Missing Personnel Office (sec. 551)................   648
            Three-year freeze on reductions of personnel of 
              agencies responsible for review and correction of 
              military records (sec. 552)........................   648
            Authority for acceptance of voluntary services of 
              individuals as proctors for administration of Armed 
              Services Vocational Aptitude Battery test (sec. 
              553)...............................................   648
            Extension of temporary early retirement authority 
              (sec. 554).........................................   649
        Subtitle G--Matters Relating to Minorities and Women in 
          the Armed Forces.......................................   649
            Surveys of racial and ethnic issues and of gender 
              issues in the Armed Forces (sec. 561)..............   649
            Annual report on status of female members of the 
              Armed Forces (sec. 562)............................   649
            Wear of abayas by female members of the Armed Forces 
              in Saudi Arabia (sec. 563).........................   649
        Subtitle H--Benefits.....................................   650
            Department of Defense support for persons 
              participating in military funeral honors details 
              (sec. 571).........................................   650
            Emergency leave of absence program (sec. 572)........   650
            Enhanced flexibility in medical loan repayment 
              program (sec. 573).................................   650
            Destinations authorized for Government paid 
              transportation of enlisted personnel for rest and 
              recuperation absence upon extending duty at 
              designated locations overseas (sec. 574)...........   650
            Vehicle storage in lieu of transportation when member 
              is ordered to a nonforeign duty station outside 
              continental United States (sec. 575)...............   651
        Subtitle I--Reports......................................   651
            Quadrennial quality of life review (sec. 581)........   651
            Report on desirability and feasibility of 
              consolidating separate courses of basic instruction 
              for judge advocates (sec. 582).....................   651
            Reports on efforts to resolve status of Captain 
              Michael Scott Speicher, United States Navy (sec. 
              583)...............................................   651
            Report on volunteer services of members of the 
              reserve components in emergency response to the 
              terrorist attacks of September 11, 2001 (sec. 584).   652
    Legislative Provisions Not Adopted...........................   652
            Exemption from active status strength limitation for 
              reserve component general and flag officers serving 
              on active duty in certain joint duty assignments 
              designated by the Chairman of the Joint Chiefs of 
              Staff..............................................   652
            Matching funds requirements under National Guard 
              Youth Challenge Program............................   652
            Military recruiter access to institutions of higher 
              education..........................................   652
            Retention of promotion eligibility for reserve 
              component general and flag officers transferred to 
              an inactive status.................................   653
            Right of convicted accused to request sentencing by 
              military judge.....................................   653
Title VI--Compensation and Other Personnel Benefits..............   653
    Legislative Provisions Adopted...............................   653
        Subtitle A--Pay and Allowances...........................   653
            Increase in basic pay for fiscal year 2003 (sec. 601)   653
            Basic allowance for housing in cases of low-cost or 
              no-cost moves (sec. 602)...........................   653
            Rate of basic allowance for subsistence for enlisted 
              personnel occupying single Government quarters 
              without adequate availability of meals (sec. 603)..   653
        Subtitle B--Bonuses and Special and Incentive Pays.......   654
            One-year extension of certain bonus and special pay 
              authorities for reserve forces (sec. 611)..........   654
            One-year extension of certain bonus and special pay 
              authorities for certain health care professionals 
              (sec. 612).........................................   654
            One-year extension of special pay and bonus 
              authorities for nuclear officers (sec. 613)........   654
            One-year extension of other bonus and special pay 
              authorities (sec. 614).............................   654
            Increase in maximum rates for certain special pays, 
              bonuses, and financial assistance for health care 
              professionals (sec. 615)...........................   655
            Assignment incentive pay (sec. 616)..................   655
            Increase in maximum rates for prior service 
              enlistment bonus (sec. 617)........................   655
            Retention incentives for health care professionals 
              qualified in a critical military skill (sec. 618)..   656
        Subtitle C--Travel and Transportation Allowances.........   656
            Extension of leave travel deferral period for members 
              performing consecutive overseas tours of duty (sec. 
              621)...............................................   656
            Transportation of motor vehicles for members reported 
              missing (sec. 622).................................   656
        Subtitle D--Retired Pay and Survivor Benefits............   656
            Permanent reduction from eight to six in number of 
              years of reserve service required for eligibility 
              for retired pay for non-regular service (sec. 631).   656
            Increased retired pay for enlisted Reserves credited 
              with extraordinary heroism (sec. 632)..............   656
            Elimination of possible inversion in retired pay 
              cost-of-living adjustment for initial COLA 
              computation (sec. 633).............................   657
            Technical revisions to so-called ``forgotten widows'' 
              annuity program (sec. 634).........................   657
            Expansion of authority of Secretary of Defense to 
              waive time limitations on claims against the 
              Government for military personnel benefits (sec. 
              635)...............................................   657
            Special compensation for certain combat-related 
              disabled uniform services retirees (sec. 636)......   657
        Subtitle E--Montgomery GI Bill...........................   658
            Time limitation for use of Montgomery GI Bill 
              entitlement by members of the Selected Reserve 
              (sec. 641).........................................   658
            Repayment requirements under reserve component 
              Montgomery GI Bill arising from failure to 
              participate satisfactorily in military service to 
              be considered debts owed to the United States (sec. 
              642)...............................................   658
            Technical adjustments to authority for certain 
              members to transfer educational assistance under 
              Montgomery GI Bill to dependents (sec. 643)........   658
        Subtitle F--Other Matters................................   658
            Payment of interest on student loans (sec. 651)......   658
            Additional authority to provide assistance for 
              families of members of the Armed Forces (sec. 652).   659
            Repeal of authority for acceptance of honoraria by 
              personnel at certain Department of Defense schools 
              (sec. 653).........................................   659
            Addition of definition of continental United States 
              in title 37 (sec. 654).............................   659
    Legislative Provisions Not Adopted...........................   659
            Minimum levels of hardship duty pay for duty on the 
              ground in Antarctica or on Arctic icepack..........   659
            Modification of amount of back pay for members of 
              Navy and Marine Corps selected for promotion while 
              interned as prisoners of war during World War II to 
              take into account changes in consumer price index..   660
Title VII--Health Care Provisions................................   660
    Items of Special Interest....................................   660
            Civil-military partnership education programs related 
              to sexual health decision-making...................   660
            Naval Medical Research Center cooperative agreements.   660
            TRICARE in Alaska....................................   660
    Legislative Provisions Adopted...............................   661
        Subtitle A--Health Care Program Improvements.............   661
            Elimination of requirement for TRICARE 
              preauthorization of inpatient mental health care 
              for medicare-eligible beneficiaries (sec. 701).....   661
            Continued TRICARE eligibility of dependents residing 
              at remote locations after departure of sponsors for 
              unaccompanied assignments and eligibility of 
              dependents of reserve component members ordered to 
              active duty (sec. 702).............................   661
            Eligibility of surviving dependents for TRICARE 
              dental program benefits after discontinuance of 
              former enrollment (sec. 703).......................   661
            Department of Defense Medicare-Eligible Retiree 
              Health Care Fund (sec. 704)........................   661
            Approval of medicare providers as TRICARE providers 
              (sec. 705).........................................   662
            Technical corrections relating to transitional health 
              care for members separated from active duty (sec. 
              706)...............................................   662
            Extension of temporary authority to enter into 
              personal services contracts for the performance of 
              health care responsibilities at locations other 
              than military medical treatment facilities (sec. 
              707)...............................................   662
            Access to health care services for beneficiaries 
              eligible for TRICARE and Department of Veterans 
              Affairs health care (sec. 708).....................   662
            Disclosure of information on Project 112 to 
              Department of Veterans Affairs (sec. 709)..........   663
        Subtitle B--Reports......................................   663
            Claims information (sec. 711)........................   663
            Comptroller General report on provision of care under 
              the TRICARE program (sec. 712).....................   663
            Repeal of report requirement (sec. 713)..............   663
        Subtitle C--Department of Defense-Department of Veterans 
          Affairs Health Resources Sharing.......................   664
            Revised coordination and sharing guidelines (sec. 
              721)...............................................   664
            Health care resources sharing and coordination 
              project (sec. 722).................................   664
            Report on improved coordination and sharing of health 
              care and health care resources following domestic 
              acts of terrorism or domestic use of weapons of 
              mass destruction (sec. 723)........................   664
            Interoperablity of Department of Veterans Affairs and 
              Department of Defense pharmacy data programs (sec. 
              724)...............................................   665
            Joint pilot program for providing graduate medical 
              education and training for physicians (sec. 725)...   665
            Repeal of certain limits on Department of Veterans 
              Affairs resources (sec. 726).......................   665
    Legislative Provisions Not Adopted...........................   666
            Findings and sense of Congress concerning status of 
              health resources sharing between the Department of 
              Veterans Affairs and the Department of Defense.....   666
            Reports..............................................   666
            Restoration of previous policy regarding restrictions 
              on use of Department of Defense medical facilities.   667
            Short title..........................................   667
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   667
    Legislative Provisions Adopted...............................   667
        Subtitle A--Acquisition Policy and Management............   667
            Buy-to-budget acquisition of end items (sec. 801)....   667
            Report to Congress on evolutionary acquisition of 
              major defense acquisition programs (sec. 802)......   667
            Spiral development under major defense acquisition 
              programs (sec. 803)................................   668
            Improvement of software acquisition processes (sec. 
              804)...............................................   668
            Performance goals for procuring services pursuant to 
              multiple award contracts (sec. 805)................   668
            Rapid acquisition and deployment procedures (sec. 
              806)...............................................   669
            Quick-reaction special projects acquisition team 
              (sec. 807).........................................   669
        Subtitle B--Amendments to General Contracting 
          Authorities, Procedures, and Limitations...............   670
            Limitation period for task and delivery order 
              contracts (sec. 811)...............................   670
            One-year extension of program applying simplified 
              procedures to certain commercial items; report 
              (sec. 812).........................................   670
            Extension and improvement of personnel demonstration 
              policies and procedures applicable to the civilian 
              acquisition workforce (sec. 813)...................   670
            Past performance given significant weight in renewal 
              of procurement technical assistance cooperative 
              agreements (sec. 814)..............................   671
            Increased maximum amount of assistance for tribal 
              organizations or economic enterprises carrying out 
              procurement technical assistance programs in two or 
              more service areas (sec. 815)......................   671
            Extension of contract goal for small disadvantaged 
              businesses and certain institutions of higher 
              education (sec. 816)...............................   671
            Grants of exceptions to cost or pricing data 
              certification requirements and waivers of cost 
              accounting standards (sec. 817)....................   671
            Timing of certification in connection with waiver of 
              survivability and lethality testing requirements 
              (sec. 818).........................................   672
            Contracting with Federal Prison Industries (sec. 819)   672
            Revisions to multiyear contracting authority (sec. 
              820)...............................................   672
        Subtitle C--Acquisition-Related Reports and Other Matters   672
            Evaluation of training, knowledge, and resources 
              regarding negotiation of intellectual property 
              arrangements (sec. 821)............................   673
            Independent technology readiness assessments (sec. 
              822)...............................................   673
            Extension and amendment of requirement for annual 
              report on defense commercial pricing management 
              improvement (sec. 823).............................   673
            Assessment of purchases of products and services 
              through contracts with other Federal departments 
              and agencies (sec. 824)............................   673
            Repeal of certain requirements and Comptroller 
              General reviews of the requirements (sec. 825).....   674
            Multiyear procurement authority for purchase of 
              dinitrogen tetroxide, hydrazine, and hydrazine-
              related products (sec. 826)........................   674
            Multiyear procurement authority for environmental 
              services for military installations (sec. 827).....   674
            Report on effects of Army Contracting Agency (sec. 
              828)...............................................   674
            Authorization to take actions to correct the 
              industrial resource shortfall for radiation-
              hardened electronics (sec. 829)....................   675
    Legislative Provisions Not Adopted...........................   675
            Authority for nonprofit organizations to self-certify 
              eligibility for treatment as qualified 
              organizations employing severely disabled under 
              Mentor-Protege Program.............................   675
            Authority to make inflation adjustments to simplified 
              acquisition threshold..............................   675
            Mentor-Protege Program eligibility for HUBZone small 
              business concerns and small business concerns owned 
              and controlled by service-disabled veterans........   675
            Modification of scope of ball and roller bearings 
              covered for purposes of procurement limitation.....   675
            Moratorium on reduction of the defense acquisition 
              and support workforce..............................   676
            Pilot program for transition to follow-on contracts 
              for prototype projects.............................   676
            Plan for acquisition management professional exchange 
              pilot program......................................   676
            Report on development of anticyberterrorism 
              technology.........................................   676
            Waiver authority for domestic source or content 
              requirements.......................................   676
Title IX--Department of Defense Organization and Management......   677
    Legislative Provisions Adopted...............................   677
        Subtitle A--Duties and Functions of Department of Defense 
          Officers...............................................   677
            Under Secretary of Defense for Intelligence (sec. 
              901)...............................................   677
            Reorganization of Office of Secretary of Defense for 
              administration of duties relating to homeland 
              defense and combating terrorism (sec. 902).........   677
        Subtitle B--Space Activities.............................
            Oversight of acquisition for defense space programs 
              (sec. 911).........................................   677
            Report regarding assured access to space for the 
              United States (sec. 912)...........................   678
        Subtitle C--Reports......................................   679
            Report on establishment of United States Northern 
              Command (sec. 921).................................   679
            Time for submittal of report on Quadrennial Defense 
              Review (sec. 922)..................................   679
            National defense mission of Coast Guard to be 
              included in future Quadrennial Defense Reviews 
              (sec. 923).........................................   679
            Report on establishment of a Joint National Training 
              Complex and joint opposing forces (sec. 924).......   679
        Subtitle D--Other Matters................................   680
            Authority to accept gifts for National Defense 
              University (sec. 931)..............................   680
            Western Hemisphere Institute for Security Cooperation 
              (sec. 932).........................................   680
            Conforming amendment to reflect disestablishment of 
              Department of Defense Consequence Management 
              Program Information Office (sec. 933)..............   680
            Increase in number of Deputy Commandants of the 
              Marine Corps (sec. 934)............................   681
    Legislative Provisions Not Adopted...........................   681
            Change in title of Secretary of the Navy to the 
              Secretary of the Navy and the Marine Corps.........   681
            Report on effect of operations other than war on 
              combat readiness of the Armed Forces...............   681
Title X--General Provisions......................................   682
            Deferral of expenditures on financial management and 
              feeder systems.....................................   682
            Drug interdiction and counterdrug activities.........   682
            Improved management of Department of Defense 
              contracting for services...........................   683
    Legislative Provisions Adopted...............................   684
        Subtitle A--Financial Matters............................   684
            Transfer authority (sec. 1001).......................   684
            Authorization of supplemental appropriations for 
              fiscal year 2002 (sec. 1002).......................   684
            United States contribution to NATO common-funded 
              budgets in fiscal year 2003 (sec. 1003)............   684
            Development and implementation of financial 
              management enterprise architecture (sec. 1004).....   685
            Accountable officials in the Department of Defense 
              (sec. 1005)........................................   685
            Uniform standards throughout Department of Defense 
              for exposure of personnel to pecuniary liability 
              for loss of Government property (sec. 1006)........   685
            Improvements in purchase card management (sec. 1007).   686
            Improvements in travel card management (sec. 1008)...   686
            Clearance of certain transactions recorded in 
              Treasury suspense accounts and resolution of 
              certain check issuance discrepancies (sec. 1009)...   686
            Authorization of funds for ballistic missile defense 
              programs or combating terrorism programs of the 
              Department of Defense (sec. 1010)..................   687
            Reduction in overall authorization due to inflation 
              savings (sec. 1011)................................   687
        Subtitle B--Naval Vessels and Shipyards..................   688
            Number of Navy combatant surface vessels in active 
              and reserve service (sec. 1021)....................   688
            Annual long-range plan for the construction of naval 
              vessels (sec. 1022)................................   688
            Assessment of the feasibility of the expedited 
              equipping of a Navy ship with a version of the 155-
              millimeter Advanced Gun System (sec. 1023).........   688
            Report on initiatives to increase operational days of 
              Navy ships (sec. 1024).............................   689
            Ship combat system industrial base (sec. 1025).......   689
            Sense of Congress concerning aircraft carrier force 
              structure (sec. 1026)..............................   689
            Conveyance, Navy drydock, Portland, Oregon (sec. 
              1027)..............................................   689
        Subtitle C--Strategic Matters............................   689
            Strategic force structure plan for nuclear weapons 
              and delivery systems (sec. 1031)...................   689
            Annual report on weapons to defeat hardened and 
              deeply buried targets (sec. 1032)..................   690
            Report on effects of nuclear earth-penetrator weapon 
              and other weapons (sec. 1033)......................   690
        Subtitle D--Reports......................................   691
            Repeal and modification of various reporting 
              requirements applicable to the Department of 
              Defense (sec. 1041)................................   691
            Requirement that Department of Defense reports to 
              Congress be accompanied by electronic version (sec. 
              1042)..............................................   691
            Annual report on the conduct of military operations 
              conducted as part of Operation Enduring Freedom 
              (sec. 1043)........................................   691
            Report on efforts to ensure adequacy of fire fighting 
              staffs at military installations (sec. 1044).......   692
            Report on designation of certain Louisiana highway as 
              Defense Access Road (sec. 1045)....................   692
        Subtitle E--Extension of Expiring Authorities............   692
            Extension of authority for Secretary of Defense to 
              sell aircraft and aircraft parts for use in 
              responding to oil spills (sec. 1051)...............   692
            Six-month extension of expiring Governmentwide 
              information security requirements; continued 
              applicability of expiring Governmentwide 
              information security requirements to the Department 
              of Defense (sec. 1052).............................   692
            Two-year extension of authority of the Secretary of 
              Defense to engage in commercial activities as 
              security for intelligence collection activities 
              abroad (sec. 1053).................................   693
        Subtitle F--Other Matters................................   693
            Time for transmittal of annual defense authorization 
              legislative proposal (sec. 1061)...................   693
            Technical and clerical amendments (sec. 1062)........   693
            Use for law enforcement purposes of DNA samples 
              maintained by Department of Defense for 
              identification of human remains (sec. 1063)........   693
            Enhanced authority to obtain foreign language 
              services during periods of emergency (sec. 1064)...   693
            Rewards for assistance in combating terrorism (sec. 
              1065)..............................................   694
            Provision of space and services to military welfare 
              societies (sec. 1066)..............................   694
            Prevention and mitigation of corrosion of military 
              equipment and infrastructure (sec. 1067)...........   694
            Transfer of historic DF-9E Panther Aircraft to Women 
              Airforce Service Pilots Museum (sec. 1068).........   695
            Increase in amount authorized to be expended for 
              Department of Defense program to commemorate 50th 
              anniversary of the Korean War (sec. 1069)..........   695
    Legislative Provisions Not Adopted...........................   695
            Assignment of members to assist Immigration and 
              Naturalization Service and Customs Service.........   695
            Authority to transfer funds within a major 
              acquisition program from Procurement to Research, 
              Development, Test and Evaluation...................   695
            Availability of amounts for Oregon Army National 
              Guard for search and rescue and medical evacuation 
              missions in adverse weather conditions.............   696
            Charter grant to Korean War Veterans Association.....   696
            Enhanced cooperation between United States and 
              Russian Federation to promote mutual security......   696
            Homeland security activities of the National Guard...   697
            Limitation on duration of future Department of 
              Defense reporting requirements.....................   697
            Reallocation of authorizations of appropriations from 
              ballistic missile defense to shipbuilding..........   697
            Report on biological weapons defense and 
              counterproliferation...............................   697
            Report on effects of nuclear-tipped ballistic missile 
              interceptors and nuclear missiles not intercepted..   697
            Sense of Congress on maintenance of a reliable, 
              flexible, and robust strategic deterrent...........   698
            Sense of Congress on prohibition of use of funds for 
              International Criminal Court.......................   698
            Transfer of funds to increase amounts for PAC-3 
              missile procurement and Israeli Arrow program......   698
            Utah Test and Training Range.........................   698
            War risk insurance for vessels in support of NATO-
              approved operations................................   699
Title XI--Department of Defense Civilian Personnel...............   699
    Legislative Provisions Adopted...............................   699
            Eligibility of Department of Defense nonappropriated 
              fund employees for long-term care insurance (sec. 
              1101)..............................................   699
            Extension of Department of Defense authority to make 
              lump-sum severance payments (sec. 1102)............   699
            Continuation of Federal Employee Health Benefits 
              Program eligibility (sec. 1103)....................   699
            Certification for Department of Defense professional 
              accounting positions (sec. 1104)...................   700
    Legislative Provisions Not Adopted...........................   700
            Common occupational and health standards for 
              differential payments as a consequence of exposure 
              to asbestos........................................   700
            Extension of voluntary separation incentive pay 
              authority..........................................   700
            Increased maximum period of appointment under the 
              experimental personnel program for scientific and 
              technical personnel................................   701
            Triennial full-scale federal wage system wage surveys   701
Title XII--Matters Relating to Other Nations.....................   702
    Legislative Provisions Adopted...............................   702
            Authority to provide administrative services and 
              support for coalition liaison officers (sec. 1201).   702
            Authority to pay for certain travel of defense 
              personnel of countries participating in NATO 
              Partnership for Peace program (sec. 1202)..........   702
            Limitation on funding for Joint Data Exchange Center 
              in Moscow (sec. 1203)..............................   702
            Support of United Nations-sponsored efforts to 
              inspect and monitor Iraqi weapons activities (sec. 
              1204)..............................................   703
            Comprehensive annual report to Congress on 
              coordination and integration of all United States 
              non-proliferation activities (sec. 1205)...........   703
            Report requirement regarding Russian proliferation to 
              Iran and other countries of proliferation concern 
              (sec. 1206)........................................   703
            Monitoring of implementation of 1979 agreement 
              between the United States and China on cooperation 
              in science and technology (sec. 1207)..............   704
            Extension of certain counterproliferation activities 
              and programs (sec. 1208)...........................   704
            Semiannual report by Director of Central Intelligence 
              on contributions by foreign persons to efforts of 
              countries of proliferation concern to obtain 
              weapons of mass destruction and their delivery 
              systems (sec. 1209)................................   705
            Report on feasibility and advisability of senior 
              officer exchanges between the Armed Forces of the 
              United States and the military forces of Taiwan 
              (sec. 1210)........................................   705
            Report on United States force structure in the 
              Pacific (sec. 1211)................................   705
    Legislative Provisions Not Adopted...........................   706
            Additional countries covered by loan guarantee 
              program............................................   706
            Arctic and Western Pacific Environmental Cooperation 
              Program............................................   706
            Department of Defense HIV/AIDS Prevention Assistance 
              Program............................................   706
            Limitation on number of military personnel in 
              Colombia...........................................   706
            Russian tactical nuclear weapons.....................   707
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   707
    Items of Special Interest....................................   707
            Weapons of Mass Destruction Proliferation Prevention 
              Program of the Cooperative Threat Reduction program 
              with the States of the Former Soviet Union.........   707
    Legislative Provisions Adopted...............................   708
            Specification of Cooperative Threat Reduction 
              programs and funds (sec. 1301).....................   708
            Funding allocations (sec. 1302)......................   708
            Prohibition against use of funds until submission of 
              reports (sec. 1303)................................   708
            Report on use of revenue generated by activities 
              carried out under Cooperative Threat Reduction 
              programs (sec. 1304)...............................   708
            Prohibition against use of funds for second wing of 
              fissile materials storage facility (sec. 1305).....   709
            Limited waiver of restrictions on use of funds for 
              threat reduction in states of the former Soviet 
              Union (sec. 1306)..................................   709
    Legislative Provisions Not Adopted...........................   710
            Prohibition against use of Cooperative Threat 
              Reduction funds outside the States of the former 
              Soviet Union.......................................   710
Title XIV--Homeland Security.....................................
    Legislative Provisions Adopted...............................   710
            Transfer of technology items and equipment in support 
              of homeland security (sec. 1401)...................   710
            Comprehensive plan for improving the preparedness of 
              military installations for terrorist incidents 
              (sec. 1402)........................................   711
            Additional Weapons of Mass Destruction Civil Support 
              Teams (sec. 1403)..................................   711
            Report on the role of the Department of Defense in 
              supporting homeland security (sec. 1404)...........   712
            Sense of Congress on Department of Defense assistance 
              to local first responders (sec. 1405)..............   712
    Legislative Provisions Not Adopted...........................   712
            Additional weapons of mass destruction civil support 
              teams..............................................   712
Title XV--Authorization of Appropriations for the War on 
  Terrorism......................................................   712
    Legislative Provisions Adopted...............................   712
            Authorization of appropriations for continued 
              operations for the war on terrorism (secs. 1501-
              1508)..............................................   712
    Legislative Provisions Not Adopted...........................   714
            Air Force procurement................................   714
            Army procurement.....................................   714
            Authority for joint task forces to provide support to 
              law enforcement agencies conducting counter-
              terrorism activities...............................   714
            Authorized military construction and land acquisition 
              projects...........................................   714
            Defense-Wide Activities procurement..................   715
            Effective date.......................................   715
            Increase in amount of death gratuity.................   715
            Increase in rate for career enlisted flyer incentive 
              pay................................................   715
            Increase in rate for diving duty special pay.........   715
            Increase in rate for family separation allowance.....   715
            Increase in rate for imminent danger pay.............   716
            Increase in rates for various hazardous duty 
              incentive pays.....................................   716
            Military personnel...................................   716
            Navy and Marine Corps procurement....................   716
            Operation and Maintenance............................   716
            Research, Development, Test and Evaluation, Defense-
              wide...............................................   716
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   717
            Overview.............................................   717
            Short title (sec. 2001)..............................   740
Title XXI--Army..................................................   740
            Overview.............................................   740
    Items of Special Interest....................................   740
            Fort Bliss, Texas....................................   740
            Fort Dix, New Jersey.................................   740
    Legislative Provisions Adopted...............................   740
            Authorized Army construction and land acquisition 
              projects (sec. 2101)...............................   740
            Family housing (sec. 2102)...........................   740
            Improvements to military family housing units (sec. 
              2103)..............................................   741
            Authorization of appropriations, Army (sec. 2104)....   741
            Modification of authority to carry out certain fiscal 
              year 2002 projects (sec. 2105).....................   741
            Modification of authority to carry out certain fiscal 
              year 2001 project (sec. 2106)......................   741
    Legislative Provisions Not Adopted...........................   742
            Planning and design for anechoic chamber at White 
              Sands Missile Range, New Mexico....................   742
Title XXII--Navy.................................................   742
            Overview.............................................   742
    Legislative Provisions Adopted...............................   742
            Authorized Navy construction and land acquisition 
              projects (sec. 2201)...............................   742
            Family housing (sec. 2202)...........................   742
            Improvements to military family housing units (sec. 
              2203)..............................................   742
            Authorization of appropriations, Navy (sec. 2204)....   743
            Modification of authority to carry out certain fiscal 
              year 2002 projects (sec. 2205).....................   743
Title XXIII--Air Force...........................................   743
            Overview.............................................   743
    Legislative Provisions Adopted...............................   743
            Authorized Air Force construction and land 
              acquisition projects (sec. 2301)...................   743
            Family housing (sec. 2302)...........................   744
            Improvements to military family housing units (sec. 
              2303)..............................................   744
            Authorization of appropriations, Air Force (sec. 
              2304)..............................................   744
            Authority for use of military construction funds for 
              construction of public road near Aviano Air Base, 
              Italy, to replace road closed for force protection 
              purposes (sec. 2305)...............................   744
    Legislative Provisions Not Adopted...........................   744
            Additional project authorization for air traffic 
              control facility at Dover Air Force Base, Delaware.   744
            Availability of funds for consolidation of materials 
              computational research facility at Wright-Patterson 
              Air Force Base, Ohio...............................   745
Title XXIV--Defense Agencies.....................................   745
            Overview.............................................   745
    Legislative Provisions Adopted...............................   745
            Authorized Defense Agencies construction and land 
              acquisition projects (sec. 2401)...................   745
            Improvements to military family housing units (sec. 
              2402)..............................................   745
            Energy conservation projects (sec. 2403).............   746
            Authorization of appropriations, Defense Agencies 
              (sec. 2404)........................................   746
            Modification of authority to carry out certain fiscal 
              year 2000 project (sec. 2405)......................   746
            Modification of authority to carry out certain fiscal 
              year 1999 project (sec. 2406)......................   746
            Modification of authority to carry out certain fiscal 
              year 1997 project (sec. 2407)......................   746
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   747
            Authorized NATO construction and land acquisition 
              projects (sec. 2501)...............................   747
            Authorization of appropriations, NATO (sec. 2502)....   747
Title XXVI--Guard and Reserve Forces Facilities..................   747
            Overview.............................................   747
    Items of Special Interest....................................   747
            Planning and design, Army National Guard.............   747
    Legislative Provisions Adopted...............................   748
            Authorized Guard and Reserve construction and land 
              acquisition projects (sec. 2601)...................   748
    Legislative Provisions Not Adopted...........................   748
            Army National Guard Reserve Center, Lane County, 
              Oregon.............................................   748
            Additional project authorization for composite 
              support facility for Illinois Air National Guard...   748
Title XXVII--Expiration and Extension of Authorizations..........   748
    Legislative Provisions Adopted...............................   748
            Expiration of authorizations and amounts required to 
              be specified by law (sec. 2701)....................   748
            Extension of authorizations of certain fiscal year 
              2000 projects (sec. 2702)..........................   749
            Extension of authorizations of certain fiscal year 
              1999 projects (sec. 2703)..........................   749
    Legislative Provisions Not Adopted...........................   749
            Effective date.......................................   749
Title XXVIII--General Provisions.................................   749
    Items of Special Interest....................................   749
            Blount Island, Jacksonville, Florida.................   749
    Legislative Provisions Adopted...............................   750
        Subtitle A--Military Construction Program and Military 
          Family Housing Changes.................................   750
            Leasing of military family housing in Korea (sec. 
              2801)..............................................   750
            Modification of alternative authority for acquisition 
              and improvement of military housing (sec. 2802)....   750
            Pilot housing privatization authority for acquisition 
              or construction of military unaccompanied housing 
              (sec. 2803)........................................   751
            Repeal of source requirements for family housing 
              construction overseas (sec. 2804)..................   751
            Availability of energy cost savings realized at 
              military installations (sec. 2805).................   751
        Subtitle B--Real Property and Facilities Administration..   751
            Agreements to limit encroachments and other 
              constraints on military training, testing, and 
              operations (sec. 2811).............................   751
            Conveyance of surplus real property for natural 
              resource conservation purposes (sec. 2812).........   752
            Modification of demonstration program on reduction in 
              long-term facility maintenance costs (sec. 2813)...   752
            Expanded authority to transfer property at military 
              installations to be closed to persons who construct 
              or provide military family housing (sec. 2814).....   753
        Subtitle C--Land Conveyances.............................   753
            Transfer of jurisdiction, Fort McClellan, Alabama, to 
              establish Mountain Longleaf National Wildlife 
              Refuge (sec. 2821).................................   753
            Land conveyances, lands in Alaska no longer required 
              for National Guard purposes (sec. 2822)............   753
            Land conveyance, Sunflower Army Ammunition Plant, 
              Kansas (sec. 2823).................................   753
            Land conveyances, Bluegrass Army Depot, Richmond, 
              Kentucky (sec. 2824)...............................   754
            Land conveyance, Fort Campbell, Kentucky (sec. 2825).   754
            Land conveyance, Army Reserve Training Center, 
              Buffalo, Minnesota (sec. 2826).....................   755
            Land conveyance, Fort Monmouth, New Jersey (sec. 
              2827)..............................................   755
            Land conveyance, Fort Bliss, Texas (sec. 2828).......   755
            Land conveyance, Fort Hood, Texas (sec. 2829)........   756
            Land conveyances, Engineer Proving Ground, Fort 
              Belvoir, Virginia (sec. 2830)......................   756
            Land conveyance, Marine Corps Air Station, Miramar, 
              San Diego, California (sec. 2831)..................   756
            Modification of authority for land transfer and 
              conveyance, Naval Security Group Activity, Winter 
              Harbor, Maine (sec. 2832)..........................   757
            Land conveyance, Westover Air Reserve Base, 
              Massachusetts (sec. 2833)..........................   757
            Land conveyance, Naval Station, Newport, Rhode Island 
              (sec. 2834)........................................   757
            Land exchange and boundary adjustments, Marine Corps 
              Base, Quantico, and Prince William Forest Park, 
              Virginia (sec. 2835)...............................   758
            Modification of land conveyance, Los Angeles Air 
              Force Base, California (sec. 2841).................   758
            Land exchange, Buckley Air Force Base, Colorado (sec. 
              2842)..............................................   758
            Land conveyances, Wendover Air Force Base Auxiliary 
              Field, Nevada (sec. 2843)..........................   759
        Subtitle D--Other Matters................................   759
            Master plan for use of Navy Annex, Arlington, 
              Virginia (sec. 2851)...............................   759
            Sale of excess treated water and wastewater treatment 
              capacity, Marine Corps Base, Camp Lejeune, North 
              Carolina (sec. 2852)...............................   759
            Conveyance of real property, Adak Naval Complex, 
              Alaska, and related land conveyances (sec. 2853)...   759
            Special requirement for adding military installation 
              to closure list (sec. 2854)........................   760
    Legislative Provisions Not Adopted...........................   760
            Easement for construction of roads or highways, 
              Marine Corps Base, Camp Pendleton, California......   760
            Land acquisition, Boundary Channel Drive Site, 
              Arlington..........................................   761
            National emergency exemption from screening and other 
              requirements of McKinney-Vento Homeless Assistance 
              Act for property used in support of response 
              activities.........................................   761
            Transfer of funds for acquisition of replacement 
              property for National Wildlife Refuge system lands 
              in Nevada..........................................   761
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   761
Title XXXI--Department of Energy National Security Programs......   761
            Overview.............................................   761
    Items of Special Interest....................................   782
            Management of the National Nuclear Security 
              Administration.....................................   782
    Legislative Provisions Adopted...............................   782
        Subtitle A--National Security Programs...................   782
            Authorizations.......................................   782
            National Nuclear Security Administration (sec. 3101).   782
            Defense environmental management (sec. 3102).........   783
            Other defense activities (sec. 3103).................   784
            Defense nuclear waste disposal (sec. 3104)...........   784
        Subtitle B--Program Authorizations, Restrictions, and 
          Limitations............................................   784
            Annual assessments and reports to the President and 
              Congress regarding the condition of the United 
              States nuclear weapons stockpile (sec. 3141).......   784
            Plans for achieving enhanced readiness posture for 
              resumption by the United States of underground 
              nuclear weapons tests (sec. 3142)..................   785
            Requirements for specific request for new or modified 
              nuclear weapons (sec. 3143)........................   786
            Database to track notification and resolution phases 
              of Significant Finding Investigations (sec. 3144)..   786
            Defense environmental management cleanup reform 
              program (sec. 3145)................................   787
            Limitation on obligation of funds for Robust Nuclear 
              Earth Penetrator program pending submission of 
              report (sec. 3146).................................   787
        Subtitle C--Proliferation Matters........................   788
            Transfer to National Nuclear Security Administration 
              of Department of Defense's Cooperative Threat 
              Reduction program relating to elimination of 
              weapons grade plutonium production in Russia (sec. 
              3151)..............................................   788
            Repeal of requirement for reports on obligation of 
              funds for programs on fissile materials in Russia 
              (sec. 3152)........................................   789
            Expansion of annual reports on status of nuclear 
              materials protection, control, and accounting 
              programs (sec. 3153)...............................   789
            Testing of preparedness for emergencies involving 
              nuclear, radiological, chemical, or biological 
              weapons (sec. 3154)................................   789
            Cooperative program on research, development, and 
              demonstration of technology regarding nuclear or 
              radiological terrorism (sec. 3155).................   789
            Matters relating to the International Materials 
              Protection, Control, and Accounting program of the 
              Department of Energy (sec. 3156)...................   790
            Accelerated disposition of highly enriched uranium 
              (sec. 3157)........................................   791
            Strengthened international security for nuclear 
              materials and security of nuclear operations (sec. 
              3158)..............................................   792
            Export control programs (sec. 3159)..................   793
            Plan for accelerated return of weapons-usable nuclear 
              material (Sec. 3160)...............................   793
            Sense of Congress on amendment of Convention on 
              Physical Protection of Nuclear Materials (sec. 
              3161)..............................................   794
            Sense of Congress on program to secure stockpiles of 
              highly enriched uranium and plutonium (sec. 3162)..   794
        Subtitle D--Other Matters................................   795
            Indemnification of Department of Energy contractors 
              (sec. 3171)........................................   795
            Support for public education in the vicinity of Los 
              Alamos National Laboratory, New Mexico (sec. 3172).   795
            Worker health and safety rules for Department of 
              Energy nuclear facilities (sec. 3173)..............   796
            Extension of authority to appoint certain scientific, 
              engineering, and technical personnel (sec. 3174)...   797
            One-year extension of panel to assess the 
              reliability, safety, and security of the United 
              States nuclear stockpile (sec. 3175)...............   797
            Report on status of environmental management 
              initiatives to accelerate the reduction of 
              environmental risks and challenges posed by the 
              legacy of the Cold War (sec. 3176).................   797
        Subtitle E--Disposition of Weapons-Usable Plutonium at 
          Savannah River, South Carolina.........................   798
            Findings (sec. 3181).................................   798
            Disposition of weapons-usable plutonium at Savannah 
              River Site (sec. 3182).............................   798
            Study of facilities for storage of plutonium and 
              plutonium materials at Savannah River Site (sec. 
              3183)..............................................   799
    Legislative Provisions Not Adopted...........................   799
            Availability of funds for environmental management 
              cleanup reform.....................................   799
            Disposition of plutonium in Russia...................   800
            Improvements to nuclear materials protection, 
              control, and accounting program of the Russian 
              Federation.........................................   801
            One-year extension of authority of Department of 
              Energy to pay voluntary separation incentive 
              payments...........................................   801
            Prohibition on development of low-yield nuclear 
              weapon.............................................   801
            Requirement for authorization by law for funds 
              obligated or expended for Department of Energy 
              national security activities.......................   802
            Utilization of Department of Energy national 
              laboratories and sites in support of 
              counterterrorism and homeland security activities..   802
Title XXXII--Defense Nuclear Facilities Safety Board.............   802
    Legislative Provisions Adopted...............................   802
            Authorization (sec. 3201)............................   802
    Legislative Provisions Not Adopted...........................   802
            Authorization of appropriations for the formerly used 
              sites remedial action program of the Corps of 
              Engineers..........................................   802
Title XXXIII--National Defense Stockpile.........................   803
    Legislative Provisions Adopted...............................   803
            Authorized uses of National Defense Stockpile funds 
              (sec. 3301)........................................   803
Title XXXIV--Naval Petroleum Reserves............................   803
    Legislative Provisions Adopted...............................   803
            Authorization of appropriations (sec. 3401)..........   803
Title XXXV--Maritime Administration..............................   803
    Legislative Provisions Adopted...............................   803
            Authorization of appropriations for fiscal year 2003 
              (sec. 3501)........................................   803
            Authority to convey vessel USS SPHINX (ARL-24) (sec. 
              3502)..............................................   803
            Independent analysis of title XI insurance guarantee 
              applications (sec. 3503)...........................   803
            Preparation as artificial reefs and scrapping of 
              obsolete vessels (sec. 3504).......................   804
Title XXXVI--Atomic Energy Defense Provisions....................   804
            Short title (sec. 3601)..............................   804
    Legislative Provisions Adopted...............................   805
        Subtitle A--[Reserved]...................................   805
        Subtitle B--Department of Energy National Security 
          Authorization General Provisions.......................   805
            Definitions (sec. 3620)..............................   805
            Reprogramming (sec. 3621)............................   805
            Minor construction projects (sec. 3622)..............   805
            Limits on construction projects (sec. 3623)..........   806
            Fund transfer authority (sec. 3624)..................   806
            Conceptual and construction design (sec. 3625).......   806
            Authority for emergency planning, design, and 
              construction activities (sec. 3626)................   806
            Scope of authority to carry out plant projects (sec. 
              3627)..............................................   807
            Availability of funds (sec. 3628)....................   807
            Transfer of defense environmental management funds 
              (sec. 3629)........................................   807
            Transfer of weapons activities funds (sec. 3630).....   808
            Funds available for all national security programs of 
              the Department of Energy (sec. 3631)...............   808



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-772
======================================================================

   BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

                                _______
                                

               November 12, 2002.--Ordered to be printed

                                _______
                                

  Mr. Stump, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 4546]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the House to the amendment 
of the Senate to the bill (H.R. 4546), to authorize 
appropriations for fiscal year 2003 for military activities of 
the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe 
personnel strengths for such fiscal year for the Armed Forces, 
and for other purposes, having met, after full and free 
conference, have agreed to recommend and do recommend to their 
respective Houses as follows:
      That the Senate recede from its disagreement to the 
amendment of the House and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
House amendment, insert the following:

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Bob Stump 
National Defense Authorization Act for Fiscal Year 2003''.
    (b) Findings.--Congress makes the following findings:
            (1) Representative Bob Stump of Arizona was elected 
        to the House of Representatives in 1976 for service in 
        the 95th Congress, after serving in the Arizona 
        legislature for 18 years and serving as President of 
        the Arizona State Senate from 1975 to 1976, and he has 
        been reelected to each subsequent Congress.
            (2) A World War II combat veteran, Representative 
        Stump entered service in the United States Navy in 
        1943, just after his 16th birthday, and served aboard 
        the USS LUNGA POINT and the USS TULAGI, which 
        participated in the invasions of Luzon, Iwo Jima, and 
        Okinawa.
            (3) Representative Stump was elected to the 
        Committee on Armed Services in 1978 and has served on 
        nearly all of its subcommittees and panels during 25 
        years of distinguished service on the committee. He has 
        served as chairman of the committee during the 107th 
        Congress and has championed United States national 
        security as the paramount function of the Federal 
        Government.
            (4) Also serving on the Committee on Veterans' 
        Affairs of the House of Representatives, chairing that 
        committee from 1995 to 2000, and serving on the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives, including service as the ranking 
        minority member in 1985 and 1986, Representative Stump 
        has dedicated his entire congressional career to 
        steadfastly supporting America's courageous men and 
        women in uniform both on and off the battlefield.
            (5) Representative Stump's tireless efforts on 
        behalf of those in the military and veterans have been 
        recognized with numerous awards for outstanding service 
        from active duty and reserve military, veterans' 
        service, military retiree, and industry organizations.
            (6) During his tenure as chairman of the Committee 
        on Armed Services of the House of Representatives, 
        Representative Stump has--
                    (A) overseen the largest sustained increase 
                to defense spending since the Reagan 
                administration;
                    (B) led efforts to improve the quality of 
                military life, including passage of the largest 
                military pay raise since 1982;
                    (C) supported military retirees, including 
                efforts to reverse concurrent receipt law and 
                to save the Armed Forces Retirement Homes;
                    (D) championed military readiness by 
                defending military access to critical training 
                facilities such Vieques, Puerto Rico, expanding 
                the National Training Center at Ft. Irwin, 
                California, and working to restore balance 
                between environmental concerns and military 
                readiness requirements;
                    (E) reinvigorated efforts to defend America 
                against ballistic missiles by supporting an 
                increase in fiscal year 2002 of nearly 50 
                percent above the fiscal year 2001 level for 
                missile defense programs; and
                    (F) honored America's war heroes by 
                expanding Arlington National Cemetery, 
                establishing a site for the Air Force Memorial, 
                and assuring construction of the World War II 
                Memorial.
            (7) In recognition of his long record of 
        accomplishments in enhancing the national security of 
        the United States and his legislative victories on 
        behalf of active duty service members, reservists, 
        guardsmen, and veterans, it is altogether fitting and 
        proper that this Act be named in honor of 
        Representative Bob Stump of Arizona, as provided in 
        subsection (a).

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into three divisions 
as follows:
            (1) Division A--Department of Defense 
        Authorizations.
            (2) Division B--Military Construction 
        Authorizations.
            (3) Division C--Department of Energy National 
        Security Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act 
is as follows:

Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources. 
Sec. 112. Report on impact of Army aviation modernization plan on the 
          Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                        Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
          destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
          Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
          fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
          pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
          and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Defense health programs.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
          responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
          Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the objective 
          force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
          Systems non-line-of-sight cannon indirect fire capability for 
          the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
          program.
Sec. 218. Littoral combat ship program.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
          programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
          development, test, and evaluation related to system 
          improvements of programs transferred to military departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
          Area Defense Program pending submission of required life-cycle 
          cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
          Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
          Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
          interceptors.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
          facilities.
Sec. 233. Uniform financial management system for Department of Defense 
          test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                        Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
          laboratories.
Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
          contractors to submit proposals potentially beneficial for 
          combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
          Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
          advanced technology achievements and additional authority of 
          military departments and Defense Agencies to award prizes for 
          achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
          signatures intelligence capabilities of the United States 
          through incorporation of results of basic research on sensors.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
          environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
          regarding unexploded ordnance, discarded military munitions, 
          and munitions constituents.
Sec. 313. Authority to carry out construction projects for environmental 
          responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military readiness 
          activities.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
          operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
          of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
          recreation programs.
Sec. 324. Rebate agreements under the special supplemental food program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
          for conversion of commercial or industrial type functions to 
          contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
          guard functions to meet increased requirements since September 
          11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level maintenance 
          and repair workloads that were performed at closed or 
          realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
          sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
          at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies affected 
          by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation provided 
          for teachers in the Department of Defense Overseas Dependents' 
          Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
          technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
          information assurance-enabled information technology products.
Sec. 353. Installation and connection policy and procedures regarding 
          Defense Switch Network.

                        Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
          operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
          fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
          and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
          modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, 
          historical artifacts, and condemned or obsolete combat 
          materiel.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
          active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
          numbers of general and flag officers in certain grades.
Sec. 406. Increase in authorized strengths for Marine Corps officers on 
          active duty in the grade of colonel.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitation on non-dual status technicians.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of good-of-the-service waiver authority for officers 
          appointed to a Reserve Chief or Guard Director position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
          grant a waiver of required completion or sequencing for joint 
          professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
          aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
          requirement for retirement in grade for officers in grades 
          above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending review 
          of a recommendation for removal by a board of inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
          and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
          service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
          reserve component Special Operations Forces personnel engaged 
          in humanitarian assistance activities relating to clearing of 
          landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
          terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
          personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
          general for certain reserve component brigadier generals who 
          do not otherwise qualify for consideration for promotion under 
          the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
          mandatory retirement or separation of reserve component 
          officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
          national service.
Sec. 532. Authority for phased increase to 4,400 in authorized strengths 
          for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
          participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
          participants for benefits under student loan repayment 
          program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
          Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
          awarded for Operation Frequent Wind to Vietnam Service Medal.
Sec. 543. Korea Defense Service Medal.
Sec. 544. Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
          Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
          responsible for review and correction of military records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
          as proctors for administration of Armed Services Vocational 
          Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
          the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
          Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
          military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
          enlisted personnel for rest and recuperation absence upon 
          extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
          ordered to a nonforeign duty station outside continental 
          United States.

                           Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
          separate courses of basic instruction for judge advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
          Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
          components in emergency response to the terrorist attacks of 
          September 11, 2001.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
          moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted personnel 
          occupying single Government quarters without adequate 
          availability of meals.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
          authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
          nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, 
          and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
          in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
          performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
          reserve service required for eligibility for retired pay for 
          non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
          extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
          living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
          program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
          limitations on claims against the Government for military 
          personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
          uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
          members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
          Bill arising from failure to participate satisfactorily in 
          military service to be considered debts owed to the United 
          States.
Sec. 643. Technical adjustments to authority for certain members to 
          transfer educational assistance under Montgomery GI Bill to 
          dependents.

                        Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
          members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
          at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
          37.

                    TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
          inpatient mental health care for medicare-eligible 
          beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote 
          locations after departure of sponsors for unaccompanied 
          assignments and eligibility of dependents of reserve component 
          members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program 
          benefits after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
          Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for 
          members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
          services contracts for the performance of health care 
          responsibilities at locations other than military medical 
          treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
          TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
          Veterans Affairs.

                           Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
          TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and 
          health care resources following domestic acts of terrorism or 
          domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
          Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
          and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
          resources.

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

              Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
          defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
          award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

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

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
          to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
          and procedures applicable to the civilian acquisition 
          workforce.
Sec. 814. Past performance given significant weight in renewal of 
          procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
          organizations or economic enterprises carrying out procurement 
          technical assistance programs in two or more service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
          and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
          requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
          survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

        Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
          negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
          defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
          contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General reviews 
          of the requirements.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
          tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services for 
          military installations.
Sec. 828. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
          resource shortfall for radiation-hardened electronics.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
          administration of duties relating to homeland defense and 
          combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
          States.

                           Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
          future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
          and joint opposing forces.

                        Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of Department 
          of Defense Consequence Management Program Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
          2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
          fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
          enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
          exposure of personnel to pecuniary liability for loss of 
          Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
          suspense accounts and resolution of certain check issuance 
          discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
          or combating terrorism programs of the Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
          reserve service.
Sec. 1022. Annual long-range plan for the construction of naval vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of a 
          Navy ship with a version of the 155-millimeter Advanced Gun 
          System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
          ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
          structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                      Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
          delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply buried 
          targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
          other weapons.

                           Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
          applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress be 
          accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations conducted 
          as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
          at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as Defense 
          Access Road.

              Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
          aircraft and aircraft parts for use in responding to oil 
          spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
          security requirements; continued applicability of expiring 
          Governmentwide information security requirements to the 
          Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities abroad.

                        Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
          legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained by 
          Department of Defense for identification of human remains.
Sec. 1064. Enhanced authority to obtain foreign language services during 
          periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
          societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
          and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women Airforce 
          Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
          of Defense program to commemorate 50th anniversary of the 
          Korean War.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
          employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum 
          severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
          eligibility.
Sec. 1104. Certification for Department of Defense professional 
          accounting positions.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
          coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
          countries participating in NATO Partnership for Peace program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
          Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
          monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
          integration of all United States nonproliferation activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
          and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
          United States and China on cooperation in science and 
          technology.
Sec. 1208. Extension of certain counterproliferation activities and 
          programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
          contributions by foreign persons to efforts by countries of 
          proliferation concern to obtain weapons of mass destruction 
          and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
          exchanges between the Armed Forces of the United States and 
          the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
          under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
          material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
          reduction in states of the former Soviet Union.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
          homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of military 
          installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in supporting 
          homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
          local first responders.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
          the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of appropriations 
          reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
          2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
          2001 projects.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
          2002 projects.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
          construction of public road near Aviano Air Base, Italy, to 
          replace road closed for force protection purposes.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 
          2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
          1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
          1997 project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
          projects.

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Modification of alternative authority for acquisition and 
          improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
          construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing construction 
          overseas.
Sec. 2805. Availability of energy cost savings realized at military 
          installations.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
          conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
          term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
          installations to be closed to persons who construct or provide 
          military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
          establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
          National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
          Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
          Virginia.

                        Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
          Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
          Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
          Quantico, and Prince William Forest Park, Virginia.

                     Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
          California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
          Nevada.

                        Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
          capacity, Marine Corps Base, Camp Lejeune, North Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
          related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
          closure list.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3141. Annual assessments and reports to the President and Congress 
          regarding the condition of the United States nuclear weapons 
          stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for resumption 
          by the United States of underground nuclear weapons tests.
Sec. 3143. Requirements for specific request for new or modified nuclear 
          weapons.
Sec. 3144. Database to track notification and resolution phases of 
          Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
          Penetrator program pending submission of report.

                    Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
          Department of Defense's Cooperative Threat Reduction program 
          relating to elimination of weapons grade plutonium production 
          in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
          programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
          protection, control, and accounting programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
          radiological, chemical, or biological weapons.
Sec. 3155. Cooperative program on research, development, and 
          demonstration of technology regarding nuclear or radiological 
          terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
          Control, and Accounting program of the Department of Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials and 
          security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
          materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
          Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
          enriched uranium and plutonium.

                        Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
          nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
          engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
          safety, and security of the United States nuclear stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
          accelerate the reduction of environmental risks and challenges 
          posed by the legacy of the Cold War.

 Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
          Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
          materials at Savannah River Site.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
          applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
          vessels.

              TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
          activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
          Department of Energy.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            (2) the Committee on Armed Services and the 
        Committee on Appropriations of the House of 
        Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources. 
Sec. 112. Report on impact of Army aviation modernization plan on the 
          Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                        Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
          destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
          Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
          fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
          pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
          and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for procurement for the Army as follows:
            (1) For aircraft, $2,186,296,000.
            (2) For missiles, $1,152,299,000.
            (3) For weapons and tracked combat vehicles, 
        $2,276,751,000.
            (4) For ammunition, $1,229,533,000.
            (5) For other procurement, $5,857,814,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 2003 for procurement for the Navy as follows:
            (1) For aircraft, $8,979,275,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,375,349,000.
            (3) For shipbuilding and conversion, 
        $9,111,023,000.
            (4) For other procurement, $4,494,754,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 2003 for procurement for the 
Marine Corps in the amount of $1,355,491,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for fiscal year 2003 for 
procurement of ammunition for the Navy and the Marine Corps in 
the amount of $1,170,750,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for procurement for the Air Force as follows:
            (1) For aircraft, $12,676,505,000.
            (2) For missiles, $3,504,139,000.
            (3) For ammunition, $1,290,764,000.
            (4) For other procurement, $10,846,048,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for Defense-wide procurement in the amount of 
$3,691,604,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for procurement for the Inspector General of the 
Department of Defense in the amount of $2,000,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for fiscal 
year 2003 the amount of $1,490,199,000 for--
            (1) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for the Department of Defense for procurement for 
carrying out health care programs, projects, and activities of 
the Department of Defense in the total amount of $278,742,000.

                       Subtitle B--Army Programs

SEC. 111. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES 
                    OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT 
                    REGARD TO AVAILABILITY FROM DOMESTIC SOURCES.

    (a) Extension of Program.--Subsection (a) of section 141 of 
the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85; 10 U.S.C. 4543 note) is amended by striking 
``through 2002'' in the first sentence and inserting ``through 
2004''.
    (b) Use of Overhead Funds Made Surplus by Sales.--Such 
section is further amended--
            (1) by striking subsection (d);
            (2) by redesignating subsection (c) as subsection 
        (d); and
            (3) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c) Transfer of Certain Sums.--For each Army industrial 
facility participating in the pilot program that sells 
manufactured articles and services in a total amount in excess 
of $20,000,000 in any fiscal year, the amount equal to one-half 
of one percent of such total amount shall be transferred from 
the sums in the Army Working Capital Fund for unutilized plant 
capacity to appropriations available for the following fiscal 
year for the demilitarization of conventional ammunition by the 
Army.''.
    (c) Update of Inspector General's Review.--The Inspector 
General of the Department of Defense shall review the 
experience under the pilot program carried out under such 
section 141 and, not later than July 1, 2003, submit to 
Congress a report on the results of the review. The report 
shall contain the views, information, and recommendations 
called for under subsection (d) of such section (as 
redesignated by subsection (b)(2)). In carrying out the review 
and preparing the report, the Inspector General shall take into 
consideration the report submitted to Congress under such 
subsection (as so redesignated).

SEC. 112. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION PLAN ON THE 
                    ARMY NATIONAL GUARD.

    (a) Report by Chief of the National Guard Bureau.--The 
Chief of the National Guard Bureau shall submit to the Chief of 
Staff of the Army a report on the requirements for Army 
National Guard aviation. The report shall include the 
following:
            (1) An analysis of the impact of the Army Aviation 
        Modernization Plan on the ability of the Army National 
        Guard to conduct its aviation missions.
            (2) The plan under that aviation modernization plan 
        for the transfer of aircraft from the active component 
        of the Army to the Army reserve components, including a 
        timeline for those transfers.
            (3) The progress, as of January 1, 2003, in 
        carrying out the transfers under the plan referred to 
        in paragraph (2).
            (4) An evaluation of the suitability and cost 
        effectiveness of existing Commercial Off The Shelf 
        light utility helicopters for performance of Army 
        National Guard utility aviation missions.
    (b) Comments and Recommendations by Chief of Staff of the 
Army.--Not later than February 1, 2003, the Chief of Staff of 
the Army shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives the report received under subsection (a), 
together with any comments and recommendations that the Chief 
of Staff considers appropriate on the matters covered in the 
report.

SEC. 113. FAMILY OF MEDIUM TACTICAL VEHICLES.

    (a) Multiyear Procurement Authority.--Beginning with the 
fiscal year 2003 program year, the Secretary of the Army may, 
in accordance with section 2306b of title 10, United States 
Code, enter into a multiyear contract for the procurement of 
vehicles under the Family of Medium Tactical Vehicles program, 
subject to subsection (b).
    (b) Limitation.--The Secretary of the Army may not enter 
into a multiyear contract for the procurement of vehicles in 
the Family of Medium Tactical Vehicles authorized by subsection 
(a) until the Secretary submits to the congressional defense 
committees a written certification that--
            (1) all key performance parameters required in the 
        initial operational test and evaluation for that 
        program have been met; and
            (2) the total cost through the use of such 
        multiyear contract of the procurement of the number of 
        vehicles to be procured under such contract is at least 
        10 percent less than the total cost of the procurement 
        of the same number of such vehicles through the use of 
        successive one-year contracts.
    (c) Waiver Authority.--The Secretary of Defense may waive 
subsection (b)(2) if the Secretary--
            (1) determines that using a multiyear contract for 
        the procurement of vehicles under the Family of Medium 
        Tactical Vehicles program is in the national security 
        interests of the United States;
            (2) certifies that the Army cannot achieve the 
        savings specified in subsection (b)(2); and
            (3) submits to the congressional defense 
        committees, in writing, a notification of the waiver 
        together with a report describing the reasons why the 
        use of a multiyear contract for such procurement is in 
        the national security interests of the United States 
        and why the Army cannot achieve a 10 percent savings of 
        the total anticipated costs of carrying out the program 
        through a multiyear contract.

                       Subtitle C--Navy Programs

SEC. 121. EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR DDG-51 CLASS 
                    DESTROYERS.

    Section 122(b) of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2446), as 
amended by section 122 of Public Law 106-65 (113 Stat. 534) and 
section 122(a) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-24), is further amended by 
striking ``October 1, 2005'' in the first sentence and 
inserting ``October 1, 2007''.

SEC. 122. SENSE OF CONGRESS ON SCOPE OF CONVERSION PROGRAM FOR 
                    TICONDEROGA-CLASS CRUISERS.

    It is the sense of Congress that the Secretary of the Navy 
should maintain the scope of the conversion program for the 
Ticonderoga class of cruisers so that the program--
            (1) covers all 27 ships in that class of cruisers; 
        and
            (2) provides for modernizing each of those ships to 
        include an appropriate mix of upgrades to ships' 
        capabilities for theater missile defense, naval fire 
        support, and air dominance.

SEC. 123. CONTINUATION OF CONTRACT FOR OPERATION OF CHAMPION-CLASS T-5 
                    FUEL TANKER VESSELS.

    The Department of the Navy contract in effect on the date 
of the enactment of this Act for the operation of five 
Champion-class T-5 fuel tanker vessels shall continue in effect 
with respect to the operation of each such vessel until the 
completion of the term of the contract or, if sooner for any 
such vessel, until the vessel is no longer used for purposes of 
the Military Sealift Command or any other Navy purpose.

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-130J AIRCRAFT PROGRAM.

    (a) Multiyear Authority.--Beginning with the fiscal year 
2003 program year, the Secretary of the Air Force may, in 
accordance with section 2306b of title 10, United States Code, 
enter into a multiyear contract for procurement of up to 40 C-
130J aircraft in the CC-130J configuration and up to 24 C-130J 
aircraft in the KC-130J configuration. Notwithstanding 
subsection (k) of such section, such a contract may be for a 
period of six program years.
    (b) Limitation.--The Secretary of the Air Force may not 
enter into a contract authorized by subsection (a) until--
            (1) testing of the CC-130J aircraft for 
        qualification for use in assault operations has been 
        completed by the Air Force Flight Test Center; and
            (2) Block 5.3 software upgrades have been installed 
        on all C-130J and CC-130J aircraft in the inventory of 
        the Air Force.

SEC. 132. PATHFINDER PROGRAMS.

    (a) Pathfinder Programs.--Not later than February 1, 2003, 
the Secretary of the Air Force shall submit to the 
congressional defense committees a list of Air Force programs 
that the Secretary has designated as acquisition reform 
pathfinder programs (hereinafter in this section referred to as 
``pathfinder programs'').
    (b) Oversight of Pathfinder Programs.--The Secretary of 
Defense shall ensure that the Under Secretary of Defense for 
Acquisition, Technology and Logistics, the Director of 
Operational Test and Evaluation, and the Joint Requirements 
Oversight Council maintain oversight over each pathfinder 
program that qualifies as a major defense acquisition program 
under section 2430 of title 10, United States Code.
    (c) Report on Pathfinder Programs.--(1) Not later than 
March 15, 2003, the Secretary of the Air Force shall submit to 
the congressional defense committees a report on pathfinder 
programs. For each such program, the report shall include a 
description of the following:
            (A) The management approach for that program and 
        how that approach will result in a disciplined, 
        affordable and well-managed acquisition program.
            (B) The acquisition strategy for that program and 
        how that acquisition strategy responds to approved 
        operational requirements.
            (C) The test and evaluation plan for that program 
        and how that plan will provide adequate assessment of 
        each pathfinder program.
            (D) The manner in which the acquisition plan for 
        that program considers cost, schedule, and technical 
        risk.
            (E) The manner in which any innovative business 
        practices developed as a result of participation in the 
        program could be applied to other acquisition programs, 
        and any impediments to application of such practices to 
        other programs.
    (2) For each such program, the report shall also set forth 
the following:
            (A) The manner in which the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics will 
        be involved in the development, oversight, and approval 
        of the program's management approach, acquisition 
        strategy, and acquisition approach.
            (B) The manner in which the Director of Operational 
        Test and Evaluation will be involved in the 
        development, oversight, and approval of the program's 
        test and evaluation plan.
            (C) The manner in which an independent cost 
        estimate for the program will be developed by the 
        Office of the Secretary of Defense.
    (d) Applicability of Spiral Development Section.--Nothing 
in this section shall be construed to exempt any pathfinder 
program from the application of any provision of section 
803(c).

SEC. 133. LEASES FOR TANKER AIRCRAFT UNDER MULTIYEAR AIRCRAFT-LEASE 
                    PILOT PROGRAM.

    The Secretary of the Air Force may not enter into a lease 
for the acquisition of tanker aircraft for the Air Force under 
section 8159 of the Department of Defense Appropriations Act, 
2002 (division A of Public Law 107-117; 115 Stat. 2284; 10 
U.S.C. 2401a note) until--
            (1) the Secretary submits the report specified in 
        subsection (c)(6) of such section; and
            (2) either--
                    (A) authorization and appropriation of 
                funds necessary to enter into such lease are 
                provided by law; or
                    (B) a new start reprogramming notification 
                for the funds necessary to enter into such 
                lease has been submitted in accordance with 
                established procedures.

                       Subtitle E--Other Programs

SEC. 141. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS 
                    AND MUNITIONS.

    (a) Program Management.--The Secretary of Defense shall 
ensure that the program for destruction of the United States 
stockpile of lethal chemical agents and munitions is managed as 
a major defense acquisition program (as defined in section 2430 
of title 10, United States Code) in accordance with the 
essential elements of such programs as may be determined by the 
Secretary.
    (b) Requirement for Under Secretary of Defense 
(Comptroller) Annual Certification.--Beginning with respect to 
the budget request for fiscal year 2004, the Under Secretary of 
Defense (Comptroller) shall submit to the congressional defense 
committees on an annual basis a certification that the budget 
request for the chemical agents and munitions destruction 
program has been submitted in accordance with the requirements 
of section 1412 of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521).

SEC. 142. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

    (a) Report.--Not later than January 1, 2003, the Secretary 
of Defense shall submit to Congress a report on unmanned aerial 
vehicle systems of the Department of Defense.
    (b) Matters To Be Included Concerning Unmanned Aerial 
Vehicle Systems.--The Secretary shall include in the report 
under subsection (a) the following, shown for each system 
referred to in that subsection:
            (1) A description of the infrastructure that the 
        Department of Defense has (or is planning) for the 
        system.
            (2) A description of the operational requirements 
        document (ORD) for the system.
            (3) A description of the physical infrastructure of 
        the Department for training and basing.
            (4) A description of the manner in which the 
        Department is interfacing with the industrial base.
            (5) A description of the acquisition plan for the 
        system.
            (6) A description of the process by which the 
        Department will ensure that any unmanned aerial vehicle 
        program proceeding past the science and technology 
        stage does so only as part of an integrated, overall 
        Office of the Secretary of Defense strategy for 
        acquisition of unmanned aerial vehicles, such as that 
        provided in the approved Office of the Secretary of 
        Defense unmanned aerial vehicle roadmap.
    (c) Suggestions for Changes in Law.--The Secretary shall 
also include in the report under subsection (a) such 
suggestions as the Secretary considers appropriate for changes 
in law that would facilitate the way the Department acquires 
unmanned aerial vehicle systems.

SEC. 143. GLOBAL INFORMATION GRID SYSTEM.

    None of the funds authorized to be appropriated by this Act 
for the Department of Defense system known as the Global 
Information Grid may be obligated until the Secretary of 
Defense submits to the congressional defense committees a plan 
to provide that, as part of the bandwidth expansion efforts for 
the system, the system will be designed and configured so as to 
ensure that information transmitted within the system is secure 
and protected from unauthorized access.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Defense health programs.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
          responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
          Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the objective 
          force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
          Systems non-line-of-sight cannon indirect fire capability for 
          the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
          program.
Sec. 218. Littoral combat ship program.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
          programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
          development, test, and evaluation related to system 
          improvements of programs transferred to military departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
          Area Defense Program pending submission of required life-cycle 
          cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
          Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
          Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
          interceptors.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
          facilities.
Sec. 233. Uniform financial management system for Department of Defense 
          test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                        Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
          laboratories.
Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
          contractors to submit proposals potentially beneficial for 
          combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
          Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
          advanced technology achievements and additional authority of 
          military departments and Defense Agencies to award prizes for 
          achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
          signatures intelligence capabilities of the United States 
          through incorporation of results of basic research on sensors.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for the use of the Department of Defense for 
research, development, test, and evaluation as follows:
            (1) For the Army, $7,158,256,000.
            (2) For the Navy, $13,244,164,000.
            (3) For the Air Force, $18,337,078,000.
            (4) For Defense-wide activities, $17,970,653,000, 
        of which $311,554,000 is authorized for the Director of 
        Operational Test and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2003.--Of the amounts authorized to be 
appropriated by section 201, $10,384,658,000 shall be available 
for the Defense Science and Technology Program, including basic 
research, applied research, and advanced technology development 
projects.
    (b) Basic Research, Applied Research, and Advanced 
Technology Development Defined.--For purposes of this section, 
the term ``basic research, applied research, and advanced 
technology development'' means work funded in program elements 
for defense research and development under Department of 
Defense category 6.1, 6.2, or 6.3.

SEC. 203. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for the Department of Defense for research, 
development, test, and evaluation for carrying out health care 
programs, projects, and activities of the Department of Defense 
in the total amount of $67,214,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. RAH-66 COMANCHE AIRCRAFT PROGRAM.

    (a) Reports Required.--Not later than the end of each 
fiscal quarter of fiscal year 2003, the Secretary of the Army 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on the progress of the restructured 
engineering and manufacturing development phase of the RAH-66 
Comanche aircraft program.
    (b) Content.--The report shall include, at a minimum, the 
information relating to the program that the program manager 
provides to the Assistant Secretary of the Army for 
Acquisition, Logistics, and Technology with respect to--
            (1) cost, including funding and contracts;
            (2) schedule;
            (3) performance;
            (4) which goals are being met and which are not 
        being met;
            (5) milestones events accomplished; and
            (6) significant events accomplished.

SEC. 212. EXTENSION OF REQUIREMENTS RELATING TO MANAGEMENT 
                    RESPONSIBILITY FOR NAVAL MINE COUNTERMEASURES 
                    PROGRAMS.

    (a) In General.--Section 216 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190; 105 Stat. 1317), as most recently amended by section 
211 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 1946), is 
amended--
            (1) in subsection (a), by striking ``through 2003'' 
        and inserting ``through 2008'';
            (2) in subsection (b)--
                    (A) by striking ``and'' at the end of 
                paragraph (2);
                    (B) by redesignating paragraph (3) as 
                paragraph (4); and
                    (C) by inserting after paragraph (2) the 
                following new paragraph:
            ``(3) the responsibilities of the Joint 
        Requirements Oversight Council under subsections (b) 
        and (d) of section 181 of title 10, United States Code, 
        have been carried out with respect to the updated mine 
        countermeasures master plan, the budget resources for 
        mine countermeasures for that fiscal year, and the 
        future years defense program for mine countermeasures; 
        and''; and
            (3) by adding at the end the following new 
        subsection:
    ``(c) Notification of Proposed Changes.--Upon certifying 
under subsection (b) with respect to a fiscal year, the 
Secretary may not carry out any change to the naval mine 
countermeasures master plan or the budget resources for mine 
countermeasures with respect to that fiscal year until after 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics submits to the congressional defense committees a 
notification of the proposed change. Such notification shall 
describe the nature of the proposed change, the effect of the 
proposed change on the naval mine countermeasures program or 
related programs with respect to that fiscal year, and the 
effect of the proposed change on the validity of the decision 
to certify under subsection (b) with respect to that fiscal 
year.''.
    (b) Technical Amendments.--Such section is further 
amended--
            (1) in subsection (a), by striking ``Under 
        Secretary of Defense for Acquisition and Technology'' 
        and inserting ``Under Secretary of Defense for 
        Acquisition, Technology, and Logistics''; and
            (2) in subsection (b)(2)--
                    (A) by striking ``multiyear'' and inserting 
                ``future years''; and
                    (B) by striking ``section 114a'' and 
                inserting ``section 221''.

SEC. 213. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING TECHNOLOGY 
                    PROGRAM.

    (a) Streamlined Contents of Plan.--Subsection (e) of 
section 2521 of title 10, United States Code, is amended by 
striking ``prepare a five-year plan'' in paragraph (1) and all 
that follows through the end of subparagraph (B) of paragraph 
(2) and inserting the following: ``prepare and maintain a five-
year plan for the program.
    ``(2) The plan shall establish the following:
            ``(A) The overall manufacturing technology 
        objectives, milestones, priorities, and investment 
        strategy for the program.
            ``(B) The specific objectives of, and funding for 
        the program by, each military department and each 
        Defense Agency participating in the program.''.
    (b) Biennial Report.--Such subsection is further amended in 
paragraph (3)--
            (1) by striking ``annually'' and inserting 
        ``biennially''; and
            (2) by striking ``for a fiscal year'' and inserting 
        ``for each even-numbered fiscal year''.

SEC. 214. ADVANCED SEAL DELIVERY SYSTEM.

    (a) Transfer of Funds.--To the extent provided in 
appropriations Acts, the amount described in subsection (b) 
shall be transferred to amounts available for fiscal year 2003 
for research, development, test, and evaluation, Defense-Wide, 
and shall be available only for research, development, test, 
and evaluation relating to the Advanced SEAL Delivery System.
    (b) Amount To Be Transferred.--The amount referred to in 
subsection (a) is the amount of $13,700,000 that was authorized 
and appropriated for fiscal year 2002 for procurement of the 
Advanced SEAL Delivery System within amounts for Procurement, 
Defense-Wide.
    (c) Transfer Authority in Addition to Other Authority.--The 
transfer authority provided by this section is in addition to 
any other transfer authority provided by law.

SEC. 215. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF THE 
                    OBJECTIVE FORCE.

    (a) Requirement for Report.--Not later than March 31, 2003, 
the Secretary of the Army shall submit to Congress a report on 
the experimentation program regarding design of the objective 
force that is required by subsection (g) of section 113 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001, as added by section 113 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1029).
    (b) Budget Display.--Amounts provided for the 
experimentation program in the budget for fiscal year 2004 that 
is submitted to Congress under section 1105(a) of title 31, 
United States Code, shall be displayed as a distinct program 
element in that budget and in the supporting documentation 
submitted to Congress by the Secretary of Defense.

SEC. 216. PROGRAM TO PROVIDE ARMY WITH SELF-PROPELLED FUTURE COMBAT 
                    SYSTEMS NON-LINE-OF-SIGHT CANNON INDIRECT FIRE 
                    CAPABILITY FOR THE OBJECTIVE FORCE.

    (a) Program Required.--The Secretary of Defense shall carry 
out a program to provide the Army, not later than fiscal year 
2008, with a self-propelled Future Combat Systems non-line-of-
sight cannon indirect fire capability to equip the objective 
force.
    (b) Report.--(1) The Secretary shall submit to the 
congressional defense committees, at the same time that the 
President submits the budget for a fiscal year referred to in 
paragraph (2) to Congress under section 1105(a) of title 31, 
United States Code, a report on the investments proposed to be 
made with respect to non-line-of-sight indirect fire programs 
for the Army. The report shall--
            (A) identify the amount proposed for expenditures 
        for the Crusader artillery system program for that 
        fiscal year in the future-years defense program that 
        was submitted to Congress in 2002 under section 221 of 
        title 10, United States Code; and
            (B) specify--
                    (i) the manner in which the amount provided 
                in that budget would be expended for improved 
                non-line-of-sight indirect fire capabilities 
                for the Army; and
                    (ii) the extent to which expending such 
                amount in such manner would improve such 
                capabilities for the Army.
    (2) The requirement to submit a report under paragraph (1) 
shall apply with respect to budgets for fiscal years 2004, 
2005, 2006, 2007, and 2008.
    (c) Objective Force Defined.--In this section, the term 
``objective force'' has the meaning given such term in section 
113(f)(2) of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (as enacted into law by Public Law 
106-398; 114 Stat. 1654A-24).
    (d) Funding.--Of the amount authorized to be appropriated 
by section 201(1) for the Army for research, development, test, 
and evaluation, $368,500,000 shall be used only to develop and 
field a self-propelled Future Combat Systems non-line-of-sight 
cannon indirect fire artillery system and a resupply vehicle 
with respect to such system.

SEC. 217. PROHIBITION ON TRANSFER OF MEDICAL FREE ELECTRON LASER 
                    PROGRAM.

    The Medical Free Electron Laser Program (PE 0602227D8Z) may 
not be transferred from the Department of Defense to the 
National Institutes of Health, or to any other department or 
agency of the Federal Government.

SEC. 218. LITTORAL COMBAT SHIP PROGRAM.

    (a) Amount for Program.--Of the amount authorized to be 
appropriated by section 201(2) for research, development, test, 
and evaluation, Navy, $4,000,000 may be available in program 
element 0603563N, relating to Ship Concept Advanced Design, for 
requirements development for the littoral combat ship.
    (b) Limitation on Obligation of Funds.--The Secretary of 
the Navy may not obligate any funds for the construction of a 
littoral combat ship until after the Secretary submits the 
report required by subsection (c).
    (c) Report on Milestone A Plan and Schedule.--(1) The 
Secretary of the Navy shall submit to the congressional defense 
committees, at the same time that the President submits the 
budget for fiscal year 2004 to Congress under section 1105(a) 
of title 31, United States Code, a report on development of the 
littoral combat ship.
    (2) The report shall address the plan and schedule for 
fulfilling the requirements of Department of Defense 
Instruction 5000-series for a major defense acquisition 
Milestone A decision for initiation of concept and technology 
development for the littoral combat ship, including the 
following such requirements:
            (A) Consideration of technology issues.
            (B) Market research.
            (C) Validated mission need statement.
            (D) Analysis of multiple concepts.
            (E) Test and evaluation master plan (evaluation 
        strategy only).
            (F) Exit criteria.
            (G) Acquisition decision memorandum.
    (3) The report shall include a discussion of the 
Secretary's acquisition strategy for development of the 
littoral combat ship.
    (d) Requirements for Acquisition Strategy.--The Secretary 
shall ensure that the acquisition strategy for development of 
the littoral combat ship includes the following:
            (1) A concept and technology demonstration phase 
        that is robust and, in a manner and on a schedule that 
        will inform the Navy's decisions on the concepts, 
        technologies, and capabilities to be incorporated into 
        the initial design of the littoral combat ship and into 
        follow-on designs, capitalizes upon ongoing and planned 
        experiments, demonstrations, and evaluations of--
                    (A) existing, prototype, and experimental 
                hull forms and platforms, including the hull 
                forms and platforms relating to--
                            (i) the Coastal Waters Interdiction 
                        Platform;
                            (ii) the Hybrid Deep Vee 
                        Demonstrator;
                            (iii) the Littoral Support Craft 
                        (Experimental);
                            (iv) the High Speed Vessel;
                            (v) surface effects ships;
                            (vi) Research Vessel Triton;
                            (vii) the SLICE ship;
                            (viii) other existing, prototype, 
                        and experimental craft that the 
                        Secretary considers to be appropriate; 
                        and
                            (ix) other existing ships capable 
                        of carrying the desired payload 
                        packages;
                    (B) ship and combat systems components;
                    (C) command, control, and communications 
                systems;
                    (D) intelligence, surveillance, and 
                reconnaissance systems;
                    (E) weapons systems; and
                    (F) support systems.
            (2) A description of the experiments, 
        demonstrations, and evaluations that are needed for 
        support of design and development decisionmaking for 
        mission modules to be employed on the littoral combat 
        ship, including the mission modules for--
                    (A) anti-submarine warfare;
                    (B) mine countermeasures;
                    (C) anti-ship defense; and
                    (D) any other missions that may be 
                envisioned for the ship.
            (3) An identification of the experiments, 
        demonstrations, and evaluations that would need to be 
        accomplished during the concept and technology 
        demonstration phase and those that would need to be 
        accomplished during the system development and 
        demonstration phase (after a major defense acquisition 
        Milestone B decision to enter that phase).
            (4) A description of the potential trade-offs 
        between program requirements and capabilities, and the 
        methodology (including life cycle cost as an 
        independent variable, speed as an independent variable, 
        and other applicable program attributes), needed to 
        arrive at a design for a littoral combat ship that can 
        be approved (pursuant to a major defense acquisition 
        Milestone B decision) for entry into the system 
        development and demonstration phase.
            (5) An analysis of the adequacy of existing and 
        planned platforms to test the littoral ship concept 
        prior to construction of a littoral combat ship.

                 Subtitle C--Ballistic Missile Defense

SEC. 221. REPORT REQUIREMENTS RELATING TO BALLISTIC MISSILE DEFENSE 
                    PROGRAMS.

    (a) Annual Submission of Current Performance Goals and 
Development Baselines.--(1) The Secretary of Defense shall 
submit to the congressional defense committees each year the 
performance goals and development baselines--
            (A) for those ballistic missile defense systems 
        under development by the Missile Defense Agency that 
        could be fielded; and
            (B) for any other ballistic missile defense program 
        or project that has been designated by Congress as a 
        special interest item.
    (2) Such performance goals and development baselines shall 
be provided for each block of each such system.
    (3) The performance goals and development baselines under 
paragraph (1) shall be included annually with the defense 
budget justification materials submitted in support of the 
President's budget submitted to Congress under section 1105 of 
title 31, United States Code.
    (b) RDT&E Budget Justification Materials.--The budget 
justification materials submitted to Congress for any fiscal 
year in support of a request for the authorization and 
appropriation of funds for research, development, test, and 
evaluation for ballistic missile defense systems shall include 
a funding profile for each block of each such system that could 
be fielded that reflects the development baseline submitted 
pursuant to subsection (a) for that fiscal year.
    (c) Review of MDA Criteria in Relation to Military 
Requirements.--(1) The Joint Requirements Oversight Council 
established under section 181 of title 10, United States Code, 
shall review cost, schedule, and performance criteria for 
missile defense programs of the Missile Defense Agency in order 
to assess the validity of those criteria in relation to 
military requirements.
    (2) The Secretary shall include the results of such review 
with the first annual statement of program goals submitted to 
the congressional defense committees under section 232(c) of 
the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 10 U.S.C. 2431 note) after the date of the 
enactment of this Act.

SEC. 222. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR RESEARCH, 
                    DEVELOPMENT, TEST, AND EVALUATION RELATED TO SYSTEM 
                    IMPROVEMENTS OF PROGRAMS TRANSFERRED TO MILITARY 
                    DEPARTMENTS.

    Section 224(e) of title 10, United States Code, is 
amended--
            (1) by striking ``before a'' and inserting ``for 
        each'';
            (2) by striking ``is''; and
            (3) by striking ``roles and responsibilities'' and 
        all that follows through the period at the end and 
        inserting ``responsibility for research, development, 
        test, and evaluation related to system improvements for 
        that program remains with the Director.''.

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS FOR THEATER HIGH ALTITUDE 
                    AREA DEFENSE PROGRAM PENDING SUBMISSION OF REQUIRED 
                    LIFE-CYCLE COST INFORMATION.

    (a) Limitation Pending Submission of Certification.--Not 
more than 85 percent of the amount specified in subsection (b) 
may be obligated until the Secretary of Defense submits to the 
congressional defense committees the estimated total life-cycle 
cost of the Theater High Altitude Area Defense (THAAD) program 
as required for programs in engineering and manufacturing 
development by section 232(d) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 
U.S.C. 2431 note).
    (b) Funds Subject to Limitation.--Subsection (a) applies to 
the amount authorized to be appropriated for fiscal year 2003 
for the Missile Defense Agency for the Theater High Altitude 
Area Defense (THAAD) program.

SEC. 224. PROVISION OF INFORMATION ON FLIGHT TESTING OF GROUND-BASED 
                    MIDCOURSE NATIONAL MISSILE DEFENSE SYSTEM.

    (a) Information To Be Furnished to Congressional 
Committees.--The Director of the Missile Defense Agency shall 
provide to the congressional defense committees information on 
the results of each flight test of the Ground-based Midcourse 
national missile defense system.
    (b) Content.--Information provided under subsection (a) on 
the results of a flight test shall include the following 
matters:
            (1) A thorough discussion of the content and 
        objectives of the test.
            (2) For each such test objective, a statement 
        regarding whether or not the objective was achieved.
            (3) For any such test objective not achieved--
                    (A) a thorough discussion describing the 
                reasons that the objective was not achieved; 
                and
                    (B) a discussion of any plans for future 
                tests to achieve that objective.

SEC. 225. REFERENCES TO NEW NAME FOR BALLISTIC MISSILE DEFENSE 
                    ORGANIZATION.

    (a) In General.--Any reference to the Ballistic Missile 
Defense Organization in any provision of law, regulation, map, 
document, record, or other paper of the United States shall be 
considered to be a reference to the Missile Defense Agency.
    (b) Conforming Amendments.--(1) Title 10, United States 
Code, is amended as follows:
            (A) Sections 203, 223, and 224 are each amended by 
        striking ``Ballistic Missile Defense Organization'' 
        each place it appears and inserting ``Missile Defense 
        Agency''.
            (B)(i) The heading for section 203 is amended to 
        read as follows:

``Sec. 203. Director of Missile Defense Agency''.

            (ii) The item relating to section 203 in the table 
        of sections at the beginning of subchapter II of 
        chapter 8 is amended to read as follows:

``203. Director of Missile Defense Agency.''.

    (2) The National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107) is amended as follows:
            (A) Sections 232 (115 Stat. 1037; 10 U.S.C. 2431 
        note), 233 (115 Stat. 1039), and 235 (115 Stat. 1041) 
        are each amended by striking ``Ballistic Missile 
        Defense Organization'' each place it appears and 
        inserting ``Missile Defense Agency''.
            (B) The heading for section 232 is amended to read 
        as follows:

``SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.''.

    (3) Section 3132 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-455; 10 U.S.C. 2431 note) 
is amended--
            (A) by striking ``Ballistic Missile Defense 
        Organization'' each place it appears and inserting 
        ``Missile Defense Agency'';
            (B) in subsection (c), by striking ``BMDO'' and 
        inserting ``MDA''; and
            (C) by amending the heading to read as follows:

``SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR SECURITY 
                    ADMINISTRATION AND MISSILE DEFENSE AGENCY.''.

    (4) The following provisions are each amended by striking 
``Ballistic Missile Defense Organization'' each place it 
appears and inserting ``Missile Defense Agency'':
            (A) Section 233 of the National Defense 
        Authorization Act for Fiscal Year 1998 (Public Law 105-
        85; 10 U.S.C. 223 note).
            (B) Section 243 of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 10 U.S.C. 2431 note).

SEC. 226. ONE-YEAR LIMITATION ON USE OF FUNDS FOR NUCLEAR ARMED 
                    INTERCEPTORS.

    (a) Limitation.--None of the funds described in subsection 
(b) may be obligated for research, development, test, or 
evaluation, or for procurement, of a nuclear armed interceptor 
as a component of a missile defense system.
    (b) Covered Funds.--Subsection (a) applies to funds made 
available to the Department of Defense pursuant to an 
authorization of appropriations in this title or title I or to 
the Department of Energy pursuant to an authorization of 
appropriations in title XXXI.

   Subtitle D--Improved Management of Department of Defense Test and 
                         Evaluation Facilities

SEC. 231. DEPARTMENT OF DEFENSE TEST RESOURCE MANAGEMENT CENTER.

    (a) Establishment.--(1) Subchapter I of chapter 8 of title 
10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 196. Department of Defense Test Resource Management Center

    ``(a) Establishment as Department of Defense Field 
Activity.--The Secretary of Defense shall establish within the 
Department of Defense under section 191 of this title a 
Department of Defense Test Resource Management Center 
(hereinafter in this section referred to as the `Center'). The 
Secretary shall designate the Center as a Department of Defense 
Field Activity.
    ``(b) Director and Deputy Director.--(1) At the head of the 
Center shall be a Director, selected by the Secretary from 
among commissioned officers of the armed forces on active duty. 
The Director, while so serving, holds the grade of lieutenant 
general or, in the case of an officer of the Navy, vice 
admiral.
    ``(2) There shall be a Deputy Director of the Center, 
selected by the Secretary from among senior civilian officers 
and employees of the Department of Defense who have substantial 
experience in the field of test and evaluation. The Deputy 
Director shall act for, and exercise the powers of, the 
Director when the Director is disabled or the position of 
Director is vacant.
    ``(c) Duties of Director.--The Director shall have the 
following duties:
            ``(1) To review and provide oversight of proposed 
        Department of Defense budgets and expenditures for--
                    ``(A) the test and evaluation facilities 
                and resources of the Major Range and Test 
                Facility Base of the Department of Defense; and
                    ``(B) all other test and evaluation 
                facilities and resources within and outside of 
                the Department of Defense.
            ``(2) To complete and maintain the strategic plan 
        required by subsection (d).
            ``(3) To review proposed budgets under subsection 
        (e) and submit reports and certifications required by 
        such subsection.
            ``(4) To administer the Central Test and Evaluation 
        Investment Program and the program of the Department of 
        Defense for test and evaluation science and technology.
    ``(d) Strategic Plan for Department of Defense Test and 
Evaluation Resources.--(1) Not less often than once every two 
fiscal years, the Director, in coordination with the Director 
of Operational Test and Evaluation, the Secretaries of the 
military departments, and the heads of Defense Agencies with 
test and evaluation responsibilities, shall complete a 
strategic plan reflecting the needs of the Department of 
Defense with respect to test and evaluation facilities and 
resources. Each such strategic plan shall cover the period of 
ten fiscal years beginning with the fiscal year in which the 
plan is submitted under paragraph (3). The strategic plan shall 
be based on a comprehensive review of the test and evaluation 
requirements of the Department and the adequacy of the test and 
evaluation facilities and resources of the Department to meet 
those requirements.
    ``(2) The strategic plan shall include the following:
            ``(A) An assessment of the test and evaluation 
        requirements of the Department for the period covered 
        by the plan.
            ``(B) An identification of performance measures 
        associated with the successful achievement of test and 
        evaluation objectives for the period covered by the 
        plan.
            ``(C) An assessment of the test and evaluation 
        facilities and resources that will be needed to meet 
        such requirements and satisfy such performance 
        measures.
            ``(D) An assessment of the current state of the 
        test and evaluation facilities and resources of the 
        Department.
            ``(E) An itemization of acquisitions, upgrades, and 
        improvements necessary to ensure that the test and 
        evaluation facilities and resources of the Department 
        are adequate to meet such requirements and satisfy such 
        performance measures.
            ``(F) An assessment of the budgetary resources 
        necessary to implement such acquisitions, upgrades, and 
        improvements.
    ``(3) Upon completing a strategic plan under paragraph (1), 
the Director shall submit to the Secretary of Defense a report 
on that plan. The report shall include the plan and a 
description of the review on which the plan is based.
    ``(4) Not later than 60 days after the date on which the 
report is submitted under paragraph (3), the Secretary of 
Defense shall transmit to the Committee on Armed Services and 
Committee on Appropriations of the Senate and the Committee on 
Armed Services and Committee on Appropriations of the House of 
Representatives the report, together with any comments with 
respect to the report that the Secretary considers appropriate.
    ``(e) Certification of Budgets.--(1) The Secretary of 
Defense, acting through the Under Secretary of Defense 
(Comptroller), shall require that the Secretary of each 
military department, the Director of Operational Test and 
Evaluation, and the head of each Defense Agency with test and 
evaluation responsibilities transmit such Secretary's, 
Director's, or head's proposed budget for test and evaluation 
activities for a fiscal year to the Director of the Center for 
review under paragraph (2) before submitting such proposed 
budget to the Under Secretary of Defense (Comptroller).
    ``(2)(A) The Director of the Center shall review each 
proposed budget transmitted under paragraph (1) and shall, not 
later than January 31 of the year preceding the fiscal year for 
which such budgets are proposed, submit to the Secretary of 
Defense a report containing the comments of the Director with 
respect to all such proposed budgets, together with the 
certification of the Director as to whether such proposed 
budgets are adequate.
    ``(B) The Director shall also submit, together with such 
report and such certification, an additional certification as 
to whether such proposed budgets provide balanced support for 
such strategic plan.
    ``(3) The Secretary of Defense shall, not later than March 
31 of the year preceding the fiscal year for which such budgets 
are proposed, submit to Congress a report on those proposed 
budgets which the Director has not certified under paragraph 
(2)(A) to be adequate. The report shall include the following 
matters:
            ``(A) A discussion of the actions that the 
        Secretary proposes to take, together with any 
        recommended legislation that the Secretary considers 
        appropriate, to address the inadequacy of the proposed 
        budgets.
            ``(B) Any additional comments that the Secretary 
        considers appropriate regarding the inadequacy of the 
        proposed budgets.
    ``(f) Supervision of Director by Under Secretary.--The 
Director of the Center shall be subject to the supervision of 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics. The Director shall report directly to the Under 
Secretary, without the interposition of any other supervising 
official.
    ``(g) Administrative Support of Center.--The Secretary of 
Defense shall provide the Director with administrative support 
adequate for carrying out the Director's responsibilities under 
this section. The Secretary shall provide the support out of 
the headquarters activities of the Department or any other 
activities that the Secretary considers appropriate.
    ``(h) Definition.--In this section, the term `Major Range 
and Test Facility Base' means the test and evaluation 
facilities and resources that are designated by the Director of 
Operational Test and Evaluation as facilities and resources 
comprising the Major Range and Test Facility Base.''.
    (2) The table of sections at the beginning of such 
subchapter is amended by adding at the end the following new 
item:

``196. Department of Defense Test Resource Management Center.''.

    (b) First Strategic Plan.--The first strategic plan 
required to be completed under subsection (d)(1) of section 196 
of title 10, United States Code (as added by subsection (a)), 
shall be completed not later than six months after the date of 
the enactment of this Act.
    (c) Administration of CTEIP and DOD T&E S&T Programs.--The 
duty of the Director of the Department of Defense Test Resource 
Management Center to administer the programs specified in 
subsection (c)(4) of section 196 of title 10, United States 
Code (as added by subsection (a)), shall take effect, and such 
programs shall be placed under control of such Director, upon 
the beginning of the first fiscal year that begins after the 
report on the first strategic plan referred to subsection (b) 
is transmitted to the congressional committees required by 
subsection (d)(4) of such section 196.

SEC. 232. OBJECTIVE FOR INSTITUTIONAL FUNDING OF TEST AND EVALUATION 
                    FACILITIES.

    (a) Funding Objective.--The Secretary of Defense shall 
establish the objective of ensuring that, by fiscal year 2006--
            (1) the institutional and overhead costs of a 
        facility or resource of a military department or 
        Defense Agency that is within the Major Range and Test 
        Facility Base are fully funded through the major test 
        and evaluation investment accounts of the military 
        department or Defense Agency, the account of the 
        Central Test and Evaluation Investment Program of the 
        Department of Defense, and other appropriate accounts 
        of the military department or Defense Agency; and
            (2) the charge to an element of the Department of 
        Defense for a use by that element of such a facility or 
        resource for testing under a particular program is not 
        more than the amount equal to the direct costs of such 
        use by that element.
    (b) Definitions.--In this section:
            (1) The term ``Major Range and Test Facility Base'' 
        means the test and evaluation facilities and resources 
        that are designated by the Director of Operational Test 
        and Evaluation as facilities and resources comprising 
        the Major Range and Test Facility Base.
            (2) The term ``institutional and overhead costs'', 
        with respect to a facility or resource within the Major 
        Range Test and Facility Base--
                    (A) means the costs of maintaining, 
                operating, upgrading, and modernizing the 
                facility or resource; and
                    (B) does not include any incremental cost 
                of operating the facility or resource that is 
                attributable to the use of the facility or 
                resource for testing under a particular 
                program.
            (3) The term ``direct costs'', with respect to a 
        facility or resource within the Major Range and Test 
        Facility Base, means those costs that are directly 
        attributable to the use of the facility or resource for 
        testing under a particular program, over and above the 
        institutional and overhead costs with respect to the 
        facility or resource.

SEC. 233. UNIFORM FINANCIAL MANAGEMENT SYSTEM FOR DEPARTMENT OF DEFENSE 
                    TEST AND EVALUATION FACILITIES.

    (a) Requirement for System.--The Secretary of Defense shall 
implement a single financial management and accounting system 
for all test and evaluation facilities of the Department of 
Defense. The Secretary shall implement such system as soon as 
practicable, and shall establish the objective that such system 
be implemented not later than September 30, 2006.
    (b) System Features.--The system required by subsection (a) 
shall be designed to achieve, at a minimum, the following 
functional objectives:
            (1) Enable managers within the Department of 
        Defense to compare the costs of carrying out test and 
        evaluation activities in the various facilities of the 
        military departments.
            (2) Enable the Secretary of Defense--
                    (A) to make prudent investment decisions; 
                and
                    (B) to reduce the extent to which 
                unnecessary costs of owning and operating test 
                and evaluation facilities of the Department of 
                Defense are incurred.
            (3) Enable the Department of Defense to track the 
        total cost of test and evaluation activities.
            (4) Comply with the financial management 
        architecture established by the Secretary.

SEC. 234. TEST AND EVALUATION WORKFORCE IMPROVEMENTS.

    (a) Report on Capabilities.--Not later than March 15, 2003, 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics shall submit to Congress a report on the capabilities 
of the test and evaluation workforce of the Department of 
Defense. The Under Secretary shall consult with the Under 
Secretary of Defense for Personnel and Readiness and the 
Director of Operational Test and Evaluation in preparing the 
report.
    (b) Requirement for Plan.--(1) The report shall contain a 
plan for taking the actions necessary to ensure that the test 
and evaluation workforce of the Department of Defense is of 
sufficient size and has the expertise necessary to timely and 
accurately identify issues of military suitability and 
effectiveness of Department of Defense systems through testing 
of the systems.
    (2) The plan shall set forth objectives for the size, 
composition, and qualifications of the workforce, and shall 
specify the actions (including recruitment, retention, and 
training) and milestones for achieving the objectives.
    (c) Additional Matters.--The report shall also include the 
following matters:
            (1) An assessment of the changing size and 
        demographics of the test and evaluation workforce, 
        including the impact of anticipated retirements among 
        the most experienced personnel over the period of five 
        fiscal years beginning with fiscal year 2003, together 
        with a discussion of the management actions necessary 
        to address the changes.
            (2) An assessment of the anticipated workloads and 
        responsibilities of the test and evaluation workforce 
        over the period of ten fiscal years beginning with 
        fiscal year 2003, together with the number and 
        qualifications of military and civilian personnel 
        necessary to carry out such workloads and 
        responsibilities.
            (3) The Under Secretary's specific plans for using 
        the demonstration authority provided in section 4308 of 
        the National Defense Authorization Act for Fiscal Year 
        1996 (Public Law 104-106; 10 U.S.C. 1701 note) and 
        other special personnel management authorities of the 
        Under Secretary to attract and retain qualified 
        personnel in the test and evaluation workforce.
            (4) Any recommended legislation or additional 
        special authority that the Under Secretary considers 
        appropriate for facilitating the recruitment and 
        retention of qualified personnel for the test and 
        evaluation workforce.
            (5) Any other matters that are relevant to the 
        capabilities of the test and evaluation workforce.

SEC. 235. COMPLIANCE WITH TESTING REQUIREMENTS.

    (a) Annual OT&E Report.--Subsection (g) of section 139 of 
title 10, United States Code, is amended by inserting after the 
fourth sentence the following: ``The report for a fiscal year 
shall also include an assessment of the waivers of and 
deviations from requirements in test and evaluation master 
plans and other testing requirements that occurred during the 
fiscal year, any concerns raised by the waivers or deviations, 
and the actions that have been taken or are planned to be taken 
to address the concerns.''.
    (b) Reorganization of Provision.--Subsection (g) of such 
section, as amended by subsection (a), is further amended--
            (1) by inserting ``(1)'' after ``(g)'';
            (2) by designating the second sentence as paragraph 
        (2);
            (3) by designating the third sentence as paragraph 
        (3);
            (4) by designating the matter consisting of the 
        fourth and fifth sentences as paragraph (4); and
            (5) by designating the sixth sentence as paragraph 
        (5).

                       Subtitle E--Other Matters

SEC. 241. PILOT PROGRAMS FOR REVITALIZING DEPARTMENT OF DEFENSE 
                    LABORATORIES.

    (a) Additional Pilot Program.--(1) The Secretary of Defense 
may carry out a pilot program to demonstrate improved 
efficiency in the performance of research, development, test, 
and evaluation functions of the Department of Defense.
    (2) Under the pilot program, the Secretary of Defense shall 
provide the director of one science and technology laboratory, 
and the director of one test and evaluation laboratory, of each 
military department with authority for the following:
            (A) To use innovative methods of personnel 
        management appropriate for ensuring that the selected 
        laboratories can--
                    (i) employ and retain a workforce 
                appropriately balanced between permanent and 
                temporary personnel and among workers with 
                appropriate levels of skills and experience; 
                and
                    (ii) effectively shape workforces to ensure 
                that the workforces have the necessary sets of 
                skills and experience to fulfill their 
                organizational missions.
            (B) To develop or expand innovative methods of 
        entering into and expanding cooperative relationships 
        and arrangements with private sector organizations, 
        educational institutions (including primary and 
        secondary schools), and State and local governments to 
        facilitate the training of a future scientific and 
        technical workforce that will contribute significantly 
        to the accomplishment of organizational missions.
            (C) To develop or expand innovative methods of 
        establishing cooperative relationships and arrangements 
        with private sector organizations and educational 
        institutions to promote the establishment of the 
        technological industrial base in areas critical for 
        Department of Defense technological requirements.
            (D) To waive any restrictions not required by law 
        that apply to the demonstration and implementation of 
        methods for achieving the objectives set forth in 
        subparagraphs (A), (B), and (C).
    (3) The Secretary may carry out the pilot program under 
this subsection at each selected laboratory for a period of 
three years beginning not later than March 1, 2003.
    (b) Relationship to Fiscal Years 1999 and 2000 
Revitalization Pilot Programs.--The pilot program under this 
section is in addition to, but may be carried out in 
conjunction with, the fiscal years 1999 and 2000 revitalization 
pilot programs.
    (c) Reports.--(1) Not later than January 1, 2003, the 
Secretary shall submit to Congress a report on the experience 
under the fiscal years 1999 and 2000 revitalization pilot 
programs in exercising the authorities provided for the 
administration of those programs. The report shall include a 
description of--
            (A) barriers to the exercise of the authorities 
        that have been encountered;
            (B) the proposed solutions for overcoming the 
        barriers; and
            (C) the progress made in overcoming the barriers.
    (2) Not later than September 1, 2003, the Secretary of 
Defense shall submit to Congress a report on the implementation 
of the pilot program under subsection (a) and the fiscal years 
1999 and 2000 revitalization pilot programs. The report shall 
include, for each such pilot program, the following:
            (A) Each laboratory selected for the pilot program.
            (B) To the extent practicable, a description of the 
        innovative methods that are to be tested at each 
        laboratory.
            (C) The criteria to be used for measuring the 
        success of each method to be tested.
    (3) Not later than 90 days after the expiration of the 
period for the participation of a laboratory in a pilot program 
referred to in paragraph (2), the Secretary of Defense shall 
submit to Congress a final report on the participation of that 
laboratory in the pilot program. The report shall include the 
following:
            (A) A description of the methods tested.
            (B) The results of the testing.
            (C) The lessons learned.
            (D) Any proposal for legislation that the Secretary 
        recommends on the basis of the experience at that 
        laboratory under the pilot program.
    (d) Extension of Authority for Other Revitalization Pilot 
Programs.--(1) Section 246(a)(4) of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261; 112 Stat. 1956; 10 U.S.C. 2358 note) is amended by 
striking ``a period of three years'' and inserting ``up to six 
years''.
    (2) Section 245(a)(4) of the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 553; 10 
U.S.C. 2358 note) is amended by striking ``a period of three 
years'' and inserting ``up to five years''.
    (e) Partnerships Under Pilot Program.--(1) The Secretary of 
Defense may authorize one or more laboratories and test centers 
participating in the pilot program under subsection (a) or in 
one of the fiscal years 1999 and 2000 revitalization pilot 
programs to enter into a cooperative arrangement (in this 
subsection referred to as a ``public-private partnership'') 
with entities in the private sector and institutions of higher 
education for the performance of work.
    (2) A competitive process shall be used for the selection 
of entities outside the Government to participate in a public-
private partnership.
    (3)(A) Not more than one public-private partnership may be 
established as a limited liability company.
    (B) An entity participating in a limited liability company 
as a party to a public-private partnership under the pilot 
program may contribute funds to the company, accept 
contributions of funds for the company, and provide materials, 
services, and use of facilities for research, technology, and 
infrastructure of the company, if it is determined under 
regulations prescribed by the Secretary of Defense that doing 
so will improve the efficiency of the performance of research, 
test, and evaluation functions of the Department of Defense.
    (f) Fiscal Years 1999 and 2000 Revitalization Pilot 
Programs Defined.--In this section, the term ``fiscal years 
1999 and 2000 revitalization pilot programs'' means--
            (1) the pilot programs authorized by section 246 of 
        the Strom Thurmond National Defense Authorization Act 
        for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
        1955; 10 U.S.C. 2358 note); and
            (2) the pilot programs authorized by section 245 of 
        the National Defense Authorization Act for Fiscal Year 
        2000 (Public Law 106-65; 113 Stat. 552; 10 U.S.C. 2358 
        note).

SEC. 242. TECHNOLOGY TRANSITION INITIATIVE.

    (a) Establishment and Conduct.--(1) Chapter 139 of title 
10, United States Code, is amended by inserting after section 
2359 the following new section:

``Sec. 2359a. Technology Transition Initiative

    ``(a) Initiative Required.--The Secretary of Defense, 
acting through the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall carry out an initiative, to be 
known as the Technology Transition Initiative (hereinafter in 
this section referred to as the `Initiative'), to facilitate 
the rapid transition of new technologies from science and 
technology programs of the Department of Defense into 
acquisition programs of the Department for the production of 
such technologies.
    ``(b) Objectives.--The objectives of the Initiative are as 
follows:
            ``(1) To accelerate the introduction of new 
        technologies into operational capabilities for the 
        armed forces.
            ``(2) To successfully demonstrate new technologies 
        in relevant environments.
    ``(c) Management of Initiative.--(1) The Under Secretary 
shall designate a senior official of the Department of Defense 
(hereinafter in this section referred to as the `Manager') to 
manage the Initiative.
    ``(2) In managing the Initiative, the Manager shall--
            ``(A) report directly to the Under Secretary; and
            ``(B) obtain advice and other assistance from the 
        Technology Transition Council established under 
        subsection (g).
    ``(3) The Manager shall--
            ``(A) in consultation with the Technology 
        Transition Council established under subsection (g), 
        identify promising technology transition projects that 
        can contribute to meeting Department of Defense 
        technology goals and requirements;
            ``(B) identify potential sponsors in the Department 
        of Defense to manage such projects; and
            ``(C) provide funds under subsection (f) for those 
        projects that are selected under subsection (d)(2).
    ``(d) Selection of Projects.--(1) The science and 
technology and acquisition executives of each military 
department and each appropriate Defense Agency and the 
commanders of the unified and specified combatant commands may 
nominate technology transition projects for implementation 
under subsection (e) and shall submit a list of the projects so 
nominated to the Manager.
    ``(2) The Manager, in consultation with the Technology 
Transition Council established under subsection (g), shall 
select projects for implementation under subsection (e) from 
among the projects on the lists submitted under paragraph (1).
    ``(e) Implementation of Projects.--For each project 
selected under subsection (d)(2), the Manager shall designate a 
military department or Defense Agency to implement the project.
    ``(f) Funding of Projects.--(1) From funds made available 
to the Manager for the Initiative, the Manager shall, subject 
to paragraphs (2) and (3), provide funds for each project 
selected under subsection (d)(2) in an amount determined by 
mutual agreement between the Manager and the acquisition 
executive of the military department or Defense Agency 
concerned.
    ``(2) The amount of funds provided to a project under 
paragraph (1) shall be not less than the amount equal to 50 
percent of the total cost of the project.
    ``(3) A project shall not be provided funds under this 
subsection for more than four fiscal years.
    ``(g) Technology Transition Council.--(1) There is a 
Technology Transition Council in the Department of Defense. The 
Council is composed of the following members:
            ``(A) The science and technology executive of each 
        military department and each Defense Agency.
            ``(B) The acquisition executive of each military 
        department.
            ``(C) The members of the Joint Requirements 
        Oversight Council.
    ``(2) The duty of the Council shall be to provide advice 
and assistance to the Manager under this section.
    ``(3) The Council shall meet not less often than 
semiannually to carry out its duty under paragraph (2).
    ``(h) Report.--Not later than March 31 of each year, the 
Under Secretary shall submit to the Committee on Armed Services 
and the Committee on Appropriations of the Senate and the 
Committee on Armed Services and the Committee on Appropriations 
of the House of Representatives a report on the activities 
carried out by the Initiative during the preceding fiscal year.
    ``(i) Definition.--In this section, the term `acquisition 
executive', with respect to a military department or Defense 
Agency, means the official designated as the senior procurement 
executive for that military department or Defense Agency for 
the purposes of section 16(3) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 414(3)).''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2359 
the following new item:

``2359a. Technology Transition Initiative.''.

    (b) Authorization of Appropriations.--Of the amount 
authorized to be appropriated under section 201(4), $25,430,000 
may be available in program element 0603826D8Z for technology 
transition activities of the Department of Defense, including 
the Technology Transition Initiative required by section 2359a 
of title 10, United States Code (as added by subsection (a)), 
the Defense Acquisition Challenge Program required by section 
2359b of title 10, United States Code (as added by section 
243), and Quick Reaction Special Projects.

SEC. 243. DEFENSE ACQUISITION CHALLENGE PROGRAM.

    (a) In General.--Chapter 139 of title 10, United States 
Code, is amended by inserting after section 2359a (as added by 
section 242) the following new section:

``Sec. 2359b. Defense Acquisition Challenge Program

    ``(a) Program Required.--(1) The Secretary of Defense, 
acting through the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall carry out a program to provide 
opportunities for the increased introduction of innovative and 
cost-saving technology in acquisition programs of the 
Department of Defense.
    ``(2) The program, to be known as the Defense Acquisition 
Challenge Program (hereinafter in this section referred to as 
the `Challenge Program'), shall provide any person or activity 
within or outside the Department of Defense with the 
opportunity to propose alternatives, to be known as challenge 
proposals, at the component, subsystem, or system level of an 
existing Department of Defense acquisition program that would 
result in improvements in performance, affordability, 
manufacturability, or operational capability of that 
acquisition program.
    ``(b) Panels.--The Under Secretary shall establish one or 
more panels of highly qualified scientists and engineers 
(hereinafter in this section referred to as `Panels') to 
provide preliminary evaluations of challenge proposals under 
subsection (c).
    ``(c) Preliminary Evaluation by Panels.--(1) Under 
procedures prescribed by the Under Secretary, a person or 
activity within or outside the Department of Defense may submit 
challenge proposals to a Panel, through the unsolicited 
proposal process or in response to a broad agency announcement.
    ``(2) The Under Secretary shall establish procedures 
pursuant to which appropriate officials of the Department of 
Defense may identify proposals submitted through the 
unsolicited proposal process as challenge proposals. The 
procedures shall provide for the expeditious referral of such 
proposals to a Panel for preliminary evaluation under this 
subsection.
    ``(3) The Under Secretary shall issue on an annual basis 
not less than one such broad agency announcement inviting 
interested parties to submit challenge proposals. Such 
announcements may also identify particular technology areas and 
acquisition programs that will be given priority in the 
evaluation of challenge proposals.
    ``(4) Under procedures established by the Under Secretary, 
a Panel shall carry out a preliminary evaluation of each 
challenge proposal submitted in response to a broad agency 
announcement, or submitted through the unsolicited proposal 
process and identified as a challenge proposal in accordance 
with paragraph (2), to determine each of the following:
            ``(A) Whether the challenge proposal has merit.
            ``(B) Whether the challenge proposal is likely to 
        result in improvements in performance, affordability, 
        manufacturability, or operational capability at the 
        component, subsystem, or system level of an acquisition 
        program.
            ``(C) Whether the challenge proposal could be 
        implemented in the acquisition program rapidly, at an 
        acceptable cost, and without unacceptable disruption to 
        the acquisition program.
    ``(5) The Under Secretary may establish procedures to 
ensure that the Challenge Program does not become an avenue for 
the repetitive submission of proposals that have been 
previously reviewed and found not to have merit.
    ``(6) If a Panel determines that a challenge proposal 
satisfies each of the criteria specified in paragraph (4), the 
person or activity submitting that challenge proposal shall be 
provided an opportunity to submit such challenge proposal for a 
full review and evaluation under subsection (d).
    ``(d) Full Review and Evaluation.--(1) Under procedures 
prescribed by the Under Secretary, for each challenge proposal 
submitted for a full review and evaluation as provided in 
subsection (c)(6), the office carrying out the acquisition 
program to which the proposal relates shall, in consultation 
with the prime system contractor carrying out such program, 
conduct a full review and evaluation of the proposal.
    ``(2) The full review and evaluation shall, independent of 
the determination of a Panel under subsection (c)(4), determine 
each of the matters specified in subparagraphs (A), (B), and 
(C) of such subsection. The full review and evaluation shall 
also include--
            ``(A) an assessment of the cost of adopting the 
        challenge proposal and implementing it in the 
        acquisition program; and
            ``(B) consideration of any intellectual property 
        issues associated with the challenge proposal.
    ``(e) Action Upon Favorable Full Review and Evaluation.--
(1) Under procedures prescribed by the Under Secretary, each 
challenge proposal determined under a full review and 
evaluation to satisfy each of the criteria specified in 
subsection (c)(4) with respect to an acquisition program shall 
be considered by the office carrying out the applicable 
acquisition program and the prime system contractor for 
incorporation into the acquisition program as a new technology 
insertion at the component, subsystem, or system level.
    ``(2) The Under Secretary shall encourage the adoption of 
each challenge proposal referred to in paragraph (1) by 
providing suitable incentives to the office carrying out the 
acquisition program and the prime system contractor carrying 
out such program.
    ``(f) Access to Technical Resources.--(1) Under procedures 
established by the Under Secretary, the technical resources of 
the laboratories, research, development, and engineering 
centers, test and evaluation activities, and other elements of 
the Department may be called upon to support the activities of 
the Challenge Program.
    ``(2) Funds available to carry out this program may be used 
to compensate such laboratories, centers, activities, and 
elements for technical assistance provided to a Panel pursuant 
to paragraph (1).
    ``(g) Elimination of Conflicts of Interest.--In carrying 
out each preliminary evaluation under subsection (c) and full 
review under subsection (d), the Under Secretary shall ensure 
the elimination of conflicts of interest.
    ``(h) Limitation on Use of Funds.--Funds made available for 
the Challenge Program may be used only for activities 
authorized by this section, and not for implementation of 
challenge proposals.
    ``(i) Annual Report.--The Under Secretary shall submit an 
annual report on the Challenge Program to Congress. The report 
shall be submitted at the same time as the President submits 
the budget for a fiscal year to Congress under section 1105(a) 
of title 31, and shall cover the conduct of the Challenge 
Program for the preceding fiscal year. The report shall include 
the number and scope of challenge proposals submitted, 
preliminarily evaluated, subjected to full review and 
evaluation, and adopted. No report is required for a fiscal 
year in which the Challenge Program is not carried out.
    ``(j) Termination of Authority.--The Secretary may not 
carry out the Challenge Program under this section after 
September 30, 2007.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2359a (as added by section 242) the 
following new item:

``2359b. Defense Acquisition Challenge Program.''.

SEC. 244. ENCOURAGEMENT OF SMALL BUSINESSES AND NONTRADITIONAL DEFENSE 
                    CONTRACTORS TO SUBMIT PROPOSALS POTENTIALLY 
                    BENEFICIAL FOR COMBATING TERRORISM.

    (a) Establishment of Outreach Program.--During fiscal years 
2003, 2004, and 2005, the Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall carry out a program of outreach to small 
businesses and nontraditional defense contractors for the 
purpose set forth in subsection (b).
    (b) Purpose.--The purpose of the outreach program is to 
provide a process for reviewing and evaluating research 
activities of, and new technologies being developed by, small 
businesses and nontraditional defense contractors that have the 
potential for meeting a defense requirement or technology 
development goal of the Department of Defense that relates to 
the mission of the Department of Defense to combat terrorism.
    (c) Goals.--The goals of the outreach program are as 
follows:
            (1) To increase efforts within the Department of 
        Defense to survey and identify research activities and 
        new technologies described in subsection (b).
            (2) To provide the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics with a source of 
        expert advice on new technologies for combating 
        terrorism.
            (3) To increase efforts to educate nontraditional 
        defense contractors on Department of Defense 
        acquisition processes, including regulations, 
        procedures, funding opportunities, military needs and 
        requirements, and technology transfer so as to 
        encourage such contractors to submit proposals 
        regarding research activities and new technologies 
        described in subsection (b).
            (4) To increase efforts to provide timely response 
        by the Department of Defense to acquisition proposals 
        (including unsolicited proposals) submitted to the 
        Department by small businesses and by nontraditional 
        defense contractors regarding research activities and 
        new technologies described in subsection (b), including 
        through the use of electronic transactions to 
        facilitate the processing of such proposals.
    (d) Review Panel.--(1) The Secretary shall appoint, under 
the outreach program, a panel for the review and evaluation of 
acquisition proposals described in subsection (c)(4).
    (2) The panel shall be composed of qualified personnel from 
the military departments, relevant Defense Agencies, industry, 
academia, and other private sector organizations.
    (3) Under procedures prescribed by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, a small 
business or nontraditional defense contractor may submit 
acquisition proposals for consideration under the program 
through the unsolicited proposal process or in response to a 
broad agency announcement. The Under Secretary shall issue on 
an annual basis not less than one such broad agency 
announcement inviting parties to submit proposals.
    (4) Under procedures prescribed by the Under Secretary, the 
panel shall review and evaluate acquisition proposals selected 
by the panel. An acquisition proposal shall be selected for 
review and evaluation if the panel determines that the 
acquisition proposal may present a unique and valuable approach 
for meeting a defense requirement or technology development 
goal of the Department of Defense that relates to the mission 
of the Department of Defense to combat terrorism. In carrying 
out its duties under this paragraph, the panel may act through 
representatives designated by the panel.
    (5) The panel shall--
            (A) not later than 60 days after the date on which 
        the panel receives an acquisition proposal described in 
        subsection (c)(4), transmit to the small business or 
        nontraditional defense contractor that submitted the 
        proposal a notification regarding whether the 
        acquisition proposal has been selected under paragraph 
        (4) for review and evaluation;
            (B) to the maximum extent practicable, complete the 
        review and evaluation of each selected acquisition 
        proposal not later than 120 days after the date on 
        which such proposal is selected under paragraph (4); 
        and
            (C) after completing the review and evaluation of 
        an acquisition proposal, transmit the results of that 
        review and evaluation to the small business or 
        nontraditional defense contractor that submitted the 
        proposal.
    (6) The Secretary shall ensure that the panel, in reviewing 
and evaluating acquisition proposals under this subsection, has 
the authority to obtain assistance, to a reasonable extent, 
from the appropriate technical resources of the laboratories, 
research, development, and engineering centers, test and 
evaluation activities, and other elements of the Department of 
Defense.
    (7) If, after completing review and evaluation of an 
acquisition proposal, the panel determines that such proposal 
represents a unique and valuable approach for meeting a defense 
requirement or technology development goal of the Department of 
Defense that relates to the mission of the Department of 
Defense to combat terrorism, the panel shall submit that 
determination to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, together with any 
recommendations that the panel considers appropriate regarding 
such proposal.
    (8) The Under Secretary of Defense for Acquisition, 
Technology, and Logistics may provide funding for acquisition 
proposals with respect to which the panel has submitted a 
determination under paragraph (7) through appropriate accounts 
of the military departments, Defense Agencies, the Small 
Business Innovative Research program, or any other acquisition 
program.
    (9) The Secretary of Defense shall ensure that a member of 
the panel has no conflict of interest with respect to the 
review and evaluation of an acquisition proposal by the panel.
    (e) Nontraditional Defense Contractor Defined.--In this 
section, the term ``nontraditional defense contractor'' means 
an entity that has not, for at least one year prior to the date 
of the enactment of this Act, entered into, or performed with 
respect to, any contract described in paragraph (1) or (2) of 
section 845(e) of the National Defense Authorization Act for 
Fiscal Year 1994 (10 U.S.C. 2371 note).

SEC. 245. VEHICLE FUEL CELL PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry 
out a program for the development of vehicle fuel cell 
technology.
    (b) Goals and Objectives.--The goals and objectives of the 
program shall be as follows:
            (1) To identify and support technological advances 
        that are necessary for the development of fuel cell 
        technology for use in vehicles of types to be used by 
        the Department of Defense.
            (2) To ensure that critical technology advances are 
        shared among the various fuel cell technology programs 
        within the Federal Government.
            (3) To maximize the leverage of Federal funds that 
        are used for the development of fuel cell technology.
    (c) Content of Program.--The program shall include--
            (1) development of vehicle propulsion technologies 
        and fuel cell auxiliary power units, together with 
        pilot projects for the demonstration of such 
        technologies, as appropriate; and
            (2) development of technologies necessary to 
        address critical issues with respect to vehicle fuel 
        cells, such as issues relating to hydrogen storage and 
        hydrogen fuel infrastructure.
    (d) Cooperation With Industry.--(1) The Secretary shall 
carry out the program in cooperation with companies selected by 
the Secretary. The Secretary shall select such companies from 
among--
            (A) companies in the automobile and truck 
        manufacturing industry;
            (B) companies in the business of supplying systems 
        and components to that industry; and
            (C) companies in any other industries that the 
        Secretary considers appropriate.
    (2) The Secretary may enter into a cooperative agreement 
with one or more companies selected under paragraph (1) to 
establish an entity for carrying out activities required by 
subsection (c).
    (3) The Secretary shall ensure that companies referred to 
in paragraph (1) collectively contribute, in cash or in kind, 
not less than one-half of the total cost of carrying out the 
program under this section.
    (e) Coordination With Other Federal Agencies.--The 
Secretary shall carry out the program using a coordinating 
mechanism for sharing information and resources with the 
Department of Energy and other Federal agencies.
    (f) Initial Funding.--Of the funds authorized to be 
appropriated by section 201(4), $10,000,000 shall be available 
for the program required by this section.

SEC. 246. DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry 
out a defense nanotechnology research and development program.
    (b) Purposes.--The purposes of the program are as follows:
            (1) To ensure United States global superiority in 
        nanotechnology necessary for meeting national security 
        requirements.
            (2) To coordinate all nanoscale research and 
        development within the Department of Defense, and to 
        provide for interagency cooperation and collaboration 
        on nanoscale research and development between the 
        Department of Defense and other departments and 
        agencies of the United States that are involved in 
        nanoscale research and development.
            (3) To develop and manage a portfolio of 
        fundamental and applied nanoscience and engineering 
        research initiatives that is stable, consistent, and 
        balanced across scientific disciplines.
            (4) To accelerate the transition and deployment of 
        technologies and concepts derived from nanoscale 
        research and development into the Armed Forces, and to 
        establish policies, procedures, and standards for 
        measuring the success of such efforts.
            (5) To collect, synthesize, and disseminate 
        critical information on nanoscale research and 
        development.
    (c) Administration.--In carrying out the program, the 
Secretary shall act through the Director of Defense Research 
and Engineering, who shall supervise the planning, management, 
and coordination of the program. The Director, in consultation 
with the Secretaries of the military departments and the heads 
of participating Defense Agencies and other departments and 
agencies of the United States, shall--
            (1) prescribe a set of long-term challenges and a 
        set of specific technical goals for the program;
            (2) develop a coordinated and integrated research 
        and investment plan for meeting the long-term 
        challenges and achieving the specific technical goals 
        that builds upon the Department's increased investment 
        in nanotechnology research and development and the 
        National Nanotechnology Initiative; and
            (3) develop memoranda of agreement, joint funding 
        agreements, and other cooperative arrangements 
        necessary for meeting the long-term challenges and 
        achieving the specific technical goals.
    (d) Annual Report.--Not later than March 1 of each of 2004, 
2005, 2006, and 2007, the Director of Defense Research and 
Engineering shall submit to the congressional defense 
committees a report on the program. The report shall contain 
the following matters:
            (1) A review of--
                    (A) the long-term challenges and specific 
                technical goals of the program; and
                    (B) the progress made toward meeting those 
                challenges and achieving those goals.
            (2) An assessment of current and proposed funding 
        levels, including the adequacy of such funding levels 
        to support program activities.
            (3) A review of the coordination of activities 
        within the Department of Defense, with other 
        departments and agencies, and with the National 
        Nanotechnology Initiative.
            (4) An assessment of the extent to which effective 
        technology transition paths have been established as a 
        result of activities under the program.
            (5) Recommendations for additional program 
        activities to meet emerging national security 
        requirements.

SEC. 247. ACTIVITIES OF THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
                    COMPETITIVE RESEARCH.

    Subsection (c) of section 257 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 
U.S.C. 2358 note) is amended--
            (1) in paragraph (1), by striking ``research 
        grants'' and inserting ``grants for research and 
        instrumentation to support such research''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(3) Any other activities that are determined 
        necessary to further the achievement of the objectives 
        of the program.''.

SEC. 248. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD PRIZES FOR 
                    ADVANCED TECHNOLOGY ACHIEVEMENTS AND ADDITIONAL 
                    AUTHORITY OF MILITARY DEPARTMENTS AND DEFENSE 
                    AGENCIES TO AWARD PRIZES FOR ACHIEVEMENTS IN 
                    PROMOTING EDUCATION.

    (a) Extension.--Section 2374a(f) of title 10, United States 
Code, is amended by striking ``September 30, 2003'' and 
inserting ``September 30, 2007''.
    (b) Report on Administration of Program.--(1) Not later 
than December 31, 2002, the Director of the Defense Advanced 
Research Projects Agency shall submit to the congressional 
defense committees a report on the proposal of the Director for 
the administration of the program to award prizes for advanced 
technology achievements under section 2374a of title 10, United 
States Code.
    (2) The report shall include the following:
            (A) The results of consultations by the Director 
        with officials of the military departments regarding 
        the technology areas for which competitive prizes would 
        be established.
            (B) A description of the proposed goals of the 
        competitions that would be established under the 
        program, including the technology areas to be promoted 
        by the competitions and the relationship of such areas 
        to military missions of the Department of Defense.
            (C) The proposed rules for the competitions that 
        would be established under the program and a 
        description of the proposed management of the 
        competitions.
            (D) A description of the manner in which the 
        amounts of the cash prizes awarded and claimed under 
        the program would be allocated among the accounts of 
        the Defense Advanced Research Projects Agency for 
        recording as obligations and expenditures.
            (E) For each competition that would be established 
        under the program, a statement of the reasons why the 
        competition is a preferable means of promoting basic, 
        advanced, and applied research, advanced technology 
        development, or prototype projects, rather than other 
        means of promoting such activities, including 
        contracts, grants, cooperative agreements, and other 
        transactions.
    (c) Additional Authority to Award Cash Prizes for Promoting 
Education in Support of DoD Missions.--(1) Chapter 139 of title 
10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2374b. Prizes for achievements in promoting science, 
                    mathematics, engineering, or technology education

    ``(a) Authority.--The Secretaries of the military 
departments and the heads of defense agencies may each carry 
out a program to award cash prizes in recognition of 
outstanding achievements that are designed to promote science, 
mathematics, engineering, or technology education in support of 
the missions of the Department of Defense.
    ``(b) Competition Requirements.--Each program under 
subsection (a) shall use a competitive process for the 
selection of recipients of cash prizes.
    ``(c) Limitation.--For any single program under subsection 
(a), the total amount made available for award of cash prizes 
in a fiscal year may not exceed $1,000,000.
    ``(d) Relationship to Other Authority.--The program under 
subsection (a) may be carried out in conjunction with or in 
addition to the exercise of any other authority to acquire, 
support, or stimulate basic and applied research, advanced 
technology development, or prototype development projects.
    ``(e) Annual Report.--Promptly after the end of each fiscal 
year, each Secretary of a military department and each head of 
a defense agency carrying out a program under subsection (a) 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the administration 
of that program for that fiscal year.
    ``(f) Period of Authority.--The authority to award prizes 
under subsection (a) shall terminate at the end of September 
30, 2006.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2374b. Prizes for achievements in promoting science, mathematics, 
          engineering, or technology education.''.

SEC. 249. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF MEASUREMENT AND 
                    SIGNATURES INTELLIGENCE CAPABILITIES OF THE UNITED 
                    STATES THROUGH INCORPORATION OF RESULTS OF BASIC 
                    RESEARCH ON SENSORS.

    (a) Congressional Finding.--Congress finds that the 
national interest will be served by the rapid exploitation of 
basic research on sensors for purposes of enhancing the 
measurement and signatures intelligence (MASINT) capabilities 
of the United States.
    (b) Plan for Research Program.--(1) Not later than March 
31, 2003, the Secretary of Defense shall submit to Congress a 
plan for a five-year program of research intended to provide 
for the incorporation of the results of basic research on 
sensors into the measurement and signatures intelligence 
systems of the United States, to the extent the results of such 
research is applicable to such systems. Such program shall 
include the review and assessment of basic research on sensors 
for purpose of such incorporation, including both basic 
research on sensors conducted by the Government and basic 
research on sensors conducted by non-governmental entities.
    (2) The plan submitted under paragraph (1) shall provide 
that the activities to be carried out under the program 
provided for in the plan shall be carried out by a consortium 
consisting of such governmental and non-governmental entities 
as the Secretary considers appropriate for purposes of 
incorporating the broadest practicable range of sensor 
capabilities into the systems referred to in paragraph (1). The 
consortium may include national laboratories, universities, and 
private sector entities.
    (3) The plan shall include a proposal for the funding of 
activities under the five-year program provided for in the 
plan, including cost-sharing by non-governmental participants 
in the consortium under paragraph (2).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
          environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
          regarding unexploded ordnance, discarded military munitions, 
          and munitions constituents.
Sec. 313. Authority to carry out construction projects for environmental 
          responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military readiness 
          activities.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
          operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
          of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
          recreation programs.
Sec. 324. Rebate agreements under the special supplemental food program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
          for conversion of commercial or industrial type functions to 
          contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
          guard functions to meet increased requirements since September 
          11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level maintenance 
          and repair workloads that were performed at closed or 
          realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
          sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
          at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies affected 
          by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation provided 
          for teachers in the Department of Defense Overseas Dependents' 
          Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
          technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
          information assurance-enabled information technology products.
Sec. 353. Installation and connection policy and procedures regarding 
          Defense Switch Network.

                        Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
          operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
          fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
          and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
          modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, 
          historical artifacts, and condemned or obsolete combat 
          materiel.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $23,922,251,000.
            (2) For the Navy, $29,264,939,000.
            (3) For the Marine Corps, $3,559,636,000.
            (4) For the Air Force, $27,419,488,000.
            (5) For Defense-wide activities, $14,145,310,000.
            (6) For the Army Reserve, $1,985,110,000.
            (7) For the Naval Reserve, $1,233,759,000.
            (8) For the Marine Corps Reserve, $189,532,000.
            (9) For the Air Force Reserve, $2,160,604,000.
            (10) For the Army National Guard, $4,155,067,000.
            (11) For the Air National Guard, $4,104,810,000.
            (12) For the Defense Inspector General, 
        $155,165,000.
            (13) For the United States Court of Appeals for the 
        Armed Forces, $9,614,000.
            (14) For Environmental Restoration, Army, 
        $395,900,000.
            (15) For Environmental Restoration, Navy, 
        $256,948,000.
            (16) For Environmental Restoration, Air Force, 
        $389,773,000.
            (17) For Environmental Restoration, Defense-wide, 
        $23,498,000.
            (18) For Environmental Restoration, Formerly Used 
        Defense Sites, $252,102,000.
            (19) For Overseas Humanitarian, Disaster, and Civic 
        Aid programs, $58,400,000.
            (20) For Drug Interdiction and Counter-drug 
        Activities, Defense-wide, $859,907,000.
            (21) For the Kaho'olawe Island Conveyance, 
        Remediation, and Environmental Restoration Trust Fund, 
        $25,000,000.
            (22) For Defense Health Program, $14,123,038,000.
            (23) For Cooperative Threat Reduction programs, 
        $416,700,000.
            (24) For Support for International Sporting 
        Competitions, Defense, $19,000,000.
            (25) For overseas contingency operations transfer 
        fund, $17,844,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for providing capital 
for working capital and revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, 
        $387,156,000.
            (2) For the National Defense Sealift Fund, 
        $934,129,000.
            (3) For the Defense Commissary Agency Working 
        Capital Fund, $969,200,000.
            (4) For the Pentagon Reservation Maintenance 
        Revolving Fund, $328,000,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal 
year 2003 from the Armed Forces Retirement Home Trust Fund the 
sum of $69,921,000 for the operation of the Armed Forces 
Retirement Home.

SEC. 304. GRANT TO NATIONAL GUARD YOUTH FOUNDATION.

    Of the amount authorized to be appropriated by section 
301(5) for administrative and service-wide activities for 
civil-military programs, the Secretary of Defense may use up to 
$2,500,000 to make a grant to the National Guard Youth 
Foundation to support the efforts of the Foundation to mobilize 
individuals, groups, and organizations to build and strengthen 
the character and competence of youth in the United States.

                  Subtitle B--Environmental Provisions

SEC. 311. ENHANCEMENT OF AUTHORITY ON COOPERATIVE AGREEMENTS FOR 
                    ENVIRONMENTAL PURPOSES.

    Section 2701(d) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' 
        and inserting ``paragraph (3)'';
            (2) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively; and
            (3) by inserting after paragraph (1) the following 
        new paragraph (2):
            ``(2) Cross-fiscal year agreements.--An agreement 
        with an agency under paragraph (1) may be for a period 
        that begins in one fiscal year and ends in another 
        fiscal year so long as the period of the agreement does 
        not exceed two years.''.

SEC. 312. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING ISSUES 
                    REGARDING UNEXPLODED ORDNANCE, DISCARDED MILITARY 
                    MUNITIONS, AND MUNITIONS CONSTITUENTS.

    Section 2701 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(k) UXO Program Manager.--(1) The Secretary of Defense 
shall establish a program manager who shall serve as the single 
point of contact in the Department of Defense for policy and 
budgeting issues involving the characterization, remediation, 
and management of explosive and related risks with respect to 
unexploded ordnance, discarded military munitions, and 
munitions constituents at defense sites (as such terms are 
defined in section 2710 of this title) that pose a threat to 
human health or safety.
    ``(2) The authority to establish the program manager may be 
delegated to the Secretary of a military department, who may 
delegate the authority to the Under Secretary of that military 
department. The authority may not be further delegated.
    ``(3) The program manager may establish an independent 
advisory and review panel that may include representatives of 
the National Academy of Sciences, nongovernmental organizations 
with expertise regarding unexploded ordnance, discarded 
military munitions, or munitions constituents, the 
Environmental Protection Agency, States (as defined in section 
2710 of this title), and tribal governments. If established, 
the panel shall report annually to Congress on progress made by 
the Department of Defense to address unexploded ordnance, 
discarded military munitions, or munitions constituents at 
defense sites and make such recommendations as the panel 
considers appropriate.''.

SEC. 313. AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS FOR 
                    ENVIRONMENTAL RESPONSES.

    (a) Restatement and Modification of Authority.--Chapter 160 
of title 10, United States Code, is amended--
            (1) by redesignating section 2707 as section 2700 
        and transferring such section to appear immediately 
        after the table of sections at the beginning of such 
        chapter; and
            (2) by inserting after section 2706 the following 
        new section 2707:

``Sec. 2707. Environmental restoration projects for environmental 
                    responses

    ``(a) Environmental Restoration Projects Authorized.--The 
Secretary of Defense or the Secretary of a military department 
may carry out an environmental restoration project if that 
Secretary determines that the project is necessary to carry out 
a response under this chapter or CERCLA.
    ``(b) Treatment of Project.--Any construction, development, 
conversion, or extension of a structure, and any installation 
of equipment, that is included in an environmental restoration 
project under this section may not be considered military 
construction (as that term is defined in section 2801(a) of 
this title).
    ``(c) Source of Funds.--Funds authorized for deposit in an 
account established by section 2703(a) of this title shall be 
the only source of funds to conduct an environmental 
restoration project under this section.
    ``(d) Environmental Restoration Project Defined.--In this 
section, the term `environmental restoration project' includes 
any construction, development, conversion, or extension of a 
structure, or installation of equipment, in direct support of a 
response.''.
    (b) Repeal of Superseded Provision.--Section 2810 of such 
title is repealed.
    (c) Conforming Amendments.--Chapter 160 of such title is 
further amended--
            (1) in section 2700 (as redesignated by subsection 
        (a))--
                    (A) by redesignating paragraphs (1) and (2) 
                as paragraphs (2) and (3), respectively; and
                    (B) by inserting after ``In this chapter:'' 
                the following new paragraph:
            ``(1) The term `CERCLA' means the Comprehensive 
        Environmental Response, Compensation, and Liability Act 
        of 1980 (42 U.S.C. 9601 et seq.).''; and
            (2) in section 2701(a)(2), by striking ``the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980 (hereinafter in this chapter 
        referred to as `CERCLA') (42 U.S.C. 9601 et seq.)'' and 
        inserting ``CERCLA''.
    (d) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 160 of such title is amended--
            (A) by inserting before the item relating to 
        section 2701 the following new item:

``2700. Definitions.''; and

            (B) by striking the item relating to section 2707 
        and inserting the following new item:

``2707. Environmental restoration projects for environmental 
          responses.''.

    (2) The table of sections at the beginning of chapter 169 
of such title is amended by striking the item relating to 
section 2810.

SEC. 314. PROCUREMENT OF ENVIRONMENTALLY PREFERABLE PROCUREMENT ITEMS.

    (a) Tracking System.--The Secretary of Defense shall 
develop and implement an effective and efficient tracking 
system to identify the extent to which the Defense Logistics 
Agency procures environmentally preferable procurement items or 
procurement items made with recovered material. The system 
shall provide for the separate tracking, to the maximum extent 
practicable, of the procurement of each category of procurement 
items that, as of the date of the enactment of this Act, has 
been determined to be environmentally preferable or made with 
recovered material.
    (b) Assessment of Training and Education.--The Secretary of 
Defense shall assess the need to establish a program, or 
enhance existing programs, for training and educating 
Department of Defense procurement officials to ensure that they 
are aware of any Department requirements, preferences, or goals 
for the procurement of environmentally preferable procurement 
items or procurement items made with recovered material.
    (c) Reporting Requirement.--Not later than March 1, 2004, 
and each March 1 thereafter through 2007, the Secretary of 
Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report detailing the results obtained from 
the tracking system developed under subsection (a).
    (d) Relation to Other Laws.--Nothing in this section shall 
be construed to alter the requirements of the Solid Waste 
Disposal Act (40 U.S.C. 6901 et seq.).
    (e) Definitions.--In this section:
            (1) The term ``environmentally preferable'', in the 
        case of a procurement item, means that the item has a 
        lesser or reduced effect on human health and the 
        environment when compared with competing products that 
        serve the same purpose. The comparison may consider raw 
        materials acquisition, production, manufacturing, 
        packaging, distribution, reuse, operation, maintenance, 
        or disposal of the product.
            (2) The terms ``procurement item'' and ``recovered 
        material'' have the meanings given such terms in 
        section 1004 of the Solid Waste Disposal Act (40 U.S.C. 
        6903).

SEC. 315. INCIDENTAL TAKING OF MIGRATORY BIRDS DURING MILITARY 
                    READINESS ACTIVITIES.

    (a) Interim Authority for Incidental Takings.--During the 
period described in subsection (c), section 2 of the Migratory 
Bird Treaty Act (16 U.S.C. 703) shall not apply to the 
incidental taking of a migratory bird by a member of the Armed 
Forces during a military readiness activity authorized by the 
Secretary of Defense or the Secretary of the military 
department concerned.
    (b) Identification of Measures to Minimize Impact of 
Activities.--During the periods described in subsections (c) 
and (d), the Secretary of Defense shall, in consultation with 
the Secretary of the Interior, identify measures--
            (1) to minimize and mitigate, to the extent 
        practicable, any adverse impacts of authorized military 
        readiness activities on affected species of migratory 
        birds; and
            (2) to monitor the impacts of such military 
        readiness activities on affected species of migratory 
        birds.
    (c) Period of Application for Interim Authority.--The 
period described in this subsection is the period beginning on 
the date of the enactment of this Act and ending on the date on 
which the Secretary of the Interior publishes in the Federal 
Register a notice that--
            (1) regulations authorizing the incidental taking 
        of migratory birds by members of the Armed Forces have 
        been prescribed in accordance with the requirements of 
        subsection (d);
            (2) all legal challenges to the regulations and to 
        the manner of their promulgation (if any) have been 
        exhausted as provided in subsection (e); and
            (3) the regulations have taken effect.
    (d) Incidental Takings After Interim Period.--(1) Not later 
than the expiration of the one-year period beginning on the 
date of the enactment of this Act, the Secretary of the 
Interior shall exercise the authority of that Secretary under 
section 3(a) of the Migratory Bird Treaty Act (16 U.S.C. 
704(a)) to prescribe regulations to exempt the Armed Forces for 
the incidental taking of migratory birds during military 
readiness activities authorized by the Secretary of Defense or 
the Secretary of the military department concerned.
    (2) The Secretary of the Interior shall exercise authority 
under paragraph (1) with the concurrence of the Secretary of 
Defense.
    (e) Limitation on Judicial Review.--An action seeking 
judicial review of regulations prescribed pursuant to this 
section or of the manner of their promulgation must be filed in 
the appropriate Federal court by not later than the expiration 
of the 120-day period beginning on the date on which such 
regulations are published in the Federal Register. Upon the 
expiration of such period and the exhaustion of any legal 
challenges to the regulations pursuant to any action filed in 
such period, there shall be no further judicial review of such 
regulations or of the manner of their promulgation.
    (f) Military Readiness Activity.--(1) In this section the 
term ``military readiness activity'' includes--
            (A) all training and operations of the Armed Forces 
        that relate to combat; and
            (B) the adequate and realistic testing of military 
        equipment, vehicles, weapons, and sensors for proper 
        operation and suitability for combat use.
    (2) The term does not include--
            (A) the routine operation of installation operating 
        support functions, such as administrative offices, 
        military exchanges, commissaries, water treatment 
        facilities, storage facilities, schools, housing, motor 
        pools, laundries, morale, welfare, and recreation 
        activities, shops, and mess halls;
            (B) the operation of industrial activities; or
            (C) the construction or demolition of facilities 
        used for a purpose described in subparagraph (A) or 
        (B).

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT TO PROVIDE BASE 
                    OPERATING SUPPORT TO FISHER HOUSES.

    Section 2493(f) of title 10, United States Code, is amended 
to read as follows:
    ``(f) Base Operating Support.--The Secretary of a military 
department may provide base operating support for Fisher Houses 
associated with health care facilities of that military 
department.''.

SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL FACILITIES BY MEMBERS 
                    OF NATIONAL GUARD SERVING IN NATIONAL EMERGENCY.

    (a) Additional Basis for Authorized Use.--Section 1063a of 
title 10, United States Code, is amended--
            (1) in subsection (a), by inserting ``or national 
        emergency'' after ``federally declared disaster''; and
            (2) in subsection (c), by adding at the end the 
        following new paragraph:
            ``(3) National emergency.--The term `national 
        emergency' means a national emergency declared by the 
        President or Congress.''.
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 1063a. Use of commissary stores and MWR retail facilities: 
                    members of National Guard serving in federally 
                    declared disaster or national emergency''.

    (2) The table of sections at the beginning of chapter 54 of 
such title is amended by striking the item relating to section 
1063a and inserting the following new item:

``1063a. Use of commissary stores and MWR retail facilities: members of 
          National Guard serving in federally declared disaster or 
          national emergency.''.

SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, AND 
                    RECREATION PROGRAMS.

    (a) In General.--Chapter 147 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2494. Uniform funding and management of morale, welfare, and 
                    recreation programs

    ``(a) Authority for Uniform Funding and Management.--Under 
regulations prescribed by the Secretary of Defense, funds 
appropriated to the Department of Defense and available for 
morale, welfare, and recreation programs may be treated as 
nonappropriated funds and expended in accordance with laws 
applicable to the expenditures of nonappropriated funds. When 
made available for morale, welfare, and recreation programs 
under such regulations, appropriated funds shall be considered 
to be nonappropriated funds for all purposes and shall remain 
available until expended.
    ``(b) Conditions on Availability.--Funds appropriated to 
the Department of Defense may be made available to support a 
morale, welfare, or recreation program only if the program is 
authorized to receive appropriated fund support and only in the 
amounts the program is authorized to receive.
    ``(c) Conversion of Employment Positions.--(1) The 
Secretary of Defense may identify positions of employees in 
morale, welfare, and recreation programs within the Department 
of Defense who are paid with appropriated funds whose status 
may be converted from the status of an employee paid with 
appropriated funds to the status of an employee of a 
nonappropriated fund instrumentality.
    ``(2) The status of an employee in a position identified by 
the Secretary under paragraph (1) may, with the consent of the 
employee, be converted to the status of an employee of a 
nonappropriated fund instrumentality. An employee who does not 
consent to the conversion may not be removed from the position 
because of the failure to provide such consent.
    ``(3) The conversion of an employee from the status of an 
employee paid by appropriated funds to the status of an 
employee of a nonappropriated fund instrumentality shall be 
without a break in service for the concerned employee. The 
conversion shall not entitle an employee to severance pay, back 
pay or separation pay under subchapter IX of chapter 55 of 
title 5, or be considered an involuntary separation or other 
adverse personnel action entitling an employee to any right or 
benefit under such title or any other provision of law or 
regulation.
    ``(4) In this subsection, the term `an employee of a 
nonappropriated fund instrumentality' means an employee 
described in section 2105(c) of title 5.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2494. Uniform funding and management of morale, welfare, and 
          recreation programs.''.

SEC. 324. REBATE AGREEMENTS UNDER THE SPECIAL SUPPLEMENTAL FOOD 
                    PROGRAM.

    (a) Applicability to Navy Exchange Markets.--Paragraph 
(1)(A) of section 1060a(e) of title 10, United States Code, is 
amended by inserting ``or Navy Exchange Markets'' after 
``commissary stores''.
    (b) Increased Maximum Period of Agreement.--Paragraph (3) 
of such section is amended by striking ``subsection may not 
exceed one year'' in the first sentence and inserting 
``subsection, including any period of extension of the contract 
by modification of the contract, exercise of an option, or 
other cause, may not exceed three years''.

                 Subtitle D--Workplace and Depot Issues

SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION WITH REQUIRED STUDIES 
                    FOR CONVERSION OF COMMERCIAL OR INDUSTRIAL TYPE 
                    FUNCTIONS TO CONTRACTOR PERFORMANCE.

    Subsection (c) of section 2461 of title 10, United States 
Code, is amended to read as follows:
    ``(c) Submission of Analysis Results.--(1) Upon the 
completion of an analysis of a commercial or industrial type 
function described in subsection (a) for possible change to 
performance by the private sector, the Secretary of Defense 
shall submit to Congress a report containing the results of the 
analysis, including the results of the examinations required by 
subsection (b)(3).
    ``(2) The report shall also contain the following:
            ``(A) The date when the analysis of the function 
        was commenced.
            ``(B) The Secretary's certification that the 
        Government calculation of the cost of performance of 
        the function by Department of Defense civilian 
        employees is based on an estimate of the most cost 
        effective manner for performance of the function by 
        Department of Defense civilian employees.
            ``(C) The number of Department of Defense civilian 
        employees who were performing the function when the 
        analysis was commenced and the number of such employees 
        whose employment was or will be terminated or otherwise 
        affected by changing to performance of the function by 
        the private sector or by implementation of the most 
        efficient organization of the function.
            ``(D) The Secretary's certification that the 
        factors considered in the examinations performed under 
        subsection (b)(3), and in the making of the decision 
        regarding changing to performance of the function by 
        the private sector or retaining performance in the most 
        efficient organization of the function, did not include 
        any predetermined personnel constraint or limitation in 
        terms of man years, end strength, full-time equivalent 
        positions, or maximum number of employees.
            ``(E) A statement of the potential economic effect 
        of implementing the decision regarding changing to 
        performance of the function by the private sector or 
        retaining performance in the most efficient 
        organization of the function on each affected local 
        community, as determined in the examination under 
        subsection (b)(3)(B)(ii).
            ``(F) A schedule for completing the change to 
        performance of the function by the private sector or 
        implementing the most efficient organization of the 
        function.
            ``(G) In the case of a commercial or industrial 
        type function performed at a Center of Industrial and 
        Technical Excellence designated under section 2474(a) 
        of this title or an Army ammunition plant, a 
        description of the effect that the manner of 
        performance of the function, and administration of the 
        resulting contract if any, will have on the overhead 
        costs of the center or ammunition plant, as the case 
        may be.
            ``(H) The Secretary's certification that the entire 
        analysis is available for examination.
    ``(3)(A) If a decision is made to change the commercial or 
industrial type function that was the subject of the analysis 
to performance by the private sector, the change of the 
function to contractor performance may not begin until after 
the submission of the report required by paragraph (1).
    ``(B) Notwithstanding subparagraph (A), in the case of a 
commercial or industrial type function performed at a Center of 
Industrial and Technical Excellence designated under section 
2474(a) of this title or an Army ammunition plant, the change 
of the function to contractor performance may not begin until 
at least 60 days after the submission of the report.''.

SEC. 332. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF SECURITY-
                    GUARD FUNCTIONS TO MEET INCREASED REQUIREMENTS 
                    SINCE SEPTEMBER 11, 2001.

    (a) Contract Authority.--The Secretary of Defense or the 
Secretary of a military department may enter into a contract 
for any increased performance of security-guard functions at a 
military installation or facility under the jurisdiction of the 
Secretary undertaken in response to the terrorist attacks on 
the United States on September 11, 2001, and may waive the 
prohibition under section 2465(a) of title 10, United States 
Code, with respect to such contract, if--
            (1) without the contract, members of the Armed 
        Forces are or would be used to perform the increased 
        security-guard functions; and
            (2) the Secretary concerned determines that--
                    (A) the recruiting and training standards 
                for the personnel who are to perform the 
                security-guard functions at the installation or 
                facility under the contract are comparable to 
                the recruiting and training standards for the 
                personnel of the Department of Defense who 
                perform security-guard functions at military 
                installations and facilities under the 
                jurisdiction of the Secretary;
                    (B) the contractor personnel performing 
                such functions under the contract will be 
                effectively supervised, reviewed, and 
                evaluated; and
                    (C) the performance of such functions by 
                the contractor personnel will not result in a 
                reduction in the security of the installation 
                or facility.
    (b) Increased Performance Defined.--In this section, the 
term ``increased performance'', with respect to security-guard 
functions at a military installation or facility, means--
            (1) in the case of an installation or facility 
        where no security-guard functions were performed as of 
        September 10, 2001, the entire scope or extent of the 
        performance of security-guard functions at the 
        installation or facility after such date; and
            (2) in the case of an installation or facility 
        where security-guard functions were performed within a 
        lesser scope of requirements or to a lesser extent as 
        of September 10, 2001, than after such date, the 
        increment of the performance of security-guard 
        functions at the installation or facility that exceeds 
        such lesser scope of requirements or extent of 
        performance.
    (c) Expiration of Authority.--The authority for contractor 
performance of security-guard functions under this section 
shall terminate at the end of the three-year period beginning 
on the date of the enactment of this Act. The term of any 
contract entered into using the authority provided by this 
section may not extend beyond the end of such period.
    (d) Needs Assessment and Plan.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall--
            (1) identify any requirements for the performance 
        of security-guard functions at military installations 
        and facilities under the jurisdiction of the Secretary 
        or the Secretary of a military department that are 
        expected to continue for more than three years after 
        the date of the enactment of this Act and, in the 
        absence of further action by the Secretary or Congress, 
        would otherwise be performed by members of the Armed 
        Forces; and
            (2) submit to the congressional defense committees 
        a plan for meeting those requirements on a long-term 
        basis.

SEC. 333. REPEAL OF OBSOLETE PROVISION REGARDING DEPOT-LEVEL 
                    MAINTENANCE AND REPAIR WORKLOADS THAT WERE 
                    PERFORMED AT CLOSED OR REALIGNED MILITARY 
                    INSTALLATIONS.

    (a) Repeal.--Section 2469a of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 146 of such title is amended by striking 
the item relating to section 2469a.

SEC. 334. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON PRIVATE 
                    SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    Section 2474(f) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``Amounts 
        expended out of funds described in paragraph (2) for 
        the performance of a depot-level maintenance and repair 
        workload by non-Federal Government personnel at a 
        Center of Industrial and Technical Excellence'' and 
        inserting ``Amounts expended for the performance of a 
        depot-level maintenance and repair workload by non-
        Federal Government personnel at a Center of Industrial 
        and Technical Excellence under any contract entered 
        into during fiscal years 2003 through 2006'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph 
        (2).

                Subtitle E--Defense Dependents Education

SEC. 341. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
                    DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND 
                    DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for 
Fiscal Year 2003.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for 
Defense-wide activities, $30,000,000 shall be available only 
for the purpose of providing educational agencies assistance to 
local educational agencies.
    (b) Notification.--Not later than June 30, 2003, the 
Secretary of Defense shall notify each local educational agency 
that is eligible for educational agencies assistance for fiscal 
year 2003 of--
            (1) that agency's eligibility for the assistance; 
        and
            (2) the amount of the assistance for which that 
        agency is eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall 
disburse funds made available under subsection (a) not later 
than 30 days after the date on which notification to the 
eligible local educational agencies is provided pursuant to 
subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' 
        means assistance authorized under section 386(b) of the 
        National Defense Authorization Act for Fiscal Year 1993 
        (Public Law 102-484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the 
        meaning given that term in section 8013(9) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7713(9)).

SEC. 342. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS REQUIRED TO LIVE 
                    AT GUANTANAMO BAY NAVAL STATION, CUBA.

    Section 7 of the Defense Department Overseas Teachers Pay 
and Personnel Practices Act (20 U.S.C. 905) is amended by 
adding at the end the following new subsection:
    ``(f)(1) A teacher assigned to teach at Guantanamo Bay 
Naval Station, Cuba, who is not accompanied at such station by 
any dependent shall be offered for lease any available military 
family housing at such station that is suitable for occupancy 
by the teacher and is not needed to house members of the armed 
forces and dependents accompanying them or other civilian 
personnel and any dependents accompanying them.
    ``(2) For any period for which military family housing is 
leased under paragraph (1) to a teacher described in such 
paragraph, the teacher shall receive a quarters allowance in 
the amount determined under subsection (b). The teacher is 
entitled to such quarters allowance without regard to whether 
other Government furnished quarters are available for occupancy 
by the teacher without charge to the teacher.''.

SEC. 343. OPTIONS FOR FUNDING DEPENDENT SUMMER SCHOOL PROGRAMS.

    Section 1402(d)(2) of the Defense Dependents' Education Act 
of 1978 (20 U.S.C. 921(d)(2)) is amended to read as follows:
    ``(2) The Secretary shall provide any summer school program 
under this subsection on the same financial basis as programs 
offered during the regular school year, except that the 
Secretary may charge reasonable fees for all or portions of 
such summer school programs to the extent that the Secretary 
determines appropriate.''.

SEC. 344. IMPACT AID ELIGIBILITY FOR LOCAL EDUCATIONAL AGENCIES 
                    AFFECTED BY PRIVATIZATION OF MILITARY HOUSING.

    Section 8003(b)(2) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by 
adding at the end the following:
                    ``(H) Eligibility for heavily impacted 
                local educational agencies affected by 
                privatization of military housing.--
                            ``(i) Eligibility.--For any fiscal 
                        year beginning with fiscal year 2003, a 
                        heavily impacted local educational 
                        agency that received a basic support 
                        payment under subparagraph (A) for the 
                        prior fiscal year, but is ineligible 
                        for such payment for the current fiscal 
                        year under subparagraph (B) or (C), as 
                        the case may be, by reason of the 
                        conversion of military housing units to 
                        private housing described in clause 
                        (iii), shall be deemed to meet the 
                        eligibility requirements under 
                        subparagraph (B) or (C), as the case 
                        may be, for the period during which the 
                        housing units are undergoing such 
                        conversion.
                            ``(ii) Amount of payment.--The 
                        amount of a payment to a heavily 
                        impacted local educational agency for a 
                        fiscal year by reason of the 
                        application of clause (i), and 
                        calculated in accordance with 
                        subparagraph (D) or (E) (as the case 
                        may be), shall be based on the number 
                        of children in average daily attendance 
                        in the schools of such agency for the 
                        fiscal year.
                            ``(iii) Conversion of military 
                        housing units to private housing 
                        described.--For purposes of clause (i), 
                        `conversion of military housing units 
                        to private housing' means the 
                        conversion of military housing units to 
                        private housing units pursuant to 
                        subchapter IV of chapter 169 of title 
                        10, United States Code, or pursuant to 
                        any other related provision of law.''.

SEC. 345. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION 
                    PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE 
                    OVERSEAS DEPENDENTS' SCHOOLS.

    (a) Additional Consideration for Study.--Subsection (b) of 
section 354 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1064) is 
amended by inserting after paragraph (2) the following new 
paragraph:
            ``(3) Whether the process for setting teacher 
        compensation is efficient and cost effective.''.
    (b) Extension of Time for Reporting.--Subsection (c) of 
such section is amended by striking ``May 1, 2002'' and 
inserting ``December 12, 2002''.

                   Subtitle F--Information Technology

SEC. 351. ANNUAL SUBMISSION OF INFORMATION REGARDING INFORMATION 
                    TECHNOLOGY CAPITAL ASSETS.

    (a) Requirement To Submit Information.--Not later than 30 
days after the date on which the President submits the budget 
for a fiscal year to Congress pursuant to section 1105 of title 
31, United States Code, the Secretary of Defense shall submit 
to Congress information on the following information technology 
capital assets, including information technology capital assets 
that are a national security system, of the Department of 
Defense:
            (1) Information technology capital assets not 
        covered by paragraph (2) that have an estimated total 
        cost for the fiscal year for which the budget is 
        submitted in excess of $10,000,000.
            (2) Information technology capital assets that have 
        an estimated total cost for the fiscal year for which 
        the budget is submitted in excess of $30,000,000 and an 
        estimated total life cycle cost (as computed in fiscal 
        year 2003 constant dollars) in excess of $120,000,000.
    (b) Required Information For Low-Threshold Assets.--With 
respect to each information technology capital asset described 
in subsection (a)(1), the Secretary of Defense shall include 
the following information:
            (1) The name of the information technology capital 
        asset.
            (2) The function of the asset.
            (3) The total cost of the asset for the fiscal year 
        for which the budget is submitted, the current fiscal 
        year, and the preceding fiscal year.
    (c) Required Information for High-Threshold Assets.--With 
respect to each information technology capital asset described 
in subsection (a)(2), the Secretary of Defense shall include 
the following information:
            (1) The name and identifying acronym of the 
        information technology capital asset.
            (2) The date of initiation of the asset.
            (3) A summary of performance measurements and 
        metrics.
            (4) The total amount of funds, by appropriation 
        account, appropriated and obligated for prior fiscal 
        years, with a specific breakout of such information for 
        the two preceding fiscal years.
            (5) The funds, by appropriation account, requested 
        for the next fiscal year.
            (6) The name of each prime contractor and the work 
        to be performed.
            (7) Program management and management oversight 
        information.
            (8) The original baseline cost and most current 
        baseline information.
            (9) Information regarding compliance with the 
        provisions of law enacted or amended by the Government 
        Performance Results Act of 1993 (Public Law 103-62; 107 
        Stat. 285) and the Clinger-Cohen Act of 1996 (divisions 
        D and E of Public Law 104-106; 110 Stat. 642).
    (d) Total Cost Determinations.--In estimating the total 
cost for a fiscal year or total life cycle cost of an 
information technology capital asset, the Secretary of Defense 
shall consider research and development costs, procurement 
costs, and operation and maintenance costs related to the 
information technology capital asset.
    (e) Definitions.--In this section:
            (1) The term ``information technology'' has the 
        meaning given that term in section 11101 of title 40, 
        United States Code.
            (2) The term ``capital asset'' has the meaning 
        given that term in Office of Management and Budget 
        Circular A-11.
            (3) The term ``national security system'' has the 
        meaning given that term in section 11103 of title 40, 
        United States Code.

SEC. 352. POLICY REGARDING ACQUISITION OF INFORMATION ASSURANCE AND 
                    INFORMATION ASSURANCE-ENABLED INFORMATION 
                    TECHNOLOGY PRODUCTS.

    (a) Establishment of Policy.--The Secretary of Defense 
shall establish a policy to limit the acquisition of 
information assurance and information assurance-enabled 
information technology products to those products that have 
been evaluated and validated in accordance with appropriate 
criteria, schemes, or programs.
    (b) Waiver.--As part of the policy, the Secretary of 
Defense shall authorize specified officials of the Department 
of Defense to waive the limitations of the policy upon a 
determination in writing that application of the limitations to 
the acquisition of a particular information assurance or 
information assurance-enabled information technology product 
would not be in the national security interest of the United 
States.
    (c) Implementation.--The Secretary of Defense shall ensure 
that the policy is uniformly implemented throughout the 
Department of Defense.

SEC. 353. INSTALLATION AND CONNECTION POLICY AND PROCEDURES REGARDING 
                    DEFENSE SWITCH NETWORK.

    (a) Establishment of Policy and Procedures.--Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall establish clear and uniform policy 
and procedures, applicable to the military departments and 
Defense Agencies, regarding the installation and connection of 
telecom switches to the Defense Switch Network.
    (b) Elements of Policy and Procedures.--The policy and 
procedures shall address at a minimum the following:
            (1) Clear interoperability and compatibility 
        requirements for procuring, certifying, installing, and 
        connecting telecom switches to the Defense Switch 
        Network.
            (2) Current, complete, and enforceable testing, 
        validation, and certification procedures needed to 
        ensure the interoperability and compatibility 
        requirements are satisfied.
    (c) Exceptions.--(1) The Secretary of Defense may specify 
certain circumstances in which--
            (A) the requirements for testing, validation, and 
        certification of telecom switches may be waived; or
            (B) interim authority for the installation and 
        connection of telecom switches to the Defense Switch 
        Network may be granted.
    (2) Only the Assistant Secretary of Defense for Command, 
Control, Communications, and Intelligence may approve a waiver 
or grant of interim authority under paragraph (1). The 
authority to approve such a waiver or grant of interim 
authority may not be delegated.
    (3) The Assistant Secretary of Defense for Command, 
Control, Communications, and Intelligence shall consult with 
the Chairman of the Joint Chiefs of Staff before approving a 
waiver or grant of interim authority under paragraph (1).
    (d) Inventory of Defense Switch Network.--The Secretary of 
Defense shall prepare and maintain an inventory of all telecom 
switches that, as of the date on which the Secretary issues the 
policy and procedures--
            (1) are installed or connected to the Defense 
        Switch Network; but
            (2) have not been tested, validated, and certified 
        by the Defense Information Systems Agency (Joint 
        Interoperability Test Center).
    (e) Interoperability Risks.--On an ongoing basis, the 
Secretary of Defense shall--
            (1) identify and assess the interoperability risks 
        that are associated with the installation or connection 
        of uncertified switches to the Defense Switch Network 
        and the maintenance of such switches on the Defense 
        Switch Network; and
            (2) develop and implement a plan to eliminate or 
        mitigate such risks as identified.
    (f) Telecom Switch Defined.--In this section, the term 
``telecom switch'' means hardware or software designed to send 
and receive voice, data, or video signals across a network that 
provides customer voice, data, or video equipment access to the 
Defense Switch Network or public switched telecommunications 
networks.

                       Subtitle G--Other Matters

SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN 
                    OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.

    (a) Designation of Recipients.--Subsection (a) of section 
228 of title 10, United States Code, is amended by striking 
``to Congress'' and inserting ``to the congressional defense 
committees''.
    (b) Congressional Defense Committees Defined.--Subsection 
(e) of such section is amended--
            (1) by striking ``(e) O&M Budget Activity 
        Defined.--For purposes of this section, the'' and 
        inserting the following:
    ``(e) Definitions.--In this section:
            ``(1) The''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) The term `congressional defense committees' 
        means the Committee on Armed Services and the Committee 
        on Appropriations of the Senate and the Committee on 
        Armed Services and the Committee on Appropriations of 
        the House of Representatives.''.

SEC. 362. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Extension Through Fiscal Year 2004.--Subsection (a) of 
section 343 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-65) is amended by striking 
``and 2002'' and inserting ``through 2004''.
    (b) Reporting Requirements.--Subsection (g) of such section 
is amended--
            (1) in paragraph (1), by striking ``2002'' and 
        inserting ``2004''; and
            (2) in paragraph (2), by striking the first 
        sentence and inserting the following new sentence: 
        ``Not later than July 1, 2003, the Secretary of the 
        Army shall submit to the congressional defense 
        committees a report on the results of the demonstration 
        program since its implementation, including the 
        Secretary's views regarding the benefits of the program 
        for Army manufacturing arsenals and the Department of 
        the Army and the success of the program in achieving 
        the purposes specified in subsection (b).''.

SEC. 363. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

    (a) Extension.--Section 1112 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-313) is 
amended--
            (1) in subsection (d), by striking ``September 30, 
        2002'' and inserting ``September 30, 2003''; and
            (2) in subsection (e)(2), by striking ``December 1, 
        2002'' and inserting ``December 1, 2003''.
    (b) Revision of Reporting Requirements.--Subsection (e)(2) 
of such section is further amended by striking ``fiscal year 
2002'' both places it appears and inserting ``fiscal years 2002 
and 2003''.

SEC. 364. CONDITION ON AUTHORITY OF DEFENSE SECURITY SERVICE TO IMPOSE 
                    FEES ON FEE-FOR-SERVICE BASIS.

    The Secretary of Defense may not authorize the Defense 
Security Service to impose fees on a fee-for-service basis for 
the investigative services provided by the Defense Security 
Service unless the Secretary certifies in advance to the 
Committee on Armed Services of the House of Representatives and 
the Committee on Armed Services of the Senate that the Defense 
Security Service has the financial systems in place to 
determine accurately the cost of such services.

SEC. 365. LOGISTICS SUPPORT AND SERVICES FOR WEAPON SYSTEMS 
                    CONTRACTORS.

    (a) Authority.--The Secretary of Defense may make available 
logistics support and logistics services to a contractor in 
support of the performance by the contractor of a contract for 
the construction, modification, or maintenance of a weapon 
system that is entered into by an official of the Department of 
Defense.
    (b) Support Contracts.--Any logistics support and logistics 
services to be provided under this section to a contractor in 
support of the performance of a contract described in 
subsection (a) shall be provided under a separate contract that 
is entered into by the Director of the Defense Logistics Agency 
with that contractor. The requirements of section 2208(h) of 
title 10, United States Code, and the regulations prescribed 
pursuant to such section shall apply to the contract between 
the Director of the Defense Logistics Agency and the 
contractor.
    (c) Scope of Support and Services.--The logistics support 
and logistics services that may be provided under this section 
in support of the performance of a contract described in 
subsection (a) are the distribution, disposal, and cataloging 
of materiel and repair parts necessary for the performance of 
that contract.
    (d) Limitations.--(1) The number of contracts described in 
subsection (a) for which the Secretary of Defense makes 
logistics support and logistics services available under the 
authority of this section may not exceed five contracts. The 
total amount of the estimated costs of all such contracts for 
which logistics support and logistics services are made 
available under this section may not exceed $100,000,000.
    (2) No contract entered into by the Director of the Defense 
Logistics Agency under subsection (b) may be for a period in 
excess of five years, including periods for which the contract 
is extended under options to extend the contract.
    (e) Regulations.--Before exercising the authority under 
this section, the Secretary of Defense shall prescribe in 
regulations such requirements, conditions, and restrictions as 
the Secretary determines appropriate to ensure that logistics 
support and logistics services are provided under this section 
only when it is in the best interests of the United States to 
do so. The regulations shall include, at a minimum, the 
following:
            (1) A requirement for the authority under this 
        section to be used only for providing logistics support 
        and logistics services in support of the performance of 
        a contract that is entered into using competitive 
        procedures (as defined in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403)).
            (2) A requirement for the solicitation of offers 
        for a contract described in subsection (a), for which 
        logistics support and logistics services are to be made 
        available under this section, to include--
                    (A) a statement that the logistics support 
                and logistics services are to be made available 
                under the authority of this section to any 
                contractor awarded the contract, but only on a 
                basis that does not require acceptance of the 
                support and services; and
                    (B) a description of the range of the 
                logistics support and logistics services that 
                are to be made available to the contractor.
            (3) A requirement for the rates charged a 
        contractor for logistics support and logistics services 
        provided to a contractor under this section to reflect 
        the full cost to the United States of the resources 
        used in providing the support and services, including 
        the costs of resources used, but not paid for, by the 
        Department of Defense.
            (4) With respect to a contract described in 
        subsection (a) that is being performed for a department 
        or agency outside the Department of Defense, a 
        prohibition, in accordance with applicable contracting 
        procedures, on the imposition of any charge on that 
        department or agency for any effort of Department of 
        Defense personnel or the contractor to correct 
        deficiencies in the performance of such contract.
            (5) A prohibition on the imposition of any charge 
        on a contractor for any effort of the contractor to 
        correct a deficiency in the performance of logistics 
        support and logistics services provided to the 
        contractor under this section.
    (f) Relationship to Treaty Obligations.--The Secretary 
shall ensure that the exercise of authority under this section 
does not conflict with any obligation of the United States 
under any treaty or other international agreement.
    (g) Termination of Authority.--(1) The authority provided 
in this section shall expire on September 30, 2007.
    (2) The expiration of the authority under this section does 
not terminate--
            (A) any contract that was entered into by the 
        Director of the Defense Logistics Agency under 
        subsection (b) before the date specified in paragraph 
        (1) or any obligation to provide logistics support and 
        logistics services under that contract; or
            (B) any authority to enter into a contract 
        described in subsection (a) for which a solicitation of 
        offers was issued in accordance with the regulations 
        prescribed pursuant to subsection (e)(2) before the 
        date specified in paragraph (1) or to provide logistics 
        support and logistics services to the contractor with 
        respect to that contract in accordance with this 
        section.

SEC. 366. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL STATUS OF RESOURCES 
                    AND TRAINING SYSTEM, AND TRAINING RANGE INVENTORY.

    (a) Plan Required.--(1) The Secretary of Defense shall 
develop a comprehensive plan for using existing authorities 
available to the Secretary of Defense and the Secretaries of 
the military departments to address training constraints caused 
by limitations on the use of military lands, marine areas, and 
airspace that are available in the United States and overseas 
for training of the Armed Forces.
    (2) As part of the preparation of the plan, the Secretary 
of Defense shall conduct the following:
            (A) An assessment of current and future training 
        range requirements of the Armed Forces.
            (B) An evaluation of the adequacy of current 
        Department of Defense resources (including virtual and 
        constructive training assets as well as military lands, 
        marine areas, and airspace available in the United 
        States and overseas) to meet those current and future 
        training range requirements.
    (3) The plan shall include the following:
            (A) Proposals to enhance training range 
        capabilities and address any shortfalls in current 
        Department of Defense resources identified pursuant to 
        the assessment and evaluation conducted under paragraph 
        (2).
            (B) Goals and milestones for tracking planned 
        actions and measuring progress.
            (C) Projected funding requirements for implementing 
        planned actions.
            (D) Designation of an office in the Office of the 
        Secretary of Defense and in each of the military 
        departments that will have lead responsibility for 
        overseeing implementation of the plan.
    (4) At the same time as the President submits to Congress 
the budget for fiscal year 2004, the Secretary of Defense shall 
submit to Congress a report describing the progress made in 
implementing this subsection, including--
            (A) the plan developed under paragraph (1);
            (B) the results of the assessment and evaluation 
        conducted under paragraph (2); and
            (C) any recommendations that the Secretary may have 
        for legislative or regulatory changes to address 
        training constraints identified pursuant to this 
        section.
    (5) At the same time as the President submits to Congress 
the budget for each of fiscal years 2005 through 2008, the 
Secretary shall submit to Congress a report describing the 
progress made in implementing the plan and any additional 
actions taken, or to be taken, to address training constraints 
caused by limitations on the use of military lands, marine 
areas, and airspace.
    (b) Readiness Reporting Improvement.--Not later than June 
30, 2003, the Secretary of Defense, using existing measures 
within the authority of the Secretary, shall submit to Congress 
a report on the plans of the Department of Defense to improve 
the Global Status of Resources and Training System to reflect 
the readiness impact that training constraints caused by 
limitations on the use of military lands, marine areas, and 
airspace have on specific units of the Armed Forces.
    (c) Training Range Inventory.--(1) The Secretary of Defense 
shall develop and maintain a training range inventory for each 
of the Armed Forces--
            (A) to identify all available operational training 
        ranges;
            (B) to identify all training capacities and 
        capabilities available at each training range; and
            (C) to identify training constraints caused by 
        limitations on the use of military lands, marine areas, 
        and airspace at each training range.
    (2) The Secretary of Defense shall submit an initial 
inventory to Congress at the same time as the President submits 
the budget for fiscal year 2004 and shall submit an updated 
inventory to Congress at the same time as the President submits 
the budget for fiscal years 2005 through 2008.
    (d) GAO Evaluation.--The Secretary of Defense shall 
transmit copies of each report required by subsections (a) and 
(b) to the Comptroller General. Within 60 days after receiving 
a report, the Comptroller General shall submit to Congress an 
evaluation of the report.
    (e) Armed Forces Defined.--In this section, the term 
``Armed Forces'' means the Army, Navy, Air Force, and Marine 
Corps.

SEC. 367. ENGINEERING STUDY AND ENVIRONMENTAL ANALYSIS OF ROAD 
                    MODIFICATIONS IN VICINITY OF FORT BELVOIR, 
                    VIRGINIA.

    (a) Study and Analysis.--(1) The Secretary of the Army 
shall conduct a preliminary engineering study and environmental 
analysis to evaluate the feasibility of establishing a 
connector road between Richmond Highway (United States Route 1) 
and Telegraph Road in order to provide an alternative to Beulah 
Road (State Route 613) and Woodlawn Road (State Route 618) at 
Fort Belvoir, Virginia, which were closed as a force protection 
measure.
    (2) It is the sense of Congress that the study and analysis 
should consider as one alternative the extension of Old Mill 
Road between Richmond Highway and Telegraph Road.
    (b) Consultation.--The study required by subsection (a) 
shall be conducted in consultation with the Department of 
Transportation of the Commonwealth of Virginia and Fairfax 
County, Virginia.
    (c) Report.--The Secretary shall submit to Congress a 
summary report on the study and analysis required by subsection 
(a). The summary report shall be submitted together with the 
budget justification materials in support of the budget of the 
President for fiscal year 2006 that is submitted to Congress 
under section 1105(a) of title 31, United States Code.
    (d) Funding.--Of the amount authorized to be appropriated 
by section 301(a)(1) for the Army for operation and 
maintenance, $5,000,000 may be made available for the study and 
analysis required by subsection (a).

SEC. 368. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    Section 391 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 2304 note), as 
amended by section 364 of Public Law 107-107 (115 Stat. 1068), 
is further amended--
            (1) in subsection (f), by striking ``September 30, 
        2003'' and inserting ``September 30, 2004''; and
            (2) by striking subsection (g).

SEC. 369. EXPANDED ELIGIBILITY FOR LOAN, GIFT, OR EXCHANGE OF 
                    DOCUMENTS, HISTORICAL ARTIFACTS, AND CONDEMNED OR 
                    OBSOLETE COMBAT MATERIEL.

    Section 2572(a)(3) of title 10, United States Code, is 
amended by inserting before the period the following: ``or a 
nonprofit military aviation heritage foundation or association 
incorporated in a State''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
          active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
          numbers of general and flag officers in certain grades.
Sec. 406. Increase in authorized strengths for Marine Corps officers on 
          active duty in the grade of colonel.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitation on non-dual status technicians.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty 
personnel as of September 30, 2003, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 375,700.
            (3) The Marine Corps, 175,000.
            (4) The Air Force, 359,000.

SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

    (a) Revised End Strength Floors.--Subsection (b) of section 
691 of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``376,000'' and 
        inserting ``375,700'';
            (2) in paragraph (3), by striking ``172,600'' and 
        inserting ``175,000''; and
            (3) in paragraph (4), by striking ``358,800'' and 
        inserting ``359,000''.
    (b) Repeal of Secretary of Defense Flexibility Authority.--
Subsection (e) of such section is repealed.

SEC. 403. [H403]. EXPANDED AUTHORITY FOR ADMINISTRATIVE INCREASES IN 
                    STATUTORY ACTIVE-DUTY END STRENGTHS.

    (a) Secretary of Defense Authority.--Subsection (c)(1) of 
section 115 of title 10, United States Code, is amended by 
striking ``2 percent'' and inserting ``3 percent''.
    (b) Service Secretary Authority.--Such section is further 
amended by inserting after subsection (e) the following new 
subsection:
    ``(f) Upon determination by the Secretary of a military 
department that such action would enhance manning and readiness 
in essential units or in critical specialties or ratings, the 
Secretary may increase the end strength authorized pursuant to 
subsection (a)(1)(A) for a fiscal year for the armed force 
under the jurisdiction of that Secretary or, in the case of the 
Secretary of the Navy, for any of the armed forces under the 
jurisdiction of that Secretary. Any such increase for a fiscal 
year--
            ``(1) shall be by a number equal to not more than 2 
        percent of such authorized end strength; and
            ``(2) shall be counted as part of the increase for 
        that armed force for that fiscal year authorized under 
        subsection (c)(1).''.

SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.

    (a) Exclusion of Senior Military Assistant to the Secretary 
of Defense From Limitation on Active Duty Officers in Grades 
Above Major General and Rear Admiral.--Effective on the date 
specified in subsection (d), section 525(b) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
    ``(8) An officer while serving in a position designated by 
the Secretary of Defense as Senior Military Assistant to the 
Secretary of Defense, if serving in the grade of lieutenant 
general or vice admiral, is in addition to the number that 
otherwise would be permitted for that officer's armed force for 
that grade under paragraph (1) or (2). Only one officer may be 
designated as Senior Military Assistant to the Secretary of 
Defense for purposes of this paragraph.''.
    (b) Increase in Number of Lieutenant Generals Authorized 
for the Marine Corps.--Paragraph (2)(B) of such section is 
amended by striking ``16.2 percent'' and inserting ``17.5 
percent''.
    (c) Review of Active Duty and Reserve General and Flag 
Officer Authorizations.--(1) The Secretary of Defense shall 
submit to Congress a report containing any recommendations of 
the Secretary (together with the rationale of the Secretary for 
the recommendations) concerning the following:
            (A) Revision of the limitations on general and flag 
        officer grade authorizations and distribution in grade 
        prescribed by sections 525, 526, and 12004 of title 10, 
        United States Code.
            (B) Statutory designation of the positions and 
        grades of any additional general and flag officers in 
        the commands specified in chapter 1006 of title 10, 
        United States Code, and the reserve component offices 
        specified in sections 3038, 5143, 5144, and 8038 of 
        such title.
    (2) The provisions of subsection (b) through (e) of section 
1213 of the National Defense Authorization Act for Fiscal Year 
1997 (Public Law 104-201; 110 Stat. 2694) shall apply to the 
report under paragraph (1) in the same manner as they applied 
to the report required by subsection (a) of that section.
    (d) Effective Date.--The amendment made by subsection (a) 
shall take effect on the date of the receipt by Congress of the 
report required by subsection (c).

SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING TO MANAGEMENT OF 
                    NUMBERS OF GENERAL AND FLAG OFFICERS IN CERTAIN 
                    GRADES.

    (a) Senior Joint Officer Positions.--Section 604(c) of 
title 10, United States Code, is amended by striking 
``September 30, 2003'' and inserting ``December 31, 2004''.
    (b) Distribution of Officers on Active Duty in General and 
Flag Officer Grades.--Section 525(b)(5)(C) of such title is 
amended by striking ``September 30, 2003'' and inserting 
``December 31, 2004''.
    (c) Authorized Strength for General and Flag Officers on 
Active Duty.--Section 526(b)(3) of such title is amended by 
striking ``October 1, 2002'' and inserting ``December 31, 
2004''.

SEC. 406. INCREASE IN AUTHORIZED STRENGTHS FOR MARINE CORPS OFFICERS ON 
                    ACTIVE DUTY IN THE GRADE OF COLONEL.

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

       ``571
        632
        653
        673
        694
        715
        735''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 2003, as follows:
            (1) The Army National Guard of the United States, 
        350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 87,800.
            (4) The Marine Corps Reserve, 39,558.
            (5) The Air National Guard of the United States, 
        106,600.
            (6) The Air Force Reserve, 75,600.
            (7) The Coast Guard Reserve, 9,000.
    (b) Adjustments.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve 
component shall be proportionately reduced by--
            (1) the total authorized strength of units 
        organized to serve as units of the Selected Reserve of 
        such component which are on active duty (other than for 
        training) at the end of the fiscal year; and
            (2) the total number of individual members not in 
        units organized to serve as units of the Selected 
        Reserve of such component who are on active duty (other 
        than for training or for unsatisfactory participation 
        in training) without their consent at the end of the 
        fiscal year.M

Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength 
prescribed for such fiscal year for the Selected Reserve of 
such reserve component shall be proportionately increased by 
the total authorized strengths of such units and by the total 
number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 2003, the following number of Reserves to be 
serving on full-time active duty or full-time duty, in the case 
of members of the National Guard, for the purpose of 
organizing, administering, recruiting, instructing, or training 
the reserve components:
            (1) The Army National Guard of the United States, 
        24,562.
            (2) The Army Reserve, 14,070.
            (3) The Naval Reserve, 14,572.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 
        11,727.
            (6) The Air Force Reserve, 1,498.

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

    The minimum number of military technicians (dual status) as 
of the last day of fiscal year 2003 for the reserve components 
of the Army and the Air Force (notwithstanding section 129 of 
title 10, United States Code) shall be the following:
            (1) For the Army National Guard of the United 
        States, 24,102.
            (2) For the Army Reserve, 6,599.
            (3) For the Air National Guard of the United 
        States, 22,495.
            (4) For the Air Force Reserve, 9,911.

SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

    (a) Army.--The number of non-dual status technicians 
employed by the reserve components of the Army as of September 
30, 2003, may not exceed the following:
            (1) For the Army Reserve, 995.
            (2) For the Army National Guard of the United 
        States, 1,600, to be counted within the limitation 
        specified in section 10217(c)(2) of title 10, United 
        States Code.
    (b) Air Force.--The number of non-dual status technicians 
employed by the reserve components of the Army and the Air 
Force as of September 30, 2003, may not exceed the following:
            (1) For the Air Force Reserve, 90.
            (2) For the Air National Guard of the United 
        States, 350, to be counted within the limitation 
        specified in section 10217(c)(2) of title 10, United 
        States Code.
    (c) Non-Dual Status Technicians Defined.--In this section, 
the term ``non-dual status technician'' has the meaning given 
that term in section 10217(a) of title 10, United States Code.
    (d) Technical Amendments.--Section 10217(c)(2) of title 10, 
United States Code, is amended--
            (1) in the first sentence, by striking ``Effective 
        October 1, 2002, the'' and inserting ``The''; and
            (2) in the second sentence, by striking ``after the 
        preceding sentence takes effect''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal year 
2003 a total of $93,829,525,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 2003.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of good-of-the-service waiver authority for officers 
          appointed to a Reserve Chief or Guard Director position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
          grant a waiver of required completion or sequencing for joint 
          professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
          aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
          requirement for retirement in grade for officers in grades 
          above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending review 
          of a recommendation for removal by a board of inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
          and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
          service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
          reserve component Special Operations Forces personnel engaged 
          in humanitarian assistance activities relating to clearing of 
          landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
          terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
          personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
          general for certain reserve component brigadier generals who 
          do not otherwise qualify for consideration for promotion under 
          the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
          mandatory retirement or separation of reserve component 
          officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
          national service.
Sec. 532. Authority for phased increase to 4,400 in authorized strengths 
          for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
          participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
          participants for benefits under student loan repayment 
          program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
          Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
          awarded for Operation Frequent Wind to Vietnam Service Medal.
Sec. 543. Korea Defense Service Medal.
Sec. 544. Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
          Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
          responsible for review and correction of military records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
          as proctors for administration of Armed Services Vocational 
          Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
          the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
          Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
          military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
          enlisted personnel for rest and recuperation absence upon 
          extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
          ordered to a nonforeign duty station outside continental 
          United States.

                           Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
          separate courses of basic instruction for judge advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
          Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
          components in emergency response to the terrorist attacks of 
          September 11, 2001.

                  Subtitle A--Officer Personnel Policy

SEC. 501. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER AUTHORITY FOR 
                    OFFICERS APPOINTED TO A RESERVE CHIEF OR GUARD 
                    DIRECTOR POSITION.

    (a) Waiver of Requirement for Significant Joint Duty 
Experience.--Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 
8038(b)(4), and 10506(a)(3)(D) of title 10, United States Code, 
are each amended by striking ``October 1, 2003'' and inserting 
``December 31, 2004''.
    (b) Report on Future Implementation of Requirement.--Not 
later than May 1, 2003, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a 
report--
            (1) setting forth the steps that have been taken by 
        the Secretary, the Secretaries of the military 
        departments, and the Chairman of the Joint Chiefs of 
        Staff to ensure that Reserve and National Guard 
        officers receive significant joint duty experience; and
            (2) specifying the date by which no further 
        extension of the waiver authority under the sections 
        amended by subsection (a) will be required.

SEC. 502. EXCLUSION OF CERTAIN OFFICERS FROM LIMITATION ON AUTHORITY TO 
                    GRANT A WAIVER OF REQUIRED COMPLETION OR SEQUENCING 
                    FOR JOINT PROFESSIONAL MILITARY EDUCATION.

    (a) Exclusion From Limitation.--There shall be excluded 
from counting for purposes of the 10-percent limitation set 
forth in the last sentence of section 661(c)(3)(D) of title 10, 
United States Code (limiting the authority to grant waivers 
related to sequencing or completion of program of joint 
professional military education), any officer selected for the 
joint specialty who--
            (1) on December 28, 2001, met the requirements of 
        section 661(c) of such title for nomination for the 
        joint specialty, but who had not been nominated for 
        that specialty before that date by the Secretary of the 
        military department concerned; and
            (2) before the date of the enactment of this Act 
        was automatically nominated for the joint specialty as 
        a result of section 661(b)(2) of such title.
    (b) Termination.--The provisions of subsection (a) shall 
terminate on October 1, 2006.
    (c) Cross-Reference Correction.--Section 661(c)(3)(E) of 
title 10, United States Code, is amended by striking 
``subparagraph'' and inserting ``paragraph''.

SEC. 503. EXTENSION AND CODIFICATION OF AUTHORITY FOR RECALL OF RETIRED 
                    AVIATORS TO ACTIVE DUTY.

    (a) In General.--(1) Chapter 39 of title 10, United States 
Code, is amended by inserting after section 688 the following 
new section:

``Sec. 688a. Retired aviators: temporary authority to order to active 
                    duty

    ``(a) Authority.--The Secretary of a military department 
may order to active duty a retired officer having expertise as 
an aviator to fill staff positions normally filled by aviators 
on active duty. Any such order may be made only with the 
consent of the officer ordered to active duty and in accordance 
with an agreement between the Secretary and the officer.
    ``(b) Duration.--The period of active duty of an officer 
under an order to active duty under subsection (a) shall be 
specified in the agreement entered into under that subsection.
    ``(c) Limitation.--No more than a total of 500 officers may 
be on active duty at any time under subsection (a).
    ``(d) Relationship to Other Authority.--The authority to 
order a retired officer to active duty under this section is in 
addition to the authority under section 688 of this title or 
any other provision of law authorizing the Secretary concerned 
to order a retired member to active duty.
    ``(e) Inapplicability of Certain Provisions.--Officers 
ordered to active duty under subsection (a) shall not be 
counted for purposes of section 688 or 690 of this title.
    ``(f) Expiration of Authority.--An officer may not be 
ordered to active duty under this section after September 30, 
2008.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 688 
the following new item:

``688a. Retired aviators: temporary authority to order to active 
          duty.''.

    (b) Grade in Which Ordered to Active Duty and Upon Release 
From Active Duty.--(1) Section 689 of such title is amended by 
inserting ``or 688a'' after ``section 688'' each place it 
appears.
    (2) The provisions of section 689(d) of title 10, United 
States Code, shall apply with respect to an officer ordered to 
active duty under section 501 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 
Stat. 589) before the date of the enactment of this Act in the 
same manner as such provisions apply to an officer ordered to 
active duty under section 688 of such title.
    (c) Transition Provision.--Any officer ordered to active 
duty under section 501 of the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 589) who 
continues on active duty under such order to active duty after 
the date of the enactment of this Act shall be counted for 
purposes of the limitation under subsection (c) of section 688a 
of title 10, United States Code, as added by subsection (a).

SEC. 504. GRADES FOR CERTAIN POSITIONS.

    (a) Heads of Nurse Corps.--(1) Section 3069(b) of title 10, 
United States Code, is amended by striking ``brigadier 
general'' in the second sentence and inserting ``major 
general''.
    (2) The first sentence of section 5150(c) of such title is 
amended--
            (A) by inserting ``rear admiral, in the case of an 
        officer in the Nurse Corps, or'' after ``for promotion 
        to the grade of''; and
            (B) by inserting ``, in the case of an officer in 
        the Medical Service Corps'' after ``rear admiral (lower 
        half)''.
    (3) Section 8069(b) of such title is amended by striking 
``brigadier general'' in the second sentence and inserting 
``major general''.
    (b) Chief of Veterinary Corps of the Army.--(1) Chapter 307 
of such title is amended by adding at the end the following new 
section:

``Sec. 3084. Chief of Veterinary Corps; grade

    ``The Chief of the Veterinary Corps of the Army serves in 
the grade of brigadier general. An officer appointed to that 
position who holds a lower grade shall be appointed in the 
grade of brigadier general.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``3084. Chief of Veterinary Corps: grade.''.

    (c) Chief of Legislative Liaison of the Army.--(1)(A) 
Chapter 303 of such title is amended by adding at the end the 
following new section:

``Sec. 3023. Chief of Legislative Liaison

    ``(a) There is a Chief of Legislative Liaison in the 
Department of the Army. An officer assigned to that position 
shall be an officer in the grade of major general.
    ``(b) The Chief of Legislative Liaison shall perform 
legislative affairs functions as specified for the Office of 
the Secretary of the Army by section 3014(c)(1)(F) of this 
title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``3023. Chief of Legislative Liaison.''.

    (2) Section 3014(b) of such title is amended--
            (A) by redesignating paragraphs (6) and (7) as 
        paragraphs (7) and (8), respectively; and
            (B) by inserting after paragraph (5) the following 
        new paragraph (6):
            ``(6) The Chief of Legislative Liaison.''.
    (d) Legislative Affairs Positions of the Navy and Marine 
Corps.--(1)(A) Chapter 503 of such title is amended by adding 
at the end the following new section:

``Sec. 5027. Chief of Legislative Affairs

    ``(a) There is a Chief of Legislative Affairs in the 
Department of the Navy. An officer assigned to that position 
shall be an officer in the grade of rear admiral.
    ``(b) The Chief of Legislative Affairs shall perform 
legislative affairs functions as specified for the Office of 
the Secretary of the Navy by section 5014(c)(1)(F) of this 
title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``5027. Chief of Legislative Affairs.''.

    (2) Section 5014(b) of such title is amended--
            (A) by redesignating paragraphs (6) and (7) as 
        paragraphs (7) and (8), respectively; and
            (B) by inserting after paragraph (5) the following 
        new paragraph (6):
            ``(6) The Chief of Legislative Affairs.''.
    (3)(A) Chapter 506 of such title is amended by adding at 
the end the following new section:

``Sec. 5047. Legislative Assistant to the Commandant

    ``There is in the Marine Corps a Legislative Assistant to 
the Commandant. An officer assigned to that position shall be 
in a grade above colonel.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``5047. Legislative Assistant to the Commandant.''.

    (e) Chief of Legislative Liaison of the Air Force.--(1)(A) 
Chapter 803 of such title is amended by adding at the end the 
following new section:

``Sec. 8023. Chief of Legislative Liaison

    ``(a) There is a Chief of Legislative Liaison in the 
Department of the Air Force. An officer assigned to that 
position shall be an officer in the grade of major general.
    ``(b) The Chief of Legislative Liaison shall perform 
legislative affairs functions as specified for the Office of 
the Secretary of the Air Force by section 8014(c)(1)(F) of this 
title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``8023. Chief of Legislative Liaison.''.

    (2) Section 8014(b) of such title is amended--
            (A) by redesignating paragraphs (5) and (6) as 
        paragraphs (6) and (7), respectively; and
            (B) by inserting after paragraph (4) the following 
        new paragraph (5):
            ``(5) The Chief of Legislative Liaison.''.
    (f) Technical Amendment To Provide Correct Statutory Title 
of Grade.--Section 5022(a)(2) of such title is amended by 
striking ``(upper half)''.

SEC. 505. REINSTATEMENT OF AUTHORITY TO REDUCE THREE-YEAR TIME-IN-GRADE 
                    REQUIREMENT FOR RETIREMENT IN GRADE FOR OFFICERS IN 
                    GRADES ABOVE MAJOR AND LIEUTENANT COMMANDER.

    (a) Officers on Active Duty.--Subsection (a)(2) of section 
1370 of title 10, United States Code, is amended--
            (1) in subparagraph (A), by striking ``during the 
        period beginning on October 1, 1990, and ending on 
        December 31, 2001'' and inserting ``during the period 
        beginning on October 1, 2002, and ending on December 
        31, 2003'';
            (2) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (D) and (E), respectively; and
            (3) by inserting after subparagraph (A) the 
        following new subparagraphs (B) and (C):
    ``(B) In the case of an officer to be retired in a general 
or flag officer grade, authority provided by the Secretary of 
Defense to the Secretary of a military department under 
subparagraph (A) may be exercised with respect to that officer 
only if approved by the Secretary of Defense or another 
civilian official in the Office of the Secretary of Defense 
appointed by the President, by and with the advice and consent 
of the Senate.
    ``(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may 
be delegated within that military department only to a civilian 
official of that military department appointed by the 
President, by and with the advice and consent of the Senate.''.
    (b) Reserve Officers.--Subsection (d) of such section is 
amended--
            (1) by designating the second sentence of paragraph 
        (5) as paragraph (6) and in that paragraph by striking 
        ``this paragraph'' and inserting ``paragraph (5)''; and
            (2) in paragraph (5)--
                    (A) by inserting ``(A)'' after ``(5)'';
                    (B) by striking ``in the case of 
                retirements effective during the period 
                beginning on October 17, 1998, and ending on 
                December 31, 2001'' and inserting ``in the case 
                of transfers to the Retired Reserve and 
                discharges of retirement-qualified officers 
                effective during the period beginning on 
                October 1, 2002, and ending on December 31, 
                2003''; and
                    (C) by adding at the end (before paragraph 
                (6) as designated by paragraph (1) of this 
                subsection) the following new subparagraphs:
    ``(B) In the case of a person who, upon transfer to the 
Retired Reserve or discharge, is to be credited with 
satisfactory service in a general or flag officer grade under 
paragraph (1), authority provided by the Secretary of Defense 
to the Secretary of a military department under subparagraph 
(A) may be exercised with respect to that person only if 
approved by the Secretary of Defense or another civilian 
official in the Office of the Secretary of Defense appointed by 
the President, by and with the advice and consent of the 
Senate.
    ``(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may 
be delegated within that military department only to a civilian 
official of that military department appointed by the 
President, by and with the advice and consent of the Senate.''.
    (c) Advance Notice to Congress.--Such section is further 
amended by adding at the end the following new subsection:
    ``(e) Advance Notice to Congressional Committees.--(1) In 
the case of an officer to be retired in a grade that is a 
general or flag officer grade who is eligible to retire in that 
grade only by reason of an exercise of authority under 
paragraph (2) of subsection (a) to reduce the three-year 
service-in-grade requirement otherwise applicable under that 
paragraph, the Secretary of Defense, before the officer is 
retired in that grade, shall notify the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives of the exercise of authority under 
that paragraph with respect to that officer.
    ``(2) In the case of a person to be credited under 
subsection (d) with satisfactory service in a grade that is a 
general or flag officer grade who is eligible to be credited 
with such service in that grade only by reason of an exercise 
of authority under paragraph (5) of that subsection to reduce 
the three-year service-in-grade requirement otherwise 
applicable under paragraph (3)(A) of that subsection, the 
Secretary of Defense, before the person is credited with such 
satisfactory service in that grade, shall notify the Committee 
on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives of the exercise of 
authority under paragraph (5) of that subsection with respect 
to that officer.
    ``(3) In the case of an officer to whom subsection (c) 
applies, the requirement for notification under paragraph (1) 
is satisfied if the notification is included in the 
certification submitted with respect to that officer under 
paragraph (1) of such subsection.''.

SEC. 506. AUTHORITY TO REQUIRE THAT AN OFFICER TAKE LEAVE PENDING 
                    REVIEW OF A RECOMMENDATION FOR REMOVAL BY A BOARD 
                    OF INQUIRY.

    (a) Requirement.--Section 1182(c) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Under regulations prescribed by the Secretary 
concerned, an officer as to whom a board of inquiry makes a 
recommendation under paragraph (1) that the officer not be 
retained on active duty may be required to take leave pending 
the completion of the officer's case under this chapter. The 
officer may be required to begin such leave at any time 
following the officer's receipt of the report of the board of 
inquiry, including the board's recommendation for removal from 
active duty, and the expiration of any period allowed for 
submission by the officer of a rebuttal to that report. The 
leave may be continued until the date on which action by the 
Secretary concerned on the officer's case is completed or may 
be terminated at any earlier time.''.
    (b) Payment for Mandatory Excess Leave Upon Disapproval of 
Certain Involuntary Separation Recommendations.--Chapter 40 of 
such title is amended by inserting after section 707 the 
following new section:

``Sec. 707a. Payment upon disapproval of certain board of inquiry 
                    recommendations for excess leave required to be 
                    taken

    ``(a) An officer--
            ``(1) who is required to take leave under section 
        1182(c)(2) of this title, any period of which is 
        charged as excess leave under section 706(a) of this 
        title, and
            ``(2) whose recommendation for removal from active 
        duty in a report of a board of inquiry is not approved 
        by the Secretary concerned under section 1184 of this 
        title,

shall be paid, as provided in subsection (b), for the period of 
leave charged as excess leave.
    ``(b)(1) An officer entitled to be paid under this section 
shall be deemed, for purposes of this section, to have accrued 
pay and allowances for each day of leave required to be taken 
under section 1182(c)(2) of this title that is charged as 
excess leave (except any day of accrued leave for which the 
officer has been paid under section 706(b)(1) of this title and 
which has been charged as excess leave).
    ``(2) The officer shall be paid the amount of pay and 
allowances that is deemed to have accrued to the officer under 
paragraph (1), reduced by the total amount of his income from 
wages, salaries, tips, other personal service income, 
unemployment compensation, and public assistance benefits from 
any Government agency during the period the officer is deemed 
to have accrued pay and allowances. Except as provided in 
paragraph (3), such payment shall be made within 60 days after 
the date on which the Secretary concerned decides not to remove 
the officer from active duty.
    ``(3) If an officer is entitled to be paid under this 
section, but fails to provide sufficient information in a 
timely manner regarding the officer's income when such 
information is requested under regulations prescribed under 
subsection (c), the period of time prescribed in paragraph (2) 
shall be extended until 30 days after the date on which the 
member provides the information requested.
    ``(c) This section shall be administered under uniform 
regulations prescribed by the Secretaries concerned. The 
regulations may provide for the method of determining an 
officer's income during any period the officer is deemed to 
have accrued pay and allowances, including a requirement that 
the officer provide income tax returns and other documentation 
to verify the amount of the officer's income.''.
    (c) Conforming Amendments.--(1) Section 706 of such title 
is amended--
            (A) by inserting ``or 1182(c)(2)'' after ``section 
        876a'' in subsections (a), (b)(1), (b)(2), and (c); and
            (B) by striking ``section 707'' in subsection 
        (b)(2) and inserting ``sections 707 and 707a''.
    (2) The heading for such section is amended to read as 
follows:

``Sec. 706. Administration of leave required to be taken''.

    (d) Clerical Amendments.--The table of sections at the 
beginning of chapter 40 of such title is amended--
            (1) by striking the item relating to section 706 
        and inserting the following:

``706. Administration of leave required to be taken.'';

            (2) by inserting after the item relating to section 
        707 the following new item:

``707a. Payment upon disapproval of certain board of inquiry 
          recommendations for excess leave required to be taken.''.

                Subtitle B--Reserve Component Management

SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH ACCOUNTING AND MANAGEMENT 
                    AND OTHER ISSUES.

    (a) Comptroller General Assessments.--Not later than one 
year after the date of the enactment of this Act, the 
Comptroller General shall submit to Congress a report on 
management of the National Guard. The report shall include the 
following:
            (1) The Comptroller General's assessment of the 
        effectiveness of the implementation of Department of 
        Defense plans for improving management and accounting 
        for personnel strengths in the National Guard, 
        including an assessment of the process that the 
        Department of Defense, the National Guard Bureau, the 
        Army National Guard and State-level National Guard 
        leadership, and leadership in the other reserve 
        components have for identifying and addressing in a 
        timely manner specific units in which nonparticipation 
        rates are significantly in excess of the established 
        norms.
            (2) The Comptroller General's assessment of the 
        effectiveness of the process for Federal recognition of 
        senior National Guard officers and recommendations for 
        improvement to that process.
            (3) The Comptroller General's assessment of the 
        process for, and the nature and extent of, the 
        administrative or judicial corrective action taken by 
        the Secretary of Defense, the Secretary of the Army, 
        and the Secretary of the Air Force as a result of 
        Inspector General investigations or other 
        investigations in which allegations against senior 
        National Guard officers are substantiated in whole or 
        in part.
            (4) The Comptroller General's determination of the 
        effectiveness of the Federal protections provided for 
        members or employees of the National Guard who report 
        allegations of waste, fraud, abuse, or mismanagement 
        and the nature and extent to which corrective action is 
        taken against those in the National Guard who retaliate 
        against such members or employees.
    (b) Secretary of Defense Report on Different Army and Air 
Force Procedures.--Not later than six months after the date of 
the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report on the differing Army and Air Force 
policies for taking adverse administrative actions against 
National Guard officers in a State status. The report shall 
include the Secretary's determination as to whether changes 
should be made in those policies.

SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN FEDERAL 
                    SERVICE.

    (a) Manner of Prescribing Punishments.--Section 326 of 
title 32, United States Code, is amended by adding at the end 
the following new sentence: ``Punishments shall be as provided 
by the laws of the respective States and Territories, Puerto 
Rico, and the District of Columbia.''.
    (b) Convening Authority.--Section 327 of such title is 
amended to read as follows:

``Sec. 327. Courts-martial of National Guard not in Federal service: 
                    convening authority

    ``(a) In the National Guard not in Federal service, 
general, special, and summary courts-martial may be convened as 
provided by the laws of the respective States and Territories, 
Puerto Rico, and the District of Columbia.
    ``(b) In the National Guard not in Federal service--
            ``(1) general courts-martial may be convened by the 
        President;
            ``(2) special courts-martial may be convened--
                    ``(A) by the commanding officer of a 
                garrison, fort, post, camp, air base, auxiliary 
                air base, or other place where members of the 
                National Guard are on duty; or
                    ``(B) by the commanding officer of a 
                division, brigade, regiment, wing, group, 
                detached battalion, separate squadron, or other 
                detached command; and
            ``(3) summary courts-martial may be convened--
                    ``(A) by the commanding officer of a 
                garrison, fort, post, camp, air base, auxiliary 
                air base, or other place where members of the 
                National Guard are on duty; or
                    ``(B) by the commanding officer of a 
                division, brigade, regiment, wing, group, 
                detached battalion, detached squadron, detached 
                company, or other detachment.
    ``(c) The convening authorities provided under subsection 
(b) are in addition to the convening authorities provided under 
subsection (a).''.
    (c) Repeal of Superseded and Obsolete Provisions.--(1) 
Sections 328, 329, 330, 331, 332, and 333 of title 32, United 
States Code, are repealed.
    (2) The provisions of law repealed by paragraph (1) shall 
continue to apply with respect to courts-martial convened in 
the National Guard not in Federal service before the date of 
the enactment of this Act.
    (d) Clerical Amendments.--The table of sections at the 
beginning of chapter 3 of such title is amended by striking the 
items relating to sections 327, 328, 329, 330, 331, 332, and 
333 and inserting the following:

``327. Courts-martial of National Guard not in Federal service: 
          convening authority.''.

    (e) Models for State Code of Military Justice and State 
Manual for Courts-Martial.--(1) The Secretary of Defense shall 
prepare a model State code of military justice and a model 
State manual for courts-martial to recommend to the States for 
use with respect to the National Guard not in Federal service. 
Both such models shall be consistent with the recommendations 
contained in the report that was issued in 1998 by the 
Department of Defense Panel to Study Military Justice in the 
National Guard not in Federal Service.
    (2) The Secretary shall ensure that adequate support for 
the preparation of the model State code of military justice and 
the model State manual for courts-martial (including the 
detailing of attorneys and other personnel) is provided by the 
General Counsel of the Department of Defense, the Secretary of 
the Army, the Secretary of the Air Force, and the Chief of the 
National Guard Bureau.
    (3) If the funds available to the Chief of the National 
Guard Bureau are insufficient for paying the cost of the 
National Guard Bureau support required under paragraph (2) 
(including increased costs of pay of members of the National 
Guard for additional active duty necessitated by such 
requirement and increased cost of detailed attorneys and other 
staff, allowances, and travel expenses related to such 
support), the Secretary shall, upon request made by the Chief 
of the Bureau, provide such additional funding as the Secretary 
determines necessary to satisfy the requirement for such 
support.
    (4) Not later than one year after the date of the enactment 
of this Act, the Secretary shall submit a report on the actions 
taken to carry out this subsection to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives. The report shall include 
proposals in final form of both the model State code of 
military justice and the model State manual for courts-martial 
required by paragraph (1), together with a discussion of the 
efforts being made to present those proposals to the States for 
their consideration for enactment or adoption, respectively.
    (5) In this subsection, the term ``State'' includes the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, and Guam.

SEC. 513. FISCAL YEAR 2003 FUNDING FOR MILITARY PERSONNEL COSTS OF 
                    RESERVE COMPONENT SPECIAL OPERATIONS FORCES 
                    PERSONNEL ENGAGED IN HUMANITARIAN ASSISTANCE 
                    ACTIVITIES RELATING TO CLEARING OF LANDMINES.

    (a) Use of Reserve Component Military Personnel Funds.--
Fiscal year 2003 reserve component military personnel funds may 
be used for military personnel expenses of reserve component 
Special Operations forces that are incurred during fiscal year 
2003 in connection with landmine clearance assistance, 
notwithstanding section 401(c)(1) of title 10, United States 
Code.
    (b) Reimbursement Requirement.--Fiscal year 2003 reserve 
component military personnel funds shall be reimbursed from 
fiscal year 2003 landmine clearance assistance funds for all 
military personnel expenses of reserve component Special 
Operations forces that are incurred during fiscal year 2003 in 
connection with landmine clearance assistance. Such 
reimbursement shall be made in each instance to the reserve 
component military personnel account that incurred the expense.
    (c) Limitation.--The amount of reserve component military 
personnel expenses incurred during fiscal year 2003 for 
landmine clearance assistance may not exceed 10 percent of the 
amount of fiscal year 2003 landmine clearance assistance funds.
    (d) Definitions.--For purposes of this section:
            (1) Landmine clearance assistance.--The term 
        ``landmine clearance assistance'' means humanitarian 
        and civic assistance provided under section 401 of 
        title 10, United States Code, that is described in 
        subsection (e)(5) of that section.
            (2) Fiscal year 2003 landmine clearance assistance 
        funds.--The term ``fiscal year 2003 landmine clearance 
        assistance funds'' means the total amount appropriated 
        for fiscal year 2003 in operations and maintenance 
        accounts of the Department of Defense that is provided 
        for landmine clearance assistance.
            (3) Fiscal year 2003 reserve component military 
        personnel funds.--The term ``fiscal year 2003 reserve 
        component military personnel funds'' means amounts 
        appropriated for fiscal year 2003 for military 
        personnel expenses of a reserve component of the 
        Department of Defense.
            (4) Military personnel expenses.--The term 
        ``military personnel expenses'' means expenses properly 
        chargeable to a military personnel account of the 
        Department of Defense.
    (e) Legislative Proposal.--The Secretary of Defense shall 
submit to Congress, as part of the budget request of the 
Department of Defense for fiscal year 2004, a legislative 
proposal that would ensure that military personnel expenses for 
both active and reserve component military personnel providing 
landmine clearance assistance are specified in detail and are 
budgeted to be authorized and appropriated from the appropriate 
military personnel accounts.

SEC. 514. USE OF RESERVES TO PERFORM DUTIES RELATING TO DEFENSE AGAINST 
                    TERRORISM.

    (a) Use of Reserves To Perform Duties Relating to Defense 
Against Terrorism.--Section 12304(b) of title 10, United States 
Code, is amended by striking ``involving'' and all that follows 
and inserting ``involving--
            ``(1) a use or threatened use of a weapon of mass 
        destruction; or
            ``(2) a terrorist attack or threatened terrorist 
        attack in the United States that results, or could 
        result, in catastrophic loss of life or property.''.
    (b) Conforming Amendment Relating to Full-Time Support of 
Guard and Reserve Personnel.--Section 12310(c)(1) of such title 
is amended by striking ``involving'' and all that follows and 
inserting ``involving--
            ``(A) the use of a weapon of mass destruction (as 
        defined in section 12304(i)(2) of this title); or
            ``(B) a terrorist attack or threatened terrorist 
        attack in the United States that results, or could 
        result, in catastrophic loss of life or property.''.

SEC. 515. REPEAL OF PROHIBITION ON USE OF AIR FORCE RESERVE AGR 
                    PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.

    (a) Repeal.--Section 12551 of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 1215 of such title is amended by striking 
the item relating to section 12551.

         Subtitle C--Reserve Component Officer Personnel Policy

SEC. 521. ELIGIBILITY FOR CONSIDERATION FOR PROMOTION TO GRADE OF MAJOR 
                    GENERAL FOR CERTAIN RESERVE COMPONENT BRIGADIER 
                    GENERALS WHO DO NOT OTHERWISE QUALIFY FOR 
                    CONSIDERATION FOR PROMOTION UNDER THE ONE-YEAR 
                    RULE.

    Section 14301(g) of title 10, United States Code, is 
amended to read as follows:
    ``(g) Brigadier Generals.--(1) An officer who is a reserve 
component brigadier general of the Army or the Air Force who is 
not eligible for consideration for promotion under subsection 
(a) because the officer is not on the reserve active status 
list (as required by paragraph (1) of that subsection for such 
eligibility) is nevertheless eligible for consideration for 
promotion to the grade of major general by a promotion board 
convened under section 14101(a) of this title if--
            ``(A) as of the date of the convening of the 
        promotion board, the officer has been in an inactive 
        status for less than one year; and
            ``(B) immediately before the date of the officer's 
        most recent transfer to an inactive status, the officer 
        had continuously served on the reserve active status 
        list or the active-duty list (or a combination of the 
        reserve active status list and the active-duty list) 
        for at least one year.
    ``(2) An officer who is a reserve component brigadier 
general of the Army or the Air Force who is on the reserve 
active status list but who is not eligible for consideration 
for promotion under subsection (a) because the officer's 
service does not meet the one-year-of-continuous-service 
requirement under paragraph (2) of that subsection is 
nevertheless eligible for consideration for promotion to the 
grade of major general by a promotion board convened under 
section 14101(a) of this title if--
            ``(A) the officer was transferred from an inactive 
        status to the reserve active status list during the 
        one-year period preceding the date of the convening of 
        the promotion board;
            ``(B) immediately before the date of the officer's 
        most recent transfer to an active status, the officer 
        had been in an inactive status for less than one year; 
        and
            ``(C) immediately before the date of the officer's 
        most recent transfer to an inactive status, the officer 
        had continuously served for at least one year on the 
        reserve active status list or the active-duty list (or 
        a combination of the reserve active status list and the 
        active-duty list).''.

SEC. 522. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF 
                    MANDATORY RETIREMENT OR SEPARATION OF RESERVE 
                    COMPONENT OFFICERS.

    (a) Authority.--Chapter 1407 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 14519. Deferment of retirement or separation for medical reasons

    ``(a) Authority.--If, in the case of an officer required to 
be retired or separated under this chapter or chapter 1409 of 
this title, the Secretary concerned determines that the 
evaluation of the physical condition of the officer and 
determination of the officer's entitlement to retirement or 
separation for physical disability require hospitalization or 
medical observation and that such hospitalization or medical 
observation cannot be completed with confidence in a manner 
consistent with the officer's well being before the date on 
which the officer would otherwise be required to retire or be 
separated, the Secretary may defer the retirement or separation 
of the officer.
    ``(b) Period of Deferment.--A deferral of retirement or 
separation under subsection (a) may not extend for more than 30 
days after the completion of the evaluation requiring 
hospitalization or medical observation.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``14519. Deferment of retirement or separation for medical reasons.''.

        Subtitle D--Enlistment, Education, and Training Programs

SEC. 531. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO FACILITATE 
                    NATIONAL SERVICE.

    (a) Authority.--(1) Chapter 31 of title 10, United States 
Code, is amended by inserting after section 509 the following 
new section:

``Sec. 510. Enlistment incentives for pursuit of skills to facilitate 
                    national service

    ``(a) Enlistment Incentive Program.--The Secretary of 
Defense shall carry out an enlistment incentive program in 
accordance with this section under which a person who is a 
National Call to Service participant shall be entitled to one 
of the incentives specified in subsection (e). The program 
shall be carried out during the period ending on December 31, 
2007, and may be carried out after that date.
    ``(b) National Call to Service Participant.--In this 
section, the term `National Call to Service participant' means 
a person who has not previously served in the armed forces who 
enters into an original enlistment pursuant to a written 
agreement with the Secretary of a military department (in such 
form and manner as may be prescribed by that Secretary) under 
which the person agrees to perform a period of national service 
as specified in subsection (c).
    ``(c) National Service.--The total period of national 
service to which a National Call to Service participant is 
obligated under the agreement under this section shall be 
specified in the agreement. Under the agreement, the 
participant shall--
            ``(1) upon completion of initial entry training (as 
        prescribed by the Secretary of Defense), serve on 
        active duty in a military occupational specialty 
        designated by the Secretary of Defense under subsection 
        (d) for a period of 15 months;
            ``(2) upon completion of the period of active duty 
        specified in paragraph (1) and without a break in 
        service, serve either (A) an additional period of 
        active duty as determined by the Secretary of Defense, 
        or (B) a period of 24 months in an active status in the 
        Selected Reserve; and
            ``(3) upon completion of the period of service 
        specified in paragraph (2), and without a break in 
        service, serve the remaining period of obligated 
        service specified in the agreement--
                    ``(A) on active duty in the armed forces;
                    ``(B) in the Selected Reserve;
                    ``(C) in the Individual Ready Reserve;
                    ``(D) in the Peace Corps, Americorps, or 
                another national service program jointly 
                designated by the Secretary of Defense and the 
                head of such program for purposes of this 
                section; or
                    ``(E) in any combination of service 
                referred to in subparagraphs (A) through (D) 
                that is approved by the Secretary of the 
                military department concerned pursuant to 
                regulations prescribed by the Secretary of 
                Defense and specified in the agreement.
    ``(d) Designated Military Occupational Specialties.--The 
Secretary of Defense shall designate military occupational 
specialties for purposes of subsection (c)(1). Such military 
occupational specialties shall be military occupational 
specialties that, as determined by the Secretary, will 
facilitate pursuit of national service by National Call to 
Service participants.
    ``(e) Incentives.--The incentives specified in this 
subsection are as follows:
            ``(1) Payment of a bonus in the amount of $5,000.
            ``(2) Payment in an amount not to exceed $18,000 of 
        outstanding principal and interest on qualifying 
        student loans of the National Call to Service 
        participant.
            ``(3) Entitlement to an allowance for educational 
        assistance at the monthly rate equal to the monthly 
        rate payable for basic educational assistance 
        allowances under section 3015(a)(1) of title 38 for a 
        total of 12 months.
            ``(4) Entitlement to an allowance for educational 
        assistance at the monthly rate equal to 50 percent of 
        the monthly rate payable for basic educational 
        assistance allowances under section 3015(b)(1) of title 
        38 for a total of 36 months.
    ``(f) Election of Incentive.--A National Call to Service 
participant shall elect in the agreement under subsection (b) 
which incentive under subsection (e) to receive. An election 
under this subsection is irrevocable.
    ``(g) Payment of Bonus Amounts.--(1) Payment to a National 
Call to Service participant of the bonus elected by the 
National Call to Service participant under subsection (e)(1) 
shall be made in such time and manner as the Secretary of 
Defense shall prescribe.
    ``(2)(A) Payment of outstanding principal and interest on 
the qualifying student loans of a National Call to Service 
participant, as elected under subsection (e)(2), shall be made 
in such time and manner as the Secretary of Defense shall 
prescribe.
    ``(B) Payment under this paragraph of the outstanding 
principal and interest on the qualifying student loans of a 
National Call to Service participant shall be made to the 
holder of such student loans, as identified by the National 
Call to Service participant to the Secretary of the military 
department concerned for purposes of such payment.
    ``(3) Payment of a bonus or incentive in accordance with 
this subsection shall be made by the Secretary of the military 
department concerned.
    ``(h) Coordination With Montgomery GI Bill Benefits.--
(1)(A) Subject to subparagraph (B), a National Call to Service 
participant who elects an incentive under paragraph (3) or (4) 
of subsection (e) is not entitled to additional educational 
assistance under chapter 1606 of this title or to basic 
educational assistance under subchapter II of chapter 30 of 
title 38.
    ``(B) If a National Call to Service participant meets all 
eligibility requirements specified in chapter 1606 of this 
title or chapter 30 of title 38 for entitlement to allowances 
for educational assistance under either such chapter, the 
participant may become eligible for allowances for educational 
assistance benefits under either such chapter up to the maximum 
allowance provided less the total amount of allowance paid 
under paragraph (3) or (4) of subsection (e).
    ``(2)(A) The Secretary of Defense shall, to the maximum 
extent practicable, administer the receipt by National Call to 
Service participants of incentives under paragraph (3) or (4) 
of subsection (e) as if such National Call to Service 
participants were, in receiving such incentives, receiving 
educational assistance for members of the Selected Reserve 
under chapter 1606 of this title.
    ``(B) The Secretary of Defense shall, in consultation with 
the Secretary of Veterans Affairs, prescribe regulations for 
purposes of subparagraph (A). Such regulations shall, to the 
maximum extent practicable, take into account the 
administrative provisions of chapters 30 and 36 of title 38 
that are specified in section 16136 of this title.
    ``(3)(A) Except as provided in paragraph (1), nothing in 
this section shall prohibit a National Call to Service 
participant who satisfies through service under subsection (c) 
the eligibility requirements for educational assistance under 
chapter 1606 of this title or basic educational assistance 
under chapter 30 of title 38 from an entitlement to such 
educational assistance under chapter 1606 of this title or 
basic educational assistance under chapter 30 of title 38, as 
the case may be.
    ``(B)(i) A participant who made an election not to receive 
educational assistance under either such chapter at the 
applicable time specified under law or who was denied the 
opportunity to make an election may revoke that election or 
make an initial election, as the case may be, at such time and 
in such manner as the Secretary concerned may specify. A 
revocation or initial election under the preceding sentence is 
irrevocable.
    ``(ii) The participant making a revocation or initial 
election under clause (i) shall be eligible for educational 
assistance under either such chapter at such time as the 
participant satisfies through service the applicable 
eligibility requirements under either such chapter.
    ``(i) Repayment.--(1) If a National Call to Service 
participant who has entered into an agreement under subsection 
(b) and received or benefited from an incentive under 
subsection (e)(1) or (e)(2) fails to complete the total period 
of service specified in such agreement, the National Call to 
Service participant shall refund to the United States the 
amount that bears the same ratio to the amount of the incentive 
as the uncompleted part of such service bears to the total 
period of such service.
    ``(2) Subject to paragraph (3), an obligation to reimburse 
the United States imposed under paragraph (1) is for all 
purposes a debt owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in 
part, a reimbursement required under paragraph (1) if the 
Secretary concerned determines that recovery would be against 
equity and good conscience or would be contrary to the best 
interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is 
entered into less than five years after the termination of an 
agreement entered into under subsection (b) does not discharge 
the person signing the agreement from a debt arising under the 
agreement or under paragraph (1).
    ``(j) Funding.--Amounts for payment of incentives under 
subsection (e), including payment of allowances for educational 
assistance under that subsection, shall be derived from amounts 
available to the Secretary of the military department concerned 
for payment of pay, allowances, and other expenses of the 
members of the armed force concerned.
    ``(k) Regulations.--The Secretary of Defense and the 
Secretaries of the military departments shall prescribe 
regulations for purposes of the program under this section.
    ``(l) Definitions.--In this section:
            ``(1) The term `Americorps' means the Americorps 
        program carried out under subtitle C of title I of the 
        National and Community Service Act of 1990 (42 U.S.C. 
        12571 et seq.).
            ``(2) The term `qualifying student loan' means a 
        loan, the proceeds of which were used to pay any part 
        or all of the cost of attendance (as defined in section 
        472 of the Higher Education Act of 1965 (20 U.S.C. 
        1087ll) at an institution of higher education (as 
        defined in section 101 of the Higher Education Act of 
        1965 (20 U.S.C. 1001).
            ``(3) The term `Secretary of a military department' 
        includes, with respect to matters concerning the Coast 
        Guard when it is not operating as a service in the 
        Navy, the Secretary of the Department in which the 
        Coast Guard is operating.''.
    (2) The table of sections at the beginning of that chapter 
is amended by inserting after the item relating to section 509 
the following new item:

``510. Enlistment incentives for pursuit of skills to facilitate 
          national service.''.

    (b) Commencement of Program.--The Secretary of Defense 
shall prescribe the date on which the program provided for 
section 510 of title 10, United States Code, as added by 
subsection (a), shall commence. Such date shall be not later 
than October 1, 2003.
    (c) Conforming Repeal.--Section 3264 of title 10, United 
States Code, is repealed. The table of sections at the 
beginning of chapter 333 of such title is amended by striking 
the item relating to section 3264.
    (d) Implementation Report.--Not later than March 31, 2003, 
the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a 
report on the Secretary's plans for implementation of section 
510 of title 10, United States Code, as added by subsection 
(a).
    (e) Effectiveness Reports.--Not later than March 31, 2005, 
and March 31, 2007, the Secretary of Defense shall submit to 
the committees specified in subsection (d) reports on the 
effectiveness of the program under section 510 of title 10, 
United States Code, as added by subsection (a), in attracting 
new recruits to national service.

SEC. 532. AUTHORITY FOR PHASED INCREASE TO 4,400 IN AUTHORIZED 
                    STRENGTHS FOR THE SERVICE ACADEMIES.

    (a) Military Academy.--Section 4342 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the 
        period at the end of the first sentence the following: 
        ``or such higher number as may be prescribed by the 
        Secretary of the Army under subsection (j)''; and
            (2) by adding at the end the following new 
        subsection:
    ``(j)(1) Beginning with the 2003-2004 academic year, the 
Secretary of the Army may prescribe annual increases in the 
cadet strength limit in effect under subsection (a). For any 
academic year, any such increase shall be by no more than 100 
cadets or such lesser number as applies under paragraph (3) for 
that year. Such annual increases may be prescribed until the 
cadet strength limit is 4,400. However, no increase may be 
prescribed for any academic year after the 2007-2008 academic 
year.
    ``(2) Any increase in the cadet strength limit under 
paragraph (1) with respect to an academic year shall be 
prescribed not later than the date on which the budget of the 
President is submitted to Congress under section 1105 of title 
31 for the fiscal year beginning in the same year as the year 
in which that academic year begins. Whenever the Secretary 
prescribes such an increase, the Secretary shall submit to 
Congress a notice in writing of the increase. The notice shall 
state the amount of the increase in the cadet strength limit 
and the new cadet strength limit, as so increased, and the 
amount of the increase in Senior Army Reserve Officers' 
Training Corps enrollment under each of sections 2104 and 2107 
of this title.
    ``(3) The amount of an increase under paragraph (1) in the 
cadet strength limit for an academic year may not exceed the 
increase (if any) for the preceding academic year in the total 
number of cadets enrolled in the Army Senior Reserve Officers' 
Training Corps program under chapter 103 of this title who have 
entered into an agreement under section 2104 or 2107 of this 
title.
    ``(4) In this subsection, the term `cadet strength limit' 
means the authorized maximum strength of the Corps of Cadets of 
the Academy.''.
    (b) Naval Academy.--Section 6954 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by inserting before the 
        period at the end of the first sentence the following: 
        ``or such higher number as may be prescribed by the 
        Secretary of the Navy under subsection (h)''; and
            (2) by adding at the end the following new 
        subsection:
    ``(h)(1) Beginning with the 2003-2004 academic year, the 
Secretary of the Navy may prescribe annual increases in the 
midshipmen strength limit in effect under subsection (a). For 
any academic year, any such increase shall be by no more than 
100 midshipmen or such lesser number as applies under paragraph 
(3) for that year. Such annual increases may be prescribed 
until the midshipmen strength limit is 4,400. However, no 
increase may be prescribed for any academic year after the 
2007-2008 academic year.
    ``(2) Any increase in the midshipmen strength limit under 
paragraph (1) with respect to an academic year shall be 
prescribed not later than the date on which the budget of the 
President is submitted to Congress under section 1105 of title 
31 for the fiscal year beginning in the same year as the year 
in which that academic year begins. Whenever the Secretary 
prescribes such an increase, the Secretary shall submit to 
Congress a notice in writing of the increase. The notice shall 
state the amount of the increase in the midshipmen strength 
limit and the new midshipmen strength limit, as so increased, 
and the amount of the increase in Senior Navy Reserve Officers' 
Training Corps enrollment under each of sections 2104 and 2107 
of this title.
    ``(3) The amount of an increase under paragraph (1) in the 
midshipmen strength limit for an academic year may not exceed 
the increase (if any) for the preceding academic year in the 
total number of midshipmen enrolled in the Navy Senior Reserve 
Officers' Training Corps program under chapter 103 of this 
title who have entered into an agreement under section 2104 or 
2107 of this title.
    ``(4) In this subsection, the term `midshipmen strength 
limit' means the authorized maximum strength of the Brigade of 
Midshipmen.''.
    (c) Air Force Academy.--Section 9342 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the 
        period at the end of the first sentence the following: 
        ``or such higher number as may be prescribed by the 
        Secretary of the Air Force under subsection (j)''; and
            (2) by adding at the end the following new 
        subsection:
    ``(j)(1) Beginning with the 2003-2004 academic year, the 
Secretary of the Air Force may prescribe annual increases in 
the cadet strength limit in effect under subsection (a). For 
any academic year, any such increase shall be by no more than 
100 cadets or such lesser number as applies under paragraph (3) 
for that year. Such annual increases may be prescribed until 
the cadet strength limit is 4,400. However, no increase may be 
prescribed for any academic year after the 2007-2008 academic 
year.
    ``(2) Any increase in the cadet strength limit under 
paragraph (1) with respect to an academic year shall be 
prescribed not later than the date on which the budget of the 
President is submitted to Congress under sections 1105 of title 
31 for the fiscal year beginning in the same year as the year 
in which that academic year begins. Whenever the Secretary 
prescribes such an increase, the Secretary shall submit to 
Congress a notice in writing of the increase. The notice shall 
state the amount of the increase in the cadet strength limit 
and the new cadet strength limit, as so increased, and the 
amount of the increase in Senior Air Force Reserve Officers' 
Training Corps enrollment under each of sections 2104 and 2107 
of this title.
    ``(3) The amount of an increase under paragraph (1) in the 
cadet strength limit for an academic year may not exceed the 
increase (if any) for the preceding academic year in the total 
number of cadets enrolled in the Air Force Senior Reserve 
Officers' Training Corps program under chapter 103 of this 
title who have entered into an agreement under section 2104 or 
2107 of this title.
    ``(4) In this subsection, the term `cadet strength limit' 
means the authorized maximum strength of Air Force Cadets of 
the Academy.''.
    (d) Target for Increases in Number of ROTC Scholarship 
Participants.--Section 2107 of such title is amended by adding 
at the end the following new subsection:
    ``(i) The Secretary of each military department shall seek 
to achieve an increase in the number of agreements entered into 
under this section so as to achieve an increase, by the 2006-
2007 academic year, of not less than 400 in the number of 
cadets or midshipmen, as the case may be, enrolled under this 
section, compared to such number enrolled for the 2002-2003 
academic year. In the case of the Secretary of the Navy, the 
Secretary shall seek to ensure that not less than one-third of 
such increase in agreements under this section are with 
students enrolled (or seeking to enroll) in programs of study 
leading to a baccalaureate degree in nuclear engineering or 
another appropriate technical, scientific, or engineering field 
of study.''.
    (e) Repeal of Limit on Number of ROTC Scholarships.--
Section 2107 of such title is further amended by striking the 
first sentence of subsection (h)(1).
    (f) Repeal of Obsolete Language.--Section 4342(i) of such 
title is amended by striking ``(beginning with the 2001-2002 
academic year)''.

SEC. 533. ENHANCEMENT OF RESERVE COMPONENT DELAYED TRAINING PROGRAM.

    (a) Increase in Time Following Enlistment for Commencement 
of Initial Period of Active Duty for Training.--Section 
12103(d) of title 10, United States Code, is amended by 
striking ``270 days'' in the last sentence and inserting ``one 
year''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to enlistments under section 12103(d) 
of title 10, United States Code, after the end of the 90-day 
period beginning on the date of the enactment of this Act.
    (c) Transition.--In the case of a person who enlisted under 
section 12103(d) of title 10, United States Code, before the 
date of the enactment of this Act and who as of such date has 
not commenced the required initial period of active duty for 
training under that section, the amendment made by subsection 
(a) may be applied to that person, but only with the agreement 
of that person and the Secretary concerned.

SEC. 534. REVIEW OF ARMED FORCES PROGRAMS FOR PREPARATION FOR, 
                    PARTICIPATION IN, AND CONDUCT OF ATHLETIC 
                    COMPETITIONS.

    (a) Requirement for Review.--The Secretary of Defense shall 
conduct a comprehensive review of the programs of the active 
and reserve components of the Armed Forces for preparation for, 
participation in, and conduct of athletic competitions.
    (b) Consideration of Funding.--The matters reviewed under 
subsection (a) shall include the funding sources that are 
currently available for the programs referred to in such 
subsection and any relevant limitations on the use of such 
funding sources.
    (c) Report.--Not later than March 3, 2003, the Secretary 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the Secretary's 
findings and conclusions resulting from the review. The report 
shall include the following matters:
            (1) The Secretary's views on the adequacy of the 
        existing funding sources for the programs referred to 
        in subsection (a).
            (2) Any recommendations that the Secretary may have 
        regarding limitations on the use of such funding 
        sources or any inadequacies in the funding for such 
        programs.
            (3) An assessment of the issues related to, and 
        recommendations of the Secretary for, achieving 
        consistent funding and policy treatment with regard to 
        participation by active and reserve component personnel 
        in athletic competitions.
            (4) Any recommended legislation that the Secretary 
        considers appropriate regarding such programs.

SEC. 535. REPEAL OF BAR TO ELIGIBILITY OF ARMY COLLEGE FIRST PROGRAM 
                    PARTICIPANTS FOR BENEFITS UNDER STUDENT LOAN 
                    REPAYMENT PROGRAM.

    Subsection (e) of section 573 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65; 10 
U.S.C. 513 note) is repealed.

                   Subtitle E--Decorations and Awards

SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF ARMY DISTINGUISHED-
                    SERVICE CROSS TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy 
for the time within which a recommendation for the award of a 
military decoration or award must be submitted shall not apply 
to awards of decorations described in subsection (b), the award 
of each such decoration having been determined by the Secretary 
of the Army to be warranted in accordance with section 1130 of 
title 10, United States Code.
    (b) Distinguished-Service Cross of the Army.--Subsection 
(a) applies to the award of the Distinguished-Service Cross of 
the Army as follows:
            (1) To Henry Johnson of Albany, New York, for 
        extraordinary heroism in France during the period of 
        May 13 to 15, 1918, while serving as a member of the 
        Army.
            (2) To Hilliard Carter of Jackson, Mississippi, for 
        extraordinary heroism in actions near Troung Loung, 
        Republic of Vietnam, on September 28, 1966, while 
        serving as a member of the Army.
            (3) To Albert C. Welch of Florrisant, Colorado, for 
        extraordinary heroism in actions in Ong Thanh, Binh 
        Long Province, Republic of Vietnam, on October 17, 
        1967, while serving as a member of the Army.

SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES EXPEDITIONARY MEDAL 
                    AWARDED FOR OPERATION FREQUENT WIND TO VIETNAM 
                    SERVICE MEDAL.

    (a) In General.--The Secretary of the military department 
concerned shall, upon the application of an individual who is 
an eligible Vietnam evacuation veteran, award that individual 
the Vietnam Service Medal, notwithstanding any otherwise 
applicable requirements for the award of that medal. Any such 
award shall be made in lieu of the Armed Forces Expeditionary 
Medal awarded the individual for participation in Operation 
Frequent Wind.
    (b) Eligible Vietnam Evacuation Veteran.--For purposes of 
this section, the term ``eligible Vietnam evacuation veteran'' 
means a member or former member of the Armed Forces who was 
awarded the Armed Forces Expeditionary Medal for participation 
in military operations designated as Operation Frequent Wind 
arising from the evacuation of Vietnam on April 29 and 30, 
1975.

SEC. 543. KOREA DEFENSE SERVICE MEDAL.

    (a) Findings.--Congress makes the following findings:
            (1) More than 40,000 members of the United States 
        Armed Forces have served in the Republic of Korea or 
        the waters adjacent thereto each year since the signing 
        of the cease-fire agreement in July 1953 ending the 
        Korean War.
            (2) An estimated 1,200 members of the United States 
        Armed Forces have died as a direct result of their 
        service in Korea since the cease-fire agreement in July 
        1953.
    (b) Army.--(1) Chapter 357 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 3755. Korea Defense Service Medal

    ``(a) The Secretary of the Army shall issue a campaign 
medal, to be known as the Korea Defense Service Medal, to each 
person who while a member of the Army served in the Republic of 
Korea or the waters adjacent thereto during the KDSM 
eligibility period and met the service requirements for the 
award of that medal prescribed under subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' 
means the period beginning on July 28, 1954, and ending on such 
date after the date of the enactment of this section as may be 
determined by the Secretary of Defense to be appropriate for 
terminating eligibility for the Korea Defense Service Medal.
    ``(c) The Secretary of the Army shall prescribe service 
requirements for eligibility for the Korea Defense Service 
Medal. Those requirements shall not be more stringent than the 
service requirements for award of the Armed Forces 
Expeditionary Medal for instances in which the award of that 
medal is authorized.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``3755. Korea Defense Service Medal.''.

    (c) Navy and Marine Corps.--(1) Chapter 567 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 6257. Korea Defense Service Medal

    ``(a) The Secretary of the Navy shall issue a campaign 
medal, to be known as the Korea Defense Service Medal, to each 
person who while a member of the Navy or Marine Corps served in 
the Republic of Korea or the waters adjacent thereto during the 
KDSM eligibility period and met the service requirements for 
the award of that medal prescribed under subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' 
means the period beginning on July 28, 1954, and ending on such 
date after the date of the enactment of this section as may be 
determined by the Secretary of Defense to be appropriate for 
terminating eligibility for the Korea Defense Service Medal.
    ``(c) The Secretary of the Navy shall prescribe service 
requirements for eligibility for the Korea Defense Service 
Medal. Those requirements shall not be more stringent than the 
service requirements for award of the Armed Forces 
Expeditionary Medal for instances in which the award of that 
medal is authorized.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``6257. Korea Defense Service Medal.''.

    (d) Air Force.--(1) Chapter 857 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 8755. Korea Defense Service Medal

    ``(a) The Secretary of the Air Force shall issue a campaign 
medal, to be known as the Korea Defense Service Medal, to each 
person who while a member of the Air Force served in the 
Republic of Korea or the waters adjacent thereto during the 
KDSM eligibility period and met the service requirements for 
the award of that medal prescribed under subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' 
means the period beginning on July 28, 1954, and ending on such 
date after the date of the enactment of this section as may be 
determined by the Secretary of Defense to be appropriate for 
terminating eligibility for the Korea Defense Service Medal.
    ``(c) The Secretary of the Air Force shall prescribe 
service requirements for eligibility for the Korea Defense 
Service Medal. Those requirements shall not be more stringent 
than the service requirements for award of the Armed Forces 
Expeditionary Medal for instances in which the award of that 
medal is authorized.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``8755. Korea Defense Service Medal.''.

    (e) Award for Service Before Date of Enactment.--The 
Secretary of the military department concerned shall take 
appropriate steps to provide in a timely manner for the 
issuance of the Korea Defense Service Medal, upon application 
therefor, to persons whose eligibility for that medal is by 
reason of service in the Republic of Korea or the waters 
adjacent thereto before the date of the enactment of this Act.

SEC. 544. COMMENDATION OF MILITARY CHAPLAINS.

    (a) Findings.--Congress finds the following:
            (1) Military chaplains have served with those who 
        fought for the cause of freedom since the founding of 
        the Nation.
            (2) Military chaplains and religious support 
        personnel of the Armed Forces have served with 
        distinction as uniformed members of the Armed Forces in 
        support of the Nation's defense missions during every 
        conflict in the history of the United States.
            (3) 400 United States military chaplains have died 
        in combat, some as a result of direct fire while 
        ministering to fallen Americans, while others made the 
        ultimate sacrifice as a prisoner of war.
            (4) Military chaplains currently serve in 
        humanitarian operations, rotational deployments, and in 
        the war on terrorism.
            (5) Religious organizations make up the very fabric 
        of religious diversity and represent unparalleled 
        levels of freedom of conscience, speech, and worship 
        that set the United States apart from any other nation 
        on Earth.
            (6) Religious organizations have richly blessed the 
        uniformed services by sending clergy to comfort and 
        encourage all persons of faith in the Armed Forces.
            (7) During the sinking of the USS Dorchester in 
        February 1943 during World War II, four chaplains 
        (Reverend Fox, Reverend Poling, Father Washington, and 
        Rabbi Goode) gave their lives so that others might 
        live.
            (8) All military chaplains aid and assist members 
        of the Armed Forces and their family members with the 
        challenging issues of today's world.
            (9) The current war against terrorism has brought 
        to the shores of the United States new threats and 
        concerns that strike at the beliefs and emotions of 
        Americans.
            (10) Military chaplains must, as never before, deal 
        with the spiritual well-being of the members of the 
        Armed Forces and their families.
    (b) Commendation.--Congress, on behalf of the Nation, 
expresses its appreciation for the outstanding contribution 
that all military chaplains make to the members of the Armed 
Forces and their families.
    (c) Presidential Proclamation.--The President is authorized 
and requested to issue a proclamation calling on the people of 
the United States to recognize the distinguished service of the 
Nation's military chaplains.

                   Subtitle F--Administrative Matters

SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/MISSING 
                    PERSONNEL OFFICE.

    (a) Requirement for Staffing and Funding At Levels Required 
for Performance of Full Range of Missions.--Subsection (a) of 
section 1501 of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5)(A) The Secretary of Defense shall ensure that the 
office is provided sufficient military and civilian personnel, 
and sufficient funding, to enable the office to fully perform 
the complete range of missions of the office. The Secretary 
shall ensure that Department of Defense programming, planning, 
and budgeting procedures are structured so as to ensure 
compliance with the preceding sentence for each fiscal year.
    ``(B) For any fiscal year, the number of military and 
civilian personnel assigned or detailed to the office may not 
be less than the number requested in the President's budget for 
fiscal year 2003, unless a level below such number is expressly 
required by law.
    ``(C) For any fiscal year, the level of funding allocated 
to the office within the Department of Defense may not be below 
the level requested for such purposes in the President's budget 
for fiscal year 2003, unless such a level of funding is 
expressly required by law.''.
    (b) Name of Office.--Such subsection is further amended by 
inserting after the first sentence of paragraph (1) the 
following new sentence: ``Such office shall be known as the 
Defense Prisoner of War/Missing Personnel Office.''.

SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PERSONNEL OF AGENCIES 
                    RESPONSIBLE FOR REVIEW AND CORRECTION OF MILITARY 
                    RECORDS.

    (a) In General.--Chapter 79 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 1559. Personnel limitation

    ``(a) Limitation.--During fiscal years 2003, 2004, and 
2005, the Secretary of a military department may not carry out 
any reduction in the number of military and civilian personnel 
assigned to duty with the service review agency for that 
military department below the baseline number for that agency 
until--
            ``(1) the Secretary submits to Congress a report 
        that--
                    ``(A) describes the reduction proposed to 
                be made;
                    ``(B) provides the Secretary's rationale 
                for that reduction; and
                    ``(C) specifies the number of such 
                personnel that would be assigned to duty with 
                that agency after the reduction; and
            ``(2) a period of 90 days has elapsed after the 
        date on which the report is submitted.
    ``(b) Baseline Number.--The baseline number for a service 
review agency under this section is--
            ``(1) for purposes of the first report with respect 
        to a service review agency under this section, the 
        number of military and civilian personnel assigned to 
        duty with that agency as of January 1, 2002; and
            ``(2) for purposes of any subsequent report with 
        respect to a service review agency under this section, 
        the number of such personnel specified in the most 
        recent report with respect to that agency under this 
        section.
    ``(c) Service Review Agency Defined.--In this section, the 
term `service review agency' means--
            ``(1) with respect to the Department of the Army, 
        the Army Review Boards Agency;
            ``(2) with respect to the Department of the Navy, 
        the Board for Correction of Naval Records; and
            ``(3) with respect to the Department of the Air 
        Force, the Air Force Review Boards Agency.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``1559. Personnel limitation.''.

SEC. 553. AUTHORITY FOR ACCEPTANCE OF VOLUNTARY SERVICES OF INDIVIDUALS 
                    AS PROCTORS FOR ADMINISTRATION OF ARMED SERVICES 
                    VOCATIONAL APTITUDE BATTERY TEST.

    Section 1588(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(6) Voluntary services as a proctor for 
        administration to secondary school students of the test 
        known as the `Armed Services Vocational Aptitude 
        Battery'.''.

SEC. 554. EXTENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY.

    Effective January 1, 2002, section 4403(i) of the National 
Defense Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 
note) is amended by striking ``December 31, 2001'' and 
inserting ``September 1, 2002''.

   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces

SEC. 561. SURVEYS OF RACIAL AND ETHNIC ISSUES AND OF GENDER ISSUES IN 
                    THE ARMED FORCES.

    (a) Division of Annual Survey Into Four Quadrennial 
Surveys.--(1) Section 481 of title 10, United States Code, is 
amended to read as follows:

``Sec. 481. Racial and ethnic issues; gender issues: surveys

    ``(a) In General.--(1) The Secretary of Defense shall carry 
out four quadrennial surveys (each in a separate year) in 
accordance with this section to identify and assess racial and 
ethnic issues and discrimination, and to identify and assess 
gender issues and discrimination, among members of the armed 
forces. Each such survey shall be conducted so as to identify 
and assess the extent (if any) of activity among such members 
that may be seen as so-called `hate group' activity.
    ``(2) The four surveys shall be as follows:
            ``(A) To identify and assess racial and ethnic 
        issues and discrimination among members of the armed 
        forces serving on active duty.
            ``(B) To identify and assess racial and ethnic 
        issues and discrimination among members of the armed 
        forces in the reserve components.
            ``(C) To identify and assess gender issues and 
        discrimination among members of the armed forces 
        serving on active duty.
            ``(D) To identify and assess gender issues and 
        discrimination members of the armed forces in the 
        reserve components.
    ``(3) The surveys under this section relating to racial and 
ethnic issues and discrimination shall be known as the `Armed 
Forces Workplace and Equal Opportunity Surveys'. The surveys 
under this section relating to gender issues and discrimination 
shall be known as the `Armed Forces Workplace and Gender 
Relations Surveys'.
    ``(4) Each survey under this section shall be conducted 
separately from any other survey conducted by the Department of 
Defense.
    ``(b) Armed Forces Workplace and Equal Opportunity 
Surveys.--The Armed Forces Workplace and Equal Opportunity 
Surveys shall be conducted so as to solicit information on 
racial and ethnic issues, including issues relating to 
harassment and discrimination, and the climate in the armed 
forces for forming professional relationships among members of 
the armed forces of various racial and ethnic groups. Both such 
surveys shall be conducted so as to solicit information on the 
following:
            ``(1) Indicators of positive and negative trends 
        for professional and personal relationships among 
        members of all racial and ethnic groups.
            ``(2) The effectiveness of Department of Defense 
        policies designed to improve relationships among all 
        racial and ethnic groups.
            ``(3) The effectiveness of current processes for 
        complaints on and investigations into racial and ethnic 
        discrimination.
    ``(c) Armed Forces Workplace and Gender Relations 
Surveys.--The Armed Forces Workplace and Gender Relations 
Surveys shall be conducted so as to solicit information on 
gender issues, including issues relating to gender-based 
harassment and discrimination, and the climate in the armed 
forces for forming professional relationships between male and 
female members of the armed forces. Both such surveys shall be 
conducted so as to solicit information on the following:
            ``(1) Indicators of positive and negative trends 
        for professional and personal relationships between 
        male and female members of the armed forces.
            ``(2) The effectiveness of Department of Defense 
        policies designed to improve professional relationships 
        between male and female members of the armed forces.
            ``(3) The effectiveness of current processes for 
        complaints on and investigations into gender-based 
        discrimination.
    ``(d) Surveys To Be Conducted in Different Years.--Each of 
the four quadrennial surveys conducted under this section shall 
be conducted in a different year from any other survey 
conducted under this section, so that one such survey is 
conducted during each year.
    ``(e) Reports to Congress.--Upon the completion of a survey 
under this section, the Secretary shall submit to Congress a 
report containing the results of the survey.
    ``(f) Inapplicability to Coast Guard.--This section does 
not apply to the Coast Guard.''.
    (2) The item relating to such section in the table of 
sections at the beginning of chapter 23 of such title is 
amended to read as follows:

``481. Racial and ethnic issues; gender issues: surveys.''.

    (b) Effective Date.--The first survey under section 481 of 
title 10, United States Code, as amended by subsection (a)(1), 
shall be carried out during 2003.

SEC. 562. ANNUAL REPORT ON STATUS OF FEMALE MEMBERS OF THE ARMED 
                    FORCES.

    (a) Requirement for Report.--The Secretary of Defense shall 
submit to Congress, for each of fiscal years 2002 through 2006, 
a report on the status of female members of the Armed Forces. 
Information in the annual report shall be shown for the 
Department of Defense as a whole and separately for each of the 
Army, Navy, Air Force, and Marine Corps.
    (b) Matters To Be Included.--The report for a fiscal year 
under subsection (a) shall include the following information:
            (1) The positions, weapon systems, and fields of 
        skills for which, by policy, female members are not 
        eligible for assignment, as follows:
                    (A) In the report for fiscal year 2002--
                            (i) an identification of each 
                        position, weapon system, and field of 
                        skills for which, by policy, female 
                        members are not eligible; and
                            (ii) the rationale for the 
                        applicability of the policy to each 
                        such position, weapon system, and 
                        field.
                    (B) In the report for each fiscal year 
                after fiscal year 2002, the positions, weapon 
                systems, and fields for which policy on the 
                eligibility of female members for assignment 
                has changed during that fiscal year, including 
                a discussion of how the policy has changed and 
                the rationale for the change.
            (2) Information on joint spouse assignments, as 
        follows:
                    (A) The number of cases in which members of 
                the Armed Forces married to each other are in 
                assignments to which they were jointly assigned 
                during that fiscal year, as defined in the 
                applicable Department of Defense and military 
                department personnel assignment policies.
                    (B) The number of cases in which members of 
                the Armed Forces married to each other are in 
                assignments to which they were assigned during 
                that fiscal year, but were not jointly assigned 
                (as so defined).
            (3) Promotion selection rates for female members, 
        for male members, and for all personnel in the reports 
        submitted by promotion selection boards in that fiscal 
        year for promotion to grades E-7, E-8, and E-9, and, in 
        the case of commissioned officers, promotion to grades 
        O-4, O-5, and O-6.
            (4) Retention rates for female members in each 
        grade and for male members in each grade during that 
        fiscal year.
            (5) Selection rates for female members and for male 
        members for assignment to grade O-6 and grade O-5 
        command positions in reports of command selection 
        boards that were submitted during that fiscal year.
            (6) Selection rates for female members and for male 
        members for attendance at intermediate service schools 
        (ISS) and, separately, for attendance at senior service 
        schools (SSS) in reports of selection boards that were 
        submitted during that fiscal year.
            (7) The extent of assignments of female members 
        during that fiscal year in each field in which at least 
        80 percent of the Armed Forces personnel assigned in 
        the field are men.
            (8) The incidence of sexual harassment complaints 
        made during that fiscal year, stated as the number of 
        cases in which complaints of sexual harassment were 
        filed under procedures of military departments that are 
        applicable to the submission of sexual harassment 
        complaints, together with the number and percent of the 
        complaints that were substantiated.
            (9) Satisfaction (based on surveys) of female 
        active-duty members, female dependents of active-duty 
        members, and female dependents of nonactive duty 
        members entitled to health care provided by the 
        Department of Defense with access to, and quality of, 
        women's health care benefits provided by the Department 
        of Defense.
    (c) Time for Report.--The report for a fiscal year under 
this section shall be submitted not later than 120 days after 
the end of that fiscal year.

SEC. 563. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED FORCES IN SAUDI 
                    ARABIA.

    (a) Prohibition Relating to Wear of Abayas.--No member of 
the Armed Forces having authority over a member of the Armed 
Forces and no officer or employee of the United States having 
authority over a member of the Armed Forces may require or 
encourage that member to wear the abaya garment or any part of 
the abaya garment while the member is in the Kingdom of Saudi 
Arabia pursuant to a permanent change of station or orders for 
temporary duty.
    (b) Instruction.--(1) The Secretary of Defense shall 
provide each female member of the Armed Forces ordered to a 
permanent change of station or temporary duty in the Kingdom of 
Saudi Arabia with instruction regarding the prohibition in 
subsection (a). Such instruction shall be provided immediately 
upon or not more than 48 hours prior to the arrival of the 
member at a United States military installation within the 
Kingdom of Saudi Arabia. The instruction shall be presented 
orally and in writing. The written instruction shall include 
the full text of this section.
    (2) In carrying out paragraph (1), the Secretary shall act 
through the Commander in Chief, United States Central Command 
and Joint Task Force Southwest Asia, and the commanders of the 
Army, Navy, Air Force, and Marine Corps components of the 
United States Central Command and Joint Task Force Southwest 
Asia.
    (c) Prohibition on Use of Funds for Procurement of 
Abayas.--Funds appropriated or otherwise made available to the 
Department of Defense may not be used to procure abayas for 
regular or routine issuance to members of the Armed Forces 
serving in the Kingdom of Saudi Arabia or for any personnel of 
contractors accompanying the Armed Forces in the Kingdom of 
Saudi Arabia in the performance of contracts entered into by 
the United States with such contractors.

                          Subtitle H--Benefits

SEC. 571. DEPARTMENT OF DEFENSE SUPPORT FOR PERSONS PARTICIPATING IN 
                    MILITARY FUNERAL HONORS DETAILS.

    Section 1491(d) of title 10, United States Code, is 
amended--
            (1) by striking ``To provide a'' after ``Support.--
        '' and inserting ``(1) To support a'';
            (2) by redesignating paragraph (1) as subparagraph 
        (A) and amending such subparagraph, as so redesignated, 
        to read as follows:
            ``(A) For a person who participates in a funeral 
        honors detail (other than a person who is a member of 
        the armed forces not in a retired status or an employee 
        of the United States), either transportation (or 
        reimbursement for transportation) and expenses or the 
        daily stipend prescribed under paragraph (2).'';
            (3) by redesignating paragraph (2) as subparagraph 
        (B) and in that subparagraph--
                    (A) by striking ``Materiel, equipment, and 
                training for'' and inserting ``For''; and
                    (B) by inserting before the period at the 
                end ``and for members of the armed forces in a 
                retired status, materiel, equipment, and 
                training'';
            (4) by redesignating paragraph (3) as subparagraph 
        (C) and in that subparagraph--
                    (A) by striking ``Articles of clothing 
                for'' and inserting ``For''; and
                    (B) by inserting ``, articles of clothing'' 
                after ``subsection (b)(2)''; and
            (5) by adding at the end the following new 
        paragraphs:
    ``(2) The Secretary of Defense shall prescribe annually a 
flat rate daily stipend for purposes of paragraph (1)(A). Such 
stipend shall be set at a rate so as to encompass typical costs 
for transportation and other miscellaneous expenses for persons 
participating in funeral honors details who are members of the 
armed forces in a retired status and other persons who are not 
members of the armed forces or employees of the United States.
    ``(3) A stipend paid under this subsection to a member of 
the armed forces in a retired status is in addition to any 
compensation to which the member is entitled under section 
435(a)(2) of title 37 and any other compensation to which the 
member may be entitled.''.

SEC. 572. EMERGENCY LEAVE OF ABSENCE PROGRAM.

    (a) In General.--Chapter 40 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 709. Emergency leave of absence

    ``(a) Emergency Leave of Absence.--The Secretary concerned 
may grant a member of the armed forces emergency leave of 
absence for a qualifying emergency.
    ``(b) Limitations.--An emergency leave of absence under 
this section--
            ``(1) may be granted only once for any member;
            ``(2) may be granted only to prevent the member 
        from entering unearned leave status or excess leave 
        status; and
            ``(3) may not extend for a period of more than 14 
        days.
    ``(c) Qualifying Emergency.--In this section, the term 
`qualifying emergency', with respect to a member of the armed 
forces, means a circumstance that--
            ``(1) is due to--
                    ``(A) a medical condition of a member of 
                the immediate family of the member; or
                    ``(B) any other hardship that the Secretary 
                concerned determines appropriate for purposes 
                of this section; and
            ``(2) is verified to the Secretary's satisfaction 
        based upon information or opinion from a source in 
        addition to the member that the Secretary considers to 
        be objective and reliable.
    ``(d) Military Department Regulations.--Regulations 
prescribed under this section by the Secretaries of the 
military department shall be as uniform as practicable and 
shall be subject to approval by the Secretary of Defense.
    ``(e) Definitions.--In this section:
            ``(1) The term `unearned leave status' means leave 
        approved to be used by a member of the armed forces 
        that exceeds the amount of leave credit that has been 
        accrued as a result of the member's active service and 
        that has not been previously used by the member.
            ``(2) The term `excess leave status' means leave 
        approved to be used by a member of the armed forces 
        that is unearned leave for which a member is unable to 
        accrue leave credit during the member's current term of 
        service before the member's separation.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``709. Emergency leave of absence.''.

SEC. 573. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT PROGRAM.

    (a) Eligible Persons.--Subsection (d) of section 2173 of 
title 10, United States Code, is amended by striking 
``Participants'' and all that follows through ``and students'' 
and inserting ``Students''.
    (b) Loan Repayment Amounts.--Subsection (e)(2) of such 
section is amended by striking the last sentence.

SEC. 574. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID TRANSPORTATION OF 
                    ENLISTED PERSONNEL FOR REST AND RECUPERATION 
                    ABSENCE UPON EXTENDING DUTY AT DESIGNATED LOCATIONS 
                    OVERSEAS.

    (a) Expansion of Benefits.--Subsection (b)(2) of section 
705 of title 10, United States Code, is amended by inserting 
before the period at the end the following: ``, or to an 
alternative destination and return at a cost not to exceed the 
cost of round-trip transportation from the location of the 
extended tour of duty to such nearest port''.
    (b) Change in Terminology.--(1) Subsection (b) of such 
section is further amended by striking ``recuperative'' in 
paragraphs (1) and (2) and inserting ``recuperation''.
    (2)(A) The heading of such section is amended to read as 
follows:

``Sec. 705. Rest and recuperation absence: qualified enlisted members 
                    extending duty at designated locations overseas''.

    (B) The item relating to such section in the table of 
sections at the beginning of chapter 40 of such title is 
amended to read as follows:

``705. Rest and recuperation absence: qualified enlisted members 
          extending duty at designated locations overseas.''.

SEC. 575. VEHICLE STORAGE IN LIEU OF TRANSPORTATION WHEN MEMBER IS 
                    ORDERED TO A NONFOREIGN DUTY STATION OUTSIDE 
                    CONTINENTAL UNITED STATES.

    (a) Storage Costs Authorized.--Subsection (b) of section 
2634 of title 10, United States Code, is amended by striking 
paragraphs (1) and (2) and inserting the following:
    ``(b)(1) When a member receives a vehicle storage 
qualifying order, the member may elect to have a motor vehicle 
described in subsection (a) stored at the expense of the United 
States at a location approved by the Secretary concerned. In 
the case of a vehicle storage qualifying order that is to make 
a change of permanent station, such storage is in lieu of 
transportation authorized by subsection (a).
    ``(2) In this subsection, the term `vehicle storage 
qualifying order' means any of the following:
            ``(A) An order to make a change of permanent 
        station to a foreign country in a case in which the 
        laws, regulations, or other restrictions imposed by the 
        foreign country or by the United States either--
                    ``(i) preclude entry of a motor vehicle 
                described in subsection (a) into that country; 
                or
                    ``(ii) would require extensive modification 
                of the vehicle as a condition to entry.
            ``(B) An order to make a change of permanent 
        station to a nonforeign area outside the continental 
        United States in a case in which the laws, regulations, 
        or other restrictions imposed by that area or by the 
        United States either--
                    ``(i) preclude entry of a motor vehicle 
                described in subsection (a) into that area; or
                    ``(ii) would require extensive modification 
                of the vehicle as a condition to entry.
            ``(C) An order under which a member is transferred 
        or assigned in connection with a contingency operation 
        to duty at a location other than the permanent station 
        of the member for a period of more than 30 consecutive 
        days but which is not considered a change of permanent 
        station.''.
    (b) Nonforeign Area Outside the Continental United States 
Defined.--Subsection (h) of such section is amended by adding 
at the end the following new paragraph:
            ``(3) The term `nonforeign area outside the 
        continental United States' means any of the following: 
        the States of Alaska and Hawaii, the Commonwealths of 
        Puerto Rico and the Northern Mariana Islands, and any 
        possession of the United States.''.
    (c) Effective Date.--The amendments made by this section 
apply to orders to make a change of permanent station to a 
nonforeign area outside the continental United States (as such 
term is defined in subsection (h)(3) of section 2634 of title 
10, United States Code, as added by subsection (b)) that are 
issued on or after the date of the enactment of this Act.

                          Subtitle I--Reports

SEC. 581. QUADRENNIAL QUALITY OF LIFE REVIEW.

    (a) Requirement for Review.--(1) Chapter 2 of title 10, 
United States Code, is amended by inserting after section 118 
the following new section:

``Sec. 118a. Quadrennial quality of life review

    ``(a) Review Required.--(1) The Secretary of Defense shall 
every four years conduct a comprehensive examination of the 
quality of life of the members of the armed forces (to be known 
as the `quadrennial quality of life review'). The review shall 
include examination of the programs, projects, and activities 
of the Department of Defense, including the morale, welfare, 
and recreation activities.
    ``(2) The quadrennial quality of life review shall be 
designed to result in determinations, and to foster policies 
and actions, that reflect the priority given the quality of 
life of members of the armed forces as a primary concern of the 
Department of Defense leadership.
    ``(b) Conduct of Review.--Each quadrennial quality of life 
review shall be conducted so as--
            ``(1) to assess quality of life priorities and 
        issues consistent with the most recent National 
        Security Strategy prescribed by the President pursuant 
        to section 108 of the National Security Act of 1947 (50 
        U.S.C. 404a);
            ``(2) to identify actions that are needed in order 
        to provide members of the armed forces with the quality 
        of life reasonably necessary to encourage the 
        successful execution of the full range of missions that 
        the members are called on to perform under the national 
        security strategy; and
            ``(3) to identify other actions that have the 
        potential for improving the quality of life of the 
        members of the armed forces.
    ``(c) Considerations.--The Secretary shall consider 
addressing the following matters as part of the quadrennial 
quality of life review:
            ``(1) Infrastructure.
            ``(2) Military construction.
            ``(3) Physical conditions at military installations 
        and other Department of Defense facilities.
            ``(4) Budget plans.
            ``(5) Adequacy of medical care for members of the 
        armed forces and their dependents.
            ``(6) Adequacy of housing and the basic allowance 
        for housing and basic allowance for subsistence.
            ``(7) Housing-related utility costs.
            ``(8) Educational opportunities and costs.
            ``(9) Length of deployments.
            ``(10) Rates of pay and pay differentials between 
        the pay of members and the pay of civilians.
            ``(11) Retention and recruiting efforts.
            ``(12) Workplace safety.
            ``(13) Support services for spouses and children.
            ``(14) Other elements of Department of Defense 
        programs and Government policies and programs that 
        affect the quality of life of members.
    ``(d) Submission to Congressional Committees.--(1) The 
Secretary shall submit a report on each quadrennial quality of 
life review to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives. The report shall include the following:
            ``(A) The assumptions used in the review.
            ``(B) The results of the review, including a 
        comprehensive discussion of how the quality of life of 
        members of the armed forces affects the national 
        security strategy of the United States.
    ``(2) The report shall be submitted in the year following 
the year in which the review is conducted, but not later than 
the date on which the President submits the budget for the next 
fiscal year to Congress under section 1105(a) of title 31.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 118 
the following new item:

``118a. Quadrennial quality of life review.''.

    (b) First Quadrennial Quality of Life Review.--The first 
quadrennial quality of life review under section 118a of title 
10, United States Code, as added by subsection (a), shall be 
conducted during 2003, and the report on that review required 
to be submitted to Congress under subsection (d) of such 
section shall be submitted not later than the date on which the 
President submits the budget for fiscal year 2005 to Congress.

SEC. 582. REPORT ON DESIRABILITY AND FEASIBILITY OF CONSOLIDATING 
                    SEPARATE COURSES OF BASIC INSTRUCTION FOR JUDGE 
                    ADVOCATES.

    Not later than February 1, 2003, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on the desirability and feasibility of 
consolidating the separate Army, Navy, and Air Force courses of 
basic instruction for judge advocates into a single course to 
be conducted at a single location. The report shall include--
            (1) an assessment of the advantages and 
        disadvantages of such a consolidation;
            (2) a recommendation as to whether such a 
        consolidation is desirable and feasible; and
            (3) any proposal for legislative action that the 
        Secretary considers appropriate for carrying out such a 
        consolidation.

SEC. 583. REPORTS ON EFFORTS TO RESOLVE STATUS OF CAPTAIN MICHAEL SCOTT 
                    SPEICHER, UNITED STATES NAVY.

    (a) Reports.-- Not later than 90 days after the date of the 
enactment of this Act, and every 120 days thereafter, the 
Secretary of Defense shall submit to Congress a report on the 
efforts of the United States Government to determine the status 
of Captain Michael Scott Speicher, United States Navy, whose 
aircraft was shot down over Iraq on the night of January 17, 
1991. Each such report shall be prepared in consultation with 
the Secretary of State and the Director of Central 
Intelligence.
    (b) Period Covered by Reports.--The first report under 
subsection (a) shall cover efforts described in that subsection 
from the time that Michael Scott Speicher's aircraft was shot 
down over Iraq until the date of the report, and each 
subsequent report shall cover efforts described in that 
subsection since the last such report.
    (c) Report Elements.--Each report under subsection (a) 
shall describe, for the period covered by such report, the 
following:
            (1) All direct and indirect contacts by the United 
        States Government with the Government of Iraq regarding 
        the status of Michael Scott Speicher.
            (2) Any request made by the United States 
        Government to the government of another country, 
        including the intelligence service of such country, for 
        assistance in resolving the status of Michael Scott 
        Speicher, including the response to such request.
            (3) Each current lead on the status of Michael 
        Scott Speicher, including an assessment of the utility 
        of such lead in resolving the status of Michael Scott 
        Speicher.
            (4) Any cooperation with nongovernmental 
        organizations or international organizations in 
        resolving the status of Michael Scott Speicher, 
        including the results of such cooperation.
    (d) Form of Reports.--Each report under subsection (a) 
shall be submitted in classified or unclassified form. To the 
extent submitted in classified form, such report shall include 
an unclassified summary.
    (e) Duration.--The requirement to submit reports under this 
section shall cease to be effective upon a final determination 
regarding the status of Michael Scott Speicher by the Secretary 
of Defense.

SEC. 584. REPORT ON VOLUNTEER SERVICES OF MEMBERS OF THE RESERVE 
                    COMPONENTS IN EMERGENCY RESPONSE TO THE TERRORIST 
                    ATTACKS OF SEPTEMBER 11, 2001.

    (a) Requirement for Report.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and House of Representatives a report on volunteer services 
described in subsection (b) that were provided by members of 
the reserve components of the Armed Forces, while not in a duty 
status pursuant to orders, during the period of September 11 
through September 14, 2001. The report shall include a 
discussion of any recognition that the Secretary considers 
appropriate for those members regarding the provision of such 
services.
    (b) Covered Volunteer Services.--The volunteer services 
referred to in subsection (a) are volunteer services of a 
military-unique nature that were provided--
            (1) in the vicinity of the site of the World Trade 
        Center, New York, New York, in support of emergency 
        response to the terrorist attack on the World Trade 
        Center on September 11, 2001;
            (2) in the vicinity of the Pentagon, Arlington, 
        Virginia, in support of emergency response to the 
        terrorist attack on the Pentagon on September 11, 2001; 
        or
            (3) in the vicinity of Shanksville, Pennsylvania, 
        in support of emergency response to the terrorist-
        caused crash of United Airlines Flight 93 in 
        Shanksville, Pennsylvania, on September 11, 2001.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
          moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted personnel 
          occupying single Government quarters without adequate 
          availability of meals.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
          authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
          nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, 
          and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
          in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
          performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
          reserve service required for eligibility for retired pay for 
          non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
          extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
          living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
          program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
          limitations on claims against the Government for military 
          personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
          uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
          members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
          Bill arising from failure to participate satisfactorily in 
          military service to be considered debts owed to the United 
          States.
Sec. 643. Technical adjustments to authority for certain members to 
          transfer educational assistance under Montgomery GI Bill to 
          dependents.

                        Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
          members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
          at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
          37.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to 
become effective during fiscal year 2003 required by section 
1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services shall 
not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2003, 
the rates of monthly basic pay for members of the uniformed 
services within each pay grade are as follows:
      

                                            COMMISSIONED OFFICERS \1\
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                  Pay Grade                    2 or less     Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-10 \2\....................................       $0.00         $0.00         $0.00         $0.00         $0.00
O-9.........................................        0.00          0.00          0.00          0.00          0.00
O-8.........................................    7,474.50      7,719.30      7,881.60      7,927.20      8,129.40
O-7.........................................    6,210.90      6,499.20      6,633.00      6,739.20      6,930.90
O-6.........................................    4,603.20      5,057.10      5,388.90      5,388.90      5,409.60
O-5.........................................    3,837.60      4,323.00      4,622.40      4,678.50      4,864.80
O-4.........................................    3,311.10      3,832.80      4,088.70      4,145.70      4,383.00
O-3 \3\.....................................    2,911.20      3,300.30      3,562.20      3,883.50      4,069.50
O-2 \3\.....................................    2,515.20      2,864.70      3,299.40      3,410.70      3,481.20
O-1 \3\.....................................    2,183.70      2,272.50      2,746.80      2,746.80      2,746.80
                                             -------------------------------------------------------------------
                                                Over 8       Over 10       Over 12       Over 14       Over 16
                                             -------------------------------------------------------------------
O-10 \2\....................................       $0.00         $0.00         $0.00         $0.00         $0.00
O-9.........................................        0.00          0.00          0.00          0.00          0.00
O-8.........................................    8,468.70      8,547.30      8,868.90      8,961.30      9,238.20
O-7.........................................    7,120.80      7,340.40      7,559.40      7,779.00      8,468.70
O-6.........................................    5,641.20      5,672.10      5,672.10      5,994.60      6,564.30
O-5.........................................    4,977.00      5,222.70      5,403.00      5,635.50      5,991.90
O-4.........................................    4,637.70      4,954.50      5,201.40      5,372.70      5,471.10
O-3 \3\.....................................    4,273.50      4,405.80      4,623.30      4,736.10      4,736.10
O-2 \3\.....................................    3,481.20      3,481.20      3,481.20      3,481.20      3,481.20
O-1 \3\.....................................    2,746.80      2,746.80      2,746.80      2,746.80      2,746.80
                                             -------------------------------------------------------------------
                                                Over 18      Over 20       Over 22       Over 24       Over 26
                                             -------------------------------------------------------------------
O-10 \2\....................................       $0.00    $12,077.70    $12,137.10    $12,389.40    $12,829.20
O-9.........................................        0.00     10,563.60     10,715.70     10,935.60     11,319.60
O-8.........................................    9,639.00     10,008.90     10,255.80     10,255.80     10,255.80
O-7.........................................    9,051.30      9,051.30      9,051.30      9,051.30      9,096.90
O-6.........................................    6,898.80      7,233.30      7,423.50      7,616.10      7,989.90
O-5.........................................    6,161.70      6,329.10      6,519.60      6,519.60      6,519.60
O-4.........................................    5,528.40      5,528.40      5,528.40      5,528.40      5,528.40
O-3 \3\.....................................    4,736.10      4,736.10      4,736.10      4,736.10      4,736.10
O-2 \3\.....................................    3,481.20      3,481.20      3,481.20      3,481.20      3,481.20
O-1 \3\.....................................    2,746.80      2,746.80      2,746.80      2,746.80      2,746.80
----------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
  officers in pay grades 0-7 through O-10 may not exceed the rate of pay for level III of the Executive Schedule
  and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the
  Executive Schedule.
\2\ Subject to the preceding footnote, the rate of basic pay for an officer in this grade while serving as
  Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations,
  Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of the Coast Guard is
  $14,155.50, regardless of cumulative years of service computed under section 205 of title 37, United States
  Code.
\3\ This table does not apply to commissioned officers in pay grade O-1, O-2, or O-3 who have been credited with
  over 4 years of active duty service as an enlisted member or warrant officer.


     COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                   Pay Grade                      2 or less      Over 2       Over 3       Over 4       Over 6
----------------------------------------------------------------------------------------------------------------
O-3E...........................................        $0.00        $0.00        $0.00    $3,883.50    $4,069.50
O-2E...........................................         0.00         0.00         0.00     3,410.70     3,481.20
O-1E...........................................         0.00         0.00         0.00     2,746.80     2,933.70
                                                ----------------------------------------------------------------
                                                    Over 8      Over 10      Over 12      Over 14      Over 16
                                                ----------------------------------------------------------------
O-3E...........................................    $4,273.50    $4,405.80    $4,623.30    $4,806.30    $4,911.00
O-2E...........................................     3,591.90     3,778.80     3,923.40     4,031.10     4,031.10
O-1E...........................................     3,042.00     3,152.70     3,261.60     3,410.70     3,410.70
                                                ----------------------------------------------------------------
                                                   Over 18      Over 20      Over 22      Over 24      Over 26
                                                ----------------------------------------------------------------
O-3E...........................................    $5,054.40    $5,054.40    $5,054.40    $5,054.40    $5,054.40
O-2E...........................................     4,031.10     4,031.10     4,031.10     4,031.10     4,031.10
O-1E...........................................     3,410.70     3,410.70     3,410.70     3,410.70     3,410.70
----------------------------------------------------------------------------------------------------------------


                                              WARRANT OFFICERS \1\
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                    Pay Grade                      2 or less     Over 2       Over 3       Over 4       Over 6
----------------------------------------------------------------------------------------------------------------
W-5.............................................       $0.00        $0.00        $0.00        $0.00        $0.00
W-4.............................................    3,008.10     3,236.10     3,329.10     3,420.60     3,578.10
W-3.............................................    2,747.10     2,862.00     2,979.30     3,017.70     3,141.00
W-2.............................................    2,416.50     2,554.50     2,675.10     2,763.00     2,838.30
W-1.............................................    2,133.90     2,308.50     2,425.50     2,501.10     2,662.50
                                                 ---------------------------------------------------------------
                                                    Over 8      Over 10      Over 12      Over 14      Over 16
                                                 ---------------------------------------------------------------
W-5.............................................       $0.00        $0.00        $0.00        $0.00        $0.00
W-4.............................................    3,733.50     3,891.00     4,044.60     4,203.60     4,356.00
W-3.............................................    3,281.70     3,467.40     3,580.50     3,771.90     3,915.60
W-2.............................................    2,993.10     3,148.50     3,264.00     3,376.50     3,453.90
W-1.............................................    2,782.20     2,888.40     3,006.90     3,085.20     3,203.40
                                                 ---------------------------------------------------------------
                                                    Over 18     Over 20      Over 22      Over 24      Over 26
                                                 ---------------------------------------------------------------
W-5.............................................       $0.00    $5,169.30    $5,346.60    $5,524.50    $5,703.30
W-4.............................................    4,512.00     4,664.40     4,822.50     4,978.20     5,137.50
W-3.............................................    4,058.40     4,201.50     4,266.30     4,407.00     4,548.00
W-2.............................................    3,579.90     3,705.90     3,831.00     3,957.30     3,957.30
W-1.............................................    3,320.70     3,409.50     3,409.50     3,409.50     3,409.50
----------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant
  officers may not exceed the rate of pay for level V of the Executive Schedule.


                                              ENLISTED MEMBERS \1\
                   Years of service computed under section 205 of title 37, United States Code
----------------------------------------------------------------------------------------------------------------
                   Pay Grade                      2 or less      Over 2       Over 3       Over 4       Over 6
----------------------------------------------------------------------------------------------------------------
E-9 \2\........................................        $0.00        $0.00        $0.00        $0.00        $0.00
E-8............................................         0.00         0.00         0.00         0.00         0.00
E-7............................................     2,068.50     2,257.80     2,343.90     2,428.20     2,516.40
E-6............................................     1,770.60     1,947.60     2,033.70     2,117.10     2,204.10
E-5............................................     1,625.40     1,733.70     1,817.40     1,903.50     2,037.00
E-4............................................     1,502.70     1,579.80     1,665.30     1,749.30     1,824.00
E-3............................................     1,356.90     1,442.10     1,528.80     1,528.80     1,528.80
E-2............................................     1,290.00     1,290.00     1,290.00     1,290.00     1,290.00
E-1............................................          \3\     1,150.80     1,150.80     1,150.80     1,150.80
                                                    1,150.80
                                                ----------------------------------------------------------------
                                                    Over 8      Over 10      Over 12      Over 14      Over 16
                                                ----------------------------------------------------------------
E-9 \2\........................................        $0.00    $3,564.30    $3,645.00    $3,747.00    $3,867.00
E-8............................................     2,975.40     3,061.20     3,141.30     3,237.60     3,342.00
E-7............................................     2,667.90     2,753.40     2,838.30     2,990.40     3,066.30
E-6............................................     2,400.90     2,477.40     2,562.30     2,636.70     2,663.10
E-5............................................     2,151.90     2,236.80     2,283.30     2,283.30     2,283.30
E-4............................................     1,824.00     1,824.00     1,824.00     1,824.00     1,824.00
E-3............................................     1,528.80     1,528.80     1,528.80     1,528.80     1,528.80
E-2............................................     1,290.00     1,290.00     1,290.00     1,290.00     1,290.00
E-1............................................     1,150.80     1,150.80     1,150.80     1,150.80     1,150.80
                                                ----------------------------------------------------------------
                                                   Over 18      Over 20      Over 22      Over 24      Over 26
                                                ----------------------------------------------------------------
E-9 \2\........................................    $3,987.30    $4,180.80    $4,344.30    $4,506.30    $4,757.40
E-8............................................     3,530.10     3,625.50     3,787.50     3,877.50     4,099.20
E-7............................................     3,138.60     3,182.70     3,331.50     3,427.80     3,671.40
E-6............................................     2,709.60     2,709.60     2,709.60     2,709.60     2,709.60
E-5............................................     2,283.30     2,283.30     2,283.30     2,283.30     2,283.30
E-4............................................     1,824.00     1,824.00     1,824.00     1,824.00     1,824.00
E-3............................................     1,528.80     1,528.80     1,528.80     1,528.80     1,528.80
E-2............................................     1,290.00     1,290.00     1,290.00     1,290.00     1,290.00
E-1............................................     1,150.80     1,150.80     1,150.80     1,150.80     1,150.80
----------------------------------------------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for enlisted
  members may not exceed the rate of pay for level V of the Executive Schedule.
\2\ Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving
  as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air Force,
  Sergeant Major of the Marine Corps, or Master Chief Petty Officer of the Coast Guard, basic pay is $5,732.70,
  regardless of cumulative years of service computed under section 205 of title 37, United States Code.
\3\ In the case of members in pay grade E-1 who have served less than 4 months on active duty, the rate of basic
  pay is $1,064.70.

SEC. 602. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST OR NO-COST 
                    MOVES.

    Section 403 of title 37, United States Code, is amended--
            (1) by transferring paragraph (7) of subsection (b) 
        to the end of the section; and
            (2) in such paragraph--
                    (A) by striking ``(7)'' and all that 
                follows through ``circumstances of which make 
                it necessary that the member be'' and inserting 
                ``(o) Treatment of Low-Cost and No-Cost Moves 
                as Not Being Reassignments.--In the case of a 
                member who is assigned to duty at a location or 
                under circumstances that make it necessary for 
                the member to be''; and
                    (B) by inserting ``for the purposes of this 
                section'' after ``may be treated''.

SEC. 603. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR ENLISTED 
                    PERSONNEL OCCUPYING SINGLE GOVERNMENT QUARTERS 
                    WITHOUT ADEQUATE AVAILABILITY OF MEALS.

    Section 402(d) of title 37, United States Code, is amended 
to read as follows:
    ``(d) Special Rate for Enlisted Members Occupying Single 
Quarters Without Adequate Availability of Meals.--The Secretary 
of Defense, and the Secretary of the department in which the 
Coast Guard is operating, may pay an enlisted member the basic 
allowance for subsistence under this section at a monthly rate 
that is twice the amount in effect under subsection (b)(2) 
while--
            ``(1) the member is assigned to single Government 
        quarters which have no adequate food storage or 
        preparation facility in the quarters; and
            ``(2) there is no Government messing facility 
        serving those quarters that is capable of making meals 
        available to the occupants of the quarters.''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f ) 
of title 37, United States Code, is amended by striking 
``December 31, 2002'' and inserting ``December 31, 2003''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of 
such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (c) Special Pay for Enlisted Members Assigned to Certain 
High Priority Units.--Section 308d(c) of such title is amended 
by striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of 
such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus.--
Section 308h(g) of such title is amended by striking ``December 
31, 2002'' and inserting ``December 31, 2003''.
    (f) Prior Service Enlistment Bonus.--Section 308i(f ) of 
such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 
2130a(a)(1) of title 10, United States Code, is amended by 
striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (b) Repayment of Education Loans for Certain Health 
Professionals Who Serve in the Selected Reserve.--Section 
16302(d) of such title is amended by striking ``January 1, 
2003'' and inserting ``January 1, 2004''.
    (c) Accession Bonus for Registered Nurses.--Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (e) Special Pay for Selected Reserve Health Professionals 
in Critically Short Wartime Specialties.--Section 302g(f ) of 
such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (f) Accession Bonus for Dental Officers.--Section 
302h(a)(1) of such title is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.

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

    (a) Special Pay for Nuclear-Qualified Officers Extending 
Period of Active Service.--Section 312(e) of title 37, United 
States Code, is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
title 37, United States Code, is amended by striking ``December 
31, 2002'' and inserting ``December 31, 2003''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) 
of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (c) Enlistment Bonus for Active Members.--Section 309(e) of 
such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (d) Retention Bonus for Members With Critical Military 
Skills.--Section 323(i) of such title is amended by striking 
``December 31, 2002'' and inserting ``December 31, 2003''.
    (e) Accession Bonus for New Officers in Critical Skills.--
Section 324(g) of such title is amended by striking ``December 
31, 2002'' and inserting ``December 31, 2003''.

SEC. 615. INCREASE IN MAXIMUM RATES FOR CERTAIN SPECIAL PAYS, BONUSES, 
                    AND FINANCIAL ASSISTANCE FOR HEALTH CARE 
                    PROFESSIONALS.

    (a) Retention Bonus for Medical Officers.--Section 
301d(a)(2) of title 37, United States Code, is amended by 
striking ``$14,000'' and inserting ``$50,000''.
    (b) Retention Bonus for Dental Officers.--Section 
301e(a)(2) of such title is amended by striking ``$14,000'' and 
inserting ``$50,000''.
    (c) Incentive Special Pay for Medical Officers.--Section 
302(b)(1) of such title is amended by striking the second 
sentence and inserting the following new sentence: ``The amount 
of incentive special pay paid to an officer under this 
subsection may not exceed $50,000 for any 12-month period.''.
    (d) Retention Special Pay Optometrists.--Section 302a(b)(1) 
of such title is amended by striking ``$6,000'' and inserting 
``$15,000''.
    (e) Accession Bonus for Registered Nurses.--Section 
302d(a)(2) of such title is amended by striking ``$5,000'' and 
inserting ``$30,000''.
    (f) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``$15,000'' and 
inserting ``$50,000''.
    (g) Retention Special Pay for Pharmacy Officers.--Section 
302i of such title is amended--
            (1) in subsections (a) and (b), by striking 
        ``special pay at the rates specified in subsection 
        (d)'' both places it appears and inserting ``retention 
        special pay under this section'';
            (2) in subsection (c), by striking ``Limitation.--
        '' and inserting ``Limitation on Eligibility for 
        Special Pay.--''; and
            (3) by striking subsection (d) and inserting the 
        following new subsection:
    ``(d) Limitation on Amount of Special Pay.--The amount of 
retention special pay paid to an officer under this section may 
not exceed $15,000 for any 12-month period.''.
    (h) Financial Assistance for Nurse Officer Candidates.--
Section 2130a(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``$5,000'' in the 
        first sentence and inserting ``$10,000'' and by 
        striking ``$2,500'' in the second sentence and 
        inserting ``$5,000''; and
            (2) in paragraph (2), by striking ``$500'' and 
        inserting ``$1,000''.
    (i) Application of Increase.--In the case of an amendment 
made by this section to increase the maximum amount of a 
special pay or bonus that may be paid during any 12-month 
period, the amended limitation shall apply to 12-month periods 
beginning after September 30, 2002.

SEC. 616. ASSIGNMENT INCENTIVE PAY.

    (a) Authority.--(1) Chapter 5 of title 37, United States 
Code, is amended by inserting after section 307 the following 
new section:

``Sec. 307a. Special pay: assignment incentive pay

    ``(a) Authority.--The Secretary concerned may pay monthly 
incentive pay under this section to a member of a uniformed 
service who performs service, while entitled to basic pay, in 
an assignment designated by the Secretary concerned.
    ``(b) Written Agreement.--The period for which incentive 
pay will be provided under this section and the monthly rate of 
the incentive pay for a member shall be specified in a written 
agreement between the Secretary concerned and the member. 
Agreements entered into by the Secretary of a military 
department shall require the concurrence of the Secretary of 
Defense.
    ``(c) Maximum Rate.--The maximum monthly rate of incentive 
pay payable to a member under this section is $1,500.
    ``(d) Relationship to Other Pay and Allowances.--Incentive 
pay paid to a member under this section is in addition to any 
other pay and allowances to which the member is entitled.
    ``(e) Status Not Affected by Temporary Duty or Leave.--The 
service of a member in an assignment referred to in subsection 
(a) shall not be considered discontinued during any period that 
the member is not performing service in the assignment by 
reason of temporary duty performed by the member pursuant to 
orders or absence of the member for authorized leave.
    ``(f) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2005.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 307 
the following new item:

``307a. Special pay: assignment incentive pay.''.

    (b) Annual Report.--Not later than February 28, 2004, and 
February 28, 2005, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the 
use of the authority provided under section 307a of title 37, 
United States Code, as added by subsection (a), including an 
assessment of the utility of that authority.

SEC. 617. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE ENLISTMENT BONUS.

    Section 308i(b)(1) of title 37, United States Code, is 
amended--
            (1) in subparagraph (A), by striking ``$5,000'' and 
        inserting ``$8,000'';
            (2) in subparagraph (B), by striking ``$2,500'' and 
        inserting ``$4,000''; and
            (3) in subparagraph (C), by striking ``$2,000'' and 
        inserting ``$3,500''.

SEC. 618. RETENTION INCENTIVES FOR HEALTH CARE PROFESSIONALS QUALIFIED 
                    IN A CRITICAL MILITARY SKILL.

    (a) Exception to Limitation on Maximum Bonus Amount.--
Subsection (d) of section 323 of title 37, United States Code, 
is amended--
            (1) by inserting ``(1)'' before ``A member''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The limitation in paragraph (1) on the total bonus 
payments that a member may receive under this section does not 
apply with respect to an officer who is assigned duties as a 
health care professional.''.
    (b) Exception to Years of Service Limitation.--Subsection 
(e) of such section is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``A retention''; 
        and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) The limitations in paragraph (1) do not apply with 
respect to an officer who is assigned duties as a health care 
professional during the period of active duty for which the 
bonus is being offered.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR MEMBERS 
                    PERFORMING CONSECUTIVE OVERSEAS TOURS OF DUTY.

    (a) Authorized Deferral Period.--Section 411b of title 37, 
United States Code is amended by inserting after subsection (a) 
the following new subsection:
    ``(b) Authority to Defer Travel; Limitations.--(1) Under 
the regulations referred to in subsection (a), a member may 
defer the travel for which the member is paid travel and 
transportation allowances under this section until any time 
before the completion of the consecutive tour at the same duty 
station or the completion of the tour of duty at the new duty 
station under the order involved, as the case may be.
    ``(2) If a member is unable to undertake the travel before 
expiration of the deferral period under paragraph (1) because 
of duty in connection with a contingency operation, the member 
may defer the travel until not more than one year after the 
date on which the member's duty in connection with the 
contingency operation ends.''.
    (b) Conforming and Clerical Amendments.--Such section is 
further amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)(1)'' and inserting 
                ``(a) Allowances Authorized.--''; and
                    (B) by striking paragraph (2); and
            (2) by striking ``(b) The allowances'' and 
        inserting ``(c) Limitation on Allowance Rate.--The 
        allowances''.
    (c) Application of Amendment.--Subsection (b) of section 
411b of title 37, United States Code, as added by subsection 
(a), shall apply with respect to members of the uniformed 
services in a deferred leave travel status under such section 
as of the date of the enactment of this Act or becomes entitled 
to travel and transportation allowances under such section on 
or after that date.

SEC. 622. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS REPORTED 
                    MISSING.

    (a) Authority To Ship Two Motor Vehicles.--Subsection (a) 
of section 554 of title 37, United States Code, is amended by 
striking ``one privately owned motor vehicle'' both places it 
appears and inserting ``two privately owned motor vehicles''.
    (b) Payments for Late Delivery.--Subsection (i) of such 
section is amended by adding at the end the following new 
sentence: ``In a case in which two motor vehicles of a member 
(or the dependent or dependents of a member) are transported at 
the expense of the United States, no reimbursement is payable 
under this subsection unless both motor vehicles do not arrive 
at the authorized destination of the vehicles by the designated 
delivery date.''.
    (c) Applicability.--The amendments made by subsection (a) 
shall apply with respect to members whose eligibility for 
benefits under section 554 of title 37, United States Code, 
commences on or after the date of the enactment of this Act.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 631. PERMANENT REDUCTION FROM EIGHT TO SIX IN NUMBER OF YEARS OF 
                    RESERVE SERVICE REQUIRED FOR ELIGIBILITY FOR 
                    RETIRED PAY FOR NON-REGULAR SERVICE.

    (a) Reduction in Requirement for Years of Reserve Component 
Service Before Retired Pay Eligibility.--Subsection (a)(3) of 
section 12731 of title 10, United States Code, is amended--
            (1) by striking ``eight years'' and inserting ``six 
        years''; and
            (2) by inserting before the semicolon ``, except 
        that in the case of a person who completed the service 
        requirements of paragraph (2) before October 5, 1994, 
        the number of years of such qualifying service under 
        this paragraph shall be eight''.
    (b) Conforming Amendment.--Subsection (f) of such section 
is repealed.
    (c) Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 2002. No benefit shall accrue 
to any person for any period before that date by reason of the 
enactment of those amendments.

SEC. 632. INCREASED RETIRED PAY FOR ENLISTED RESERVES CREDITED WITH 
                    EXTRAORDINARY HEROISM.

    (a) Authority.--Section 12739 of title 10, United States 
Code, is amended--
            (1) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) If a person entitled to retired pay under this 
chapter has been credited by the Secretary concerned with 
extraordinary heroism in the line of duty and if the highest 
grade held satisfactorily by that person at any time in the 
armed forces is an enlisted grade, the person's retired pay 
shall be increased by 10 percent of the amount determined under 
subsection (a). The Secretary's determination as to 
extraordinary heroism is conclusive for all purposes.''.
    (b) Conforming Amendment.--Subsection (c) of such section, 
as redesignated by subsection (a)(1), is amended by striking 
``amount computed under subsection (a)'' and inserting ``total 
amount of the monthly retired pay computed under subsections 
(a) and (b)''.
    (c) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect on October 1, 2002, and shall apply 
with respect to retired pay for months beginning on or after 
that date.

SEC. 633. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY COST-OF-
                    LIVING ADJUSTMENT FOR INITIAL COLA COMPUTATION.

    (a) Elimination of Possible COLA Inversion.--Section 1401a 
of title 10, United States Code, is amended--
            (1) in subsections (c)(1), (d), and (e), by 
        inserting ``but subject to subsection (f)(2)'' after 
        ``Notwithstanding subsection (b)'';
            (2) in subsection (c)(2), by inserting ``(subject 
        to subsection (f)(2) as applied to other members whose 
        retired pay is computed on the current rates of basic 
        pay in the most recent adjustment under this section)'' 
        after ``shall be increased''; and
            (3) in subsection (f)--
                    (A) by designating the text after the 
                subsection heading as paragraph (1), indenting 
                that text two ems, and inserting ``Prevention 
                of retired pay inversions.--'' before 
                ``Notwithstanding''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Prevention of cola inversions.--The 
        percentage of the first adjustment under this section 
        in the retired pay of any person, as determined under 
        subsection (c)(1), (c)(2), (d), or (e), may not exceed 
        the percentage increase in retired pay determined under 
        subsection (b)(2) that is effective on the same date as 
        the effective date of such first adjustment.''.
    (b) Technical Amendments.--Such section is further 
amended--
            (1) in subsection (d), by inserting ``or on or 
        after August 1, 1986, if the member or former member 
        did not elect to receive a bonus under section 322 of 
        title 37'' after ``August 1, 1986,''; and
            (2) in subsection (e), by inserting ``and elected 
        to receive a bonus under section 322 of title 37'' 
        after ``August 1, 1986,''.

SEC. 634. TECHNICAL REVISIONS TO SO-CALLED ``FORGOTTEN WIDOWS'' ANNUITY 
                    PROGRAM.

    (a) Clarification of Eligibility.--Subsection (a)(1) of 
section 644 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 1448 note) is 
amended--
            (1) in subparagraph (A), by inserting after ``(A)'' 
        the following: ``became entitled to retired or retainer 
        pay before September 21, 1972,''; and
            (2) in subparagraph (B), by striking ``was a member 
        of a reserve component of the Armed Forces'' and 
        inserting ``died''.
    (b) Clarification of Interaction With Other Benefits.--(1) 
Subsection (a)(2) of such section is amended by striking ``and 
who'' and all that follows through ``note)''.
    (2) Subsection (b)(2) of such section is amended to read as 
follows:
    ``(2) The amount of an annuity to which a surviving spouse 
is entitled under this section for any period shall be reduced 
(but not below zero) by any amount paid to that surviving 
spouse for the same period under any of the following 
provisions of law:
            ``(A) Section 1311(a) of title 38, United States 
        Code (relating to dependency and indemnity compensation 
        payable by the Secretary of Veterans Affairs).
            ``(B) Chapter 73 of title 10, United States Code.
            ``(C) Section 4 of Public Law 92-425 (10 U.S.C. 
        1448 note).''.
    (c) Clarification of Definition of Surviving Spouse.--
Subsection (d)(2) of such section is amended by striking ``the 
terms'' and all that follows through ``and (8)'' and inserting 
``such term in paragraph (9)''.
    (d) Specification in Law of Current Benefit Amount.--
Subsection (b) of such section is amended--
            (1) in paragraph (1), by striking ``$165'' and 
        inserting ``$185.58''; and
            (2) in paragraph (3)--
                    (A) by striking ``the date of the enactment 
                of this Act'' and inserting ``May 1, 2002,''; 
                and
                    (B) by striking the last sentence.
    (e) Specification of Enactment Month.--Subsection (e) of 
such section is amended--
            (1) in paragraph (1), by striking ``the month in 
        which this Act is enacted'' and inserting ``November 
        1997''; and
            (2) in paragraph (2), by striking ``the first month 
        that begins after the month in which this Act is 
        enacted'' and inserting ``December 1997''.

SEC. 635. EXPANSION OF AUTHORITY OF SECRETARY OF DEFENSE TO WAIVE TIME 
                    LIMITATIONS ON CLAIMS AGAINST THE GOVERNMENT FOR 
                    MILITARY PERSONNEL BENEFITS.

    (a) Authority for Waiver of Time Limitations.--Paragraph 
(1) of section 3702(e) of title 31, United States Code, is 
amended by striking ``a claim'' and all that follows through 
``title 10'' and inserting ``a claim referred to in subsection 
(a)(1)(A)''.
    (b) Technical Amendments.--(1) Such paragraph is further 
amended--
            (A) by striking ``Upon the request'' and all that 
        follows through ``the Secretary of Defense'' and 
        inserting ``The Secretary of Defense'';
            (B) by striking ``and, subject to paragraph (2), 
        settle the claim''; and
            (C) by adding at the end the following new 
        sentence: ``In the case of a claim by or with respect 
        to a member of the uniformed services who is not under 
        the jurisdiction of the Secretary of a military 
        department, such a waiver may be made only upon the 
        request of the Secretary concerned (as defined in 
        section 101 of title 37).''.
    (2) Paragraph (2) of such section is amended--
            (A) by striking ``under paragraph (1)'' and 
        inserting ``under subsection (a)(1)(A)''; and
            (B) by inserting before the period at the end the 
        following: ``, except that in the case of a claim for 
        retired pay or survivor benefits, if the obligation 
        claimed would have been paid from a trust fund if 
        timely paid, the payment of the claim shall be made 
        from that trust fund''.
    (c) Effective Date.--The amendment made by subsection (a) 
shall apply with respect to claims against the United States 
presented to the Secretary of Defense under section 3702 of 
title 31, United States Code, on or after the date of the 
enactment of this Act.

SEC. 636. SPECIAL COMPENSATION FOR CERTAIN COMBAT-RELATED DISABLED 
                    UNIFORMED SERVICES RETIREES.

    (a) Authority.--(1) Chapter 71 of title 10, United States 
Code, is amended by inserting after section 1413 the following 
new section:

``Sec. 1413a. Special compensation for certain combat-related disabled 
                    uniformed services retirees

    ``(a) Authority.--The Secretary concerned shall pay to each 
eligible combat-related disabled uniformed services retiree who 
elects benefits under this section a monthly amount for the 
combat-related disability of the retiree determined under 
subsection (b).
    ``(b) Amount.--
            ``(1) Determination of monthly amount.--Subject to 
        paragraphs (2) and (3), the monthly amount to be paid 
        an eligible combat-related disabled uniformed services 
        retiree for a combat-related disability under 
        subsection (a) is the monthly amount of compensation to 
        which the retiree would be entitled solely for the 
        combat-related disability consistent with chapter 11 of 
        title 38.
            ``(2) Maximum amount.--The amount paid to an 
        eligible combat-related disabled uniformed services 
        retiree for any month under paragraph (1) may not 
        exceed the amount of the reduction in retired pay that 
        is applicable to the retiree for that month under 
        sections 5304 and 5305 of title 38.
            ``(3) Special rules for chapter 61  disability 
        retirees.--In the case of an eligible combat-related 
        disabled uniformed services retiree who is retired 
        under chapter 61 of this title, the amount of the 
        payment under paragraph (1) for any month shall be 
        reduced by the amount (if any) by which the amount of 
        the member's retired pay under chapter 61 of this title 
        exceeds the amount of retired pay to which the member 
        would have been entitled under any other provision of 
        law based upon the member's service in the uniformed 
        services if the member had not been retired under 
        chapter 61 of this title.
    ``(c) Eligible Retirees.--For purposes of this section, an 
eligible combat-related disabled uniformed services retiree 
referred to in subsection (a) is a member of the uniformed 
services entitled to retired pay who--
            ``(1) has completed at least 20 years of service in 
        the uniformed services that are creditable for purposes 
        of computing the amount of retired pay to which the 
        member is entitled; and
            ``(2) has a qualifying combat-related disability.
    ``(d) Procedures.--The Secretary of Defense shall prescribe 
procedures and criteria under which a disabled uniformed 
services retiree may apply to the Secretary of a military 
department to be considered to be an eligible combat-related 
disabled uniformed services retiree. Such procedures shall 
apply uniformly throughout the Department of Defense.
    ``(e) Qualifying Combat-Related Disability.--In this 
section, the term `qualifying combat-related disability' means 
either of the following:
            ``(1) A disability that--
                    ``(A) is attributable to an injury for 
                which the member was awarded the Purple Heart; 
                and
                    ``(B) is rated as not less than 10 percent 
                disabling--
                            ``(i) by the Secretary concerned, 
                        as of the date on which the member is 
                        retired from the uniformed services, 
                        under criteria prescribed by the 
                        Secretary of Defense; or
                            ``(ii) by the Secretary of Veterans 
                        Affairs.
            ``(2) A service-connected disability that--
                    ``(A) was incurred (as determined under 
                criteria prescribed by the Secretary of 
                Defense)--
                            ``(i) as a direct result of armed 
                        conflict;
                            ``(ii) while engaged in hazardous 
                        service;
                            ``(iii) in the performance of duty 
                        under conditions simulating war; or
                            ``(iv) through an instrumentality 
                        of war; and
                    ``(B) is rated as not less than 60 percent 
                disabling--
                            ``(i) by the Secretary concerned, 
                        as of the date on which the member is 
                        retired from the uniformed services, 
                        under criteria prescribed by the 
                        Secretary of Defense; or
                            ``(ii) by the Secretary of Veterans 
                        Affairs.
    ``(f) Construction with Special Compensation for Severely 
Disabled Uniformed Services Retirees.--
            ``(1) Single source of compensation.--An individual 
        who is paid special compensation under this section may 
        not receive special compensation under section 1413 of 
        this title.
            ``(2) Election of source.--An individual who is 
        eligible for special compensation under this section 
        and special compensation under section 1413 of this 
        title shall elect which special compensation to 
        receive.
            ``(3) Regulations.--The Secretary of Defense shall 
        prescribe in regulations the manner and form of an 
        election under this subsection.
    ``(g) Status of Payments.--Payments under this section are 
not retired pay.
    ``(h) Source of Payments.--Payments under this section for 
any fiscal year shall be paid out of funds appropriated for pay 
and allowances payable by the Secretary concerned for that 
fiscal year.
    ``(i) Other Definitions.--In this section:
            ``(1) The term `service-connected' has the meaning 
        given such term in section 101 of title 38.
            ``(2) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval 
        pension.''.
    (2) Section 1413a of title 10, United States Code, as added 
by paragraph (1), shall take effect not later than 180 days 
after the date of the enactment of this Act.
    (3) The table of sections at the beginning of chapter 71 of 
such title is amended by inserting after the item relating to 
section 1413 the following new item:

``1413a. Special compensation for certain combat-related disabled 
          uniformed services retirees.''.

    (b) Special Compensation for Certain Severely Disabled 
Uniformed Services Retirees.--Section 1413 of title 10, United 
States Code, is amended--
            (1) by redesignating subsections (e), (f) and (g) 
        as subsections (f), (g), and (h), respectively; and
            (2) by inserting after subsection (d) the following 
        new subsection (e):
    ``(e) Construction with Special Compensation for Combat-
Disabled Uniformed Services Retirees.--(1) An individual who is 
paid special compensation under this section may not receive 
special compensation under section 1413a of this title.
    ``(2) An individual who is eligible for special 
compensation under this section and special compensation under 
section 1413a of this title shall elect which special 
compensation to receive.
    ``(3) The Secretary of Defense shall prescribe in 
regulations the manner and form of an election under this 
subsection.''.

                     Subtitle E--Montgomery GI Bill

SEC. 641. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL ENTITLEMENT BY 
                    MEMBERS OF THE SELECTED RESERVE.

    (a) Extension of Limitation Period.--Section 16133(a)(1) of 
title 10, United States Code, is amended by striking ``10-
year'' and inserting ``14-year''.
    (b) Effective Date and Applicability.--The amendment made 
by subsection (a) shall take effect on October 1, 2002, and 
shall apply with respect to periods of entitlement to 
educational assistance under chapter 1606 of title 10, United 
States Code, that begin on or after October 1, 1992.

SEC. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT MONTGOMERY GI 
                    BILL ARISING FROM FAILURE TO PARTICIPATE 
                    SATISFACTORILY IN MILITARY SERVICE TO BE CONSIDERED 
                    DEBTS OWED TO THE UNITED STATES.

    Section 16135 of title 10, United States Code, is amended 
by adding at the end the following new subsection:
    ``(c)(1) Subject to subsection (a)(2), an obligation to pay 
a refund to the United States under subsection (a)(1)(B) in an 
amount determined under subsection (b) is, for all purposes, a 
debt owed to the United States.
    ``(2) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of an 
enlistment or other agreement under this section does not 
discharge the person signing such enlistment or other agreement 
from a debt arising under the enlistment or agreement, 
respectively, under this subsection.''.

SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN MEMBERS TO 
                    TRANSFER EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI 
                    BILL TO DEPENDENTS.

    (a) Clarification of Rate of Educational Assistance for 
Dependents to Whom Entitlement Is Transferred.--Section 3020(h) 
of title 38, United States Code, is amended--
            (1) in paragraph (2)--
                    (A) by striking ``paragraphs (4) and (5)'' 
                and inserting ``paragraphs (5) and (6)''; and
                    (B) by striking ``and at the same rate'';
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (3) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3)(A) Subject to subparagraph (B), the monthly rate of 
educational assistance payable to a dependent to whom 
entitlement is transferred under this section shall be the 
monthly amount payable under sections 3015 and 3022 of this 
title to the individual making the transfer.
    ``(B) The monthly rate of assistance payable to a dependent 
under subparagraph (A) shall be subject to the provisions of 
section 3032 of this title, except that the provisions of 
subsection (a)(1) of that section shall not apply even if the 
individual making the transfer to the dependent under this 
section is on active duty during all or any part of enrollment 
period of the dependent in which such entitlement is used.''.
    (b) Source of Funds From Increased Usage.--Section 3035(b) 
of such title is amended--
            (1) in paragraph (1), by striking ``paragraphs (2) 
        and (3) of this subsection'' and inserting ``paragraphs 
        (2), (3), and (4)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(4) Payments attributable to the increased usage of 
benefits as a result of transfers of entitlement to basic 
educational assistance under section 3020 of this title shall 
be made from the Department of Defense Education Benefits Fund 
established under section 2006 of title 10 or from 
appropriations made to the Department of Transportation, as 
appropriate.''.
    (c) Effective Date.--(1) The amendments made by subsection 
(a) shall take effect as if included in the enactment of 
section 3020 of title 38, United States Code, by section 
654(a)(1) of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1153).
    (2) The amendments made by subsection (b) shall take effect 
as if made by section 654 of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1153).

                       Subtitle F--Other Matters

SEC. 651. PAYMENT OF INTEREST ON STUDENT LOANS.

    (a) Authority.--(1) Chapter 109 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2174. Interest payment program: members on active duty

    ``(a) Authority.--(1) The Secretary concerned may pay in 
accordance with this section the interest and any special 
allowances that accrue on one or more student loans of an 
eligible member of the armed forces.
    ``(2) The Secretary of a military department may exercise 
the authority under paragraph (1) only if approved by the 
Secretary of Defense and subject to such requirements, 
conditions, and restrictions as the Secretary of Defense may 
prescribe.
    ``(b) Eligible Members.--A member of the armed forces is 
eligible for the benefit under subsection (a) while the 
member--
            ``(1) is serving on active duty in fulfillment of 
        the member's first enlistment in the armed forces or, 
        in the case of an officer, is serving on active duty 
        and has not completed more than three years of service 
        on active duty;
            ``(2) is the debtor on one or more unpaid loans 
        described in subsection (c); and
            ``(3) is not in default on any such loan.
    ``(c) Student Loans.--The authority to make payments under 
subsection (a) may be exercised with respect to the following 
loans:
            ``(1) A loan made, insured, or guaranteed under 
        part B of title IV of the Higher Education Act of 1965 
        (20 U.S.C. 1071 et seq.).
            ``(2) A loan made under part D of such title (20 
        U.S.C. 1087a et seq.).
            ``(3) A loan made under part E of such title (20 
        U.S.C. 1087aa et seq.).
    ``(d) Maximum Benefit.--The months for which interest and 
any special allowance may be paid on behalf of a member of the 
armed forces under this section are any 36 consecutive months 
during which the member is eligible under subsection (b).
    ``(e) Funds for Payments.--Appropriations available for the 
pay and allowances of military personnel shall be available for 
payments under this section.
    ``(f) Coordination.--(1) The Secretary of Defense and, with 
respect to the Coast Guard when it is not operating as a 
service in the Navy, the Secretary of the Department in which 
the Coast Guard is operating shall consult with the Secretary 
of Education regarding the administration of the authority 
under this section.
    ``(2) The Secretary concerned shall transfer to the 
Secretary of Education the funds necessary--
            ``(A) to pay interest and special allowances on 
        student loans under this section (in accordance with 
        sections 428(o), 455(l), and 464(j) of the Higher 
        Education Act of 1965 (20 U.S.C. 1078(o), 1087e(l), and 
        1087dd(j)); and
            ``(B) to reimburse the Secretary of Education for 
        any reasonable administrative costs incurred by the 
        Secretary in coordinating the program under this 
        section with the administration of the student loan 
        programs under parts B, D, and E of title IV of the 
        Higher Education Act of 1965.
    ``(g) Special Allowance Defined.--In this section, the term 
`special allowance' means a special allowance that is payable 
under section 438 of the Higher Education Act of 1965 (20 
U.S.C. 1087-1).''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2174. Interest payment program: members on active duty.''.

    (b) Federal Family Education Loans and Direct Loans.--(1) 
Subsection (c)(3) of section 428 of the Higher Education Act of 
1965 (20 U.S.C. 1078) is amended--
            (A) in clause (i) of subparagraph (A)--
                    (i) by striking ``or'' at the end of 
                subclause (II);
                    (ii) by inserting ``or'' at the end of 
                subclause (III); and
                    (iii) by adding at the end the following 
                new subclause:
                                    ``(IV) is eligible for 
                                interest payments to be made on 
                                such loan for service in the 
                                Armed Forces under section 2174 
                                of title 10, United States 
                                Code, and, pursuant to that 
                                eligibility, the interest is 
                                being paid on such loan under 
                                subsection (o);'';
            (B) in clause (ii)(II) of subparagraph (A), by 
        inserting ``or (IV)'' after ``clause (i)(II)''; and
            (C) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) shall contain provisions that specify 
                that--
                            ``(i) the form of forbearance 
                        granted by the lender pursuant to this 
                        paragraph, other than subparagraph 
                        (A)(i)(IV), shall be temporary 
                        cessation of payments, unless the 
                        borrower selects forbearance in the 
                        form of an extension of time for making 
                        payments, or smaller payments than were 
                        previously scheduled; and
                            ``(ii) the form of forbearance 
                        granted by the lender pursuant to 
                        subparagraph (A)(i)(IV) shall be the 
                        temporary cessation of all payments on 
                        the loan other than payments of 
                        interest on the loan that are made 
                        under subsection (o); and''.
    (2) Section 428 of such Act is further amended by adding at 
the end the following new subsection:
    ``(o) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer 
        to the Secretary under section 2174 of title 10, United 
        States Code, for the payment of interest and any 
        special allowance on a loan to a member of the Armed 
        Forces that is made, insured, or guaranteed under this 
        part, the Secretary shall pay the interest and special 
        allowance on such loan as due for a period not in 
        excess of 36 consecutive months. The Secretary may not 
        pay interest or any special allowance on such a loan 
        out of any funds other than funds that have been so 
        transferred.
            ``(2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph 
        (1), the lender shall grant the borrower forbearance in 
        accordance with the guaranty agreement under subsection 
        (c)(3)(A)(i)(IV).
            ``(3) Special allowance defined.--For the purposes 
        of this subsection, the term `special allowance', means 
        a special allowance that is payable with respect to a 
        loan under section 438.''.
    (c) Federal Direct Loans.--Section 455 of the Higher 
Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at 
the end the following new subsection:
    ``(l) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer 
        to the Secretary under section 2174 of title 10, United 
        States Code, for the payment of interest on a loan made 
        under this part to a member of the Armed Forces, the 
        Secretary shall pay the interest on the loan as due for 
        a period not in excess of 36 consecutive months. The 
        Secretary may not pay interest on such a loan out of 
        any funds other than funds that have been so 
        transferred.
            ``(2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph 
        (1), the Secretary shall grant the borrower 
        forbearance, in the form of a temporary cessation of 
        all payments on the loan other than the payments of 
        interest on the loan that are made under that 
        paragraph.''.
    (d) Federal Perkins Loans.--Section 464 of the Higher 
Education Act of 1965 (20 U.S.C. 1087dd) is amended--
            (1) in subsection (e)--
                    (A) by striking ``or'' at the end of 
                paragraph (1);
                    (B) by striking the period at the end of 
                paragraph (2) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) the borrower is eligible for interest 
        payments to be made on such loan for service in the 
        Armed Forces under section 2174 of title 10, United 
        States Code, and, pursuant to that eligibility, the 
        interest on such loan is being paid under subsection 
        (j), except that the form of a forbearance under this 
        paragraph shall be a temporary cessation of all 
        payments on the loan other than payments of interest on 
        the loan that are made under subsection (j).''; and
            (2) by adding at the end the following new 
        subsection:
    ``(j) Armed Forces Student Loan Interest Payment Program.--
            ``(1) Authority.--Using funds received by transfer 
        to the Secretary under section 2174 of title 10, United 
        States Code, for the payment of interest on a loan made 
        under this part to a member of the Armed Forces, the 
        Secretary shall pay the interest on the loan as due for 
        a period not in excess of 36 consecutive months. The 
        Secretary may not pay interest on such a loan out of 
        any funds other than funds that have been so 
        transferred.
            ``(2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph 
        (1), the institution of higher education shall grant 
        the borrower forbearance in accordance with subsection 
        (e)(3).''.
    (e) Effective Date.--The amendments made by this section 
shall apply with respect to interest, and any special allowance 
under section 438 of the Higher Education Act of 1965, that 
accrue for months beginning on or after October 1, 2003, on 
student loans described in subsection (c) of section 2174 of 
title 10, United States Code (as added by subsection (a)), that 
were made before, on, or after such date to members of the 
Armed Forces who are on active duty (as defined in section 
101(d) of title 10, United States Code) on or after that date.

SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF 
                    MEMBERS OF THE ARMED FORCES.

    (a) Authority.--(1) Subchapter I of chapter 88 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 1788. Additional family assistance

    ``(a) Authority.--The Secretary of Defense may provide for 
the families of members of the armed forces serving on active 
duty, in addition to any other assistance available for such 
families, any assistance that the Secretary considers 
appropriate to ensure that the children of such members obtain 
needed child care, education, and other youth services.
    ``(b) Primary Purpose of Assistance.--The assistance 
authorized by this section should be directed primarily toward 
providing needed family support, including child care, 
education, and other youth services, for children of members of 
the Armed Forces who are deployed, assigned to duty, or ordered 
to active duty in connection with a contingency operation.''.
    (2) The table of sections at the beginning of such 
subchapter is amended by adding at the end the following new 
item:

``1788. Additional family assistance.''.

    (b) Effective Date.--Section 1788 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
October 1, 2002.

SEC. 653. REPEAL OF AUTHORITY FOR ACCEPTANCE OF HONORARIA BY PERSONNEL 
                    AT CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

    (a) Repeal of Exemption.--Section 542 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484; 106 Stat. 2413; 10 U.S.C. prec. 2161 note) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) 
shall apply with respect to appearances made, speeches 
presented, and articles published on or after October 1, 2002.

SEC. 654. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES IN TITLE 
                    37.

    (a) Definition.--Section 101(1) of title 37, United States 
Code, is amended--
            (1) by inserting ``(A)'' after ``(1)''; and
            (2) by adding at the end the following new 
        subparagraph:
            ``(B) The term `continental United States' means 
        the 48 contiguous States and the District of 
        Columbia.''.
    (b) Conforming Amendments.--Title 37, United States Code, 
is amended as follows:
            (1) Section 314(a)(3) is amended by striking ``the 
        48 contiguous States and the District of Columbia'' and 
        inserting ``the continental United States''.
            (2) Section 403b(i) is amended by striking 
        paragraph (6).
            (3) Section 409 is amended by striking subsection 
        (e).
            (4) Section 411b(a) is amended by striking ``the 48 
        contiguous States and the District of Columbia'' both 
        places it appears and inserting ``the continental 
        United States''.
            (5) Section 411d is amended by striking subsection 
        (d).
            (6) Section 430 is amended by striking subsection 
        (f) and inserting the following new subsection (f):
    ``(f) Definitions.--In this section:
            ``(1) The term `formal education' means the 
        following:
                    ``(A) A secondary education.
                    ``(B) An undergraduate college education.
                    ``(C) A graduate education pursued on a 
                full-time basis at an institution of higher 
                education.
                    ``(D) Vocational education pursued on a 
                full-time basis at a postsecondary vocational 
                institution.
            ``(2) The term `institution of higher education' 
        has the meaning given that term in section 101 of the 
        Higher Education Act of 1965 (20 U.S.C. 1001).
            ``(3) The term `postsecondary vocational 
        institution' has the meaning given that term in section 
        102(c) of the Higher Education Act of 1965 (20 U.S.C. 
        1002(c)).''.

                   TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
          inpatient mental health care for medicare-eligible 
          beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote 
          locations after departure of sponsors for unaccompanied 
          assignments and eligibility of dependents of reserve component 
          members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program 
          benefits after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
          Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for 
          members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
          services contracts for the performance of health care 
          responsibilities at locations other than military medical 
          treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
          TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
          Veterans Affairs.

                           Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
          TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and 
          health care resources following domestic acts of terrorism or 
          domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
          Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
          and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
          resources.

              Subtitle A--Health Care Program Improvements

SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE PREAUTHORIZATION OF 
                    INPATIENT MENTAL HEALTH CARE FOR MEDICARE-ELIGIBLE 
                    BENEFICIARIES.

    (a) Elimination of Requirement.--Section 1079(i)(3) of 
title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Except in the case of an 
        emergency,'' and inserting ``Except as provided in 
        subparagraph (B),''; and
            (3) by adding at the end the following new 
        subparagraphs:
    ``(B) Preadmission authorization for inpatient mental 
health services is not required under subparagraph (A) in the 
following cases:
            ``(i) In the case of an emergency.
            ``(ii) In a case in which any benefits are payable 
        for such services under part A of title XVIII of the 
        Social Security Act (42 U.S.C. 1395c et seq.), subject 
        to subparagraph (C).
    ``(C) In a case of inpatient mental health services to 
which subparagraph (B)(ii) applies, the Secretary shall require 
advance authorization for a continuation of the provision of 
such services after benefits cease to be payable for such 
services under such part A.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect October 1, 2003.

SEC. 702. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS RESIDING AT 
                    REMOTE LOCATIONS AFTER DEPARTURE OF SPONSORS FOR 
                    UNACCOMPANIED ASSIGNMENTS AND ELIGIBILITY OF 
                    DEPENDENTS OF RESERVE COMPONENT MEMBERS ORDERED TO 
                    ACTIVE DUTY.

    Section 1079(p) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``dependents 
        referred to in subsection (a) of a member of the 
        uniformed services referred to in section 1074(c)(3) of 
        this title who are residing with the member'' and 
        inserting ``dependents described in paragraph (3)'';
            (2) by redesignating paragraph (3) as paragraph 
        (4); and
            (3) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) This subsection applies with respect to a dependent 
referred to in subsection (a) who--
            ``(A) is a dependent of a member of the uniformed 
        services referred to in section 1074(c)(3) of this 
        title and is residing with the member;
            ``(B) is a dependent of a member who, after having 
        served in a duty assignment described in section 
        1074(c)(3) of this title, has relocated without the 
        dependent pursuant to orders for a permanent change of 
        duty station from a remote location described in 
        subparagraph (B)(ii) of such section where the member 
        and the dependent resided together while the member 
        served in such assignment, if the orders do not 
        authorize dependents to accompany the member to the new 
        duty station at the expense of the United States and 
        the dependent continues to reside at the same remote 
        location, or
            ``(C) is a dependent of a reserve component member 
        ordered to active duty for a period of more than 30 
        days and is residing with the member, and the residence 
        is located more than 50 miles, or approximately one 
        hour of driving time, from the nearest military medical 
        treatment facility adequate to provide the needed 
        care.''.

SEC. 703. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE DENTAL 
                    PROGRAM BENEFITS AFTER DISCONTINUANCE OF FORMER 
                    ENROLLMENT.

    Section 1076a(k)(2) of title 10, United States Code, is 
amended by striking ``if the dependent is enrolled on the date 
of the death of the member in a dental benefits plan 
established under subsection (a)'' and inserting ``if, on the 
date of the death of the member, the dependent is enrolled in a 
dental benefits plan established under subsection (a) or is not 
enrolled in such a plan by reason of a discontinuance of a 
former enrollment under subsection (f)''.

SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
                    FUND.

    (a) Source of Funds for Monthly Accrual Payments Into the 
Fund.--Section 1116(c) of title 10, United States Code, is 
amended by striking ``health care programs'' and inserting 
``pay of members''.
    (b) Mandatory Participation of Other Uniformed Services.--
Section 1111(c) of such title is amended--
            (1) in the first sentence, by striking ``may enter 
        into an agreement with any other administering 
        Secretary'' and inserting ``shall enter into an 
        agreement with each other administering Secretary''; 
        and
            (2) in the second sentence, by striking ``Any 
        such'' and inserting ``The''.

SEC. 705. APPROVAL OF MEDICARE PROVIDERS AS TRICARE PROVIDERS.

    (a) In General.--Section 1079 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection:
    ``(q) Subject to subsection (a), a physician or other 
health care practitioner who is eligible to receive 
reimbursement for services provided under medicare (as defined 
in section 1086(d)(3)(C) of this title) shall be considered 
approved to provide medical care authorized under this section 
and section 1086 of this title unless the administering 
Secretaries have information indicating medicare, TRICARE, or 
other Federal health care program integrity violations by the 
physician or other health care practitioner.''.
    (b) Applicability.--The amendment made by subsection (a) 
shall apply with respect to any contract under the TRICARE 
program entered into on or after the date of the enactment of 
this Act.

SEC. 706. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL HEALTH CARE 
                    FOR MEMBERS SEPARATED FROM ACTIVE DUTY.

    (a) Continued Applicability to Dependents.--Subsection 
(a)(1) of section 736 of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1172) is 
amended to read as follows:
            ``(1) in paragraph (1), by striking `paragraph (2), 
        a member' and all that follows through `of the 
        member),' and inserting `paragraph (3), a member of the 
        armed forces who is separated from active duty as 
        described in paragraph (2) (and the dependents of the 
        member)';''.
    (b) Clarification Regarding the Coast Guard.--Subsection 
(b)(2) of such section is amended to read as follows:
            ``(2) in subsection (e)--
                    ``(A) by striking the first sentence; and
                    ``(B) by striking `the Coast Guard' in the 
                second sentence and inserting `the members of 
                the Coast Guard and their dependents'.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect as of December 28, 2001, and as if included 
in the National Defense Authorization Act for Fiscal Year 2002 
as enacted.

SEC. 707. EXTENSION OF TEMPORARY AUTHORITY TO ENTER INTO PERSONAL 
                    SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH 
                    CARE RESPONSIBILITIES AT LOCATIONS OTHER THAN 
                    MILITARY MEDICAL TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is 
amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

SEC. 708. ACCESS TO HEALTH CARE SERVICES FOR BENEFICIARIES ELIGIBLE FOR 
                    TRICARE AND DEPARTMENT OF VETERANS AFFAIRS HEALTH 
                    CARE.

    (a) Requirement To Establish Process.--(1) The Secretary of 
Defense shall prescribe in regulations a process for resolving 
issues relating to patient safety and continuity of care for 
covered beneficiaries who are concurrently entitled to health 
care under the TRICARE program and eligible for health care 
services provided by the Department of Veterans Affairs. The 
Secretary shall--
            (A) ensure that the process provides for 
        coordination of, and access to, health care from the 
        two sources in a manner that prevents diminution of 
        access to health care from either source; and
            (B) in consultation with the Secretary of Veterans 
        Affairs, prescribe a clear definition of an ``episode 
        of care'' for use in the resolution of patient safety 
        and continuity of care issues under such process.
    (2) Not later than May 1, 2003, the Secretary shall submit 
to the Committees on Armed Services of the Senate and of the 
House of Representatives a report describing the process 
prescribed under paragraph (1).
    (3) While prescribing the process under paragraph (1) and 
upon completion of the report under paragraph (2), the 
Secretary shall provide to the Comptroller General information 
that would be relevant in carrying out the study required by 
subsection (b).
    (b) Comptroller General Study and Report.--(1) The 
Comptroller General shall conduct a study of the health care 
issues of covered beneficiaries described in subsection (a). 
The study shall include the following:
            (A) An analysis of whether covered beneficiaries 
        who seek services through the Department of Veterans 
        Affairs are receiving needed health care services in a 
        timely manner from the Department of Veterans Affairs, 
        as compared to the timeliness of the care available to 
        covered beneficiaries under TRICARE Prime (as set forth 
        in access to care standards under TRICARE program 
        policy that are applicable to the care being sought).
            (B) An evaluation of the quality of care for 
        covered beneficiaries who do not receive needed 
        services from the Department of Veterans Affairs within 
        a time period that is comparable to the time period 
        provided for under such access to care standards and 
        who then must seek alternative care under the TRICARE 
        program.
            (C) Recommendations to improve access to, and 
        timeliness and quality of, care for covered 
        beneficiaries described in subsection (a).
            (D) An evaluation of the feasibility and 
        advisability of making access to care standards 
        applicable jointly under the TRICARE program and the 
        Department of Veterans Affairs health care system.
            (E) A review of the process prescribed by the 
        Secretary of Defense under subsection (a) to determine 
        whether the process ensures the adequacy and quality of 
        the health care services provided to covered 
        beneficiaries under the TRICARE program and through the 
        Department of Veterans Affairs, together with 
        timeliness of access to such services and patient 
        safety.
    (2) Not later than 60 days after the congressional 
committees specified in subsection (a)(2) receive the report 
required under that subsection, the Comptroller General shall 
submit to those committees a report on the study conducted 
under this subsection.
    (c) Definitions.--In this section:
            (1) The term ``covered beneficiary'' has the 
        meaning provided by section 1072(5) of title 10, United 
        States Code.
            (2) The term ``TRICARE program'' has the meaning 
        provided by section 1072(7) of such title.
            (3) The term ``TRICARE Prime'' has the meaning 
        provided by section 1097a(f) of such title.

SEC. 709. DISCLOSURE OF INFORMATION ON PROJECT 112 TO DEPARTMENT OF 
                    VETERANS AFFAIRS.

    (a) Plan for Disclosure of Information.--Not later than 90 
days after the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress and the Secretary of 
Veterans Affairs a comprehensive plan for the review, 
declassification, and submittal to the Department of Veterans 
Affairs of all records and information of the Department of 
Defense on Project 112 that are relevant to the provision of 
benefits by the Secretary of Veterans Affairs to members of the 
Armed Forces who participated in that project.
    (b) Plan Requirements.--(1) The records and information 
covered by the plan under subsection (a) shall be the records 
and information necessary to permit the identification of 
members of the Armed Forces who were or may have been exposed 
to chemical or biological agents as a result of Project 112.
    (2) The plan shall provide for completion of all activities 
contemplated by the plan not later than one year after the date 
of the enactment of this Act.
    (c) Identification of Other Projects or Tests.--The 
Secretary of Defense also shall work with veterans and veterans 
service organizations to identify other projects or tests 
conducted by the Department of Defense that may have exposed 
members of the Armed Forces to chemical or biological agents.
    (d) GAO Reports on Plan and Implementation.--(1) Not later 
than 30 days after submission of the plan under subsection (a), 
the Comptroller General shall submit to Congress a report 
reviewing the plan. The report shall include an examination of 
whether adequate resources have been committed, the timeliness 
of the information to be released to the Department of Veterans 
Affairs, and the adequacy of the procedures to notify affected 
veterans of potential exposure.
    (2) Not later than six months after implementation of the 
plan begins, the Comptroller General shall submit to Congress a 
report evaluating the progress in the implementation of the 
plan.
    (e) DOD Reports on Implementation.--(1) Not later than six 
months after the date of the enactment of this Act, and upon 
completion of all activities contemplated by the plan under 
subsection (a), the Secretary of Defense shall submit to 
Congress and the Secretary of Veterans Affairs a report on 
progress in the implementation of the plan.
    (2) Each report under paragraph (1) shall include, for the 
period covered by such report--
            (A) the number of records reviewed;
            (B) each test, if any, under Project 112 identified 
        during such review;
            (C) for each test so identified--
                    (i) the test name;
                    (ii) the test objective;
                    (iii) the chemical or biological agent or 
                agents involved; and
                    (iv) the number of members of the Armed 
                Forces, and civilian personnel, potentially 
                effected by such test; and
            (D) the extent of submittal of records and 
        information to the Secretary of Veterans Affairs under 
        this section.
    (f) Project 112.--For purposes of this section, Project 112 
refers to the chemical and biological weapons vulnerability-
testing program of the Department of Defense conducted by the 
Deseret Test Center from 1963 to 1969. The project included the 
Shipboard Hazard and Defense (SHAD) project of the Navy.

                          Subtitle B--Reports

SEC. 711. CLAIMS INFORMATION.

    (a) Correspondence to Medicare Claims Information 
Requirements.--Section 1095c of title 10, United States Code, 
is amended by adding at the end the following new subsection:
    ``(d) Correspondence to Medicare Claims Information 
Requirements.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall limit the 
information required in support of claims for payment for 
health care items and services provided under the TRICARE 
program to that information that is identical to the 
information that would be required for claims for reimbursement 
for those items and services under title XVIII of the Social 
Security Act (42 U.S.C. 1395 et seq.) except for that 
information, if any, that is uniquely required by the TRICARE 
program. The Secretary of Defense shall report to the Committee 
on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives any information that 
is excepted under this provision, and the justification for 
that exception.''.
    (b) Applicability.--The Secretary of Defense, in 
consultation with the other administering Secretaries referred 
to in section 1072(3) of title 10, United States Code, shall 
apply the limitations required under subsection (d) of section 
1095c of such title (as added by subsection (a)) with respect 
to contracts entered into under the TRICARE program on or after 
October 1, 2002.
    (c) Comptroller General Report on TRICARE Claims 
Processing.--Not later than March 31, 2003, the Comptroller 
General shall submit to Congress an evaluation of the 
continuing impediments to cost effective claims processing 
under the TRICARE program. The evaluation shall include a 
discussion of the following:
            (1) The extent of progress implementing 
        improvements in claims processing, particularly 
        regarding the application of best industry practices.
            (2) The extent of progress in simplifying claims 
        processing procedures, including the elimination of, or 
        reduction in, the complexity of the Health Care Service 
        Record requirements.
            (3) The cost effectiveness of the data collection 
        and fraud prevention capabilities of existing claims 
        processing practices.
            (4) Recommendations for improving the claims 
        processing system that will reduce processing and 
        administration costs, create greater competition, and 
        improve fraud-prevention activities.

SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF CARE UNDER THE 
                    TRICARE PROGRAM.

    Not later than March 31, 2003, the Comptroller General 
shall submit to Congress an evaluation of the nature of, 
reasons for, extent of, and trends regarding network provider 
instability under the TRICARE program, and the effectiveness of 
efforts by the Department of Defense and managed care support 
contractors to measure and mitigate such instability. The 
evaluation shall include a discussion of the following:
            (1) The adequacy of measurement tools of TRICARE 
        network instability and their use by the Department of 
        Defense and managed care support contractors to assess 
        network adequacy and stability.
            (2) Recommendations for improvements needed in 
        measurement tools or their application.
            (3) The relationship of reimbursement rates and 
        administration requirements (including preauthorization 
        requirements) to TRICARE network instability.
            (4) The extent of problems under the TRICARE 
        program and likely future trends with and without 
        intervention using existing authority.
            (5) Use of existing authority by the Department of 
        Defense and TRICARE managed care support contractors to 
        apply higher reimbursement rates in specific geographic 
        areas.
            (6) Recommendations for specific fiscally prudent 
        measures that could mitigate negative trends or improve 
        provider and network stability.

SEC. 713. REPEAL OF REPORT REQUIREMENT.

    Notwithstanding subsection (f)(2) of section 712 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-179), the amendment made by subsection (e) of such 
section shall not take effect and the paragraph amended by such 
subsection is repealed.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

SEC. 721. REVISED COORDINATION AND SHARING GUIDELINES.

    (a) In General.--(1) Section 8111 of title 38, United 
States Code, is amended to read as follows:

``Sec. 8111. Sharing of Department of Veterans Affairs and Department 
                    of Defense health care resources

    ``(a) Required Coordination and Sharing of Health Care 
Resources.--The Secretary of Veterans Affairs and the Secretary 
of Defense shall enter into agreements and contracts for the 
mutually beneficial coordination, use, or exchange of use of 
the health care resources of the Department of Veterans Affairs 
and the Department of Defense with the goal of improving the 
access to, and quality and cost effectiveness of, the health 
care provided by the Veterans Health Administration and the 
Military Health System to the beneficiaries of both 
Departments.
    ``(b) Joint Requirements for Secretaries of Veterans 
Affairs and Defense.--To facilitate the mutually beneficial 
coordination, use, or exchange of use of the health care 
resources of the two Departments, the two Secretaries shall 
carry out the following functions:
            ``(1) Develop and publish a joint strategic vision 
        statement and a joint strategic plan to shape, focus, 
        and prioritize the coordination and sharing efforts 
        among appropriate elements of the two Departments and 
        incorporate the goals and requirements of the joint 
        sharing plan into the strategic and performance plan of 
        each Department under the Government Performance and 
        Results Act.
            ``(2) Jointly fund the interagency committee 
        provided for under subsection (c).
            ``(3) Continue to facilitate and improve sharing 
        between individual Department of Veterans Affairs and 
        Department of Defense health care facilities, but 
        giving priority of effort to initiatives (A) that 
        improve sharing and coordination of health resources at 
        the intraregional and nationwide levels, and (B) that 
        improve the ability of both Departments to provide 
        coordinated health care.
            ``(4) Establish a joint incentive program under 
        subsection (d).
    ``(c) DOD-VA Health Executive Committee.--(1) There is 
established an interagency committee to be known as the 
Department of Veterans Affairs-Department of Defense Health 
Executive Committee (hereinafter in this section referred to as 
the `Committee'). The Committee is composed of--
            ``(A) the Deputy Secretary of Veterans Affairs and 
        such other officers and employees of the Department of 
        Veterans Affairs as the Secretary of Veterans Affairs 
        may designate; and
            ``(B) the Under Secretary of Defense for Personnel 
        and Readiness and such other officers and employees of 
        the Department of Defense as the Secretary of Defense 
        may designate.
    ``(2)(A) During odd-numbered fiscal years, the Deputy 
Secretary of Veterans Affairs shall chair the Committee. During 
even-numbered fiscal years, the Under Secretary of Defense 
shall chair the Committee.
    ``(B) The Deputy Secretary and the Under Secretary shall 
determine the size and structure of the Committee, as well as 
the administrative and procedural guidelines for the operation 
of the Committee. The two Departments shall share equally the 
Committee's cost of personnel and administrative support and 
services. Support for such purposes shall be provided at a 
level sufficient for the efficient operation of the Committee, 
including a permanent staff and, as required, other temporary 
working groups of appropriate departmental staff and outside 
experts.
    ``(3) The Committee shall recommend to the Secretaries 
strategic direction for the joint coordination and sharing 
efforts between and within the two Departments under this 
section and shall oversee implementation of those efforts.
    ``(4) The Committee shall submit to the two Secretaries and 
to Congress an annual report containing such recommendations as 
the Committee considers appropriate.
    ``(5) In order to enable the Committee to make 
recommendations in its annual report under paragraph (4), the 
Committee shall do the following:
            ``(A) Review existing policies, procedures, and 
        practices relating to the coordination and sharing of 
        health care resources between the two Departments.
            ``(B) Identify changes in policies, procedures, and 
        practices that, in the judgment of the Committee, would 
        promote mutually beneficial coordination, use, or 
        exchange of use of the health care resources of the two 
        Departments, with the goal of improving the access to, 
        and quality and cost effectiveness of, the health care 
        provided by the Veterans Health Administration and the 
        Military Health System to the beneficiaries of both 
        Departments.
            ``(C) Identify and assess further opportunities for 
        the coordination and sharing of health care resources 
        between the Departments that, in the judgment of the 
        Committee, would not adversely affect the range of 
        services, the quality of care, or the established 
        priorities for care provided by either Department.
            ``(D) Review the plans of both Departments for the 
        acquisition of additional health care resources, 
        especially new facilities and major equipment and 
        technology, in order to assess the potential effect of 
        such plans on further opportunities for the 
        coordination and sharing of health care resources.
            ``(E) Review the implementation of activities 
        designed to promote the coordination and sharing of 
        health care resources between the Departments.
    ``(6) The Committee chairman, under procedures jointly 
developed by the two Secretaries, may require the Inspector 
General of either or both Departments to assist in activities 
under paragraph (5)(E).
    ``(d) Joint Incentives Program.--(1) Pursuant to subsection 
(b)(4), the two Secretaries shall carry out a program to 
identify, provide incentives to, implement, fund, and evaluate 
creative coordination and sharing initiatives at the facility, 
intraregional, and nationwide levels. The program shall be 
administered by the Committee established in subsection (c), 
under procedures jointly prescribed by the two Secretaries.
    ``(2) To facilitate the incentive program, effective 
October 1, 2003, there is established in the Treasury a fund to 
be known as the `DOD-VA Health Care Sharing Incentive Fund'. 
Each Secretary shall annually contribute to the fund a minimum 
of $15,000,000 from the funds appropriated to that Secretary's 
Department. Such funds shall remain available until expended.
    ``(3)(A) For each fiscal year during which the program 
under this subsection is in effect, the Comptroller General 
shall conduct a review of the implementation and effectiveness 
of the incentives program under this subsection. Upon 
completion of each such annual review, the Comptroller General 
shall submit to the Committees on Armed Services and Veterans' 
Affairs of the Senate and House of Representatives a report on 
the results of that review. Each such report shall be submitted 
not later than February 28 of the year following the fiscal 
year covered by the report. In addition, the Comptroller 
General shall conduct such a review during the first five 
months of fiscal year 2004 and, not later than February 28, 
2004, shall submit to those committees a report on the 
implementation and effectiveness of the incentives program 
under this subsection to that date.
    ``(B) Each report under this paragraph shall describe 
activities carried out under the program under this subsection 
during the preceding fiscal year (or, in the case of the first 
such report, to the date of the submission of the report). Each 
report shall include at least the following:
            ``(i) An analysis of the initiatives funded by the 
        Committee, and the funds so expended by such 
        initiatives, from the DOD-VA Health Care Sharing 
        Incentive Fund, including the purposes and effects of 
        those initiatives on improving access to care by 
        beneficiaries, improvements in the quality of care 
        received by those beneficiaries, and efficiencies 
        gained in delivering services to those beneficiaries.
            ``(ii) Other matters of interest, including 
        recommendations from the Comptroller General for 
        legislative improvements to the program.
    ``(4) The program under this subsection shall terminate on 
September 30, 2007.
    ``(e) Guidelines and Policies for Implementation of 
Coordination and Sharing Recommendations, Contracts, and 
Agreements.--(1) To implement the recommendations made by the 
Committee under subsection (c)(2), as well as to carry out 
other health care contracts and agreements for coordination and 
sharing initiatives as they consider appropriate, the two 
Secretaries shall jointly issue guidelines and policy 
directives. Such guidelines and policies shall provide for 
coordination and sharing that--
            ``(A) is consistent with the health care 
        responsibilities of the Department of Veterans Affairs 
        under this title and with the health care 
        responsibilities of the Department of Defense under 
        chapter 55 of title 10;
            ``(B) will not adversely affect the range of 
        services, the quality of care, or the established 
        priorities for care provided by either Department; and
            ``(C) will not reduce capacities in certain 
        specialized programs of the Department of Veterans 
        Affairs that the Secretary is required to maintain in 
        accordance with section 1706(b) of this title.
    ``(2) To facilitate the sharing and coordination of health 
care services between the two Departments, the two Secretaries 
shall jointly develop and implement guidelines for a 
standardized, uniform payment and reimbursement schedule for 
those services. Such schedule shall be implemented no later 
than October 1, 2003, and shall be revised periodically as 
necessary. The two Secretaries, following implementation of the 
schedule, may on a case-by-case basis waive elements of the 
schedule if they jointly agree that such a waiver is in the 
best interests of both Departments.
    ``(3)(A) The guidelines established under paragraph (1) 
shall authorize the heads of individual Department of Defense 
and Department of Veterans Affairs medical facilities and 
service regions to enter into health care resources 
coordination and sharing agreements.
    ``(B) Under any such agreement, an individual who is a 
primary beneficiary of one Department may be provided health 
care, as provided in the agreement, at a facility or in the 
service region of the other Department that is a party to the 
sharing agreement.
    ``(C) Each such agreement shall identify the health care 
resources to be shared.
    ``(D) Each such agreement shall provide, and shall specify 
procedures designed to ensure, that the availability of direct 
health care to individuals who are not primary beneficiaries of 
the providing Department is (i) on a referral basis from the 
facility or service region of the other Department, and (ii) 
does not (as determined by the head of the providing facility 
or region) adversely affect the range of services, the quality 
of care, or the established priorities for care provided to the 
primary beneficiaries of the providing Department.
    ``(E) Each such agreement shall provide that a providing 
Department or service region shall be reimbursed for the cost 
of the health care resources provided under the agreement and 
that the rate of such reimbursement shall be as determined in 
accordance with paragraph (2).
    ``(F) Each proposal for an agreement under this paragraph 
shall be effective (i) on the 46th day after the receipt of 
such proposal by the Committee, unless earlier disapproved, or 
(ii) if earlier approved by the Committee, on the date of such 
approval.
    ``(G) Any funds received through such a uniform payment and 
reimbursement schedule shall be credited to funds that have 
been allotted to the facility of either Department that 
provided the care or services, or is due the funds from, any 
such agreement.
    ``(f) Annual Joint Report.--(1) At the time the President's 
budget is transmitted to Congress in any year pursuant to 
section 1105 of title 31, the two Secretaries shall submit to 
Congress a joint report on health care coordination and sharing 
activities under this section during the fiscal year that ended 
during the previous calendar year.
    ``(2) Each report under this section shall include the 
following:
            ``(A) The guidelines prescribed under subsection 
        (e) (and any revision of such guidelines).
            ``(B) The assessment of further opportunities 
        identified under subparagraph (C) of subsection (c)(5) 
        for the sharing of health-care resources between the 
        two Departments.
            ``(C) Any recommendation made under subsection 
        (c)(4) during such fiscal year.
            ``(D) A review of the sharing agreements entered 
        into under subsection (e) and a summary of activities 
        under such agreements during such fiscal year and a 
        description of the results of such agreements in 
        improving access to, and the quality and cost 
        effectiveness of, the health care provided by the 
        Veterans Health Administration and the Military Health 
        System to the beneficiaries of both Departments.
            ``(E) A summary of other planning and activities 
        involving either Department in connection with 
        promoting the coordination and sharing of Federal 
        health-care resources during the preceding fiscal year.
            ``(F) Such recommendations for legislation as the 
        two Secretaries consider appropriate to facilitate the 
        sharing of health-care resources between the two 
        Departments.
    ``(3) In addition to the matters specified in paragraph 
(2), the two Secretaries shall include in the annual report 
under this subsection an overall status report of the progress 
of health resources sharing between the two Departments as a 
consequence of subtitle C of title VII of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 and of 
other sharing initiatives taken during the period covered by 
the report. Such status report shall indicate the status of 
such sharing and shall include appropriate data as well as 
analyses of that data. The annual report shall include the 
following:
            ``(A) Enumerations and explanations of major policy 
        decisions reached by the two Secretaries during the 
        period covered by the report period with respect to 
        sharing between the two Departments.
            ``(B) A description of progress made in new 
        ventures or particular areas of sharing and 
        coordination that would be of policy interest to 
        Congress consistent with the intent of such subtitle.
            ``(C) A description of enhancements of access to 
        care of beneficiaries of both Departments that came 
        about as a result of new sharing approaches brought 
        about by such subtitle.
            ``(D) A description of proposals for which funds 
        are provided through the joint incentives program under 
        subsection (d), together with a description of their 
        results or status at the time of the report, including 
        access improvements, savings, and quality-of-care 
        enhancements they brought about, and a description of 
        any additional use of funds made available under 
        subsection (d).
    ``(4) In addition to the matters specified in paragraphs 
(2) and (3), the two Secretaries shall include in the annual 
report under this subsection for each year through 2008 the 
following:
            ``(A) A description of the measures taken, or 
        planned to be taken, to implement the health resources 
        sharing project under section 722 of the Bob Stump 
        National Defense Authorization Act for Fiscal Year 2003 
        and any cost savings anticipated, or cost sharing 
        achieved, at facilities participating in the project, 
        including information on improvements in access to 
        care, quality, and timeliness, as well as impediments 
        encountered and legislative recommendations to 
        ameliorate such impediments.
            ``(B) A description of the use of the waiver 
        authority provided by section 722(d)(1) of the Bob 
        Stump National Defense Authorization Act for Fiscal 
        Year 2003, including--
                    ``(i) a statement of the numbers and types 
                of requests for waivers under that section of 
                administrative policies that have been made 
                during the period covered by the report and, 
                for each such request, an explanation of the 
                content of each request, the intended purpose 
                or result of the requested waiver, and the 
                disposition of each request; and
                    ``(ii) descriptions of any new 
                administrative policies that enhance the 
                success of the project.
    ``(5) In addition to the matters specified in paragraphs 
(2), (3), and (4), the two Secretaries shall include in the 
annual report under this subsection for each year through 2009 
a report on the pilot program for graduate medical education 
under section 725 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003, including activities 
under the program during the preceding year and each 
Secretary's assessment of the efficacy of providing education 
and training under that program.
    ``(g) Definitions.--For the purposes of this section:
            ``(1) The term `beneficiary' means a person who is 
        a primary beneficiary of the Department of Veterans 
        Affairs or of the Department of Defense.
            ``(2) The term `direct health care' means health 
        care provided to a beneficiary in a medical facility 
        operated by the Department of Veterans Affairs or the 
        Department of Defense.
            ``(3) The term `head of a medical facility' (A) 
        with respect to a medical facility of the Department of 
        Veterans Affairs, means the director of the facility, 
        and (B) with respect to a medical facility of the 
        Department of Defense, means the medical or dental 
        officer in charge or the contract surgeon in charge.
            ``(4) The term `health-care resource' includes 
        hospital care, medical services, and rehabilitative 
        services, as those terms are defined in paragraphs (5), 
        (6), and (8), respectively, of section 1701 of this 
        title, services under sections 1782 and 1783 of this 
        title, any other health-care service, and any health-
        care support or administrative resource.
            ``(5) The term `primary beneficiary' (A) with 
        respect to the Department means a person who is 
        eligible under this title (other than under section 
        1782, 1783, or 1784 or subsection (d) of this section) 
        or any other provision of law for care or services in 
        Department medical facilities, and (B) with respect to 
        the Department of Defense, means a member or former 
        member of the Armed Forces who is eligible for care 
        under section 1074 of title 10.
            ``(6) The term `providing Department' means the 
        Department of Veterans Affairs, in the case of care or 
        services furnished by a facility of the Department of 
        Veterans Affairs, and the Department of Defense, in the 
        case of care or services furnished by a facility of the 
        Department of Defense.
            ``(7) The term `service region' means a geographic 
        service area of the Veterans Health Administration, in 
        the case of the Department of Veterans Affairs, and a 
        service region, in the case of the Department of 
        Defense.''.
    (2) The item relating to that section in the table of 
sections at the beginning of chapter 81 of title 38, United 
States Code, is amended to read as follows:

``8111. Sharing of Department of Veterans Affairs and Department of 
          Defense health care resources.''.

    (b) Conforming Amendment.--Section 1104(a) of title 10, 
United States Code, is amended by striking ``may'' and 
inserting ``shall''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2003.

SEC. 722. HEALTH CARE RESOURCES SHARING AND COORDINATION PROJECT.

    (a) Establishment.--(1) The Secretary of Veterans Affairs 
and the Secretary of Defense shall conduct a health care 
resources sharing project to serve as a test for evaluating the 
feasibility, and the advantages and disadvantages, of measures 
and programs designed to improve the sharing and coordination 
of health care and health care resources between the Department 
of Veterans Affairs and the Department of Defense. The project 
shall be carried out, as a minimum, at the sites identified 
under subsection (b).
    (2) Reimbursement between the two Departments with respect 
to the project under this section shall be made in accordance 
with the provisions of section 8111(e)(2) of title 38, United 
States Code, as amended by section 721(a).
    (b) Site Identification.--(1) Not later than 90 days after 
the date of the enactment of this Act, the Secretaries shall 
jointly identify not less than three sites for the conduct of 
the project under this section.
    (2) For purposes of this section, a site at which the 
resource sharing project shall be carried out is an area in the 
United States in which--
            (A) one or more military treatment facilities and 
        one or more VA health care facilities are situated in 
        relative proximity to each other, including facilities 
        engaged in joint ventures as of the date of the 
        enactment of this Act; and
            (B) for which an agreement to coordinate care and 
        programs for patients at those facilities could be 
        implemented not later than October 1, 2004.
    (c) Conduct of Project.--(1) At sites at which the project 
is conducted, the Secretaries shall provide a test of a 
coordinated management system for the military treatment 
facilities and VA health care facilities participating in the 
project. Such a coordinated management system for a site shall 
include at least one of the elements specified in paragraph 
(2), and each of the elements specified in that paragraph must 
be included in the coordinated management system for at least 
one of the participating sites.
    (2) Elements of a coordinated management system referred to 
in paragraph (1) are the following:
            (A) A budget and financial management system for 
        those facilities that--
                    (i) provides managers with information 
                about the costs of providing health care by 
                both Departments at the site; and
                    (ii) allows managers to assess the 
                advantages and disadvantages (in terms of 
                relative costs, benefits, and opportunities) of 
                using resources of either Department to provide 
                or enhance health care to beneficiaries of 
                either Department.
            (B) A coordinated staffing and assignment system 
        for the personnel (including contract personnel) 
        employed at or assigned to those facilities, including 
        clinical practitioners of either Department.
            (C) Medical information and information technology 
        systems for those facilities that--
                    (i) are compatible with the purposes of the 
                project;
                    (ii) communicate with medical information 
                and information technology systems of 
                corresponding elements of those facilities; and
                    (iii) incorporate minimum standards of 
                information quality that are at least 
                equivalent to those adopted for the Departments 
                at large in their separate health care systems.
    (d) Authority To Waive Certain Administrative Policies.--
(1)(A) In order to carry out subsection (c), the Secretary of 
Defense may, in the Secretary's discretion, waive any 
administrative policy of the Department of Defense otherwise 
applicable to that subsection that specifically conflicts with 
the purposes of the project, in instances in which the 
Secretary determines that the waiver is necessary for the 
purposes of the project.
    (B) In order to carry out subsection (c), the Secretary of 
Veterans Affairs may, in the Secretary's discretion, waive any 
administrative policy of the Department of Veterans Affairs 
otherwise applicable to that subsection that specifically 
conflicts with the purposes of the project, in instances in 
which the Secretary determines that the waiver is necessary for 
the purposes of the project.
    (C) The two Secretaries shall establish procedures for 
resolving disputes that may arise from the effects of policy 
changes that are not covered by other agreements or existing 
procedures.
    (2) No waiver under paragraph (1) may alter any labor-
management agreement in effect as of the date of the enactment 
of this Act or adopted by either Department during the period 
of the project.
    (e) Use by DOD of Certain Title 38 Personnel Authorities.--
(1) In order to carry out subsection (c), the Secretary of 
Defense may apply to civilian personnel of the Department of 
Defense assigned to or employed at a military treatment 
facility participating in the project any of the provisions of 
subchapters I, III, and IV of chapter 74 of title 38, United 
States Code, determined appropriate by the Secretary.
    (2) For purposes of paragraph (1), any reference in chapter 
74 of title 38, United States Code--
            (A) to the ``Secretary'' or the ``Under Secretary 
        for Health'' shall be treated as referring to the 
        Secretary of Defense; and
            (B) to the ``Veterans Health Administration'' shall 
        be treated as referring to the Department of Defense.
    (f) Funding.--From amounts available for health care for a 
fiscal year, each Secretary shall make available to carry out 
the project not less than--
            (1) $3,000,000 for fiscal year 2003;
            (2) $6,000,000 for fiscal year 2004; and
            (3) $9,000,000 for each succeeding year during 
        which the project is in effect.
    (g) Definitions.--For purposes of this section:
            (1) The term ``military treatment facility'' means 
        a medical facility under the jurisdiction of the 
        Secretary of a military department.
            (2) The term ``VA health care facility'' means a 
        facility under the jurisdiction of the Veterans Health 
        Administration of the Department of Veterans Affairs.
    (h) Performance Review.--(1) The Comptroller General shall 
provide for an annual on-site review at each of the project 
locations selected by the Secretaries under this section.
    (2) Not later than 90 days after completion of the annual 
review under paragraph (1), the Comptroller General shall 
submit a report on such review to the Committees on Armed 
Services and Veterans' Affairs of the Senate and House of 
Representatives.
    (3) Each such report shall include the following:
            (A) The strategic mission coordination between 
        shared activities.
            (B) The accuracy and validity of performance data 
        used to evaluate sharing performance and changes in 
        standards of care or services at the shared facilities.
            (C) A statement that all appropriated funds 
        designated for sharing activities are being used for 
        direct support of sharing initiatives.
            (D) Recommendations concerning continuance of the 
        project at each site for the succeeding 12-month 
        period.
    (4) Whenever there is a recommendation under paragraph 
(3)(D) to discontinue a resource sharing project under this 
section, the two Secretaries shall act upon that recommendation 
as soon as practicable.
    (5) In the initial report under this subsection, the 
Comptroller General shall validate the baseline information 
used for comparative analysis.
    (i) Termination.--(1) The project, and the authority 
provided by this section, shall terminate on September 30, 
2007.
    (2) The two Secretaries jointly may terminate the 
performance of the project at any site when the performance of 
the project at that site fails to meet performance expectations 
of the Secretaries, based on recommendations from the 
Comptroller General under subsection (h) or on other 
information available to the Secretaries to warrant such 
action.

SEC. 723. REPORT ON IMPROVED COORDINATION AND SHARING OF HEALTH CARE 
                    AND HEALTH CARE RESOURCES FOLLOWING DOMESTIC ACTS 
                    OF TERRORISM OR DOMESTIC USE OF WEAPONS OF MASS 
                    DESTRUCTION.

    (a) Joint Review.--The Secretary of Defense and the 
Secretary of Veterans Affairs shall jointly review the adequacy 
of current processes and existing statutory authorities and 
policy governing the capability of the Department of Defense 
and the Department of Veterans Affairs to provide health care 
to members of the Armed Forces following domestic acts of 
terrorism or domestic use of weapons of mass destruction, both 
before and after any declaration of national emergency. Such 
review shall include a determination of the adequacy of current 
authorities in providing for the coordination and sharing of 
health care resources between the two Departments in such 
cases, particularly before the declaration of a national 
emergency.
    (b) Report to Congress.--The two Secretaries shall include 
a joint report on the review under subsection (a), including 
any recommended legislative changes, shall be submitted to 
Congress as part of the fiscal year 2004 budget submission to 
Congress.

SEC. 724. INTEROPERABILITY OF DEPARTMENT OF VETERANS AFFAIRS AND 
                    DEPARTMENT OF DEFENSE PHARMACY DATA SYSTEMS.

    (a) Interoperability.--The Secretary of Veterans Affairs 
and the Secretary of Defense shall seek to ensure that on or 
before October 1, 2004, the Department of Veterans Affairs 
pharmacy data system and the Department of Defense pharmacy 
data system (known as the ``Pharmacy Data Transaction System'') 
are interoperable for both Department of Defense beneficiaries 
and Department of Veterans Affairs beneficiaries by achieving 
real-time interface, data exchange, and checking of 
prescription drug data of outpatients, and using national 
standards for the exchange of outpatient medication 
information.
    (b) Alternative Requirement.--If the interoperability 
specified in subsection (a) is not achieved by October 1, 2004, 
as determined jointly by the Secretary of Defense and the 
Secretary of Veterans Affairs, the Secretary of Veterans 
Affairs shall adopt the Department of Defense Pharmacy Data 
Transaction System for use by the Department of Veterans 
Affairs health care system. Such system shall be fully 
operational not later than October 1, 2005.
    (c) Implementation Funding for Alternative Requirement.--
The Secretary of Defense shall transfer to the Secretary of 
Veterans Affairs, or shall otherwise bear the cost of, an 
amount sufficient to cover three-fourths of the cost to the 
Department of Veterans Affairs for computer programming 
activities and relevant staff training expenses related to 
implementation of subsection (b). Such amount shall be 
determined in such manner as agreed to by the two Secretaries.

SEC. 725. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL EDUCATION 
                    AND TRAINING FOR PHYSICIANS.

    (a) In General.--The Secretary of Defense and the Secretary 
of Veterans Affairs shall jointly carry out a pilot program 
under which graduate medical education and training is provided 
to military physicians and physician employees of the 
Department of Defense and the Department of Veterans Affairs 
through one or more programs carried out in military medical 
treatment facilities of the Department of Defense and medical 
centers of the Department of Veterans Affairs. The pilot 
program shall begin not later than January 1, 2003.
    (b) Cost-Sharing Agreement.--The Secretaries shall enter 
into an agreement for carrying out the pilot program. The 
agreement shall establish means for each Secretary to assist in 
paying the costs, with respect to individuals under the 
jurisdiction of that Secretary, incurred by the other Secretary 
in providing medical education and training under the pilot 
program.
    (c) Use of Existing Authorities.--To carry out the pilot 
program, the Secretary of Defense and the Secretary of Veterans 
Affairs may use authorities provided to them under this 
subtitle, section 8111 of title 38, United States Code (as 
amended by section 721(a)), and other laws relating to the 
furnishing or support of medical education and the cooperative 
use of facilities.
    (d) Termination of Program.--The pilot program under this 
section shall terminate on July 31, 2008.
    (e) Repeal of Superseded Provision.--Section 738 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107; 10 U.S.C. 1094 note; 115 Stat.1173) is repealed.

SEC. 726. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS AFFAIRS 
                    RESOURCES.

    (a) Repeal of VA Bed Limits.--Section 8110(a)(1) of title 
38, United States Code, is amended--
            (1) in the first sentence, by striking ``at not 
        more than 125,000 and not less than 100,000'';
            (2) in the third sentence, by striking ``shall 
        operate and maintain a total of not less than 90,000 
        hospital beds and nursing home beds and''; and
            (3) in the fourth sentence, by striking ``to enable 
        the Department to operate and maintain a total of not 
        less than 90,000 hospital and nursing home beds in 
        accordance with this paragraph and''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on October 1, 2003.

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

              Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
          defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
          award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

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

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
          to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
          and procedures applicable to the civilian acquisition 
          workforce.
Sec. 814. Past performance given significant weight in renewal of 
          procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
          organizations or economic enterprises carrying out procurement 
          technical assistance programs in two or more service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
          and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
          requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
          survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

        Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
          negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
          defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
          contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General reviews 
          of the requirements.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
          tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services for 
          military installations.
Sec. 828. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
          resource shortfall for radiation-hardened electronics.

             Subtitle A--Acquisition Policy and Management

SEC. 801. BUY-TO-BUDGET ACQUISITION OF END ITEMS.

    (a) Authority.--(1) Chapter 137 of title 10, United States 
Code, is amended by inserting after section 2307 the following 
new section:

``Sec. 2308. Buy-to-budget acquisition: end items

    ``(a) Authority To Acquire Additional End Items.--Using 
funds available to the Department of Defense for the 
acquisition of an end item, the head of an agency making the 
acquisition may acquire a higher quantity of the end item than 
the quantity specified for the end item in a law providing for 
the funding of that acquisition if that head of an agency makes 
each of the following findings:
            ``(1) The agency has an established requirement for 
        the end item that is expected to remain substantially 
        unchanged throughout the period of the acquisition.
            ``(2) It is possible to acquire the higher quantity 
        of the end item without additional funding because of 
        production efficiencies or other cost reductions.
            ``(3) The amount of the funds used for the 
        acquisition of the higher quantity of the end item will 
        not exceed the amount provided under that law for the 
        acquisition of the end item.
            ``(4) The amount so provided is sufficient to 
        ensure that each unit of the end item acquired within 
        the higher quantity is fully funded as a complete end 
        item.
    ``(b) Regulations.--The Secretary of Defense shall 
prescribe regulations for the administration of this section. 
The regulations shall include, at a minimum, the following:
            ``(1) The level of approval within the Department 
        of Defense that is required for a decision to acquire a 
        higher quantity of an end item under subsection (a).
            ``(2) Authority (subject to subsection (a)) to 
        acquire up to 10 percent more than the quantity of an 
        end item approved in a justification and approval of 
        the use of procedures other than competitive procedures 
        for the acquisition of the end item under section 2304 
        of this title.
    ``(c) Notification of Congress.--The head of an agency is 
not required to notify Congress in advance regarding a decision 
under the authority of this section to acquire a higher 
quantity of an end item than is specified in a law described in 
subsection (a), but shall notify the congressional defense 
committees of the decision not later than 30 days after the 
date of the decision.
    ``(d) Waiver by Other Law.--A provision of law may not be 
construed as prohibiting the acquisition of a higher quantity 
of an end item under this section unless that provision of 
law--
            ``(1) specifically refers to this section; and
            ``(2) specifically states that the acquisition of 
        the higher quantity of the end item is prohibited 
        notwithstanding the authority provided in this section.
    ``(e) Definitions.--(1) For the purposes of this section, a 
quantity of an end item shall be considered specified in a law 
if the quantity is specified either in a provision of that law 
or in any related representation that is set forth separately 
in a table, chart, or explanatory text included in a joint 
explanatory statement or governing committee report 
accompanying the law.
    ``(2) In this section:
                    ``(A) The term `congressional defense 
                committees' means--
                            ``(i) the Committee on Armed 
                        Services and the Committee on 
                        Appropriations of the Senate; and
                            ``(ii) the Committee on Armed 
                        Services and the Committee on 
                        Appropriations of the House of 
                        Representatives.
                    ``(B) The term `end item' means a 
                production product assembled, completed, and 
                ready for issue or deployment.
                    ``(C) The term `head of an agency' means 
                the Secretary of Defense, the Secretary of the 
                Army, the Secretary of the Navy, and the 
                Secretary of the Air Force.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2307 
the following new item:

``2308. Buy-to-budget acquisition: end items.''.

    (b) Time for Issuance of Final Regulations.--The Secretary 
of Defense shall issue the final regulations under section 
2308(b) of title 10, United States Code (as added by subsection 
(a)), not later than 120 days after the date of the enactment 
of this Act.

SEC. 802. REPORT TO CONGRESS ON EVOLUTIONARY ACQUISITION OF MAJOR 
                    DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required.--(1) Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the approach that the Secretary plans to take to apply the 
requirements listed in paragraph (2) to major defense 
acquisition programs that follow the evolutionary acquisition 
process.
    (2) The requirements referred to in paragraph (1) are--
            (A) the requirements of chapter 144 of title 10, 
        United States Code;
            (B) sections 139, 181, 2366, 2399, and 2400 of such 
        title;
            (C) Department of Defense Directive 5000.1;
            (D) Department of Defense Instruction 5000.2;
            (E) Chairman of the Joint Chiefs of Staff 
        Instruction 3170.01B; and
            (F) other provisions of law and regulations 
        (including successor documents) that are applicable to 
        such programs.
    (b) Content of Report.--The report shall, at a minimum, 
address the following matters:
            (1) The manner in which the Secretary plans to 
        establish and approve, for each increment of an 
        evolutionary acquisition process--
                    (A) operational requirements; and
                    (B) cost and schedule goals.
            (2) The manner in which the Secretary plans, for 
        each increment of an evolutionary acquisition process--
                    (A) to meet requirements for operational 
                testing and live fire testing;
                    (B) to monitor cost and schedule 
                performance; and
                    (C) to comply with laws requiring reports 
                to Congress on results testing and on cost and 
                schedule performance.
            (3) The manner in which the Secretary plans to 
        ensure that each increment of an evolutionary 
        acquisition process is designed--
                    (A) to achieve interoperability within and 
                among United States forces and United States 
                coalition partners; and
                    (B) to optimize total system performance 
                and minimize total ownership costs by giving 
                appropriate consideration to--
                            (i) logistics planning;
                            (ii) manpower, personnel, and 
                        training;
                            (iii) human, environmental, safety, 
                        occupational health, accessibility, 
                        survivability, operational continuity, 
                        and security factors;
                            (iv) protection of critical program 
                        information; and
                            (v) spectrum management.
    (c) Definitions.--In this section:
            (1) The term ``evolutionary acquisition process'' 
        means a process by which an acquisition program is 
        conducted through discrete phases or blocks, with each 
        phase or block consisting of the planned definition, 
        development, production or acquisition, and fielding of 
        hardware or software that provides operationally useful 
        capability.
            (2) The term ``increment'', with respect to an 
        evolutionary acquisition program, means one of the 
        discrete phases or blocks of such program.
            (3) The term ``major defense acquisition program'' 
        has the meaning given such term in section 139(a)(2)(B) 
        of title 10, United States Code.

SEC. 803. SPIRAL DEVELOPMENT UNDER MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Authority.--The Secretary of Defense is authorized to 
conduct major defense acquisition programs as spiral 
development programs.
    (b) Limitation on Spiral Development Programs.--A research 
and development program for a major defense acquisition program 
of a military department or Defense Agency may not be conducted 
as a spiral development program unless the Secretary of Defense 
approves the spiral development plan for that research and 
development program in accordance with subsection (c). The 
Secretary of Defense may delegate authority to approve the plan 
to the Under Secretary of Defense for Acquisition, Technology, 
and Logistics, or to the senior acquisition executive of the 
military department or Defense Agency concerned, but such 
authority may not be further delegated.
    (c) Spiral Development Plans.--A spiral development plan 
for a research and development program for a major defense 
acquisition program shall, at a minimum, include the following 
matters:
            (1) A rationale for dividing the research and 
        development program into separate spirals, together 
        with a preliminary identification of the spirals to be 
        included.
            (2) A program strategy, including overall cost, 
        schedule, and performance goals for the total research 
        and development program.
            (3) Specific cost, schedule, and performance 
        parameters, including measurable exit criteria, for the 
        first spiral to be conducted.
            (4) A testing plan to ensure that performance 
        goals, parameters, and exit criteria are met.
            (5) An appropriate limitation on the number of 
        prototype units that may be produced under the research 
        and development program.
            (6) Specific performance parameters, including 
        measurable exit criteria, that must be met before the 
        major defense acquisition program proceeds into 
        production of units in excess of the limitation on the 
        number of prototype units.
    (d) Guidance.--Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense shall issue 
guidance for the implementation of spiral development programs 
authorized by this section. The guidance shall include 
appropriate processes for ensuring the independent validation 
of exit criteria being met, the operational assessment of 
fieldable prototypes, and the management of spiral development 
programs.
    (e) Reporting Requirement.--The Secretary shall submit to 
Congress by September 30 of each of 2003 through 2008 a status 
report on each research and development program that is a 
spiral development program. The report shall contain 
information on unit costs that is similar to the information on 
unit costs under major defense acquisition programs that is 
required to be provided to Congress under chapter 144 of title 
10, United States Code, except that the information on unit 
costs shall address projected prototype costs instead of 
production costs.
    (f) Applicability of Existing Law.--Nothing in this section 
shall be construed to exempt any program of the Department of 
Defense from the application of any provision of chapter 144 of 
title 10, United States Code, section 139, 181, 2366, 2399, or 
2400 of such title, or any requirement under Department of 
Defense Directive 5000.1, Department of Defense Instruction 
5000.2, or Chairman of the Joint Chiefs of Staff Instruction 
3170.01B in accordance with the terms of such provision or 
requirement.
    (g) Definitions.--In this section:
            (1) The term ``spiral development program'', with 
        respect to a research and development program, means a 
        program that--
                    (A) is conducted in discrete phases or 
                blocks, each of which will result in the 
                development of fieldable prototypes; and
                    (B) will not proceed into acquisition until 
                specific performance parameters, including 
                measurable exit criteria, have been met.
            (2) The term ``spiral'' means one of the discrete 
        phases or blocks of a spiral development program.
            (3) The term ``major defense acquisition program'' 
        has the meaning given such term in section 139(a)(2)(B) 
        of title 10, United States Code.

SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISITION PROCESSES.

    (a) Establishment of Programs.--(1) The Secretary of each 
military department shall establish a program to improve the 
software acquisition processes of that military department.
    (2) The head of each Defense Agency that manages a major 
defense acquisition program with a substantial software 
component shall establish a program to improve the software 
acquisition processes of that Defense Agency.
    (3) The programs required by this subsection shall be 
established not later than 120 days after the date of the 
enactment of this Act.
    (b) Program Requirements.--A program to improve software 
acquisition processes under this section shall, at a minimum, 
include the following:
            (1) A documented process for software acquisition 
        planning, requirements development and management, 
        project management and oversight, and risk management.
            (2) Efforts to develop appropriate metrics for 
        performance measurement and continual process 
        improvement.
            (3) A process to ensure that key program personnel 
        have an appropriate level of experience or training in 
        software acquisition.
            (4) A process to ensure that each military 
        department and Defense Agency implements and adheres to 
        established processes and requirements relating to the 
        acquisition of software.
    (c) Department of Defense Guidance.--The Assistant 
Secretary of Defense for Command, Control, Communications, and 
Intelligence, in consultation with the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, shall--
            (1) prescribe uniformly applicable guidance for the 
        administration of all of the programs established under 
        subsection (a) and take such actions as are necessary 
        to ensure that the military departments and Defense 
        Agencies comply with the guidance; and
            (2) assist the Secretaries of the military 
        departments and the heads of the Defense Agencies to 
        carry out such programs effectively by--
                    (A) ensuring that the criteria applicable 
                to the selection of sources provides added 
                emphasis on past performance of potential 
                sources, as well as on the maturity of the 
                software products offered by the potential 
                sources; and
                    (B) identifying, and serving as a 
                clearinghouse for information regarding, best 
                practices in software development and 
                acquisition in both the public and private 
                sectors.
    (d) Definitions.--In this section:
            (1) The term ``Defense Agency'' has the meaning 
        given the term in section 101(a)(11) of title 10, 
        United States Code.
            (2) The term ``major defense acquisition program'' 
        has the meaning given such term in section 139(a)(2)(B) 
        of title 10, United States Code.

SEC. 805. PERFORMANCE GOALS FOR PROCURING SERVICES PURSUANT TO MULTIPLE 
                    AWARD CONTRACTS.

    (a) Performance Goals.--Subsection (a) of section 802 of 
the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 115 Stat. 1178; 10 U.S.C. 2330 note) is 
amended to read as follows:
    ``(a) Goals.--(1) It shall be an objective of the 
Department of Defense to achieve efficiencies in procurements 
of services pursuant to multiple award contracts through the 
use of--
            ``(A) performance-based services contracting;
            ``(B) appropriate competition for task orders under 
        services contracts;
            ``(C) program review, spending analyses, and 
        improved management of services contracts.
    ``(2) In furtherance of such objective, the Department of 
Defense shall have the following goals:
            ``(A) To increase, as a percentage of all of the 
        individual purchases of services made by or for the 
        Department of Defense under multiple award contracts 
        for a fiscal year (calculated on the basis of dollar 
        value), the volume of the individual purchases of 
        services that are made on a competitive basis and 
        involve receipt of more than one offer from qualified 
        contractors to a percentage as follows:
                    ``(i) For fiscal year 2003, a percentage 
                not less than 40 percent.
                    ``(ii) For fiscal year 2004, a percentage 
                not less than 50 percent.
                    ``(iii) For fiscal year 2011, a percentage 
                not less than 75 percent.
            ``(B) To increase, as a percentage of all of the 
        individual purchases of services made by or for the 
        Department of Defense under multiple award contracts 
        for a fiscal year (calculated on the basis of dollar 
        value), the use of performance-based purchasing 
        specifying firm fixed prices for the specific tasks to 
        be performed to a percentage as follows:
                    ``(i) For fiscal year 2003, a percentage 
                not less than 25 percent.
                    ``(ii) For fiscal year 2004, a percentage 
                not less than 35 percent.
                    ``(iii) For fiscal year 2005, a percentage 
                not less than 50 percent.
                    ``(iv) For fiscal year 2011, a percentage 
                not less than 70 percent.
    ``(3) The Secretary of Defense may adjust any percentage 
goal established in paragraph (2) if the Secretary determines 
in writing that such a goal is too high and cannot reasonably 
be achieved. In the event that the Secretary chooses to adjust 
such a goal, the Secretary shall--
            ``(A) establish a percentage goal that the 
        Secretary determines would create an appropriate 
        incentive for Department of Defense components to use 
        competitive procedures or performance-based services 
        contracting, as the case may be; and
            ``(B) submit to the congressional defense 
        committees a report containing an explanation of the 
        reasons for the Secretary's determination and a 
        statement of the new goal that the Secretary has 
        established.''.
    (b) Extension and Revision of Reporting Requirement.--
Subsection (b) of such section is amended--
            (1) by striking ``March 1, 2006'' and inserting 
        ``March 1, 2011''; and
            (2) by amending paragraph (5) to read as follows:
            ``(5) Regarding the individual purchases of 
        services that were made by or for the Department of 
        Defense under multiple award contracts in the fiscal 
        year preceding the fiscal year in which the report is 
        required to be submitted, information (determined using 
        the data collection system established under section 
        2330a of title 10, United States Code) as follows:
                    ``(A) The percentage (calculated on the 
                basis of dollar value) of such purchases that 
                are purchases that were made on a competitive 
                basis and involved receipt of more than one 
                offer from qualified contractors.
                    ``(B) The percentage (calculated on the 
                basis of dollar value) of such purchases that 
                are performance-based purchases specifying firm 
                fixed prices for the specific tasks to be 
                performed.''.
    (c) Definitions.--Such section is further amended by adding 
at the end the following new subsection:
    ``(c) Definitions.--(1) In this section, the terms 
`individual purchase' and `multiple award contract' have the 
meanings given such terms in section 803(c) of this Act.
    ``(2) For the purposes of this section, an individual 
purchase of services is made on a competitive basis only if it 
is made pursuant to procedures described in paragraphs (2), 
(3), and (4) of section 803(b) of this Act.''.
    (d) Conforming Amendment.--The heading for such section is 
amended by striking ``SAVINGS GOALS'' and inserting 
``PERFORMANCE GOALS''.

SEC. 806. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

    (a) Requirement To Establish Procedures.--Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall prescribe procedures for the rapid 
acquisition and deployment of items that are--
            (1) currently under development by the Department 
        of Defense or available from the commercial sector; and
            (2) urgently needed to react to an enemy threat or 
        to respond to significant and urgent safety situations.
    (b) Issues To Be Addressed.--The procedures prescribed 
under subsection (a) shall include the following:
            (1) A process for streamlined communications 
        between the Chairman of the Joint Chiefs of Staff, the 
        acquisition community, and the research and development 
        community, including--
                    (A) a process for the commanders of the 
                combatant commands and the Joint Chiefs of 
                Staff to communicate their needs to the 
                acquisition community and the research and 
                development community; and
                    (B) a process for the acquisition community 
                and the research and development community to 
                propose items that meet the needs communicated 
                by the combatant commands and the Joint Chiefs 
                of Staff.
            (2) Procedures for demonstrating, rapidly 
        acquiring, and deploying items proposed pursuant to 
        paragraph (1)(B), including--
                    (A) a process for demonstrating performance 
                and evaluating for current operational purposes 
                the existing capability of an item;
                    (B) a process for developing an acquisition 
                and funding strategy for the deployment of an 
                item; and
                    (C) a process for making deployment 
                determinations based on information obtained 
                pursuant to subparagraphs (A) and (B).
    (c) Testing Requirement.--(1) The process for demonstrating 
performance and evaluating for current operational purposes the 
existing capability of an item prescribed under subsection 
(b)(2)(A) shall include--
            (A) an operational assessment in accordance with 
        procedures prescribed by the Director of Operational 
        Test and Evaluation; and
            (B) a requirement to provide information about any 
        deficiency of the item in meeting the original 
        requirements for the item (as stated in an operational 
        requirements document or similar document) to the 
        deployment decisionmaking authority.
    (2) The process may not include a requirement for any 
deficiency of an item to be the determining factor in deciding 
whether to deploy the item.
    (d) Limitation.--The quantity of items of a system procured 
using the procedures prescribed pursuant to this section may 
not exceed the number established for low-rate initial 
production for the system. Any such items shall be counted for 
purposes of the number of items of the system that may be 
procured through low-rate initial production.

SEC. 807. QUICK-REACTION SPECIAL PROJECTS ACQUISITION TEAM.

    (a) Establishment.--The Under Secretary of Defense for 
Acquisition, Technology, and Logistics shall establish a team 
of highly qualified acquisition professionals who shall be 
available to advise the Under Secretary on actions that can be 
taken to expedite the acquisition of urgently needed systems.
    (b) Duties.--The issues on which the team may provide 
advice shall include the following:
            (1) Industrial base issues, including the limited 
        availability of suppliers.
            (2) Technology development and technology 
        transition issues.
            (3) Issues of acquisition policy, including the 
        length of the acquisition cycle.
            (4) Issues of testing policy and ensuring that 
        weapon systems perform properly in combat situations.
            (5) Issues of procurement policy, including the 
        impact of socio-economic requirements.
            (6) Issues relating to compliance with 
        environmental requirements.

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

SEC. 811. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Limitation Period.--Section 2306c of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(g) Limitation Period for Task and Delivery Order 
Contracts.--(1) The authority and restrictions of this section, 
including the authority to enter into contracts for periods of 
not more than five years, shall apply with respect to task 
order and delivery order contracts entered into under the 
authority of section 2304a, 2304b, or 2304c of this title.
    ``(2) The regulations implementing this subsection shall 
establish a preference that, to the maximum extent practicable, 
multi-year requirements for task order and delivery order 
contracts be met with separate awards to two or more sources 
under the authority of section 2304a(d)(1)(B) of this title.''.
    (b) Effective Date.--Subsection (g) of section 2306c of 
title 10, United States Code, as added by subsection (a), shall 
apply to all task order and delivery order contracts entered 
into on or after the date of the enactment of this Act.
    (c) Comptroller General Report.--Not later than March 15, 
2003, the Comptroller General shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the 
contract periods (including any options or extensions) for all 
single and multiple contract awards entered into under section 
2304a(d) of title 10, United States Code, before the effective 
date in subsection (b).

SEC. 812. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED PROCEDURES 
                    TO CERTAIN COMMERCIAL ITEMS; REPORT.

    (a) Extension of Pilot Program.--Section 4202 of the 
Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-
106; 10 U.S.C. 2304 note) is amended in subsection (e) by 
striking ``January 1, 2003'' and inserting ``January 1, 2004''.
    (b) Report Required.--(1) Not later than March 15, 2003, 
the Comptroller General shall submit to Congress a report on 
the authority to issue solicitations for purchases of 
commercial items in excess of the simplified acquisition 
threshold pursuant to the special simplified procedures 
authorized by section 2304(g)(1) of title 10, United States 
Code, and section 31(a) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 427(a)).
    (2) The report required by paragraph (1) shall address, at 
a minimum--
            (A) the extent to which such authority has been 
        used by the Secretary of Defense;
            (B) the benefits realized by the Department of 
        Defense through the use of such authority;
            (C) the impact of the use of such authority on 
        competition for contracts with the Department of 
        Defense; and
            (D) any recommendations of the Comptroller General 
        for the continuation or modification of such authority.

SEC. 813. EXTENSION AND IMPROVEMENT OF PERSONNEL DEMONSTRATION POLICIES 
                    AND PROCEDURES APPLICABLE TO THE CIVILIAN 
                    ACQUISITION WORKFORCE.

    (a) Plan Required.--(1) The Secretary of Defense shall 
develop a plan for improving the personnel management policies 
and procedures applicable to the Department of Defense civilian 
acquisition workforce based on the results of the demonstration 
project described in section 4308 of the Clinger-Cohen Act of 
1996 (divisions D and E of Public Law 104-106; 10 U.S.C. 1701 
note).
    (2) Not later than February 15, 2003, the Secretary shall 
submit to Congress the plan required under paragraph (1) and a 
report on the plan, including any recommendations for 
legislative action necessary to implement the plan.
    (b) Extension of Demonstration Project Authority.--Section 
4308 of the Clinger-Cohen Act of 1996 (divisions D and E of 
Public Law 104-106; 10 U.S.C. 1701 note) is amended--
            (1) in subsection (b)(2)(C), by striking 
        ``subsection (d)(1)(A)'' and inserting ``subsection 
        (d)(1)'';
            (2) by amending subparagraph (B) of subsection 
        (b)(3) to read as follows:
                    ``(B) commences before October 1, 2007.''; 
                and
            (3) by adding at the end the following new 
        subsection:
    ``(e) Termination of Authority.--The authority to conduct a 
demonstration program under this section shall terminate on 
September 30, 2012.''.

SEC. 814. PAST PERFORMANCE GIVEN SIGNIFICANT WEIGHT IN RENEWAL OF 
                    PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE 
                    AGREEMENTS.

    Section 2413 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d) In conducting a competition for the award of a 
cooperative agreement under subsection (a), and in determining 
the level of funding to provide under an agreement under 
subsection (b), the Secretary shall give significant weight to 
successful past performance of eligible entities under a 
cooperative agreement under this section.''.

SEC. 815. INCREASED MAXIMUM AMOUNT OF ASSISTANCE FOR TRIBAL 
                    ORGANIZATIONS OR ECONOMIC ENTERPRISES CARRYING OUT 
                    PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS IN TWO OR 
                    MORE SERVICE AREAS.

    Section 2414(a)(4) of title 10, United States Code, is 
amended by striking ``$300,000'' and inserting ``$600,000''.

SEC. 816. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES 
                    AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

    Section 2323(k) of title 10, United States Code, is amended 
by striking ``2003'' both places it appears and inserting 
``2006''.

SEC. 817. GRANTS OF EXCEPTIONS TO COST OR PRICING DATA CERTIFICATION 
                    REQUIREMENTS AND WAIVERS OF COST ACCOUNTING 
                    STANDARDS.

    (a) Guidance for Exceptions in Exceptional Circumstances.--
Not later than 60 days after the date of the enactment of this 
Act, the Secretary of Defense shall issue guidance on the 
circumstances under which it is appropriate to grant an 
exceptional case exception or waiver with respect to certified 
cost and pricing data and cost accounting standards.
    (b) Determination Required for Exceptional Case Exception 
or Waiver.--The guidance shall, at a minimum, include a 
limitation that a grant of an exceptional case exception or 
waiver is appropriate with respect to a contract, subcontract, 
or (in the case of submission of certified cost and pricing 
data) modification only upon a determination that--
            (1) the property or services cannot reasonably be 
        obtained under the contract, subcontract, or 
        modification, as the case may be, without the grant of 
        the exception or waiver;
            (2) the price can be determined to be fair and 
        reasonable without the submission of certified cost and 
        pricing data or the application of cost accounting 
        standards, as the case may be; and
            (3) there are demonstrated benefits to granting the 
        exception or waiver.
    (c) Applicability of New Guidance.--The guidance issued 
under subsection (a) shall apply to each exceptional case 
exception or waiver that is granted on or after the date on 
which the guidance is issued.
    (d) Annual Report on Both Commercial Item and Exceptional 
Case Exceptions and Waivers With Price or Value Greater Than 
$15,000,000.--(1) The Secretary of Defense shall transmit to 
the congressional defense committees promptly after the end of 
each fiscal year a report on commercial item exceptions, and 
exceptional case exceptions and waivers, described in paragraph 
(2) that were granted during that fiscal year.
    (2) The report for a fiscal year shall include--
            (A) with respect to any commercial item exception 
        granted in the case of a contract, subcontract, or 
        contract or subcontract modification that is expected 
        to have a price of $15,000,000 or more, an explanation 
        of the basis for the determination that the products or 
        services to be purchased are commercial items, 
        including an identification of the specific steps taken 
        to ensure price reasonableness; and
            (B) with respect to any exceptional case exception 
        or waiver granted in the case of a contract or 
        subcontract that is expected to have a value of 
        $15,000,000 or more, an explanation of the basis for 
        the determination described in subsection (b), 
        including an identification of the specific steps taken 
        to ensure that the price was fair and reasonable.
    (e) Definitions.--In this section:
            (1) The term ``exceptional case exception or 
        waiver'' means either of the following:
                    (A) An exception pursuant to section 
                2306a(b)(1)(C) of title 10, United States Code, 
                relating to submission of certified cost and 
                pricing data.
                    (B) A waiver pursuant to section 
                26(f)(5)(B) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 
                422(f)(5)(B)), relating to the applicability of 
                cost accounting standards to contracts and 
                subcontracts.
            (2) The term ``commercial item exception'' means an 
        exception pursuant to section 2306a(b)(1)(B) of title 
        10, United States Code, relating to submission of 
        certified cost and pricing data.

SEC. 818. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER OF 
                    SURVIVABILITY AND LETHALITY TESTING REQUIREMENTS.

    (a) Certification for Expedited Programs.--Paragraph (1) of 
subsection (c) of section 2366 of title 10, United States Code, 
is amended to read as follows:
    ``(1) The Secretary of Defense may waive the application of 
the survivability and lethality tests of this section to a 
covered system, munitions program, missile program, or covered 
product improvement program if the Secretary determines that 
live-fire testing of such system or program would be 
unreasonably expensive and impractical and submits a 
certification of that determination to Congress--
            ``(A) before Milestone B approval for the system or 
        program; or
            ``(B) in the case of a system or program initiated 
        at--
                    ``(i) Milestone B, as soon as is 
                practicable after the Milestone B approval; or
                    ``(ii) Milestone C, as soon as is 
                practicable after the Milestone C approval.''.
    (b) Definitions.--Subsection (e) of such section is amended 
by adding at the end the following new paragraphs:
            ``(8) The term `Milestone B approval' means a 
        decision to enter into system development and 
        demonstration pursuant to guidance prescribed by the 
        Secretary of Defense for the management of Department 
        of Defense acquisition programs.
            ``(9) The term `Milestone C approval' means a 
        decision to enter into production and deployment 
        pursuant to guidance prescribed by the Secretary of 
        Defense for the management of Department of Defense 
        acquisition programs.''.

SEC. 819. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

    (a) Assurance of Best Value for National Defense.--(1) 
Section 2410n of title 10, United States Code, is amended--
            (A) in subsection (a)--
                    (i) by amending the heading to read as 
                follows: ``Market Research.--''; and
                    (ii) by striking ``comparable in price, 
                quality, and time of delivery to products 
                available from the private sector'' and 
                inserting ``comparable to products available 
                from the private sector that best meet the 
                Department's needs in terms of price, quality, 
                and time of delivery'';
            (B) by striking subsection (b) and inserting the 
        following:
    ``(b) Competition Requirement.--If the Secretary determines 
that a Federal Prison Industries product is not comparable in 
price, quality, or time of delivery to products available from 
the private sector that best meet the Department's needs in 
terms of price, quality, and time of delivery, the Secretary 
shall use competitive procedures for the procurement of the 
product or shall make an individual purchase under a multiple 
award contract. In conducting such a compeititon or making such 
a purchase, the Secretary shall consider a timely offer from 
Federal Prison Industries.''; and
            (C) by adding at the end the following new 
        subsections:
    ``(c) Implementation by Secretary of Defense.--The 
Secretary of Defense shall ensure that--
            ``(1) the Department of Defense does not purchase a 
        Federal Prison Industries product or service unless a 
        contracting officer of the Department determines that 
        the product or service is comparable to products or 
        services available from the private sector that best 
        meet the Department's needs in terms of price, quality, 
        and time of delivery; and
            ``(2) Federal Prison Industries performs its 
        contractual obligations to the same extent as any other 
        contractor for the Department of Defense.
    ``(d) Market Research Determination Not Subject to 
Review.--A determination by a contracting officer regarding 
whether a product or service offered by Federal Prison 
Industries is comparable to products or services available from 
the private sector that best meet the Department's needs in 
terms of price, quality, and time of delivery shall not be 
subject to review pursuant to section 4124(b) of title 18.
    ``(e) Performance as a Subcontractor.--(1) A contractor or 
potential contractor of the Department of Defense may not be 
required to use Federal Prison Industries as a subcontractor or 
supplier of products or provider of services for the 
performance of a Department of Defense contract by any means, 
including means such as--
            ``(A) a contract solicitation provision requiring a 
        contractor to offer to make use of products or services 
        of Federal Prison Industries in the performance of the 
        contract;
            ``(B) a contract specification requiring the 
        contractor to use specific products or services (or 
        classes of products or services) offered by Federal 
        Prison Industries in the performance of the contract; 
        or
            ``(C) any contract modification directing the use 
        of products or services of Federal Prison Industries in 
        the performance of the contract.
    ``(2) In this subsection, the term `contractor', with 
respect to a contract, includes a subcontractor at any tier 
under the contract.
    ``(f) Protection of Classified and Sensitive Information.--
The Secretary of Defense may not enter into any contract with 
Federal Prison Industries under which an inmate worker would 
have access to--
            ``(1) any data that is classified;
            ``(2) any geographic data regarding the location 
        of--
                    ``(A) surface and subsurface infrastructure 
                providing communications or water or electrical 
                power distribution;
                    ``(B) pipelines for the distribution of 
                natural gas, bulk petroleum products, or other 
                commodities; or
                    ``(C) other utilities; or
            ``(3) any personal or financial information about 
        any individual private citizen, including information 
        relating to such person's real property however 
        described, without the prior consent of the individual.
    ``(g) Definitions.--In this section:
            ``(1) The term `competitive procedures' has the 
        meaning given such term in section 2302(2) of this 
        title.
            ``(2) The term `market research' means obtaining 
        specific information about the price, quality, and time 
        of delivery of products available in the private sector 
        through a variety of means, which may include--
                    ``(A) contacting knowledgeable individuals 
                in government and industry;
                    ``(B) interactive communication among 
                industry, acquisition personnel, and customers; 
                and
                    ``(C) interchange meetings or pre-
                solicitation conferences with potential 
                offerors.''.
    (2) Paragraph (1) and the amendments made by such paragraph 
shall take effect as of October 1, 2001.
    (b) Regulatory Implementation.--(1) Proposed revisions to 
the Department of Defense Supplement to the Federal Acquisition 
Regulation to implement this section shall be published not 
later than 90 days after the date of the enactment of this Act, 
and not less than 60 days shall be provided for public comment 
on the proposed revisions.
    (2) Final regulations shall be published not later than 180 
days after the date of the enactment of this Act and shall be 
effective on the date that is 30 days after the date of the 
publication.

SEC. 820. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY.

    (a) Use of Procurement and Advance Procurement Funds.--
Section 2306b(i) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4)(A) The Secretary of Defense may obligate funds for 
procurement of an end item under a multiyear contract for the 
purchase of property only for procurement of a complete and 
usable end item.
    ``(B) The Secretary of Defense may obligate funds 
appropriated for any fiscal year for advance procurement under 
a contract for the purchase of property only for the 
procurement of those long-lead items necessary in order to meet 
a planned delivery schedule for complete major end items that 
are programmed under the contract to be acquired with funds 
appropriated for a subsequent fiscal year (including an 
economic order quantity of such long-lead items when authorized 
by law).''.
    (b) Effective Date.--(1) Paragraph (4) of section 2306b(i) 
of title 10, United States Code, as added by subsection (a), 
shall not apply with respect to any contract awarded before the 
date of the enactment of this Act.
    (2) Nothing in this section shall be construed to authorize 
the expenditure of funds under any contract awarded before the 
date of the enactment of this Act for any purpose other than 
the purpose for which such funds have been authorized and 
appropriated.

       Subtitle C--Acquisition-Related Reports and Other Matters

SEC. 821. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES REGARDING 
                    NEGOTIATION OF INTELLECTUAL PROPERTY ARRANGEMENTS.

    (a) Availability of Training, Knowledge, and Resources.--
The Secretary of Defense shall evaluate the training, 
knowledge, and resources needed by the Department of Defense in 
order to effectively negotiate intellectual property rights 
using the principles of the Defense Federal Acquisition 
Regulation Supplement and determine whether the Department of 
Defense currently has in place the training, knowledge, and 
resources available to meet those Departmental needs.
    (b) Report.--Not later than February 1, 2003, the Secretary 
of Defense shall submit to Congress a report describing--
            (1) the results of the evaluation performed under 
        subsection (a);
            (2) to the extent the Department does not have 
        adequate training, knowledge, and resources available, 
        actions to be taken to improve training and knowledge 
        and to make resources available to meet the 
        Department's needs; and
            (3) the number of Department of Defense legal 
        personnel trained in negotiating intellectual property 
        arrangements.

SEC. 822. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS.

    Section 804(b) of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1180) is 
amended--
            (1) by striking ``and'' at the end of paragraph 
        (1);
            (2) by striking the period at the end of paragraph 
        (2) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) identify each case in which an authoritative 
        decision has been made within the Department of Defense 
        not to conduct an independent technology readiness 
        assessment for a critical technology on a major defense 
        acquisition program and explain the reasons for the 
        decision.''.

SEC. 823. EXTENSION AND AMENDMENT OF REQUIREMENT FOR ANNUAL REPORT ON 
                    DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 
Stat. 2082; 10 U.S.C. 2306a note) is amended--
            (1) by striking ``2000, 2001, and 2002,'' and 
        inserting ``2000 through 2006,'';
            (2) by inserting after ``were conducted'' the 
        following: ``by the Secretary of each military 
        department and the Director of the Defense Logistics 
        Agency''; and
            (3) by inserting after ``actions taken'' the 
        following: ``by each Secretary and the Director''.

SEC. 824. ASSESSMENT OF PURCHASES OF PRODUCTS AND SERVICES THROUGH 
                    CONTRACTS WITH OTHER FEDERAL DEPARTMENTS AND 
                    AGENCIES.

    (a) Requirement for Assessment.--The Secretary of Defense 
shall carry out an assessment of purchases by the Department of 
Defense of products and services through contracts entered into 
with other Federal departments and agencies.
    (b) Period Covered by Assessment.--The assessment required 
by subsection (a) shall cover purchases made during fiscal 
years 2000 through 2002.
    (c) Report.--Not later than February 1, 2003, the Secretary 
of Defense shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the 
results of the assessment conducted under subsection (a). The 
report shall include the following:
            (1) The total amount paid by the Department of 
        Defense as fees for the acquisition of such products 
        and services.
            (2) A determination of whether such total amount 
        paid is excessive and should be reduced.
            (3) A description of the benefits received by the 
        Department as a result of purchasing such products and 
        services through such contracts.

SEC. 825. REPEAL OF CERTAIN REQUIREMENTS AND COMPTROLLER GENERAL 
                    REVIEWS OF THE REQUIREMENTS.

    (a) Termination of Authority To Transfer Funds into Defense 
Modernization Account.--(1) Paragraph (1) of section 912(c) of 
the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 410; 10 U.S.C. 2216 note) is 
amended by striking ``September 30, 2003'' and inserting 
``September 30, 2002''.
    (2) Section 912(d) of such Act (110 Stat. 410; 10 U.S.C. 
2216 note), relating to Comptroller General reviews of the 
administration of the Defense Modernization Account, is 
repealed.
    (b) Repeal of Solutions-Based Contracting Pilot Program.--
(1) Section 11522 of title 40, United States Code, is repealed.
    (2)(A) Section 11501 of title 40, United States Code, is 
amended--
            (i) in the section heading, by striking 
        ``PROGRAMS'' and inserting ``PROGRAM'';
            (ii) in subsection (a)(1), by striking ``conduct 
        pilot programs'' and inserting ``conduct a pilot 
        program pursuant to the requirements of section 11521 
        of this title'';
            (iii) in subsection (a)(2), by striking ``each 
        pilot program'' and inserting ``the pilot program'';
            (iv) in subsection (b)--
                    (I) by striking ``Limitations.--'' and all 
                that follows through ``pilot programs 
                conducted'' and inserting the following: 
                ``Limitation on Amount.--The total amount 
                obligated for contracts entered into under the 
                pilot program conducted''; and
                    (II) by striking ``paragraph.'' and 
                inserting ``subsection.''; and
            (v) in subsection (c)(1), by striking ``a pilot'' 
        and inserting ``the pilot''.
    (B) The following provisions of chapter 115 of such title 
are each amended by striking ``a pilot'' each place it appears 
and inserting ``the pilot'':
            (i) Section 11502(a).
            (ii) Section 11502(b).
            (iii) Section 11503(a).
            (iv) Section 11504.
    (C) Section 11505 of such chapter is amended by striking 
``programs'' and inserting ``program''.
    (3)(A) The chapter heading for chapter 115 of such title is 
amended by striking ``PROGRAMS'' and inserting ``PROGRAM''.
    (B) The subchapter heading for subchapter I and for 
subchapter II of such chapter are each amended by striking 
``PROGRAMS'' and inserting ``PROGRAM''.
    (C) The item relating to subchapter I in the table of 
sections at the beginning of such chapter is amended to read as 
follows:

               ``SUBCHAPTER I--CONDUCT OF PILOT PROGRAM''.

    (D) The item relating to subchapter II in the table of 
sections at the beginning of such chapter is amended to read as 
follows:

               ``SUBCHAPTER II--SPECIFIC PILOT PROGRAM''.

    (E) The item relating to section 11501 in the table of 
sections at the beginning of such is amended by striking 
``programs'' and inserting ``program''.
    (F) The table of sections at the beginning of such chapter 
is amended by striking the item relating to section 11522.
    (G) The item relating to chapter 115 in the table of 
chapters for subtitle III of title 40, United States Code, is 
amended to read as follows:

``115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM.........11501''.

    (c) Repeal of On-Line Multiple Award Schedule Contracting 
Requirements.--(1) Section 11701 of title 40, United States 
Code, is repealed.
    (2) Sections 11702, 11703, and 11704 of such title are 
redesignated as sections 11701, 11702, and 11703, respectively.
    (3) The table of sections for chapter 117 of such title is 
amended--
            (A) by striking the item relating to section 11701; 
        and
            (B) by redesignating the items relating to sections 
        11702, 11703, and 11704 as sections 11701, 11702, and 
        11703, respectively.

SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR PURCHASE OF DINITROGEN 
                    TETROXIDE, HYDRAZINE, AND HYDRAZINE-RELATED 
                    PRODUCTS.

    (a) In General.--Chapter 141 of title 10, United States 
Code, is amended by inserting after section 2410n the following 
new section:

``Sec. 2410o. Multiyear procurement authority: purchase of dinitrogen 
                    tetroxide, hydrazine, and hydrazine-related 
                    products

    ``(a) Ten-Year Contract Period.--The Secretary of Defense 
may enter into a contract for a period of up to 10 years for 
the purchase of dinitrogen tetroxide, hydrazine, and hydrazine-
related products for the support of a United States national 
security program or a United States space program.
    ``(b) Extensions.--A contract entered into for more than 
one year under the authority of subsection (a) may be extended 
for a total of not more than 10 years pursuant to any option or 
options set forth in the contract.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following item:

``2410o. Multiyear procurement authority: purchase of dinitrogen 
          tetroxide, hydrazine, and hydrazine-related products.''.

SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR ENVIRONMENTAL SERVICES 
                    FOR MILITARY INSTALLATIONS.

    (a) Authority.--Subsection (b) of section 2306c of title 
10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(5) Environmental remediation services for--
                    ``(A) an active military installation;
                    ``(B) a military installation being closed 
                or realigned under a base closure law; or
                    ``(C) a site formerly used by the 
                Department of Defense.''.
    (b) Definitions.--Such section, as amended by section 811, 
is further amended by adding at the end the following new 
subsection:
    ``(h) Additional Definitions.--In this section:
            ``(1) The term `base closure law' has the meaning 
        given such term in section 2667(h)(2) of this title.
            ``(2) The term `military installation' has the 
        meaning given such term in section 2801(c)(2) of this 
        title.''.

SEC. 828. REPORT ON EFFECTS OF ARMY CONTRACTING AGENCY.

    (a) In general.--The Secretary of the Army shall submit a 
report on the effects of the establishment of an Army 
Contracting Agency on small business participation in Army 
procurements during the first year of operation of such an 
agency to--
            (1) the Committee on Armed Services of the House of 
        Representatives;
            (2) the Committee on Armed Services of the Senate;
            (3) the Committee on Small Business of the House of 
        Representatives; and
            (4) the Committee on Small Business and 
        Entrepreneurship of the Senate.
    (b) Content.--The report required under subsection (a) 
shall include, in detail--
            (1) the justification for the establishment of an 
        Army Contracting Agency;
            (2) the impact of the creation of an Army 
        Contracting Agency on--
                    (A) Army compliance with--
                            (i) Department of Defense Directive 
                        4205.1;
                            (ii) section 15(g) of the Small 
                        Business Act (15 U.S.C. 644(g)); and
                            (iii) section 15(k) of the Small 
                        Business Act (15 U.S.C. 644(k)); and
                    (B) small business participation in Army 
                procurement of products and services for 
                affected Army installations, including--
                            (i) the impact on small businesses 
                        located near Army installations, 
                        including--
                                    (I) the increase or 
                                decrease in the total value of 
                                Army prime contracting with 
                                local small businesses; and
                                    (II) the opportunities for 
                                small business owners to meet 
                                and interact with Army 
                                procurement personnel; and
                            (ii) any change or projected change 
                        in the use of consolidated contracts 
                        and bundled contracts; and
            (3) a description of the Army's plan to address any 
        negative impact on small business participation in Army 
        procurement, to the extent such impact is identified in 
        the report.
    (c) Time for Submission.--The report under this section 
shall be submitted 15 months after the date of the 
establishment of the Army Contracting Agency.

SEC. 829. AUTHORIZATION TO TAKE ACTIONS TO CORRECT THE INDUSTRIAL 
                    RESOURCE SHORTFALL FOR RADIATION-HARDENED 
                    ELECTRONICS.

    Notwithstanding the limitation in section 303(a)(6)(C) of 
the Defense Production Act of 1950 (50 U.S.C. App. 
2093(a)(6)(C)), action or actions may be taken under section 
303 of that Act to correct the industrial resource shortfall 
for radiation-hardened electronics, if such actions do not 
cause the aggregate outstanding amount of all such actions to 
exceed $106,000,000.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
          administration of duties relating to homeland defense and 
          combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
          States.

                           Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
          future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
          and joint opposing forces.

                        Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of Department 
          of Defense Consequence Management Program Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

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

SEC. 901. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.

    (a) Establishment of Position.--Chapter 4 of title 10, 
United States Code, is amended--
            (1) by transferring section 137 within such chapter 
        to appear after section 139 and redesignating that 
        section as section 139a; and
            (2) by inserting after section 136a the following 
        new section 137:

``Sec. 137. Under Secretary of Defense for Intelligence

    ``(a) There is an Under Secretary of Defense for 
Intelligence, appointed from civilian life by the President, by 
and with the advice and consent of the Senate.
    ``(b) Subject to the authority, direction, and control of 
the Secretary of Defense, the Under Secretary of Defense for 
Intelligence shall perform such duties and exercise such powers 
as the Secretary of Defense may prescribe in the area of 
intelligence.
    ``(c) The Under Secretary of Defense for Intelligence takes 
precedence in the Department of Defense after the Under 
Secretary of Defense for Personnel and Readiness.''.
    (b) Conforming Amendments.--(1) Section 131(b) of such 
title is amended--
            (A) by striking paragraphs (2) through (5) and 
        inserting the following:
            ``(2) The Under Secretaries of Defense, as follows:
                    ``(A) The Under Secretary of Defense for 
                Acquisition, Technology, and Logistics.
                    ``(B) The Under Secretary of Defense for 
                Policy.
                    ``(C) The Under Secretary of Defense 
                (Comptroller).
                    ``(D) The Under Secretary of Defense for 
                Personnel and Readiness.
                    ``(E) The Under Secretary of Defense for 
                Intelligence.''; and
            (B) by redesignating paragraphs (6), (7), (8), (9), 
        (10), and (11) as paragraphs (3), (4), (5), (6), (7), 
        and (8), respectively.
    (2) The table of sections at the beginning of chapter 4 of 
such title is amended--
            (A) by striking the item relating to section 137 
        and inserting the following:

``137. Under Secretary of Defense for Intelligence.'';

        and
            (B) by inserting after the item relating to section 
        139 the following new item:

``139a. Director of Defense Research and Engineering.''.

    (c) Executive Level III.--Section 5314 of title 5, United 
States Code, is amended by inserting after ``Under Secretary of 
Defense for Personnel and Readiness.'' the following:

           ``Under Secretary of Defense for Intelligence.''.

    (d) Relationship to Authorities Under National Security Act 
of 1947.--Nothing in section 137 of title 10, United States 
Code, as added by subsection (a), shall supersede or modify the 
authorities of the Secretary of Defense and the Director of 
Central Intelligence as established by the National Security 
Act of 1947 (50 U.S.C. 401 et seq.).
    (e) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the establishment of the position of Under 
Secretary of Defense for Intelligence. The report shall set 
forth the following:
            (1) The mission prescribed for that Under 
        Secretary.
            (2) The organizational structure established for 
        the office of that Under Secretary.
            (3) The relationship of that Under Secretary with 
        the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics and the Under Secretary of 
        Defense for Policy.
            (4) The relationship of that Under Secretary with 
        each of the following intelligence components of the 
        Department of Defense: the National Security Agency, 
        the Defense Intelligence Agency, the National Imagery 
        and Mapping Agency, and the National Reconnaissance 
        Office.
            (5) The mission of the position designated, as of 
        the date of the enactment of this Act, as Assistant 
        Secretary of Defense for Command, Control, 
        Communications, and Intelligence and the relationship 
        of that position to the Under Secretary of Defense for 
        Intelligence.

SEC. 902. REORGANIZATION OF OFFICE OF SECRETARY OF DEFENSE FOR 
                    ADMINISTRATION OF DUTIES RELATING TO HOMELAND 
                    DEFENSE AND COMBATING TERRORISM.

    (a) Assistant Secretary of Defense for Homeland Defense.--
Section 138(b) of title 10, United States Code, is amended by 
inserting after paragraph (2) the following new paragraph:
    ``(3) One of the Assistant Secretaries shall be the 
Assistant Secretary of Defense for Homeland Defense. He shall 
have as his principal duty the overall supervision of the 
homeland defense activities of the Department of Defense.''.
    (b) Transfer to Under Secretary of Defense for Policy of 
Responsibility for Combating Terrorism.--Section 134(b) of such 
title is amended by adding at the end the following new 
paragraph:
    ``(4) Subject to the authority, direction, and control of 
the Secretary of Defense, the Under Secretary of Defense for 
Policy shall have overall direction and supervision for policy, 
program planning and execution, and allocation and use of 
resources for the activities of the Department of Defense for 
combating terrorism.''.
    (c) Conforming Amendment.--Section 138(b) of such title is 
amended by striking paragraph (6).
    (d) Repeal of Previous Contingent Reduction in Number of 
Assistant Secretaries of Defense.--Subsections (c) and (d) of 
section 901 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1194) are 
repealed.

                      Subtitle B--Space Activities

SEC. 911. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE PROGRAMS.

    (a) In General.--The Secretary of Defense shall provide for 
oversight of acquisition for defense space programs through 
appropriate organizations of the Office of the Secretary of 
Defense.
    (b) Report on Oversight.--(1) Not later than March 15, 
2003, the Secretary of Defense shall submit to the 
congressional defense committees a detailed plan on how the 
Office of the Secretary of Defense shall provide oversight of 
acquisition for defense space programs.
    (2) The plan shall set forth the following:
            (A) The organizations in the Office of the 
        Secretary of Defense, and the Joint Staff 
        organizations, to be involved in oversight of 
        acquisition for defense space programs.
            (B) The process for the review of acquisition for 
        defense space programs by the organizations specified 
        under subparagraph (A).
            (C) The process for the provision by such 
        organizations of technical, programmatic, scheduling, 
        and budgetary oversight of acquisition for defense 
        space programs.
            (D) The process for the development of independent 
        cost estimates for acquisition for defense space 
        programs, including the organization responsible for 
        developing such cost estimates and when such cost 
        estimates shall be required.
            (E) The process by which the military departments, 
        Defense Agencies, and organizations in the Office of 
        the Secretary of Defense develop and coordinate the 
        budgets for acquisition for defense space programs.
            (F) The process for the resolution of conflicts 
        among the Department of Defense elements referred to in 
        subparagraphs (A) and (E) regarding acquisition for 
        defense space programs.
    (c) Defense Space Program Defined.--In this section, the 
term ``defense space program'' means a program of the 
Department of Defense that--
            (1) is included in the ``virtual major force 
        program'' for space activities that was established by 
        the Secretary of Defense and was to have been submitted 
        with the 2003 fiscal year budget for the Department of 
        Defense; or
            (2) after the date of the enactment of this Act, is 
        included in a virtual major force program for space 
        categories or in a major force program for space 
        activities established after such date.

SEC. 912. REPORT REGARDING ASSURED ACCESS TO SPACE FOR THE UNITED 
                    STATES.

    (a) Plan.--The Secretary of Defense shall--
            (1) evaluate all options for sustaining the space 
        launch industrial base of the United States; and
            (2) develop an integrated, long-range, and 
        adequately funded plan for assuring access to space by 
        the United States.
    (b) Report.--Not later than March 1, 2003, the Secretary of 
Defense shall submit to Congress a report on the plan developed 
under subsection (a)(2).

                          Subtitle C--Reports

SEC. 921. REPORT ON ESTABLISHMENT OF UNITED STATES NORTHERN COMMAND.

    Not later than March 1, 2003, the Secretary of Defense 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report providing an 
implementation plan for the establishment of the United States 
Northern Command, which is established effective October 1, 
2002. The report shall address the following:
            (1) The required budget for standing-up and 
        maintaining that command over the period of the future-
        years defense program.
            (2) The rationale for the selection of Peterson Air 
        Force Base, Colorado, as the headquarters of that 
        command, the criteria used in the selection of Peterson 
        Air Force Base, and the alternative locations 
        considered for that headquarters.
            (3) The required military and civilian personnel 
        levels for the headquarters of that command and a 
        specification of the combatant commands and other 
        Department of Defense sources from which such 
        headquarters personnel will be transferred, shown by 
        the number of military and civilian personnel from each 
        such command or other Department of Defense source.
            (4) The organization of the command, a 
        justification of any components of the command, and a 
        review of organizations and units permanently assigned 
        or tasked to the command.
            (5) The relationship of that command (A) to the 
        Office of Homeland Security, the Department of Homeland 
        Security, the Homeland Security Council, and any other 
        Federal coordinating entity, (B) to other Federal 
        departments and agencies, and (C) to State and local 
        law enforcement agencies.
            (6) The relationship of that command with the 
        National Guard Bureau, individual State National Guard 
        Headquarters, and State and local officials the command 
        may be called upon to provide support.
            (7) The legal implications of members of the Armed 
        Forces, including the National Guard in both Federal 
        and State status, operating on United States territory 
        pursuant to missions, operations, or activities of that 
        command.
            (8) The status of Department of Defense 
        consultations--
                    (A) with Canada regarding Canada's role in, 
                or relationship with, and any expansion of 
                mission for, the North American Air Defense 
                Command; and
                    (B) with Mexico regarding Mexico's role in, 
                or relationship with, the United States 
                Northern Command.
            (9) The status of United States consultations with 
        the North Atlantic Treaty Organization relating to the 
        position of Supreme Allied Commander, Atlantic, and the 
        new chain of command for that position.
            (10) The effect of the creation of the United 
        States Northern Command on the mission, budget, and 
        resource levels of other combatant commands, 
        particularly the United States Joint Forces Command.

SEC. 922. TIME FOR SUBMITTAL OF REPORT ON QUADRENNIAL DEFENSE REVIEW.

    Section 118(d) of title 10, United States Code, is amended 
by striking ``not later than September 30 of the year in which 
the review is conducted'' in the second sentence and inserting 
``in the year following the year in which the review is 
conducted, but not later than the date on which the President 
submits the budget for the next fiscal year to Congress under 
section 1105(a) of title 31''.

SEC. 923. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE INCLUDED IN 
                    FUTURE QUADRENNIAL DEFENSE REVIEWS.

    Section 118(d) of title 10, United States Code, is 
amended--
            (1) by redesignating paragraph (14) as paragraph 
        (15); and
            (2) by inserting after paragraph (13) the following 
        new paragraph:
            ``(14) The national defense mission of the Coast 
        Guard.''.

SEC. 924. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL TRAINING COMPLEX 
                    AND JOINT OPPOSING FORCES.

    (a) Report Required.--The commander of the United States 
Joint Forces Command shall submit to the Secretary of Defense a 
report that outlines a plan that would provide for the 
development and implementation of a joint national training 
concept together with the establishment of a joint training 
complex for supporting the implementation of that concept. Such 
a concept and complex--
            (1) may include various training sites, mobile 
        training ranges, public and private modeling and 
        simulation centers, and appropriate joint opposing 
        forces; and
            (2) shall be capable of supporting field exercises 
        and experimentation at the operational level of war 
        across a broad spectrum of adversary capabilities.
    (b) Submission of Report.--Not later than six months after 
the date of the enactment of this Act, the Secretary shall 
submit the report under subsection (a), together with any 
comments that the Secretary considers appropriate and any 
comments that the Chairman of the Joint Chiefs of Staff 
considers appropriate, to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives. The report may be included in the next annual 
report submitted under section 485 of title 10, United States 
Code, after the date of the enactment of this Act or it may be 
submitted separately.
    (c) Matters To Be Included.--The report under subsection 
(a) shall include the following:
            (1) An identification and description of the types 
        of joint training and experimentation that would be 
        conducted at such a joint national training complex, 
        together with a description of how such training and 
        experimentation would enhance accomplishment of the six 
        critical operational goals for the Department of 
        Defense specified at page 30 of the Quadrennial Defense 
        Review Report of the Secretary of Defense issued on 
        September 30, 2001.
            (2) A discussion of how establishment of such a 
        complex (including joint opposing forces) would promote 
        innovation and transformation throughout the Department 
        of Defense.
            (3) A discussion of how results from training and 
        experiments conducted at such a complex would be taken 
        into consideration in the Department of Defense plans, 
        programs, and budgeting process and by appropriate 
        decision making bodies within the Department of 
        Defense.
            (4) A methodology, framework, and options for 
        selecting sites for such a complex, including 
        consideration of current training facilities that would 
        accommodate requirements among all the Armed Forces.
            (5) Options for development as part of such a 
        complex of a joint urban warfare training center that 
        could also be used for homeland defense and consequence 
        management training for Federal, State, and local 
        training.
            (6) Cost estimates and resource requirements to 
        establish and maintain such a complex, including 
        estimates of costs and resource requirements for the 
        use of contract personnel for the performance of 
        management, operational, and logistics activities for 
        such a complex .
            (7) An explanation of the relationship between and 
        among such a complex and the Department of Defense 
        Office of Transformation, the Joint Staff, the United 
        States Joint Forces Command, the United States Northern 
        Command, and each element of the major commands within 
        the separate Armed Forces with responsibility for 
        experimentation and training.
            (8) A discussion of how implementation of a joint 
        opposing force would be established, including the 
        feasibility of using qualified contractors for the 
        function of establishing and maintaining joint opposing 
        forces and the role of foreign forces.
            (9) A timeline for the establishment of such a 
        complex and for such a complex to achieve (A) initial 
        operational capability, and (B) full operational 
        capability.

                       Subtitle D--Other Matters

SEC. 931. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE UNIVERSITY.

    (a) In General.--Chapter 155 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2612. National Defense University: acceptance of gifts

    ``(a) The Secretary of Defense may accept, hold, 
administer, and spend any gift, including a gift from an 
international organization and a foreign gift or donation (as 
defined in section 2611(f) of this title), that is made on the 
condition that it be used in connection with the operation or 
administration of the National Defense University. The 
Secretary may pay all necessary expenses in connection with the 
acceptance of a gift under this subsection.
    ``(b) There is established in the Treasury a fund to be 
known as the `National Defense University Gift Fund'. Gifts of 
money, and the proceeds of the sale of property, received under 
subsection (a) shall be deposited in the fund. The Secretary 
may disburse funds deposited under this subsection for the 
benefit or use of the National Defense University.
    ``(c) Subsection (c) of section 2601 of this title applies 
to property that is accepted under subsection (a) in the same 
manner that such subsection applies to property that is 
accepted under subsection (a) of that section.
    ``(d)(1) Upon request of the Secretary of Defense, the 
Secretary of the Treasury may--
            ``(A) retain money, securities, and the proceeds of 
        the sale of securities, in the National Defense 
        University Gift Fund; and
            ``(B) invest money and reinvest the proceeds of the 
        sale of securities in that fund in securities of the 
        United States or in securities guaranteed as to 
        principal and interest by the United States.
    ``(2) The interest and profits accruing from those 
securities shall be deposited to the credit of the fund and may 
be disbursed as provided in subsection (b).
    ``(e) In this section:
            ``(1) the term `gift' includes a devise of real 
        property or a bequest of personal property and any gift 
        of an interest in real property.
            ``(2) The term `National Defense University' 
        includes any school or other component of the National 
        Defense University specified under section 2165(b) of 
        this title.
    ``(f) The Secretary of Defense shall prescribe regulations 
to carry out this section.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2612. National Defense University: acceptance of gifts.''.

SEC. 932. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    (a) Authority To Accept Foreign Gifts and Donations.--
Section 2166 of title 10, United States Code, is amended--
            (1) by redesignating subsections (f), (g), and (h), 
        as subsections (g), (h), and (i), respectively; and
            (2) by inserting after subsection (e) the following 
        new subsection (f):
    ``(f) Authority To Accept Foreign Gifts and Donations.--(1) 
The Secretary of Defense may, on behalf of the Institute, 
accept foreign gifts or donations in order to defray the costs 
of, or enhance the operation of, the Institute.
    ``(2) Funds received by the Secretary under paragraph (1) 
shall be credited to appropriations available for the 
Department of Defense for the Institute. Funds so credited 
shall be merged with the appropriations to which credited and 
shall be available for the Institute for the same purposes and 
same period as the appropriations with which merged.
    ``(3) The Secretary of Defense shall notify Congress if the 
total amount of money accepted under paragraph (1) exceeds 
$1,000,000 in any fiscal year. Any such notice shall list each 
of the contributors of such money and the amount of each 
contribution in such fiscal year.
    ``(4) For the purposes of this subsection, a foreign gift 
or donation is a gift or donation of funds, materials 
(including research materials), property, or services 
(including lecture services and faculty services) from a 
foreign government, a foundation or other charitable 
organization in a foreign country, or an individual in a 
foreign country.''.
    (b) Content of Annual Report to Congress.--Subsection (i) 
of such section, as redesignated by subsection (a)(1), is 
amended by inserting after the first sentence the following: 
``The report shall include a copy of the latest report of the 
Board of Visitors received by the Secretary under subsection 
(e)(5), together with any comments of the Secretary on the 
Board's report.''.

SEC. 933. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF 
                    DEPARTMENT OF DEFENSE CONSEQUENCE MANAGEMENT 
                    PROGRAM INTEGRATION OFFICE.

    Section 12310(c)(3) of title 10, United States Code, is 
amended by striking ``only--'' and all that follows through 
``(B) while assigned'' and inserting ``only while assigned''.

SEC. 934. INCREASE IN NUMBER OF DEPUTY 
                    COMMANDANTS OF THE MARINE CORPS.

    Section 5045 of title 10, United States Code, is amended by 
striking ``five'' and inserting ``six''.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
          2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
          fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
          enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
          exposure of personnel to pecuniary liability for loss of 
          Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
          suspense accounts and resolution of certain check issuance 
          discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
          or combating terrorism programs of the Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
          reserve service.
Sec. 1022. Annual long-range plan for the construction of naval vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of a 
          Navy ship with a version of the 155-millimeter Advanced Gun 
          System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
          ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
          structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                      Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
          delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply buried 
          targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
          other weapons.

                           Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
          applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress be 
          accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations conducted 
          as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
          at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as Defense 
          Access Road.

              Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
          aircraft and aircraft parts for use in responding to oil 
          spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
          security requirements; continued applicability of expiring 
          Governmentwide information security requirements to the 
          Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities abroad.

                        Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
          legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained by 
          Department of Defense for identification of human remains.
Sec. 1064. Enhanced authority to obtain foreign language services during 
          periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
          societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
          and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women Airforce 
          Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
          of Defense program to commemorate 50th anniversary of the 
          Korean War.

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 2003 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
may transfer under the authority of paragraph (1) may not 
exceed $2,000,000,000.
    (b) Limitations.--The authority provided by subsection (a) 
to transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of subsection (a) 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).
    (e) Increase in Amount of Transfer Authority Authorized for 
FY02.--Section 1001 of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1201) is 
amended by striking ``$2,000,000,000'' and inserting 
``$2,500,000,000''.

SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
                    2002.

    (a) DOD Authorizations.--Amounts authorized to be 
appropriated to the Department of Defense for fiscal year 2002 
in the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107) are hereby adjusted, with respect to any 
such authorized amount, by the amount by which appropriations 
pursuant to such authorization are increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, or are 
increased by a transfer of funds, pursuant to chapter 3 or 
chapter 10 of title I of Public Law 107-206 (116 Stat. 835, 
878).
    (b) NNSA Authorizations.--Amounts authorized to be 
appropriated to the Department of Energy for fiscal year 2002 
in the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107) are hereby adjusted, with respect to any 
such authorized amount, by the amount by which appropriations 
pursuant to such authorization are increased (by a supplemental 
appropriation) or decreased (by a rescission), or both, or are 
increased by a transfer of funds, pursuant to chapter 5 of 
title I of Public Law 107-206 (116 Stat. 848).
    (c) Report on Fiscal Year 2002 Transfers.--Not later than 
January 15, 2003, the Secretary of Defense shall submit to the 
congressional defense committees a report stating, for each 
transfer during fiscal year 2002 of an amount provided for the 
Department of Defense for that fiscal year through a so-called 
``transfer account'', including the Defense Emergency Response 
Fund or any other similar account, the amount of the transfer, 
the appropriation account to which the transfer was made, and 
the specific purpose for which the transferred funds were used.

SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
                    FISCAL YEAR 2003.

    (a) Fiscal Year 2003 Limitation.--The total amount 
contributed by the Secretary of Defense in fiscal year 2003 for 
the common-funded budgets of NATO may be any amount up to, but 
not in excess of, the amount specified in subsection (b) 
(rather than the maximum amount that would otherwise be 
applicable to those contributions under the fiscal year 1998 
baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable 
under subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the 
        end of fiscal year 2002, of funds appropriated for 
        fiscal years before fiscal year 2003 for payments for 
        those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions 
        authorized to be made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be 
appropriated by titles II and III of this Act are available for 
contributions for the common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), 
        $750,000 for the Civil Budget.
            (2) Of the amount provided in section 301(1), 
        $205,623,000 for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term 
        ``common-funded budgets of NATO'' means the Military 
        Budget, the Security Investment Program, and the Civil 
        Budget of the North Atlantic Treaty Organization (and 
        any successor or additional account or program of 
        NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the 
        maximum annual amount of Department of Defense 
        contributions for common-funded budgets of NATO that is 
        set forth as the annual limitation in section 
        3(2)(C)(ii) of the resolution of the Senate giving the 
        advice and consent of the Senate to the ratification of 
        the Protocols to the North Atlantic Treaty of 1949 on 
        the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that 
        resolution), approved by the Senate on April 30, 1998.

SEC. 1004. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL MANAGEMENT 
                    ENTERPRISE ARCHITECTURE.

    (a) Requirement for Enterprise Architecture and for 
Transition Plan.--Not later than May 1, 2003, the Secretary of 
Defense shall develop--
            (1) a financial management enterprise architecture 
        for all budgetary, accounting, finance, enterprise 
        resource planning, and mixed information systems of the 
        Department of Defense; and
            (2) a transition plan for implementing that 
        financial management enterprise architecture.
    (b) Composition of Enterprise Architecture.--(1) The 
financial management enterprise architecture developed under 
subsection (a)(1) shall describe an information infrastructure 
that, at a minimum, would enable the Department of Defense to--
            (A) comply with all Federal accounting, financial 
        management, and reporting requirements;
            (B) routinely produce timely, accurate, and 
        reliable financial information for management purposes;
            (C) integrate budget, accounting, and program 
        information and systems; and
            (D) provide for the systematic measurement of 
        performance, including the ability to produce timely, 
        relevant, and reliable cost information.
    (2) That enterprise architecture shall also include 
policies, procedures, data standards, and system interface 
requirements that are to apply uniformly throughout the 
Department of Defense.
    (c) Composition of Transition Plan.--The transition plan 
developed under subsection (a)(2) shall include the following:
            (1) The acquisition strategy for the enterprise 
        architecture, including specific time-phased 
        milestones, performance metrics, and financial and 
        nonfinancial resource needs.
            (2) A listing of the mission critical or mission 
        essential operational and developmental financial and 
        nonfinancial management systems of the Department of 
        Defense, as defined by the Under Secretary of Defense 
        (Comptroller), consistent with budget justification 
        documentation, together with--
                    (A) the costs to operate and maintain each 
                of those systems during fiscal year 2002; and
                    (B) the estimated cost to operate and 
                maintain each of those systems during fiscal 
                year 2003.
            (3) A listing of the operational and developmental 
        financial management systems of the Department of 
        Defense as of the date of the enactment of this Act 
        (known as ``legacy systems'') that will not be part of 
        the objective financial and nonfinancial management 
        system, together with the schedule for terminating 
        those legacy systems that provides for reducing the use 
        of those legacy systems in phases.
    (d) Conditions for Obligation of Significant Amounts for 
Financial System Improvements.--An amount in excess of 
$1,000,000 may be obligated for a defense financial system 
improvement only if the Under Secretary of Defense 
(Comptroller) makes a determination regarding that improvement 
as follows:
            (1) Before the date of an approval specified in 
        paragraph (2), a determination that the defense 
        financial system improvement is necessary for either of 
        the following reasons:
                    (A) To achieve a critical national security 
                capability or address a critical requirement in 
                an area such as safety or security.
                    (B) To prevent a significant adverse effect 
                (in terms of a technical matter, cost, or 
                schedule) on a project that is needed to 
                achieve an essential capability, taking into 
                consideration in the determination the 
                alternative solutions for preventing the 
                adverse effect.
            (2) On and after the date of any approval by the 
        Secretary of Defense of a financial management 
        enterprise architecture and a transition plan that 
        satisfy the requirements of this section, a 
        determination that the defense financial system 
        improvement is consistent with both the enterprise 
        architecture and the transition plan.
    (e) Congressional Reports.--Not later than March 15 of each 
year from 2004 through 2007, the Secretary of Defense shall 
submit to the congressional defense committees a report on the 
progress of the Department of Defense in implementing the 
enterprise architecture and transition plan required by this 
section. Each report shall include, at a minimum--
            (1) a description of the actions taken during the 
        preceding fiscal year to implement the enterprise 
        architecture and transition plan (together with the 
        estimated costs of such actions);
            (2) an explanation of any action planned in the 
        enterprise architecture and transition plan to be taken 
        during the preceding fiscal year that was not taken 
        during that fiscal year;
            (3) a description of the actions taken and planned 
        to be taken during the current fiscal year to implement 
        the enterprise architecture and transition plan 
        (together with the estimated costs of such actions); 
        and
            (4) a description of the actions taken and planned 
        to be taken during the next fiscal year to implement 
        the enterprise architecture and transition plan 
        (together with the estimated costs of such actions).
    (f) Comptroller General Review.--Not later than 60 days 
after the approval of an enterprise architecture and transition 
plan in accordance with the requirements of subsection (a), and 
not later than 60 days after the submission of an annual report 
required by subsection (e), the Comptroller General shall 
submit to the congressional defense committees an assessment of 
the extent to which the actions taken by the Department comply 
with the requirements of this section.
    (g) Definitions.--In this section:
            (1) The term ``defense financial system 
        improvement'' means the acquisition of a new budgetary, 
        accounting, finance, enterprise resource planning, or 
        mixed information system for the Department of Defense 
        or a modification of an existing budgetary, accounting, 
        finance, enterprise resource planning, or mixed 
        information system of the Department of Defense. Such 
        term does not include routine maintenance and operation 
        of any such system.
            (2) The term ``mixed information system'' means an 
        information system that supports financial and non-
        financial functions of the Federal Government as 
        defined in Office of Management and Budget Circular A-
        127 (Financial management Systems).
    (h) Repeal.--(1) Section 2222 of title 10, United States 
Code, is repealed. The table of sections at the beginning of 
chapter 131 of such title is amended by striking the item 
relating to such section.
    (2) Section 185(d) of such title is amended by striking 
``has the meaning given that term in section 2222(c)(2) of this 
title'' and inserting ``means an automated or manual system 
from which information is derived for a financial management 
system or an accounting system''.

SEC. 1005. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF DEFENSE.

    (a) Accountable Officials Within the Department of 
Defense.--Chapter 165 of title 10, United States Code, is 
amended by inserting after section 2773 the following new 
section:

``Sec. 2773a. Departmental accountable officials

    ``(a) Designation by Secretary of Defense.--The Secretary 
of Defense may designate any civilian employee of the 
Department of Defense or member of the armed forces under the 
Secretary's jurisdiction who is described in subsection (b) as 
an employee or member who, in addition to any other potential 
accountability, may be held accountable through personal 
monetary liability for an illegal, improper, or incorrect 
payment made the Department of Defense described in subsection 
(c). Any such designation shall be in writing. Any employee or 
member who is so designated may be referred to as a 
`departmental accountable official'.
    ``(b) Covered Employees and Members.--An employee or member 
of the armed forces described in this subsection is an employee 
or member who--
            ``(1) is responsible in the performance of the 
        employee's or member's duties for providing to a 
        certifying official of the Department of Defense 
        information, data, or services that are directly relied 
        upon by the certifying official in the certification of 
        vouchers for payment; and
            ``(2) is not otherwise accountable under subtitle 
        III of title 31 or any other provision of law for 
        payments made on the basis of such vouchers.
    ``(c) Pecuniary Liability.--(1) The Secretary of Defense 
may subject a departmental accountable official to pecuniary 
liability for an illegal, improper, or incorrect payment made 
by the Department of Defense if the Secretary determines that 
such payment--
            ``(A) resulted from information, data, or services 
        that that official provided to a certifying official 
        and upon which that certifying official directly relies 
        in certifying the voucher supporting that payment; and
            ``(B) was the result of fault or negligence on the 
        part of that departmental accountable official.
    ``(2) Pecuniary liability under this subsection shall apply 
in the same manner and to the same extent as applies to an 
official accountable under subtitle III of title 31.
    ``(3) Any pecuniary liability of a departmental accountable 
official under this subsection for a loss to the United States 
resulting from an illegal, improper, or incorrect payment is 
joint and several with that of any other officer or employee of 
the United States or member of the uniformed services who is 
pecuniarily liable for such loss.
    ``(d) Certifying Official Defined.--In this section, the 
term `certifying official' means an employee who has the 
responsibilities specified in section 3528(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2773 the following new item:

``2773a. Departmental accountable officials.''.

SEC. 1006. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE FOR 
                    EXPOSURE OF PERSONNEL TO PECUNIARY LIABILITY FOR 
                    LOSS OF GOVERNMENT PROPERTY.

    (a) Extension of Army and Air Force Report-of-Survey 
Procedures to Navy and Marine Corps and all DOD Civilian 
Employees.--(1) Chapter 165 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2787. Reports of survey

    ``(a) Action on Reports of Survey.--Under regulations 
prescribed pursuant to subsection (c), any officer of the Army, 
Navy, Air Force, or Marine Corps or any civilian employee of 
the Department of Defense designated in accordance with those 
regulations may act upon reports of surveys and vouchers 
pertaining to the loss, spoilage, unserviceability, 
unsuitability, or destruction of, or damage to, property of the 
United States under the control of the Department of Defense.
    ``(b) Finality of Action.--(1) Action taken under 
subsection (a) is final except as provided in paragraph (2).
    ``(2) An action holding a person pecuniarily liable for 
loss, spoilage, destruction, or damage is not final until 
approved by a person designated to do so by the Secretary of a 
military department, commander of a combatant command, or 
Director of a Defense Agency, as the case may be, who has 
jurisdiction of the person held pecuniarily liable. The person 
designated to provide final approval shall be an officer of an 
armed force, or a civilian employee, under the jurisdiction of 
the official making the designation.
    ``(c) Regulations.--The Secretary of Defense shall 
prescribe regulations to carry out this section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2787. Reports of survey.''.

    (b) Extension to Members of Navy and Marine Corps of Pay 
Deduction Authority Pertaining to Damage or Repair of Arms and 
Equipment.--Section 1007(e) of title 37, United States Code, is 
amended by striking ``Army or the Air Force'' and inserting 
``Army, Navy, Air Force, or Marine Corps''.
    (c) Repeal of Superseded Provisions.--(1) Sections 4835 and 
9835 of title 10, United States Code, are repealed.
    (2) The tables of sections at the beginning of chapters 453 
and 953 of such title are amended by striking the items 
relating to sections 4835 and 9835, respectively.
    (d) Effective Date.--The amendments made by this section 
shall apply with respect to the loss, spoilage, 
unserviceability, unsuitability, or destruction of, or damage 
to, property of the United States under the control of the 
Department of Defense occurring on or after the effective date 
of regulations prescribed pursuant to section 2787 of title 10, 
United States Code, as added by subsection (a).

SEC. 1007. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

    (a) Purchase Card Management Improvements.--Section 2784 of 
title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``, acting 
        through the Under Secretary of Defense 
        (Comptroller),''; and
            (2) by adding at the end of subsection (b) the 
        following:
            ``(7) That periodic reviews are performed to 
        determine whether each purchase card holder has a need 
        for the purchase card.
            ``(8) That the Inspector General of the Department 
        of Defense, the Inspector General of the Army, the 
        Naval Inspector General, and the Inspector General of 
        the Air Force perform periodic audits to identify--
                    ``(A) potentially fraudulent, improper, and 
                abusive uses of purchase cards;
                    ``(B) any patterns of improper card holder 
                transactions, such as purchases of prohibited 
                items; and
                    ``(C) categories of purchases that should 
                be made by means other than purchase cards in 
                order to better aggregate purchases and obtain 
                lower prices.
            ``(9) That appropriate training is provided to each 
        purchase card holder and each official with 
        responsibility for overseeing the use of purchase cards 
        issued by the Department of Defense.
            ``(10) That the Department of Defense has specific 
        policies regarding the number of purchase cards issued 
        by various organizations and categories of 
        organizations, the credit limits authorized for various 
        categories of card holders, and categories of employees 
        eligible to be issued purchase cards, and that those 
        policies are designed to minimize the financial risk to 
        the Federal Government of the issuance of the purchase 
        cards and to ensure the integrity of purchase card 
        holders.
    ``(c) Penalties for Violations.--The regulations prescribed 
under subsection (a) shall--
            ``(1) provide for appropriate adverse personnel 
        actions or other punishment to be imposed in cases in 
        which employees of the Department of Defense violate 
        such regulations or are negligent or engage in misuse, 
        abuse, or fraud with respect to a purchase card, 
        including removal in appropriate cases; and
            ``(2) provide that a violation of such regulations 
        by a person subject to chapter 47 of this title (the 
        Uniform Code of Military Justice) is punishable as a 
        violation of section 892 of this title (article 92 of 
        the Uniform Code of Military Justice).''.
    (b) Conforming and Clerical Amendments.--(1) Section 2784 
of such title is further amended--
            (A) in the section heading, by striking ``credit'' 
        and inserting ``purchase'';
            (B) in the heading of subsection (a), by striking 
        ``Credit'' and inserting ``Purchase''; and
            (C) in subsection (a) and paragraphs (1) through 
        (6) of subsection (b), by striking ``credit'' and 
        inserting ``purchase'' each place it appears.
    (2) The table of sections at the beginning of chapter 165 
of such title is amended by striking the item relating to 
section 2784 and inserting the following:

``2784. Management of purchase cards.''.

SEC. 1008. IMPROVEMENTS IN TRAVEL CARD MANAGEMENT.

    (a) Travel Card Management Improvements.--Chapter 165 of 
title 10, United States Code, is amended by inserting after 
section 2784 the following new section:

``Sec. 2784a. Management of travel cards

    ``(a) Disbursement of Travel Allowances Directly to 
Creditors.--(1) The Secretary of Defense may require that any 
part of a travel or transportation allowance of an employee of 
the Department of Defense or a member of the armed forces be 
disbursed directly to the issuer of a Defense travel card if 
the amount is disbursed to the issuer in payment of amounts of 
expenses of official travel that are charged by the employee or 
member on the Defense travel card.
    ``(2) For the purposes of this subsection, the travel and 
transportation allowances referred to in paragraph (1) are 
amounts to which an employee of the Department of Defense is 
entitled under section 5702 of title 5 or a member of the armed 
forces is entitled under section 404 of title 37.
    ``(b) Offsets for Delinquent Travel Card Charges.--(1) The 
Secretary of Defense may require that there be deducted and 
withheld from any basic pay payable to an employee of the 
Department of Defense or a member of the armed forces any 
amount that is owed by the employee or member to a creditor by 
reason of one or more charges of expenses of official travel of 
the employee or member on a Defense travel card issued by the 
creditor if the employee or member--
            ``(A) is delinquent in the payment of such amount 
        under the terms of the contract under which the card is 
        issued; and
            ``(B) does not dispute the amount of the 
        delinquency.
    ``(2) The amount deducted and withheld from pay under 
paragraph (1) with respect to a debt owed a creditor as 
described in that paragraph shall be disbursed to the creditor 
to reduce the amount of the debt.
    ``(3) The amount of pay deducted and withheld from the pay 
owed to an employee or member with respect to a pay period 
under paragraph (1) may not exceed 15 percent of the disposable 
pay of the employee or member for that pay period, except that 
a higher amount may be deducted and withheld with the written 
consent of the employee or member.
    ``(4) The Secretary of Defense shall prescribe procedures 
for deducting and withholding amounts from pay under this 
subsection. The procedures shall be substantially equivalent to 
the procedures under section 3716 of title 31.
    ``(c) Offsets of Retired Pay.--In the case of a former 
employee of the Department of Defense or a retired member of 
the armed forces who is receiving retired pay and who owes an 
amount to a creditor by reason of one or more charges on a 
Defense travel card that were made before the retirement of the 
employee or member, the Secretary may require amounts to be 
deducted and withheld from any retired pay of the former 
employee or retired member in the same manner and subject to 
the same conditions as the Secretary deducts and withholds 
amounts from basic pay payable to an employee or member under 
subsection (b).
    ``(d) Definitions.--In this section:
            ``(1) The term `Defense travel card' means a charge 
        or credit card that--
                    ``(A) is issued to an employee of the 
                Department of Defense or a member of the armed 
                forces under a contract entered into by the 
                Department of Defense with the issuer of the 
                card; and
                    ``(B) is to be used for charging expenses 
                incurred by the employee or member in 
                connection with official travel.
            ``(2) The term `disposable pay', with respect to a 
        pay period, means the amount equal to the excess of the 
        amount of basic pay or retired pay, as the case may be, 
        payable for the pay period over the total of the 
        amounts deducted and withheld from such pay.
            ``(3) The term `retired pay' means--
                    ``(A) in the case of a former employee of 
                the Department of Defense, any retirement 
                benefit payable to that individual, out of the 
                Civil Service Retirement and Disability Fund, 
                based (in whole or in part) on service 
                performed by such individual as a civilian 
                employee of the Department of Defense; and
                    ``(B) in the case of a retired member of 
                the armed forces or member of the Fleet Reserve 
                or Fleet Marine Corps Reserve, retired or 
                retainer pay to which the member is entitled.
    ``(e) Exclusion of Coast Guard.--This section does not 
apply to the Coast Guard.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 165 of such title is amended by inserting 
after the item relating to section 2784 the following new item:

``2784a. Management of travel cards.''.

SEC. 1009. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN TREASURY 
                    SUSPENSE ACCOUNTS AND RESOLUTION OF CERTAIN CHECK 
                    ISSUANCE DISCREPANCIES.

    (a) Clearance of Certain Suspense Accounts.--(1) In the 
case of any transaction that was entered into by or on behalf 
of the Department of Defense before March 1, 2001, that is 
recorded in the Department of Treasury Budget Clearing Account 
(Suspense) designated as account F3875, the Unavailable Check 
Cancellations and Overpayments Account (Suspense) designated as 
account F3880, or an Undistributed Intergovernmental Payments 
account designated as account F3885, and for which no 
appropriation for the Department of Defense has been 
identified--
            (A) any undistributed collection credited to such 
        account in such case shall be deposited to the 
        miscellaneous receipts of the Treasury; and
            (B) subject to paragraph (2), any undistributed 
        disbursement recorded in such account in such case 
        shall be canceled.
    (2) An undistributed disbursement may not be canceled under 
paragraph (1)(B) until the Secretary of Defense has made a 
written determination that the appropriate official or 
officials of the Department of Defense have attempted without 
success to locate the documentation necessary to identify which 
appropriation should be charged with such disbursement and that 
further efforts to do so are not in the best interests of the 
United States.
    (b) Resolution of Check Issuance Discrepancies.--(1) In the 
case of any check drawn on the Treasury that was issued by or 
on behalf of the Department of Defense before October 31, 1998, 
for which the Secretary of the Treasury has reported to the 
Department of Defense a discrepancy between the amount paid and 
the amount of the check as transmitted to the Department of 
Treasury, and for which no specific appropriation for the 
Department of Defense can be identified as being associated 
with the check, the discrepancy shall be canceled, subject to 
paragraph (2).
    (2) A discrepancy may not be canceled under paragraph (1) 
until the Secretary of Defense has made a written determination 
that the appropriate official or officials of the Department of 
Defense have attempted without success to locate the 
documentation necessary to identify which appropriation should 
be charged with the amount of the check and that further 
efforts to do so are not in the best interests of the United 
States.
    (c) Consultation.--The Secretary of Defense shall consult 
the Secretary of the Treasury in the exercise of the authority 
granted by subsections (a) and (b).
    (d) Duration of Cancellation Authority Following 
Determination.--(1) A particular undistributed disbursement may 
not be canceled under paragraph (1)(B) of subsection (a) more 
than 30 days after the date of the written determination made 
by the Secretary of Defense under paragraph (2) of such 
subsection regarding that undistributed disbursement.
    (2) A particular discrepancy may not be canceled under 
paragraph (1) of subsection (b) more than 30 days after the 
date of the written determination made by the Secretary of 
Defense under paragraph (2) of such subsection regarding that 
discrepancy.
    (e) Program Termination.--No authority may be exercised 
under this section after the date that is two years after the 
date of the enactment of this Act.

SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE 
                    PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE 
                    DEPARTMENT OF DEFENSE.

    (a) Authorization.--There is hereby authorized to be 
appropriated for fiscal year 2003 for the military functions of 
the Department of Defense, in addition to amounts authorized to 
be appropriated in titles I, II, and III, the amount of 
$814,300,000, to be available, in accordance with subsection 
(b), for the following purposes:
            (1) Research, development, test, and evaluation for 
        ballistic missile defense programs of the Missile 
        Defense Agency of the Department of Defense.
            (2) Activities of the Department of Defense for 
        combating terrorism at home and abroad.
    (b) Allocation by President.--(1) The amount authorized to 
be appropriated by subsection (a) shall be allocated between 
the purposes stated in paragraphs (1) and (2) of that 
subsection in such manner as may be determined by the President 
based upon the national security interests of the United 
States. The amount authorized in subsection (a) shall not be 
available for any other purpose.
    (2) Upon an allocation of such amount by the President, the 
amount so allocated shall be transferred to the appropriate 
regular authorization account under this division in the same 
manner as provided in section 1001. Transfers under this 
paragraph shall not be counted for the purposes of section 
1001(a)(2).
    (3) Not later than 15 days after an allocation is made 
under this subsection, the Secretary of Defense shall submit to 
the congressional defense committees a report describing the 
President's allocation, the basis for the President's 
determination in making such allocation, and the Secretary's 
plan for the use by the Department of Defense of the funds made 
available pursuant to such allocation.

SEC. 1011. REDUCTION IN OVERALL AUTHORIZATION DUE TO INFLATION SAVINGS.

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

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. NUMBER OF NAVY COMBATANT SURFACE VESSELS IN ACTIVE AND 
                    RESERVE SERVICE.

    (a) Contingent Requirement for Report.--(1) If, on the date 
of the enactment of this Act, the number of combatant surface 
vessels of the Navy is less than 116, the Secretary of the Navy 
shall, not later than 90 days after such date, submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the size of the force of combatant 
surface vessels of the Navy. The report shall include a risk 
assessment for a force of combatant surface vessels in the 
number as of the date of the enactment of this Act that is 
based on the same assumptions as were applied in the QDR 2001 
combatant surface force risk assessment.
    (2) The definitions in subsection (c) of section 7296 of 
title 10, United States Code, as added by subsection (b), apply 
to this subsection.
    (b) Number of Combatant Surface Vessels.--(1) Chapter 633 
of title 10, United States Code, is amended by inserting after 
section 7295 the following new section:

``Sec. 7296. Combatant surface vessels: notice before reduction in 
                    number; preservation of surge capability

    ``(a) Notice-and-Wait Before Reductions.--(1) A reduction 
described in paragraph (2) in the number of combatant surface 
vessels may only be carried out after--
            ``(A) the Secretary of the Navy submits to the 
        Committee on Armed Services of the Senate and the 
        Committee on Armed Services of the House of 
        Representatives a written notification of the proposed 
        reduction; and
            ``(B) a period of 90 days has expired after the 
        date on which such notification is received.
    ``(2) A reduction described in this paragraph in the number 
of combatant surface vessels is a reduction--
            ``(A) from 116, or a number greater than 116, to a 
        number less than 116; or
            ``(B) from a number less than 116 to a lesser 
        number.
    ``(3) Any notification under paragraph (1)(A) shall include 
the following:
            ``(A) The schedule for the proposed reduction.
            ``(B) The number of vessels that are to comprise 
        the force of combatant surface vessels after the 
        reduction.
            ``(C) A risk assessment for a force of combatant 
        surface vessels of the number specified under 
        subparagraph (B) that is based on the same assumptions 
        as were applied in the QDR 2001 combatant surface force 
        risk assessment.
    ``(b) Preservation of Surge Capability.--Whenever the 
number of combatant surface vessels is less than 116, the 
Secretary of the Navy shall maintain on the Naval Vessel 
Register a sufficient number of combatant surface vessels to 
enable the Navy to regain a force of combatant surface vessels 
numbering not less than 116 within 120 days after the date of 
any decision by the President to increase the number of 
combatant surface vessels.
    ``(c) Definitions.--In this section:
            ``(1) The term `combatant surface vessels' means 
        cruisers, destroyers, and frigates that are in active 
        service in the Navy or in active reserve service in the 
        Navy.
            ``(2) The term `QDR 2001 combatant surface force 
        risk assessment' means the risk assessment associated 
        with a force of combatant surface vessels numbering 116 
        that is set forth in the report on the quadrennial 
        defense review submitted to Congress on September 30, 
        2001, under section 118 of this title.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 7295 
the following new item:

``7296. Combatant surface vessels: notice before reduction in number; 
          preservation of surge capability.''.

    (c) Effective Date for 90-Day Waiting Period.--The 
provisions of subparagraph (B) of subsection (a)(1) of section 
7296 of title 10, United States Code, as added by subsection 
(b)(1) of this section, shall apply only with respect to 
notifications submitted under subparagraph (A) of that 
subsection on or after January 15, 2003.

SEC. 1022. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF NAVAL 
                    VESSELS.

    (a) Annual Naval Vessel Construction Plan.--(1) Chapter 9 
of title 10, United States Code, is amended by adding at the 
end the following new section:

``Sec. 231. Budgeting for construction of naval vessels: annual plan 
                    and certification

    ``(a) Annual Naval Vessel Construction Plan and 
Certification.--The Secretary of Defense shall include with the 
defense budget materials for a fiscal year--
            ``(1) a plan for the construction of combatant and 
        support vessels for the Navy developed in accordance 
        with this section; and
            ``(2) a certification by the Secretary that both 
        the budget for that fiscal year and the future-years 
        defense program submitted to Congress in relation to 
        such budget under section 221 of this title provide for 
        funding of the construction of naval vessels at a level 
        that is sufficient for the procurement of the vessels 
        provided for in the plan under paragraph (1) on the 
        schedule provided in that plan.
    ``(b) Annual Naval Vessel Construction Plan.--(1) The 
annual naval vessel construction plan developed for a fiscal 
year for purposes of subsection (a)(1) should be designed so 
that the naval vessel force provided for under that plan is 
capable of supporting the national security strategy of the 
United States as set forth in the most recent national security 
strategy report of the President under section 108 of the 
National Security Act of 1947 (50 U.S.C. 404a), except that, if 
at the time such plan is submitted with the defense budget 
materials for that fiscal year, a national security strategy 
report required under such section 108 has not been submitted 
to Congress as required by paragraph (2) or paragraph (3), if 
applicable, of subsection (a) of such section, then such annual 
plan should be designed so that the naval vessel force provided 
for under that plan is capable of supporting the ship force 
structure recommended in the report of the most recent 
Quadrennial Defense Review.
    ``(2) Each such naval vessel construction plan shall 
include the following:
            ``(A) A detailed program for the construction of 
        combatant and support vessels for the Navy over the 
        next 30 fiscal years.
            ``(B) A description of the necessary naval vessel 
        force structure to meet the requirements of the 
        national security strategy of the United States or the 
        most recent Quadrennial Defense Review, whichever is 
        applicable under paragraph (1).
            ``(C) The estimated levels of annual funding 
        necessary to carry out the program, together with a 
        discussion of the procurement strategies on which such 
        estimated levels of annual funding are based.
    ``(c) Assessment When Vessel Construction Budget is 
Insufficient To Meet Applicable Requirements.--If the budget 
for a fiscal year provides for funding of the construction of 
naval vessels at a level that is not sufficient to sustain the 
naval vessel force structure specified in the naval vessel 
construction plan for that fiscal year under subsection (a), 
the Secretary shall include with the defense budget materials 
for that fiscal year an assessment that describes and discusses 
the risks associated with the reduced force structure of naval 
vessels that will result from funding naval vessel construction 
at such level. Such assessment shall be coordinated in advance 
with the commanders of the combatant commands.
    ``(d) Definitions.--In this section:
            ``(1) The term `budget', with respect to a fiscal 
        year, means the budget for that fiscal year that is 
        submitted to Congress by the President under section 
        1105(a) of title 31.
            ``(2) The term `defense budget materials', with 
        respect to a fiscal year, means the materials submitted 
        to Congress by the Secretary of Defense in support of 
        the budget for that fiscal year.
            ``(3) The term `Quadrennial Defense Review' means 
        the review of the defense programs and policies of the 
        United States that is carried out every four years 
        under section 118 of this title.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``231. Budgeting for construction of naval vessels: annual plan and 
          certification.''.

SEC. 1023. ASSESSMENT OF THE FEASIBILITY OF THE EXPEDITED EQUIPPING OF 
                    A NAVY SHIP WITH A VERSION OF THE 155-MILLIMETER 
                    ADVANCED GUN SYSTEM.

    (a) Feasibility Assessment Required.--(1) The Secretary of 
the Navy shall conduct an assessment of the feasibility of the 
expedited equipping of a Navy ship in active or inactive 
service with a version of the 155-millimeter Advanced Gun 
System that is being developed for the DD(X) next generation, 
multi-mission, land attack surface combatant vessel.
    (2) The assessment shall include an analysis of--
            (A) the actions required to achieve such equipping 
        and the technical and programmatic risks associated 
        with those actions;
            (B) the plan, schedule, and funding required to 
        achieve such equipping; and
            (C) the effect (if any) that such equipping might 
        have on the development program and schedule for the 
        DD(X) vessel.
    (b) Equipping on Expedited Schedule.--The schedule to be 
considered in the assessment under subsection (a) shall provide 
for equipping of a ship with a version of the 155-millimeter 
Advanced Gun System on an expedited schedule that is consistent 
with the achievement of safety of operation, but not later than 
October 1, 2006.
    (c) Report Required.--The Secretary shall submit to the 
congressional defense committees a report on the results of the 
assessment under subsection (a). The report shall be submitted 
at the same time that the President submits the budget for 
fiscal year 2004 to Congress under section 1105(a) of title 31, 
United States Code.

SEC. 1024. REPORT ON INITIATIVES TO INCREASE OPERATIONAL DAYS OF NAVY 
                    SHIPS.

    (a) Requirement for Report on Initiatives.--(1) The Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on Department of Defense initiatives 
to increase the number of operational days of Navy ships as 
described in subsection (b).
    (2) The report shall cover the ongoing Department of 
Defense initiatives as well as any potential initiatives that 
are under consideration within the Department of Defense.
    (b) Initiatives Within Limits of Existing Fleet and 
Deployment Policy.--In the report, the Under Secretary shall 
assess the feasibility and identify the projected effects of 
conducting initiatives that have the potential to increase the 
number of operational days of Navy ships available to the 
commanders-in-chief of the regional unified combatant commands 
without increasing the number of Navy ships and without 
increasing the routine lengths of deployments of Navy ships 
above six months.
    (c) Required Focus Areas.--The report shall address, at a 
minimum, the following focus areas:
            (1) Assignment of additional ships, including 
        submarines, to home ports closer to the areas of 
        operation for the ships (known as ``forward 
        homeporting'').
            (2) Assignment of ships to remain in a forward area 
        of operations, together with rotation of crews for each 
        ship so assigned.
            (3) Retention of ships for use until the end of the 
        full service life, together with investment of the 
        funds necessary to support retention to that extent.
            (4) Prepositioning of additional ships with, under 
        normal circumstances, small crews in a forward area of 
        operations.
    (d) Ship Maintenance.--The report shall include an 
assessment of how routine programmed ship maintenance would be 
accomplished for Navy ships that would remain in a forward area 
of operations.
    (e) Time for Submittal.--The report shall be submitted at 
the same time that the President submits the budget for fiscal 
year 2004 to Congress under section 1105(a) of title 31, United 
States Code.

SEC. 1025. SHIP COMBAT SYSTEM INDUSTRIAL BASE.

    (a) Review.--The Secretary of Defense shall conduct a 
review of the effect of the contract award announced on April 
29, 2002, for the lead design agent for the DD(X) ship program 
on the industrial base for ship combat system development, 
including the industrial base for each of the following: ship 
systems integration, radar, electronic warfare, and launch 
systems.
    (b) Report Required.--Not later than March 31, 2003, the 
Secretary shall submit to the congressional defense committees 
a report based on the review under subsection (a). The report 
shall include the following:
            (1) The Secretary's assessment of the effect of the 
        contract award referred to in that subsection on ship 
        combat system development and on the associated 
        industrial base.
            (2) A description of any actions that the Secretary 
        proposes to ensure future competition in the ship 
        combat system development and industrial base.

SEC. 1026. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER FORCE 
                    STRUCTURE.

    (a) Findings.--Congress makes the following findings:
            (1) The aircraft carrier has been an integral 
        component in Operation Enduring Freedom and in the 
        homeland defense mission of Operation Noble Eagle 
        beginning on September 11, 2001. The aircraft carriers 
        that have participated in Operation Enduring Freedom, 
        as of May 1, 2002, are the USS Enterprise (CVN-65), the 
        USS Carl Vinson (CVN-70), the USS Kitty Hawk (CV-63), 
        the USS Theodore Roosevelt (CVN-71), the USS John C. 
        Stennis (CVN-74), and the USS John F. Kennedy (CV-67). 
        The aircraft carriers that have participated in 
        Operation Noble Eagle, as of May 1, 2002, are the USS 
        George Washington (CVN-73), the USS John F. Kennedy 
        (CV-67), and the USS John C. Stennis (CVN-74).
            (2) Since 1945, the United States has built 172 
        bases overseas, of which only 24 are currently in use.
            (3) The aircraft carrier provides an independent 
        base of operations should no land base be available for 
        aircraft, with carrier air wings providing the United 
        States sea-based forward-deployed offensive strike 
        capability.
            (4) The aircraft carrier is an essential component 
        of the Navy.
            (5) The naval tactical aircraft modernization 
        programs are proceeding on schedule.
            (6) As established by the Navy, the United States 
        requires the service of 15 aircraft carriers to 
        completely fulfill all the naval commitments assigned 
        to the Navy without gapping carrier presence.
    (b) Sense of Congress.--It is the sense of Congress that 
the number of aircraft carriers of the Navy in active service 
should not be less than 12.
    (c) Operation Enduring Freedom and Operation Noble Eagle 
Commendation.--Congress hereby commends the military and 
civilian personnel who have participated in Operation Enduring 
Freedom and Operation Noble Eagle.

SEC. 1027. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
sell Navy Drydock No. YFD-69, located in Portland, Oregon, to 
Portland Shipyard, LLC, which is the current user of the 
drydock.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
purchaser agree to retain the drydock on Swan Island in 
Portland, Oregon, until at least September 30, 2007.
    (c) Consideration.--As consideration for the conveyance of 
the drydock under subsection (a), the purchaser shall pay to 
the Secretary an amount equal to the fair market value of the 
drydock at the time of the conveyance, as determined by the 
Secretary.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

                     Subtitle C--Strategic Matters

SEC. 1031. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS AND 
                    DELIVERY SYSTEMS.

    (a) Plan Required.--The Secretary of Defense and the 
Secretary of Energy shall jointly prepare a plan for the United 
States strategic force structure for nuclear weapons and 
nuclear weapons delivery systems for the period of fiscal years 
from 2003 through 2012. The plan shall--
            (1) define the range of missions assigned to 
        strategic nuclear forces in the national defense 
        strategy consistent with--
                    (A) the Quadrennial Defense Review dated 
                September 30, 2001, under section 118 of title 
                10, United States Code;
                    (B) the Nuclear Posture Review dated 
                December 2001 under section 1041 of the Floyd 
                D. Spence National Defense Authorization Act 
                for Fiscal Year 2001 (as enacted into law by 
                Public Law 106-398; 114 Stat. 1654A-262); and
                    (C) other relevant planning documents;
            (2) delineate a baseline strategic force structure 
        for such weapons and systems over such period 
        consistent with such Nuclear Posture Review;
            (3) define sufficient force structure, force 
        modernization and life extension plans, infrastructure, 
        and other elements of the defense program of the United 
        States associated with such weapons and systems that 
        would be required to execute successfully the full 
        range of missions defined under paragraph (1);
            (4) identify the budget plan that would be required 
        to provide sufficient resources to execute successfully 
        the full range of missions using such force structure 
        called for in that national defense strategy; and
            (5)(A) evaluate options for achieving, prior to 
        fiscal year 2012, a posture under which the United 
        States maintains a number of operationally deployed 
        nuclear warheads at a level of from 1,700 to 2,200 such 
        warheads, as outlined in the Nuclear Posture Review 
        referred to in paragraph (1)(B); and
            (B) contain an assessment of the advantages and 
        disadvantages of options for achieving such posture as 
        early as 2007, including effects on cost, the 
        dismantlement workforce, and any other affected matter.
    (b) Report.--Not later than March 1, 2003, the Secretary of 
Defense and the Secretary of Energy shall submit a report on 
the plan to the congressional defense committees.

SEC. 1032. ANNUAL REPORT ON WEAPONS TO DEFEAT HARDENED AND DEEPLY 
                    BURIED TARGETS.

    (a) Annual Report.--Not later than April 1 of each year, 
the Secretary of Defense, the Secretary of Energy, and the 
Director of Central Intelligence shall jointly submit to the 
congressional defense committees, the Select Committee on 
Intelligence of the Senate, and the Permanent Select Committee 
on Intelligence of the House of Representatives a report on the 
research and development, procurement, and other activities 
undertaken during the preceding fiscal year by the Department 
of Defense, the Department of Energy, and the intelligence 
community to develop weapons to defeat hardened and deeply 
buried targets.
    (b) Report Elements.--The report for a fiscal year under 
subsection (a) shall--
            (1) include a discussion of the integration and 
        interoperability of the activities referred to in that 
        subsection that were undertaken during that fiscal 
        year, including a discussion of the relevance of such 
        activities to applicable recommendations by the 
        Chairman of the Joint Chiefs of Staff, assisted under 
        section 181(b) of title 10, United States Code, by the 
        Joint Requirements Oversight Council; and
            (2) set forth separately a description of the 
        activities referred to in that subsection, if any, that 
        were undertaken during such fiscal year by each element 
        of--
                    (A) the Department of Defense;
                    (B) the Department of Energy; and
                    (C) the intelligence community.
    (c) Definition.--In this section, the term ``intelligence 
community'' has the meaning given such term in section 3(4) of 
the National Security Act of 1947 (50 U.S.C. 401a(4)).
    (d) Termination.--No report is required under this section 
after the submission of the report that is due on April 1, 
2007.

SEC. 1033. REPORT ON EFFECTS OF NUCLEAR EARTH-PENETRATOR WEAPON AND 
                    OTHER WEAPONS.

    (a) National Academy of Sciences Study.--The Secretary of 
Defense shall request the National Academy of Sciences to 
conduct a study and prepare a report on the following:
            (1) The anticipated short-term effects and long-
        term effects of the use by the United States of a 
        nuclear earth-penetrator weapon on the target area, 
        including the effects on civilian populations in 
        proximity to the target area at the time of or after 
        such use and the effects on United States military 
        personnel who after such use carry out operations or 
        battle damage assessments in the target area.
            (2) The anticipated short-term and long-term 
        effects on civilian population in proximity to a target 
        area--
                    (A) if a non-penetrating nuclear weapon is 
                used to attack a hard or deeply-buried target; 
                and
                    (B) if a conventional high-explosive weapon 
                is used to attack an adversary's facilities for 
                storage or production of weapons of mass 
                destruction and, as a result of such attack, 
                radioactive, nuclear, biological, or chemical 
                weapons materials, agents, or other 
                contaminants are released or spread into 
                populated areas.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to Congress 
the report under subsection (a), together with any comments the 
Secretary may consider appropriate on the report. The report 
shall be submitted in unclassified form to the maximum extent 
possible, with a classified annex if needed.

                          Subtitle D--Reports

SEC. 1041. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS 
                    APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Provisions of Title 10, United States Code.--Title 10, 
United States Code, is amended as follows:
            (1)(A) Section 183 is repealed.
            (B) The table of sections at the beginning of 
        chapter 7 is amended by striking the item relating to 
        section 183.
            (2)(A) Section 230 is repealed.
            (B) The table of sections at the beginning of 
        chapter 9 is amended by striking the items relating to 
        section 230.
            (3) Section 526 is amended by striking subsection 
        (c).
            (4) Section 721(d) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' before ``If an 
                officer''.
            (5) Section 1095(g) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after ``(g)''.
            (6) Section 1798 is amended by striking subsection 
        (d).
            (7) Section 1799 is amended by striking subsection 
        (d).
            (8) Section 2220 is amended--
                    (A) by striking subsections (b) and (c);
                    (B) by striking ``(1)'' after 
                ``Establishment of Goals.--''; and
                    (C) by striking ``(2) The'' and inserting 
                ``(b) Evaluation of Cost Goals.--The''.
            (9) Section 2350a(g) is amended by striking 
        paragraph (4).
            (10) Section 2350f is amended by striking 
        subsection (c).
            (11) Section 2350k is amended by striking 
        subsection (d).
            (12) Section 2367(d) is amended by striking 
        ``Effort.--(1) In the'' and all that follows through 
        ``(2) After the close of'' and inserting ``Effort.--
        After the close of''.
            (13) Section 2391 is amended by striking subsection 
        (c).
            (14) Section 2486(b)(12) is amended by striking ``, 
        except that'' and all that follows and inserting the 
        following: ``, except that the Secretary shall notify 
        Congress of any addition of, or change in, a 
        merchandise category under this paragraph.''.
            (15) Section 2492 is amended by striking subsection 
        (c) and inserting the following:
    ``(c) Notification of Conditions Necessitating 
Restrictions.--The Secretary of Defense shall notify Congress 
of any change proposed or made to any of the host nation laws 
or any of the treaty obligations of the United States, and any 
changed conditions within host nations, if the change would 
necessitate the use of quantity or other restrictions on 
purchases in commissary and exchange stores located outside the 
United States.''.
            (16) Section 2537(a) is amended by striking 
        ``$100,000'' and inserting ``$10,000,000''.
            (17) Section 2611 is amended by striking subsection 
        (e).
            (18) Section 2667(d) is amended by striking 
        paragraph (3).
            (19) Section 4416 is amended by striking subsection 
        (f).
            (20) Section 5721(f) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(1)'' after the 
                subsection heading.
    (b) National Defense Authorization Act for Fiscal Year 
1995.--Section 553(b) of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2772; 10 
U.S.C. 4331 note) is amended by striking the last sentence.
    (c) Ballistic Missile Defense Act of 1995.--Section 234 of 
the Ballistic Missile Defense Act of 1995 (subtitle C of title 
II of Public Law 104-106; 10 U.S.C. 2431 note) is amended by 
striking subsection (f).

SEC. 1042. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS TO CONGRESS 
                    BE ACCOMPANIED BY ELECTRONIC VERSION.

    Section 480(a) of title 10, United States Code, is amended 
by striking ``shall, upon request'' and all that follows 
through ``(or each'' and inserting ``shall provide to Congress 
(or''.

SEC. 1043. ANNUAL REPORT ON THE CONDUCT OF MILITARY OPERATIONS 
                    CONDUCTED AS PART OF OPERATION ENDURING FREEDOM.

    (a) Reports Required.--(1) The Secretary of Defense shall 
submit to the congressional committees specified in subsection 
(d) an annual report on the conduct of military operations 
conducted as part of Operation Enduring Freedom. The first 
report, which shall include a definition of the military 
operations carried out as part of Operation Enduring Freedom, 
shall be submitted not later than June 15, 2003. Subsequent 
reports shall be submitted not later than June 15 each year, 
and the final report shall be submitted not later than 180 days 
after the date (as determined by the Secretary of Defense) of 
the cessation of hostilities undertaken as part of Operation 
Enduring Freedom.
    (2) Each report under this section shall be prepared in 
consultation with the Chairman of the Joint Chiefs of Staff, 
the commander of the United States Central Command, the 
Director of Central Intelligence, and such other officials as 
the Secretary considers appropriate.
    (3) Each such report shall be submitted in both a 
classified form and an unclassified form, as necessary.
    (b) Special Matters To Be Included.--Each report under this 
section shall include the following:
            (1) A discussion of the command, control, 
        coordination, and support relationship between United 
        States special operations forces and Central 
        Intelligence Agency elements participating in Operation 
        Enduring Freedom and any lessons learned from the joint 
        conduct of operations by those forces and elements.
            (2) Recommendations to improve operational 
        readiness and effectiveness of these forces and 
        elements.
    (c) Other Matters To Be Included.--Each report under this 
section shall include a discussion, with a particular emphasis 
on accomplishments and shortcomings, of the following matters 
with respect to Operation Enduring Freedom:
            (1) The political and military objectives of the 
        United States.
            (2) The military strategy of the United States to 
        achieve those political and military objectives.
            (3) The concept of operations, including any new 
        operational concepts, for the operation.
            (4) The benefits and disadvantages of operating 
        with local opposition forces.
            (5) The benefits and disadvantages of operating in 
        a coalition with the military forces of allied and 
        friendly nations.
            (6) The cooperation of nations in the region for 
        overflight, basing, command and control, and logistic 
        and other support.
            (7) The conduct of relief operations both during 
        and after the period of hostilities.
            (8) The conduct of close air support (CAS), 
        particularly with respect to the timeliness, 
        efficiency, and effectiveness of such support.
            (9) The use of unmanned aerial vehicles for 
        intelligence, surveillance, reconnaissance, and combat 
        support to operational forces.
            (10) The use and performance of United States and 
        coalition military equipment, weapon systems, and 
        munitions.
            (11) The effectiveness of reserve component forces, 
        including their use and performance in the theater of 
        operations.
            (12) The importance and effectiveness of the 
        International Security Assistance Force.
            (13) The importance and effectiveness of United 
        States civil affairs forces.
            (14) The anticipated duration of the United States 
        military presence in Afghanistan.
            (15) The most critical lessons learned that could 
        lead to long-term doctrinal, organizational, and 
        technological changes.
    (d) Congressional Committees.--The committees referred to 
in subsection (a)(1) are the following:
            (1) The Committee on Armed Services and the Select 
        Committee on Intelligence of the Senate.
            (2) The Committee on Armed Services and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.

SEC. 1044. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE FIGHTING STAFFS 
                    AT MILITARY INSTALLATIONS.

    Not later than May 31, 2003, the Secretary of Defense shall 
submit to Congress a report on the actions being undertaken to 
ensure that the fire fighting staffs at military installations 
are adequate under applicable Department of Defense 
regulations.

SEC. 1045. REPORT ON DESIGNATION OF CERTAIN LOUISIANA HIGHWAY AS 
                    DEFENSE ACCESS ROAD.

    Not later than March 1, 2003, the Secretary of the Army 
shall submit to the congressional defense committees a report 
containing the results of a study on the advisability of 
designating Louisiana Highway 28 between Alexandria, Louisiana, 
and Leesville, Louisiana, a road providing access to the Joint 
Readiness Training Center, Louisiana, and to Fort Polk, 
Louisiana, as a defense access road for purposes of section 210 
of title 23, United States Code.

             Subtitle E--Extension of Expiring Authorities

SEC. 1051. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE TO SELL 
                    AIRCRAFT AND AIRCRAFT PARTS FOR USE IN RESPONDING 
                    TO OIL SPILLS.

    (a) Four-Year Extension.--Section 740 of the Wendell H. 
Ford Aviation Investment and Reform Act for the 21st Century 
(Public Law 106-181; 114 Stat. 173; 10 U.S.C. 2576 note) is 
amended--
            (1) in subsection (a)(1), by striking ``, during 
        the period beginning on the date of the enactment of 
        this Act and ending September 30, 2002,''; and
            (2) by adding at the end the following new 
        subsection:
    ``(i) Expiration of Authority.--The authority to sell 
aircraft and aircraft parts under this section expires on 
September 30, 2006.''.
    (b) Additional Report.--Subsection (f) of such section is 
amended by striking ``March 31, 2002'' and inserting ``March 
31, 2006''.

SEC. 1052. SIX-MONTH EXTENSION OF EXPIRING GOVERNMENTWIDE INFORMATION 
                    SECURITY REQUIREMENTS; CONTINUED APPLICABILITY OF 
                    EXPIRING GOVERNMENTWIDE INFORMATION SECURITY 
                    REQUIREMENTS TO THE DEPARTMENT OF DEFENSE.

    (a) Six-Month Extension of Expiring Governmentwide 
Requirements.--Section 3536 of title 44, United States Code, is 
amended to read as follows:

``Sec. 3536. Expiration

    ``This subchapter shall not be in effect after May 31, 
2003.''.
    (b) Continued Applicability of Expiring Governmentwide 
Requirements to Department of Defense.--(1) Chapter 131 of 
title 10, United States Code, is amended by inserting after 
section 2224 the following new section:

``Sec. 2224a. Information security: continued applicability of expiring 
                    Governmentwide requirements to the Department of 
                    Defense

    ``(a) In General.--The provisions of subchapter II of 
chapter 35 of title 44 shall continue to apply through 
September 30, 2004, with respect to the Department of Defense, 
notwithstanding the expiration of authority under section 3536 
of such title.
    ``(b) Responsibilities.--In administering the provisions of 
subchapter II of chapter 35 of title 44 with respect to the 
Department of Defense after the expiration of authority under 
section 3536 of such title, the Secretary of Defense shall 
perform the duties set forth in that subchapter for the 
Director of the Office of Management and Budget.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2224 
the following new item:

``2224a. Information security: continued applicability of expiring 
          Governmentwide requirements to the Department of Defense.''.

SEC. 1053. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE 
                    TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
                    INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

    Section 431(a) of title 10, United States Code, is amended 
by striking ``December 31, 2002'' and inserting ``December 31, 
2004''.

                       Subtitle F--Other Matters

SEC. 1061. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE AUTHORIZATION 
                    LEGISLATIVE PROPOSAL.

    (a) In General.--Chapter 2 of title 10, United States Code, 
is amended by inserting after section 113 the following new 
section:

``Sec. 113a. Transmission of annual defense authorization request

    ``(a) Time for Transmittal.--The Secretary of Defense shall 
transmit to Congress the annual defense authorization request 
for a fiscal year during the first 30 days after the date on 
which the President transmits to Congress the budget for that 
fiscal year pursuant to section 1105 of title 31.
    ``(b) Defense Authorization Request Defined.--In this 
section, the term `defense authorization request', with respect 
to a fiscal year, means a legislative proposal submitted to 
Congress for the enactment of the following:
            ``(1) Authorizations of appropriations for that 
        fiscal year, as required by section 114 of this title.
            ``(2) Personnel strengths for that fiscal year, as 
        required by section 115 of this title.
            ``(3) Any other matter that is proposed by the 
        Secretary of Defense to be enacted as part of the 
        annual defense authorization bill for that fiscal 
        year.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 113 the following new item:

``113a. Transmission of annual defense authorization request.''.

SEC. 1062. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) Section 153 is amended--
                    (A) by inserting ``(a) Planning; Advice; 
                Policy Formulation.--'' at the beginning of the 
                text; and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (2) Section 624(d)(1) is amended by striking 
        ``subsection (d)(2)'' in the second sentence and 
        inserting ``paragraph (2)''.
            (3) Section 661(b)(2) is amended by striking ``the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2002'' and inserting 
        ``December 28, 2001,''.
            (4) Section 662(a)(2) is amended--
                    (A) in subparagraph (A), by striking 
                ``during the three-year period beginning on the 
                date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2002,'' and 
                inserting ``during the period beginning on 
                December 28, 2001, and ending on December 27, 
                2004,''; and
                    (B) in subparagraph (B), by striking 
                ``after the end of the period specified in 
                subparagraph (A)'' and inserting ``after 
                December 27, 2004''.
            (5) Section 663(e)(2) is amended by striking 
        ``Armed Forces Staff College'' and inserting ``Joint 
        Forces Staff College''.
            (6) Section 1451(c)(3) is amended by striking 
        ``section'' before ``clause''.
            (7) Section 2162(b)(2) is amended by striking ``the 
        date of the enactment of this paragraph'' and inserting 
        ``December 28, 2001,''.
            (8) Section 2330(c) is amended by inserting a comma 
        after ``a task order''.
            (9) Section 2399(a)(2) is amended--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``means--'' and inserting 
                ``means a conventional weapons system that--''; 
                and
                    (B) in subparagraph (A), by striking ``a 
                conventional weapons system that''.
            (10)(A) Section 2410h is transferred to the end of 
        subchapter IV of chapter 87 and redesignated as section 
        1747.
            (B) The item relating to that section in the table 
        of sections at the beginning of chapter 141 is 
        transferred to the end of the table of sections at the 
        beginning of subchapter IV of chapter 87 and amended to 
        reflect the redesignation made by subparagraph (A).
            (11) Section 2676(a) is amended by inserting an 
        open parenthesis before ``41 U.S.C.''.
            (12) Section 2677 is amended by striking subsection 
        (c).
            (13) Section 2680(e) is amended by striking ``the'' 
        after ``the Committee on'' the first place it appears.
            (14) Section 2815(b) is amended by striking ``for 
        fiscal year 2003 and each fiscal year thereafter'' and 
        inserting ``for any fiscal year''.
            (15) Section 2828(b)(2) is amended by inserting 
        ``time'' after ``from time to''.
            (16) Sections 3755, 6257, and 8755, as added by 
        section 8143(c) of Public Law 107-248 (116 Stat. 1570), 
        are amended by striking ``the date of the enactment of 
        this section'' and inserting ``October 23, 2002''.
    (b) Title 14, United States Code.--Title 14, United States 
Code, is amended as follows:
            (1) Section 505, as added by section 8143(c)(4) of 
        Public Law 107-248 (116 Stat. 1571), is amended by 
        striking ``the date of the enactment of this section'' 
        and inserting ``October 23, 2002''.
            (2) Section 516(c) is amended by striking ``his 
        section'' and inserting ``this section''.
    (c) Title 37, United States Code.--Title 37, United States 
Code, is amended as follows:
            (1) Section 302j(a) is amended by striking 
        ``subsection (c)'' and inserting ``subsection (d)''.
            (2) Section 324(b) is amended by striking ``(1)'' 
        before ``The Secretary''.
    (d) Public Law 107-248.--Section 8118(a) of Public Law 107-
248 (116 Stat. 1565) is amended by striking ``subsection (i)'' 
and inserting ``subsection (j)''.
    (e) Public Law 107-217.--Effective as if included therein 
as originally enacted, section 3(b) of Public Law 107-217 is 
amended--
            (1) in paragraph (8) (116 Stat. 1295), by inserting 
        ``the second place it appears'' before the semicolon; 
        and
            (2) in paragraph (34) (116 Stat. 1298), by striking 
        ``section 7545(a)'' and inserting ``section 7545(c)''.
    (f) Public Law 107-107.--Effective as of December 28, 2001, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) is 
amended as follows:
            (1) Section 602(a)(2) (115 Stat. 1132) is amended 
        by striking ``an'' in the first quoted matter.
            (2) Section 1212(a)(5) (115 Stat. 1249) is amended 
        by inserting ``in'' after the paragraph designation.
            (3) Section 1410(a)(3)(C) (115 Stat. 1266) by 
        inserting ``both places it appears'' before ``and 
        inserting''.
            (4) Section 3007(d)(1)(C) (115 Stat. 1352) is 
        amended by striking ``2905(b)(7)(B)(iv)'' and inserting 
        ``2905(b)(7)(C)(iv)''.
    (g) Public Law 106-398.--Effective as of October 30, 2000, 
and as if included therein as enacted, the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398) is amended as follows:
            (1) Section 577(b)(2) (114 Stat. 1654A-140) is 
        amended by striking ``Federal'' in the quoted matter 
        and inserting ``Department of Defense''.
            (2) Section 612(c)(4)(B) (114 Stat. 1654A-150) is 
        amended by striking the comma at the end of the first 
        quoted matter.
    (h) Public Law 106-246.--Section 136 of Public Law 106-246 
(114 Stat. 520) is amended--
            (1) in subsection (d)(7), by striking subparagraphs 
        (B) and (C) and inserting the following new 
        subparagraphs:
            ``(B) Section 1302 of title 40, United States Code.
            ``(C) Subtitle I of title 40, United States 
        Code.''; and
            (2) in subsection (e)(3), by striking subparagraph 
        (B) and inserting the following new subparagraph:
            ``(B) Subtitle I of title 40, United States 
        Code.''.
    (i) Public Law 106-181.--Section 740(a)(1) of the Wendell 
H. Ford Aviation Investment and Reform Act for the 21st Century 
(10 U.S.C. 2576 note) is amended by striking ``section 202 of 
the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 483)'' and inserting ``subchapter II of chapter 5 of 
title 40, United States Code,''.
    (j) Public Law 106-65.--The National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65) is amended as 
follows:
            (1) Section 573(b) (10 U.S.C. 513 note) is amended 
        by inserting a period at the end of paragraph (2).
            (2) Section 1305(6) (22 U.S.C. 5952 note) is 
        amended by striking the first period after 
        ``facility''.
    (k) Public Law 104-307.--Section 2(a)(1) of the Wildfire 
Suppression Aircraft Transfer Act of 1996 (10 U.S.C. 2576 note) 
is amended by striking ``section 202 of the Federal Property 
and Administrative Services Act of 1949 (40 U.S.C. 483)'' and 
inserting ``subchapter II of chapter 5 of title 40, United 
States Code,''.
    (l) Public Law 103-337.--Section 2814 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337) is amended by striking ``the Public Buildings Act of 1959 
(40 U.S.C. 601 et seq.) and the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.)'' 
and inserting ``chapter 5 or 33 of title 40, United States 
Code''.
    (m) Public Law 101-510.--The National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510) is amended as 
follows:
            (1) Section 2905(b)(1) (10 U.S.C. 2687 note) is 
        amended--
                    (A) in subparagraph (A), by striking 
                ``section 202 of the Federal Property and 
                Administrative Services Act of 1949 (40 U.S.C. 
                483)'' and inserting ``subchapter II of chapter 
                5 of title 40, United States Code''; and
                    (B) in subparagraph (B), by striking 
                ``section 203 of that Act (40 U.S.C. 484)'' and 
                inserting ``subchapter III of chapter 5 of 
                title 40, United States Code''.
            (2) Section 2905(b)(4)(F) is amended by striking 
        ``sections 202 and 203 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 483, 
        484)'' and inserting ``subchapters II and III of 
        chapter 5 of title 40, United States Code,''.
            (3) Section 2905(b)(7) is amended by striking 
        ``section 203(k) of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 
        484(k))'' in subparagraphs (K)(v), (L)(iv)(V), and (P) 
        and inserting ``section 550 of title 40, United States 
        Code,''.
            (4) Section 2926(d)(2) is amended by striking 
        ``title IX of the Federal Property and Administrative 
        Services Act (Public Law 92-582; 40 U.S.C. 541 et seq., 
        as amended)'' and inserting ``chapter 11 of title 40, 
        United States Code''.
    (n) Public Law 100-526.--The Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 
100-526) is amended as follows:
            (1) Section 204(b)(1) (10 U.S.C. 2687 note) is 
        amended--
                    (A) in subparagraph (A), by striking 
                ``section 202 of the Federal Property and 
                Administrative Services Act of 1949 (40 U.S.C. 
                483)'' and inserting ``subchapter II of chapter 
                5 of title 40, United States Code''; and
                    (B) in subparagraph (B), by striking 
                ``section 203 of that Act (40 U.S.C. 484)'' and 
                inserting ``subchapter III of chapter 5 of 
                title 40, United States Code''.
            (2) Section 204(b)(4)(F) is amended by striking 
        ``sections 202 and 203 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 483, 
        484)'' and inserting ``subchapters II and III of 
        chapter 5 of title 40, United States Code,''.
    (o) Other Laws.--(1) Section 502(a) of the National 
Emergencies Act (50 U.S.C. 1651(a)) is amended by striking 
paragraph (2) and redesignating paragraphs (3) through (7) as 
paragraphs (1) through (5), respectively.
    (2) Section 10(b)(8) of the Military Selective Service Act 
(50 U.S.C. App. 460(b)(8)) is amended by striking ``Public Law 
26'' and all that follows through the period at the end of the 
paragraph and inserting ``the Act of March 31, 1947 (50 U.S.C. 
App. 321 et seq.).''.
    (3) The Defense Production Act of 1950 is amended in both 
section 305(i) and section 306(j) (50 U.S.C. App. 2095(i), 
2096(j))--
            (A) in the first sentence, by striking ``the Act 
        entitled'' and all that follows through the period at 
        the end of the sentence and inserting ``subchapter IV 
        of chapter 31 of title 40, United States Code.''; and
            (B) in the last sentence, by striking ``and section 
        276(c) of title 40''.

SEC. 1063. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES MAINTAINED 
                    BY DEPARTMENT OF DEFENSE FOR IDENTIFICATION OF 
                    HUMAN REMAINS.

    (a) In General.--Chapter 80 of title 10, United States 
Code, is amended by inserting after section 1565 the following 
new section:

``Sec. 1565a. DNA samples maintained for identification of human 
                    remains: use for law enforcement purposes

    ``(a) Compliance with Court Order.--(1) Subject to 
paragraph (2), if a valid order of a Federal court (or military 
judge) so requires, an element of the Department of Defense 
that maintains a repository of DNA samples for the purpose of 
identification of human remains shall make available, for the 
purpose specified in subsection (b), such DNA samples on such 
terms and conditions as such court (or military judge) directs.
    ``(2) A DNA sample with respect to an individual shall be 
provided under paragraph (1) in a manner that does not 
compromise the ability of the Department of Defense to maintain 
a sample with respect to that individual for the purpose of 
identification of human remains.
    ``(b) Covered Purpose.--The purpose referred to in 
subsection (a) is the purpose of an investigation or 
prosecution of a felony, or any sexual offense, for which no 
other source of DNA information is reasonably available.
    ``(c) Definition.--In this section, the term `DNA sample' 
has the meaning given such term in section 1565(c) of this 
title.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1565 the following new item:

``1565a. DNA samples maintained for identification of human remains: use 
          for law enforcement purposes.''.

SEC. 1064. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE SERVICES 
                    DURING PERIODS OF EMERGENCY.

    (a) National Foreign Language Skills Registry.--(1) Chapter 
81 of title 10, United States Code, is amended by inserting 
after section 1596a the following new section:

``Sec. 1596b. Foreign language proficiency: National Foreign Language 
                    Skills Registry

    ``(a) Establishment.--(1) The Secretary of Defense may 
establish and maintain a registry of persons who--
            ``(A) have proficiency in one or more critical 
        foreign languages;
            ``(B) are willing to provide linguistic services to 
        the United States in the interests of national security 
        during war or a national emergency; and
            ``(C) meet the eligibility requirements of 
        subsection (b).
    ``(2) The registry shall be known as the `National Foreign 
Language Skills Registry' (in this section referred to as the 
`Registry').
    ``(b) Eligible Persons.--To be eligible for listing on the 
Registry, a person--
            ``(1) must be--
                    ``(A) a national of the United States (as 
                defined in section 101(a)(22) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(22))); or
                    ``(B) an alien lawfully admitted for 
                permanent residence (as defined in section 
                101(a)(20) of the Immigration and Nationality 
                Act (8 U.S.C. 1101(a)(20)));
            ``(2) shall express willingness, in a form and 
        manner prescribed by the Secretary--
                    ``(A) to provide linguistic services for a 
                foreign language as described in subsection 
                (a); and
                    ``(B) to be listed on the Registry; and
            ``(3) shall meet such language proficiency and 
        other selection criteria as may be prescribed by the 
        Secretary.
    ``(c) Registered Information.--The Registry shall consist 
of the following:
            ``(1) The names of eligible persons selected by the 
        Secretary for listing on the Registry.
            ``(2) Such other information on such persons as the 
        Secretary determines pertinent to the use of such 
        persons to provide linguistic services as described in 
        subsection (a).
    ``(d) Protection of Privacy.--The Secretary may withhold 
from public disclosure the information maintained in the 
Registry in accordance with section 552a of title 5.
    ``(e) Designation of Critical Foreign Languages.--The 
Secretary shall designate those languages that are critical 
foreign languages for the purposes of this section. The 
Secretary shall make such a designation for any foreign 
language for which there is a shortage of experts in 
translation or interpretation available to meet requirements of 
the Secretary or of the head of any other department or agency 
of the United States for translation or interpretation in the 
national security interests of the United States.
    ``(f) Linguistic Services Defined.--In this section, the 
term `linguistic services' means translation or interpretation 
of communication in a foreign language.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after section 1596a the following new 
item:

``1596b. Foreign language proficiency: National Foreign Language Skills 
          Registry.''.

    (b) Authority To Accept Voluntary Translation and 
Interpretation Services.--Section 1588(a) of title 10, United 
States Code, is amended by adding after paragraph (6), as added 
by section 553, the following new paragraph:
            ``(7) Voluntary translation or interpretation 
        services offered with respect to a foreign language by 
        a person (A) who is registered for such foreign 
        language on the National Foreign Language Skills 
        Registry under section 1596b of this title, or (B) who 
        otherwise is approved to provide voluntary translation 
        or interpretation services for national security 
        purposes, as determined by the Secretary of Defense.''.

SEC. 1065. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

    (a) Authority.--Chapter 3 of title 10, United States Code, 
is amended by inserting after section 127a the following new 
section:

``Sec. 127b. Assistance in combating terrorism: rewards

    ``(a) Authority.--The Secretary of Defense may pay a 
monetary amount, or provide a payment-in-kind, to a person as a 
reward for providing United States Government personnel with 
information or nonlethal assistance that is beneficial to--
            ``(1) an operation or activity of the armed forces 
        conducted outside the United States against 
        international terrorism; or
            ``(2) force protection of the armed forces.
    ``(b) Limitation.--The amount or value of a reward provided 
under this section may not exceed $200,000.
    ``(c) Delegation of Authority.--(1) The authority of the 
Secretary of Defense under subsection (a) may be delegated 
only--
            ``(A) to the Deputy Secretary of Defense and an 
        Under Secretary of Defense, without further 
        redelegation; and
            ``(B) to the commander of a combatant command, but 
        only for a reward in an amount or with a value not in 
        excess of $50,000.
    ``(2) A commander of a combatant command to whom authority 
to provide rewards under this section is delegated under 
paragraph (1) may further delegate that authority, but only for 
a reward in an amount or with a value not in excess of $2,500, 
except that such a delegation may be made to the commander's 
deputy commander without vegard to such limitation.
    ``(d) Coordination.--(1) The Secretary of Defense shall 
prescribe policies and procedures for the offering and making 
of rewards under this section and otherwise for administering 
the authority under this section. Such polices and procedures 
shall be prescribed in consultation with the Secretary of State 
and the Attorney General and shall ensure that the making of a 
reward under this section does not duplicate or interfere with 
the payment of a reward authorized by the Secretary of State or 
the Attorney General.
    ``(2) The Secretary of Defense shall consult with the 
Secretary of State regarding the making of any reward under 
this section in an amount or with a value in excess of 
$100,000.
    ``(e) Persons Not Eligible.--The following persons are not 
eligible to receive a reward under this section:
            ``(1) A citizen of the United States.
            ``(2) An officer or employee of the United States.
            ``(3) An employee of a contractor of the United 
        States.
    ``(f) Annual Report.--(1) Not later than December 1 of each 
year, the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and the House of 
Representatives a report on the administration of the rewards 
program under this section during the preceding fiscal year.
    ``(2) Each report for a fiscal year under this subsection 
shall include the following:
            ``(A) Information on the total amount expended 
        during that fiscal year to carry out the rewards 
        program under this section during that fiscal year.
            ``(B) Specification of the amount, if any, expended 
        during that fiscal year to publicize the availability 
        of rewards under this section.
            ``(C) With respect to each reward provided during 
        that fiscal year--
                    ``(i) the amount or value of the reward and 
                whether the reward was provided as a monetary 
                payment or in some other form;
                    ``(ii) the recipient of the reward; and
                    ``(iii) a description of the information or 
                assistance for which the reward was paid, 
                together with an assessment of the significance 
                and benefit of the information or assistance.
    ``(3) The Secretary may submit the report in classified 
form if the Secretary determines that it is necessary to do so.
    ``(g) Determinations by the Secretary.--A determination by 
the Secretary under this section is final and conclusive and is 
not subject to judicial review.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 127a the following new item:

``127b. Assistance in combating terrorism: rewards.''.

SEC. 1066. PROVISION OF SPACE AND SERVICES TO MILITARY WELFARE 
                    SOCIETIES.

    (a) Authority To Provide Space and Services.--Chapter 152 
of title 10, United States Code, is amended by adding at the 
end the following new section:

``Sec. 2566. Space and services: provision to military welfare 
                    societies

    ``(a) Authority To Provide Space and Services.--The 
Secretary of a military department may provide, without charge, 
space and services under the jurisdiction of that Secretary to 
a military welfare society.
    ``(b) Definitions.--In this section:
            ``(1) The term `military welfare society' means the 
        following:
                    ``(A) The Army Emergency Relief Society.
                    ``(B) The Navy-Marine Corps Relief Society.
                    ``(C) The Air Force Aid Society, Inc.
            ``(2) The term `services' includes lighting, 
        heating, cooling, electricity, office furniture, office 
        machines and equipment, telephone and other information 
        technology services (including installation of lines 
        and equipment, connectivity, and other associated 
        services), and security systems (including installation 
        and other associated expenses).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2566. Space and services: provision to military welfare societies.''.

SEC. 1067. PREVENTION AND MITIGATION OF CORROSION OF MILITARY EQUIPMENT 
                    AND INFRASTRUCTURE.

    (a) In General.--(1) Chapter 131 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2228. Military equipment and infrastructure: prevention and 
                    mitigation of corrosion

    ``(a) Designation of Responsible Official or 
Organization.--The Secretary of Defense shall designate an 
officer or employee of the Department of Defense, or a standing 
board or committee of the Department of Defense, as the senior 
official or organization responsible in the Department to the 
Secretary of Defense (after the Under Secretary of Defense for 
Acquisition, Technology, and Logistics) for the prevention and 
mitigation of corrosion of the military equipment and 
infrastructure of the Department.
    ``(b) Duties.--(1) The official or organization designated 
under subsection (a) shall oversee and coordinate efforts 
throughout the Department of Defense to prevent and mitigate 
corrosion of the military equipment and infrastructure of the 
Department. The duties under this paragraph shall include the 
duties specified in paragraphs (2) through (5).
    ``(2) The designated official or organization shall develop 
and recommend any policy guidance on the prevention and 
mitigation of corrosion to be issued by the Secretary of 
Defense.
    ``(3) The designated official or organization shall review 
the programs and funding levels proposed by the Secretary of 
each military department during the annual internal Department 
of Defense budget review process as those programs and funding 
proposals relate to programs and funding for the prevention and 
mitigation of corrosion and shall submit to the Secretary of 
Defense recommendations regarding those programs and proposed 
funding levels.
    ``(4) The designated official or organization shall provide 
oversight and coordination of the efforts within the Department 
of Defense to prevent or mitigate corrosion during--
            ``(A) the design, acquisition, and maintenance of 
        military equipment; and
            ``(B) the design, construction, and maintenance of 
        infrastructure.
    ``(5) The designated official or organization shall monitor 
acquisition practices within the Department of Defense--
            ``(A) to ensure that the use of corrosion 
        prevention technologies and the application of 
        corrosion prevention treatments are fully considered 
        during research and development in the acquisition 
        process; and
            ``(B) to ensure that, to the extent determined 
        appropriate for each acquisition program, such 
        technologies and treatments are incorporated into that 
        program, particularly during the engineering and design 
        phases of the acquisition process.
    ``(c) Long-Term Strategy.--(1) The Secretary of Defense 
shall develop and implement a long-term strategy to reduce 
corrosion and the effects of corrosion on the military 
equipment and infrastructure of the Department of Defense.
    ``(2) The strategy under paragraph (1) shall include the 
following:
            ``(A) Expansion of the emphasis on corrosion 
        prevention and mitigation within the Department of 
        Defense to include coverage of infrastructure.
            ``(B) Application uniformly throughout the 
        Department of Defense of requirements and criteria for 
        the testing and certification of new corrosion-
        prevention technologies for equipment and 
        infrastructure with similar characteristics, similar 
        missions, or similar operating environments.
            ``(C) Implementation of programs, including 
        supporting databases, to ensure that a focused and 
        coordinated approach is taken throughout the Department 
        of Defense to collect, review, validate, and distribute 
        information on proven methods and products that are 
        relevant to the prevention of corrosion of military 
        equipment and infrastructure.
            ``(D) Establishment of a coordinated research and 
        development program for the prevention and mitigation 
        of corrosion for new and existing military equipment 
        and infrastructure that includes a plan to transition 
        new corrosion prevention technologies into operational 
        systems.
    ``(3) The strategy shall include, for the matters specified 
in paragraph (2), the following:
            ``(A) Policy guidance.
            ``(B) Performance measures and milestones.
            ``(C) An assessment of the necessary personnel and 
        funding necessary to accomplish the long-term strategy.
    ``(d) Definitions.--In this section:
            ``(1) The term `corrosion' means the deterioration 
        of a material or its properties due to a reaction of 
        that material with its chemical environment.
            ``(2) The term `military equipment' includes all 
        weapon systems, weapon platforms, vehicles, and 
        munitions of the Department of Defense, and the 
        components of such items.
            ``(3) The term `infrastructure' includes all 
        buildings, structures, airfields, port facilities, 
        surface and subterranean utility systems, heating and 
        cooling systems, fuel tanks, pavements, and bridges.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``2228. Military equipment and infrastructure: prevention and mitigation 
          of corrosion.''.

    (b) Deadline for Designation of Responsible Official or 
Organization.--The Secretary of Defense shall designate an 
officer, employee, or standing board or committee of the 
Department of Defense under subsection (a) of section 2228 of 
title 10, United States Code, as added by subsection (a), not 
later than 90 days after the date of the enactment of this Act.
    (c) Interim Report.--When the President submits the budget 
for fiscal year 2004 to Congress pursuant to section 1105(a) of 
title 31, United States Code, the Secretary of Defense shall 
submit to Congress a report regarding the actions taken to that 
date under section 2228 of title 10, United States Code, as 
added by subsection (a). That report shall include the 
following:
            (1) A description of the organizational structure 
        for the personnel carrying out the responsibilities of 
        the official or organization designated under 
        subsection (a) of that section with respect to the 
        prevention and mitigation of corrosion.
            (2) An outline for the long-term strategy for 
        prevention and mitigation of corrosion required by 
        subsection (c) of that section and milestones for 
        development of that strategy.
    (d) Deadline for Long-Term Strategy.--The Secretary of 
Defense shall submit to Congress a report setting forth the 
long-term strategy required under subsection (c) of section 
2228 of title 10, United States Code, as added by subsection 
(a), not later than one year after the date of the enactment of 
this Act.
    (e) GAO Review.--The Comptroller General shall monitor the 
implementation of the long-term strategy required under 
subsection (c) of section 2228 of title 10, United States Code, 
as added by subsection (a), and, not later than 18 months after 
the date of the enactment of this Act, shall submit to Congress 
an assessment of the extent to which that strategy has been 
implemented.

SEC. 1068. TRANSFER OF HISTORIC DF-9E PANTHER AIRCRAFT TO WOMEN 
                    AIRFORCE SERVICE PILOTS MUSEUM.

    (a) Authority To Convey.--The Secretary of the Navy may 
convey, without consideration, to the Women Airforce Service 
Pilots Museum in Quartzsite, Arizona (in this section referred 
to as the ``W.A.S.P. Museum''), all right, title, and interest 
of the United States in and to a DF-9E Panther aircraft (Bureau 
Number 125316). The conveyance shall be made by means of a 
conditional deed of gift.
    (b) Condition of Aircraft.--The aircraft shall be conveyed 
under subsection (a) in its current unflyable, ``as is'' 
condition. The Secretary is not required to repair or alter the 
condition of the aircraft before conveying ownership of the 
aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary 
shall include in the instrument of conveyance of the aircraft 
under subsection (a) the following conditions:
            (1) The W.A.S.P. Museum may not convey any 
        ownership interest in, or transfer possession of, the 
        aircraft to any other party without the prior approval 
        of the Secretary.
            (2) If the Secretary determines at any time that 
        the W.A.S.P. Museum has conveyed an ownership interest 
        in, or transferred possession of, the aircraft to any 
        other party without the prior approval of the 
        Secretary, all right, title, and interest in and to the 
        aircraft, including any repair or alteration of the 
        aircraft, shall revert to the United States, and the 
        United States shall have the right of immediate 
        possession of the aircraft.
    (d) Conveyance at No Cost to the United States.--The 
conveyance of the aircraft under subsection (a) shall be made 
at no cost to the United States. Any costs associated with the 
conveyance, costs of determining compliance with subsection 
(b), and costs of operation and maintenance of the aircraft 
conveyed shall be borne by the W.A.S.P. Museum.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
a conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 1069. INCREASE IN AMOUNT AUTHORIZED TO BE EXPENDED FOR DEPARTMENT 
                    OF DEFENSE PROGRAM TO COMMEMORATE 50TH ANNIVERSARY 
                    OF THE KOREAN WAR.

    Section 1083(f)(2) of the National Defense Authorization 
Act for Fiscal Year 1998 (10 U.S.C. 113 note) is amended by 
striking ``$7,000,000'' and inserting ``$10,000,000''.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
          employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum 
          severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
          eligibility.
Sec. 1104. Certification for Department of Defense professional 
          accounting positions.

SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE NONAPPROPRIATED FUND 
                    EMPLOYEES FOR LONG-TERM CARE INSURANCE.

    (a) In General.--Section 9001(1) of title 5, United States 
Code, is amended--
            (1) in subparagraph (B), by striking ``and'';
            (2) in subparagraph (C), by striking the comma at 
        the end and inserting ``; and''; and
            (3) by inserting after subparagraph (C) the 
        following new subparagraph:
                    ``(D) an employee of a nonappropriated fund 
                instrumentality of the Department of Defense 
                described in section 2105(c),''.
    (b) Discretionary Authority.--Section 9002 of such title is 
amended--
            (1) by redesignating subsections (b), (c), (d), and 
        (e) as subsections (c), (d), (e), and (f), 
        respectively; and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Discretionary Authority Regarding Nonappropriated 
Fund Instrumentalities.--The Secretary of Defense may determine 
that a nonappropriated fund instrumentality of the Department 
of Defense is covered under this chapter or is covered under an 
alternative long-term care insurance program.''.

SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO MAKE LUMP-
                    SUM SEVERANCE PAYMENTS.

    (a) In General.--Section 5595(i)(4) of title 5, United 
States Code, is amended by striking ``2003'' and inserting 
``2006''.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the President shall submit to the 
Committees on Armed Services and on Governmental Affairs of the 
Senate and the Committees on Armed Services and on Government 
Reform of the House of Representatives a report, including 
recommendations, on whether the authority under section 5595(i) 
of title 5, United States Code, should be made permanent or 
expanded to be made Governmentwide.

SEC. 1103. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM 
                    ELIGIBILITY.

    Paragraph (4)(B) of section 8905a(d) of title 5, United 
States Code, is amended--
            (1) in clause (i), by striking ``2003'' and 
        inserting ``2006''; and
            (2) in clause (ii)--
                    (A) by striking ``2004'' and inserting 
                ``2007''; and
                    (B) by striking ``2003'' and inserting 
                ``2006''.

SEC. 1104. CERTIFICATION FOR DEPARTMENT OF DEFENSE PROFESSIONAL 
                    ACCOUNTING POSITIONS.

    (a) In General.--(1) Chapter 81 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 1599d. Professional accounting positions: authority to prescribe 
                    certification and credential standards

    ``(a) Authority To Prescribe Professional Certification 
Standards.--The Secretary of Defense may prescribe professional 
certification and credential standards for professional 
accounting positions within the Department of Defense. Any such 
standard shall be prescribed as a Department of Defense 
regulation.
    ``(b) Waiver Authority.--The Secretary may waive any 
standard prescribed under subsection (a) whenever the Secretary 
determines such a waiver to be appropriate.
    ``(c) Applicability.--A standard prescribed under 
subsection (a) shall not apply to any person employed by the 
Department of Defense before the standard is prescribed.
    ``(d) Report.--The Secretary of Defense shall submit to 
Congress a report on the Secretary's plans to provide training 
to appropriate Department of Defense personnel to meet any new 
professional and credential standards prescribed under 
subsection (a). Such report shall be prepared in conjunction 
with the Director of the Office of Personnel Management. Such a 
report shall be submitted not later than one year after the 
effective date of any regulations, or any revision to 
regulations, prescribed pursuant to subsection (a).
    ``(e) Definition.--In this section, the term `professional 
accounting position' means a position or group of positions in 
the GS-510, GS-511, and GS-505 series that involves 
professional accounting work.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to prescribe 
          certification and credential standards.''.

    (b) Effective Date.--Standards established pursuant to 
section 1599d of title 10, United States Code, as added by 
subsection (a), may take effect no sooner than 120 days after 
the date of the enactment of this Act.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
          coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
          countries participating in NATO Partnership for Peace program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
          Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
          monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
          integration of all United States nonproliferation activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
          and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
          United States and China on cooperation in science and 
          technology.
Sec. 1208. Extension of certain counterproliferation activities and 
          programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
          contributions by foreign persons to efforts by countries of 
          proliferation concern to obtain weapons of mass destruction 
          and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
          exchanges between the Armed Forces of the United States and 
          the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific. 

SEC. 1201. AUTHORITY TO PROVIDE ADMINISTRATIVE SERVICES AND SUPPORT FOR 
                    COALITION LIAISON OFFICERS.

    (a) Authority.--(1) Chapter 53 of title 10, United States 
Code, is amended by inserting after section 1051 the following 
new section:

``Sec. 1051a. Coalition liaison officers: administrative services and 
                    support; travel, subsistence, and other personal 
                    expenses

    ``(a) Authority.--The Secretary of Defense may provide 
administrative services and support for the performance of 
duties by a liaison officer of another nation involved in a 
coalition with the United States while the liaison officer is 
assigned temporarily to the headquarters of a combatant 
command, component command, or subordinate operational command 
of the United States in connection with the planning for, or 
conduct of, a coalition operation.
    ``(b) Travel and Subsistence Expenses.--(1) The Secretary 
may pay the expenses specified in paragraph (2) of a liaison 
officer of a developing country in connection with the 
assignment of that officer to the headquarters of a combatant 
command as described in subsection (a), if the assignment is 
requested by the commander of the combatant command.
    ``(2) Expenses of a liaison officer that may be paid under 
paragraph (1) in connection with an assignment described in 
that paragraph are the following:
            ``(A) Travel and subsistence expenses.
            ``(B) Personal expenses directly necessary to carry 
        out the duties of that officer in connection with that 
        assignment.
    ``(c) Reimbursement.--To the extent that the Secretary 
determines appropriate, the Secretary may provide the services 
and support authorized by subsection (a) and the expenses 
authorized by subsection (b) with or without reimbursement from 
(or on behalf of) the recipients.
    ``(d) Definitions.--In this section:
            ``(1) The term `administrative services and 
        support' includes base or installation support 
        services, office space, utilities, copying services, 
        fire and police protection, and computer support.
            ``(2) The term `coalition' means an ad hoc 
        arrangement between or among the United States and one 
        or more other nations for common action.
    ``(e) Expiration of Authority.--The authority under this 
section shall expire on September 30, 2005.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1051 
the following new item:

``1051a. Coalition liaison officers: administrative services and 
          support; travel, subsistence, and other personal expenses.''.

    (b) GAO Report.--Not later than March 1, 2005, the 
Comptroller General shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report 
providing an assessment of the implementation of section 1051a 
of title 10, United States Code, as added by subsection (a). 
The assessment shall include the following:
            (1) A description of the benefits to coalition 
        operations of the authority provided by that section.
            (2) A statement of the cost to the Department of 
        Defense of the use of the authority provided by that 
        section.
            (3) A summary of activities carried out under the 
        authority provided by that section, including (A) the 
        number of liaison officers for whom administrative 
        services and support or expenses were provided under 
        that authority and their countries of origin, and (B) 
        the type of services, support, and expenses provided.

SEC. 1202. AUTHORITY TO PAY FOR CERTAIN TRAVEL OF DEFENSE PERSONNEL OF 
                    COUNTRIES PARTICIPATING IN NATO PARTNERSHIP FOR 
                    PEACE PROGRAM.

    (a) Authority for Use of Funds.--Section 1051(b) of title 
10, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' 
        and inserting ``paragraphs (2) and (3)'';
            (2) by redesignating paragraph (3) as paragraph 
        (4); and
            (3) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) In the case of defense personnel of a developing 
country that is not a member of the North Atlantic Treaty 
Organization and that is participating in the Partnership for 
Peace program of the North Atlantic Treaty Organization (NATO), 
expenses authorized to be paid under subsection (a) may be paid 
in connection with travel of personnel to the territory of any 
of the countries participating in the Partnership for Peace 
program or the territory of any NATO member country.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply only with respect to travel performed on or after 
the date of the enactment of this Act.

SEC. 1203. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN 
                    MOSCOW.

    (a) Limitation.--Not more than 50 percent of the funds made 
available to the Department of Defense for fiscal year 2003 for 
activities associated with the Joint Data Exchange Center in 
Moscow, Russia, may be obligated or expended for any such 
activity until--
            (1) the United States and the Russian Federation 
        enter into a cost-sharing agreement as described in 
        subsection (d) of section 1231 of the Floyd D. Spence 
        National Defense Authorization Act for Fiscal Year 2001 
        (as enacted into law by Public Law 106-398; 114 Stat. 
        1654A-329);
            (2) the United States and the Russian Federation 
        enter into an agreement or agreements exempting the 
        United States and any United States person from Russian 
        taxes, and from liability under Russian laws, with 
        respect to activities associated with the Joint Data 
        Exchange Center;
            (3) the Secretary of Defense submits to the 
        Committee on Armed Services of the Senate and the 
        Committee on Armed Services of the House of 
        Representatives a copy of each agreement referred to in 
        paragraphs (1) and (2); and
            (4) a period of 30 days has expired after the date 
        of the final submission under paragraph (3).
    (b) Joint Data Exchange Center.--For purposes of this 
section, the term ``Joint Data Exchange Center'' means the 
United States-Russian Federation joint center for the exchange 
of data to provide early warning of launches of ballistic 
missiles and for notification of such launches that is provided 
for in a joint United States-Russian Federation memorandum of 
agreement signed in Moscow in June 2000.

SEC. 1204. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
                    MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 
2003.--The total amount of the assistance for fiscal year 2003 
that is provided by the Secretary of Defense under section 1505 
of the Weapons of Mass Destruction Control Act of 1992 (22 
U.S.C. 5859a) as activities of the Department of Defense in 
support of activities under that Act may not exceed 
$15,000,000.
    (b) Extension of Authority To Provide Assistance.--
Subsection (f) of section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended by 
striking ``2002'' and inserting ``2003''.

SEC. 1205. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON COORDINATION AND 
                    INTEGRATION OF ALL UNITED STATES NONPROLIFERATION 
                    ACTIVITIES.

    Section 1205 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1247) is 
amended by adding at the end the following new subsection:
    ``(d) Annual Report on Implementation of Plan.--(1) Not 
later than January 31, 2003, and each year thereafter, the 
President shall submit to Congress a report on the 
implementation of the plan required by subsection (a) during 
the preceding year.
    ``(2) Each report under paragraph (1) shall include--
            ``(A) a discussion of progress made during the year 
        covered by such report in the matters of the plan 
        required by subsection (a);
            ``(B) a discussion of consultations with foreign 
        nations, and in particular the Russian Federation, 
        during such year on joint programs to implement the 
        plan;
            ``(C) a discussion of cooperation, coordination, 
        and integration during such year in the implementation 
        of the plan among the various departments and agencies 
        of the United States Government, as well as private 
        entities that share objectives similar to the 
        objectives of the plan; and
            ``(D) any recommendations that the President 
        considers appropriate regarding modifications to law or 
        regulations, or to the administration or organization 
        of any Federal department or agency, in order to 
        improve the effectiveness of any programs carried out 
        during such year in the implementation of the plan.''.

SEC. 1206. REPORT REQUIREMENT REGARDING RUSSIAN PROLIFERATION TO IRAN 
                    AND OTHER COUNTRIES OF PROLIFERATION CONCERN.

    (a) Report Requirement.--Not later than March 15 of 2003 
through 2009, the President shall submit to Congress a report 
(in unclassified and classified form as necessary) describing 
in detail Russian proliferation of weapons of mass destruction 
and ballistic missile goods, technology, expertise, and 
information, and of dual-use items that may contribute to the 
development of weapons of mass destruction and ballistic 
missiles, to Iran and to other countries of proliferation 
concern during the year preceding the year in which the report 
is submitted. The report shall include a detailed description 
of the following, for the year covered by the report:
            (1) The number, type, and quality of direct and 
        dual-use weapons of mass destruction and ballistic 
        missile goods, technology, expertise, and information 
        transferred.
            (2) The form, location, and manner in which such 
        transfers took place.
            (3) The contribution that such transfers could make 
        to the recipient countries' weapons of mass destruction 
        and ballistic missile programs, and an estimate of how 
        soon such countries will test, possess, and deploy 
        weapons of mass destruction and ballistic missiles.
            (4) The impact and consequences that such transfers 
        have, and could have over the next 10 years--
                    (A) on United States national security;
                    (B) on United States military forces 
                deployed in the region to which such transfers 
                are being made;
                    (C) on United States allies, friends, and 
                interests in that region; and
                    (D) on the military capabilities of the 
                country receiving such transfers from Russia.
            (5) The policy and strategy that the President 
        intends to employ to halt Russian proliferation, the 
        policy tools that the President intends to use to carry 
        out that policy and strategy, the rationale for 
        employing such tools, and the timeline by which the 
        President expects to see material progress in ending 
        Russian proliferation of direct and dual-use weapons of 
        mass destruction and missile goods, technology, 
        expertise, and information.
    (b) Definition.--In this section, the term ``country of 
proliferation concern'' means any country identified by the 
Director of Central Intelligence as having engaged in the 
acquisition of dual-use and other technology useful for the 
development or production of weapons of mass destruction 
(including nuclear weapons, chemical weapons, and biological 
weapons) or advanced conventional munitions--
            (1) in the most recent report under section 721 of 
        the Combatting Proliferation of Weapons of Mass 
        Destruction Act of 1996 (title VII of Public Law 104-
        293; 50 U.S.C. 2366); or
            (2) in any successor report on the acquisition by 
        foreign countries of dual-use and other technology 
        useful for the development or production of weapons of 
        mass destruction.

SEC. 1207. MONITORING OF IMPLEMENTATION OF 1979 AGREEMENT BETWEEN THE 
                    UNITED STATES AND CHINA ON COOPERATION IN SCIENCE 
                    AND TECHNOLOGY.

    (a) In General.--The Secretary of State shall--
            (1) monitor the implementation of the Agreement 
        specified in subsection (c);
            (2) keep a systematic account of the protocols to 
        the Agreement;
            (3) coordinate the activities of all agencies of 
        the United States Government that carry out cooperative 
        activities under the Agreement; and
            (4) ensure that all activities conducted under the 
        Agreement comply with applicable laws and regulations 
        concerning the transfer of militarily sensitive 
        technologies and dual-use technologies.
    (b) Responsibilities of the Office of Science and 
Technology Cooperation.--Except as otherwise provided by the 
Secretary of State, the functions of the Secretary under this 
section shall be carried out through the Director of the Office 
of Science and Technology Cooperation of the Department of 
State.
    (c) Agreement Defined.--For purposes of this section, the 
term ``Agreement'' means the agreement between the United 
States and the People's Republic of China known as the 
``Agreement between the Government of the United States of 
America and the Government of the People's Republic of China on 
Cooperation in Science and Technology'', signed in Washington 
on January 31, 1979, and its protocols.
    (d) Biennial Report to Congress.--(1) Not later than April 
1 of each even-numbered year, the Secretary of State shall 
submit to Congress a report on the implementation of the 
Agreement and on activities under the Agreement. Each such 
report shall be submitted in both classified and unclassified 
form, as necessary.
    (2) Each report under this subsection shall provide an 
evaluation of the benefits of the Agreement to the economy, to 
the military, and to the industrial base of the People's 
Republic of China and shall include the following:
            (A) An accounting of all activities conducted under 
        the Agreement since the previous report (or, in the 
        case of the first report, since the Agreement was 
        entered into) and a projection of activities to be 
        undertaken under the Agreement during the next two 
        years.
            (B) An estimate of the costs to the United States 
        to administer the Agreement during the period covered 
        by the report.
            (C) An assessment of how the Agreement has 
        influenced the foreign and domestic policies of the 
        People's Republic of China and the policy of the 
        People's Republic of China toward scientific and 
        technological cooperation with the United States.
            (D) An analysis by the Director of Central 
        Intelligence of the involvement of military 
        specialists, weapons specialists, and intelligence 
        specialists of the People's Republic of China in the 
        activities of the Joint Commission established under 
        the Agreement and in other activities conducted under 
        the Agreement.
            (E) A determination by the Secretary of Defense, 
        developed with the assistance of the Director of 
        Central Intelligence, of the extent to which the 
        activities conducted under the Agreement have enhanced 
        the military and defense industrial base of the 
        People's Republic of China, and an assessment of the 
        effect that projected activities under the Agreement 
        for the next two years, including the transfer of 
        technology and know-how, could have on the economic and 
        military capabilities of the People's Republic of 
        China.
            (F) An assessment by the Inspector General of the 
        Department of Commerce of--
                    (i) the extent to which programs or 
                activities carried out under the Agreement 
                provide access to technology, information, or 
                know-how that could enhance military 
                capabilities of the People's Republic of China; 
                and
                    (ii) the extent to which those programs or 
                activities are carried out in compliance with 
                export control laws and regulations of the 
                United States, especially those laws and 
                regulations governing so-called ``deemed 
                exports''.
            (G) Any recommendations of the Secretary of State, 
        Secretary of Defense, or Director of Central 
        Intelligence for improving the monitoring of the 
        activities of the Joint Commission established under 
        the Agreement.
    (3) The Secretary of State shall prepare each report under 
this subsection in consultation with the Secretary of Defense, 
the Secretary of Energy, the Director of Central Intelligence, 
the Director of the Federal Bureau of Investigation, and the 
Director of the National Science Foundation.
    (e) Interagency Working Group.--The President shall 
establish an interagency working group to oversee the 
implementation of the Agreement by departments and agencies of 
the United States. The working group shall consist of 
representatives of such departments, agencies, and offices of 
the executive branch as the President considers appropriate. 
The working group shall perform the following functions:
            (1) Assisting the Secretary of State and other 
        appropriate officials in setting standards under the 
        Agreement for science and technology transfers between 
        the United States and the People's Republic of China.
            (2) Monitoring ongoing programs and activities 
        under the Agreement and recommending future programs 
        and activities under the Agreement.
            (3) Developing a comprehensive database of all 
        government-to-government programs and United States 
        Government-funded programs under the Agreement.
            (4) Coordinating activities under the Agreement 
        between United States Government agencies, including 
        elements of the intelligence community, as appropriate.

SEC. 1208. EXTENSION OF CERTAIN COUNTERPROLIFERATION ACTIVITIES AND 
                    PROGRAMS.

    (a) Extension of Interagency Counterproliferation Program 
Review Committee.--Section 1605(f) of the National Defense 
Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is 
amended by striking ``September 30, 2004'' and inserting 
``September 30, 2008''.
    (b) Later Deadline for Submission of Annual Report.--
Subsection (a) of section 1503 of the National Defense 
Authorization Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is 
amended by striking ``February 1 of each year'' and inserting 
``May 1 each year''.
    (c) Additional Matters To Be Included in Annual Report.--
Subsection (b) of such section is amended by adding at the end 
the following new paragraph:
            ``(8) A discussion of the limitations and 
        impediments to the biological weapons 
        counterproliferation efforts of the Department of 
        Defense (including legal, policy, and resource 
        constraints) and recommendations for the removal or 
        mitigation of such impediments and for ways to make 
        such efforts more effective.''.
    (d) Technical Amendment To Reflect Change in Position 
Title.--Section 1605(a)(4) of the National Defense 
Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is 
amended by striking ``Under Secretary of Defense for 
Acquisition and Technology'' in the first sentence and 
inserting ``Under Secretary of Defense for Acquisition, 
Technology, and Logisitics''.

SEC. 1209. SEMIANNUAL REPORT BY DIRECTOR OF CENTRAL INTELLIGENCE ON 
                    CONTRIBUTIONS BY FOREIGN PERSONS TO EFFORTS BY 
                    COUNTRIES OF PROLIFERATION CONCERN TO OBTAIN 
                    WEAPONS OF MASS DESTRUCTION AND THEIR DELIVERY 
                    SYSTEMS.

    (a) Content of Semiannual Report.--The Combatting 
Proliferation of Weapons of Mass Destruction Act of 1996 (title 
VII of Public Law 104-293) is amended by inserting after 
section 721 (50 U.S.C. 2366) the following new section:

``SEC. 722. SEMIANNUAL REPORT ON CONTRIBUTIONS OF FOREIGN PERSONS TO 
                    WEAPONS OF MASS DESTRUCTION AND DELIVERY SYSTEMS 
                    EFFORTS OF COUNTRIES OF PROLIFERATION CONCERN.

    ``(a) Reports.--The Director of Central Intelligence shall 
submit to Congress a semiannual report identifying each foreign 
person that, during the period covered by the report, made a 
material contribution to the research, development, production, 
or acquisition by a country of proliferation concern of--
            ``(1) weapons of mass destruction (including 
        nuclear weapons, chemical weapons, or biological 
        weapons); or
            ``(2) ballistic or cruise missile systems.
    ``(b) Period of Semiannual Reports.--Semiannual reports 
under subsection (a) shall be submitted as follows:
            ``(1) One semiannual report shall cover the first 
        six months of the calendar year and shall be submitted 
        not later than January 1 of the following year.
            ``(2) The other semiannual report shall cover the 
        second six months of the calendar year and shall be 
        submitted not later than July 1 of the following year.
    ``(c) Form of Reports.--(1) A report under subsection (a) 
may be submitted in classified form, in whole or in part, if 
the Director of Central Intelligence determines that submittal 
in that form is advisable.
    ``(2) Any portion of a report under subsection (a) that is 
submitted in classified form shall be accompanied by an 
unclassified summary of such portion.
    ``(d) Definitions.--In this section:
            ``(1) The term `foreign person' means any of the 
        following:
                    ``(A) A natural person who is not a citizen 
                of the United States.
                    ``(B) A corporation, business association, 
                partnership, society, trust, or other 
                nongovernmental entity, organization, or group 
                that is organized under the laws of a foreign 
                country or has its principal place of business 
                in a foreign country.
                    ``(C) Any foreign government or foreign 
                governmental entity operating as a business 
                enterprise or in any other capacity.
                    ``(D) Any successor, subunit, or subsidiary 
                of any entity described in subparagraph (B) or 
                (C).
            ``(2) The term `country of proliferation concern' 
        means any country identified by the Director of Central 
        Intelligence as having engaged in the acquisition of 
        dual-use and other technology useful for the 
        development or production of weapons of mass 
        destruction (including nuclear weapons, chemical 
        weapons, and biological weapons) or advanced 
        conventional munitions--
                    ``(A) in the most recent report under 
                section 721; or
                    ``(B) in any successor report on the 
                acquisition by foreign countries of dual-use 
                and other technology useful for the development 
                or production of weapons of mass 
                destruction.''.
    (b) Effective Date.--Section 722 of the Combatting 
Proliferation of Weapons of Mass Destruction Act of 1996, as 
added by subsection (a), shall take effect with the report with 
respect to the first six months of 2003 required to be 
submitted under that section not later than January 1, 2004.

SEC. 1210. REPORT ON FEASIBILITY AND ADVISABILITY OF SENIOR OFFICER 
                    EXCHANGES BETWEEN THE ARMED FORCES OF THE UNITED 
                    STATES AND THE MILITARY FORCES OF TAIWAN.

    (a) Presidential Report.--Not later than 180 days after the 
date of the enactment of this Act, the President shall submit 
to Congress a report on--
            (1) the feasibility and advisability of conducting 
        combined operational training with, and exchanges of 
        general and flag officers between, the Armed Forces of 
        the United States and the military forces of Taiwan; 
        and
            (2) the progress being made in meeting United 
        States commitments to the security of Taiwan.
    (b) Classification of Report.--The report required by this 
section shall be submitted in unclassified form and, as 
necessary, in classified form.

SEC. 1211. REPORT ON UNITED STATES FORCE STRUCTURE IN THE PACIFIC.

    (a) Secretary of Defense Report.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report on the plans of the 
Department of Defense to maintain adequate United States force 
structure in the Pacific, including any efforts (1) to augment 
current basing arrangements, and (2) to implement the 
recommendations from the most recent Quadrennial Defense Review 
to improve United States military capabilities in the Pacific.
    (b) Classification of Report.--The report required by this 
section shall be submitted in unclassified form and, as 
necessary, in classified form.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
          under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
          material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
          reduction in states of the former Soviet Union.

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

    (a) Specification of CTR Programs.--For purposes of section 
301 and other provisions of this Act, Cooperative Threat 
Reduction programs are the programs specified in section 
1501(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
note).
    (b) Fiscal Year 2003 Cooperative Threat Reduction Funds 
Defined.--As used in this title, the term ``fiscal year 2003 
Cooperative Threat Reduction funds'' means the funds 
appropriated pursuant to the authorization of appropriations in 
section 301 for Cooperative Threat Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to 
the authorization of appropriations in section 301 for 
Cooperative Threat Reduction programs shall be available for 
obligation for three fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $416,700,000 
authorized to be appropriated to the Department of Defense for 
fiscal year 2003 in section 301(23) for Cooperative Threat 
Reduction programs, the following amounts may be obligated for 
the purposes specified:
            (1) For strategic offensive arms elimination in 
        Russia, $70,500,000.
            (2) For strategic nuclear arms elimination in 
        Ukraine, $6,500,000.
            (3) For nuclear weapons transportation security in 
        Russia, $19,700,000.
            (4) For nuclear weapons storage security in Russia, 
        $40,000,000.
            (5) For activities designated as Other Assessments/
        Administrative Support, $14,700,000.
            (6) For defense and military contacts, $18,900,000.
            (7) For weapons of mass destruction infrastructure 
        elimination activities in Kazakhstan, $9,000,000.
            (8) For weapons of mass destruction infrastructure 
        elimination activities in Ukraine, $8,800,000.
            (9) For chemical weapons destruction in Russia, 
        $50,000,000.
            (10) For biological weapons proliferation 
        prevention in the former Soviet Union, $55,000,000.
            (11) For weapons of mass destruction proliferation 
        prevention in the States of the former Soviet Union, 
        $40,000,000.
    (b) Additional Funds Authorized for Certain Purposes.--Of 
the funds authorized to be appropriated to the Department of 
Defense for fiscal year 2003 in section 301(23) for Cooperative 
Threat Reduction programs, $83,600,000 may be obligated for any 
of the purposes specified in paragraphs (1) through (4) and (9) 
of subsection (a) in addition to the amounts specifically 
authorized in such paragraphs.
    (c) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2003 Cooperative Threat Reduction 
funds may be obligated or expended for a purpose other than a 
purpose listed in paragraphs (1) through (11) of subsection (a) 
until 30 days after the date that the Secretary of Defense 
submits to Congress a report on the purpose for which the funds 
will be obligated or expended and the amount of funds to be 
obligated or expended. Nothing in the preceding sentence shall 
be construed as authorizing the obligation or expenditure of 
fiscal year 2003 Cooperative Threat Reduction funds for a 
purpose for which the obligation or expenditure of such funds 
is specifically prohibited under this title or any other 
provision of law.
    (d) Limited Authority To Vary Individual Amounts.--(1) 
Subject to paragraphs (2) and (3), in any case in which the 
Secretary of Defense determines that it is necessary to do so 
in the national interest, the Secretary may obligate amounts 
appropriated for fiscal year 2003 for a purpose listed in any 
of the paragraphs in subsection (a) in excess of the specific 
amount authorized for that purpose.
    (2) An obligation of funds for a purpose stated in any of 
the paragraphs in subsection (a) in excess of the specific 
amount authorized for such purpose may be made using the 
authority provided in paragraph (1) only after--
            (A) the Secretary submits to Congress notification 
        of the intent to do so together with a complete 
        discussion of the justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts for a purpose stated in any of 
paragraphs (5) through (10) of subsection (a) in excess of 125 
percent of the specific amount authorized for such purpose.
    (4) In this section, the term ``specific amount 
authorized'' means, with respect to a purpose listed in any 
paragraph in subsection (a)--
            (A) the amount specifically authorized for that 
        purpose in subsection (a), plus
            (B) in the case of a purpose listed in paragraph 
        (1), (2), (3), (4), or (9) of subsection (a), any 
        amount obligated under subsection (b) for that purpose.

SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION OF 
                    REPORTS.

    Not more than 50 percent of fiscal year 2003 Cooperative 
Threat Reduction funds may be obligated or expended until 30 
days after the date of the submission of--
            (1) the report required to be submitted in fiscal 
        year 2002 under section 1308(a) of the Floyd D. Spence 
        National Defense Authorization Act for Fiscal Year 2001 
        (as enacted into law by Public Law 106-398; 114 Stat. 
        1654A-341); and
            (2) the update for the multiyear plan required to 
        be submitted for fiscal year 2001 under section 1205 of 
        the National Defense Authorization Act for Fiscal Year 
        1995 (Public Law 103-337; 22 U.S.C. 5952 note).

SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES CARRIED OUT 
                    UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) Additional Report Requirements.--Section 1308(c) of the 
Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-341) is amended by inserting at the end the following new 
paragraphs:
            ``(6) To the maximum extent practicable, a 
        description of how revenue generated by activities 
        carried out under Cooperative Threat Reduction programs 
        in recipient States is being utilized, monitored, and 
        accounted for.
            ``(7) A description of the defense and military 
        activities carried out under Cooperative Threat 
        Reduction programs during the fiscal year ending in the 
        year preceding the year of the report, including--
                    ``(A) the amounts obligated or expended for 
                such activities;
                    ``(B) the purposes, goals, and objectives 
                for which such amounts were obligated and 
                expended;
                    ``(C) a description of the activities 
                carried out, including the forms of assistance 
                provided, and the justification for each form 
                of assistance provided;
                    ``(D) the success of each activity, 
                including the goals and objectives achieved for 
                each;
                    ``(E) a description of participation by 
                private sector entities in the United States in 
                carrying out such activities, and the 
                participation of any other Federal department 
                or agency in such activities; and
                    ``(F) any other information that the 
                Secretary considers relevant to provide a 
                complete description of the operation and 
                success of activities carried out under 
                Cooperative Threat Reduction programs.''.
    (b) Effective Date.--Paragraphs (6) and (7) of section 
1308(c) of such Act, as added by subsection (a), shall apply 
beginning with the report submitted under that section in 2004.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE 
                    MATERIAL STORAGE FACILITY.

    No funds authorized to be appropriated for Cooperative 
Threat Reduction programs for any fiscal year may be used for 
the design, planning, or construction of a second wing for a 
storage facility for Russian fissile material.

SEC. 1306. LIMITED WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR THREAT 
                    REDUCTION IN STATES OF THE FORMER SOVIET UNION.

    (a) Authority To Waive Restrictions and Eligibility 
Requirements.--If the President submits the certification and 
report described in subsection (b) with respect to an 
independent state of the former Soviet Union for a fiscal 
year--
            (1) the restrictions in subsection (d) of section 
        1203 of the Cooperative Threat Reduction Act of 1993 
        (22 U.S.C. 5952) shall cease to apply, and funds may be 
        obligated and expended under that section for 
        assistance, to that state during that fiscal year; and
            (2) funds may be obligated and expended during that 
        fiscal year under section 502 of the FREEDOM Support 
        Act (22 U.S.C. 5852) for assistance or other programs 
        and activities for that state even if that state has 
        not met one or more of the requirements for eligibility 
        under paragraphs (1) through (4) of that section.
    (b) Certification and Report.--(1) The certification and 
report referred to in subsection (a) are a written 
certification submitted by the President to Congress that the 
waiver of the restrictions and requirements described in 
paragraphs (1) and (2) of that subsection during such fiscal 
year is important to the national security interests of the 
United States, together with a report containing the following:
            (A) A description of the activity or activities 
        that prevent the President from certifying that the 
        state is committed to the matters set forth in the 
        provisions of law specified in paragraphs (1) and (2) 
        of subsection (a) in such fiscal year.
            (B) An explanation of why the waiver is important 
        to the national security interests of the United 
        States.
            (C) A description of the strategy, plan, or policy 
        of the President for promoting the commitment of the 
        state to, and compliance by the state with, such 
        matters, notwithstanding the waiver.
    (2) The matter included in the report under paragraph (1) 
shall be submitted in unclassified form, but may include a 
classified annex.
    (c) Fiscal Years Covered.--The authority under subsection 
(a) shall apply only with respect to fiscal years 2003, 2004, 
and 2005.
    (d) Expiration of Authority.--The authority under 
subsection (a) shall expire on September 30, 2005.
    (e) Administration of Restrictions on Assistance.--
Subsection (d) of section 1203 of the Cooperative Threat 
Reduction Act of 1993 (title XII of Public Law 103-160; 107 
Stat. 1778; 22 U.S.C. 5952) is amended--
            (1) by striking ``any year'' and inserting ``any 
        fiscal year''; and
            (2) by striking ``that year'' and inserting ``such 
        fiscal year''.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
          homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of military 
          installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in supporting 
          homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
          local first responders.

SEC. 1401. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT IN SUPPORT OF 
                    HOMELAND SECURITY.

    (a) Responsible Senior Official.--The Secretary of Defense 
shall designate a senior official of the Department of Defense 
to coordinate all Department of Defense efforts to identify, 
evaluate, deploy, and transfer to Federal, State, and local 
first responders technology items and equipment in support of 
homeland security.
    (b) Duties.--The official designated pursuant to subsection 
(a) shall--
            (1) identify technology items and equipment 
        developed or being developed by Department of Defense 
        components that have the potential to enhance public 
        safety and improve homeland security;
            (2) cooperate with appropriate Federal Government 
        officials outside the Department of Defense to evaluate 
        whether such technology items and equipment would be 
        useful to first responders;
            (3) facilitate the timely transfer, through 
        identification of appropriate private sector 
        manufacturers, of appropriate technology items and 
        equipment to Federal, State, and local first 
        responders, in coordination with appropriate Federal 
        Government officials outside the Department of Defense;
            (4) identify and eliminate redundant and 
        unnecessary research efforts within the Department of 
        Defense with respect to technologies to be deployed to 
        first responders;
            (5) expedite the advancement of high priority 
        Department of Defense projects from research through 
        implementation of initial manufacturing; and
            (6) participate in outreach programs established by 
        appropriate Federal Government officials outside the 
        Department of Defense to communicate with first 
        responders and to facilitate awareness of available 
        technology items and equipment to support responses to 
        crises.
    (c) Support Agreement.--The official designated pursuant to 
subsection (a) shall enter into an appropriate agreement with a 
nongovernment entity for such entity to assist the official 
designated under subsection (a) in carrying out that official's 
duties under this section. Any such agreement shall be entered 
into using competitive procedures in compliance with applicable 
requirements of law and regulation.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report on the actions 
taken to carry out this section. The report shall include the 
following:
            (1) Identification of the senior official 
        designated pursuant to subsection (a).
            (2) A summary of the actions taken or planned to be 
        taken to implement subsection (b), including a schedule 
        for planned actions.
            (3) An initial list of technology items and 
        equipment identified pursuant to subsection (b)(1), 
        together with a summary of any program schedule for the 
        development, deployment, or transfer of such items and 
        equipment.
            (4) A description of any agreement entered into 
        pursuant to subsection (c).

SEC. 1402. COMPREHENSIVE PLAN FOR IMPROVING THE PREPAREDNESS OF 
                    MILITARY INSTALLATIONS FOR TERRORIST INCIDENTS.

    (a) Comprehensive Plan.--The Secretary of Defense shall 
develop a comprehensive plan for improving the preparedness of 
military installations for preventing and responding to 
terrorist attacks, including attacks involving the use or 
threat of use of weapons of mass destruction.
    (b) Preparedness Strategy.--The plan under subsection (a) 
shall include a preparedness strategy that includes each of the 
following:
            (1) Identification of long-term goals and 
        objectives for improving the preparedness of military 
        installations for preventing and responding to 
        terrorist attacks.
            (2) Identification of budget and other resource 
        requirements necessary to achieve those goals and 
        objectives.
            (3) Identification of factors beyond the control of 
        the Secretary that could impede the achievement of 
        those goals and objectives.
            (4) A discussion of the extent to which local, 
        regional, or national military response capabilities 
        are to be developed, integrated, and used.
            (5) A discussion of how the Secretary will 
        coordinate the capabilities referred to in paragraph 
        (4) with local, regional, or national civilian and 
        other military capabilities.
    (c) Performance Plan.--The plan under subsection (a) shall 
include a performance plan that includes each of the following:
            (1) A reasonable schedule, with milestones, for 
        achieving the goals and objectives of the strategy 
        under subsection (b).
            (2) Performance criteria for measuring progress in 
        achieving those goals and objectives.
            (3) A description of the process, together with a 
        discussion of the resources, necessary to achieve those 
        goals and objectives.
            (4) A description of the process for evaluating 
        results in achieving those goals and objectives.
    (d) Submittal to Congress.--The Secretary shall submit the 
comprehensive plan developed under subsection (a) to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives not later than 
180 days after the date of the enactment of this Act.
    (e) Comptroller General Review and Report.--Not later than 
60 days after the date on which the Secretary submits the 
comprehensive plan under subsection (a), the Comptroller 
General shall review the plan and submit to the committees 
referred to in subsection (d) the Comptroller General's 
assessment of the plan.
    (f) Annual Report.--(1) In each of 2004, 2005, and 2006, 
the Secretary of Defense shall include a report on the 
comprehensive plan developed under subsection (a) with the 
materials that the Secretary submits to Congress in support of 
the budget submitted by the President that year pursuant to 
section 1105(a) of title 31, United States Code.
    (2) Each such report shall include--
            (A) a discussion of any revision that the Secretary 
        has made in the comprehensive plan developed under 
        subsection (a) since the last report under this 
        subsection or, in the case of the first such report, 
        since the plan was submitted under subsection (d); and
            (B) an assessment of the progress made in achieving 
        the goals and objectives of the strategy set forth in 
        the plan.
    (3) If the Secretary includes in the report for 2004 or 
2005 under this subsection a declaration that the goals and 
objectives of the preparedness strategy set forth in the 
comprehensive plan have been achieved, no further report is 
required under this subsection.

SEC. 1403. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

    (a) Establishment of Additional Teams.--The Secretary of 
Defense shall--
            (1) establish 23 additional teams designated as 
        Weapons of Mass Destruction Civil Support Teams, for a 
        total of 55 such teams; and
            (2) ensure that of such 55 teams, there is at least 
        one team established in each State and territory.
    (b) Plan.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to Congress a 
plan, in furtherance of subsection (a), for establishing at 
least one Weapons of Mass Destruction Civil Support Team in 
each State and territory that does not have such a team as of 
the date of the enactment of this Act. The plan shall include 
the following:
            (1) A schedule and budget for manning, training, 
        and equipping the new teams as rapidly as is possible 
        without jeopardizing the attainment of full 
        effectiveness by the new teams.
            (2) A discussion of whether the mission of the 
        Weapons of Mass Destruction Civil Support Teams should 
        be expanded and, if so, how.
    (c) Definitions.--For purposes of this section:
            (1) The term ``Weapons of Mass Destruction Civil 
        Support Team'' means a team of members of the reserve 
        components of the Armed Forces that is established 
        under section 12310(c) of title 10, United States Code, 
        in support of emergency preparedness programs to 
        prepare for or to respond to any emergency involving 
        the use of a weapon of mass destruction.
            (2) The term ``State and territory'' means each of 
        the several States, the District of Columbia, Puerto 
        Rico, Guam, and the Virgin Islands.

SEC. 1404. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN 
                    SUPPORTING HOMELAND SECURITY.

    (a) Report Required.--Not later than March 1, 2003, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on Department of Defense responsibilities, 
mission, and plans for military support of homeland security.
    (b) Contents of Report.--The report shall include, at a 
minimum, a discussion of the following:
            (1) The Department of Defense definition of its 
        homeland security mission, particularly with respect to 
        how it relates to providing military support to civil 
        authorities, managing the consequences of terrorist 
        attacks, and homeland defense, and the actions the 
        Department is taking to implement the homeland security 
        mission as so defined.
            (2) Changes in the roles, missions, 
        responsibilities, organization, and capabilities of the 
        following organizations in order to conduct their 
        homeland security support mission, and the reasons for 
        such changes:
                    (A) The Office of the Secretary of Defense.
                    (B) The Army, Navy, Air Force, and Marine 
                Corps.
                    (C) The Army National Guard and the Air 
                National Guard.
                    (D) The combatant commands of the 
                Department of Defense.
            (3) The relationship between the Department of 
        Defense, including its combatant commands, and the 
        following with regard to homeland security:
                    (A) Other departments and agencies of the 
                Federal Government.
                    (B) State and local governments.
                    (C) The National Guard and Reserve 
                components.
            (4) The current capability of the Department of 
        Defense to respond to terrorist attacks employing 
        chemical, biological, radiological, nuclear, high 
        explosive or cyberterrorism weapons against personnel 
        and critical infrastructure of the Department, 
        including identification of the goals of the Department 
        for being fully capable of responding to such attacks, 
        current deficiencies in that capability, the resources 
        required to achieve that capability, and a long-term 
        plan to reach that capability.
            (5) The roles, missions, and responsibilities of 
        the intelligence components of the Department of 
        Defense in support of its homeland security mission, 
        including the policies and plans for--
                    (A) collecting and analyzing information 
                related to homeland security;
                    (B) sharing that information with other 
                agencies of the Federal Government; and
                    (C) preparing threat and risk assessments 
                and issuing warnings.
            (6) A discussion of plans of the Department of 
        Defense for training, exercising, and preparing to 
        perform its homeland security mission, including--
                    (A) individual and collective training for 
                civilian and military personnel of the 
                Department involved in homeland security;
                    (B) integrated training with other agencies 
                of the Federal Government, and with State and 
                local governments, as appropriate;
                    (C) interagency exercises and simulations; 
                and
                    (D) the development of a permanent 
                ``terrorist opposing force'' capable of 
                challenging the Department's plans, policies, 
                and capabilities during training events and 
                exercises.
            (7) A discussion of how the Department of Defense 
        biological defense research program supports its 
        homeland security mission.
            (8) A discussion of the efforts by the Department 
        of Defense to develop, either within the Department or 
        through contracts with private entities, 
        anticyberterrorism technology, including an assessment 
        of whether and how such efforts should be increased.
            (9) An assessment of the need for and feasibility 
        of developing and fielding Department of Defense 
        regional chemical-biological incident response teams 
        across the United States, including options for 
        providing the resources and personnel necessary for 
        developing and fielding any such teams.
            (10) A discussion of the Department of Defense 
        plans and efforts to place new emphasis on the unique 
        operational demands associated with homeland security 
        while ensuring that defense of the United States 
        remains the primary mission of the Department of 
        Defense.
            (11) The resource constraints and legal impediments 
        to implementing any of the activities discussed under 
        paragraphs (1) through (10).

SEC. 1405. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE ASSISTANCE TO 
                    LOCAL FIRST RESPONDERS.

    It is the sense of Congress that the Secretary of Defense 
should, to the extent the Secretary considers appropriate and 
feasible, provide assistance, in accordance with otherwise 
applicable provisions of law, to entities that are local first 
responders for domestic terrorist incidents in order to assist 
those entities in improving their capabilities to respond to 
such incidents.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
          the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of appropriations 
          reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED OPERATIONS FOR 
                    THE WAR ON TERRORISM.

    In addition to any other amounts authorized to be 
appropriated by this Act, there is hereby authorized to be 
appropriated for the Department of Defense for fiscal year 
2003, subject to subsection (b), $10,000,000,000 only for the 
conduct of Operation Noble Eagle and Operation Enduring Freedom 
in continuation of the war on terrorism in accordance with the 
purposes stated in section 2(a) of the Authorization for Use of 
Military Force (Public Law 107-40; 50 U.S.C. 1541 note).

SEC. 1502. MOBILIZATION AND PERSONNEL.

    Of the amount authorized to be appropriated in section 
1501, $2,550,000,000 shall be available only for transfer 
(subject to sections 1507 and 1508) to fiscal year 2003 
military personnel accounts of the Department of Defense for 
the purpose of providing for the personnel and personnel 
support costs of the members of the Armed Forces who are 
participating in Operation Noble Eagle or Operation Enduring 
Freedom in continuation of the war on terrorism in accordance 
with the purposes referred to in section 1501(a).

SEC. 1503. OPERATIONS.

    Of the amount authorized to be appropriated in section 
1501, $4,270,000,000 shall be available only for transfer 
(subject to sections 1507 and 1508) to fiscal year 2003 
operation and maintenance accounts and working-capital funds of 
the Department of Defense for operating costs of the conduct of 
Operation Noble Eagle and Operation Enduring Freedom in 
continuation of the war on terrorism in accordance with the 
purposes referred to in section 1501(a).

SEC. 1504. EQUIPMENT REPLACEMENT AND ENHANCEMENT.

    Of the amount authorized to be appropriated in section 
1501, $1,000,000,000 shall be available only for transfer 
(subject to sections 1507 and 1508) to fiscal year 2003 
procurement and research, development, test, and evaluation 
accounts of the Department of Defense for--
            (1) emergency replacement of equipment and 
        munitions lost or expended in operations conducted as 
        part of Operation Noble Eagle or Operation Enduring 
        Freedom in continuation of the war on terrorism in 
        accordance with the purposes referred to in section 
        1501(a); or
            (2) enhancement of critical military capabilities 
        necessary to carry out operations as part of those 
        Operations in continuation of the war on terrorism in 
        accordance with those purposes.

SEC. 1505. CLASSIFIED ACTIVITIES.

    Of the amount authorized to be appropriated in section 
1501, $1,980,000,000 shall be available only for unspecified 
intelligence and classified activities carried out in support 
of Operation Noble Eagle or Operation Enduring Freedom in 
continuation of the war on terrorism in accordance with the 
purposes referred to in section 1501(a), and only by transfer 
(subject to sections 1507 and 1508) to fiscal year 2003 
accounts of the Department of Defense in amounts as follows:
            (1) To procurement accounts, $1,618,200,000.
            (2) To operation and maintenance accounts, 
        $301,600,000.
            (3) To research, development, test, and evaluation 
        accounts, $60,200,000.

SEC. 1506. PROCUREMENT OF MUNITIONS.

    Of the amount authorized to be appropriated in section 
1501, $200,000,000 shall be available only for the procurement 
of munitions for the support of Operation Noble Eagle or 
Operation Enduring Freedom in continuation of the war on 
terrorism in accordance with the purposes referred to in 
section 1501(a), and only by transfer (subject to sections 1507 
and 1508) to fiscal year 2003 procurement accounts of the 
Department of Defense in amounts as follows:
            (1) To accounts of the Army for the procurement of 
        ammunition $94,000,000.
            (2) To accounts of the Navy for the procurement of 
        weapons, $35,000,000.
            (3) To accounts of the Navy and Marine Corps for 
        the procurement of ammunition, $25,000,000.
            (4) To accounts of the Air Force for the 
        procurement of ammunition, $40,000,000.
            (5) To Defense-wide procurement accounts for 
        special operations forces, $6,000,000.

SEC. 1507. DISCRETIONARY RESTORATION OF AUTHORIZATIONS OF 
                    APPROPRIATIONS REDUCED FOR MANAGEMENT EFFICIENCIES.

    (a) Transfer Authority.--(1) The Secretary of Defense may, 
subject to section 1508, transfer up to a total of 
$1,000,000,000 of the amount authorized to be appropriated by 
section 1501 to Department of Defense accounts under titles I, 
II, and III that are reduced for savings described in paragraph 
(2) if and to the extent that the Secretary determines that 
such savings are not achievable.
    (2) The savings referred to in paragraph (1) are savings 
that are to be achieved from--
            (A) improved management of Department of Defense 
        contracts for the procurement of services; and
            (B) the deferral of expenditures on financial 
        management systems.
    (b) Relationship to Other Title XV Transfer Authorities.--
The total amount transferred under sections 1502 through 1506 
and under section 1507 may not exceed the total amount 
authorized to be appropriated by section 1501.

SEC. 1508. GENERAL PROVISIONS APPLICABLE TO TRANSFERS.

    (a) Merger of Transferred Amounts.--Amounts transferred 
pursuant to this title shall be merged with, and shall be 
available for the same purposes and the same period as, the 
account to which transferred.
    (b) Congressional Notice-and-Wait Requirement.--A transfer 
may not be made under section 1502, 1503, 1504, 1505, 1506, or 
1507 until the Secretary of Defense has submitted a notice in 
writing to the congressional defense committees of the proposed 
transfer and a period of 15 days has elapsed after the date 
such notice is received. Any such notice shall include 
specification of the amount of the proposed transfer, the 
account to which the transfer is to be made, and the purpose of 
the transfer.
    (c) Relationship to Other Transfer Authority.--The transfer 
authorities provided in this title are in addition to any other 
transfer authority available to the Secretary of Defense under 
any provision of any other title of this Act or under any other 
provision of law.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2003''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
          2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
          2001 project.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


                     Army: Inside the United States
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Anniston Army Depot..        $1,900,000
                                 Fort Rucker..........       $15,808,000
                                 Redstone Arsenal.....        $1,950,000
Alaska.........................  Fort Greely..........        $2,700,000
                                 Fort Richardson......       $20,011,000
                                 Fort Wainwright......      $139,906,000
Arizona........................  Fort Huachuca........       $10,400,000
                                 Yuma Proving Ground..        $4,500,000
California.....................  Fort Irwin...........        $2,522,000
Colorado.......................  Fort Carson..........        $9,698,000
District of Columbia...........  Walter Reed Army            $13,794,000
                                  Medical Center......
Georgia........................  Fort Benning.........       $86,250,000
                                 Fort Stewart/Hunter         $26,000,000
                                  Army Air Field......
Hawaii.........................  Schofield Barracks...      $191,000,000
Kansas.........................  Fort Leavenworth.....        $7,979,000
                                 Fort Riley...........       $81,095,000
Kentucky.......................  Blue Grass Army Depot        $5,500,000
                                 Fort Campbell........      $106,300,000
                                 Fort Knox............        $5,873,000
Louisiana......................  Fort Polk............       $37,620,000
Maryland.......................  Fort Detrick.........       $22,500,000
Massachusetts..................  Natick Research,             $4,100,000
                                  Development, and
                                  Engineering Center..
Missouri.......................  Fort Leonard Wood....       $24,993,000
New Jersey.....................  Picatinny Arsenal....        $7,500,000
New York.......................  Fort Drum............       $18,300,000
                                 United States                $4,991,000
                                  Military Academy,
                                  West Point..........
North Carolina.................  Fort Bragg...........       $99,632,000
Oklahoma.......................  Fort Sill............       $39,652,000
Pennsylvania...................  Letterkenny Army             $1,550,000
                                  Depot...............
South Carolina.................  Fort Jackson.........        $3,051,000
Texas..........................  Fort Bliss...........        $5,200,000
                                 Fort Hood............       $83,061,000
Virginia.......................  Fort Eustis..........        $4,133,000
                                 Fort Lee.............        $7,103,000
Washington.....................  Fort Lewis...........       $56,195,000
                                 Yakima Training              $3,000,000
                                  Center.
                                                       -----------------
                                   Total..............    $1,155,767,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(2), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:


                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  Supreme Headquarters,       $13,600,000
                                  Allied Powers Europe..
Germany........................  Area Support Group,         $17,200,000
                                  Bamberg.
                                 Campbell Barracks......      $8,300,000
                                 Coleman Barracks.......      $1,350,000
                                 Darmstadt..............      $3,500,000
                                 Grafenwoehr............     $69,866,000
                                 Landstuhl..............      $2,400,000
                                 Mannheim...............     $42,000,000
                                 Schweinfurt............      $2,000,000
Italy..........................  Vicenza................     $34,700,000
Korea..........................  Camp Carroll...........     $20,000,000
                                 Camp Castle............      $6,800,000
                                 Camp Hovey.............     $25,000,000
                                 Camp Humphreys.........     $36,000,000
                                 Camp Henry.............     $10,200,000
                                 Camp Tango.............     $12,600,000
                                 K16 Airfield...........     $40,000,000
Qatar..........................  Qatar..................      $8,600,000
                                                         ---------------
                                 Total..................    $354,116,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(3), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installation and location, and in the amount, set forth in the 
following table:


                       Army: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Unspecified Worldwide..      $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may construct 
or acquire family housing units (including land acquisition and 
supporting facilities) at the installations, for the purposes, 
and in the amounts set forth in the following table:


                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  38 Units...................   $17,752,000
Arizona.................................  Yuma Proving Ground........  33 Units...................    $6,100,000
Korea...................................  Yongsan....................  10 Units...................    $3,100,000
                                                                                                   -------------
                                            Total:...................                                $26,952,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(6)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $15,653,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2104(a)(6)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $239,751,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2002, for military construction, land acquisition, and military 
family housing functions of the Department of the Army in the 
total amount of $3,104,176,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $949,567,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $354,116,000.
            (3) For military construction projects at 
        unspecified worldwide locations authorized by section 
        2101(c), $4,000,000.
            (4) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $21,550,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $160,313,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $282,356,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $1,117,274,000.
            (7) For the construction of phase 2 of Saddle 
        Access Road, Pohakoula Training Facility, Hawaii, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 
        (division B of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001, as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-389), 
        $13,000,000.
            (8) For the construction of phase 3 of a barracks 
        complex, Butner Road, at Fort Bragg, North Carolina, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2001 
        (division B of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001, as enacted into 
        law by Public Law 106-398; 114 Stat. 1654A-389), 
        $50,000,000.
            (9) For the construction of phase 2 of a barracks 
        complex, D Street, at Fort Richardson, Alaska, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1280), 
        $21,000,000.
            (10) For the construction of phase 2 of a barracks 
        complex, Nelson Boulevard, at Fort Carson, Colorado, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1280), as 
        amended by section 2105 of this Act, $42,000,000.
            (11) For the construction of phase 2 of a basic 
        combat trainee complex at Fort Jackson, South Carolina, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1280), as 
        amended by section 2105 of this Act, $39,000,000.
            (12) For the construction of phase 2 of a barracks 
        complex, 17th and B Streets, at Fort Lewis, Washington, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1280), 
        $50,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1), (2), and (3) of subsection (a);
            (2) $18,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        barracks complex, Main Post, at Fort Benning, Georgia);
            (3) $100,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        barracks complex, Capron Avenue, at Schofield Barracks, 
        Hawaii);
            (4) $13,200,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        combined arms collective training facility at Fort 
        Riley, Kansas);
            (5) $50,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        barracks complex, Range Road, at Fort Campbell, 
        Kentucky); and
            (6) $25,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        consolidated maintenance complex at Fort Sill, 
        Oklahoma).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (12) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by the following:
            (1) $18,596,000, which represents savings resulting 
        from adjustments to foreign currency exchange rates for 
        military construction, military family housing 
        construction, and military family housing support 
        outside the United States.
            (2) $29,350,000, which represents savings resulting 
        from adjustments in the accounting of civilian 
        personnel benefits.
            (3) $16,740,000, which represents savings resulting 
        from reductions in supervision, inspection, and 
        overhead costs.
            (4) $18,000,000, which represents savings resulting 
        from lower-than-expected inflation.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2002 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the 
Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat. 1281) is amended--
            (1) in the item relating to Fort Carson, Colorado, 
        by striking ``$66,000,000'' in the amount column and 
        inserting ``$67,000,000''; and
            (2) in the item relating to Fort Jackson, South 
        Carolina, by striking ``$65,650,000'' in the amount 
        column and inserting ``$68,650,000''.
    (b) Conforming Amendments.--Section 2104(b) of that Act 
(115 Stat. 1284) is amended--
            (1) in paragraph (3), by striking ``$41,000,000'' 
        and inserting ``$42,000,000''; and
            (2) in paragraph (4), by striking ``$36,000,000'' 
        and inserting ``$39,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2001 PROJECT.

    The table in section 2101(b) of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 
2001, as enacted into law by Public Law 106-398; 114 Stat. 
1654A-390) is amended by striking ``Camp Page'' in the 
installation or location column and inserting ``Camp Stanley''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
          2002 projects.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), the Secretary of the Navy may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


                                         Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
                     State                              Installation or location                  Amount
----------------------------------------------------------------------------------------------------------------
Arizona........................................  Marine Corps Air Station, Yuma........               $3,000,000
California.....................................  Auxiliary Landing Field, San Diego                   $6,150,000
                                                  (San Clemente Island)................
                                                 Marine Corps Air-Ground Combat Center,              $39,470,000
                                                  Twentynine Palms.....................
                                                 Marine Corps Air Station, Camp                      $11,930,000
                                                  Pendleton............................
                                                 Marine Corps Air Station, Miramar.....              $12,210,000
                                                 Marine Corps Base, Camp Pendleton.....              $84,040,000
                                                 Marine Corps Logistics Base, Barstow..               $4,450,000
                                                 Naval Air Station, Lemoore............              $35,855,000
                                                 Naval Air Warfare Center, Point Mugu,                $6,760,000
                                                  San Nicholas Island..................
                                                 Naval Air Warfare Center, China Lake..              $10,100,000
                                                 Naval Construction Training Center,                 $10,170,000
                                                  Port Hueneme.........................
                                                 Naval Post Graduate School, Monterey..               $9,020,000
                                                 Naval Station, San Diego..............              $12,210,000
Connecticut....................................  Naval Submarine Base, New London......               $7,880,000
District of Columbia...........................  Marine Corps Barracks.................               $3,700,000
                                                 Naval District, Washington............               $2,690,000
Florida........................................  Naval Air Station, Jacksonville.......              $13,342,000
                                                 Naval Air Station, Pensacola..........                 $990,000
                                                 Naval School Explosive Ordnance                      $6,350,000
                                                  Detachment, Eglin....................
                                                 Naval Station, Mayport................               $1,900,000
                                                 Naval Surface Warfare Center Coastal                $10,700,000
                                                  Systems Station, Panama City.........
Georgia........................................  Naval Submarine Base, Kings Bay.......               $1,580,000
Hawaii.........................................  Marine Corps Base.....................               $9,500,000
                                                 Naval Shipyard, Pearl Harbor..........              $18,500,000
                                                 Naval Station, Pearl Harbor...........              $34,090,000
Illinois.......................................  Naval Training Center, Great Lakes....              $83,190,000
Indiana........................................  Naval Surface Warfare Center, Crane...              $11,610,000
Maine..........................................  Naval Air Station, Brunswick..........               $9,830,000
                                                 Naval Shipyard, Kittery-Portsmouth....              $15,200,000
Maryland.......................................  Naval Air Facility, Andrews Air Force                $9,680,000
                                                  Base.................................
                                                 Naval Surface Warfare Center,                       $12,900,000
                                                  Carderock Division...................
                                                 United States Naval Academy...........               $1,800,000
Mississippi....................................  Naval Air Station, Meridian...........               $2,850,000
                                                 Naval Construction Battalion Center,                 $5,460,000
                                                  Gulfport.............................
                                                 Naval Station, Pascagoula.............              $25,305,000
New Jersey.....................................  Naval Air Warfare Center, Lakehurst...               $5,200,000
                                                 Naval Weapons Station, Earle..........               $5,600,000
North Carolina.................................  Marine Corps Air Station, Cherry Point               $6,040,000
                                                 Marine Corps Air Station, New River...               $6,920,000
                                                 Marine Corps Base, Camp Lejeune.......               $9,570,000
Rhode Island...................................  Naval Station, Newport................              $15,900,000
South Carolina.................................  Marine Corps Air Station, Beaufort....              $13,700,000
                                                 Marine Corps Recruit Depot, Parris                  $10,490,000
                                                  Island...............................
                                                 Naval Weapons Station, Charleston.....               $5,740,000
Texas..........................................  Naval Air Station, Corpus Christi.....               $7,150,000
                                                 Naval Station, Ingleside..............               $5,000,000
                                                 Naval Air Station, Kingsville.........               $6,210,000
Virginia.......................................  Marine Corps Combat Development                     $24,864,000
                                                  Command, Quantico....................
                                                 Naval Air Station Oceana..............              $16,490,000
                                                 Naval Amphibious Base, Little Creek...               $9,770,000
                                                 Naval Shipyard, Norfolk, Portsmouth...              $36,470,000
                                                 Naval Station, Norfolk................             $168,965,000
                                                 Naval Support Activity, Norfolk.......               $2,260,000
                                                 Naval Surface Warfare Center, Dahlgren              $15,830,000
                                                 Naval Weapons Station, Yorktown.......              $15,020,000
Washington.....................................  Naval Air Station, Whidbey Island.....              $17,580,000
                                                 Naval Magazine, Indian Island.........               $4,030,000
                                                 Naval Station, Bremerton..............              $45,870,000
                                                 Naval Submarine Base, Bangor..........              $22,310,000
                                                 Naval Undersea Warfare Center, Keyport               $7,500,000
                                                 Puget Sound Naval Shipyard, Bremerton.              $57,132,000
                                                 Strategic Weapons Facility, Bangor....               $7,340,000
Various Locations..............................  Host Nation Infrastructure............               $1,000,000
                                                                                        ------------------------
                                                   Total...............................           $1,084,363,000
----------------------------------------------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(2), the Secretary of the Navy may acquire real property 
and carry out military construction projects for the locations 
outside the United States, and in the amounts, set forth in the 
following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $25,970,000
                                  Bahrain...............
Cuba...........................  Naval Station,               $4,280,000
                                  Guantanamo Bay........
Diego Garcia...................  Diego Garcia, Naval         $11,090,000
                                  Support Facility......
Greece.........................  Naval Support Activity,      $6,800,000
                                  Joint Headquarters
                                  Command, Larissa......
Guam...........................  Commander, United           $13,400,000
                                  States Naval Forces,
                                  Guam..................
Iceland........................  Naval Air Station,          $14,920,000
                                  Keflavik.
Italy..........................  Naval Air Station,          $55,660,000
                                  Sigonella.
Spain..........................  Naval Station, Rota....     $18,700,000
                                                         ---------------
                                   Total................    $150,820,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may construct 
or acquire family housing units (including land acquisition and 
supporting facilities) at the installations, for the purposes, 
and in the amounts set forth in the following table:


                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country              Installation or location             Purpose                Amount
----------------------------------------------------------------------------------------------------------------
California.............................  Naval Air Station, Lemoore  178 Units.................      $40,981,000
                                         Twentynine Palms..........  76 Units..................      $19,425,000
Connecticut............................  Naval Submarine Base, New   100 Units.................      $24,415,000
                                          London...................
Florida................................  Naval Station, Mayport....  1 Unit....................         $329,000
Hawaii.................................  Marine Corps Base, Kaneohe  65 Units..................      $24,797,000
                                          Bay......................
Maine..................................  Naval Air Station,          22 Units..................       $5,000,000
                                          Brunswick................
Mississippi............................  Naval Air Station,          56 Units..................       $9,755,000
                                          Meridian.................
North Carolina.........................  Marine Corps Base, Camp     317 Units.................      $43,650,000
                                          Lejeune..................
Virginia...............................  Marine Corps Base,          290 Units.................      $41,843,000
                                          Quantico.................
 United Kingdom........................  Joint Maritime Facility,    62 Units..................      $18,524,000
                                          St. Mawgan...............
                                                                                                ----------------
                                                                       Total...................     $228,719,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriation in section 
2204(a)(5)(A), the Secretary of the Navy may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$11,281,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(5)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $139,468,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2002, for military construction, land acquisition, and military 
family housing functions of the Department of the Navy in the 
total amount of $2,576,381,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $1,025,598,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $148,250,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $26,187,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $95,570,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $379,468,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $867,788,000.
            (6) For replacement of a pier at Naval Station, 
        Norfolk, Virginia, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2002 (division B of Public Law 107-107; 115 Stat. 
        1287), as amended by section 2205 of this Act, 
        $33,520,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $10,645,000 (the balance of the amount 
        authorized under section 2201(a) for a bachelors 
        enlisted quarters shipboard ashore, Naval Station, 
        Pascagoula, Mississippi);
            (3) $48,120,000 (the balance of the amount 
        authorized under section 2201(a) for a bachelors 
        enlisted quarters shipboard ashore, Naval Station, 
        Norfolk, Virginia); and
            (4) $2,570,000 (the balance of the amount 
        authorized under section 2201(b) for a quality of life 
        support facility, Naval Air Station Sigonella, Italy).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (6) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by the following:
            (1) $3,992,000, which represents savings resulting 
        from adjustments to foreign currency exchange rates for 
        military construction, military family housing 
        construction, and military family housing support 
        outside the United States.
            (2) $10,470,000, which represents savings resulting 
        from adjustments in the accounting of civilian 
        personnel benefits.
            (3) $15,017,000, which represents savings resulting 
        from reductions in supervision, inspection, and 
        overhead costs.
            (4) $14,000,000, which represents savings resulting 
        from lower-than-expected inflation.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2002 PROJECTS.

    (a) Military Construction Project at Naval Station, 
Norfolk, Virginia.--The table in section 2201(a) of the 
Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat. 1286) is amended--
            (1) in the item relating to Naval Station, Norfolk, 
        Virginia, by striking ``$139,270,000'' in the amount 
        column and inserting ``$139,550,000''; and
            (2) by striking the amount identified as the total 
        in the amount column and inserting ``$1,059,030,000''.
    (b) Military Family Housing at Quantico, Virginia.--The 
table in section 2202(a) of that Act (115 Stat. 1288) is 
amended in the item relating to Marine Corps Combat Development 
Command, Quantico, Virginia, by striking ``60 Units'' in the 
purpose column and inserting ``39 Units''.
    (c) Conforming Amendment.--Section 2204(b)(2) of that Act 
(115 Stat. 1289) is amended by striking ``$33,240,000'' and 
inserting ``$33,520,000''.



                         TITLE XXIII--AIR FORCE



Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
          construction of public road near Aviano Air Base, Italy, to 
          replace road closed for force protection purposes.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
                    PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(1), the Secretary of the Air Force may acquire real 
property and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alaska.........................  Clear Air Station......     $14,400,000
                                 Eielson Air Force Base.     $41,100,000
Arizona........................  Davis-Monthan Air Force     $19,270,000
                                  Base.
                                 Luke Air Force Base....     $13,000,000
Arkansas.......................  Little Rock Air Force       $25,600,000
                                  Base.
California.....................  Beale Air Force Base...     $11,740,000
                                 Travis Air Force Base..     $33,469,000
                                 Vandenberg Air Force        $10,500,000
                                  Base.
Colorado.......................  Buckley Air National        $17,700,000
                                  Guard Base.
                                 Peterson Air Force Base      $5,500,000
                                 Schriever Air Force          $5,700,000
                                  Base.
                                 United States Air Force      $4,200,000
                                  Academy.
District of Columbia...........  Bolling Air Force Base.      $5,000,000
Florida........................  Avon Park Air Force          $2,000,000
                                  Range.
                                 Elgin Air Force Base...      $4,250,000
                                 Hurlburt Field.........     $15,000,000
                                 MacDill Air Force Base.     $20,000,000
Georgia........................  Robins Air Force Base..     $29,400,000
Hawaii.........................  Hickam Air Force Base..      $1,350,000
Kansas.........................  McConnell Air Force          $7,500,000
                                  Base.
Louisiana......................  Barksdale Air Force         $22,900,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $9,600,000
Massachusetts..................  Hanscom Air Force Base.      $7,700,000
Mississippi....................  Keesler Air Force Base.     $22,000,000
Nebraska.......................  Offutt Air Force Base..     $11,000,000
Nevada.........................  Nellis Air Force Base..     $56,850,000
New Jersey.....................  McGuire Air Force Base.     $29,831,000
New Mexico.....................  Cannon Air Force Base..      $4,650,000
                                 Holloman Air Force Base      $4,650,000
                                 Kirtland Air Force Base     $21,900,000
North Carolina.................  Pope Air Force Base....      $9,700,000
North Dakota...................  Minot Air Force Base...      $5,000,000
Ohio...........................  Wright-Patterson Air        $25,000,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $14,800,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $6,800,000
South Dakota...................  Ellsworth Air Force         $13,200,000
                                  Base.
Texas..........................  Goodfellow Air Force        $10,600,000
                                  Base.
                                 Lackland Air Force Base     $37,300,000
                                 Lackland Air Force Base     $10,000,000
                                  (Camp Bullis).........
                                 Laughlin Air Force Base      $8,000,000
                                 Sheppard Air Force Base     $16,000,000
Utah...........................  Hill Air Force Base....     $14,500,000
Virginia.......................  Langley Air Force Base.     $70,940,000
                                                         ---------------
                                 Total..................    $724,400,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(2), the Secretary of the Air Force may acquire real 
property and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Diego Garcia...................  Diego Garcia...........     $17,100,000
Germany........................  Ramstein Air Force Base     $71,783,000
Guam...........................  Andersen Air Force Base     $31,000,000
Italy..........................  Aviano Air Force Base..      $6,600,000
Japan..........................  Kadena Air Force Base..      $6,000,000
Korea..........................  Osan Air Base..........     $15,100,000
Spain..........................  Naval Station, Rota....     $31,818,000
Turkey.........................  Incirlik Air Force Base      $1,550,000
United Kingdom.................  Royal Air Force,            $19,000,000
                                  Fairford.
                                 Royal Air Force,            $13,400,000
                                  Lakenheath.
Wake Island....................  Wake Island............     $24,900,000
                                                         ---------------
                                   Total................    $238,251,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(3), the Secretary of the Air Force may acquire real 
property and carry out military construction projects for the 
installation and location, and in the amount, set forth in the 
following table:

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Classified Location....     $24,993,000
                                                         ---------------
                                   Total................     $24,993,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may 
construct or acquire family housing units (including land 
acquisition and supporting facilities) at the installations, 
for the purposes, and in the amounts set forth in the following 
table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country              Installation or location             Purpose                Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................  Luke Air Force Base.......  140 Units.................      $18,954,000
California.............................  Travis Air Force Base.....  110 Units.................      $24,320,000
Colorado...............................  Peterson Air Force Base...  2 Units...................         $959,000
                                         United States Air Force     71 Units..................      $12,424,000
                                          Academy..................
Delaware...............................  Dover Air Force Base......  112 Units.................      $19,615,000
Florida................................  Eglin Air Force Base......  Housing Office............         $597,000
                                         Eglin Air Force Base......  134 Units.................      $15,906,000
                                         MacDill Air Force Base....  96 Units..................      $18,086,000
Hawaii.................................  Hickam Air Force Base.....  96 Units..................      $29,050,000
Idaho..................................  Mountain Home Air Force     95 Units..................      $24,392,000
                                          Base.....................
Kansas.................................  McConnell Air Force Base..  Housing Maintenance              $1,514,000
                                                                      Facility.................
Maryland...............................  Andrews Air Force Base....  53 Units..................       $9,838,000
                                         Andrews Air Force Base....  52 Units..................       $8,807,000
Mississippi............................  Columbus Air Force Base...  Housing Office............         $412,000
                                         Keesler Air Force Base....  117 Units.................      $16,505,000
Missouri...............................  Whiteman Air Force Base...  97 Units..................      $17,107,000
Montana................................  Malmstrom Air Force Base..  18 Units..................       $4,717,000
New Mexico.............................  Holloman Air Force Base...  101 Units.................      $20,161,000
North Carolina.........................  Pope Air Force Base.......  Housing Maintenance                $991,000
                                                                      Facility.................
                                         Seymour Johnson Air Force   126 Units.................      $18,615,000
                                          Base.....................
North Dakota...........................  Grand Forks Air Force Base  150 Units.................      $30,140,000
                                         Minot Air Force Base......  112 Units.................      $21,428,000
                                         Minot Air Force Base......  102 Units.................      $20,315,000
Oklahoma...............................  Vance Air Force Base......  59 Units..................      $11,423,000
South Dakota...........................  Ellsworth Air Force Base..  Housing Maintenance                $447,000
                                                                      Facility.................
                                         Ellsworth Air Force Base..  22 Units..................       $4,794,000
Texas..................................  Dyess Air Force Base......  85 Units..................      $14,824,000
                                         Randolph Air Force Base...  Housing Maintenance                $447,000
                                                                      Facility.................
                                         Randolph Air Force Base...  112 Units.................      $14,311,000
Virginia...............................  Langley Air Force Base....  Housing Office............       $1,193,000
Germany................................  Ramstein Air Force Base...  19 Units..................       $8,534,000
Korea..................................  Osan Air Base.............  113 Units.................      $35,705,000
                                         Osan Air Base.............  Housing Supply Warehouse..         $834,000
United Kingdom.........................  Royal Air Force,            Housing Office and               $2,203,000
                                          Lakenheath...............   Maintenance Facility.....
                                                                    -----------------------------
                                         Total.....................                                 $429,568,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$34,188,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2304(a)(6)(A), the Secretary of the 
Air Force may improve existing military family housing units in 
an amount not to exceed $226,068,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2002, for military construction, land acquisition, and military 
family housing functions of the Department of the Air Force in 
the total amount of $2,633,738,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $717,300,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $238,251,000.
            (3) For military construction projects at 
        unspecified worldwide locations authorized by section 
        2301(c), $24,993,000.
            (4) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $11,500,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $82,820,000.
            (6) For military housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $689,824,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $869,050,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2301 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1), (2) and (3) of subsection (a); 
        and
            (2) $7,100,000 (the balance of the amount 
        authorized under section 2301(a) for construction of a 
        consolidated base engineer complex at Altus Air Force 
        Base, Oklahoma).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (6) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by the following:
            (1) $19,063,000, which represents savings resulting 
        from adjustments to foreign currency exchange rates for 
        military construction, military family housing 
        construction, and military family housing support 
        outside the United States.
            (2) $15,306,000, which represents savings resulting 
        from reductions in supervision, inspection, and 
        overhead costs.
            (3) $16,000,000, which represents savings resulting 
        from lower-than-expected inflation.

SEC. 2305. AUTHORITY FOR USE OF MILITARY CONSTRUCTION FUNDS FOR 
                    CONSTRUCTION OF PUBLIC ROAD NEAR AVIANO AIR BASE, 
                    ITALY, TO REPLACE ROAD CLOSED FOR FORCE PROTECTION 
                    PURPOSES.

    (a) Authority To Use Funds.--Using amounts authorized to be 
appropriated by section 2304(a)(2), the Secretary of the Air 
Force may carry out a project to provide a public road, and 
associated improvements, to replace a public road adjacent to 
Aviano Air Base, Italy, that has been closed for force 
protection purposes.
    (b) Scope of Authority.--(1) The authority of the Secretary 
to carry out the project referred to in subsection (a) shall 
include authority as follows:
            (A) To acquire property for the project for 
        transfer to a host nation authority.
            (B) To provide funds to a host nation authority to 
        acquire property for the project.
            (C) To make a contribution to a host nation 
        authority for purposes of carrying out the project.
            (D) To provide vehicle and pedestrian access to 
        landowners affected by the project.
    (2) The acquisition of property using the authority in 
subparagraph (A) or (B) of paragraph (1) may be made regardless 
of whether or not ownership of such property will vest in the 
United States.
    (c) Inapplicability of Certain Real Property Management 
Requirement.--Section 2672(a)(1)(B) of title 10, United States 
Code, shall not apply with respect to any acquisition of 
interests in land for purposes of the project authorized by 
subsection (a).

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 
          2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
          1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
          1997 project.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(1), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Chemical Demilitarization......  Pine Bluff, Arkansas...     $18,937,000
Defense Intelligence Agency....  Bolling Air Force Base,    $111,958,000
                                  District of Columbia..
Defense Logistics Agency.......  Defense Supply Center,       $5,500,000
                                  Richmond, Virginia....
                                 Naval Air Station, New       $9,500,000
                                  Orleans, Louisiana....
                                 Travis Air Force Base,      $16,000,000
                                  California............
Defense Threat Reduction Agency  Fort Belvoir, Virginia.     $76,388,000
Department of Defense            Fort Bragg, North            $2,036,000
 Dependents Schools............   Carolina..............
                                 Fort Jackson, South          $2,506,000
                                  Carolina..............
                                 Marine Corps Base, Camp     $12,138,000
                                  Lejeune, North
                                  Carolina..............
                                 Marine Corps Base,           $1,418,000
                                  Quantico, Virginia....
                                 United States Military       $4,347,000
                                  Academy, West Point,
                                  New York..............
Joint Chiefs of Staff..........  Peterson Air Force          $25,000,000
                                  Base, Colorado.
Missile Defense Agency.........  Kauai, Hawaii..........     $23,400,000
National Security Agency.......  Fort Meade, Maryland...      $4,484,000
Special Operations Command.....  Dam Neck, Virginia.....      $3,900,000
                                 Fort Bragg, North           $30,800,000
                                  Carolina.
                                 Hurlburt Field, Florida     $11,100,000
                                 Naval Amphibious Base,      $14,300,000
                                  Little Creek, Virginia
                                 Stennis Space Center,        $5,000,000
                                  Mississippi.
TRICARE Management Activity....  Elmendorf Air Force         $10,400,000
                                  Base, Alaska..........
                                 Hickam Air Force Base,       $2,700,000
                                  Hawaii.
Washington Headquarters          District of Columbia...      $2,500,000
 Services......................
                                                         ---------------
                                   Total................    $394,312,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Andersen Air Force          $17,586,000
                                  Base, Guam............
                                 Naval Forces Marianas        $6,000,000
                                  Islands, Guam.........
                                 Naval Station, Rota,        $23,400,000
                                  Spain.................
                                 Royal Air Force,            $17,000,000
                                  Fairford, United
                                  Kingdom...............
                                 Yokota Air Base, Japan.     $23,000,000
Department of Defense            Kaiserslautern, Germany        $957,000
 Dependents Schools............
                                 Lajes Field, Azores,         $1,192,000
                                  Portugal..............
                                 Seoul, Korea...........     $31,683,000
                                 Supreme Headquarters,        $1,573,000
                                  Allied Powers Europe,
                                  Belgium...............
                                 Spangdahlem Air Base,          $997,000
                                  Germany...............
                                 Vicenza, Italy.........      $2,117,000
TRICARE Management Activity....  Naval Support Activity,     $41,449,000
                                  Naples, Italy.........
                                 Spangdahlem Air Base,       $39,629,000
                                  Germany...............
                                                         ---------------
                                   Total................    $206,583,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(8)(A), the Secretary of 
Defense may improve existing military family housing units in 
an amount not to exceed $5,480,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(6), the Secretary of Defense 
may carry out energy conservation projects under section 2865 
of title 10, United States Code, in the amount of $34,531,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2002, for military construction, land acquisition, and military 
family housing functions of the Department of Defense (other 
than the military departments) in the total amount of 
$1,434,795,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $357,712,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(b), 
        $206,583,000.
            (3) For unspecified minor construction projects 
        under section 2805 of title 10, United States Code, 
        $16,293,000.
            (4) For contingency construction projects of the 
        Secretary of Defense under section 2804 of title 10, 
        United States Code, $10,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $45,532,000.
            (6) For energy conservation projects authorized by 
        section 2403, $34,531,000.
            (7) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment 
        Act of 1990 (part A of title XXIX of Public Law 101-
        510; 10 U.S.C. 2687 note), $565,138,000.
            (8) For military family housing functions:
                    (A) For improvement of military family 
                housing and facilities, $5,480,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $42,432,000.
                    (C) For credit to the Department of Defense 
                Family Housing Improvement Fund established by 
                section 2883(a)(1) of title 10, United States 
                Code, $2,000,000.
            (9) For payment of a claim against the Hospital 
        Replacement project at Elmendorf Air Force Base, 
        Alaska, $10,400,000.
            (10) For the construction of phase 4 of an 
        ammunition demilitarization facility at Pueblo Chemical 
        Activity, Colorado, authorized by section 2401(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 1997 (division B of Public Law 104-201; 110 Stat. 
        2775), as amended by section 2406 of the Military 
        Construction Authorization Act for Fiscal Year 2000 
        (division B of Public Law 106-65; 113 Stat. 839) and 
        section 2407 of this Act, $38,000,000.
            (11) For the construction of phase 5 of an 
        ammunition demilitarization facility at Newport Army 
        Depot, Indiana, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        1999 (division B of Public Law 105-261; 112 Stat. 
        2193), as amended by section 2406 of this Act, 
        $61,494,000.
            (12) For the construction of phase 5 of an 
        ammunition demilitarization facility at Aberdeen 
        Proving Ground, Maryland, authorized by section 2401(a) 
        of the Military Construction Authorization Act for 
        Fiscal Year 1999 (division B of Public Law 105-261; 112 
        Stat. 2193), as amended by section 2406 of the Military 
        Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1299), 
        $20,600,000.
            (13) For the construction of phase 3 of an 
        ammunition demilitarization facility at Blue Grass Army 
        Depot, Kentucky, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2000 (division B of Public Law 106-65; 113 Stat. 835), 
        as amended by section 2405 of the Military Construction 
        Authorization Act for Fiscal Year 2002 (division B of 
        Public Law 107-107; 115 Stat. 1298) and section 2405 of 
        this Act, $10,300,000.
            (14) For the construction of phase 3 of an 
        ammunition demilitarization support facility at Blue 
        Grass Army Depot, Kentucky, authorized by section 
        2401(a) of the Military Construction Authorization Act 
        for Fiscal Year 2000 (division B of Public Law 106-65; 
        113 Stat. 835), $8,300,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a); and
            (2) $26,200,000 (the balance of the amount 
        authorized under section 2401(a) for the construction 
        of the Defense Threat Reduction Center, Fort Belvoir, 
        Virginia).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (14) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by the following:
            (1) $2,976,000, which represents savings resulting 
        from adjustments to foreign currency exchange rates for 
        military construction, military family housing 
        construction, and military family housing support 
        outside the United States.
            (2) $37,000, which represents savings resulting 
        from adjustments in the accounting of civilian 
        personnel benefits.
            (3) $7,414,000, which represents savings resulting 
        from reductions in supervision, inspection, and 
        overhead costs.
            (4) $7,000,000, which represents savings resulting 
        from lower-than-expected inflation.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2000 PROJECT.

    (a) Modification.--The table in section 2401(a) of the 
Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 835), as amended by 
section 2405 of the Military Construction Authorization Act for 
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
1298), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Blue Grass 
        Army Depot, Kentucky, by striking ``$254,030,000'' in 
        the amount column and inserting ``$290,325,000''; and
            (2) by striking the amount identified as the total 
        in the amount column and inserting ``$748,245,000''.
    (b) Conforming Amendment.--Section 2405(b)(3) of the 
Military Construction Authorization Act for Fiscal Year 2000 
(113 Stat. 839), as so amended, is further amended by striking 
``$231,230,000'' and inserting ``$267,525,000''.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    1999 PROJECT.

    (a) Modification.--The table in section 2401(a) of the 
Military Construction Authorization Act for Fiscal Year 1999 
(division B of Public Law 105-261; 112 Stat. 2193), as amended 
by section 2406 of the Military Construction Authorization Act 
for Fiscal Year 2002 (division B of Public Law 107-107; 115 
Stat. 1299), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization, in the item relating to Newport Army 
        Depot, Indiana, by striking ``$191,550,000'' in the 
        amount column and inserting ``$293,853,000''; and
            (2) by striking the amount identified as the total 
        in the amount column and inserting ``$829,919,000''.
    (b) Conforming Amendment.--Section 2404(b)(2) of the 
Military Construction Authorization Act for Fiscal Year 1999 
(112 Stat. 2196) is amended by striking ``$162,050,000'' and 
inserting ``$264,353,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    1997 PROJECT.

    (a) Modification.--The table in section 2401(a) of the 
Military Construction Authorization Act for Fiscal Year 1997 
(division B of Public Law 104-201; 110 Stat. 2775), as amended 
by section 2406 of the Military Construction Authorization Act 
for Fiscal Year 2000 (division B of Public Law 106-65; 113 
Stat. 839), is further amended--
            (1) under the agency heading relating to Chemical 
        Demilitarization Program, in the item relating to 
        Pueblo Chemical Activity, Colorado, by striking 
        ``$203,500,000'' in the amount column and inserting 
        ``$261,000,000''; and
            (2) by striking the amount identified as the total 
        in the amount column and inserting ``$607,454,000''.
    (b) Conforming Amendment.--Section 2406(b)(2) of the 
Military Construction Authorization Act for Fiscal Year 1997 
(110 Stat. 2779), as so amended, is further amended by striking 
``$203,500,000'' and inserting ``$261,000,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the 
North Atlantic Treaty Organization Security Investment program 
as provided in section 2806 of title 10, United States Code, in 
an amount not to exceed the sum of the amount authorized to be 
appropriated for this purpose in section 2502 and the amount 
collected from the North Atlantic Treaty Organization as a 
result of construction previously financed by the United 
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2002, for contributions by the Secretary of Defense under 
section 2806 of title 10, United States Code, for the share of 
the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment program 
authorized by section 2501, in the amount of $168,200,000.
    (b) Adjustment.--The total amount authorized to be 
appropriated pursuant to subsection (a) is the amount specified 
in such subsection, reduced by $1,000,000, which represents 
savings resulting from lower-than-expected inflation.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
                    ACQUISITION PROJECTS.

    (a) In General.--There are authorized to be appropriated 
for fiscal years beginning after September 30, 2002, for the 
costs of acquisition, architectural and engineering services, 
and construction of facilities for the Guard and Reserve 
Forces, and for contributions therefor, under chapter 1803 of 
title 10, United States Code (including the cost of acquisition 
of land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $237,236,000; and
                    (B) for the Army Reserve, $99,399,000.
            (2) For the Department of the Navy, for the Naval 
        and Marine Corps Reserve, $75,801,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $204,215,000; and
                    (B) for the Air Force Reserve, $85,649,000.
    (b) Adjustment.--The total amount authorized to be 
appropriated pursuant to subsection (a)(1)(A) is the amount 
specified in such subsection, reduced by $1,000,000, which 
represents savings resulting from lower-than-expected 
inflation.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
          projects.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
                    SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except 
as provided in subsection (b), all authorizations contained in 
titles XXI through XXVI for military construction projects, 
land acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor) shall expire on the later of--
            (1) October 1, 2005; or
            (2) the date of the enactment of an Act authorizing 
        funds for military construction for fiscal year 2006.
    (b) Exception.--Subsection (a) shall not apply to 
authorizations for military construction projects, land 
acquisition, family housing projects, and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor) for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2005; or
            (2) the date of the enactment of an Act authorizing 
        funds for fiscal year 2006 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, and contributions to the North Atlantic 
        Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000 
                    PROJECTS.

    (a) Extension of Certain Projects.--Notwithstanding section 
2701 of the Military Construction Authorization Act for Fiscal 
Year 2000 (division B of Public Law 106-65; 113 Stat. 841), 
authorizations set forth in the tables in subsection (b), as 
provided in section 2302 or 2601 of that Act, shall remain in 
effect until October 1, 2003, or the date of the enactment of 
an Act authorizing funds for military construction for fiscal 
year 2004, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:


                               Air Force: Extension of 2000 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units)......................
Texas.................................  Lackland Air Force Base..  Dormitory....................      $5,300,000
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  Fort Pickett.............  Multi-Purpose Range Complex-      $13,500,000
                                                                    Heavy.......................
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1999 
(division B of Public Law 105-261; 112 Stat. 2199), 
authorizations set forth in the table in subsection (b), as 
provided in section 2302 of that Act and extended by section 
2702 of the Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107-107; 115 Stat. 1301), 
shall remain in effect until October 1, 2003, or the date of 
the enactment of an Act authorizing funds for military 
construction for fiscal year 2004, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as 
follows:


                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,988,000
                                                                    Units)......................
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    Units)......................
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    Units)......................
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base..............   Units)......................
----------------------------------------------------------------------------------------------------------------

                    TITLE XXVIII--GENERAL PROVISIONS

 Subtitle A--Military Construction Program and Military Family Housing 
                                 Changes

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Modification of alternative authority for acquisition and 
          improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
          construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing construction 
          overseas.
Sec. 2805. Availability of energy cost savings realized at military 
          installations.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
          conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
          term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
          installations to be closed to persons who construct or provide 
          military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
          establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
          National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
          Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
          Virginia.

                        Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
          Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
          Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
          Quantico, and Prince William Forest Park, Virginia.

                     Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
          California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
          Nevada.

                        Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
          capacity, Marine Corps Base, Camp Lejeune, North Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
          related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
          closure list.

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

    (a) Increase in Number of Units Authorized for Lease at 
Current Maximum Amount.--Paragraph (3) of section 2828(e) of 
title 10, United States Code, is amended by striking ``800 
units'' and inserting ``1,175 units''.
    (b) Authority To Lease Additional Number of Units at 
Increased Maximum Amount.--That section is further amended--
            (1) by redesignating paragraphs (4) and (5) as 
        paragraphs (5) and (6), respectively;
            (2) by inserting after paragraph (3) the following 
        new paragraph (4):
    ``(4) In addition to the units of family housing referred 
to in paragraph (1) for which the maximum lease amount is 
$25,000 per unit per year, the Secretary of the Army may lease 
not more than 2,400 units of family housing in Korea subject to 
a maximum lease amount of $35,000 per unit per year.'';
            (3) in paragraph (5), as so redesignated, by 
        striking ``and (3)'' and inserting ``(3), and (4)''; 
        and
            (4) in paragraph (6), as so redesignated, by 
        striking ``53,000'' and inserting ``55,775''.

SEC. 2802. MODIFICATION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                    IMPROVEMENT OF MILITARY HOUSING.

    (a) Authorized Utilities and Services.--Section 2872a(b) of 
title 10, United States Code, is amended by adding at the end 
the following new paragraphs:
            ``(11) Firefighting and fire protection services.
            ``(12) Police protection services.''.
    (b) Leasing of Housing.--(1) Section 2874 of such title is 
amended--
            (A) by redesignating subsection (b) as subsection 
        (c); and
            (B) by striking subsection (a) and inserting the 
        following new subsections:
    ``(a) Lease Authorized.--The Secretary concerned may enter 
into contracts for the lease of housing units that the 
Secretary determines are suitable for use as military family 
housing or military unaccompanied housing.
    ``(b) Use of Leased Units.--The Secretary concerned shall 
utilize housing units leased under this section as military 
family housing or military unaccompanied housing, as 
appropriate.''.
    (2) The heading for such section is amended to read as 
follows:

``Sec. 2874. Leasing of housing''.

    (3) The table of sections at the beginning of subchapter IV 
of chapter 169 of such title is amended by striking the item 
relating to section 2874 and inserting the following new item:

``2874. Leasing of housing.''.

    (c) Repeal of Interim Lease Authority.--(1) Section 2879 of 
such title is repealed.
    (2) The table of sections at the beginning of subchapter IV 
of chapter 169 of such title is amended by striking the item 
relating to section 2879.

SEC. 2803. PILOT HOUSING PRIVATIZATION AUTHORITY FOR ACQUISITION OR 
                    CONSTRUCTION OF MILITARY UNACCOMPANIED HOUSING.

    (a) In General.--(1) Subchapter IV of chapter 169 of title 
10, United States Code, is amended by inserting after section 
2881 the following new section:

``Sec. 2881a. Pilot projects for acquisition or construction of 
                    military unaccompanied housing

    ``(a) Pilot Projects Authorized.--The Secretary of the Navy 
may carry out not more than three pilot projects under the 
authority of this section or another provision of this 
subchapter to use the private sector for the acquisition or 
construction of military unaccompanied housing in the United 
States, including any territory or possession of the United 
States.
    ``(b) Treatment of Housing; Assignment of Members.--The 
Secretary of the Navy may assign members of the armed forces 
without dependents to housing units acquired or constructed 
under the pilot projects, and such housing units shall be 
considered as quarters of the United States or a housing 
facility under the jurisdiction of the Secretary for purposes 
of section 403 of title 37.
    ``(c) Basic Allowance for Housing.--(1) The Secretary of 
Defense may prescribe and, under section 403(n) of title 37, 
pay for members of the armed forces without dependents in 
privatized housing acquired or constructed under the pilot 
projects higher rates of partial basic allowance for housing 
than the rates authorized under paragraph (2) of such section.
    ``(2) The partial basic allowance for housing paid for a 
member at a higher rate under this subsection may be paid 
directly to the private sector source of the housing to whom 
the member is obligated to pay rent or other charge for 
residing in such housing if the private sector source credits 
the amount so paid against the amount owed by the member for 
the rent or other charge.
    ``(d) Funding.--(1) The Secretary of the Navy shall use the 
Department of Defense Military Unaccompanied Housing 
Improvement Fund to carry out activities under the pilot 
projects.
    ``(2) Subject to 90 days prior notification to the 
appropriate committees of Congress, such additional amounts as 
the Secretary of Defense considers necessary may be transferred 
to the Department of Defense Military Unaccompanied Housing 
Improvement Fund from amounts appropriated for construction of 
military unaccompanied housing in military construction 
accounts. The amounts so transferred shall be merged with and 
be available for the same purposes and for the same period of 
time as amounts appropriated directly to the Fund.
    ``(e) Reports.--(1) The Secretary of the Navy shall 
transmit to the appropriate committees of Congress a report 
describing--
            ``(A) each contract for the acquisition of military 
        unaccompanied housing that the Secretary proposes to 
        solicit under the pilot projects;
            ``(B) each conveyance or lease proposed under 
        section 2878 of this title in furtherance of the pilot 
        projects; and
            ``(C) the proposed partial basic allowance for 
        housing rates for each contract as they vary by grade 
        of the member and how they compare to basic allowance 
        for housing rates for other contracts written under the 
        authority of the pilot programs.
    ``(2) The report shall describe the proposed contract, 
conveyance, or lease and the intended method of participation 
of the United States in the contract, conveyance, or lease and 
provide a justification of such method of participation. The 
report shall be submitted not later than 90 days before the 
date on which the Secretary issues the contract solicitation or 
offers the conveyance or lease.
    ``(f) Expiration.--Notwithstanding section 2885 of this 
title, the authority of the Secretary of the Navy to enter into 
a contract under the pilot programs shall expire September 30, 
2007.''.
    (2) The table of sections at the beginning of such 
subchapter is amended by inserting after the item relating to 
section 2881 the following new item:

``2881a. Pilot projects for acquisition or construction of military 
          unaccompanied housing.''.

    (b) Conforming Amendment.--Section 2871(7) of title 10, 
United States Code, is amended by inserting before the period 
at the end the following: ``and transient housing intended to 
be occupied by members of the armed forces on temporary duty''.

SEC. 2804. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING 
                    CONSTRUCTION OVERSEAS.

    Section 803 of the Military Construction Authorization Act, 
1984 (Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

SEC. 2805. AVAILABILITY OF ENERGY COST SAVINGS REALIZED AT MILITARY 
                    INSTALLATIONS.

    Section 2865(b) of title 10, United States Code, is amended 
by striking ``through the end of the fiscal year following the 
fiscal year for which the funds were appropriated'' and 
inserting ``until expended''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON 
                    MILITARY TRAINING, TESTING, AND OPERATIONS.

    (a) In General.--Chapter 159 of title 10, United States 
Code, is amended by inserting after section 2684 the following 
new section:

``Sec. 2684a. Agreements to limit encroachments and other constraints 
                    on military training, testing, and operations

    ``(a) Agreements Authorized.--The Secretary of Defense or 
the Secretary of a military department may enter into an 
agreement with an eligible entity described in subsection (b) 
to address the use or development of real property in the 
vicinity of a military installation for purposes of--
            ``(1) limiting any development or use of the 
        property that would be incompatible with the mission of 
        the installation; or
            ``(2) preserving habitat on the property in a 
        manner that--
                    ``(A) is compatible with environmental 
                requirements; and
                    ``(B) may eliminate or relieve current or 
                anticipated environmental restrictions that 
                would or might otherwise restrict, impede, or 
                otherwise interfere, whether directly or 
                indirectly, with current or anticipated 
                military training, testing, or operations on 
                the installation.
    ``(b) Eligible Entities.--An agreement under this section 
may be entered into with any of the following:
            ``(1) A State or political subdivision of a State.
            ``(2) A private entity that has as its stated 
        principal organizational purpose or goal the 
        conservation, restoration, or preservation of land and 
        natural resources, or a similar purpose or goal, as 
        determined by the Secretary concerned.
    ``(c) Inapplicability of Certain Contract Requirements.--
Chapter 63 of title 31 shall not apply to any agreement entered 
into under this section.
    ``(d) Acquisition and Acceptance of Property and 
Interests.--(1) An agreement with an eligible entity under this 
section may provide for--
            ``(A) the acquisition by the entity of all right, 
        title, and interest in and to any real property, or any 
        lesser interest in the property, as may be appropriate 
        for purposes of this section; and
            ``(B) the sharing by the United States and the 
        entity of the acquisition costs.
    ``(2) Property or interests may not be acquired pursuant to 
the agreement unless the owner of the property or interests 
consents to the acquisition.
    ``(3) The agreement shall require the entity to transfer to 
the United States, upon the request of the Secretary concerned, 
all or a portion of the property or interest acquired under the 
agreement or a lesser interest therein. The Secretary shall 
limit such transfer request to the minimum property or 
interests necessary to ensure that the property concerned is 
developed and used in a manner appropriate for purposes of this 
section.
    ``(4) The Secretary concerned may accept on behalf of the 
United States any property or interest to be transferred to the 
United States under the agreement.
    ``(5) For purposes of the acceptance of property or 
interests under the agreement, the Secretary concerned may 
accept an appraisal or title documents prepared or adopted by a 
non-Federal entity as satisfying the applicable requirements of 
section 301 of the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (42 U.S.C. 4651) or 
section 3111 of title 40, if the Secretary concerned finds that 
the appraisal or title documents substantially comply with the 
requirements.
    ``(e) Acquisition of Water Rights.--The authority of the 
Secretary concerned to enter into an agreement under this 
section for the acquisition of real property (or an interest 
therein) includes the authority to support the purchase of 
water rights from any available source when necessary to 
support or protect the mission of a military installation.
    ``(f) Additional Terms and Conditions.--The Secretary 
concerned may require such additional terms and conditions in 
an agreement under this section as the Secretary considers 
appropriate to protect the interests of the United States.
    ``(g) Funding.--(1) Except as provided in paragraph (2), 
funds authorized to be appropriated for operation and 
maintenance of the Army, Navy, Marine Corps, Air Force, or 
Defense-wide activities may be used to enter into agreements 
under this section.
    ``(2) In the case of a military installation operated 
primarily with funds authorized to be appropriated for 
research, development, test, and evaluation, funds authorized 
to be appropriated for the Army, Navy, Marine Corps, Air Force, 
or Defense-wide activities for research, development, test, and 
evaluation may be used to enter into agreements under this 
section with respect to the installation.
    ``(h) Definitions.--In this section:
            ``(1) The term `Secretary concerned' means the 
        Secretary of Defense or the Secretary of a military 
        department.
            ``(2) The term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Marianas, and the 
        territories and possessions of the United States.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2684 the following new item:

``2684a. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.''.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL RESOURCE 
                    CONSERVATION PURPOSES.

    (a) Conveyance Authority.--(1) Chapter 159 of title 10, 
United States Code, is amended by inserting after section 2694 
the following new section:

``Sec. 2694a. Conveyance of surplus real property for natural resource 
                    conservation

    ``(a) Authority to Convey.--The Secretary of a military 
department may convey to an eligible entity described in 
subsection (b) any surplus real property that--
            ``(1) is under the administrative control of the 
        Secretary;
            ``(2) is suitable and desirable for conservation 
        purposes;
            ``(3) has been made available for public benefit 
        transfer for a sufficient period of time to potential 
        claimants; and
            ``(4) is not subject to a pending request for 
        transfer to another Federal agency or for conveyance to 
        any other qualified recipient for public benefit 
        transfer under the real property disposal processes and 
        authorities under subtitle I of title 40.
    ``(b) Eligible Entities.--The conveyance of surplus real 
property under this section may be made to any of the 
following:
            ``(1) A State or political subdivision of a State.
            ``(2) A nonprofit organization that exists for the 
        primary purpose of conservation of natural resources on 
        real property.
    ``(c) Revisionary Interest and Other Deed Requirements.--
(1) The deed of conveyance of any surplus real property 
conveyed under this section shall require the property to be 
used and maintained for the conservation of natural resources 
in perpetuity. If the Secretary concerned determines at any 
time that the property is not being used or maintained for such 
purpose, then, at the option of the Secretary, all or any 
portion of the property shall revert to the United States.
    ``(2) The deed of conveyance may permit the recipient of 
the property--
            ``(A) to convey the property to another eligible 
        entity, subject to the approval of the Secretary 
        concerned and subject to the same covenants and terms 
        and conditions as provided in the deed from the United 
        States; and
            ``(B) to conduct incidental revenue-producing 
        activities on the property that are compatible with the 
        use of the property for conservation purposes.
    ``(3) The deed of conveyance may contain such additional 
terms, reservations, restrictions, and conditions as the 
Secretary concerned considers appropriate to protect the 
interests of the United States.
    ``(d) Release of Covenants.--With the concurrence of the 
Secretary of Interior, the Secretary concerned may grant a 
release from a covenant included in the deed of conveyance of 
real property conveyed under this section, subject to the 
condition that the recipient of the property pay the fair 
market value, as determined by the Secretary concerned, of the 
property at the time of the release of the covenant. The 
Secretary concerned may reduce the amount required to be paid 
under this subsection to account for the value of the natural 
resource conservation benefit that has accrued to the United 
States during the period the covenant was in effect, if the 
benefit was not taken into account in determining the original 
consideration for the conveyance.
    ``(e) Congressional Notification.--The Secretary concerned 
may not approve of the reconveyance of real property under 
subsection (c) or grant the release of a covenant under 
subsection (d) until the Secretary notifies the appropriate 
committees of Congress of the proposed reconveyance or release 
and a period of 21 days elapses from the date the notification 
is received by the committees.
    ``(f) Limitations.--The conveyance of real property under 
this section shall not be used as a condition of allowing any 
defense activity under any Federal, State, or local permitting 
or review process. The Secretary concerned may make the 
conveyance, with the restrictions specified in subsection (c), 
to establish a mitigation bank, but only if the establishment 
of the mitigation bank does not occur in order to satisfy any 
condition for permitting military activity under a Federal, 
State, or local permitting or review process.
    ``(g) Consideration.--In fixing the consideration for the 
conveyance of real property under this section, or in 
determining the amount of any reduction of the amount to be 
paid for the release of a covenant under subsection (d), the 
Secretary concerned shall take into consideration any benefit 
that has accrued or may accrue to the United States from the 
use of such property for the conservation of natural resources.
    ``(h) Relation to Other Conveyance Authorities.--(1) The 
Secretary concerned may not make a conveyance under this 
section of any real property to be disposed of under a base 
closure law in a manner that is inconsistent with the 
requirements and conditions of the base closure law.
    ``(2) In the case of real property on Guam, the Secretary 
concerned may not make a conveyance under this section unless 
the Government of Guam has been first afforded the opportunity 
to acquire the real property as authorized by section 1 of 
Public Law 106-504 (114 Stat. 2309).
    ``(i) Definitions.--In this section:
            ``(1) The term `appropriate committees of Congress' 
        has the meaning given such term in section 2801 of this 
        title.
            ``(2) The term `base closure law' means the 
        following:
                    ``(A) Section 2687 of this title.
                    ``(B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                of 1988 (10 U.S.C. 2687 note).
                    ``(C) The Defense Base Closure and 
                Realignment Act of 1990 (part A of title XXIX 
                of Public Law 101-510; 10 U.S.C. 2687 note).
                    ``(D) Any other similar authority for the 
                closure or realignment of military 
                installations that is enacted after the date of 
                the enactment of the Bob Stump National Defense 
                Authorization Act for Fiscal Year 2003.
            ``(3) The term `Secretary concerned' means the 
        Secretary of a military department.
            ``(4) The term `State' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Marianas, and the 
        territories and possessions of the United States.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2694 
the following new item:

``2694a. Conveyance of surplus real property for natural resource 
          conservation.''.

    (b) Acceptance of Funds to Cover Administrative Expenses.--
Section 2695(b) of such title is amended by adding at the end 
the following new paragraph:
            ``(5) The conveyance of real property under section 
        2694a of this title.''.
    (c) Agreements With Nonprofit Natural Resource Conservation 
Organizations.--Section 2701(d) of such title is amended--
            (1) in the subsection heading, by striking 
        ``Agencies'' and inserting ``Entities'';
            (2) in paragraph (1)--
                    (A) by striking ``with any State or local 
                government agency, or with any Indian tribe,'' 
                and inserting ``any State or local government 
                agency, any Indian tribe, or any nonprofit 
                conservation organization''; and
                    (B) by striking ``the agency'' and 
                inserting ``the agency, Indian tribe, or 
                organization''; and
            (3) by striking paragraph (4), as redesignated by 
        section 311(2) of this Act, and inserting the following 
        new paragraph:
            ``(4) Definitions.--In this subsection:
                    ``(A) The term `Indian tribe' has the 
                meaning given such term in section 101(36) of 
                CERCLA (42 U.S.C. 9601(36)).
                    ``(B) The term `nonprofit conservation 
                organization' means any non-governmental 
                nonprofit organization whose primary purpose is 
                conservation of open space or natural 
                resources.''.

SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION IN LONG-
                    TERM FACILITY MAINTENANCE COSTS.

    (a) Administrator of Program.--Subsection (a) of section 
2814 of the Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107-107; 115 Stat. 1310; 10 
U.S.C. 2809 note) is amended by striking ``Secretary of the 
Army'' and inserting ``Secretary of Defense or the Secretary of 
a military department''.
    (b) Contracts.--Subsection (b) of such section is amended 
to read as follows:
    ``(b) Contracts.--(1) Not more than 12 contracts per 
military department may contain requirements referred to in 
subsection (a) for the purpose of the demonstration program.
    ``(2) The demonstration program may only cover contracts 
entered into on or after the date of the enactment of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003, 
except that the Secretary of the Army shall treat any contract 
containing requirements referred to in subsection (a) that was 
entered into under the authority in such subsection between 
that date and December 28, 2001, as a contract for the purpose 
of the demonstration program.''.
    (c) Reporting Requirements.--Subsection (d) of such section 
is amended by striking ``Secretary of the Army'' and inserting 
``Secretary of Defense''.
    (d) Funding.--(1) Subsection (f) of such section is amended 
by striking ``the Army'' and inserting ``the military 
departments or defense-wide''.
    (2) The amendment made by paragraph (1) shall not affect 
the availability for the purpose of the demonstration program 
under section 2814 of the Military Construction Authorization 
Act for Fiscal Year 2002, as amended by this section, of any 
amounts authorized to be appropriated before the date of the 
enactment of this Act for the Army for military construction 
that have been obligated for the demonstration program, but not 
expended, as of that date.

SEC. 2814. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY 
                    INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT 
                    OR PROVIDE MILITARY FAMILY HOUSING.

    (a) 1988 Law.--Section 204(e)(1) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
striking the last sentence.
    (b) 1990 Law.--Section 2905(f)(1) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note) is amended by striking 
the last sentence.

                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2821. TRANSFER OF JURISDICTION, FORT MCCLELLAN, ALABAMA, TO 
                    ESTABLISH MOUNTAIN LONGLEAF NATIONAL WILDLIFE 
                    REFUGE.

    (a) Transfer Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the Army 
shall transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of the Interior a parcel of real 
property at Fort McClellan, Alabama, consisting of 
approximately 7,600 acres, which is described as the 
``acquisition area'' in a memorandum of agreement between the 
Secretaries numbered 1448-40181-00-K-014.
    (b) Establishment and Management of Refuge.--(1) The 
Secretary of the Interior shall establish on the real property 
transferred under subsection (a) the Mountain Longleaf National 
Wildlife Refuge to enhance, manage, and protect the unique 
mountain longleaf pine ecosystem on the property.
    (2) The Secretary of Interior shall manage the Mountain 
Longleaf National Wildlife Refuge in a manner that--
            (A) conserves and enhances populations of fish, 
        wildlife, and plants in the Refuge, including migratory 
        birds and species that are threatened or endangered, 
        with particular emphasis on the protection of the 
        mountain longleaf pine plant ecosystem;
            (B) protects and enhances the quality of aquatic 
        habitat in the Refuge;
            (C) provides, in coordination with the Alabama 
        Department of Conservation and Natural Resources, the 
        public with recreational opportunities, including 
        hunting, fishing, wildlife observation, and 
        photography;
            (D) provides opportunities for scientific research 
        and education on land use and environmental law; and
            (E) is consistent with environmental restoration 
        efforts conducted by the Secretary of the Army on the 
        Refuge or on lands adjacent to the Refuge.
    (c) Environmental Restoration.--(1) The Secretary of the 
Army shall continue to be responsible for unexploded ordnance, 
discarded military munitions, and munitions constituents on the 
real property transferred under subsection (a) and shall 
continue to follow a remediation process in accordance with the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.).
    (2) The Secretary of the Army shall appropriately factor 
the management directives for the Mountain Longleaf National 
Wildlife Refuge, as described in subsection (b), into the 
remedy selection process for the property transferred under 
subsection (a).
    (d) Relation to Other Environmental Laws.--Nothing in this 
section shall relieve, and no action taken under this section 
may relieve, the Secretary of the Army or the Secretary of the 
Interior, or any other person from any liability or other 
obligation under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980, the Resource 
Conservation and Recovery Act of 1976 (42 U.S.C. 6901 et seq.), 
or any other Federal or State law.
    (e) Assistance.--The Secretary of the Army may provide up 
to $500,000 from the funds in the Base Realignment and Closure 
Account 1990 to the Secretary of Interior to facilitate the 
establishment of the Mountain Longleaf National Wildlife Refuge 
and to support environmental research at the Refuge during the 
first two years of the operation of the Refuge.

SEC. 2822. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER REQUIRED FOR 
                    NATIONAL GUARD PURPOSES.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to an eligible entity described in subsection (b) all 
right, title, and interest of the United States in and to any 
parcel of real property, including any improvements thereon, in 
the State of Alaska described in subsection (c) if the 
Secretary determines the conveyance would be in the public 
interest.
    (b) Eligible Recipients.--The following entities shall be 
eligible to receive real property under subsection (a):
            (1) The State of Alaska.
            (2) A governmental entity in the State of Alaska.
            (3) A Native Corporation (as defined in section 3 
        of the Alaska Native Claims Settlement Act (43 U.S.C. 
        1602)).
            (4) The Metlakatla Indian Community.
    (c) Covered Property.--Subsection (a) applies to real 
property located in the State of Alaska that--
            (1) is under the jurisdiction of the Department of 
        the Army and, before December 2, 1980, was under such 
        jurisdiction for the use of the Alaska National Guard;
            (2) is located in a unit of the National Wildlife 
        Refuge System designated in the Alaska National 
        Interest Lands Conservation Act (Public Law 96-487; 16 
        U.S.C. 668dd note);
            (3) is excess to the needs of the Alaska National 
        Guard and the Department of Defense; and
            (4) the Secretary determines that--
                    (A) the anticipated cost to the United 
                States of retaining the property exceeds the 
                value of such property; or
                    (B) the condition of the property makes it 
                unsuitable for retention by the United States.
    (d) Consideration.--The conveyance of real property under 
this section shall, at the election of the Secretary, be for no 
consideration or for consideration in an amount determined by 
the Secretary to be appropriate under the circumstances.
    (e) Use of Consideration.--If consideration is received for 
the conveyance of real property under subsection (a), the 
Secretary may use the amounts received, in such amounts as are 
provided in appropriations Acts, to pay for--
            (1) the cost of a survey described in subsection 
        (f) with respect to the property;
            (2) the cost of carrying out any environmental 
        assessment, study, or analysis, and any remediation, 
        that may be required under Federal law, or is 
        considered appropriate by the Secretary, in connection 
        with the property or the conveyance of the property; 
        and
            (3) any other costs incurred by the Secretary in 
        conveying the property.
    (f) Description of Property.--The exact acreage and legal 
description of any real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
a conveyance of real property under this section as the 
Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2823. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, KANSAS.

    (a) Conveyance Authorized.--The Administrator of General 
Services may convey to the Johnson County Park and Recreation 
District, Kansas (in this section referred to as the 
``District''), all right, title, and interest of the United 
States in and to a parcel of real property, including any 
improvements thereon, at the Sunflower Army Ammunition Plant in 
the State of Kansas consisting of approximately 2,000 acres.
    (b) Basis of Conveyance.--The conveyance under this section 
shall be made in a manner consistent with section 550(e) of 
title 40, United States Code, for the purpose of permitting the 
District to use the conveyed property for public recreational 
purposes.
    (c) Description of Property.--The exact acreage, location, 
and legal description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Administrator. The cost of such legal description, survey, 
or both shall be borne by the District.
    (d) Additional Terms and Conditions.--The Administrator may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Administrator 
considers appropriate to protect the interests of the United 
States.
    (e) Application of Section.--If the Administrator and the 
District reach an agreement regarding the conveyance of the 
property described in subsection (a) before January 31, 2003, 
the authority provided by this section shall not take effect.

SEC. 2824. LAND CONVEYANCES, BLUEGRASS ARMY DEPOT, RICHMOND, KENTUCKY.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to Madison County, Kentucky (in 
this section referred to as the ``County''), all right, title, 
and interest of the United States in and to the following 
parcels of real property, including any improvements thereon, 
at the Bluegrass Army Depot, Richmond, Kentucky:
            (1) A parcel consisting of approximately 10 acres.
            (2) A parcel consisting of approximately 3 acres, 
        including the building known as Quarters 29.
    (b) Conditions of Conveyance.--(1) The Secretary may not 
convey the parcel of real property referred to in subsection 
(a)(1) unless the County agrees to use the property to 
facilitate the construction of a veterans' center on the 
property by the State of Kentucky and the Secretary determines 
that the State has appropriated adequate funds for the 
construction of the veterans' center.
    (2) The Secretary may not convey the parcel of real 
property referred to in subsection (a)(2) unless the County 
agrees to utilize the property for historical preservation and 
education purposes.
    (c) Reversionary Interest.--(1) At the end of the seven-
year period beginning on the date on which the Secretary makes 
the conveyance of the parcel of real property referred to in 
subsection (a)(1), if the Secretary determines that a veterans' 
center is not in operation on the conveyed real property, then, 
at the option of the Secretary, all right, title, and interest 
in and to the property, including any improvements thereon, 
shall revert to the United States, and the United States shall 
have the right of immediate entry onto the property.
    (2) If the Secretary determines at any time that the parcel 
of real property referred to in subsection (a)(2) has ceased to 
be utilized for the purposes specified in subsection (b)(2), 
then, at the option of the Secretary, all right, title, and 
interest in and to the property shall revert to the United 
States, and the United States shall have the right of immediate 
entry onto the property.
    (3) Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for 
a hearing.
    (d) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the County to reimburse the Secretary for 
the costs incurred by the Secretary to carry out the 
conveyances under subsection (a), including survey costs, costs 
related to environmental documentation (other than the 
environmental baseline survey), and other administrative costs 
related to the conveyance.
    (2) The Secretary shall require the County to reimburse the 
Secretary for any excess costs incurred by the Secretary for 
any environmental assessment, study, or analysis, or for any 
other excess costs incurred by the Secretary, in connection 
with the conveyances, if the excess costs were incurred as a 
result of a request by the County. In this paragraph, the term 
``excess costs'' means costs in excess of those costs 
considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyances.
    (3) Any reimbursement received under this subsection shall 
be credited to the fund or account that was used to cover the 
costs incurred by the Secretary in carrying out the 
conveyances. Amounts so credited shall be merged with amounts 
in such fund or account, and shall be available for the same 
purposes, and subject to the same conditions and limitations, 
as amounts in such fund or account.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
County.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2825. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the City of Hopkinsville, 
Kentucky (in this section referred to as the ``City''), all 
right, title, and interest of the United States in and to a 
parcel of real property at Fort Campbell, Kentucky, consisting 
of approximately 50 acres and containing an abandoned railroad 
spur for the purpose of permitting the City to use the property 
for storm water management, recreation, transportation, and 
other public purposes.
    (b) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the City to reimburse the Secretary for 
the costs incurred by the Secretary to carry out the conveyance 
under subsection (a), including survey costs, costs related to 
environmental documentation (other than the environmental 
baseline survey), and other administrative costs related to the 
conveyance.
    (2) The Secretary shall require the City to reimburse the 
Secretary for any excess costs incurred by the Secretary for 
any environmental assessment, study, or analysis, or for any 
other excess costs incurred by the Secretary, in connection 
with the conveyance, if the excess costs were incurred as a 
result of a request by the City. In this paragraph, the term 
``excess costs'' means costs in excess of those costs 
considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall 
be credited to the fund or account that was used to cover the 
costs incurred by the Secretary in carrying out the conveyance. 
Amounts so credited shall be merged with amounts in such fund 
or account, and shall be available for the same purposes, and 
subject to the same conditions and limitations, as amounts in 
such fund or account.
    (c) Description of Property.--The acreage of the real 
property to be conveyed under subsection (a) has been 
determined by the Secretary through a legal description 
outlining such acreage. No further survey of the property is 
required before the conveyance is made.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2826. LAND CONVEYANCE, ARMY RESERVE TRAINING CENTER, BUFFALO, 
                    MINNESOTA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Buffalo Independent 
School District 877 of Buffalo, Minnesota (in this section 
referred to as the ``School District''), all right, title, and 
interest of the United States in and to a parcel of real 
property, including improvements thereon, that is located at 
800 8th Street, N.E., in Buffalo, Minnesota, and contains a 
former Army Reserve Training Center, which is being used by the 
School District as the site of the Phoenix Learning Center.
    (b) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the School District to reimburse the 
Secretary for the costs incurred by the Secretary to carry out 
the conveyance under subsection (a), including survey costs, 
costs related to environmental documentation (other than the 
environmental baseline survey), and other administrative costs 
related to the conveyance.
    (2) The Secretary shall require the School District to 
reimburse the Secretary for any excess costs incurred by the 
Secretary for any environmental assessment, study, or analysis, 
or for any other excess costs incurred by the Secretary, in 
connection with the conveyance, if the excess costs were 
incurred as a result of a request by the School District. In 
this paragraph, the term ``excess costs'' means costs in excess 
of those costs considered reasonable and necessary by the 
Secretary to comply with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall 
be credited to the fund or account that was used to cover the 
costs incurred by the Secretary in carrying out the conveyance. 
Amounts so credited shall be merged with amounts in such fund 
or account, and shall be available for the same purposes, and 
subject to the same conditions and limitations, as amounts in 
such fund or account.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
School District.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2827. LAND CONVEYANCE, FORT MONMOUTH, NEW JERSEY.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey by sale all right, title, and interest of the United 
States in and to a parcel of real property, consisting of 
approximately 63.95 acres of military family housing known as 
Howard Commons, that comprises a portion of Fort Monmouth, New 
Jersey.
    (b) Competitive Bid Requirement.--The Secretary shall use 
competitive procedures for the sale authorized by subsection 
(a).
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (a), the recipient shall provide the 
United States, whether by cash payment, in-kind contribution, 
or a combination thereof, an amount that is not less than the 
fair market value, as determined by the Secretary, of the 
property conveyed under such subsection.
    (2) In-kind consideration under paragraph (1) may include 
the construction of replacement military family housing or the 
rehabilitation of existing military family housing at Fort 
Monmouth, New Jersey, as agreed upon by the Secretary.
    (3) If the value of in-kind consideration to be provided 
under this subsection exceeds $1,500,000, the Secretary may not 
accept such consideration until after the end of the 21-day 
period beginning on the date the Secretary notifies the 
congressional defense committees of the decision of the 
Secretary to accept in-kind consideration in excess of that 
amount.
    (4) Any proceeds received by the Secretary under this 
subsection and not used to construct or rehabilitate such 
military family housing shall be deposited in the special 
account in the Treasury established pursuant to section 572(b) 
of title 40, United States Code.
    (d) Effect of Transfer of Administrative Jurisdiction.--If 
the real property authorized to be conveyed by this section is 
transferred to the administrative jurisdiction of the 
Administrator of General Services, the Administrator, rather 
than the Secretary, shall have the authority to convey such 
property under this section.
    (e) Description of Parcel.--The exact acreage and legal 
description of the parcel to be conveyed under subsection (a) 
shall be determined by a survey that is satisfactory to the 
Secretary. The cost of the survey shall be borne by the 
recipient of the parcel.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2828. LAND CONVEYANCE, FORT BLISS, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the County of El Paso, Texas 
(in this section referred to as the ``County''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
approximately 44 acres at Fort Bliss, Texas, for the purpose of 
facilitating the construction by the State of Texas of a 
nursing home for veterans of the Armed Forces.
    (b) Reversionary Interest.--(1) At the end of the seven-
year period beginning on the date on which the Secretary makes 
the conveyance under subsection (a), if the Secretary 
determines that a nursing home for veterans is not in operation 
on the conveyed real property, then, at the option of the 
Secretary--
            (A) all right, title, and interest in and to the 
        property, including any improvements thereon, shall 
        revert to the United States; and
            (B) the United States shall have the right of 
        immediate entry onto the property.
    (2) Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for 
a hearing.
    (c) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the County to reimburse the Secretary for 
the costs incurred by the Secretary to carry out the conveyance 
under subsection (a), including survey costs, costs related to 
environmental documentation (other than the environmental 
baseline survey), and other administrative costs related to the 
conveyance.
    (2) The Secretary shall require the County to reimburse the 
Secretary for any excess costs incurred by the Secretary for 
any environmental assessment, study, or analysis, or for any 
other excess costs incurred by the Secretary, in connection 
with the conveyance, if the excess costs were incurred as a 
result of a request by the County. In this paragraph, the term 
``excess costs'' means costs in excess of those costs 
considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall 
be credited to the fund or account that was used to cover the 
costs incurred by the Secretary in carrying out the conveyance. 
Amounts so credited shall be merged with amounts in such fund 
or account, and shall be available for the same purposes, and 
subject to the same conditions and limitations, as amounts in 
such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
County.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Veterans Land Board of 
the State of Texas (in this section referred to as the 
``Board'') all right, title, and interest of the United States 
in and to a parcel of real property, including any improvements 
thereon, consisting of approximately 174 acres at Fort Hood, 
Texas, for the purpose of permitting the Board to establish a 
State-run cemetery for veterans of the Armed Forces.
    (b) Reversionary Interest.--(1) At the end of the seven-
year period beginning on the date on which the Secretary makes 
the conveyance under subsection (a), if the Secretary 
determines that a cemetery for veterans is not in operation on 
the conveyed real property, then, at the option of the 
Secretary--
            (A) all right, title, and interest in and to the 
        property, including any improvements thereon, shall 
        revert to the United States; and
            (B) the United States shall have the right of 
        immediate entry onto the property.
    (2) Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for 
a hearing.
    (c) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the Board to reimburse the Secretary for 
the costs incurred by the Secretary to carry out the conveyance 
under subsection (a), including survey costs, costs related to 
environmental documentation (other than the environmental 
baseline survey), and other administrative costs related to the 
conveyance.
    (2) The Secretary shall require the Board to reimburse the 
Secretary for any excess costs incurred by the Secretary for 
any environmental assessment, study, or analysis, or for any 
other excess costs incurred by the Secretary, in connection 
with the conveyance, if the excess costs were incurred as a 
result of a request by the Board. In this paragraph, the term 
``excess costs'' means costs in excess of those costs 
considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall 
be credited to the fund or account that was used to cover the 
costs incurred by the Secretary in carrying out the conveyance. 
Amounts so credited shall be merged with amounts in such fund 
or account, and shall be available for the same purposes, and 
subject to the same conditions and limitations, as amounts in 
such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Board.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT BELVOIR, 
                    VIRGINIA.

    (a) Conveyance to Fairfax County, Virginia, Authorized.--
(1) The Secretary of the Army may convey, without 
consideration, to Fairfax County, Virginia, all right, title, 
and interest of the United States in and to a parcel of real 
property, including any improvements thereon, consisting of 
approximately 135 acres, located in the northwest portion of 
the Engineer Proving Ground at Fort Belvoir, Virginia, in order 
to permit the County to use such property for park and 
recreational purposes.
    (2) The parcel of real property authorized to be conveyed 
by paragraph (1) is generally described as that portion of the 
Engineer Proving Ground located west of Accotink Creek, east of 
the Fairfax County Parkway, and north of Cissna Road to the 
northern boundary, but excludes a parcel of land consisting of 
approximately 15 acres located in the southeast corner of such 
portion of the Engineer Proving Ground.
    (3) The land excluded under paragraph (2) from the parcel 
of real property authorized to be conveyed by paragraph (1) 
shall be reserved for an access road to be constructed in the 
future.
    (b) Conveyance of Balance of Property Authorized.--The 
Secretary may convey to any competitively selected grantee all 
right, title, and interest of the United States in and to the 
real property, including any improvements thereon, at the 
Engineering Proving Ground not conveyed under the authority in 
subsection (a).
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (b), the grantee shall provide the 
United States, whether by cash payment, in-kind contribution, 
or a combination thereof, an amount that is not less than the 
fair market value, as determined by the Secretary, of the 
property conveyed under such subsection.
    (2) In-kind consideration under paragraph (1) may include 
the maintenance, improvement, alteration, repair, remodeling, 
restoration (including environmental restoration), or 
construction of facilities for the Department of the Army at 
Fort Belvoir or at any other site or sites designated by the 
Secretary.
    (3) If in-kind consideration under paragraph (1) includes 
the construction of facilities, the grantee shall also convey 
to the United States--
            (A) title to such facilities, free of all liens and 
        other encumbrances; and
            (B) if the United States does not have fee simple 
        title to the land underlying such facilities, convey to 
        the United States all right, title, and interest in and 
        to such lands not held by the United States.
    (4) If the value of in-kind consideration to be provided 
under paragraph (1) exceeds $1,500,000, the Secretary may not 
accept such consideration until after the end of the 21-day 
period beginning on the date the Secretary notifies the 
congressional defense committees of the decision of the 
Secretary to accept in-kind consideration in excess of that 
amount.
    (5) The Secretary shall deposit any cash received as 
consideration under this subsection in the special account 
established pursuant to section 572(b) of title 40, United 
States Code.
    (d) Effect of Transfer of Administrative Jurisdiction.--If 
all or a portion of the real property authorized to be conveyed 
by this section is transferred to the administrative 
jurisdiction of the Administrator of General Services, the 
Administrator, rather than the Secretary of the Army, shall 
have the authority to convey such property under this section.
    (e) Repeal of Superseded Authority.--Section 2821 of the 
Military Construction Authorization Act for Fiscal Years 1990 
and 1991 (division B of Public Law 101-189; 103 Stat. 1658), as 
amended by section 2854 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public 
Law 104-106; 110 Stat. 568), is repealed.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsections (a) and (b) shall be determined by surveys 
satisfactory to the Secretary. The cost of each such survey 
shall be borne by the grantee.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under subsections (a) and (b) as the Secretary 
considers appropriate to protect the interests of the United 
States.

                       PART II--NAVY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, MARINE CORPS AIR STATION, MIRAMAR, SAN 
                    DIEGO, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the ENPEX Corporation, Incorporated (in this section 
referred to as the ``Corporation''), all right, title, and 
interest of the United States in and to a parcel of real 
property, including any improvements thereon, at Marine Corps 
Air Station, Miramar, San Diego, California, consisting of 
approximately 60 acres and appurtenant easements and any other 
necessary interests in real property for the purpose of 
permitting the Corporation to use the property for the 
production of electric power and related ancillary activities.
    (b) Consideration.--(1) As consideration for the conveyance 
under subsection (a), the Corporation shall--
            (A) convey to the United States all right, title, 
        and interest of the Corporation in and to a parcel of 
        real property in the San Diego area that is suitable 
        for military family housing, as determined by the 
        Secretary; and
            (B) if the parcel conveyed under subparagraph (A) 
        does not contain housing units suitable for use as 
        military family housing, design and construct such 
        military family housing units and supporting facilities 
        as the Secretary considers appropriate.
    (2) The total combined value of the real property and 
military family housing conveyed by the Corporation under this 
subsection shall be at least equal to the fair market value of 
the real property conveyed to the Secretary under subsection 
(a), including any severance costs arising from any diminution 
of the value or utility of other property at Marine Corps Air 
Station, Miramar, attributable to the prospective future use of 
the property conveyed under subsection (a).
    (3) The Secretary shall determine the fair market value of 
the real property to be conveyed under subsection (a) and the 
fair market value of the consideration to be provided under 
this subsection. Such determinations shall be final.
    (c) Reversionary Interest.--(1) Subject to paragraph (2), 
if the Secretary determines at any time that the property 
conveyed under subsection (a) is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert, at 
the option of the Secretary, to the United States, and the 
United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this 
subsection shall be made on the record after an opportunity for 
a hearing.
    (2) If Marine Corps Air Station, Miramar, is no longer used 
as a Federal aviation facility, paragraph (1) shall no longer 
apply, and the Secretary shall release, without consideration, 
the reversionary interest retained by the United States under 
such paragraph.
    (d) Administrative Expenses.--(1) The Corporation shall 
make funds available to the Secretary to cover costs to be 
incurred by the Secretary, or reimburse the Secretary for costs 
incurred, to carry out the conveyance under subsection (a), 
including survey costs, costs related to environmental 
documentation, and other administrative costs related to the 
conveyance. This paragraph does not apply to costs associated 
with the removal of explosive ordnance from the parcel and 
environmental remediation of the parcel.
    (2) Section 2695(c) of title 10 United States Code, shall 
apply to any amount received under paragraph (1). If the 
amounts received in advance under such paragraph exceed the 
costs actually incurred by the Secretary, the Secretary shall 
refund the excess amount to the Corporation.
    (e) Descriptions of Property.--The exact acreage and legal 
descriptions of the real property to be conveyed by the 
Secretary under subsection (a) and the property to be conveyed 
by the Corporation under subsection (b) shall be determined by 
a survey satisfactory to the Secretary.
    (f) Exemptions.--Section 2696 of title 10, United States 
Code, does not apply to the conveyance authorized by subsection 
(a), and the authority to make the conveyance shall not be 
considered to render the property excess or underutilized.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances authorized by this section as the Secretary 
considers appropriate to protect the interests of the United 
States.

SEC. 2832. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND CONVEYANCE, 
                    NAVAL SECURITY GROUP ACTIVITY, WINTER HARBOR, 
                    MAINE.

    (a) Modification of Conveyance Authority for Corea and 
Winter Harbor Properties.--Subsection (b) of section 2845 of 
the Military Construction Authorization Act for Fiscal Year 
2002 (division B of Public Law 107-107; 115 Stat. 1319) is 
amended to read as follows:
    ``(b) Conveyance and Transfer of Corea and Winter Harbor 
Properties Authorized.--(1) The Secretary of the Navy may 
convey, without consideration, to the State of Maine, any 
political subdivision of the State of Maine, or any tax-
supported agency in the State of Maine, all right, title, and 
interest of the United States in and to parcels of real 
property, including any improvements thereon and appurtenances 
thereto, comprising the former facilities of the Naval Security 
Group Activity, Winter Harbor, Maine, as follows:
            ``(A) The parcel consisting of approximately 50 
        acres known as the Corea Operations Site.
            ``(B) Three parcels consisting of approximately 23 
        acres and comprising family housing facilities.
    ``(2) The Secretary of the Navy may transfer to the 
administrative jurisdiction of the Secretary of the Interior a 
parcel of real property consisting of approximately 404 acres 
at the former Naval Security Group Activity, which is the 
balance of the real property comprising the Corea Operations 
Site. The Secretary of the Interior shall administer the 
property transferred under this paragraph as part of the 
National Wildlife Refuge System.''.
    (b) Exemption of Modified Conveyances from Federal 
Screening Requirement.--Such section is further amended--
            (1) by redesignating subsections (g) and (h) as 
        subsections (h) and (i), respectively; and
            (2) by inserting after subsection (f) the following 
        new subsection (g):
    ``(g) Exemption From Federal Screening.--Any conveyance 
authorized by subsection (b)(1) is exempt from the requirement 
to screen the property concerned for further Federal use 
pursuant to section 2696 of title 10, United States Code.''.
    (c) Conforming Amendments.--Subsections (c), (d), (e), (f), 
(h) (as redesignated), and (i) (as redesignated) of such 
section are amended by striking ``subsection (b)'' each place 
it appears and inserting ``subsection (b)(1)''.

SEC. 2833. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, MASSACHUSETTS.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the City of Chicopee, 
Massachusetts (in this section referred to as the ``City''), 
all right, title, and interest of the United States in and to a 
parcel of real property, including 133 housing units and other 
improvements thereon, consisting of approximately 30.38 acres 
located at Westover Air Reserve Base in Chicopee, 
Massachusetts, for the purpose of permitting the City to use 
the property for economic development and other public 
purposes.
    (b) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the City to reimburse the Secretary for 
the costs incurred by the Secretary to carry out the conveyance 
under subsection (a), including survey costs, costs related to 
environmental documentation (other than the environmental 
baseline survey), and other administrative costs related to the 
conveyance.
    (2) The Secretary shall require the City to reimburse the 
Secretary for any excess costs incurred by the Secretary for 
any environmental assessment, study, or analysis, or for any 
other excess costs incurred by the Secretary, in connection 
with the conveyance, if the excess costs were incurred as a 
result of a request by the City. In this paragraph, the term 
``excess costs'' means costs in excess of those costs 
considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall 
be credited to the fund or account that was used to cover the 
costs incurred by the Secretary in carrying out the conveyance. 
Amounts so credited shall be merged with amounts in such fund 
or account, and shall be available for the same purposes, and 
subject to the same conditions and limitations, as amounts in 
such fund or account.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2834. LAND CONVEYANCE, NAVAL STATION, NEWPORT, RHODE ISLAND.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the State of Rhode Island, or any political 
subdivision thereof, any or all right, title, and interest of 
the United States in and to a parcel of real property, together 
with improvements thereon, consisting of approximately 34 acres 
located in Melville, Rhode Island, and known as the Melville 
Marina site.
    (b) Consideration.--(1) As consideration for the conveyance 
of real property under subsection (a), the conveyee shall pay 
the United States an amount equal to the fair market value of 
the real property, as determined by the Secretary based on an 
appraisal of the real property acceptable to the Secretary.
    (2) The consideration received under paragraph (1) shall be 
deposited in the account established pursuant to section 572(b) 
of title 40, United States Code, and shall be available as 
provided for in that section.
    (c) Reimbursement for Costs of Conveyance.--(1) The 
Secretary may require the conveyee of the real property under 
subsection (a) to reimburse the Secretary for any costs 
incurred by the Secretary in carrying out the conveyance.
    (2) Any reimbursement for costs that is received under 
paragraph (1) shall be credited to the fund or account 
providing funds for such costs. Amounts so credited shall be 
merged with amounts in such fund or account, and shall be 
available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2835. LAND EXCHANGE AND BOUNDARY ADJUSTMENTS, MARINE CORPS BASE, 
                    QUANTICO, AND PRINCE WILLIAM FOREST PARK, VIRGINIA.

    (a) Land Exchange.--Administrative jurisdiction over 
certain lands at Prince William Forest Park, Virginia, and at 
the Marine Corps Base, Quantico, Virginia, shall be adjusted 
through the following actions:
            (1) The Secretary of the Navy shall transfer, 
        without reimbursement, to the administrative 
        jurisdiction of the Secretary of the Interior 
        approximately 352 acres of land, depicted as ``Lands 
        Transferred from Department of the Navy to Department 
        of the Interior'' on the map entitled ``Boundary 
        Adjustments Between Prince William Forest Park and 
        Marine Corps Base, Quantico'', numbered 860/80283, and 
        dated May 1, 2002.
            (2) The Secretary of the Interior shall transfer, 
        without reimbursement, to the administrative 
        jurisdiction of the Secretary of the Navy approximately 
        3,398 acres of land, depicted as ``Lands Transferred 
        from Department of the Interior to Department of the 
        Navy'' on the map described in paragraph (1).
    (b) Retention of Certain Land.--The Secretary of the 
Interior shall continue to administer approximately 1,346 acres 
of land, depicted as ``Lands Retained by Department of the 
Interior'' on the map described in subsection (a)(1). Effective 
on the date of the enactment of this Act, the special use 
permit dated March 16, 1972, which provides for the use of part 
of this land by the Marine Corps, shall no longer be in effect.
    (c) Subsequent Disposal of Land.--(1) If any of the land 
described in subsection (a)(1) or (b) is determined to be 
excess to the needs of the Department of the Interior, the 
Secretary of the Interior shall offer to transfer, without 
reimbursement, administrative jurisdiction over the land to the 
Secretary of the Navy.
    (2) If any of the land described in subsection (a)(2) is 
determined to be excess to the needs of the Department of the 
Navy, the Secretary of the Navy shall offer to transfer, 
without reimbursement, administrative jurisdiction over the 
land to the Secretary of the Interior.
    (3) If an offer made under this subsection is not accepted 
within 90 days, the land covered by the offer may be disposed 
of in accordance with the laws and regulations governing the 
disposal of excess property.
    (d) Boundary Modification and Administration.--(1) The 
boundaries of Prince William Forest Park and the Marine Corps 
Base, Quantico, shall be modified to reflect the land exchanges 
or disposals made under this section.
    (2) Land transferred to the Secretary of the Interior under 
subsection (a)(1) or retained under subsection (b) shall be 
administered as part of Prince William Forest Park in 
accordance with applicable laws and regulations.
    (e) Availability of Map.--The map described in subsection 
(a)(1) shall be on file and available for public inspection in 
the appropriate offices of the National Park Service, 
Department of the Interior.
    (f) Conforming Amendments.--The Act of June 22, 1948 
(Chapter 596; 62 Stat. 571), is amended--
            (1) by striking the first section and inserting the 
        following new section:

``SECTION 1. PRINCE WILLIAM FOREST PARK, VIRGINIA.

    ``Chopawamsic Park, which was established in 1933 as 
Chopawamsic Recreational Demonstration Area, shall be known as 
`Prince William Forest Park'.'';
            (2) in section 2--
                    (A) by striking ``That all'' and inserting 
                ``All''; and
                    (B) by striking ``the Chopawamsic Park'' 
                and inserting ``Prince William Forest Park''; 
                and
            (3) in section 3--
                    (A) by striking ``That the Secretary of the 
                Interior and the Secretary of the Navy be, and 
                they are hereby'' and inserting ``The Secretary 
                of the Interior is''; and
                    (B) by striking ``the Chopawamsic Park'' 
                both places it appears and inserting ``Prince 
                William Forest Park''.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2841. MODIFICATION OF LAND CONVEYANCE, LOS ANGELES AIR FORCE BASE, 
                    CALIFORNIA.

    Section 2861(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-433) is amended in the 
first sentence by striking ``10 years'' and inserting ``30 
years''.

SEC. 2842. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

    (a) Exchange Authorized.--For the purpose of facilitating 
the acquisition of real property suitable for the construction 
of military family housing for Buckley Air Force Base, 
Colorado, the Secretary of the Air Force may convey to the 
State of Colorado (in this section referred to as the 
``State'') all right, title, and interest of the United States 
in and to a parcel of real property, including improvements 
thereon, consisting of all or part of the Watkins 
Communications Site in Arapahoe County, Colorado.
    (b) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (a) the State shall convey to the 
United States all right, title, and interest of the State in 
and to a parcel of real property, including improvements 
thereon, consisting of approximately 41 acres that is owned by 
the State and is contiguous to Buckley Air Force Base, 
Colorado.
    (2) The Secretary shall have jurisdiction over the real 
property conveyed under paragraph (1).
    (3) Upon conveyance to the United States under paragraph 
(1), the real property conveyed under that paragraph is 
withdrawn from all forms of appropriation under the general 
land laws, including the mining laws and mineral and geothermal 
leasing laws.
    (c) Description of Property.--The exact acreage and legal 
description of the parcels of real property to be conveyed 
under this section shall be determined by surveys satisfactory 
to the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2843. LAND CONVEYANCES, WENDOVER AIR FORCE BASE AUXILIARY FIELD, 
                    NEVADA.

    (a) Conveyances Authorized to West Wendover, Nevada.--(1) 
The Secretary of the Interior may convey, without 
consideration, to the City of West Wendover, Nevada, all right, 
title, and interest of the United States in and to the 
following:
            (A) The lands at Wendover Air Force Base Auxiliary 
        Field, Nevada, identified in Easement No. AFMC-HL-2-00-
        334 that are determined by the Secretary of the Air 
        Force to be no longer required.
            (B) The lands at Wendover Air Force Base Auxiliary 
        Field identified for disposition on the map entitled 
        ``West Wendover, Nevada-Excess'', dated January 5, 
        2001, that are determined by the Secretary of the Air 
        Force to be no longer required.
    (2) The purposes of the conveyances under this subsection 
are--
            (A) to permit the establishment and maintenance of 
        runway protection zones; and
            (B) to provide for the development of an industrial 
        park and related infrastructure.
    (3) The map referred to in paragraph (1)(B) shall be on 
file and available for public inspection in the offices of the 
Director of the Bureau of Land Management and the Elko District 
Office of the Bureau of Land Management.
    (b) Conveyance Authorized to Tooele County, Utah.--(1) The 
Secretary of the Interior may convey, without consideration, to 
Tooele County, Utah, all right, title, and interest of the 
United States in and to the lands at Wendover Air Force Base 
Auxiliary Field identified in Easement No. AFMC-HL-2-00-318 
that are determined by the Secretary of the Air Force to be no 
longer required.
    (2) The purpose of the conveyance under this subsection is 
to permit the establishment and maintenance of runway 
protection zones and an aircraft accident potential protection 
zone as necessitated by continued military aircraft operations 
at the Utah Test and Training Range.
    (c) Phased Conveyances.--The land conveyances authorized by 
subsections (a) and (b) may be conducted in phases. To the 
extent practicable, the first phase of the conveyances should 
involve at least 3,000 acres.
    (d) Management of Conveyed Lands.--The lands conveyed under 
subsections (a) and (b) shall be managed by the City of West 
Wendover, Nevada, City of Wendover, Utah, Tooele County, Utah, 
and Elko County, Nevada--
            (1) in accordance with the provisions of an 
        Interlocal Memorandum of Agreement entered into between 
        the Cities of West Wendover, Nevada, and Wendover, 
        Utah, Tooele County, Utah, and Elko County, Nevada, 
        providing for the coordinated management and 
        development of the lands for the economic benefit of 
        both communities; and
            (2) in a manner that is consistent with such 
        provisions of the easements referred to subsections (a) 
        and (b) that, as jointly determined by the Secretary of 
        the Air Force and Secretary of the Interior, remain 
        applicable and relevant to the operation and management 
        of the lands following conveyance and are consistent 
        with the provisions of this section.
    (e) Additional Terms and Conditions.--The Secretary of the 
Air Force and the Secretary of the Interior may jointly require 
such additional terms and conditions in connection with the 
conveyances authorized by subsections (a) and (b) as the 
Secretaries consider appropriate to protect the interests of 
the United States.

                       Subtitle D--Other Matters

SEC. 2851. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, VIRGINIA.

    (a) Modification of Authority for Transfer From Navy 
Annex.--Section 2881 of the Military Construction Authorization 
Act for Fiscal Year 2000 (113 Stat. 879) is amended--
            (1) in subsection (b)(2), as amended by section 
        2863(f) of the Military Construction Authorization Act 
        for Fiscal Year 2002 (division B of Public Law 107-107; 
        115 Stat. 1332), by striking ``as a site for--'' and 
        all that follows and inserting ``as a site for such 
        other memorials or museums that the Secretary considers 
        compatible with Arlington National Cemetery and the Air 
        Force Memorial.''; and
            (2) in subsection (d)--
                    (A) in paragraph (2), by striking ``the 
                recommendation (if any) of the Commission on 
                the National Military Museum to use a portion 
                of the Navy Annex property as the site for the 
                National Military Museum'' and inserting ``the 
                use of the acres reserved under subsection 
                (b)(2) for a memorial or museum''; and
                    (B) in paragraph (4), by striking ``the 
                date on which the Commission on the National 
                Military Museum submits to Congress its report 
                under section 2903'' and inserting ``the date 
                of the enactment of the Bob Stump National 
                Defense Authorization Act for Fiscal Year 
                2003''.
    (b) Construction of Amendments.--The amendments made by 
subsection (a) may not be construed to delay the establishment 
of the United States Air Force Memorial authorized by section 
2863 of the Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107-107; 115 Stat. 1330).

SEC. 2852. SALE OF EXCESS TREATED WATER AND WASTEWATER TREATMENT 
                    CAPACITY, MARINE CORPS BASE, CAMP LEJEUNE, NORTH 
                    CAROLINA.

    (a) Sale Authorized.--The Secretary of the Navy may provide 
to Onslow County, North Carolina, or any authority or political 
subdivision organized under the laws of North Carolina to 
provide public water or sewage services in Onslow County (in 
this section referred to as the ``County''), treated water and 
wastewater treatment services from facilities at Marine Corps 
Base, Camp Lejeune, North Carolina, if the Secretary determines 
that the provision of these utility services is in the public 
interest and will not interfere with current or future 
operations at Camp Lejeune.
    (b) Inapplicability of Certain Requirements.--Section 2686 
of title 10, United States Code, shall not apply to the 
provision of public water or sewage services authorized by 
subsection (a).
    (c) Consideration.--As consideration for the receipt of 
public water or sewage services under subsection (a), the 
County shall pay to the Secretary an amount (in cash or in 
kind) equal to the fair market value of the services. Amounts 
received in cash shall be credited to the base operation and 
maintenance accounts of Camp Lejeune.
    (d) Expansion.--The Secretary may make minor expansions and 
extensions and permit connections to the public water or sewage 
systems of the County in order to furnish the services 
authorized under subsection (a). The Secretary shall restrict 
the provision of services to the County to those areas in the 
County where residential development would be compatible with 
current and future operations at Camp Lejeune.
    (e) Administrative Expenses.--(1) The Secretary may require 
the County to reimburse the Secretary for the costs incurred by 
the Secretary to provide public water or sewage services to the 
County under subsection (a).
    (2) Section 2695(c) of title 10 United States Code, shall 
apply to any amount received under this subsection.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the provision of public water or sewage services under this 
section as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2853. CONVEYANCE OF REAL PROPERTY, ADAK NAVAL COMPLEX, ALASKA, AND 
                    RELATED LAND CONVEYANCES.

    Section 6 of the Act entitled ``An Act to ratify an 
agreement between The Aleut Corporation and the United States 
of America to exchange land rights received under the Alaska 
Native Claims Settlement Act for certain land interests on Adak 
Island, and for other purposes.'', approved October 11, 2002 
(Public Law 107-239), is amended by adding at the end the 
following new subsection:
    ``(f) For purposes of section 21(c) of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1620(c)), all property 
received by the Aleut Corporation under this Act shall be given 
a tax basis equal to fair value on the date of the transfer. 
Fair value shall be determined by replacement cost 
appraisal.''.

SEC. 2854. SPECIAL REQUIREMENT FOR ADDING MILITARY INSTALLATION TO 
                    CLOSURE LIST.

    Section 2914(d) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note), as added by section 3003 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107; 155 Stat, 1346), is amended--
            (1) by redesignating paragraph (5) as paragraph 
        (6); and
            (2) by inserting after paragraph (4) the following 
        new paragraph (5):
            ``(5) Site visit.--In the report required under 
        section 2903(d)(2)(A) that is to be transmitted under 
        paragraph (1), the Commission may not recommend the 
        closure of a military installation not recommended for 
        closure by the Secretary under subsection (a) unless at 
        least two members of the Commission visit the 
        installation before the date of the transmittal of the 
        report.''.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3141. Annual assessments and reports to the President and Congress 
          regarding the condition of the United States nuclear weapons 
          stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for resumption 
          by the United States of underground nuclear weapons tests.
Sec. 3143. Requirements for specific request for new or modified nuclear 
          weapons.
Sec. 3144. Database to track notification and resolution phases of 
          Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
          Penetrator program pending submission of report.

                    Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
          Department of Defense's Cooperative Threat Reduction program 
          relating to elimination of weapons grade plutonium production 
          in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
          programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
          protection, control, and accounting programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
          radiological, chemical, or biological weapons.
Sec. 3155. Cooperative program on research, development, and 
          demonstration of technology regarding nuclear or radiological 
          terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
          Control, and Accounting program of the Department of Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials and 
          security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
          materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
          Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
          enriched uranium and plutonium.

                        Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
          nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
          engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
          safety, and security of the United States nuclear stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
          accelerate the reduction of environmental risks and challenges 
          posed by the legacy of the Cold War.

 Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
          Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
          materials at Savannah River Site.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated to the Department of Energy for 
fiscal year 2003 for the activities of the National Nuclear 
Security Administration in carrying out programs necessary for 
national security in the amount of $8,038,490,000, to be 
allocated as follows:
            (1) For weapons activities, $5,901,641,000.
            (2) For defense nuclear nonproliferation 
        activities, $1,104,130,000.
            (3) For naval reactors, $706,790,000.
            (4) For the Office of the Administrator for Nuclear 
        Security, $325,929,000.
    (b) Authorization of New Plant Projects.--From funds 
referred to in subsection (a) that are available for carrying 
out plant projects, the Secretary of Energy may carry out new 
plant projects as follows:
            (1) For weapons activities, the following new plant 
        projects:
                    Project 03-D-101, Sandia underground 
                reactor facility (SURF), Sandia National 
                Laboratories, Albuquerque, New Mexico, 
                $2,000,000.
                    Project 03-D-103, project engineering and 
                design, various locations, $17,039,000.
                    Project 03-D-121, gas transfer capacity 
                expansion, Kansas City Plant, Kansas City, 
                Missouri, $4,000,000.
                    Project 03-D-122, prototype purification 
                facility, Y-12 plant, Oak Ridge, Tennessee, 
                $20,800,000.
                    Project 03-D-123, special nuclear materials 
                requalification, Pantex plant, Amarillo, Texas, 
                $3,000,000.
            (2) For naval reactors, the following new plant 
        project:
                    Project 03-D-201, cleanroom technology 
                facility, Bettis Atomic Power Laboratory, West 
                Mifflin, Pennsylvania, $7,200,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated to the Department of Energy for 
fiscal year 2003 for environmental management activities in 
carrying out programs necessary for national security in the 
amount of $6,759,846,000, to be allocated as follows:
            (1) For defense environmental restoration and waste 
        management, $4,510,133,000.
            (2) For defense environmental management cleanup 
        reform in carrying out environmental restoration and 
        waste management activities necessary for national 
        security programs, $982,000,000.
            (3) For defense facilities closure projects, 
        $1,109,314,000.
            (4) For defense environmental management 
        privatization, $158,399,000.
    (b) Authorization of New Plant Projects.--From funds 
referred to in subsection (a) that are available for carrying 
out plant projects, the Secretary of Energy may carry out new 
plant projects as follows:
            (1) For environmental restoration and waste 
        management activities, the following new plant project:
                    Project 03-D-403, immobilized high-level 
                waste interim storage facility, Richland, 
                Washington, $6,363,000.
            (2) For defense environmental management cleanup 
        reform, the following new plant project:
                    Project 03-D-414, project engineering and 
                design, various locations, $8,800,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2003 for other defense 
activities in carrying out programs necessary for national 
security in the amount of $462,664,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2003 for defense nuclear 
waste disposal for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10222(c)) in the amount of $315,000,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3141. ANNUAL ASSESSMENTS AND REPORTS TO THE PRESIDENT AND CONGRESS 
                    REGARDING THE CONDITION OF THE UNITED STATES 
                    NUCLEAR WEAPONS STOCKPILE.

    (a) Annual Assessments Required.--For each nuclear weapon 
type in the stockpile of the United States, each official 
specified in subsection (b) on an annual basis shall, to the 
extent such official is directly responsible for the safety, 
reliability, performance, or military effectiveness of that 
nuclear weapon type, complete an assessment of the safety, 
reliability, performance, or military effectiveness (as the 
case may be) of that nuclear weapon type.
    (b) Covered Officials.--The officials referred to in 
subsection (a) are the following:
            (1) The head of each national security laboratory.
            (2) The commander of the United States Strategic 
        Command.
    (c) Use of Teams of Experts for Assessments.--The head of 
each national security laboratory shall establish and use one 
or more teams of experts, known as ``red teams'', to assist in 
the assessments required by subsection (a). Each such team 
shall include experts from both of the other national security 
laboratories. Each such team for a national security laboratory 
shall--
            (1) review the matters covered by the assessments 
        under subsection (a) performed by the head of that 
        laboratory;
            (2) subject such matters to challenge; and
            (3) submit the results of such review and 
        challenge, together with the findings and 
        recommendations of such team with respect to such 
        review and challenge, to the head of that laboratory.
    (d) Report on Assessments.--Not later than December 1 of 
each year, each official specified in subsection (b) shall 
submit to the Secretary concerned, and to the Nuclear Weapons 
Council, a report on the assessments that such official was 
required by subsection (a) to complete. The report shall 
include the following:
            (1) The results of each such assessment.
            (2)(A) Such official's determination as to whether 
        or not one or more underground nuclear tests are 
        necessary to resolve any issues identified in the 
        assessments and, if so--
                    (i) an identification of the specific 
                underground nuclear tests that are necessary to 
                resolve such issues; and
                    (ii) a discussion of why options other than 
                an underground nuclear test are not available 
                or would not resolve such issues.
            (B) An identification of the specific underground 
        nuclear tests which, while not necessary, might have 
        value in resolving any such issues and a discussion of 
        the anticipated value of conducting such tests.
            (C) Such official's determination as to the 
        readiness of the United States to conduct the 
        underground nuclear tests identified under 
        subparagraphs (A)(i) and (B), if directed by the 
        President to do so.
            (3) In the case of a report submitted by the head 
        of a national security laboratory--
                    (A) a concise statement regarding the 
                adequacy of the science-based tools and methods 
                being used to determine the matters covered by 
                the assessments;
                    (B) a concise statement regarding the 
                adequacy of the tools and methods employed by 
                the manufacturing infrastructure required by 
                section 3137 of the National Defense 
                Authorization Act for Fiscal Year 1996 (42 
                U.S.C. 2121 note) to identify and fix any 
                inadequacy with respect to the matters covered 
                by the assessments; and
                    (C) a concise summary of the findings and 
                recommendations of any teams under subsection 
                (c) that relate to the assessments, together 
                with a discussion of those findings and 
                recommendations.
            (4) In the case of a report submitted by the 
        Commander of the United States Strategic Command, a 
        discussion of the relative merits of other nuclear 
        weapon types (if any), or compensatory measures (if 
        any) that could be taken, that could enable 
        accomplishment of the missions of the nuclear weapon 
        types to which the assessments relate, should such 
        assessments identify any deficiency with respect to 
        such nuclear weapon types.
            (5) An identification and discussion of any matter 
        having an adverse effect on the capability of the 
        official submitting the report to accurately determine 
        the matters covered by the assessments.
    (e) Submittals to the President and Congress.--(1) Not 
later than March 1 of each year, the Secretary of Defense and 
the Secretary of Energy shall submit to the President--
            (A) each report, without change, submitted to 
        either Secretary under subsection (d) during the 
        preceding year;
            (B) any comments that the Secretaries individually 
        or jointly consider appropriate with respect to each 
        such report;
            (C) the conclusions that the Secretaries 
        individually or jointly reach as to the safety, 
        reliability, performance, and military effectiveness of 
        the nuclear weapons stockpile of the United States; and
            (D) any other information that the Secretaries 
        individually or jointly consider appropriate.
    (2) Not later than March 15 of each year, the President 
shall forward to Congress the matters received by the President 
under paragraph (1) for that year, together with any comments 
the President considers appropriate.
    (f) Classified Form.--Each submittal under subsection (e) 
shall be in classified form only, with the classification level 
required for each portion of such submittal marked 
appropriately.
    (g) Definitions.--In this section:
            (1) The term ``national security laboratory'' has 
        the meaning given such term in section 3281 of the 
        National Nuclear Security Administration Act (50 U.S.C. 
        2471).
            (2) The term ``Secretary concerned'' means--
                    (A) the Secretary of Energy, with respect 
                to matters concerning the Department of Energy; 
                and
                    (B) the Secretary of Defense, with respect 
                to matters concerning the Department of 
                Defense.
    (h) First Submissions.--(1) The first submissions made 
under subsection (d) shall be the submissions required to be 
made in 2003.
    (2) The first submissions made under subsection (e) shall 
be the submissions required to be made in 2004.

SEC. 3142. PLANS FOR ACHIEVING ENHANCED READINESS POSTURE FOR 
                    RESUMPTION BY THE UNITED STATES OF UNDERGROUND 
                    NUCLEAR WEAPONS TESTS.

    (a) Plans Required.--The Secretary of Energy, in 
consultation with the Administrator for Nuclear Security, shall 
prepare plans for achieving, not later than one year after the 
date on which the plans are submitted under subsection (c), 
readiness postures of six months, 12 months, 18 months, and 24 
months for resumption by the United States of underground 
nuclear weapons tests.
    (b) Readiness Posture.--For purposes of this section, a 
readiness posture of a specified number of months for 
resumption by the United States of underground nuclear weapons 
tests is achieved when the Department of Energy has the 
capability to resume such tests, if directed by the President 
to resume such tests, not later than the specified number of 
months after the date on which the President so directs.
    (c) Report.--The Secretary shall include with the budget 
justification materials submitted to Congress in support of the 
Department of Energy budget for fiscal year 2004 (as submitted 
with the budget of the President under section 1105(a) of title 
31, United States Code) a report on the plans required by 
subsection (a). The report shall include--
            (1) an assessment of the current readiness posture 
        for resumption by the United States of underground 
        nuclear weapons tests;
            (2) the plans required by subsection (a) and, for 
        each such plan, the estimated cost for implementing 
        such plan and an estimate of the annual cost of 
        maintaining the readiness posture to which the plan 
        relates; and
            (3) the recommendation of the Secretary, developed 
        in consultation with the Secretary of Defense, as to 
        the optimal readiness posture for resumption by the 
        United States of underground nuclear weapons tests, 
        including the basis for that recommendation.

SEC. 3143. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR MODIFIED 
                    NUCLEAR WEAPONS.

    (a) Requirement for Request for Funds for Development.--(1) 
In any fiscal year after fiscal year 2002 in which the 
Secretary of Energy plans to carry out activities described in 
paragraph (2) relating to the development of a new nuclear 
weapon or modified nuclear weapon, the Secretary shall 
specifically request funds for such activities in the budget of 
the President for that fiscal year under section 1105(a) of 
title 31, United States Code.
    (2) The activities described in this paragraph are as 
follows:
            (A) The conduct, or provision for conduct, of 
        research and development which could lead to the 
        production of a new nuclear weapon by the United 
        States.
            (B) The conduct, or provision for conduct, of 
        engineering or manufacturing to carry out the 
        production of a new nuclear weapon by the United 
        States.
            (C) The conduct, or provision for conduct, of 
        research and development which could lead to the 
        production of a modified nuclear weapon by the United 
        States.
            (D) The conduct, or provision for conduct, of 
        engineering or manufacturing to carry out the 
        production of a modified nuclear weapon by the United 
        States.
    (b) Budget Request Format.--The Secretary shall include in 
a request for funds under subsection (a) the following:
            (1) In the case of funds for activities described 
        in subparagraph (A) or (C) of subsection (a)(2), a 
        single dedicated line item for all such activities for 
        new nuclear weapons or modified nuclear weapons that 
        are in phase 1, 2, or 2A or phase 6.1, 6.2, or 6.2A (as 
        the case may be), or any concept work prior to phase 1 
        or 6.1 (as the case may be), of the nuclear weapons 
        acquisition process.
            (2) In the case of funds for activities described 
        in subparagraph (B) or (D) of subsection (a)(2), a 
        dedicated line item for each such activity for a new 
        nuclear weapon or modified nuclear weapon that is in 
        phase 3 or higher or phase 6.3 or higher (as the case 
        may be) of the nuclear weapons acquisition process.
    (c) Exception.--Subsection (a) shall not apply to funds for 
purposes of conducting, or providing for the conduct of, 
research and development, or manufacturing and engineering, 
determined by the Secretary to be necessary--
            (1) for the nuclear weapons life extension program;
            (2) to modify an existing nuclear weapon solely to 
        address safety or reliability concerns; or
            (3) to address proliferation concerns.
    (d) Definitions.--In this section:
            (1) The term ``life extension program'' means the 
        program to repair or replace non-nuclear components, or 
        to modify the pit or canned subassembly, of nuclear 
        weapons that are in the nuclear weapons stockpile on 
        the date of the enactment of this Act in order to 
        assure that such nuclear weapons retain the ability to 
        meet the military requirements applicable to such 
        nuclear weapons when first placed in the nuclear 
        weapons stockpile.
            (2) The term ``modified nuclear weapon'' means a 
        nuclear weapon that contains a pit or canned 
        subassembly, either of which--
                    (A) is in the nuclear weapons stockpile as 
                of the date of the enactment of this Act; and
                    (B) is being modified in order to meet a 
                military requirement that is other than the 
                military requirements applicable to such 
                nuclear weapon when first placed in the nuclear 
                weapons stockpile.
            (3) The term ``new nuclear weapon'' means a nuclear 
        weapon that contains a pit or canned subassembly, 
        either of which is neither--
                    (A) in the nuclear weapons stockpile on the 
                date of the enactment of this Act; nor
                    (B) in production as of that date.

SEC. 3144. DATABASE TO TRACK NOTIFICATION AND RESOLUTION PHASES OF 
                    SIGNIFICANT FINDING INVESTIGATIONS.

    (a) Availability of Funds for Database.--Amounts authorized 
to be appropriated by section 3101(a)(1) for the National 
Nuclear Security Administration for weapons activities shall be 
available to the Deputy Administrator for Nuclear Security for 
Defense Programs for the development and implementation of a 
database for all national security laboratories to track the 
notification and resolution phases of Significant Finding 
Investigations (SFIs). The purpose of the database is to 
facilitate the monitoring of the progress and accountability of 
the national security laboratories in Significant Finding 
Investigations.
    (b) Implementation Deadline.--The database required by 
subsection (a) shall be implemented not later than September 
30, 2003.
    (c) National Security Laboratory Defined.--In this section, 
the term ``national security laboratory'' has the meaning given 
that term in section 3281(1) of the National Nuclear Security 
Administration Act (title XXXII of Public Law 106-65; 113 Stat. 
968; 50 U.S.C. 2471(1)).

SEC. 3145. DEFENSE ENVIRONMENTAL MANAGEMENT CLEANUP REFORM PROGRAM.

    (a) Program Required.--From funds made available pursuant 
to section 3102(a)(2) for defense environmental management 
cleanup reform, the Secretary of Energy shall carry out a 
program to reform DOE environmental management activities. In 
carrying out the program, the Secretary shall allocate, to each 
site for which the Secretary has submitted to the congressional 
defense committees a site performance management plan, the 
amount of those funds that such plan requires.
    (b) Transfer and Merger of Funds.--(1) Funds so allocated 
shall, notwithstanding section 3624, be transferred to the 
account for DOE environmental management activities and, 
subject to paragraph (2) and subsection (c), shall be merged 
with and be available for the same purposes and for the same 
period as the funds available in such account. The authority 
provided by section 3629 shall apply to funds so transferred.
    (2) No funds so allocated may be obligated or expended 
until 30 days after the Secretary submits to the congressional 
defense committees a description of the activities to be 
carried out at each site to which funds are so allocated.
    (c) Limitation on Use of All Merged Funds.--Upon a transfer 
and merger of funds under subsection (b), all funds in the 
merged account that are available with respect to the site may 
be used only to carry out the site performance management plan 
for the site.
    (d) Site Performance Management Plan Defined.--For purposes 
of this section, a site performance management plan for a site 
is a plan, agreed to by the applicable Federal and State 
agencies with regulatory jurisdiction with respect to the site, 
for the performance of activities to accelerate the reduction 
of environmental risk in connection with, and to accelerate the 
environmental cleanup of, the site.
    (e) DOE Environmental Management Activities Defined.--For 
purposes of this section, the term ``DOE environmental 
management activities'' means environmental restoration and 
waste management activities of the Department of Energy in 
carrying out programs necessary for national security.

SEC. 3146. LIMITATION ON OBLIGATION OF FUNDS FOR ROBUST NUCLEAR EARTH 
                    PENETRATOR PROGRAM PENDING SUBMISSION OF REPORT.

    (a) Report-and-Wait Requirement.--None of the funds made 
available to the Secretary of Energy for fiscal year 2003 for 
the Robust Nuclear Earth Penetrator program may be obligated 
until--
            (1) the Secretary of Defense submits to the 
        Committees on Armed Services of the Senate and House of 
        Representatives a report described in subsection (b); 
        and
            (2) a period of 30 days has passed after such 
        report is received by those committees.
    (b) Report.--A report under subsection (a)(1) is a report 
on the Robust Nuclear Earth Penetrator program, prepared by the 
Secretary of Defense in consultation with the Secretary of 
Energy, that sets forth the following:
            (1) The military requirements for the Robust 
        Nuclear Earth Penetrator.
            (2) The nuclear weapons employment policy regarding 
        the Robust Nuclear Earth Penetrator.
            (3) A detailed description of the categories or 
        types of targets that the Robust Nuclear Earth 
        Penetrator is designed to hold at risk.
            (4) An assessment of the ability of conventional 
        weapons to defeat the same categories and types of 
        targets as are described pursuant to paragraph (3).

                   Subtitle C--Proliferation Matters

SEC. 3151. TRANSFER TO NATIONAL NUCLEAR SECURITY ADMINISTRATION OF 
                    DEPARTMENT OF DEFENSE'S COOPERATIVE THREAT 
                    REDUCTION PROGRAM RELATING TO ELIMINATION OF 
                    WEAPONS GRADE PLUTONIUM PRODUCTION IN RUSSIA.

    (a) Transfer of Program.--There are hereby transferred to 
the Administrator for Nuclear Security the following:
            (1) The program, within the Cooperative Threat 
        Reduction program of the Department of Defense, 
        relating to the elimination of weapons grade plutonium 
        production in Russia.
            (2) All functions, powers, duties, and activities 
        of that program performed before the date of the 
        enactment of this Act by the Department of Defense.
    (b) Transfer of Assets.--(1) Notwithstanding any 
restriction or limitation in law on the availability of 
Cooperative Threat Reduction funds specified in paragraph (2), 
so much of the property, records, and unexpended balances of 
appropriations, allocations, and other funds employed, used, 
held, available, or to be made available in connection with the 
program transferred by subsection (a) are transferred to the 
Administrator for use in connection with the program 
transferred.
    (2) The Cooperative Threat Reduction funds specified in 
this paragraph are the following:
            (A) Fiscal year 2002 Cooperative Threat Reduction 
        funds, as specified in section 1301(b) of the National 
        Defense Authorization Act for Fiscal Year 2002 (Public 
        Law 107-107; 115 Stat. 1254; 22 U.S.C. 5952 note).
            (B) Fiscal year 2001 Cooperative Threat Reduction 
        funds, as specified in section 1301(b) of the Floyd D. 
        Spence National Defense Authorization Act for Fiscal 
        Year 2001 (as enacted into law by Public Law 106-398; 
        114 Stat. 1654A-339; 22 U.S.C. 5959 note).
            (C) Fiscal year 2000 Cooperative Threat Reduction 
        funds, as specified in section 1301(b) of the National 
        Defense Authorization Act for Fiscal Year 2000 (Public 
        Law 106-65; 113 Stat. 792; 22 U.S.C. 5952 note).
    (c) Availability of Transferred Funds.--(1) Notwithstanding 
any restriction or limitation in law on the availability of 
Cooperative Threat Reduction funds specified in subsection 
(b)(2), the Cooperative Threat Reduction funds transferred 
under subsection (b) for the program referred to in subsection 
(a) shall be available for activities as follows:
            (A) To design and construct, refurbish, or both, 
        fossil fuel energy plants in Russia that provide 
        alternative sources of energy to the energy plants in 
        Russia that produce weapons grade plutonium.
            (B) To carry out limited safety upgrades of not 
        more than three energy plants in Russia that produce 
        weapons grade plutonium, provided that such upgrades do 
        not extend the life of those plants.
    (2) Amounts available under paragraph (1) for activities 
referred to in that paragraph shall remain available for 
obligation for three fiscal years.
    (d) Limitation.--(1) Of the amounts authorized to be 
appropriated by this title or any other Act for the program 
referred to in subsection (a), the Administrator for Nuclear 
Security may not obligate any funds for construction, or 
obligate or expend more than $100,000,000 for that program, 
until 30 days after the later of--
            (A) the date on which the Administrator submits to 
        the congressional defense committees, the Committee on 
        International Relations of the House of 
        Representatives, and the Committee on Foreign Relations 
        of the Senate, a copy of an agreement or agreements 
        entered into between the United States Government and 
        the Government of the Russian Federation to shut down 
        the three plutonium-producing reactors in Russia as 
        specified under paragraph (2); and
            (B) the date on which the Administrator submits to 
        the committees specified in subparagraph (A) a report 
        on a plan to achieve international participation in the 
        program referred to in subsection (a), including cost 
        sharing.
    (2) The agreement (or agreements) under paragraph (1)(A) 
shall contain--
            (A) a commitment to shut down the three plutonium-
        producing reactors;
            (B) the date on which each such reactor will be 
        shut down;
            (C) a schedule and milestones for each such reactor 
        to complete the shutdown of such reactor by the date 
        specified under subparagraph (B);
            (D) a schedule and milestones for refurbishment or 
        construction of fossil fuel energy plants to be 
        undertaken by the Government of the Russian Federation 
        in support of the program;
            (E) an arrangement for access to sites and 
        facilities necessary to meet such schedules and 
        milestones;
            (F) an arrangement for audit and examination 
        procedures in order to evaluate progress in meeting 
        such schedules and milestones; and
            (G) any cost sharing arrangements between the 
        United States Government and the Government of the 
        Russian Federation in undertaking activities under such 
        agreement (or agreements).

SEC. 3152. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION OF FUNDS FOR 
                    PROGRAMS ON FISSILE MATERIALS IN RUSSIA.

    Section 3131 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 617; 22 U.S.C. 
5952 note) is amended--
            (1) in subsection (a), by striking ``(a) 
        Authority.--''; and
            (2) by striking subsection (b).

SEC. 3153. EXPANSION OF ANNUAL REPORTS ON STATUS OF NUCLEAR MATERIALS 
                    PROTECTION, CONTROL, AND ACCOUNTING PROGRAMS.

    (a) Covered Programs.--Subsection (a) of section 3171 of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-475; 22 U.S.C. 5952 note) is amended by 
striking ``Russia that'' and inserting ``countries where such 
materials''.
    (b) Report Contents.--Subsection (b) of that section is 
amended--
            (1) in paragraph (1) by inserting ``in each country 
        covered by subsection (a)'' after ``locations,'';
            (2) in paragraph (2), by striking ``in Russia'' and 
        inserting ``in each such country'';
            (3) in paragraph (3), by inserting ``in each such 
        country'' after ``subsection (a)''; and
            (4) in paragraph (5), by striking ``by total amount 
        and by amount per fiscal year'' and inserting ``by 
        total amount per country and by amount per fiscal year 
        per country''.

SEC. 3154. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, 
                    RADIOLOGICAL, CHEMICAL, OR BIOLOGICAL WEAPONS.

    (a) Extension of Testing.--Section 1415 of the Defense 
Against Weapons of Mass Destruction Act of 1996 (title XIV of 
Public Law 104-201; 110 Stat. 2720; 50 U.S.C. 2315) is 
amended--
            (1) in subsection (a)(2), by striking ``of five 
        successive fiscal years beginning with fiscal year 
        1997'' and inserting ``of fiscal years 1997 through 
        2013''; and
            (2) in subsection (b)(2), by striking ``of five 
        successive fiscal years beginning with fiscal year 
        1997'' and inserting ``of fiscal years 1997 through 
        2013''.
    (b) Construction of Extension With Designation of Attorney 
General as Lead Official.--The amendments made by subsection 
(a) may not be construed as modifying the designation of the 
President titled ``Designation of the Attorney General as the 
Lead Official for the Emergency Response Assistance Program 
Under Sections 1412 and 1415 of the National Defense 
Authorization Act for Fiscal Year 1997'', dated April 6, 2000, 
designating the Attorney General to assume programmatic and 
funding responsibilities for the Emergency Response Assistance 
Program under sections 1412 and 1415 of the Defense Against 
Weapons of Mass Destruction Act of 1996 (title XIV of the 
National Defense Authorization Act for Fiscal Year 1997).

SEC. 3155. COOPERATIVE PROGRAM ON RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION OF TECHNOLOGY REGARDING NUCLEAR OR 
                    RADIOLOGICAL TERRORISM.

    (a) Program Required.--The Administrator for Nuclear 
Security shall carry out with the Russian Federation a 
cooperative program on the research, development, and 
demonstration of technologies for protection from and response 
to nuclear or radiological terrorism.
    (b) Program Elements.--In carrying out the program required 
by subsection (a), the Administrator shall--
            (1) conduct research and development of technology 
        for protection from nuclear or radiological terrorism, 
        including technology for the detection, identification, 
        assessment, control, and disposition of radiological 
        materials that could be used for nuclear terrorism; and
            (2) provide, where feasible, for the demonstration 
        to other countries of technologies or methodologies on 
        matters relating to nuclear or radiological terrorism, 
        including--
                    (A) the demonstration of technologies 
                developed under the program to respond to 
                nuclear or radiological terrorism;
                    (B) the demonstration of technologies 
                developed under the program for the disposal of 
                radioactive materials;
                    (C) the demonstration of methodologies 
                developed under the program for use in 
                evaluating the radiological threat of 
                radiological sources identified as not under 
                current accounting programs in the audit report 
                of the Inspector General of the Department of 
                Energy titled ``Accounting for Sealed Sources 
                of Nuclear Material Provided to Foreign 
                Countries'' (DOE/IG-0546);
                    (D) in coordination with the Nuclear 
                Regulatory Commission, the demonstration of 
                methodologies developed under the program to 
                facilitate the development of a regulatory 
                framework for licensing and controlling 
                radioactive sources; and
                    (E) in coordination with the Office of 
                Environment, Safety, and Health of the 
                Department of Energy, the demonstration of 
                methodologies developed under the program to 
                facilitate development of consistent criteria 
                for screening international transfers of 
                radiological materials.
    (c) Consultation.--In carrying out activities in accordance 
with subsection (b)(2), the Administrator shall consult with--
            (1) the Secretary of Defense, Secretary of State, 
        and Secretary of Commerce; and
            (2) the International Atomic Energy Agency.
    (d) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(a)(2) for the Department of Energy 
for the National Nuclear Security Administration for defense 
nuclear nonproliferation, up to $15,000,000 may be available 
for carrying out this section.

SEC. 3156. MATTERS RELATING TO THE INTERNATIONAL MATERIALS PROTECTION, 
                    CONTROL, AND ACCOUNTING PROGRAM OF THE DEPARTMENT 
                    OF ENERGY.

    (a) Radiological Dispersal Device Materials Protection, 
Control, and Accounting.--The Secretary of Energy may establish 
within the International Materials Protection, Control, and 
Accounting program of the Department of Energy a program on the 
protection, control, and accounting of materials usable in 
radiological dispersal devices. In establishing such program, 
the Secretary shall--
            (1) identify the sites and radiological materials 
        to be covered by such program;
            (2) carry out a risk assessment of such 
        radiological materials; and
            (3) identify and establish the costs of and 
        schedules for such program.
    (b) Revised Focus for Materials Protection, Control, and 
Accounting Program of Russian Federation.--(1) The Secretary of 
Energy shall work cooperatively with the Russian Federation to 
develop, as soon as practicable but not later than January 1, 
2013, a sustainable nuclear materials protection, control, and 
accounting system for the nuclear materials of the Russian 
Federation that is supported solely by the Russian Federation.
    (2) The Secretary shall work with the Russian Federation to 
identify various alternatives to provide the United States 
adequate transparency in the nuclear materials protection, 
control, and accounting program of the Russian Federation to 
assure that such program is meeting applicable goals for 
nuclear materials protection, control, and accounting.
    (c) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(a)(2) for the Department of Energy 
for the National Nuclear Security Administration for defense 
nuclear nonproliferation, up to $5,000,000 may be available for 
carrying out this section.

SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM.

    (a) Program on Accelerated Disposition of HEU Authorized.--
(1) The Secretary of Energy may carry out a program to pursue 
with the Russian Federation options for blending highly 
enriched uranium so that the concentration of U-235 in such 
uranium is below 20 percent.
    (2) The options pursued under paragraph (1) shall include 
expansion of the Material Consolidation and Conversion program 
of the Department of Energy to include--
            (A) additional facilities for the blending of 
        highly enriched uranium; and
            (B) additional centralized secure storage 
        facilities for highly enriched uranium designated for 
        blending.
    (3) Any site selected for the storage of uranium or blended 
material under paragraph (2)(B) shall undergo complete 
materials protection, control, and accounting upgrades before 
the commencement of the storage of uranium or blended material 
at such site under the program.
    (b) Construction With HEU Disposition Agreement.--Nothing 
in this section may be construed as terminating, modifying, or 
otherwise affecting requirements for the disposition of highly 
enriched uranium under the Agreement Between the Government of 
the United States of America and the Government of the Russian 
Federation Concerning the Disposition of Highly Enriched 
Uranium Extracted from Nuclear Weapons, signed at Washington on 
February 18, 1993.
    (c) Limitation on Release for Sale of Blended Uranium.--
Uranium blended under this section may not be released for sale 
until the earlier of--
            (1) January 1, 2014; or
            (2) the date on which the Secretary certifies that 
        such uranium can be absorbed into the global market 
        without undue disruption to the uranium mining, 
        conversion, and enrichment industry in the United 
        States.
    (d) Amount for Activities.--Of the amount to be 
appropriated by section 3101(a)(2) for the Department of Energy 
for the National Nuclear Security Administration for defense 
nuclear nonproliferation, up to $10,000,000 may be available 
for carrying out this section.

SEC. 3158. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR MATERIALS 
                    AND SECURITY OF NUCLEAR OPERATIONS.

    (a) Report on Options for International Program To 
Strengthen Security.--(1) Not later than 270 days after the 
date of the enactment of this Act, the Secretary of Energy 
shall submit to Congress a report on options for an 
international program to develop strengthened security for 
nuclear reactors and associated materials outside the United 
States.
    (2) In evaluating options for purposes of the report, the 
Secretary shall consult with the Nuclear Regulatory Commission 
and the International Atomic Energy Agency on the feasibility 
and advisability of actions to reduce the risks associated with 
terrorist attacks on nuclear reactors outside the United 
States.
    (b) Joint Programs With Russia on Proliferation-Resistant 
Nuclear Energy Technologies.--(1) The Secretary shall pursue 
with the Ministry of Atomic Energy of the Russian Federation 
joint programs between the United States and the Russian 
Federation on the development of proliferation-resistant 
nuclear energy technologies, including advanced fuel cycles.
    (2) Of the amount authorized to be appropriated by section 
3101(a)(2) for the Department of Energy for the National 
Nuclear Security Administration for defense nuclear 
nonproliferation, up to $10,000,000 may be available for 
carrying out the joint programs referred to in paragraph (1).
    (c) Assistance Regarding Hostile Insiders.--The Secretary 
may, utilizing appropriate expertise of the Department of 
Energy and the Nuclear Regulatory Commission, provide technical 
assistance to nuclear reactor facilities outside the United 
States with respect to the interdiction of hostile insiders at 
such facilities in order to prevent incidents arising from the 
disablement of the vital systems of such facilities.

SEC. 3159. EXPORT CONTROL PROGRAMS.

    (a) Authority To Pursue Options for Strengthening Export 
Control Programs.--The Secretary of Energy, in coordination 
with the Secretary of State, may pursue in the region of the 
former Soviet Union and other regions of concern options for 
accelerating programs that assist the countries in such regions 
in improving their domestic export control programs for 
materials, technologies, and expertise relevant to the 
construction or use of a nuclear or radiological dispersal 
device.
    (b) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(a)(2) for the Department of Energy 
for the National Nuclear Security Administration for defense 
nuclear nonproliferation, up to $5,000,000 may be available for 
carrying out this section.

SEC. 3160. PLAN FOR ACCELERATED RETURN OF WEAPONS-USABLE NUCLEAR 
                    MATERIALS.

    (a) Plan for Accelerated Return.--The Secretary of Energy 
shall work with the Russian Federation to develop a plan to 
accelerate the return to Russia of all weapons-usable nuclear 
materials located in research reactors and other facilities 
outside Russia that were supplied by the former Soviet Union.
    (b) Funding and Schedules.--As part of the plan under 
subsection (a), the Secretary shall identify the funding and 
schedules required to assist the research reactors and 
facilities referred to in that subsection in--
            (1) transferring highly enriched uranium to Russia; 
        and
            (2) upgrading the materials protection, control, 
        and accounting procedures at such research reactors and 
        facilities until the weapons-usable nuclear materials 
        in such reactors and facilities are returned in 
        accordance with that subsection.
    (c) Coordination.--The provision of assistance under 
subsection (b) shall be closely coordinated with the 
International Atomic Energy Agency.

SEC. 3161. SENSE OF CONGRESS ON AMENDMENT OF CONVENTION ON PHYSICAL 
                    PROTECTION OF NUCLEAR MATERIALS.

    (a) Sense of Congress.--It is the sense of Congress that 
the President should encourage amendment of the Convention on 
the Physical Protection of Nuclear Materials in order to 
provide that the Convention shall--
            (1) apply to both the domestic and international 
        use and transport of nuclear materials;
            (2) incorporate fundamental practices for the 
        physical protection of such materials; and
            (3) address protection against sabotage involving 
        nuclear materials.
    (b) Convention on the Physical Protection of Nuclear 
Material Defined.--In this section, the term ``Convention on 
the Physical Protection of Nuclear Materials'' means the 
Convention on the Physical Protection of Nuclear Materials, 
With Annex, done at Vienna on October 26, 1979.

SEC. 3162. SENSE OF CONGRESS ON PROGRAM TO SECURE STOCKPILES OF HIGHLY 
                    ENRICHED URANIUM AND PLUTONIUM.

    It is the sense of Congress that the Secretary of Energy 
should, in consultation with the Secretary of State and 
Secretary of Defense, develop a comprehensive program of 
activities to encourage all countries with nuclear materials to 
adhere to, or to adopt standards equivalent to, the 
International Atomic Energy Agency standard on The Physical 
Protection of Nuclear Material and Nuclear Facilities (INFCIRC/
225/Rev.4), relating to the security of stockpiles of highly 
enriched uranium (HEU) and plutonium (Pu).

                       Subtitle D--Other Matters

SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS.

    Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(d)(1)(A)) is amended by striking ``until August 1, 
2002,'' and inserting ``until December 31, 2004,''.

SEC. 3172. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
                    NATIONAL LABORATORY, NEW MEXICO.

    (a) Support for Fiscal Year 2003.--From amounts authorized 
to be appropriated to the Secretary of Energy by this title, 
$6,900,000 shall be available for payment by the Secretary for 
fiscal year 2003 to the Los Alamos National Laboratory 
Foundation, a not-for-profit foundation chartered as described 
in section 3167(a) of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2052).
    (b) Use of Funds.--The foundation referred to in subsection 
(a) shall--
            (1) utilize funds provided under this section as a 
        contribution to the endowment fund for the foundation; 
        and
            (2) use the income generated from investments in 
        the endowment fund that are attributable to the payment 
        made under this section to fund programs to support the 
        educational needs of children in the public schools in 
        the vicinity of Los Alamos National Laboratory, New 
        Mexico.
    (c) Repeal of Superseded Authority and Modification of 
Authority To Extend Contract.--(1) Subsection (b) of section 
3136 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1368) is amended to read as 
follows:
    ``(b) Support for Fiscal Years 2003 Through 2005.--Subject 
to the availability of appropriations, the Secretary may 
provide for a contract extension through fiscal year 2005 
similar to the contract extension referred to in subsection 
(a)(2).''.
    (2) The amendment made by paragraph (1) shall take effect 
on October 1, 2002.
    (d) Report.--(1) The Secretary of Energy, in consultation 
with the Administrator for Nuclear Security, shall conduct a 
study of options for funding the contract extension authorized 
by subsection (b) of such section 3136 (as amended by 
subsection (c)) other than through annual appropriations. The 
study should also include options for providing cost of living 
adjustments to teachers in the public schools in the vicinity 
of Los Alamos National Laboratory, New Mexico, other than 
through such contract extension.
    (2) Not later than December 31, 2003, the Secretary shall 
submit to the congressional defense committees a report on the 
study conducted under paragraph (1). The report shall set forth 
the findings and conclusions of the study, together with any 
recommendations as a result of the study.

SEC. 3173. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF ENERGY 
                    NUCLEAR FACILITIES.

    (a) Worker Health and Safety Rules.--The Atomic Energy Act 
of 1954 is amended by inserting after section 234B (42 U.S.C. 
2282b) the following new section:

``SEC. 234C. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF ENERGY 
                    NUCLEAR FACILITIES.

    ``a. Regulations Required.--
            ``(1) In general.--The Secretary shall promulgate 
        regulations for industrial and construction health and 
        safety at Department of Energy facilities that are 
        operated by contractors covered by agreements of 
        indemnification under section 170 d. of the Atomic 
        Energy Act of 1954, after public notice and opportunity 
        for comment under section 553 of title 5, United States 
        Code (commonly known as the `Administrative Procedure 
        Act'). Such regulations shall, subject to paragraph 
        (3), provide a level of protection for workers at such 
        facilities that is substantially equivalent to the 
        level of protection currently provided to such workers 
        at such facilities.
            ``(2) Applicability.--The regulations promulgated 
        under paragraph (1) shall not apply to any facility 
        that is a component of, or any activity conducted 
        under, the Naval Nuclear Propulsion Program provided 
        for under Executive Order No. 12344, dated February 1, 
        1982 (42 U.S.C. 7158 note) (as in force pursuant to 
        section 1634 of the Department of Defense Authorization 
        Act, 1985 (Public Law 98-525; 42 U.S.C. 7158 note)).
            ``(3) Flexibility.--In promulgating the regulations 
        under paragraph (1), the Secretary shall include 
        flexibility--
                    ``(A) to tailor implementation of such 
                regulations to reflect activities and hazards 
                associated with a particular work environment;
                    ``(B) to take into account special 
                circumstances at a facility that is, or is 
                expected to be, permanently closed and that is 
                expected to be demolished, or title to which is 
                expected to be transferred to another entity 
                for reuse; and
                    ``(C) to achieve national security missions 
                of the Department of Energy in an efficient and 
                timely manner.
            ``(4) No effect on health and safety enforcement.--
        This subsection does not diminish or otherwise affect 
        the enforcement or the application of any other law, 
        regulation, order, or contractual obligation relating 
        to worker health and safety.
    ``b. Civil Penalties.--
            ``(1) In general.--A person (or any subcontractor 
        or supplier of the person) who has entered into an 
        agreement of indemnification under section 170 d. (or 
        any subcontractor or supplier of the person) that 
        violates (or is the employer of a person that violates) 
        any regulation promulgated under subsection a. shall be 
        subject to a civil penalty of not more than $70,000 for 
        each such violation.
            ``(2) Continuing violations.--If any violation 
        under this subsection is a continuing violation, each 
        day of the violation shall constitute a separate 
        violation for the purpose of computing the civil 
        penalty under paragraph (1).
    ``c. Contract Penalties.--
            ``(1) In general.--The Secretary shall include in 
        each contract with a contractor of the Department who 
        has entered into an agreement of indemnification under 
        section 170 d. provisions that provide an appropriate 
        reduction in the fees or amounts paid to the contractor 
        under the contract in the event of a violation by the 
        contractor or contractor employee of any regulation 
        promulgated under subsection a.
            ``(2) Contents.--The provisions shall specify 
        various degrees of violations and the amount of the 
        reduction attributable to each degree of violation.
    ``d. Coordination of Penalties.--
            ``(1) Choice of penalties.--For any violation by a 
        person of a regulation promulgated under subsection a., 
        the Secretary shall pursue either civil penalties under 
        subsection b. or contract penalties under subsection 
        c., but not both.
            ``(2) Maximum amount.--In the case of an entity 
        described in subsection d. of section 234A, the total 
        amount of civil penalties under subsection b. and 
        contract penalties under subsection c. in a fiscal year 
        may not exceed the total amount of fees paid by the 
        Department of Energy to that entity in that fiscal 
        year.
            ``(3) Coordination with section 234a.--The 
        Secretary shall ensure that a contractor of the 
        Department is not penalized both under this section and 
        under section 234A for the same violation.''.
    (b) Promulgation of Initial Regulations.--
            (1) Deadline for promulgating regulations.--The 
        Secretary of Energy shall promulgate the regulations 
        required by subsection a. of section 234C of the Atomic 
        Energy Act of 1954 (as added by subsection (a)) not 
        later than one year after the date of the enactment of 
        this Act.
            (2) Effective date.--The regulations promulgated 
        under paragraph (1) shall take effect on the date that 
        is one year after the promulgation date of the 
        regulations.
    (c) Prohibition.--The Secretary of Energy shall not 
participate in or otherwise support any study or other project 
relating to a modification in the scope of the regulations 
enforceable by civil penalties under section 234A or 234C of 
the Atomic Energy Act of 1954, or the responsibility of the 
Secretary to implement and enforce such regulations, until 
after the date on which the regulations for such purposes under 
such section 234C take effect in accordance with subsection 
(b).

SEC. 3174. EXTENSION OF AUTHORITY TO APPOINT CERTAIN SCIENTIFIC, 
                    ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 3161(c)(1) of the National Defense Authorization 
Act for Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by 
striking ``September 30, 2002'' and inserting ``September 30, 
2004''.

SEC. 3175. ONE-YEAR EXTENSION OF PANEL TO ASSESS THE RELIABILITY, 
                    SAFETY, AND SECURITY OF THE UNITED STATES NUCLEAR 
                    STOCKPILE.

    Section 3159 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (42 U.S.C. 2121 note) is 
amended--
            (1) in subsection (f), by striking ``atomic energy 
        defense activities'' and inserting ``the National 
        Nuclear Security Administration'';
            (2) in subsection (g), by striking ``three years'' 
        and all that follows through the period at the end and 
        inserting ``April 1, 2003.''; and
            (3) by adding at the end the following new 
        subsection:
    ``(i) Follow-Up Report.--Not later than February 1, 2003, 
the panel shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a follow-up report assessing progress toward 
meeting the expectations set forth by the panel for the United 
States stockpile stewardship program, and making 
recommendations for corrective legislative action where 
progress has been unsatisfactory.''.

SEC. 3176. REPORT ON STATUS OF ENVIRONMENTAL MANAGEMENT INITIATIVES TO 
                    ACCELERATE THE REDUCTION OF ENVIRONMENTAL RISKS AND 
                    CHALLENGES POSED BY THE LEGACY OF THE COLD WAR.

    (a) Report Required.--The Secretary of Energy shall prepare 
a report on the status of those environmental management 
initiatives specified in subsection (c) that are being 
undertaken to accelerate the reduction of the environmental 
risks and challenges that, as a result of the legacy of the 
Cold War, are faced by the Department of Energy, contractors of 
the Department, and applicable Federal and State agencies with 
regulatory jurisdiction.
    (b) Contents.--The report shall include the following 
matters:
            (1) A discussion of the progress made in reducing 
        such risks and challenges in each of the following 
        areas:
                    (A) Acquisition strategy and contract 
                management.
                    (B) Regulatory agreements.
                    (C) Interim storage and final disposal of 
                high-level waste, spent nuclear fuel, 
                transuranic waste, and low-level waste.
                    (D) Closure and transfer of environmental 
                remediation sites.
                    (E) Achievements in innovation by 
                contractors of the Department with respect to 
                accelerated risk reduction and cleanup.
                    (F) Consolidation of special nuclear 
                materials and improvements in safeguards and 
                security.
            (2) An assessment of the progress made in 
        streamlining risk reduction processes of the 
        environmental management program of the Department.
            (3) An assessment of the progress made in improving 
        the responsiveness and effectiveness of the 
        environmental management program of the Department.
            (4) Any proposals for legislation that the 
        Secretary considers necessary to carry out such 
        initiatives, including the justification for each such 
        proposal.
    (c) Initiatives Covered.--The environmental management 
initiatives referred to in subsection (a) are the initiatives 
arising out of the report titled ``Top-to-Bottom Review of the 
Environmental Management Program'' and dated February 4, 2002, 
with respect to the environmental restoration and waste 
management activities of the Department of Energy in carrying 
out programs necessary for national security.
    (d) Submission of Report.--On the date on which the budget 
justification materials in support of the Department of Energy 
budget for fiscal year 2004 (as submitted with the budget of 
the President under section 1105(a) of title 31, United States 
Code) are submitted to Congress, the Secretary shall submit to 
the congressional defense committees the report required by 
subsection (a).

Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

SEC. 3181. FINDINGS.

    Congress makes the following findings:
            (1) In September 2000, the United States and the 
        Russian Federation signed a Plutonium Management and 
        Disposition Agreement by which each agreed to dispose 
        of 34 metric tons of weapons-grade plutonium.
            (2) The agreement with Russia is a significant step 
        toward safeguarding nuclear materials and preventing 
        their diversion to rogue states and terrorists.
            (3) The Department of Energy plans to dispose of 34 
        metric tons of weapons-grade plutonium in the United 
        States before the end of 2019 by converting the 
        plutonium to a mixed-oxide fuel to be used in 
        commercial nuclear power reactors.
            (4) The Department has formulated a plan for 
        implementing the agreement with Russia through 
        construction of a mixed-oxide fuel fabrication 
        facility, the so-called MOX facility, and a pit 
        disassembly and conversion facility at the Savannah 
        River Site, Aiken, South Carolina.
            (5) The United States and the State of South 
        Carolina have a compelling interest in the safe, 
        proper, and efficient operation of the plutonium 
        disposition facilities at the Savannah River Site. The 
        MOX facility will also be economically beneficial to 
        the State of South Carolina, and that economic benefit 
        will not be fully realized unless the MOX facility is 
        built.
            (6) The State of South Carolina desires to ensure 
        that all plutonium transferred to the State of South 
        Carolina is stored safely; that the full benefits of 
        the MOX facility are realized as soon as possible; and, 
        specifically, that all defense plutonium or defense 
        plutonium materials transferred to the Savannah River 
        Site either be processed or be removed expeditiously.

SEC. 3182. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT SAVANNAH RIVER 
                    SITE.

    (a) Plan for Construction and Operation of MOX Facility.--
(1) Not later than February 1, 2003, the Secretary of Energy 
shall submit to Congress a plan for the construction and 
operation of the MOX facility at the Savannah River Site, 
Aiken, South Carolina.
    (2) The plan under paragraph (1) shall include--
            (A) a schedule for construction and operations so 
        as to achieve, as of January 1, 2009, and thereafter, 
        the MOX production objective, and to produce 1 metric 
        ton of mixed-oxide fuel by December 31, 2009; and
            (B) a schedule of operations of the MOX facility 
        designed so that 34 metric tons of defense plutonium 
        and defense plutonium materials at the Savannah River 
        Site will be processed into mixed-oxide fuel by January 
        1, 2019.
    (3)(A) Not later than February 15 each year, beginning in 
2004 and continuing for as long as the MOX facility is in use, 
the Secretary shall submit to Congress a report on the 
implementation of the plan required by paragraph (1).
    (B) Each report under subparagraph (A) for years before 
2010 shall include--
            (i) an assessment of compliance with the schedules 
        included with the plan under paragraph (2); and
            (ii) a certification by the Secretary whether or 
        not the MOX production objective can be met by January 
        2009.
    (C) Each report under subparagraph (A) for years after 2009 
shall--
            (i) address whether the MOX production objective 
        has been met; and
            (ii) assess progress toward meeting the obligations 
        of the United States under the Plutonium Management and 
        Disposition Agreement.
    (D) Each report under subparagraph (A) for years after 2017 
shall also include an assessment of compliance with the MOX 
production objective and, if not in compliance, the plan of the 
Secretary for achieving one of the following:
            (i) Compliance with such objective.
            (ii) Removal of all remaining defense plutonium and 
        defense plutonium materials from the State of South 
        Carolina.
    (b) Corrective Actions.--(1) If a report under subsection 
(a)(3) indicates that construction or operation of the MOX 
facility is behind the applicable schedule under subsection 
(a)(2) by 12 months or more, the Secretary shall submit to 
Congress, not later than August 15 of the year in which such 
report is submitted, a plan for corrective actions to be 
implemented by the Secretary to ensure that the MOX facility 
project is capable of meeting the MOX production objective by 
January 1, 2009.
    (2) If a plan is submitted under paragraph (1) in any year 
after 2008, the plan shall include corrective actions to be 
implemented by the Secretary to ensure that the MOX production 
objective is met.
    (3) Any plan for corrective actions under paragraph (1) or 
(2) shall include established milestones under such plan for 
achieving compliance with the MOX production objective.
    (4) If, before January 1, 2009, the Secretary determines 
that there is a substantial and material risk that the MOX 
production objective will not be achieved by 2009 because of a 
failure to achieve milestones set forth in the most recent 
corrective action plan under this subsection, the Secretary 
shall suspend further transfers of defense plutonium and 
defense plutonium materials to be processed by the MOX facility 
until such risk is addressed and the Secretary certifies that 
the MOX production objective can be met by 2009.
    (5) If, after January 1, 2009, the Secretary determines 
that the MOX production objective has not been achieved because 
of a failure to achieve milestones set forth in the most recent 
corrective action plan under this subsection, the Secretary 
shall suspend further transfers of defense plutonium and 
defense plutonium materials to be processed by the MOX facility 
until the Secretary certifies that the MOX production objective 
can be met.
    (6)(A) Upon making a determination under paragraph (4) or 
(5), the Secretary shall submit to Congress a report on the 
options for removing from the State of South Carolina an amount 
of defense plutonium or defense plutonium materials equal to 
the amount of defense plutonium or defense plutonium materials 
transferred to the State of South Carolina after April 15, 
2002.
    (B) Each report under subparagraph (A) shall include an 
analysis of each option set forth in the report, including the 
cost and schedule for implementation of such option, and any 
requirements under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) relating to consideration or 
selection of such option.
    (C) Upon submittal of a report under paragraph (A), the 
Secretary shall commence any analysis that may be required 
under the National Environmental Policy Act of 1969 in order to 
select among the options set forth in the report.
    (c) Contingent Requirement for Removal of Plutonium and 
Materials From Savannah River Site.--If the MOX production 
objective is not achieved as of January 1, 2009, the Secretary 
shall, consistent with the National Environmental Policy Act of 
1969 and other applicable laws, remove from the State of South 
Carolina, for storage or disposal elsewhere--
            (1) not later than January 1, 2011, not less than 1 
        metric ton of defense plutonium or defense plutonium 
        materials; and
            (2) not later than January 1, 2017, an amount of 
        defense plutonium or defense plutonium materials equal 
        to the amount of defense plutonium or defense plutonium 
        materials transferred to the Savannah River Site 
        between April 15, 2002 and January 1, 2017, but not 
        processed by the MOX facility.
    (d) Economic and Impact Assistance.--(1) If the MOX 
production objective is not achieved as of January 1, 2011, the 
Secretary shall, from funds available to the Secretary, pay to 
the State of South Carolina each year beginning on or after 
that date through 2016 for economic and impact assistance an 
amount equal to $1,000,000 per day, not to exceed $100,000,000 
per year, until the later of--
            (A) the date on which the MOX production objective 
        is achieved in such year; or
            (B) the date on which the Secretary has removed 
        from the State of South Carolina in such year at least 
        1 metric ton of defense plutonium or defense plutonium 
        materials.
    (2)(A) If, as of January 1, 2017, the MOX facility has not 
processed mixed-oxide fuel from defense plutonium and defense 
plutonium materials in the amount of not less than--
            (i) one metric ton, in each of any two consecutive 
        calendar years; and
            (ii) three metric tons total,
the Secretary shall, from funds available to the Secretary, pay 
to the State of South Carolina for economic and impact 
assistance an amount equal to $1,000,000 per day, not to exceed 
$100,000,000 per year, until the removal by the Secretary from 
the State of South Carolina of an amount of defense plutonium 
or defense plutonium materials equal to the amount of defense 
plutonium or defense plutonium materials transferred to the 
Savannah River Site between April 15, 2002, and January 1, 
2017, but not processed by the MOX facility.
    (B) Nothing in this paragraph may be construed to 
terminate, supersede, or otherwise affect any other 
requirements of this section.
    (3) If the State of South Carolina obtains an injunction 
that prohibits the Department from taking any action necessary 
for the Department to meet any deadline specified by this 
subsection, that deadline shall be extended for a period of 
time equal to the period of time during which the injunction is 
in effect.
    (e) Failure To Complete Planned Disposition Program.--If on 
July 1 each year beginning in 2020 and continuing for as long 
as the MOX facility is in use, less than 34 metric tons of 
defense plutonium or defense plutonium materials have been 
processed by the MOX facility, the Secretary shall submit to 
Congress a plan for--
            (1) completing the processing of 34 metric tons of 
        defense plutonium and defense plutonium material by the 
        MOX facility; or
            (2) removing from the State of South Carolina an 
        amount of defense plutonium or defense plutonium 
        materials equal to the amount of defense plutonium or 
        defense plutonium materials transferred to the Savannah 
        River Site after April 15, 2002, but not processed by 
        the MOX facility.
    (f) Removal of Mixed-Oxide Fuel Upon Completion of 
Operations of MOX Facility.--If, one year after the date on 
which operation of the MOX facility permanently ceases, any 
mixed-oxide fuel remains at the Savannah River Site, the 
Secretary shall submit to Congress--
            (1) a report on when such fuel will be transferred 
        for use in commercial nuclear reactors; or
            (2) a plan for removing such fuel from the State of 
        South Carolina.
    (g) Definitions.--In this section:
            (1) MOX production objective.--The term ``MOX 
        production objective'' means production at the MOX 
        facility of mixed-oxide fuel from defense plutonium and 
        defense plutonium materials at an average rate 
        equivalent to not less than one metric ton of mixed-
        oxide fuel per year. The average rate shall be 
        determined by measuring production at the MOX facility 
        from the date the facility is declared operational to 
        the Nuclear Regulatory Commission through the date of 
        assessment.
            (2) MOX facility.--The term ``MOX facility'' means 
        the mixed-oxide fuel fabrication facility at the 
        Savannah River Site, Aiken, South Carolina.
            (3) Defense plutonium; defense plutonium 
        materials.--The terms ``defense plutonium'' and 
        ``defense plutonium materials'' mean weapons-usable 
        plutonium.

SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND PLUTONIUM 
                    MATERIALS AT SAVANNAH RIVER SITE.

    (a) Study.--The Defense Nuclear Facilities Safety Board 
shall conduct a study of the adequacy of the K-Area Materials 
Storage facility (KAMS), and related support facilities such as 
Building 235-F, at the Savannah River Site, Aiken, South 
Carolina, for the storage of defense plutonium and defense 
plutonium materials in connection with the disposition program 
provided in section 3182 and in connection with the amended 
Record of Decision of the Department of Energy for fissile 
materials disposition.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Defense Nuclear Facilities Safety 
Board shall submit to Congress and the Secretary of Energy a 
report on the study conducted under subsection (a).
    (c) Report Elements.--The report under subsection (b) 
shall--
            (1) address--
                    (A) the suitability of KAMS and related 
                support facilities for monitoring and observing 
                any defense plutonium or defense plutonium 
                materials stored in KAMS;
                    (B) the adequacy of the provisions made by 
                the Department for remote monitoring of such 
                defense plutonium and defense plutonium 
                materials by way of sensors and for handling of 
                retrieval of such defense plutonium and defense 
                plutonium materials; and
                    (C) the adequacy of KAMS should such 
                defense plutonium and defense plutonium 
                materials continue to be stored at KAMS after 
                2019; and
            (2) include such proposals as the Defense Nuclear 
        Facilities Safety Board considers appropriate to 
        enhance the safety, reliability, and functionality of 
        KAMS.
    (d) Reports on Actions on Proposals.--Not later than 6 
months after the date on which the report under subsection (b) 
is submitted to Congress, and every year thereafter, the 
Secretary and the Board shall each submit to Congress a report 
on the actions taken by the Secretary in response to the 
proposals, if any, included in the report.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
2003, $19,000,000 for the operation of the Defense Nuclear 
Facilities Safety Board under chapter 21 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
2003, the National Defense Stockpile Manager may obligate up to 
$76,400,000 of the funds in the National Defense Stockpile 
Transaction Fund established under subsection (a) of section 9 
of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h) for the authorized uses of such funds under 
subsection (b)(2) of such section, including the disposal of 
hazardous materials that are environmentally sensitive.
    (b) Additional Obligations.--The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager 
notifies Congress that extraordinary or emergency conditions 
necessitate the additional obligations. The National Defense 
Stockpile Manager may make the additional obligations described 
in the notification after the end of the 45-day period 
beginning on the date on which Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section 
shall be subject to such limitations as may be provided in 
appropriations Acts.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are hereby authorized to be appropriated 
to the Secretary of Energy $21,069,000 for fiscal year 2003 for 
the purpose of carrying out activities under chapter 641 of 
title 10, United States Code, relating to the naval petroleum 
reserves.
    (b) Period of Availability.--Funds appropriated pursuant to 
the authorization of appropriations in subsection (a) shall 
remain available until expended.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
          applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
          vessels.

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2003.

    Funds are hereby authorized to be appropriated for fiscal 
year 2003, to be available without fiscal year limitation if so 
provided in appropriations Acts, for the use of the Department 
of Transportation for the Maritime Administration as follows:
            (1) For expenses necessary for operations and 
        training activities, $93,132,000.
            (2) For expenses under the loan guarantee program 
        authorized by title XI of the Merchant Marine Act, 1936 
        (46 App. U.S.C. 1271 et seq.), $54,126,000, of which--
                    (A) $50,000,000 is for the cost (as defined 
                in section 502(5) of the Federal Credit Reform 
                Act of 1990 (2 U.S.C. 661a(5))) of loan 
                guarantees under the program; and
                    (B) $4,126,000 is for administrative 
                expenses related to loan guarantee commitments 
                under the program.
            (3) For expenses to dispose of obsolete vessels in 
        the National Defense Reserve Fleet, including provision 
        of assistance under section 7 of Public Law 92-402 (as 
        amended by this title), $20,000,000.

SEC. 3502. AUTHORITY TO CONVEY VESSEL USS SPHINX (ARL-24).

    (a) In General.--Notwithstanding any other law, the 
Secretary of Transportation may convey the right, title, and 
interest of the United States Government in and to the vessel 
USS SPHINX (ARL-24), to the Dunkirk Historical Lighthouse and 
Veterans Park Museum (a not-for-profit corporation, in this 
section referred to as the ``recipient'') for use as a military 
museum, if--
            (1) the recipient agrees to use the vessel as a 
        nonprofit military museum;
            (2) the vessel is not used for commercial 
        transportation purposes;
            (3) the recipient agrees to make the vessel 
        available to the Government when the Secretary requires 
        use of the vessel by the Government;
            (4) the recipient agrees that when the recipient no 
        longer requires the vessel for use as a military 
        museum--
                    (A) the recipient will, at the discretion 
                of the Secretary, reconvey the vessel to the 
                Government in good condition except for 
                ordinary wear and tear; or
                    (B) if the Board of Trustees of the 
                recipient has decided to dissolve the recipient 
                according to the laws of the State of New York, 
                then--
                            (i) the recipient shall distribute 
                        the vessel, as an asset of the 
                        recipient, to a person that has been 
                        determined exempt from taxation under 
                        the provisions of section 501(c)(3) of 
                        the Internal Revenue Code, or to the 
                        Federal Government or a State or local 
                        government for a public purpose; and
                            (ii) the vessel shall be disposed 
                        of by a court of competent jurisdiction 
                        of the county in which the principal 
                        office of the recipient is located, for 
                        such purposes as the court shall 
                        determine, or to such organizations as 
                        the court shall determine are organized 
                        exclusively for public purposes;
            (5) the recipient agrees to hold the Government 
        harmless for any claims arising from exposure to 
        asbestos, polychlorinated biphenyls, or lead paint 
        after conveyance of the vessel, except for claims 
        arising from use by the Government under paragraph (3) 
        or (4); and
            (6) the recipient has available, for use to restore 
        the vessel, in the form of cash, liquid assets, or a 
        written loan commitment, financial resources of at 
        least $100,000.
    (b) Delivery of Vessel.--If a conveyance is made under this 
section, the Secretary shall deliver the vessel at the place 
where the vessel is located on the date of enactment of this 
Act, in its present condition, and without cost to the 
Government.
    (c) Other Unneeded Equipment.--The Secretary may also 
convey any unneeded equipment from other vessels in the 
National Defense Reserve Fleet in order to restore the USS 
SPHINX (ARL-24) to museum quality.
    (d) Retention of Vessel in NDRF.--The Secretary shall 
retain in the National Defense Reserve Fleet the vessel 
authorized to be conveyed under subsection (a), until the 
earlier of--
            (1) 2 years after the date of the enactment of this 
        Act; or
            (2) the date of conveyance of the vessel under 
        subsection (a).

SEC. 3503. INDEPENDENT ANALYSIS OF TITLE XI INSURANCE GUARANTEE 
                    APPLICATIONS.

    Section 1104A of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1274) is amended--
            (1) by adding at the end of subsection (d) the 
        following:
    ``(4) The Secretary may obtain independent analysis of an 
application for a guarantee or commitment to guarantee under 
this title.''; and
            (2) in subsection (f) by inserting ``(including for 
        obtaining independent analysis under subsection 
        (d)(4))'' after ``applications for a guarantee''.

SEC. 3504. PREPARATION AS ARTIFICIAL REEFS AND SCRAPPING OF OBSOLETE 
                    VESSELS.

    (a) Financial Assistance to States for Preparation of 
Transferred Obsolete Ships for Use as Artificial Reefs.--(1) 
Public Law 92-402 (16 U.S.C. 1220 et seq.) is amended--
            (A) by redesignating section 7 as section 8; and
            (B) by inserting after section 6 the following new 
        section 7:

``SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE TRANSFERRED SHIP.

    ``(a) Assistance Authorized.--The Secretary, subject to the 
availability of appropriations, may provide, to any State to 
which an obsolete ship is transferred under this Act, financial 
assistance to prepare the ship for use as an artificial reef, 
including for--
            ``(1) environmental remediation;
            ``(2) towing; and
            ``(3) sinking.
    ``(b) Amount of Assistance.--The Secretary shall determine 
the amount of assistance under this section with respect to an 
obsolete ship based on--
            ``(1) the total amount available for providing 
        assistance under this section;
            ``(2) the benefit achieved by providing assistance 
        for that ship; and
            ``(3) the cost effectiveness of disposing of the 
        ship by transfer under this Act and provision of 
        assistance under this section, compared to other 
        disposal options for that ship.
    ``(c) Terms and Conditions.--The Secretary--
            ``(1) shall require a State seeking assistance 
        under this section to provide cost data and other 
        information determined by the Secretary to be necessary 
        to justify and document the assistance; and
            ``(2) may require a State receiving such assistance 
        to comply with terms and conditions necessary to 
        protect the environment and the interests of the United 
        States.''.
    (2) Section 4(4) of such Act (16 U.S.C. 1220a(4)) is 
amended by inserting ``(except for any financial assistance 
provided under section 7)'' after ``at no cost to the 
Government''.
    (b) Environmental Best Management Practices for Preparing 
Vessels for Use as Artificial Reefs.--(1) Not later than 
September 30, 2003, the Secretary of Transportation, acting 
through the Maritime Administration, and the Administrator of 
the Environmental Protection Agency shall jointly develop 
environmental best management practices to be used in the 
preparation of vessels for use as artificial reefs.
    (2) The environmental best management practices under 
paragraph (1) shall be developed in consultation with the heads 
of other Federal agencies, and State agencies, having an 
interest in the use of vessels as artificial reefs.
    (3) The environmental best management practices under 
paragraph (1) shall--
            (A) include practices for the preparation of 
        vessels for use as artificial reefs to ensure that 
        vessels so prepared will be environmentally sound in 
        their use as artificial reefs;
            (B) ensure that such practices are consistent 
        nationwide;
            (C) establish baselines for estimating the costs 
        associated with the preparation of vessels for use as 
        artificial reefs; and
            (D) include mechanisms to enhance the utility of 
        the Artificial Reefing Program of the Maritime 
        Administration as an option for the disposal of 
        obsolete vessels.
    (4) The environmental best management practices developed 
under paragraph (1) shall serve as national guidelines to be 
used by Federal agencies for the preparation of vessels for use 
as artificial reefs.
    (5) The Secretary of Transportation shall submit to 
Congress a report on the environmental best management 
practices developed under paragraph (1) through the existing 
ship disposal reporting requirements in section 3502 of Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 
2001 (as enacted into law by Public Law 106-398; 1654A-492). 
The report shall describe such practices, and may include such 
other matters as the Secretary considers appropriate.
    (c) Pilot Program on Export of Obsolete Vessels for 
Dismantlement and Recycling.--(1)(A) The Secretary of 
Transportation, Secretary of State, and Administrator of the 
Environmental Protection Agency shall jointly carry out one or 
more pilot programs through the Maritime Administration to 
explore the feasibility and advisability of various 
alternatives for exporting obsolete vessels in the National 
Defense Reserve Fleet for purposes of the dismantlement and 
recycling of such vessels.
    (B) The pilot programs shall be carried out in accordance 
with applicable provisions of law and regulations.
    (2)(A) The pilot programs under paragraph (1) shall be 
carried out during fiscal year 2003.
    (B) The pilot programs shall include a total of not more 
than four vessels.
    (C) The authority provided by this subsection is in 
addition to any other authority available to Maritime 
Administration for exporting obsolete vessels in the National 
Defense Reserve Fleet.
    (3) Activities under the pilot programs under paragraph (1) 
shall include the following:
            (A) Exploration of the feasibility and advisability 
        of a variety of alternatives (developed for purposes of 
        the pilot programs) for exporting obsolete vessels in 
        the National Defense Reserve Fleet for purposes of the 
        dismantlement and recycling of such vessels.
            (B) Response by the Maritime Administration to 
        proposals from the international ship recycling 
        industry for innovative and cost-effective disposal 
        solutions for obsolete vessels in the National Defense 
        Reserve Fleet, including an evaluation of the 
        feasibility and advisability of such proposals.
            (C) Demonstration of the extent to which the cost-
        effective dismantlement or recycling of obsolete 
        vessels in the National Defense Reserve Fleet can be 
        accomplished abroad in manner that appropriately 
        addresses concerns regarding worker health and safety 
        and the environment.
            (D) Opportunities to transfer abroad processes, 
        methodologies, and technologies for ship dismantlement 
        and recycling in order to support the pilot programs 
        and to improve international practices and standards 
        for ship dismantlement and recycling.
            (E) Exploration of cooperative efforts with foreign 
        governments (under a global action program on ship 
        recycling or other program) in order to foster 
        economically and environmentally sound ship recycling 
        abroad.
    (4) The Secretary of Transportation shall submit to 
Congress a report on the pilot programs under paragraph (1) 
through the existing ship disposal reporting requirements in 
section 3502 of Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001. The report shall include a 
description of the activities under the pilot programs, and 
such recommendations for further legislative or administrative 
action as the Secretary considers appropriate.
    (d) Construction.--Nothing in this section shall be 
construed to establish a preference for the reefing or export 
of obsolete vessels in the National Defense Reserve Fleet over 
other alternatives available to the Secretary for the scrapping 
of such vessels under section 3502(d)(3) of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001.

             TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
          activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
          Department of Energy.

SEC. 3601. SHORT TITLE.

    This title may be cited as the ``Atomic Energy Defense 
Act''.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

SEC. 3620. DEFINITIONS.

    In this subtitle:
            (1) The term ``DOE national security 
        authorization'' means an authorization of 
        appropriations for activities of the Department of 
        Energy in carrying out programs necessary for national 
        security.
            (2) The term ``congressional defense committees'' 
        means--
                    (A) the Committee on Armed Services and the 
                Committee on Appropriations of the Senate; and
                    (B) the Committee on Armed Services and the 
                Committee on Appropriations of the House of 
                Representatives.
            (3) The term ``minor construction threshold'' means 
        $5,000,000.

SEC. 3621. REPROGRAMMING.

    (a) In General.--Except as provided in subsection (b) and 
in sections 3629 and 3630, the Secretary of Energy may not use 
amounts appropriated pursuant to a DOE national security 
authorization for a program--
            (1) in amounts that exceed, in a fiscal year--
                    (A) 115 percent of the amount authorized 
                for that program by that authorization for that 
                fiscal year; or
                    (B) $5,000,000 more than the amount 
                authorized for that program by that 
                authorization for that fiscal year; or
            (2) which has not been presented to, or requested 
        of, Congress.
    (b) Exception Where Notice-and-Wait Given.--An action 
described in subsection (a) may be taken if--
            (1) the Secretary submits to the congressional 
        defense committees a report referred to in subsection 
        (c) with respect to such action; and
            (2) a period of 30 days has elapsed after the date 
        on which such committees receive the report.
    (c) Report.--The report referred to in subsection (a) is a 
report containing a full and complete statement of the action 
proposed to be taken and the facts and circumstances relied 
upon in support of the proposed action.
    (d) Computation of Days.--In the computation of the 30-day 
period under subsection (b), there shall be excluded any day on 
which either House of Congress is not in session because of an 
adjournment of more than three days to a day certain.
    (e) Limitations.--
            (1) Total amount obligated.--In no event may the 
        total amount of funds obligated pursuant to a DOE 
        national security authorization for a fiscal year 
        exceed the total amount authorized to be appropriated 
        by that authorization for that fiscal year.
            (2) Prohibited items.--Funds appropriated pursuant 
        to a DOE national security authorization may not be 
        used for an item for which Congress has specifically 
        denied funds.

SEC. 3622. MINOR CONSTRUCTION PROJECTS.

    (a) Authority.--Using operation and maintenance funds or 
facilities and infrastructure funds authorized by a DOE 
national security authorization, the Secretary of Energy may 
carry out minor construction projects.
    (b) Annual Report.--The Secretary shall submit to the 
congressional defense committees on an annual basis a report on 
each exercise of the authority in subsection (a) during the 
preceding fiscal year. Each report shall provide a brief 
description of each minor construction project covered by the 
report.
    (c) Cost Variation Reports to Congressional Committees.--
If, at any time during the construction of any minor 
construction project authorized by a DOE national security 
authorization, the estimated cost of the project is revised and 
the revised cost of the project exceeds the minor construction 
threshold, the Secretary shall immediately submit to the 
congressional defense committees a report explaining the 
reasons for the cost variation.
    (d) Minor Construction Project Defined.--In this section, 
the term ``minor construction project'' means any plant project 
not specifically authorized by law for which the approved total 
estimated cost does not exceed the minor construction 
threshold.

SEC. 3623. LIMITS ON CONSTRUCTION PROJECTS.

    (a) Construction Cost Ceiling.--Except as provided in 
subsection (b), construction on a construction project which is 
in support of national security programs of the Department of 
Energy and was authorized by a DOE national security 
authorization may not be started, and additional obligations in 
connection with the project above the total estimated cost may 
not be incurred, whenever the current estimated cost of the 
construction project exceeds by more than 25 percent the higher 
of--
            (1) the amount authorized for the project; or
            (2) the amount of the total estimated cost for the 
        project as shown in the most recent budget 
        justification data submitted to Congress.
    (b) Exception Where Notice-and-Wait Given.--An action 
described in subsection (a) may be taken if--
            (1) the Secretary of Energy has submitted to the 
        congressional defense committees a report on the 
        actions and the circumstances making such action 
        necessary; and
            (2) a period of 30 days has elapsed after the date 
        on which the report is received by the committees.
    (c) Computation of Days.--In the computation of the 30-day 
period under subsection (b), there shall be excluded any day on 
which either House of Congress is not in session because of an 
adjournment of more than three days to a day certain.
    (d) Exception for Minor Projects.--Subsection (a) does not 
apply to a construction project with a current estimated cost 
of less than the minor construction threshold.

SEC. 3624. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of 
Energy may transfer funds authorized to be appropriated to the 
Department of Energy pursuant to a DOE national security 
authorization to other Federal agencies for the performance of 
work for which the funds were authorized. Funds so transferred 
may be merged with and be available for the same purposes and 
for the same time period as the authorizations of the Federal 
agency to which the amounts are transferred.
    (b) Transfer Within Department of Energy.--
            (1) Transfers permitted.--Subject to paragraph (2), 
        the Secretary of Energy may transfer funds authorized 
        to be appropriated to the Department of Energy pursuant 
        to a DOE national security authorization to any other 
        DOE national security authorization. Amounts of 
        authorizations so transferred may be merged with and be 
        available for the same purposes and for the same period 
        as the authorization to which the amounts are 
        transferred.
            (2) Maximum amounts.--Not more than 5 percent of 
        any such authorization may be transferred to another 
        authorization under paragraph (1). No such 
        authorization may be increased or decreased by more 
        than 5 percent by a transfer under such paragraph.
    (c) Limitations.--The authority provided by this subsection 
to transfer authorizations--
            (1) may be used only to provide funds for items 
        relating to activities necessary for national security 
        programs that have a higher priority than the items 
        from which the funds are transferred; and
            (2) may not be used to provide funds for an item 
        for which Congress has specifically denied funds.
    (d) Notice to Congress.--The Secretary of Energy shall 
promptly notify the congressional defense committees of any 
transfer of funds to or from any DOE national security 
authorization.

SEC. 3625. CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Conceptual Design.--
            (1) Requirement.--Subject to paragraph (2) and 
        except as provided in paragraph (3), before submitting 
        to Congress a request for funds for a construction 
        project that is in support of a national security 
        program of the Department of Energy, the Secretary of 
        Energy shall complete a conceptual design for that 
        project.
            (2) Requests for conceptual design funds.--If the 
        estimated cost of completing a conceptual design for a 
        construction project exceeds $3,000,000, the Secretary 
        shall submit to Congress a request for funds for the 
        conceptual design before submitting a request for funds 
        for the construction project.
            (3) Exceptions.--The requirement in paragraph (1) 
        does not apply to a request for funds--
                    (A) for a construction project the total 
                estimated cost of which is less than the minor 
                construction threshold; or
                    (B) for emergency planning, design, and 
                construction activities under section 3626.
    (b) Construction Design.--
            (1) Authority.--Within the amounts authorized by a 
        DOE national security authorization, the Secretary may 
        carry out construction design (including architectural 
        and engineering services) in connection with any 
        proposed construction project if the total estimated 
        cost for such design does not exceed $600,000.
            (2) Limitation on availability of funds for certain 
        projects.--If the total estimated cost for construction 
        design in connection with any construction project 
        exceeds $600,000, funds for that design must be 
        specifically authorized by law.

SEC. 3626. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
                    ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds 
available to the Department of Energy pursuant to a DOE 
national security authorization, including funds authorized to 
be appropriated for advance planning, engineering, and 
construction design, and for plant projects, to perform 
planning, design, and construction activities for any 
Department of Energy national security program construction 
project that, as determined by the Secretary, must proceed 
expeditiously in order to protect public health and safety, to 
meet the needs of national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the 
authority under subsection (a) in the case of a construction 
project until the Secretary has submitted to the congressional 
defense committees a report on the activities that the 
Secretary intends to carry out under this section and the 
circumstances making those activities necessary.
    (c) Specific Authority.--The requirement of section 
3625(b)(2) does not apply to emergency planning, design, and 
construction activities conducted under this section.

SEC. 3627. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS.

    In carrying out programs necessary for national security, 
the authority of the Secretary of Energy to carry out plant 
projects includes authority for maintenance, restoration, 
planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior years, and land acquisition related thereto.

SEC. 3628. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), 
amounts appropriated pursuant to a DOE national security 
authorization for operation and maintenance or for plant 
projects may, when so specified in an appropriations Act, 
remain available until expended.
    (b) Exception for Program Direction Funds.--Amounts 
appropriated for program direction pursuant to a DOE national 
security athorization for a fiscal year shall remain available 
to be obligated only until the end of that fiscal year.

SEC. 3629. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of 
each field office of the Department of Energy with the 
authority to transfer defense environmental management funds 
from a program or project under the jurisdiction of that office 
to another such program or project.
    (b) Limitations.--
            (1) Number of transfers.--Not more than one 
        transfer may be made to or from any program or project 
        under subsection (a) in a fiscal year.
            (2) Amounts transferred.--The amount transferred to 
        or from a program or project in any one transfer under 
        subsection (a) may not exceed $5,000,000.
            (3) Determination required.--A transfer may not be 
        carried out by a manager of a field office under 
        subsection (a) unless the manager determines that the 
        transfer is necessary--
                    (A) to address a risk to health, safety, or 
                the environment; or
                    (B) to assure the most efficient use of 
                defense environmental management funds at the 
                field office.
            (4) Impermissible uses.--Funds transferred pursuant 
        to subsection (a) may not be used for an item for which 
        Congress has specifically denied funds or for a new 
        program or project that has not been authorized by 
        Congress.
    (c) Exemption From Reprogramming Requirements.--The 
requirements of section 3621 shall not apply to transfers of 
funds pursuant to subsection (a).
    (d) Notification.--The Secretary, acting through the 
Assistant Secretary of Energy for Environmental Management, 
shall notify Congress of any transfer of funds pursuant to 
subsection (a) not later than 30 days after such transfer 
occurs.
    (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        a program or project that is for environmental 
        restoration or waste management activities necessary 
        for national security programs of the Department, that 
        is being carried out by that office, and for which 
        defense environmental management funds have been 
        authorized and appropriated.
            (2) The term ``defense environmental management 
        funds'' means funds appropriated to the Department of 
        Energy pursuant to an authorization for carrying out 
        environmental restoration and waste management 
        activities necessary for national security programs.

SEC. 3630. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

    (a) Transfer Authority for Weapons Activities Funds.--The 
Secretary of Energy shall provide the manager of each field 
office of the Department of Energy with the authority to 
transfer weapons activities funds from a program or project 
under the jurisdiction of that office to another such program 
or project.
    (b) Limitations.--
            (1) Number of transfers.--Not more than one 
        transfer may be made to or from any program or project 
        under subsection (a) in a fiscal year.
            (2) Amounts transferred.--The amount transferred to 
        or from a program or project in any one transfer under 
        subsection (a) may not exceed $5,000,000.
            (3) Determination required.--A transfer may not be 
        carried out by a manager of a field office under 
        subsection (a) unless the manager determines that the 
        transfer--
                    (A) is necessary to address a risk to 
                health, safety, or the environment; or
                    (B) will result in cost savings and 
                efficiencies.
            (4) Limitation.--A transfer may not be carried out 
        by a manager of a field office under subsection (a) to 
        cover a cost overrun or scheduling delay for any 
        program or project.
            (5) Impermissible uses.--Funds transferred pursuant 
        to subsection (a) may not be used for an item for which 
        Congress has specifically denied funds or for a new 
        program or project that has not been authorized by 
        Congress.
    (c) Exemption From Reprogramming Requirements.--The 
requirements of section 3621 shall not apply to transfers of 
funds pursuant to subsection (a).
    (d) Notification.--The Secretary, acting through the 
Administrator for Nuclear Security, shall notify Congress of 
any transfer of funds pursuant to subsection (a) not later than 
30 days after such transfer occurs.
    (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        a program or project that is for weapons activities 
        necessary for national security programs of the 
        Department, that is being carried out by that office, 
        and for which weapons activities funds have been 
        authorized and appropriated.
            (2) The term ``weapons activities funds'' means 
        funds appropriated to the Department of Energy pursuant 
        to an authorization for carrying out weapons activities 
        necessary for national security programs.

SEC. 3631. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
                    DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriation Acts and section 
3621, amounts appropriated pursuant to a DOE national security 
authorization for management and support activities and for 
general plant projects are available for use, when necessary, 
in connection with all national security programs of the 
Department of Energy.
    And the House agree to the same.

                From the Committee on Armed Services, for 
                consideration of the House amendment and the 
                Senate amendment, and modifications committed 
                to conference:
                                   Bob Stump,
                                   Duncan Hunter,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   John M. McHugh,
                                   Terry Everett,
                                   Howard P. ``Buck'' McKeon,
                                   J.C. Watts, Jr.,
                                   Mac Thornberry,
                                   John N. Hostettler,
                                   Saxby Chambliss,
                                   Walter B. Jones,
                                   Van Hilleary,
                                   Lindsey Graham,
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Lane Evans,
                                   Martin T. Meehan,
                                   Robert A. Underwood,
                                   Thomas Allen,
                                   Silvestre Reyes,
                                   Jim Turner,
                                   Ellen O. Tauscher,
                From the Permanent Select Committee on 
                Intelligence, for consideration of matters 
                within the jurisdiction of that committee under 
                clause 11 of rule X:
                                   Porter J. Goss,
                                   Doug Bereuter,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 341-343, 
                and 366 of the House amendment, and secs. 331-
                333, 542, 656, 1064, and 1107 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Johnny Isakson,
                                   Joe Wilson,
                                   George Miller,
                From the Committee on Government Reform, for 
                consideration of secs. 323, 804, 805, 1003, 
                1004, 1101-1106, 2811, and 2813 of the House 
                amendment, and secs. 241, 654, 817, 907, 1007-
                1009, 1061, 1101-1106, 2811, and 3173 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Dan Burton,
                                   Dave Weldon,
                From the Committee on International Relations, 
                for consideration of secs. 1201, 1202, 1204, 
                title XIII, and sec. 3142 of the House 
                amendment, and subtitle A of title XII, secs. 
                1212-1216, 3136, 3151, and 3156-3161 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Henry Hyde,
                                   Benjamin A. Gilman,
                From the Committee on the Judiciary, for 
                consideration of secs. 811 and 1033 of the 
                House amendment, and secs. 1067 and 1070 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Lamar Smith,
                From the Committee on Resources, for 
                consideration of secs. 311, 312, 601, title 
                XIV, secs 2821, 2832, 2841, and 2863 of the 
                House amendment, and secs. 601, 2821, 2823, 
                2828, and 2841 of the Senate amendment, and 
                modifications committed to conference:
                                   John J. Duncan, Jr.,
                From the Committee on Science, for 
                consideration of secs. 244, 246, 1216, 3155, 
                3163 of the Senate amendment, and modifications 
                committed to conference:
                                   Sherwood L. Boehlert,
                                   Nick Smith,
                                   Ralph M. Hall,
                From the Committee on Small Business for 
                consideration of secs. 243, 824, and 829 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Donald A. Manzullo,
                                   Sue Kelly,
                From the Committee on Transportation and 
                Infrastructure, for consideration of sec. 601 
                of the House amendment, and secs. 601 and 1063 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Don Young,
                                   Frank A. LoBiondo,
                                   Corrine Brown,
                From the Committee on Veterans' Affairs, for 
                consideration of secs. 641, 651, 721, 723, 724, 
                726, 727, and 728 of the House amendment, and 
                secs. 541 and 641 of the Senate amendment, and 
                modifications committed to conference:
                                   Chris Smith,
                                 Managers on the Part of the House.

                                   Carl Levin,
                                   Ted Kennedy,
                                   Robert C. Byrd,
                                   Joseph I. Lieberman,
                                   Max Cleland,
                                   Mary L. Landrieu,
                                   Jack Reed,
                                   Daniel K. Akaka,
                                   Bill Nelson,
                                   Ben Nelson,
                                   Jean Carnahan,
                                   Mark Dayton,
                                   Jeff Bingaman,
                                   John W. Warner,
                                   Strom Thurmond,
                                   John McCain,
                                   James M. Inhofe,
                                   Pat Roberts,
                                   Jeff Sessions,
                                   Susan Collins,
                                   Jim Bunning,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the House to the amendment of the Senate to 
the bill (H.R. 4546), to authorize appropriations for fiscal 
year 2003 for military activities of the Department of Defense, 
for military construction, and for defense activities of the 
Department of Energy to prescribe personnel strengths for such 
fiscal year for the Armed Forces, and for other purposes, 
submit the following joint statement to the House and the 
Senate in explanation of the effect of the action agreed upon 
by the managers and recommended in the accompanying conference 
report:
      The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
      The House amendment struck out the matter proposed to be 
inserted by the Senate amendment and inserted a substitute 
text.
      The Senate recedes from its disagreement to the amendment 
of the House with an amendment which is a substitute for the 
House amendment and the Senate amendment. The differences 
between the Senate amendment, the House amendment, and the 
substitute agreed to in conference are noted below, except for 
clerical corrections, conforming changes made necessary by 
agreements reached by the conferees, and minor drafting and 
clarifying changes.

                Summary Statement of Conference Actions

      The conferees recommend authorization of appropriations 
for fiscal year 2003 for the Department of Defense for 
procurement; research and development; test and evaluation; 
operation and maintenance; working capital funds; military 
construction and family housing; and for weapons and 
environmental restoration programs of the Department of Energy, 
that have a budget authority implication of $392.9 billion for 
the national defense function.
      This funding level represents a $3.5 billion reduction to 
the amounts requested by the President to reflect the proper 
accounting for civilian retirement and health benefits under 
current law. The administration's budget included $3.5 billion 
in the national defense function as part of a governmentwide 
proposal for accrual funding that was not adopted by the 
committees of jurisdiction within Congress. This reduction of 
$3.5 billion is an accounting adjustment that does not reduce 
the amount of funding available for defense programs and would 
not result in any reduction in benefits for federal civilian 
employees of the Department of Defense or the Department of 
Energy.

                    Summary Table of Authorizations

      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is provided in appropriations acts.
      In order to relate the conference recommendations to the 
Budget Resolution, matters in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the national defense function 
are authorized permanently or, in certain instances, authorized 
in other legislation.
      The following table summarizes authorizations included in 
the bill for fiscal year 2003 and, in addition, summarizes the 
implications of the conference action for the budget authority 
totals for national defense (budget function 050).


                    Congressional Defense Committees

      The term ``congressional defense committees'' is often 
used in this statement of managers. It means the Defense 
Authorization and Appropriations Committees of the Senate and 
the House of Representatives.

            Division A--Department of Defense Authorizations


                          Title I--Procurement


Procurement overview

      The budget request for fiscal year 2003 included an 
authorization of $68,917.9 million for Procurement for the 
Department of Defense.
      The House bill would authorize $75,298.6 million.
      The Senate amendment would authorize $73,101.0 million.
      The conferees recommend an authorization of $73,969.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Aircraft Procurement, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $2,061.0 million for Aircraft Procurement, 
Army in the Department of Defense.
      The House bill would authorize $2,300.3 million.
      The Senate amendment would authorize $2,147.4 million.
      The conferees recommend an authorization of $2,186.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Missile Procurement, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,642.3 million for Missile Procurement, Army 
in the Department of Defense.
      The House bill would authorize $1,758.9 million.
      The Senate amendment would authorize $1,653.2 million.
      The conferees recommend an authorization of $1,152.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Weapons and Tracked Combat Vehicles, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $2,248.6 million for Procurement of Weapons 
and Tracked Combat Vehicles, Army in the Department of Defense.
      The House bill would authorize $2,373.0 million.
      The Senate amendment would authorize $2,242.9 million.
      The conferees recommend an authorization of $2,276.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Ammunition, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,159.4 million for Procurement of 
Ammunition, Army in the Department of Defense.
      The House bill would authorize $1,320.0 million.
      The Senate amendment would authorize $1,205.5 million.
      The conferees recommend an authorization of $1,229.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Other Procurement, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $5,168.5 million for Other Procurement, Army 
in the Department of Defense.
      The House bill would authorize $6,130.1 million.
      The Senate amendment would authorize $5,513.7 million.
      The conferees recommend an authorization of $5,857.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Chemical Agents and Munitions Destruction, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,490.2 million for Chemical Agents & 
Munitions Destruction, Army in the Department of Defense.
      The House bill would authorize $1,490.2 million for 
Chemical Agents & Munitions Destruction, Defense.
      The Senate amendment would authorize $1,490.2 million for 
Chemical Agents & Munitions Destruction, Defense.
      The conferees recommend an authorization of $1,490.2 
million for Chemical Agents & Munitions Destruction, Defense. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Aircraft Procurement, Navy--Overview

      The budget request for fiscal year 2003 included an 
authorization of $8,204.0 million for Aircraft Procurement, 
Navy in the Department of Defense.
      The House bill would authorize $9,077.6 million.
      The Senate amendment would authorize $9,037.2 million.
      The conferees recommend an authorization of $8,979.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.

MV-22/CV-22 Osprey aircraft advance procurement

      The budget request included $60.3 million in advance 
procurement to support production of 13 MV-22 aircraft in 
fiscal year 2004 and $10.1 million in advance procurement to 
support production of two CV-22 aircraft in fiscal year 2004.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $9.2 
million in Aircraft Procurement, Navy and a decrease of $10.1 
million in Aircraft Procurement, Air Force. These decreases 
reflect support for buying a total of 11 MV-22 aircraft and no 
CV-22 aircraft.
      Authorization of a maximum of 11 V-22 Osprey aircraft for 
fiscal year 2004 is consistent with section 123 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-
107). That provision restricts production of the V-22 (MV-22 
and CV-22) to the minimum sustaining production rate until the 
Secretary of Defense can make certain certifications to 
Congress.
      Given the V-22 schedule for testing, the Department of 
Defense has agreed that the maximum number of V-22 aircraft 
that it will be able to buy in fiscal year 2004 is 11. The 
Department of the Navy and the Department of the Air Force have 
asked, however, that Congress support buying nine MV-22 and two 
CV-22 aircraft in fiscal year 2004.
      Therefore, the conferees agree to authorize a total of 
$41.0 million in Aircraft Procurement, Navy for advance 
procurement for nine MV-22 aircraft, a decrease of $19.3 
million. The conferees agree to authorize the budget request 
for advance procurement supporting CV-22 aircraft.
      The conferees do not want support for buying CV-22 
aircraft in fiscal year 2004 to be interpreted as any change in 
their views concerning the requirements in the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107). 
Therefore, the conferees direct that no CV-22 Osprey aircraft 
be used for missions other than testing, training, or tactics 
development until that aircraft is in a configuration that has 
received the certifications required in the applicable parts of 
section 123 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107).

T-45 training system

      The budget request included $221.8 million to purchase 
eight T-45C aircraft but included no funds for advance 
procurement to support T-45C aircraft procurement in fiscal 
year 2004. The projections in the Future Years Defense Program 
include no T-45 procurement beyond fiscal year 2003.
      The House bill would authorize an increase of $10.0 
million for advance procurement to support fiscal year 2004 
procurement.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
      The conferees understand that the Navy has stated a 
requirement for 234 T-45 aircraft. The Navy's inventory, 
however, will total only 181 aircraft after delivery of the 
eight aircraft to be produced with fiscal year 2003 funds.
      The conferees understand that the Navy may be 
reconsidering the original decision to truncate production with 
the fiscal year 2003 procurement. Absent a change in the 
requirement for additional T-45C aircraft to support training 
requirements of the Department of the Navy, the conferees 
believe that the Navy should continue to buy T-45 aircraft and 
its associated training systems.
      If the Navy decides to continue production, the conferees 
encourage the Department of the Navy to investigate options for 
acquiring additional systems in the manner most advantageous to 
the Government, to include adopting a multiyear procurement 
contracting strategy.


Weapons Procurement, Navy--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,832.6 million for Weapons Procurement, Navy 
in the Department of Defense.
      The House bill would authorize $2,514.6 million.
      The Senate amendment would authorize $2,505.8 million.
      The conferees recommend an authorization of $2,375.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Ammunition, Navy and Marine Corps--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,015.2 million for Procurement of 
Ammunition, Navy and Marine Corps in the Department of Defense.
      The House bill would authorize $1,200.1 million.
      The Senate amendment would authorize $1,173.2 million.
      The conferees recommend an authorization of $1,170.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Shipbuilding and Conversion, Navy--Overview

      The budget request for fiscal year 2003 included an 
authorization of $8,191.2 million for Shipbuilding and 
Conversion, Navy in the Department of Defense.
      The House bill would authorize $9,279.5 million.
      The Senate amendment would authorize $9,314.2 million.
      The conferees recommend an authorization of $9,111.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Other Procurement, Navy--Overview

      The budget request for fiscal year 2003 included an 
authorization of $4,347.0 million for Other Procurement, Navy 
in the Department of Defense.
      The House bill would authorize $4,527.8 million.
      The Senate amendment would authorize $4,514.5 million.
      The conferees recommend an authorization of $4,494.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement, Marine Corps--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,288.4 million for Procurement, Marine Corps 
in the Department of Defense.
      The House bill would authorize $1,377.2 million.
      The Senate amendment would authorize $1,343.1 million.
      The conferees recommend an authorization of $1,355.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.

Batteries

      The budget request included no funding to replace 
batteries in the Marine Corps' fleet of prepositioned equipment 
stored in Norway or aboard the Maritime Prepositioning Force 
ships.
      The House bill and the Senate amendment would support the 
budget request.
      The Marine Corps believes that the use of batteries with 
newer technology that would replace the current lead-acid 
batteries could help reduce total ownership costs for vehicles 
maintained in long-term storage.
      The conferees, therefore, agree to an increase of $3.0 
million for batteries to be used for long-term storage 
applications.


Aircraft Procurement, Air Force--Overview

      The budget request for fiscal year 2003 included an 
authorization of $12,067.4 million for Aircraft Procurement, 
Air Force in the Department of Defense.
      The House bill would authorize $12,737.3 million.
      The Senate amendment would authorize $12,611.7 million.
      The conferees recommend an authorization of $12,676.5 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Missile Procurement, Air Force--Overview

      The budget request for fiscal year 2003 included an 
authorization of $3,575.2 million for Missile Procurement, Air 
Force in the Department of Defense.
      The House bill would authorize $3,482.6 million.
      The Senate amendment would authorize $3,258.2 million.
      The conferees recommend an authorization of $3,504.1 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement of Ammunition, Air Force--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,133.9 million for Procurement of 
Ammunition, Air Force in the Department of Defense.
      The House bill would authorize $1,294.8 million.
      The Senate amendment would authorize $1,275.9 million.
      The conferees recommend an authorization of $1,290.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Other Procurement, Air Force--Overview

      The budget request for fiscal year 2003 included an 
authorization of $10,523.9 million for Other Procurement, Air 
Force in the Department of Defense.
      The House bill would authorize $10,918.5 million.
      The Senate amendment would authorize $10,478.8 million.
      The conferees recommend an authorization of $10,846.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Procurement, Defense-Wide--Overview

      The budget request for fiscal year 2003 included an 
authorization of $2,688.5 million for Procurement, Defense-Wide 
in the Department of Defense.
      The House bill would authorize $3,235.4 million.
      The Senate amendment would authorize $3,054.9 million.
      The conferees recommend an authorization of $3,691.6 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.

Advanced SEAL Delivery System

      The budget request included $21.8 million for the 
Advanced SEAL Delivery System (ASDS) procurement, $34.7 million 
for ASDS advance procurement, and $12.2 million in PE 1160404BB 
for ASDS research, development, test and evaluation (RDT&E).
      The House bill would authorize the budget request.
      The Senate amendment would authorize $27.3 million for 
ASDS procurement, no funds for ASDS advance procurement, and no 
funds in PE 1160404BB for ASDS RDT&E, but it would identify 
$13.7 million of unused fiscal year 2002 procurement funds to 
meet fiscal year 2003 RDT&E requirements.
      The conferees agree to authorize an increase of $2.0 
million for ASDS procurement, no funds for ASDS advance 
procurement, and an increase of $9.6 million in PE 1160606BB 
for ASDS RDT&E. Of the $23.8 million authorized for ASDS 
procurement, the conferees agree that $12.0 million would cover 
the procurement of lithium ion batteries. The conferees have 
also included a provision (sec. 214) that would transfer $13.7 
million from the amount authorized and appropriated in fiscal 
year 2002 for ASDS advance procurement to the fiscal year 2003 
ASDS RDT&E account.
      Subsequent to submission of the budget request and the 
passage of the House and Senate bills, the U.S. Special 
Operations Command (SOCOM) approved a restructuring of the ASDS 
program, and the conferees were informed of changed fiscal year 
2003 funding requirements through the submission of a 
Department of Defense Authorization appeal. The amounts 
authorized by the conferees support the SOCOM-approved, 
restructured program.
      The conferees believe that the ASDS program continues to 
require increased attention from the Commander in Chief, 
Special Operations Command; the Naval Sea Systems Command; and 
the Office of the Secretary of Defense. Accordingly, the 
conferees direct that no more than 50 percent of the fiscal 
year 2003 ASDS procurement funding (excluding the $12.0 million 
amount for the lithium ion batteries) be obligated until the 
Secretary of Defense conducts a complete review of the 
requirements, mission, management, and cost structure of the 
ASDS program and reports to the congressional defense 
committees on his findings.


Chemical Agents and Munitions Destruction, Defense--Overview

      The budget request for fiscal year 2003 included an 
authorization of $1,490.2 million for Chemical Agents & 
Munitions Destruction, Army in the Department of Defense.
      The House bill would authorize $1,490.2 million for 
Chemical Agents & Munitions Destruction, Defense.
      The Senate amendment would authorize $1,490.2 million for 
Chemical Agents & Munitions Destruction, Defense.
      The conferees recommend an authorization of $1,490.2 
million for Chemical Agents & Munitions Destruction, Defense. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


                       Items of Special Interest


Big Safari

      The conferees are aware that the Air Force's Big Safari 
program office has contributed significantly to the Nation's 
defense through flexible and dynamic management of programs, 
including the RC-135 Rivet Joint aircraft and the Predator 
unmanned aerial vehicle.
      The conferees, however, are concerned that the management 
realignments associated with Big Safari that have been 
implemented over the past 10 years may have resulted in a 
layering of review processes and extended acquisition cycles. 
The existence of several intervening headquarters and agencies, 
in some cases, could inhibit communication between senior Air 
Force leadership and those responsible for rapidly fielding 
innovative intelligence, surveillance and reconnaissance (ISR) 
systems. The conferees believe the Big Safari approach to 
streamlined acquisition of specialized ISR capabilities is 
important to the effective execution of the war on terrorism. 
The conferees, therefore, recommend that the Secretary of the 
Air Force consider reestablishing Big Safari as a special 
projects office reporting directly to the Assistant Secretary 
of the Air Force for Acquisition.

Navy ship acquisition

      The conferees remain concerned about both the Department 
of Defense (DOD) and the Department of the Navy (DON) fiscal 
year 2003 and previous budget requests for ship acquisition 
programs. This concern arises from many facts, among which are:
            (1) Numerous witnesses, both government and 
        civilian, have testified on the requirement for 
        increased Navy ship acquisition and the annual 
        investment required to recapitalize the Navy's fleet to 
        meet the battle force ship force structure goals 
        outlined in the most recent Quadrennial Defense Review;
            (2) Despite congressional documentation over a 
        number of years that the Navy's budget requests are 
        insufficient to recapitalize the required fleet, the 
        Department of Defense continues to submit long-range 
        shipbuilding plans that are inadequate to carry out the 
        missions assigned to the Navy in both the short and 
        long-term; and
            (3) The Department of Defense has established a 
        consistent pattern of putting a large number of ships 
        in the latter years of the Future Years Defense Program 
        (FYDP), instead of placing the annual number required 
        in the budget year.
      The conferees are also concerned about the manner in 
which DOD and the DON are interacting with Congress on these 
important issues. For example, DOD was very late in submitting 
two acquisition-related attack submarine reports. The late 
submission of these reports, which required a review of the 
long-term approach to the stated problem of the low number of 
attack submarines, made it difficult for Congress to evaluate 
the annual attack submarine acquisition request. The 
Department's late or inadequate submission of congressionally 
mandated reports must be corrected.
      Absent more immediate investment, DOD will have to reduce 
the number or scope of missions assigned to Navy ships. 
Witnesses have testified that, if neither course is 
incorporated in future Navy budget programs, the men and women 
of the Navy and the Marine Corps will bear the burden of these 
decisions through some combination of longer deployments and 
less time at home between deployments. The conferees believe 
that concrete evidence has been presented to demonstrate that 
these burdens will result in lower retention, less training, 
and eventually undermanned ships at sea.
      In many instances, the overall Department of Defense ship 
acquisition message is confused. The conferees believe that DOD 
has provided only lukewarm support for the acquisition of new 
ships to modernize the Navy. Despite a sizeable increase in the 
fiscal year 2003 budget for national defense, the number of 
ships in the new construction shipbuilding account has declined 
from the level planned in the last FYDP. The conferees also 
believe that the DON shares blame for this confusion because it 
has been inconsistent in its description of force structure 
requirements. This situation makes it appear as if the Navy has 
not fully evaluated the long-term implications of its annual 
budget requests. Because it is difficult for Congress to 
dramatically adjust the course set in a budget request, the 
departments must consider the long-term implications of their 
annual budget requests.
      Other, more specific situations inform the conferees' 
conclusions, as noted below.
            (1) DOD and DON witnesses have consistently 
        testified over a number of years that the DON hopes to 
        make reductions in operating and support costs and 
        reallocate those funds for necessary shipbuilding 
        investments. The conferees believe that sufficient 
        evidence has accumulated over a number of years to 
        conclude that the Navy's hopes of harvesting operating 
        and support funds sufficient to recapitalize the fleet 
        are misplaced.
            (2) The size of the Navy has been steadily 
        declining, with no apparent solution to halt the 
        decline. Despite this fact, the DON has continued to 
        retire mission-capable ships before the end of their 
        useful service lives. While this action will achieve 
        modest, short-term operating and support cost savings, 
        the conferees believe that this situation reveals that 
        the DON is focusing too narrowly on near-term 
        exigencies. Retiring ships earlier than planned merely 
        adds to the size of the acquisition ``bow wave'' that 
        may already be reaching insurmountable proportions. 
        Accordingly, the conferees further believe that the 
        nation can ill afford to make a 30-year investment in a 
        ship acquisition and then receive less than 30 years 
        from that investment. If the DON continues making these 
        early retirements, the Navy may only achieve short-term 
        savings at the expense of preserving the capability to 
        maintain the level of forward presence and crisis 
        response that is presumed in the most recent 
        Quadrennial Defense Review.
            (3) The Navy has occasionally invoked an argument 
        that a smaller number of more capable ships can do the 
        same job as a greater number of ships with less 
        capability. While the conferees recognize that the Navy 
        buys new ships with increased capability as a response 
        to the evolving threat, the conferees believe that the 
        number of ships required to carry out the presence 
        mission has not diminished from those stated in the two 
        previous Quadrennial Defense Reviews.
            (4) Placing additional ship acquisition 
        requirements on an underfunded ship acquisition program 
        has exacerbated the budget pressure on the ship 
        acquisition account. The number of ships required to 
        execute the national military strategy should be fully 
        funded and should take priority over new ship 
        acquisition programs that have not been fully vetted. 
        The Navy's tendency to create new ship program requests 
        during the congressional budget review period indicates 
        a lack of planning, analysis, and foresight. This 
        practice generates questions about the validity of the 
        entire request and disrupts support for programs 
        budgeted to meet validated requirements.
            (5) The conferees note that the DON submitted a 
        report to Congress on the most efficient plan for 
        buying the ships in the long-range shipbuilding plan, 
        but despite its own analysis, the Navy subsequently 
        submitted a budget request that did not include those 
        efficiencies. Consequently, the conferees believe that 
        the Navy's acquisition strategy has resulted in higher 
        unit prices, ultimately resulting in a smaller number 
        of ships procured for the available funding.
            (6) DOD has conducted additional reviews, performed 
        multiple analyses, and produced numerous reports on 
        ship acquisition programs. These additional reviews, 
        while arriving at the same conclusions as previous 
        analyses, have been used as means to delay ship 
        requirements validations and acquisition increases to 
        meet those requirements. The conferees believe that 
        these postponements put added pressure on the Navy's 
        new construction shipbuilding account and increase the 
        slope of the acquisition ``mountain'' facing the Navy.
            (7) The conferees perceive that DOD lacks a 
        commitment to buy the number and type of ships required 
        to carry out the full range of Navy missions without 
        redundancy. The DON has proposed to buy more ships than 
        the stated requirement in some classes, while not 
        requesting sufficient new hulls in other classes that 
        fall short of the stated requirement. Additionally, the 
        conferees believe that the cost of ships will not be 
        reduced by continually changing the number of ships in 
        acquisition programs or by frequently changing the 
        configuration and capability of those ships, all 
        frequent attributes of recent DON shipbuilding plans. 
        The conferees intend to scrutinize closely proposals 
        for ships that would only yield marginal improvements 
        in any mission area already inherent in the fleet.
            (8) The conferees note that the Navy has testified 
        that personnel and maintenance comprise the largest 
        cost in the total acquisition and life-cycle costs, yet 
        the DON is not taking deliberate steps to buy ships 
        that would require smaller crews and would operate with 
        lower maintenance costs. Some ships are being designed 
        to achieve significant manpower life-cycle savings, but 
        the DON has delayed their acquisition and reduced their 
        numbers. Consequently, the conferees believe that these 
        delays will result in a more expensive future force 
        than need be.
            (9) Although some programs, such as the DD(X) 
        destroyer, aim to reach significant manpower reduction 
        goals, the DON is not identifying reasonable goals for 
        other major ship programs in the FYDP. Despite DON 
        testimony that manpower reduction goals are very 
        important, a General Accounting Office (GAO) review of 
        existing and future ship programs informs that most of 
        those programs do not include human systems integration 
        (HSI) in the operational requirements documents. GAO 
        further concluded that research shows HSI has great 
        potential for minimizing the costs of manning, thereby 
        reducing total ownership costs. Accordingly, the 
        conferees believe that the DON must institutionalize 
        the process by which they will reach their goal of an 
        effective Navy in the future at reduced total life-
        cycle costs.
      The conferees strongly recommend that the Navy design 
ship acquisition programs to take advantage of the best 
acquisition strategies that have been identified in the Navy's 
own reports as leading to the greatest cost savings. These 
include multiyear procurement, block buy of long lead materials 
and configuration stability for blocks of ships. The conferees 
further recommend that, once structured, the DON submit fully 
vetted and supported programs for acquisition and not change 
course in the middle of the process. Congress fully supports a 
strong Navy and Marine Corps team as indispensable to the 
national defense. DOD and the DON bear a significant 
responsibility for correcting the deficiencies noted above.

Cryptographic equipment modernization

      The conferees believe that the National Security Agency 
is making substantial progress in developing modern 
cryptographic equipment and materials. The conferees, however, 
fail to see evidence that the services are programming 
sufficient resources for cryptographic modernization 
procurement. The conferees expect the services to make better 
progress in addressing this problem by providing adequate 
procurement funding in future budget submissions.

Signals intelligence architecture

      The Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence (ASD (C3I)) has the 
responsibility to provide guidance and oversight with respect 
to policy for all aspects of information exchange networks and 
to all Department of Defense components. The ASD (C3I) is also 
responsible for providing guidance for data information and 
storage systems and their standardization to ensure service 
interoperability. The conferees recognize that the National 
Security Agency (NSA) has an important role in supporting this 
ASD (C3I) responsibility in the area of developing standards 
for signals intelligence (SIGINT) architecture for the 
Department of Defense.
      The conferees addressed airborne SIGINT architecture 
issues in the statement of managers (H. Rept. 107-333) 
accompanying the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107). The conferees encouraged the 
ASD (C3I) to develop an architectural plan to provide 
standards-based policy direction to the services, whose 
platform program offices can develop systems, and, to the 
maximum extent possible, share developments. The statement of 
managers expressed the expectation that the plan should 
include: (1) a robust spiral development approach; and (2) 
adequate emphasis on fielding and modernizing the appropriate 
ground support infrastructure.
      The conferees have been unable to detect progress within 
the Department on such an effort. The ASD(C3I) and the Director 
of the NSA have not been able to develop and field a cohesive 
SIGINT architecture with the necessary technical standards. In 
addition, the conferees can find no evidence that the 
leadership in either organization has provided sufficient 
support for establishing an organizational framework for 
coordinating their own organizational activities or for 
providing the cross-service oversight of joint intelligence 
surveillance and reconnaissance (ISR) SIGINT activities, 
particularly when it comes to information-sharing, routing, and 
access.
      Therefore, the conferees direct the ASD (C3I) to provide 
a report to the congressional defense and intelligence 
committees by May 30, 2003, on progress he is making in 
developing standards for SIGINT architecture for the Department 
of Defense.

                     Legislative Provisions Adopted


              Subtitle A--Authorization of Appropriations


Authorization of appropriations (secs. 101-107)

      The House bill contained provisions (secs. 101-107) that 
would authorize the recommended fiscal year 2003 funding levels 
for procurement for the Army, Navy, Marine Corps, Air Force, 
Defense-Wide activities, Defense Inspector General, Chemical 
Demilitarization Program, and Defense Health Program.
      The Senate amendment contained similar provisions (secs. 
101-107).
      The conference agreement includes these provisions.

Chemical Agents and Munitions Destruction, Defense (sec. 106)

      The House bill contained a provision (sec. 106) that 
would authorize $1.5 billion, the amount included in the budget 
request, for the destruction of chemical agents, munitions, and 
materiel.
      The Senate amendment contained a similar provision (sec. 
106) that would authorize the requested amount for chemical 
demilitarization in a Defense Department account, in accordance 
with section 1521(f) of title 50, United States Code.
      The House recedes.
      The conferees are disappointed that the Department of 
Defense requested funds for chemical demilitarization for 
fiscal year 2003 in an Army budget account, contrary to the 
requirements of law. Section 1521(f) of title 50, United States 
Code requires that funds for this program shall not be included 
in the budget accounts for any military department. The 
conferees expect the Department to comply with the law in 
future budget requests and therefore have approved a separate 
provision, described elsewhere in this report, concerning the 
budget submission.

                       Subtitle B--Army Programs


Pilot program on sales of manufactured articles and services of certain 
        Army industrial facilities without regard to availability from 
        domestic sources (sec. 111)

      The Senate amendment contained a provision (sec. 111) 
that would extend the authorization for Army industrial 
facilities to sell articles and services to commercial 
contractors providing weapon systems to the Department of 
Defense through fiscal year 2004.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Report on impact of Army aviation modernization plan on the Army 
        National Guard (sec. 112)

      The House bill contained a provision (sec. 145) that 
would require the Chief of the National Guard Bureau to submit 
to the congressional defense committees a report on the 
requirements for Army National Guard aviation, including an 
analysis of the impact of the Army Aviation Modernization Plan 
on the Army National Guard.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Chief of the National Guard Bureau to submit the report 
through the Army Chief of Staff for any comments and 
recommendations he considers appropriate before he forwards the 
report to the Committees on Armed Services of the Senate and 
House of Representatives. The conferees expect the report to 
include an analysis of the impact of the Army Aviation 
Modernization Plan on Army National Guard homeland security 
search and rescue, MEDEVAC, and state emergency missions.

Family of Medium Tactical Vehicles (sec. 113)

      The conferees agree to include a provision that would 
provide the Army multiyear procurement (MYP) authority for the 
procurement of the Family of Medium Tactical Vehicles (FMTV).
      The budget request included $681.4 million to procure the 
FMTV to replace the Army's aging fleet of medium tactical 
vehicles. The FMTV is a complete series of trucks and trailers 
based on a common chassis, varied by payload and mission. In 
the fiscal year 2003 budget request, the Army intends to buy 
2,572 FMTV A1 models through the option clause of the current 
sole-source multiyear contract and 1,002 FMTV A1 competitive 
rebuy (CR) models through the first year of a ``competitive 
rebuy'' multiyear contract scheduled for award in March 2003.
      The Army failed to request multiyear procurement 
authority for the FMTV A1 CR until after both houses of 
Congress had acted on their respective National Defense 
Authorization Bills for Fiscal Year 2003.
      The conferees note that the Army has had technical 
problems with previous versions of the FMTV. Therefore, the 
conferees agree that the Secretary of the Army may not enter 
into a multiyear contract until the Secretary certifies to the 
congressional defense committees that the FMTV A1 CR models 
meet all key performance parameters required in the initial 
operational test and evaluation.
      The conferees also note that the Army estimates a $222.0 
million cost savings (6.5 percent of the contract value) using 
a five-year multiyear procurement contract for the FMTV A1 CR 
over that of annual buys, for the same period of time. The 
conferees believe that the Army can achieve at least a 10 
percent cost savings when both multiyear procurement authority 
and competition are factored into cost estimates. Therefore, 
the conferees agree that the Secretary of the Army may not 
enter into a MYP contract until he certifies that the total 
cost of the procurement of the FMTV A1 CR under the program 
over five fiscal years using MYP contracting authority is 
estimated to be at least 10 percent less than the estimated 
total cost of the procurement of FMTV A1 CR over the same five-
year period through the use of successive one-year contracts. 
The Secretary of Defense may waive this limitation if he 
determines that the procurement of vehicles using a MYP 
contract is in the national security interests of the United 
States; certifies that the Army cannot achieve a 10 percent 
cost savings; and submits to the congressional defense 
committees, in writing, a notification of the waiver together 
with a report outlining the reasons why the use of a MYP 
contract is in the national security interests of the United 
States and reasons why the Army cannot achieve a 10 per cent 
savings of the total anticipated costs of carrying out the 
program through a MYP contract.

                       Subtitle C--Navy Programs


Extension of multiyear procurement authority for DDG-51 class 
        destroyers (sec. 121)

      The Senate amendment contained a provision (sec. 122) 
that would authorize an extension, through fiscal year 2007, of 
the multiyear procurement authority for Arleigh Burke-class 
(DDG-51) destroyers.
      The House bill contained no similar provision.
      The House recedes.

Sense of Congress on scope of conversion program for Ticonderoga-class 
        cruisers (sec. 122)

      The Senate amendment contained a provision (sec. 123) 
that would state that the Secretary of the Navy should maintain 
the scope of the cruiser conversion program to cover all 27 
Ticonderoga-class cruisers with an appropriate mix of 
modernization upgrades.
      The House bill contained no similar provision.
      The House recedes with an amendment making the scope of 
cruiser conversion a sense of Congress.

Continuation of contract for operation of Champion-class T-5 fuel 
        tanker vessels (sec. 123)

      The House bill contained a provision (sec. 112) that 
would prohibit the Navy's requested acquisition of Champion-
class T-5 fuel tanker ships.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the Navy to acquire the vessels. The amended provision would 
require that the Navy maintain the current operating contract 
for each vessel until the end of the current contract, or until 
the Navy or Military Sealift Command is no longer using the 
vessel, whichever is earlier.

                     Subtitle D--Air Force Programs


Multiyear procurement authority for C-130J aircraft program (sec. 131)

      The House bill contained a provision (sec. 121) that 
would authorize the Secretary of the Air Force to enter into a 
multiyear contract 30 days after the Secretary of Defense has 
submitted a certification that the C-130J program is making 
satisfactory progress toward a successful operational test and 
evaluation.
      The Senate amendment contained a similar provision (sec. 
131) that would authorize the Secretary of the Air Force to 
enter into a multiyear contract that could extend for six 
program years, subject to the program's having been cleared for 
worldwide over-water capability.
      The conferees agree to a provision that would authorize 
the Secretary of the Air Force to enter into a multiyear 
contract that could extend for six program years, subject to 
the program's having completed qualification for air assault 
operations and installation of certain software upgrades.

Pathfinder programs (sec. 132)

      The Senate amendment contained a provision (sec. 132) 
that would require: (a) the Secretary of the Air Force to 
submit to Congress a list of Air Force programs designated as 
acquisition reform pathfinder programs by February 1, 2003; (b) 
approval or disapproval of the spiral development plans 
associated with these pathfinder programs by the Secretary of 
Defense; and (c) assessments by the Under Secretary of Defense 
(Comptroller), the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, the Director of Operational Test and 
Evaluation, and the Joint Requirements Oversight Council of 
those pathfinder programs that were not chosen to be spiral 
development programs. Spiral development programs are covered 
by another Senate provision (sec. 803).
      The House bill contained no similar provision.
      The conferees agree that Congress needs a further 
understanding of the Department of Defense plans for pathfinder 
programs, as well as information on lessons learned from 
pathfinder programs that could be applied to other programs. 
The conferees also agree that appropriate oversight should be 
maintained over such programs.
      Therefore, the House recedes with an amendment that would 
require the Secretary of the Air Force to submit a list of Air 
Force programs designated as pathfinder programs by February 1, 
2003, and would require the Secretary of Defense to ensure that 
the Undersecretary of Defense for Acquisition, Technology, and 
Logistics, the Director of Operational Test and Evaluation, and 
the Joint Requirements Oversight Council maintain oversight of 
each pathfinder program. The amendment would also require the 
Secretary of the Air Force to submit to Congress by March 15, 
2003, a report on pathfinder programs describing how oversight 
by these organizations will be accomplished, as well as the 
management, acquisition, and test and evaluation plans for each 
pathfinder program. The report would also contain a description 
of any innovative business practices that could be applied to 
other programs. The amendment would not exempt Air Force 
pathfinder programs from the requirements for spiral 
development programs specified in section 803.

Leases for tanker aircraft under multiyear aircraft-lease pilot program 
        (sec. 133)

      The Senate amendment contained a provision (sec. 134) 
which would require that the Secretary of the Air Force not 
enter into any lease for tanker aircraft until: (1) he has 
submitted the report required by Section 8159 of the Department 
of Defense Appropriations Act for Fiscal Year 2002 (Public Law 
107-117); and (2) he has obtained authorization and 
appropriation of funds necessary to enter a lease for such 
aircraft, in accordance with his publicly stated commitments to 
Congress.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the Secretary may not enter into such a lease until the 
Secretary either: (1) obtains authorization and appropriation 
of needed funds; or (2) submits a new start reprogramming 
notification to the congressional defense committees. The 
Secretary of the Air Force informed the Committee on Armed 
Services of the Senate February 12, 2002, that he would not 
take any action on tanker leasing proposals without first 
coming to both the authorization and the appropriations 
committees to have money authorized and appropriated or 
reprogrammed for these purposes. The conferees expect that the 
Secretary will live up to this commitment, regardless of 
whether the request for funds is submitted through the normal 
budget deliberation process or through established procedures 
observed in the reprogramming process.

                       Subtitle E--Other Programs


Destruction of existing stockpile of lethal chemical agents and 
        munitions (sec. 141)

      The House bill contained a provision (sec. 143) that 
would require that the chemical demilitarization program be 
managed as a major defense acquisition program. It would also 
require that the Under Secretary of Defense (Comptroller) 
provide an annual certification that the budget request for the 
chemical agents and munitions destruction program has been 
submitted in compliance with applicable Federal laws.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
specify that the Comptroller certify that the budget request 
has been submitted in accordance with section 1412 of the 
Department of Defense Authorization Act for 1986 (Public Law 
99-145).
      Section 1521(f) of title 50, United States Code requires 
that funds for the chemical demilitarization program, including 
those for military construction, ``shall be set forth in the 
budget of the Department of Defense for any fiscal year as a 
separate account. Such funds shall not be included in the 
budget accounts for any military department.'' The Department 
of Defense submitted the fiscal year 2003 budget request for 
chemical demilitarization in an Army account, contrary to the 
law. The conferees expect the Department to comply with the law 
in future budget requests by submitting the budget request for 
chemical agents and munitions destruction in a Department of 
Defense account. This certification provision is intended to 
help ensure such compliance.

Report on unmanned aerial vehicle systems (sec. 142)

      The House bill contained a provision (sec. 144) that 
would require the Secretary of Defense to submit a report to 
Congress on unmanned aerial vehicle (UAV) systems.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the report to describe the process by which the Department will 
ensure that any UAV program proceeding past the science and 
technology stage does so only as part of an integrated, overall 
Office of the Secretary of Defense strategy for UAV 
acquisition.
      The conferees support the Department's plans to procure 
and field a substantial number of UAVs starting in fiscal year 
2003. However, the conferees also want to ensure that UAV 
systems are appropriately integrated into an overall 
departmental strategy that will minimize redundancy and 
maximize commonality.

Global Information Grid system (sec. 143)

      The House bill contained a provision (sec. 1527) that 
would prohibit the obligation of funds for the Global 
Information Grid (GIG) system until the Secretary of Defense 
certifies to the congressional defense committees that the 
system is secure and protected from unauthorized access.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that prohibits the 
obligation of funds for the GIG until the Secretary of Defense 
submits a plan to ensure that, as part of bandwidth expansion 
efforts, the information transmitted within the system is 
secure and protected.

                   Legislative Provisions Not Adopted


Compass Call program

      The Senate amendment contained a provision (sec. 135) 
that would shift $12.7 million in Compass Call aircraft 
modifications from the Defense Airborne Reconnaissance Program 
line to the Classified Projects line.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Integrated bridge system

      The Senate amendment contained a provision (sec. 121) 
that would authorize $5.0 million for the integrated bridge 
system.
      The House bill contained no similar provision.
      The Senate recedes on the provision. By convention, 
outcomes of funding differences between the House bill and the 
Senate amendment are included in the tables elsewhere in this 
report.

Marine Corps live fire range improvements

      The Senate amendment contained a provision (sec. 124) 
that would authorize $1.9 million for various improvements in 
live fire training ranges of the Marine Corps.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Mobile emergency broadband system

      The Senate amendment contained a provision (sec. 137) 
that would authorize $1.0 million to buy technical 
communications-electronics equipment for the emergency mobile 
broadband system.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Reallocation of certain funds for Air Force Reserve Command F-16 
        aircraft procurement

      The House bill contained a provision (sec. 122) that 
would authorize $14.4 million for the 36 Litening II 
modernization upgrade kits for the F-16 block 25 and block 30 
aircraft (rather than for Litening AT pods for such aircraft).
      The Senate amendment contained no similar provision.
      The House recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Shipbuilding initiative

      The House bill contained a provision (sec. 111) that 
would authorize an additional $810.0 million for shipbuilding 
programs.
      The section would provide that if the Virginia-class 
prime contractor were to reach an agreement with the Government 
as of the date of enactment of this bill to spend at least 
$385.0 million for the Virginia-class submarine program from 
its own funds, then the provision would authorize: (1) an 
additional $810.0 million for an additional Arleigh Burke-class 
(DDG-51) destroyer; and (2) multiyear procurement for Virginia-
class submarines, commencing in fiscal year 2003.
      If such an agreement were not reached, the provision 
would authorize the following:
            (1) $415.0 million for Virginia-class submarine 
        advance procurement;
            (2) $210.0 million for cruiser conversion advance 
        procurement; and
            (3) $185.0 million for a nuclear attack submarine 
        refueling overhaul.
      The Senate amendment contained no similar provision.
      The House recedes.

         Title II--Research, Development, Test, and Evaluation


Research, Development, Test, and Evaluation overview

      The budget request for fiscal year 2003 included an 
authorization of $53,924.2 million for Research and Development 
for the Department of Defense.
      The House bill would authorize $56,816.6 million.
      The Senate amendment would authorize $55,751.4 million.
      The conferees recommend an authorization of $56,777.4 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.

Department of Defense science and technology funding

      The budget request contained $10,009.2 million for 
defense science and technology, including all defense-wide and 
military service funding for basic research, applied research, 
and advanced technology development. To address the conferees' 
concerns with respect to critical shortcomings in the budget 
request, the conferees recommend an authorization of $10,384.7 
million, an increase of $375.5 million for the defense science 
and technology (S&T) program.
      The conferees note that the budget request represents an 
increase of $1231.4 million, or 14.0 percent above the amount 
requested for the fiscal year 2002 budget, and 2.7 percent of 
the budget request. The conferees also note that the amount in 
the budget request for science and technology is an increase of 
$132.0 million from the amount provided by Congress for fiscal 
year 2002. However, the Army and Navy science and technology 
accounts each decreased more than 21 percent (nearly $400 
million each).
      The conferees view defense science and technology 
investments as critical to maintaining U.S. military 
technological superiority in the face of growing and changing 
threats to national security interests around the world, and 
believe that both the defense agencies and the military 
departments have vital roles in the Department's science and 
technology investment strategy. Although pleased with the 
overall progress in the defense science and technology program, 
the conferees continue to be disturbed by the continuing trend 
of overall reduction in the military departments' science and 
technology programs and the effect of that trend on the 
critical role that the military departments play in the 
transition of science and technology into acquisition programs.
      The conferees note the finding of the Defense Science 
Board Letter Report on the Department of Defense Science and 
Technology Program (August 2000) which noted that a significant 
change in defense science and technology over the past 10 years 
has been the erosion of military department's science and 
technology budgets. The report notes, and the conferees are 
aware, that a major reason the military departments' science 
and technology budgets have declined is because the services 
have had to emphasize funding for current operations. The shift 
in funding away from science and technology raises issues of 
whether the services are investing sufficiently to properly 
address their long-term technology needs.
      The Department's science and technology program has long 
played a crucial role in the development of technology and in 
the education and training of the scientific and engineering 
personnel required to support the continuing technical advances 
critical to maintain superior military capabilities. The 
ability of today's U.S. military forces to deploy anywhere in 
the world, sustain forward presence, and win decisively on the 
battlefield results from past investments in research and 
technology. For more than 50 years, these investments have 
enabled the Department of Defense to advance the frontiers of 
knowledge and develop the technologies necessary to gain and 
maintain operational and technical superiority.
      The conferees commend the Department of Defense 
commitment to a goal of three percent of the budget request for 
the defense science and technology program and progress toward 
this goal. The conferees also note the finding in the Defense 
Science Board report that successful high technology industries 
invest about 3.5 percent of sales in research (equivalent to 
the DOD S&T program) and the recommendation that S&T funding 
should be increased to ensure the continued long-term technical 
superiority of U.S. military forces in the 21st Century. The 
conferees believe that the Department must continue to provide 
the necessary investments in research and technologies that 
ensure a strong, stable, and robust science and technology 
program for our Armed Forces.


                                  ARMY


Research, Development, Test and Evaluation, Army--Overview

      The budget request for fiscal year 2003 included an 
authorization of $6,918.5 million for Research, Development, 
Test and Evaluation, Army in the Department of Defense.
      The House bill would authorize $6,933.3 million.
      The Senate amendment would authorize $7,301.4 million.
      The conferees recommend an authorization of $7,158.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


                                  NAVY


Research, Development, Test and Evaluation, Navy--Overview

      The budget request for fiscal year 2003 included an 
authorization of $12,501.6 million for Research, Development, 
Test and Evaluation, Navy in the Department of Defense.
      The House bill would authorize $13,274.5 million.
      The Senate amendment would authorize $12,913.1 million.
      The conferees recommend an authorization of $13,244.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Marine mammal research

      The budget request included $393.6 million in PE 61153N 
for basic research to support naval applications.
      The House bill would authorize an increase of $2.1 
million to the budget request for marine mammal research.
      The Senate amendment would authorize an increase of $2.0 
million to the budget request.
      The conferees recommend an increase of $2.0 million for 
basic research on marine mammals. The conferees support 
research on marine mammal behavior that can help address 
heightened public concern about the effects of military and 
industrial activity on these animals, including additional 
behavioral and acoustics research and efforts to detect the 
presence of marine mammals and take mitigating action to 
protect animals as necessary.

Littoral support craft--experimental

      The budget request contained $57.6 million in PE 63123N 
for force protection advanced technology development but 
included no funds to continue the development of the Littoral 
Support Craft--Experimental (LSC-X). The Office of Naval 
Research has proposed to conduct a phased program to develop 
and demonstrate an experimental littoral support craft 
demonstrator that would provide the basis for operational 
experiments on the contribution that such a craft could make to 
naval operations in the littorals, and $36.2 million for this 
purpose was provided in fiscal year 2002.
      The House bill would authorize an additional $13.7 
million to continue development of the LSC-X.
      The Senate amendment included no similar recommendation.
      The statement of managers (H. Rept. 107-333) accompanying 
the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107) directed the Secretary of the Navy to 
identify the set of experimental objectives that the LSC-X 
program is intended to explore and the objective measures of 
effectiveness that will be used to determine whether those 
objectives have been achieved. The conferees also directed the 
Secretary to define the program plan, the schedule, and the 
funding requirements for development of LSC-X.
      The Secretary of the Navy submitted a report, dated 
August 6, 2002, that provides the Navy's plan for the 
development of the LSC-X. The report addresses the experimental 
concepts to be explored by naval forces in a phased plan that 
culminates in the use of the craft to test new technology and 
operational concepts which could be candidates for future 
support of expeditionary and littoral operations. The report 
stated that no additional funding would be required to build, 
outfit, and test the LSC-X prototype hull, beyond those funds 
already provided in fiscal year 2002.
      According to the Navy's plan, the vessel should be ready 
for initial sea trials in the summer of 2004. The conferees 
also note the views expressed in the House report (H. Rept. 
107-33) that a littoral support craft demonstrator such as the 
LSC-X design, which would include a modular payload capability 
that allows the use of different technology demonstrators and 
warfare mission modules, could be an effective experimental 
test bed for many of the technologies that might be chosen for 
use on a littoral combat ship (LCS). Elsewhere in this report, 
the conferees have directed the Secretary of the Navy to 
address the role that various demonstration platforms such as 
the LSC-X will play in the LCS acquisition strategy.
      The conferees direct the Secretary of the Navy to develop 
LSC-X as a complete system, including such combat, 
communications and weapons systems interfaces as may be 
required to demonstrate technologies and modular payloads, such 
as the affordable weapon system, that might be considered for 
the LCS program. To that end, the conferees direct the Navy to 
include in the phase one ``design and build'' portion of the 
program the total system interface definitions that will be 
required to demonstrate systems and technologies planned for 
the phase three ``technology and operational concept 
evaluation'' segment of the LSC-X program.
      The conferees also believe that the Navy should 
accelerate phase three to ensure that information required for 
application to a littoral combat ship program will be available 
before the Navy requests funds to design such a ship. The 
conferees recognize that this may require a combination of 
science and technology and system development and demonstration 
funding.
      Therefore, the conferees agree to an increase of $13.0 
million in PE 63123N to continue development of the LSC-X 
demonstrator. The conferees also direct the Secretary to update 
his report on the development plan and identify any funding 
required for the LSC-X program. The Secretary should submit 
that updated report with the budget request for fiscal year 
2004.

                               AIR FORCE


Research, Development, Test and Evaluation, Air Force--Overview

      The budget request for fiscal year 2003 included an 
authorization of $17,601.2 million for Research, Development, 
Test and Evaluation, Air Force in the Department of Defense.
      The House bill would authorize $18,803.2 million.
      The Senate amendment would authorize $18,611.2 million.
      The conferees recommend an authorization of $18,337.1 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Multi-sensor command and control constellation

      The budget request for the Defense Emergency Response 
Fund (DERF), Security, Communications, and Information 
Operations activity included $488.0 million for the multi-
sensor command and control constellation (MC2C) program. This 
request included $150.0 million for the purchase of a Boeing 
767-400ER testbed aircraft for the multi-sensor command and 
control aircraft (MC2A) and $100.0 million for integration 
engineering for that aircraft. The request also included $238.0 
million to accelerate the initial sensor suite, known as the 
multi-platform radar technology insertion program (MP-RTIP), 
for the MC2A aircraft and for the Global Hawk unmanned aerial 
vehicle. The budget request also included $191.1 million in PE 
27449F for the MC2C program, reflecting a total request of 
$679.1 million.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a total of $429.1 
million for the program. This decrease of $250.0 million was 
based on the belief that the Air Force did not have to budget 
for the testbed aircraft and its initial integration 
engineering in fiscal year 2003, since the MP-RTIP system would 
not be available to install in the aircraft until fiscal year 
2007.
      The conferees agree to authorize a decrease of $75.0 
million for the aircraft purchase and a decrease of $35.0 
million for the associated integration engineering activities.
      The Air Force has informed the conferees that they have 
extended the schedule for manufacturing, integration 
engineering, and airworthiness flight testing for the MC2A 
testbed aircraft. The new estimate of the schedule would reduce 
the amount of time available to modify the aircraft to a 
configuration that would support installation of the MP-RTIP 
sensor. The revised schedule calls for delivery of the testbed 
aircraft late in the third quarter of fiscal year 2004 rather 
than the originally planned delivery early in the first quarter 
of fiscal year 2004.
      The conferees agree that, under the revised schedule, the 
Air Force may begin the purchase of the aircraft in fiscal year 
2003, but should split the cost of the aircraft and integration 
engineering between fiscal years 2003 and 2004. Since the 
schedule for the aircraft has been delayed, the conferees have 
determined that the Air Force does not require all of the 
funding originally requested for integration engineering tasks 
in fiscal year 2003.
      Therefore, the conferees agree to authorize a total of 
$569.1 million for the program, a total decrease of $110.0 
million.

                              DEFENSE-WIDE


Research, Development, Test and Evaluation, Defense-Wide--Overview

      The budget request for fiscal year 2003 included an 
authorization of $16,613.6 million for Research, Development, 
Test and Evaluation, Defense-Wide in the Department of Defense.
      The House bill would authorize $17,516.3 million.
      The Senate amendment would authorize $16,496.9 million.
      The conferees recommend an authorization of $17,659.1 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Advanced aerospace systems

      The budget request included $246.0 million in PE 63285E 
for research to address high payoff opportunities associated 
with advanced aeronautical and space systems.
      The House bill would authorize a decrease of $50.0 
million in PE 63285E.
      The Senate amendment would authorize the budget request.
      The conferees agree to a $10.5 million reduction to PE 
63285E. The conferees direct that this reduction not be 
assessed against the Unmanned Combat Air Vehicle programs.

Arrow

      The budget request included $65.7 million in PE 63881C 
for the joint U.S./Israeli Arrow missile defense program.
      The House bill would authorize an increase of $91.0 
million in PE 63881C for the Arrow program.
      The Senate amendment would authorize an increase of $40.0 
million in PE 63881C for the Arrow program.
      The conferees strongly support the Arrow program and 
agree that, of the funding authorized for the Missile Defense 
Agency, up to an additional $55.0 million may be used for the 
Arrow program.

                          TEST AND EVALUATION


Operational Test and Evaluation, Defense--Overview

      The budget request for fiscal year 2003 included an 
authorization of $222.1 million for Operational Test and 
Evaluation, Defense.
      The House bill would authorize $222.1 million.
      The Senate amendment would authorize $361.6 million.
      The conferees recommend an authorization of $311.6 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


                       Items of Special Interest


Biometric identification technology

      The budget request included the following amounts for 
research and development activities related to information 
systems security programs: (1) $394.3 million in PE 33140G; (2) 
$14.8 million in PE 33140A; (3) $18.4 million in PE 33140N; and 
(4) $9.4 million in PE 33140F. Within those amounts, the budget 
request included $4.3 million in projects related to biometric 
and anti-tamper evaluations in PE 33140G and $6.0 million in PE 
33140A supporting the Department of the Army and Department of 
Defense Executive Agent activities for biometrics.
      The House bill and the Senate amendment would support the 
budget request.
      The House report (H. Rept. 107-592) on the Intelligence 
Authorization Act for Fiscal Year 2003 (H.R. 4628) would 
recommend $15.0 million within PE 33140G for a national 
biometric security project.
      The conferees understand that use of biometric 
identification techniques could dramatically improve national 
infrastructure security. For example, biometric technology can 
be used for protecting electronic information systems, ensuring 
the authenticity of communications, and deterring terrorist or 
other attacks against the national communications 
infrastructure.
      The conferees believe that the Defense Department's 
biometrics research and development programs might benefit from 
participation in a national-level consortium. That consortium 
might coordinate biometric research, assess various biometric 
techniques, evaluate promising technologies, and educate 
information professionals. Such a consortium approach might be 
used to mobilize and coordinate biometric expertise and provide 
an informed basis for integrating biometric technologies into a 
comprehensive approach to infrastructure security. In so doing, 
a consortium could provide independent, private sector advice 
and support on how best to deploy biometrics and biometric 
technologies to help deter or respond to terrorist attacks 
against the national critical infrastructure.
      Therefore, the conferees encourage the Director of the 
National Security Agency to investigate the possibility of 
sponsoring a national biometric security project and provide 
the results of that investigation to the congressional defense 
and intelligence committees when he completes that review. The 
conferees also believe that it would be appropriate to use 
resources from within the information systems security program 
to conduct such a review.

Delegation of research, development, test, and evaluation programs and 
        activities

      The conferees support the efforts of the Department of 
Defense to streamline and transform itself in order to more 
effectively modernize and achieve its mission. The conferees 
are concerned, however, about recent efforts to devolve 
numerous research, development, test, and evaluation (RDT&E) 
programs within the Office of the Secretary of Defense (OSD) to 
the services and defense components. In particular, the 
conferees note that several programs with significant 
congressional interest are being transferred out of OSD, many 
of which are managed by OSD at congressional direction. It is 
the conferees' understanding that these programs are being 
transferred to achieve staffing and budget goals within OSD, 
rather than to improve the execution or performance of the 
affected programs. The conferees believe that the level of 
support that these RDT&E programs will receive if managed by 
the services and defense components will be reduced without OSD 
oversight. In addition, many of these programs serve multiple 
military objectives, which may not be addressed if the programs 
are managed by the individual services or defense components.
      Therefore, the conferees direct the Secretary of Defense 
to halt any efforts to transition the following RDT&E programs 
to a particular service or defense component: (1) Strategic 
Environmental Research and Development Program; (2) Defense 
Experimental Program to Stimulate Competitive Research; (3) 
Environmental Security Technology Certification Program; (4) 
In-House Laboratory Independent Research; (5) High Performance 
Computer Modernization Program; (6) High Energy Laser Program; 
(7) Mentor Protege Program; (8) University Research Initiative; 
(9) Foreign Comparative Test Program; and (10) Joint Robotics 
Program.
      The conferees direct the Secretary of Defense to provide 
notification to Congress prior to the delegation of research, 
development, test, and evaluation activities and programs from 
the Office of the Secretary of Defense to a service or other 
defense component outside of OSD. The conferees direct the 
Secretary to provide justification for any proposed delegations 
in the form of a mandated report.
      A report on a delegation of authority should include each 
of the following: (1) an identification of the Secretary of a 
military department or head of a defense agency or other 
element of the Department of Defense to whom the delegation is 
made; (2) an evaluation of how the delegation is expected to 
improve the efficiency and performance of the program or 
activity in accomplishing the stated goals and purposes of the 
program or activity; (3) a description of plans for continued 
supervision of the program by the Office of the Secretary of 
Defense to ensure that the program or activity has sufficient 
resources to accomplish its stated goals and purposes; and (4) 
an identification of any changes in existing law necessary to 
support the delegation and a request that such changes be 
enacted.
      The conferees note that any delegation of RDT&E 
activities or programs by the Secretary of Defense shall be 
subject to careful congressional scrutiny. Some of the programs 
proposed for delegation were established at the OSD level by 
statute and will require changes to such statutes or enactment 
of specific authorization enabling the Secretary of Defense to 
delegate the program, while others may involve strong 
congressional interest. The conferees expect the Secretary of 
Defense to consider these legal requirements and congressional 
interests in rendering a decision on devolvement.

Management of the chemical-biological defense program

      The conferees have been informed that on September 19, 
2002, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics (USD(AT&L)) approved an acquisition 
decision memorandum that would reorganize management of the 
chemical-biological defense program. The new streamlined 
management structure would place authority and accountability 
with specific individuals in an effort to improve the program's 
efficiency and responsiveness to warfighter and national 
security needs. Under the revised management structure, a Joint 
Program Executive Office (JPEO) would be established that would 
have responsibility for chemical- biological defense 
acquisition programs and would report through the Army 
Acquisition Executive to the Defense Acquisition Executive. 
Responsibility for chemical-biological defense science and 
technology programs, except those programs separately funded 
and managed by the Defense Advanced Research Projects Agency 
(DARPA), would be assigned to the Defense Threat Reduction 
Agency (DTRA), which would also continue to perform funding 
management functions under the oversight of the Assistant to 
the Secretary of Defense (Nuclear and Chemical and Biological 
Defense Programs) (ATSD(NCB)). Responsibility for overall 
coordination and integration of all activities within the 
chemical-biological defense program, to include policy 
guidance, interagency and international coordination 
responsibility, and day-to-day oversight, would be exercised by 
the ATSD(NCB) in accordance with section 1701 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160). The ATSD(NCB) would establish and chair a permanent 
overarching integrated product team, consisting of 
representatives from the military services, the Joint Staff, 
and the Office of the Secretary of Defense, to assist the 
ATSD(NCB) in this oversight role.
      The conferees understand that the Joint Requirements 
Oversight Council has already established a Joint Requirements 
Office for Nuclear, Biological and Chemical (NBC) Defense in 
the Joint Staff, which replaces the current requirements 
process under the Joint NBC Defense Board and will integrate 
and establish priorities for chemical-biological defense 
requirements.
      The conferees strongly support the Under Secretary's 
objective of establishing a streamlined management structure 
for the chemical-biological defense program that will improve 
authority and accountability and will ensure that the program 
is better able to respond to warfighter and national needs. The 
conferees agree that the establishment of a JPEO responsible 
for acquisition programs will provide a single, dedicated 
executive, who will be able to integrate programs and funding 
across commodity areas and services and effectively link 
programmatic and acquisition authority. The conferees believe 
that the JPEO should be established as a joint activity with 
subordinate program managers drawn from all the military 
services.
      The conferees are concerned, however, about the 
assignment of responsibility for the science and technology 
program to DTRA.
      The conferees note that the predominant expertise in the 
chemical-biological defense science and technology program 
resides in the military departments and particularly in the 
chemical-biological, medical biological, and medical chemical 
defense science and technology programs of the Army, which is 
currently responsible for approximately 70 percent of the 
program. The conferees are concerned about how this existing 
technical expertise would continue to be leveraged under a 
science and technology program managed and executed by DTRA.
      The conferees note that, to date, DTRA's direct 
participation in the chemical-biological defense program has 
been limited, and a significant increase in DTRA's management 
and chemical-biological science and technology capabilities 
would be required to take on the management and execution of 
the chemical- biological defense science and technology 
program.
      One key attribute of the military departments' research 
and development laboratories and centers is their close contact 
with the services in the field that provides a constant 
awareness of the needs of deployed soldiers, sailors, airmen, 
and marines. The conferees are concerned about the ability of a 
separate science and technology program under DTRA to remain 
focused on acquisition program requirements and the need to 
meet the needs of the warfighter.
      The conferees believe that a close and habitual working 
relationship between the science and technology community and 
the acquisition community is necessary for the transition of 
maturing technologies into acquisition programs. The conferees 
note the difficulty in transitioning technologies developed 
under DARPA's biological warfare defense program into 
acquisition programs. The conferees believe it is important to 
maintain the close link between the acquisition and science and 
technology communities under the new program management.
      The conferees note further that the congressional defense 
committees played a major role in establishing a defense-wide, 
integrated, and coordinated chemical and biological defense 
program that would meet the needs of U.S. Armed Forces and have 
closely monitored and maintained an intense interest in this 
critical program. A principal feature of the program was the 
establishment in the Office of the Secretary of Defense of a 
strong focal point for chemical-biological defense to provide 
overall policy and budget guidance and oversight for the 
program.
      The conferees do not want to prejudge the decision made 
by the USD(AT&L) and note that appropriate staff agencies have 
begun work on the detailed plans and procedures required to 
implement the acquisition decision memorandum. The conferees 
request that the concerns noted above be take into account in 
the development of those implementation plans. The conferees 
direct that the Under Secretary review the implementation plans 
and procedures with the congressional defense committees before 
those plans become effective.

Wide bandgap semiconductor electronics

      The budget request contained $5.5 million in PE 61153N 
for basic research and $30.0 million in PE 62712E, $1.4 million 
in PE 62705A, $3.5 million in PE 62271N, $1.75 million in PE 
62204F for applied research in wide bandgap semiconductor 
electronics.
      The House would authorize an increase of $8.0 million in 
PE 62271N for wide bandgap semiconductor materials technology 
and an increase of $5.5 million in PE 63175C for silicon 
carbide-based wide bandgap semiconductor technology.
      The Senate amendment would authorize an increase of $2.5 
million in PE 62271N for wide bandgap semiconductor materials 
and devices for application in advanced power electronics, 
communications, and sensor systems, $2.5 million for silicon 
carbide materials and device research, and $1.5 million for 
advanced semiconductor materials research for high power 
amplifiers. The amendment would also authorize an increase of 
$10.0 million in PE 63175C for wide bandgap semiconductor 
technology.
      The conferees agree to authorize $5.5 million in PE 
61153N for basic research and $30.0 million in PE 62712E, $1.4 
million in PE 62705A, and $1.75 million in PE 62204F for 
applied research in wide bandgap semiconductor electronics as 
contained in the budget request. The conferees also agree to 
authorize increases in PE 62271N of $2.5 million for wide 
bandgap semiconductor materials and devices, $2.5 million for 
silicon carbide materials and devices, and $1.5 million for 
advanced semiconductor materials, and increases in PE 63175C of 
$2.5 million for silicon carbide-based wide bandgap 
semiconductor technology and $2.5 million for gallium nitride 
technology.
      Section 212 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107) required the Secretary of 
Defense to carry out a cooperative program to develop and 
demonstrate advanced technologies and concepts for future naval 
radar systems and other applications with particular emphasis 
on development of advanced electronic materials to extend the 
range and sensitivity of radars. The conferees have reviewed 
the report by the Director of Defense Research and Engineering 
(DDRE), dated May 28, 2002, that addresses the cooperative 
program. Collaborating agencies under the overall direction of 
the DDRE include the Defense Advanced Research Projects Agency 
(DARPA), the Navy, the Army, the Air Force, and the Missile 
Defense Agency.
      The conferees note that the program focuses on activities 
needed to accelerate the development, maturation, and 
transition of technologies for advanced electronic materials to 
extend the range and sensitivity of naval radars, including 
radio frequency/microwave and high power wide bandgap 
semiconductor materials and devices, and reduce the technical 
risk and expedite the insertion of the technology in military 
systems. While several insertion opportunities exist across the 
services, the next generation naval radar is the primary 
insertion target. To support that development, an objective of 
the overall wide bandgap program is to demonstrate the ability 
to produce wide bandgap high power amplifiers that can be 
expected to meet cost and performance criteria of the Navy's 
advanced ship-based radar plan for sea-based missile defense. 
The goal of the program for these devices is to achieve a 
sufficient level of technology maturity to support the radar's 
preliminary design review that is now anticipated to occur 
between fiscal year 2007 and 2008.
      The conferees note that the DDRE's report reflected an 
initial investment in the collaborative program of $54.9 
million in fiscal year 2002. The fiscal year 2003 budget 
request for the program totals $40.7 million, including $30.0 
million in DARPA, $3.7 million in the Navy, $1.8 million in the 
Air Force, $1.4 million in the Army, and $3.9 million for 
Defense Production Act Title III authority to facilitate the 
transition of technologies through the establishment of 
enhanced production capabilities.
      The conferees note that this level of funding is not 
consistent with previous analyses, which have recommended an 
increased science and technology investment in wide bandgap 
technology that would total approximately $50 million per year 
over a five-year period, beginning in fiscal year 2002, in 
order to develop the technologies necessary to field advanced 
radar systems in time to meet the Navy and the Department of 
Defense (DOD) requirements in 2015. The conference agreement 
increases the investment in the program to the recommended 
level.
      The conferees commend the participating DOD agencies for 
development of the collaborative program. The conferees place a 
high priority on the development of the technology for advanced 
wide bandgap semiconductor materials and devices for future 
naval radar and other applications and intend to monitor the 
program closely.

                     Legislative Provisions Adopted


              Subtitle A--Authorization of Appropriations


Authorization of appropriations (sec. 201)

      The Senate bill contained a provision (sec. 201) that 
would authorize the recommended fiscal year 2003 funding levels 
for all research, development, test, and evaluation accounts.
      The House amendment contained a similar provision.
      The conference agreement includes this provision.

Amount for defense science and technology (sec. 202)

      The budget request for fiscal year 2003 included an 
authorization of $9,677.2 million for science and technology 
programs in the Department of Defense. The Defense Emergency 
Response Fund request included an authorization of $332.0 
million for science and technology programs.
      The House bill would authorize $10,350.2 million.
      The Senate amendment would authorize $10,155.4 million.
      The conferees recommend an authorization of $10,384.7 
million for Department of Defense science and technology 
programs. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.

Defense health programs (sec. 203)

      The budget request for fiscal year 2003 included an 
authorization of $67.2 million for research, development, test, 
and evaluation activities for carrying out health care 
programs, projects, and activities of the Department of 
Defense.
      The House bill and Senate amendment would both authorize 
the amount of the budget request.
      The conferees recommend an authorization of $67.2 million 
for research, development, test and evaluation activities for 
carrying out health care programs, projects, and activities of 
the Department of Defense.

    Subtitle B--Program Requirements, Restrictions, and Limitations


RAH-66 Comanche aircraft program (sec. 211)

      The House bill contained a provision (sec. 211) that 
would place a cost cap of $6.0 billion as the total amount that 
could be spent on the engineering and manufacturing development 
(EMD) phase of the RAH-66 Comanche aircraft program. The 
provision would also require an annual Department of Defense 
Inspector General program review until the EMD phase is 
completed.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of the Army to provide the Committees on Armed 
Services of the Senate and House of Representatives with a 
quarterly report on the progress of the restructured RAH-66 
Comanche aircraft program during fiscal year 2003.
      The conferees repeat both their strong support for and 
concern about the RAH-66 Comanche aircraft program as 
highlighted in the statement of managers accompanying the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107). The conferees believe this aircraft will be a 
transformational weapon system capable of an array of missions 
to include manned reconnaissance, light attack, and network-
centric warfare. The conferees, however, have been disappointed 
with the Army's lackluster support in prior years for this 
program. The Army has consistently failed to provide the 
appropriate funds required to ensure that the program could 
meet its earlier established fiscal year 2006 initial 
operational capability (IOC), resulting in program slips and 
numerous program restructures.
      In the aforementioned statement of managers, the 
conferees questioned the reliability of any new cost estimates 
and EMD program milestones and expected an accurate estimate of 
funds required to complete EMD and the new time line and plan 
for bringing the Comanche to IOC to be submitted with the 
fiscal year 2003 budget request. (Section 211 of the House bill 
addressed this lack of response.)
      The Army has finally reacted to this concern and is once 
again restructuring the program, the sixth such restructuring 
since fiscal year 1988, with an approximate $4.0 billion 
infusion of funds to complete the EMD phase of the program. The 
information the Army has belatedly provided the conferees gives 
some cause for hope that the program is now more realistically 
structured and funded to field this critical capability for the 
Objective Force beginning in fiscal year 2009. The conferees 
believe the commissioning of a Comanche Independent Review 
Panel, which contributed to this restructuring, and the Army's 
due consideration of that panel's recommendations are positive 
steps. The conferees will closely monitor the upcoming Defense 
Acquisition Board's decision on the restructured program and 
subsequent actions related to this program as reflected in the 
quarterly reports required by this conference. The conferees 
reiterate their concern that the program remain on schedule 
during fiscal year 2003 and be adequately funded in the out 
years to meet the new fiscal year 2009 IOC.

Extension of requirements relating to management responsibility for 
        naval mine countermeasures programs (sec. 212)

      The House bill contained a provision (sec. 212) that 
would extend, through fiscal year 2008, the requirement for the 
Under Secretary of Defense (Acquisition, Technology, and 
Logistics) (USD(AT&L)) to have primary responsibility for 
developing and testing naval mine countermeasures (MCM) 
systems. The provision would permit waiving that requirement 
annually, subject to certification by the Secretary of Defense 
that: (1) the Secretary of the Navy (SECNAV) has submitted an 
updated mine countermeasures master plan; (2) the budget for 
that fiscal year proposes sufficient resources for executing 
that plan; and (3) the Chairman of the Joint Chiefs of Staff 
(CJCS) concurs with the plan and resources.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Joint Requirements Oversight Council (JROC) to carry out 
title 10 responsibilities regarding the Secretary of the Navy 
MCM plan. The amendment would also require the USD(AT&L) to 
submit a notification to the congressional defense committees 
if the Navy intends to change the plan and budget that have 
been certified and submitted to Congress.
      The USD(AT&L) letter to Congress, dated February 6, 2002, 
provided a review of the Navy's fiscal year 2002 MCM plan. That 
letter stated, ``the assessments continue to show that the 
programmed changes in equipment and force structure will 
significantly reduce the time required to counter a mine threat 
and hence, validate the Navy investment strategy.'' The SECNAV 
reported in a letter to Congress on March 25, 2002, that ``the 
Commander, Fleet Forces Command has conducted a fleet review of 
all Mine Countermeasures Plans and Programs (MCM) and 
Operational Requirements Documents (ORDs) and concurs with all 
programs and ORDs.'' In a letter to Congress, dated April 18, 
2002, the USD(AT&L) certified the Navy MCM program for fiscal 
year 2003.
      Despite the USD(AT&L) and CJCS reviews and subsequent 
certification of both the fiscal year 2002 and 2003 SECNAV MCM 
plans and budget requests, the Navy has recently taken actions 
without congressional consultation or notification to change 
those plans and associated programs significantly. These 
actions occurred after a hearing cycle which included reviews 
of both MCM plans and programs and the processes for changing 
those plans and programs.
      Recent events have included the following:
            (1) Senior Navy officials testified before Congress 
        that congressional consultation and concurrence would 
        be sought prior to removing appropriated and authorized 
        capabilities from Navy ships.
            (2) Shortly after the USD(AT&L) submitted the 
        fiscal year 2003 certification, a senior member of the 
        staff of the Chief of Naval Operations, apparently 
        without consultation with the Director of Expeditionary 
        Warfare and without consulting or notifying Congress, 
        issued an order for the DDG-51 program manager to 
        delete certain organic mine countermeasures capability 
        from ships that were nearing delivery and that were 
        under construction. This action had the effect of 
        making a fundamental change to the programs upon which 
        the USD(AT&L) made his certification.
            (3) In August, two senior military officers, 
        without consultation or notification to Congress, 
        issued an order to remove a key MCM system that was 
        included in the approved, certified, appropriated and 
        authorized MCM plan.
      The conferees believe that these circumstances are 
sufficient evidence for their concern regarding the oversight 
of MCM programs and for requiring that the Department provide 
closer supervision of the execution of the certified plans and 
budgets.

Revised requirements for plan for Manufacturing Technology Program 
        (sec. 213)

      The House bill contained a provision (sec. 214) that 
would revise the requirements for the annual plan for the 
Manufacturing Technology Program (ManTech).
      The Senate amendment contained no similar provision.
      The Senate recedes.

Advanced SEAL Delivery System (sec. 214)

      The Senate bill contained a provision (sec. 212) that 
would authorize the Secretary of Defense to use any funds that 
were authorized and appropriated for fiscal year 2002 for 
Advanced SEAL Delivery System (ASDS) advance procurement, but 
are no longer needed for that purpose, for fiscal year 2003 
ASDS research, development, test and evaluation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to transfer $13.7 million, which was 
authorized and appropriated for fiscal year 2002 for ASDS 
advance procurement, to fiscal year 2003 ASDS research, 
development, test and evaluation.

Army experimentation program regarding design of the objective force 
        (sec. 215)

      The Senate amendment contained a provision (sec. 213) 
that would require the Secretary of the Army to submit a report 
to Congress on the details of an Objective Force 
experimentation program no later than March 30, 2003, and to 
fund that experimentation program as a separate program element 
in the fiscal year 2004 budget request submission to Congress.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
date for the report submission to March 31, 2003.

Program to provide Army with self-propelled Future Combat Systems non-
        line-of-sight cannon indirect fire capability for the objective 
        force (sec. 216)

      The budget request contained $475.6 million, composed of 
$246.5 million in PE 63854A and $229.1 million in PE 64854A for 
continued development of the Crusader self-propelled artillery 
system.
      The Senate amendment contained a provision (sec. 214) 
that would move the $475.6 million requested in the fiscal year 
2003 budget for the Crusader artillery system to a different 
budget line--the Army's Future Combat Systems (FCS)--to be used 
only to meet the Army's organic indirect fire needs. Upon 
submission of the report to Congress required by the provision, 
the Secretary of Defense would be allowed to seek to reprogram 
the funds for Crusader termination costs, for continued 
research and development of the Crusader artillery system, or 
for other Army programs identified as the best available 
alternatives to the Crusader for providing improved indirect 
fire for the Army. The provision would require the Chief of 
Staff of the Army to complete a review of the full range of 
Army programs that could provide improved indirect fire for the 
Army over the next 20 years and submit his recommendations. The 
provision would further require an annual report to be 
submitted to the congressional defense committees on the 
investments proposed to be made on indirect fire programs for 
the Army.
      The report required by the provision was submitted to 
Congress by the Chief of Staff of the Army, through the Office 
of the Under Secretary of Defense for Acquisition, Logistics 
and Technology on July 26, 2002.
      The House bill contained no similar provision, but the 
report accompanying the bill directed the Secretary of Defense 
to continue Crusader development until completion of the Army's 
Analysis of Alternatives in support of the Milestone B decision 
for Crusader scheduled for the third quarter of fiscal year 
2003.
      The House recedes with an amendment that would direct the 
Secretary of Defense to carry out a program to provide the 
Army, no later than fiscal year 2008, with a self-propelled 
Future Combat Systems (FCS) Non-Line-of-Sight (NLOS) Cannon to 
equip the Objective Force.
      The conferees have carefully considered the Secretary of 
Defense's decision to terminate the Crusader Artillery System 
and the budget amendment request the Administration submitted 
to the congressional defense committees to transfer the $475.6 
million requested for Crusader in the fiscal year 2003 budget 
request to other programs. The Army Chief of Staff has reported 
that he ``fully supports OSD proposals to accelerate Army 
precision fire initiatives and further develop other programs 
to enhance fire support to ground forces. However, the 
acceleration of existing programs alone will not fully meet the 
operational requirement for organic, indirect fires by 2008.'' 
He recommends funding the fielding of a Future Combat Systems 
Non-Line-of-Sight Cannon and establishing a networked fires 
capability by 2008, stating that ``we cannot fully employ 
Objective Force operational concepts without this capability.''
      The conferees believe that, in order to deliver such a 
system by 2008, maximum advantage should be taken of technology 
developed through other programs, such as the composite armored 
vehicle, Crusader, and the joint United States-United Kingdom 
Future Scout and Cavalry System.
      To reduce risk in this effort, the conferees have 
authorized increases totaling $293.0 million to the $475.6 
million requested for Crusader in the fiscal year 2003 budget 
request as reflected in the following program elements:

                        [In millions of dollars]

PE 62303A Missile Technology: Micro Electro-mechanical Systems 
    (MEMS)........................................................  15.0
PE 63005A Combat Vehicle and Automotive Advanced Technology: 
    Future Scout and Cavalry Vehicle Demo.........................  10.0
PE 63645A Future Combat Sys Dem/Val: F 48 NetFires................ 114.5
  PE 63778A MLRS Product Imp. Program:
    HIMARS........................................................  10.0
    Guided MLRS...................................................  45.0
PE 63802A Weapons and Munitions--ADV DEV: Precision Guided Mortar 
    Munitions (PGMM)..............................................  10.8
PE 64645A Armored System Modernization: Future Combat System...... 105.0
PE 63854A Artillery Systems Dem/Val: F 47 FCS NLOS Cannon......... 368.5
PE 64814A Artillery Munitions--EMD: Excalibur.....................  48.3
PE 64854A Artillery Sys--EMD: Paladin.............................   7.5
PE 23726A Army Field Artillery Data Sys...........................   4.0
PE 23735A Combat Vehicle Improvement Program: Abrams Engine.......  28.6
PE 35204A Tactical Unmanned Aerial Vehicle........................  11.4
Prohibition on transfer of Medical Free Electron Laser program (sec. 
        217)
      The Senate amendment contained a provision (sec. 217 ) 
that would prohibit the transfer of the Department of Defense 
Medical Free Electron Laser (MFEL) Program to any other 
department or agency of the Federal Government.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees note that the MFEL program continues to 
fund high quality, peer-reviewed research that is oriented 
towards military medical applications. The conferees believe 
that the program transfer was inappropriate and, therefore, 
support the retention and funding of the MFEL program within 
the Department of Defense.
Littoral combat ship program (sec. 218)
      The budget request for fiscal year 2003 included no 
funding for research and development for a littoral combat ship 
(LCS). The Senate amendment contained a provision (sec. 219J) 
that would authorize 4.0 million in PE 63563N to develop 
requirements for a littoral ship.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$4.0 million in PE 63563N to develop requirements for a 
littoral combat ship and would require certain reporting 
requirements from the Secretary of the Navy.
      Subsequent to hearings and markup by the Committees on 
Armed Services of the Senate and the House of Representatives 
of the fiscal year 2003 authorization request, Navy officials 
requested additional funding authorization for research and 
development of an LCS.
      An LCS program may be necessary to provide capabilities 
to carry out the National Military Strategy. However, neither 
the Office of the Secretary of Defense, the Joint Chiefs of 
Staff, nor the Navy has provided any indication that they have 
completed sufficient work on any number of prerequisites that 
the Department of Defense (DOD) is required to meet before 
concluding that new development is required to provide the 
capabilities inherent in an LCS. These include requirements in 
title 10, United States Code, and internal DOD directives, such 
as DOD 5000.2-R Mandatory Procedures for Major Defense 
Acquisition Programs and Chairman, Joint Chiefs of Staff (CJCS) 
Instruction 3170.01B.
      The LCS has not been vetted through the Joint 
Requirements Oversight Council (JROC) process, particularly 
regarding possible alternatives and the relative priority to 
meet valid requirements. This should be completed prior to 
initiation of any program which is intended to support joint 
combat operations.
      The conferees believe that the Navy needs to assess the 
adequacy of existing and planned platforms to test the littoral 
combat ship concept and how these platforms will be used in the 
development, test, and evaluation of the LCS and its mission 
modules. The conferees strongly believe that the Navy must 
capitalize on ongoing and planned experiments, demonstrations, 
and evaluations of existing, prototype, and experimental hull 
forms and platforms to better inform the Navy's decisions on 
the LCS. Some of these have been completed, but others are 
planned and await modification or construction of the hull form 
and platform demonstrators.
      The conferees are also concerned that the Navy's strategy 
for the LCS does not clearly identify the plan and funding for 
development and evaluation of the mission modules upon which 
the operational capability of the LCS will depend. The 
conferees believe that the strategy for LCS development must 
provide for the identification, transition, and integration of 
the component technologies and subsystems to be included in the 
several mission modules and for the evaluation of each mission 
module as a system before its deployment on the LCS.
      The conferees expect the JROC and the Navy to 
specifically deal with a number of concerns in fulfilling the 
requirements in the LCS provision. These include:
            (1) Assessing the extent to which unmanned systems 
        could be capable of completing the missions instead of 
        a manned LCS vessel. Briefings on the LCS indicate that 
        an LCS would be used for operations determined to be 
        ``too risky'' for larger surface combatants. This 
        raises questions about the level of risk the Navy has 
        determined to be acceptable for an LCS that is 
        unacceptable for larger surface combatants.
      (2) Identifying the threat or threats that have negated 
the Navy's previous investments in multi-mission ships and made 
the missions of anti-submarine warfare, anti-surface warfare, 
and anti-mine warfare ``too risky'' for these ships. The Navy 
has invested heavily in providing combatants of all types and 
displacements with onboard and offboard sensors, weapons, and 
information connectivity. This investment was directed to 
ensure that multi-mission ships could operate at any time and 
in any place.
      (3) Determining the level of support from other 
combatants and auxiliaries that LCS vessels will require, and 
whether this will lead to altered planning assumptions for 
sizing the force. An open question regarding a ``focused 
mission'' vessel such as an LCS is whether the vessel will be 
able to operate with impunity in the presence of threats 
outside its focused mission warfare area. If not, the Navy may 
have to adjust operating and support concepts in more 
significant ways than merely adding LCS vessels to the current 
battle group.
      (4) Identifying the appropriate level of helicopter 
support in the baseline LCS vessel. The naval helicopter has 
been a proven key capability for combatant surface ships when 
conducting the three primary warfare areas stated for LCS. Navy 
briefings indicate that the LCS will require a helicopter 
capability to carry out its missions and will operate forward 
of the battle group. Nevertheless, the Navy appears to have 
forgotten the lessons learned from the first flight of Arleigh 
Burke-class destroyers and has not included a naval helicopter 
hangar as a key requirement for the LCS.
      (5) Assessing the implications of using and supporting 
non-marinized systems as component capabilities on LCS vessels. 
For example, the Navy has indicated the desire for using OH-58D 
helicopters on LCS. Although these Army helicopters have flown 
from Navy ships for short periods, they have limited 
capabilities for LCS mission areas. Naval helicopters, however, 
have the durability and system integration required to provide 
joint and battle group synergism for LCS missions.
      (6) Identifying whether there are changes in tactics and 
procedures which the Navy could apply to current platforms and 
concepts of operations that would accomplish the envisioned LCS 
missions without putting additional pressure on an already 
underfunded ship acquisition plan.
      (7) Assessing the assignment of LCS-unique missions to 
the U.S. Coast Guard, close allies, or coalition partners. If 
we are to continue assuming joint and coalition warfare, 
perhaps the U.S. Navy could count on the Coast Guard or smaller 
navies of allies to contribute more effectively by performing 
``small ship'' mission.

                 Subtitle C--Ballistic Missile Defense

Report requirements relating to ballistic missile defense programs 
        (sec. 221)
      The Senate amendment contained provisions (secs. 222 and 
223) that would require the Secretary of Defense to submit to 
the congressional defense committees reports containing 
programmatic information on the Ground-based Midcourse and Air-
based Boost programs. The Senate amendment also contained a 
provision (sec. 221) that would require the Department to 
submit to the congressional defense committees reports 
containing operational assessments of these programs by the 
Director of Operational Test and Evaluation (DOT&E) and an 
annual review of the cost, schedule, and performance criteria 
of all ballistic missile defense (BMD) programs by the Joint 
Requirements Oversight Council (JROC).
      The House bill contained no similar provision.
      The conferees agree that the Department must provide 
adequate programmatic information on BMD programs to the 
congressional defense committees and notes that the annual 
budget justification materials, together with the report on the 
cost, schedule, testing, and performance goals of BMD programs 
required by section 232 of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107-107), are appropriate 
vehicles for transmitting such information.
      Therefore, the Senate recedes on sections 221, 222 and 
223 with an amendment that would require the Secretary of 
Defense to annually submit to Congress, with the budget 
justification materials, the performance goals and development 
baselines for each block of each BMD system that could be 
fielded and for BMD systems that have been designated by 
Congress as special interest items. The amendment would require 
submission of funding profiles (i.e., year-by-year funding 
estimates) for each block of each BMD system that could be 
fielded.
      Finally, the amendment would require the JROC to perform 
a one-time review of the cost, schedule, and performance 
criteria for BMD programs in order to assess the validity of 
those criteria in relation to military requirements and to 
include the results of the review with the annual statement of 
BMD cost, schedule, and performance goals required by the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107).
      The conferees believe that a cooperative relationship 
between the Director of Operational Test and Evaluation and the 
Missile Defense Agency is and will remain important to 
successful execution of ballistic missile defense programs. The 
conferees are concerned that DOT&E reporting on BMD programs, 
included in the DOT&E annual report dated February 2002, may 
not have been based on information generated with a sufficient 
level of interaction between MDA and DOT&E. The conferees are 
encouraged by recent statements by DOT&E that DOT&E involvement 
in BMD programs is now acceptable and expect that the Missile 
Defense Agency will continue to work cooperatively with DOT&E.
Responsibility of Missile Defense Agency for research, development, 
        test, and evaluation related to system improvements of programs 
        transferred to military departments (sec. 222)
      The House bill contained a provision (sec. 232) that 
would amend title 10, United States Code, to require the 
Director of the Missile Defense Agency to retain responsibility 
for research, development, test and evaluation related to 
improvements of missile defense systems and system components 
that have been transferred to the military departments for 
procurement and fielding.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Limitation on obligation of funds for Theater High Altitude Area 
        Defense Program pending submission of required life-cycle cost 
        information (sec. 223)
      The Senate amendment contained a provision (sec. 224) 
that would require the Secretary of Defense to submit to 
Congress by January 15, 2003, certain types of programmatic 
information for the Theater High Altitude Area Defense (THAAD) 
program, including the development schedule and planned 
procurement schedule. The provision would also require 
submission of a life cycle cost estimate specifically required 
by section 232 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107) for programs such as 
THAAD in their Engineering and Manufacturing Development phase. 
The provision would specify that no more than 50 percent of the 
amount authorized to be appropriated in fiscal year 2003 for 
THAAD may be expended until the congressional defense 
committees have received the information required by the 
provision.
      The House bill contained no similar provision.
      The House recedes with an amendment that would specify 
that no more than 85 percent of the amount authorized to be 
appropriated in fiscal year 2003 for THAAD may be obligated 
until Congress has received the life cycle cost estimate 
required by last year's National Defense Authorization Act. 
Other reporting requirements related to THAAD are included in 
Section 221.
      The conferees note that a development schedule and 
planned procurement schedule need to be developed in order to 
provide such a life cycle cost estimate. The conferees also 
recognize that the Missile Defense Agency (MDA) plans to evolve 
missile defense system capabilities through spiral development 
and will acquire the ballistic missile defense systems in an 
evolutionary acquisition process. The conferees expect that MDA 
will provide the congressional defense committees the basis for 
understanding the THAAD life cycle cost estimate.
      The conferees also note that under the Defense 
Department's plan for obligation of THAAD funding, the 
Department should have until February 2003 to submit the 
required life cycle cost estimate prior to any adverse funding 
impacts to the THAAD program. Therefore, the conferees expect 
the life cycle cost estimate to be provided on or before the 
date of submission of the fiscal year 2004 budget justification 
materials in February 2003.
Provision of information on flight testing of Ground-based Midcourse 
        National Missile Defense system (sec. 224)
      The Senate amendment contained a provision (sec. 227) 
that would require the Director of the Missile Defense Agency 
(MDA) to submit to the congressional defense committees a 
thorough report on each flight test of the Ground-based 
Midcourse national missile defense system no later than 120 
days after the test.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Director of the MDA to communicate to Congress the results 
of each flight test, including a thorough discussion of the 
content and objectives of the test, a statement regarding 
whether each objective was achieved, and a discussion of the 
reasons, if any, for not achieving the objectives.
      The conferees note that the amendment, which does not 
require a report by a fixed date months after the flight test, 
would provide the Director of the MDA the flexibility to 
provide Congress with more complete information in a more 
timely fashion.
References to new name for Ballistic Missile Defense Organization (sec. 
        225)
      The House bill contained a provision (sec. 233) that 
would make appropriate conforming changes to reflect the change 
of the Ballistic Missile Defense Organization's name to the 
Missile Defense Agency.
      The Senate amendment contained a similar provision (sec. 
225).
      The House recedes with a clarifying amendment.
One-year limitation on use of funds for nuclear armed interceptors 
        (sec. 226)
      The Senate amendment contained a provision (sec. 226) 
that would prevent any funds from being obligated for research, 
development, test, evaluation, procurement or deployment of 
nuclear armed interceptors for a missile defense system.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
obligation of any fiscal year 2003 funds.

   Subtitle D--Improved Management of Department of Defense Test and 
                         Evaluation Facilities

      Department of Defense Test Resource Management Center 
(sec. 231)
      The Senate amendment contained a provision (sec. 231) 
that would establish a Department of Defense (DOD) Test and 
Evaluation Resource Enterprise, which would report to the 
Director of Operational Test and Evaluation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would establish 
a DOD Test Resource Management Center. The Test Resource 
Management Center would be a DOD Field Activity headed by a 
Director, who would be a three-star officer, and a Deputy 
Director, who would be a senior civilian with substantial 
experience in the field of test and evaluation. The Director 
would be subject to supervision by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics. The 
Director would report directly to the Under Secretary without 
intervening authority.
      Under the conference amendment, the Test Resource 
Management Center would be responsible for developing a 
strategic plan for DOD test and evaluation resources; reviewing 
and certifying the adequacy of proposed DOD budgets for test 
and evaluation activities; and administering the Central Test 
and Evaluation Investment Program (CTEIP) and the DOD program 
for test and evaluation science and technology.
      The CTEIP and science and technology programs would not 
be transferred to the Center until the beginning of the first 
fiscal year after the Department submits a strategic plan for 
test and evaluation resources to the congressional defense 
committees. The conferees expect that CTEIP funds will continue 
to be used to fund the development of critically needed, high 
priority test and evaluation capabilities for joint and multi-
service requirements. The CTEIP program is not intended to be a 
substitute for adequate funding of service-specific test and 
evaluation capabilities by the military services.
Objective for institutional funding of test and evaluation facilities 
        (sec. 232)
      The Senate amendment contained a provision (sec. 232) 
that would transfer testing funds from the research and 
development programs of the military departments and defense 
agencies to the major test and evaluation investment accounts 
of the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to establish the objective of ensuring 
that, by fiscal year 2006: (1) the institutional and overhead 
costs of the Major Range and Test Facility Base (MRTFB) are 
fully funded through the Department's major test and evaluation 
investment accounts and other direct appropriations; and (2) no 
more than the direct costs for the use of the MRTFB facilities 
and resources are charged to users of the MRTFB.
      The conferees expect the Secretary of Defense to submit a 
budget for fiscal year 2004 that will begin to fund the 
military departments and defense agency MRTFB institutional 
programs at a level such as to achieve the above objective by 
fiscal year 2006.
Uniform financial management system for Department of Defense test and 
        evaluation facilities (sec. 233)
      The Senate amendment contained a provision (sec. 234) 
that would require the Secretary of Defense to implement a 
single financial management and accounting system for all test 
and evaluation facilities of the Department of Defense (DOD) 
within two years after the date of enactment of this Act.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to implement a single financial management and 
accounting system for test and evaluation facilities as soon as 
possible, with the objective that such system be implemented no 
later than September 30, 2006.
Test and evaluation workforce improvements (sec. 234)
      The Senate amendment contained a provision (sec. 235) 
that would require the Under Secretary of Defense for 
Acquisition, Technology and Logistics to develop a plan to 
ensure that the test and evaluation workforce of the Department 
of Defense (DOD) is of sufficient size and has the expertise 
needed to ensure that the testing of DOD systems identifies 
issues of military suitability and effectiveness in a timely 
and accurate manner.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Compliance with testing requirements (sec. 235)
      The Senate amendment contained a provision (sec. 236) 
that would require the Director of Operational Test and 
Evaluation to include an assessment of waivers of and 
deviations from testing requirements in his annual report to 
Congress.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle E--Other Matters

Pilot programs for revitalizing Department of Defense laboratories 
        (sec. 241)
      The House bill contained a provision (sec. 213) that 
would reauthorize pilot programs intended to revitalize 
Department of Defense laboratories.
      The Senate amendment contained a similar provision (sec. 
241) that would reauthorize and expand the same pilot programs.
      The House recedes with an amendment that would eliminate 
the establishment of new excepted service positions under the 
pilot program.
      The conferees are concerned that the Department of 
Defense has made very limited use of authorities granted under 
this and other pilot and demonstration programs that could help 
address personnel and other issues at laboratories and test 
centers. Congress has provided the Department with considerable 
legislative authority for personnel reform, which remains 
unused. It is the intent of Congress that the authority granted 
to the Secretary under section 342 of the National Defense 
Authorization Act for Fiscal Year of 1995 (Public Law 103-337) 
and section 1114 of the National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398) be broadly and 
expansively interpreted by the Secretary and that the Secretary 
exercises his discretion to the fullest extent of the law to 
address the unique personnel issues associated with government 
scientists and engineers. These pilot programs and other 
demonstration projects should be used to experiment with novel 
personnel systems, procedures, and new business practices to 
derive lessons learned and help shape a coordinated strategy to 
address personnel and laboratory reform issues in the future.
Technology Transition Initiative (sec. 242)
      The House bill contained a provision (sec. 215) that 
would establish a program to accelerate the transition of 
technologies into fielded defense systems.
      The Senate amendment contained a provision (sec. 242) 
that would establish a similar program.
      The House recedes with an amendment that would modify the 
Technology Transition Initiative and its procedures.
      The Technology Transition Initiative establishes a joint 
funding mechanism for transition projects between the Office of 
the Secretary of Defense and a military service or defense 
agency. The Initiative also establishes a Department-wide 
Technology Transition Council consisting of representatives of 
the science and technology, acquisition, and operational 
communities that would advise the Initiative Manager on the 
Initiative as well as other technology transition issues.
      The conferees direct the Initiative Manager to work with 
the science and technology community and the acquisition 
community to develop memoranda of agreement, joint funding 
agreements, and other cooperative arrangements and to utilize 
innovative contracting arrangements and acquisition procedures 
to provide for carrying out projects under the Initiative in an 
efficient manner.
      The conferees note that it is the intent of this 
provision to provide flexibility to the Department regarding 
the use and activities of the Technology Transition Council. 
Under this provision, the formal council would meet 
periodically to discuss technology transition issues, 
especially those relating to the Initiative and its projects. 
The organizations represented on the Council, however, are free 
to designate representatives to support the detailed technical 
reviews and funding decision-making processes that will be part 
of the Initiative.
      The conferees note that the Technology Transition 
Initiative does not replace, but complements, the 
responsibility of the senior acquisition executives of the 
Department of Defense, the military departments, and the heads 
of the Defense agencies with research and development 
responsibilities under section 5358, title 10, United States 
Code, to ensure that the science and technology programs under 
their authority are carried out in such manner that will foster 
the transition of science and technology to higher levels of 
research, development, test, and evaluation.
      The conferees direct the Comptroller General to review 
and evaluate the Technology Transition Initiative, the Defense 
Acquisition Challenge Program, and the Small Business Outreach 
program for combating terrorism. These reviews should occur two 
years after the enactment of the provisions, so as to provide 
the Department sufficient time to organize and establish the 
programs. The reviews should assess the implementation of the 
programs relative to congressional intent. The reviews should 
also recommend any necessary changes to improve the programs, 
including incentives for participation by services and 
agencies, organizational structure, and changes to the 
acquisition workforce. For example, the review should assess 
the cost savings generated by the programs and the use of those 
savings by participating organizations to support other 
missions.
Defense Acquisition Challenge Program (sec. 243)
      The House bill contained a provision (sec. 216) that 
would require the Secretary of Defense to establish the Defense 
Acquisition Challenge Program, a pilot program to promote the 
insertion of unique and innovative technologies (``challenge 
proposals'') into existing Department of Defense (DOD) 
acquisition programs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
that the Secretary act through the Under Secretary of Defense 
for Acquisition, Technology, and Logistics (USD(AT&L)), in 
carrying out the program. The amendment would provide that the 
Under Secretary prescribe procedures for the submission of 
challenge proposals through the unsolicited proposal process or 
in response to a broad agency announcement issued to solicit 
challenge proposals. The amendment would also provide that the 
Under Secretary establish panels to carry out preliminary 
evaluations of challenge proposals and prescribe criteria to be 
considered in those evaluations and would establish additional 
criteria to be considered by the program office and the prime 
system contractor in consideration of those challenge proposals 
referred for a full review and evaluation.
      The conferees believe that the panels will be an 
important tool in the preliminary screening and identification 
of meritorious challenge proposals and that the amended 
provision would provide the USD(AT&L) the flexibility needed to 
prescribe proper panel make-up. The composition of the panels 
may change ranging from a technical level review by 
knowledgeable scientists and technologists to a very senior 
level blue ribbon panel, depending on the issue or technology 
being reviewed. The conferees expect that review panels would 
take a ``best value'' approach in evaluation of challenge 
proposals.
      The conferees believe that the use of the broad agency 
announcement and the unsolicited proposal process under 
procedures prescribed by the USD(AT&L) will provide the 
Department the ability to manage the submission of challenge 
proposals and to identify specific technology areas of interest 
and areas that could be transitioned rapidly into fielded 
programs under a broad agency announcement, while at the same 
time allowing prospective contractors the opportunity to 
propose innovations for a program at any time under the 
unsolicited proposal process. The conferees believe that the 
authority for appropriate DOD officials to identify and refer 
unsolicited challenge proposals to a panel would permit their 
expeditious review under appropriate circumstances. Upon 
completion of a preliminary review by a panel, those challenge 
proposals with merit would be requested to submit a more 
detailed proposal to be reviewed by the Government program 
office and the prime system contractor for the impacted 
program. The conferees note that the detailed analyses should 
include a cost estimate and examination of relevant industrial 
base issues.
      The conferees believe that the challenge program could 
provide an excellent avenue for accelerating the introduction 
of new and innovative technology into defense acquisition 
programs and that program offices and prime contractors should 
be encouraged to incorporate such approaches as new technology 
insertions by appropriate incentives, such as share-in savings 
approaches.
      The conferees also believe that the Under Secretary 
should establish procedures for adoption of those extraordinary 
challenge proposals that, based on their evaluation, promise 
such far-reaching improvements in performance, affordability, 
manufacturability, or operational capability that a termination 
of a contract for the convenience of the Government and an 
award of a contract for insertion of the technology would be 
justified.
Encouragement of small businesses and nontraditional defense 
        contractors to submit proposals potentially beneficial for 
        combating terrorism (sec. 244)
      The Senate amendment contained a provision (sec. 243) 
that would establish a program to assist the Department of 
Defense in utilizing small businesses and nontraditional 
defense contractors in developing technologies to combat 
terrorism.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees direct the Department to use all available 
electronic commerce technology to carry out its activities, 
including proposal submission, review, response to proposers, 
and recommendations within the Department. This is consistent 
with the Department's efforts to streamline its procedures and 
make more use of electronic transactions in conducting 
Department business. The use of these technologies should also 
address a systemic problem within the Department by making 
technical proposals and evaluator responses easier to track and 
document by both contractors and Department of Defense 
personnel alike.
      The conferees direct the Department to use the size 
standards appropriate for the Small Business Innovative 
Research program when determining eligibility for participation 
in the Small Business Outreach Program.
      The conferees are concerned with the communication 
between the various federal agencies responsible for developing 
technologies to combat terrorism. Therefore, the conferees 
recommend that the activities of the panel be coordinated with 
the activities of appropriate federal agencies and the Office 
of Science and Technology Policy, including the forwarding of 
proposals not specific to the needs of the Department of 
Defense to other appropriate federal agencies.

Vehicle fuel cell program (sec. 245)

      The Senate amendment contained a provision (sec. 244) 
that would require the Secretary of Defense to carry out a 
cost-shared program to develop fuel cell technology for use in 
Department of Defense vehicles.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
require the Secretary to carry out the program in coordination 
with the Department of Energy and other appropriate federal 
agencies.

Defense nanotechnology research and development program (sec. 246)

      The Senate amendment contained a provision (sec. 245) 
that would establish a Department of Defense nanotechnology 
research and development program.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
encourage the Department of Defense to coordinate its 
nanotechnology research activities with the National 
Nanotechnology Initiative.
      The conferees note that there are many ongoing activities 
in the Defense Advanced Research Projects Agency and the 
military services that are attempting to exploit the promise of 
nanotechnology to develop new military capabilities, for 
example in biosensing, smart materials, computing, and 
nanoelectronics. The conferees urge the Department to leverage 
these activities in developing the coordinated research 
program. In particular, the conferees direct the Department to 
capitalize on the special technical area review on 
nanoelectronics by the Department's Advisory Group on 
Electronic Devices as it works to develop a research portfolio, 
investment plan, and transition strategy in this important 
technical area.

Activities of the Defense Experimental Program to Stimulate Competitive 
        Research (sec. 247)

      The Senate amendment contained a provision (sec. 246 ) 
that would modify the Defense Experimental Program to Stimulate 
Competitive Research (DEPSCoR) and to require a National 
Research Council assessment of the program.
      The House bill contained no similar provision.
      The House recedes with an amendment.
      The conferees direct the Secretary of Defense to continue 
to support the DEPSCoR effort to develop new defense research 
capabilities across the Nation. The conferees encourage the 
Secretary to continue to support activities that will develop 
world-class researchers in DEPSCoR states and to work closely 
with the individual states' planning committees to ensure that 
the program supports the development of defense research 
infrastructure.

Four-year extension of authority of DARPA to award prizes for advanced 
        technology achievements and additional authority of military 
        departments and Defense Agencies to award prizes for 
        achievements in promoting education (sec. 248)

      The Senate amendment contained a provision (sec. 247) 
that would reauthorize the Defense Advanced Research Projects 
Agency (DARPA) to award competitive prizes for advanced 
technology achievements.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
reporting requirements related to the authority.
      The conferees note that competitive prizes have been used 
successfully in the past to support the development of advanced 
technologies and have been endorsed by the National Academy of 
Engineering. The conferees support DARPA's interest in 
utilizing this authority in the future.
      The conferees direct the Director of DARPA to address the 
whole area of competitive prizes seriously and to develop an 
overall program rather than a limited ``one-shot'' approach to 
the use of the authority. This includes fulfilling the 
reporting requirements included in the provision; conducting a 
market survey of those corporations and other entities who 
might want to participate in such an initiative; coordinating 
with the military services on the most relevant and promising 
technical areas in which to run competitions; and establishing 
a competitive prize program that supports the National Academy 
of Engineering's finding that prize contests have the ability 
``to attract a broader spectrum of ideas and participants'' to 
the pursuit of scientific and technological objectives ``by 
reducing the costs and other bureaucratic barriers to 
participation by individuals or firms.''
      The conferees urge the services to make use of similar 
prize authority granted to the service secretaries by the 
provision. The conferees believe that service-sponsored 
programs to promote science, math, and engineering can provide 
a positive contribution to communities and would help increase 
national emphasis on the role of science, math, and technology 
education in meeting long-term national defense needs.
      The conferees note that the Army's eCybermission program 
to establish a nationwide math, science, and technology 
competition for elementary and secondary schools is an 
excellent example of this type of effort. The conferees urge 
the Secretary of the Army to make use of these authorities to 
continue the eCybermission program.

Plan for five-year program for enhancement of measurement and 
        signatures intelligence capabilities of the United States 
        through incorporation of results of basic research on sensors 
        (sec. 249)

      The Senate amendment contained a provision (sec. 1038) 
that would require the Director of the Central Measurement and 
Signatures Intelligence Office to submit a plan for a five-year 
program for incorporating the results of basic research on 
sensors into the measurement and signatures intelligence 
systems fielded by the Federal Government.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit the plan.

                   Legislative Provisions Not Adopted


Aerospace Relay Mirror System demonstration

      The Senate amendment contained a provision (sec. 219I) 
that would authorize funding for an Aerospace Relay Mirror 
System demonstration.
      The House bill contained no similar provision.
      The Senate recedes. By convention, outcomes of funding 
differences between the House bill and the Senate amendment are 
included in the tables elsewhere in this report.

Agroterrorist attacks

      The Senate amendment contained a provision (sec. 219E) 
that would authorize $1.0 million for research and analysis of 
efforts to counter potential agroterrorist attacks.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Analysis of emerging threats

      The Senate amendment contained a provision (sec. 216) 
that would authorize funding for analysis of emerging threats.
      The House bill contained no similar provision.
      The Senate recedes.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Army radar power technology

      The Senate amendment contained a provision (sec. 219A) 
that would authorize funding for a radar power technology for 
the Army.
      The House bill contained no similar provision.
      The Senate recedes. By convention, outcomes of funding 
differences between the House bill and the Senate amendment are 
included in the tables elsewhere in this report.

Aviation-shipboard information technology initiative

      The Senate amendment contained a provision (sec. 219H) 
that would authorize, of the funds authorized to be 
appropriated within Research, Development, Test and Evaluation, 
Navy, up to $8.2 million for the aviation-shipboard information 
technology initiative.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Basic seismic research program for support of national requirements for 
        monitoring nuclear explosions

      The Senate amendment contained a provision (sec. 211) 
that would require the Secretary of the Air Force to manage the 
Department of Defense program for basic seismic research in 
support of national requirements for monitoring nuclear 
explosions. The provision would also authorize $20.0 million 
for this seismic research program.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the Department of Defense is 
planning to transfer management of the research program to 
support national requirements for monitoring nuclear explosions 
from the Defense Threat Reduction Agency to the Air Force and 
the Army. The conferees are concerned that, while the 
requirements for monitoring nuclear explosions have become 
significantly more challenging since the mid-1990s, management 
of and resources for the research program to support these 
national requirements have been neither stable nor sufficient 
since that time. Congress has repeatedly appropriated 
additional funds above the budget request levels for this 
research program.
      Therefore, the conferees direct the Secretary of Defense 
to submit a report to the congressional defense committees by 
February 1, 2003, describing how the management of and 
resources for this research program will support the national 
requirements for monitoring nuclear explosions and ensure that 
the United States is able to meet these requirements.

Critical infrastructure protection

      The Senate amendment contained a provision (sec. 219B) 
that would authorize funding for critical infrastructure 
protection.
      The House bill contained no similar provision.
      The Senate recedes.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

DDG optimized manning initiative

      The Senate amendment contained a provision (sec. 219D) 
that would authorize an additional $2.5 million in PE 64307N 
for the DDG optimized manning initiative.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Demonstration of renewable energy use

      The Senate amendment contained a provision (sec. 218) 
that would authorize an additional $2.5 million in PE 64710N to 
continue a demonstration program of renewable energy use, 
rather than in PE 63508N.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Full-scale high-speed permanent magnet generator

      The Senate amendment contained a provision (sec. 219G) 
that would authorize an additional $1.0 million in PE 63123N to 
develop and demonstrate a full-scale, high-speed, permanent 
magnet generator.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Increased investment in test and evaluation facilities

      The Senate amendment contained a provision (sec. 233) 
that would increase the amount authorized to be appropriated 
for investment in Department of Defense test and evaluation 
facilities.
      The House bill contained no similar provision.
      The Senate recedes.
      The amounts authorized for investment in test and 
evaluation facilities are reflected in the appropriate 
accounts.

Laser welding and cutting demonstration

      The Senate amendment contained a provision (sec. 215) 
that would authorize an additional $6.0 million in PE 62123N 
for laser welding and cutting demonstration, rather than in PE 
63508N.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Limitation on obligation of funds for procurement of Patriot (PAC-3) 
        missiles pending submission of required certification

      The House bill contained a provision (sec. 231) that 
would prevent obligation of funds for procurement of PAC-3 
missiles pending submission of criteria to the congressional 
defense committees for the transfer of missile defense programs 
from the Missile Defense Agency (MDA) to the military 
departments and certification by the Secretary of Defense that 
those criteria have been met for the PAC-3 program. The 
criteria and certification are required by sections 224(b)(2) 
and 224(c), respectively, of title 10, United States Code.
      The Senate amendment contained no similar provision.
      The House recedes.
      In its budget submission for fiscal year 2003, the 
Department of Defense proposed transferring the PAC-3 program 
from the MDA to the Army. The conferees understand that the 
Department has decided not to transfer the PAC-3 program, 
pending full agreement within the Department on the appropriate 
criteria to establish prior to the transfer. Furthermore, the 
conferees understand that such criteria, as well as the 
appropriate certification, will be submitted to Congress prior 
to proposing such a transfer in the future. Based on this, the 
conferees consider the House provision to be unnecessary at 
present.
      The conferees strongly support the PAC-3 program and 
expect that, prior to transferring this or any other program 
from MDA to the services, the Department will establish 
appropriate criteria to ensure that the programs are adequately 
funded, managed, upgraded, and supported over time.

Report on implementation of Defense Science Board recommendations

      The Senate amendment contained a provision (sec. 237) 
that would require the Secretary of Defense to report to the 
congressional defense committees on the implementation of the 
recommendations of the December 2000 report of the Defense 
Science Board Task Force on Test and Evaluation Capabilities.
      The House bill contained no similar provision.
      The Senate recedes.

Theater Aerospace Command and Control Simulation Facility upgrades

      The Senate amendment contained a provision (sec. 219C) 
that would authorize $2.5 million for Theater Aerospace Command 
and Control Simulation Facility (TACCSF) upgrades.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

Very high speed support vessel for the Army

      The Senate amendment contained a provision (sec.219F) 
that would increase the amount authorized to be appropriated 
for research, development, test, and evaluation for the Army by 
$5.5 million for the development of a prototype composite hull 
design to meet the theater support vessel requirement. The 
provision would offset this increase by a reduction of $5.5 
million authorized to be appropriated for research, 
development, test, and evaluation for the Navy for the 
submarine tactical warfare program.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.

                  Title III--Operation and Maintenance


Overview

      The President's budget request for fiscal year 2003 
included $129.8 billion for operation and maintenance programs 
and $3.3 billion for working capital fund accounts.
      The budget request also included $20.1 billion in the 
operation and maintenance title for the Defense Emergency 
Response Fund (DERF). Of this amount, $10.1 billion was 
requested for specific programs and $10.0 billion was requested 
as unspecified contingency funding for continuing the war on 
terrorism into fiscal year 2003.
      The House bill would authorize $130.4 billion for 
operation and maintenance accounts and $2.4 billion for working 
capital fund accounts.
      The Senate amendment would authorize $129.5 billion for 
operation and maintenance accounts and $2.6 billion for working 
capital fund accounts.
      The conferees recommend an authorization of $129.1 
billion for the operation and maintenance accounts and $2.6 
billion for the working capital fund accounts of the Department 
of Defense for fiscal year 2003.
      The amounts recommended in this title include two 
reductions discussed more fully in title X of this Act, one for 
improved management of services contracts and one for 
reductions in proposed information technology modernization 
prior to design of a comprehensive financial management 
structure. For operation and maintenance, the conferees agree 
to a reduction of $494.1 million for savings from services 
contracts and $51.6 million from financial management 
information technology systems.
      The conferees agree to a reduction of $654.4 million in 
working capital funds, including a $328.0 million increase (as 
requested in the DERF) for renovation and reconstruction of the 
Pentagon, a decrease of $839.1 million for changes in the 
accounting structure for health and retirement benefits that 
were not adopted (discussed more fully below), a decrease of 
$148.6 million from financial management information technology 
systems, and an increase of $5.3 million as requested in the 
DERF.
      The House bill, the Senate amendment, and the conference 
agreement transfer the funding requested in the DERF to the 
appropriate accounts throughout the Department of Defense. The 
authorization of appropriations for the unspecified $10.0 
billion for continuing the war on terrorism, which would fund 
the costs of ongoing military operations as well as the 
additional pay and benefits of mobilized guard and reserve 
personnel, has been transferred to title XV of this Act.
      The conferees' actions on the $10.1 billion in funding 
for the other portion of the DERF are reflected in the tables 
throughout this report which describe the accounts to which 
those funds were transferred.
      The budget request also proposed to change the accounting 
structure for various health and retirement benefits of federal 
civilian employees to an accrual basis. As discussed in the 
House and Senate reports, Congress did not agree with this 
proposed change. The operation and maintenance accounts in the 
House bill, the Senate amendment, and the conference agreement 
have been reduced by $2.3 billion to reflect the appropriate 
funding levels for defense programs under current accounting 
procedures. The authorizations for revolving and management 
funds in this title have been reduced by $839.1 million for 
this same reason. These reductions would not entail any change 
to the benefits of federal civilian employees funded by either 
direct appropriations or through the working capital funds.


Department of Defense foreign language training

      The budget request included $135.4 million in Operation 
and Maintenance, Army for the Defense Language Institute/
Foreign Language Center (DLI/FLC).
      The House bill and the Senate amendment would support the 
budget request. The House version of the Intelligence 
Authorization Act for Fiscal Year 2003 (H.R. 4628) would 
authorize an increase of $2.0 million for the satellite 
communications for learning (SCOLA) project at the DLI/FLC.
      The conferees agree to authorize $136.4 million, an 
increase of $1.0 million in Operation and Maintenance, Army for 
SCOLA. The conferees also direct the Secretary of the Army to 
designate an appropriate organization to manage the SCOLA 
program beginning in fiscal year 2003.
      The SCOLA project provides important support within the 
Government. Financing to date for the SCOLA project has been 
provided by reimbursements from defense agencies and other 
government activities seeking SCOLA program support. The 
conferees believe that the SCOLA program deserves more focused 
management that would benefit the program with: (1) a more 
reliable funding line item in the budget; and (2) better 
support in the programming and budgeting process from the 
Department. The conferees also believe that the DLI/FLC would 
be an appropriate organization to manage the SCOLA program 
effort.

Ship depot maintenance

      The budget request for fiscal year 2003 included $3.5 
billion for ship depot maintenance.
      The Senate amendment recommended a $90.0 million increase 
in ship depot maintenance to address war-related requirements 
and emergent repairs.
      The House bill contained no similar increase.
      The conferees agree to authorize the amount included in 
the budget request.
      The request for the fiscal year 2002 supplemental 
appropriations bill included $90.0 million to fund regularly 
scheduled maintenance that would have been deferred until 
fiscal year 2003 because funds were being diverted for war-
related repairs. This funding for ship depot maintenance was 
approved by Congress.
      Because supplemental funding was provided that would 
allow regularly scheduled maintenance to proceed as planned, 
the conferees did not adopt the increase recommended in the 
Senate amendment.

Secure communications for the reserve components

      The budget request for the Defense Emergency Response 
Fund included almost $200.0 million for the reserve components 
to increase reserve communications infrastructure.
      The House bill fully funded this request.
      The Senate amendment expressed support for the proposed 
improvements, but it also expressed concern over whether the 
entire amount requested could be executed in one fiscal year. 
Accordingly, the Senate amendment reduced the request by $40.0 
million. The Senate report also required the Commander in Chief 
for Homeland Security to conduct a review of requirements to 
expand reserve component communications and to report the 
results of this review to the congressional defense committees 
no later than April 30, 2003.
      The conferees agree to authorize a $40.0 million decrease 
and jointly endorse the need for the required review.
      Since the Senate completed action on its bill, Congress 
has received a report from the General Accounting Office (GAO) 
entitled ``National Guard: Effective Management Processes 
Needed for Wide-Area Network.'' This report identifies a number 
of deficiencies in the management of the National Guard's wide-
area network, known as GuardNet. The conferees are concerned 
that the Department of Defense (DOD)'s plans to expand GuardNet 
and/or increase its use may be overly aggressive, given the 
apparent lack of defined requirements, uncertain configuration 
of the network, and potential security risks. The conferees 
believe that GuardNet can play a critical role both in 
enhancing the readiness of our Armed Forces by facilitating 
training and in bolstering capabilities to defend the homeland 
through rapid, secure communications with and between National 
Guard units. Therefore, the conferees strongly urge DOD to 
address these management concerns as quickly as possible and to 
include an update on any actions taken in its report to the 
congressional defense committees in April 2003.

                       Items of Special Interest


Formerly Used Defense Site at Lowry Bombing and Gunnery Range

      The Army is the executive agent for the Formerly Used 
Defense Site (FUDS) Program, and the U.S. Army Corps of 
Engineers manages and executes actual remediation activities. 
The conferees urge the Secretary of the Army to expeditiously 
move forward with remediation efforts at all former military 
ranges.
      The conferees are aware of the environmental cleanup 
activities needed at the former Lowry Bombing and Gunnery Range 
in Arapahoe County, Colorado, and recognize the importance of 
completing needed cleanup and containment to protect the health 
and safety of the surrounding residences and to permit planned 
residential and school construction in the surrounding area to 
proceed. The conferees encourage the Army Corps of Engineers to 
complete cleanup in a timely manner by providing sufficient 
resources and selecting appropriate cleanup and containment 
methodologies for the former Lowry Bombing and Gunnery Range 
and for all other installations included in the FUDS Program.

National Imagery and Mapping Agency commercial satellite imaging 
        support

      The conferees recognize the importance of a viable, 
technically competent, commercial space imaging industry as an 
important complement to U.S. national technical means and note 
that the Director of Central Intelligence has directed the 
National Imagery and Mapping Agency (NIMA) to make fuller use 
of commercial imagery. The conferees believe that a long-term 
government commitment to the appropriate use of commercial 
imagery is necessary in this context. The conferees believe 
that such a long-term commitment would cause commercial capital 
to become available to industry to support development of next 
generation commercial space imaging capabilities and 
infrastructure and would also result in greatly reduced cost-
per-unit for commercial imagery.
      Section 2306b, title 10, United States Code, provides the 
head of an agency with the authority to enter into a multiyear 
contract for the purchase of property for more than one, but 
not more than five program years to the extent that funds are 
otherwise available for obligation. This authority is further 
qualified in that the agency head must find that the multiyear 
saves money, that the requirement is substantially stable, and 
that there is a reasonable expectation throughout the contract 
period that sufficient funds will be budgeted to avoid contract 
cancellation. For the Department of Defense, the agency head's 
authority is also restricted to contracts less than $500.0 
million, with an unfunded contingent liability of $20.0 million 
or less. For amounts greater than these, congressional 
notification or express congressional approval is required.
      The multiyear authority does not waive the requirement 
for annual appropriations from Congress for each contract year 
nor does it preclude the Government's ability to terminate the 
contract for convenience. Nevertheless, because multiyear 
contracts can bring a significant measure of stability and 
economic order quantity activity to a program, it provides for 
considerably more efficient program execution and savings to 
the Government.
      The conferees believe that the termination liability in a 
multiyear contract for pixels or product from the commercial 
remote sensing industry need not exceed $20.0 million in any 
contract year. Thus the conferees understand that the Director 
of NIMA, under the foregoing statute, has the authority to 
award such a multiyear contract to a commercial remote sensing 
company for up to five years and $500.0 million ($100.0 million 
for each of five years) without requiring express congressional 
approval, as long as the unfunded contingent liability does not 
exceed $20.0 million. If the Director desired to purchase 
imagery from more than one industry source, he could award more 
than one multiyear contract on his own authority; however, 
congressional approval would be required if the aggregate 
amount were to exceed $500.0 million or $20.0 million in 
termination liability.
      The conferees expect NIMA to take advantage of existing 
multiyear contracting authority, including the authority 
contained in 10 USC 2306b, for commercial satellite imagery 
when such use is in the best interests of the Government.

                     Legislative Provisions Adopted


              Subtitle A--Authorization of Appropriations


Authorization of appropriations (secs. 301-302)

      The House bill contained provisions (secs. 301-302) that 
would authorize the recommended fiscal year 2003 funding levels 
for all operation and maintenance and working capital fund 
accounts.
      The Senate amendment contained similar provisions (secs. 
301-302).
      The conference agreement includes these provisions.

Armed Forces Retirement Home (sec. 303)

      The House bill contained a provision (sec. 303) that 
would authorize $69.9 million from the Armed Forces Retirement 
Home Trust Fund for the operation of the Armed Forces 
Retirement Home, including the Armed Forces Retirement Home--
Washington, and the Armed Forces Retirement Home--Gulfport.
      The Senate amendment contained a similar provision (sec. 
303).
      The Senate recedes.

Grant to National Guard Youth Foundation (sec. 304)

      The conference agreement includes a provision (sec. 304) 
that would authorize $2.5 million for a grant to the National 
Guard Youth Foundation for building and strengthening the 
character and competence of the Nation's youth.

                  Subtitle B--Environmental Provisions


Enhancement of authority on cooperative agreements for environmental 
        purposes (sec. 311)

      The Senate amendment contained a provision (sec. 311) 
that would authorize the Secretary of Defense to enter into and 
fund cooperative agreements with Federal, State and local 
agencies, as well as Indian tribes, that begin in one fiscal 
year and end in another fiscal year.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Single point of contact for policy and budgeting issues regarding 
        unexploded ordnance, discarded military munitions, and 
        munitions constituents (sec. 312)

      The House bill contained a provision (sec. 313) that 
would require the Secretary of Defense to establish a single 
point of contact for policy and budgeting issues regarding 
unexploded ordnance, discarded military munitions, and 
munitions constituents (UXO).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment clarifying the 
authority that may be delegated under the provision.
      The conferees direct the Department of Defense to provide 
a consolidated budget exhibit on all proposed funding to 
address environmental impacts of UXO with its budget submission 
in each of the next four fiscal years as noted in the Senate 
report accompanying S. 2514 (S. Rept. 107-151).

Authority to carry out construction projects for environmental 
        responses (sec. 313)

      The House bill contained a provision (sec. 2802) that 
would clarify that the secretaries of the military departments 
are required to notify Congress of their intent to conduct 
military construction projects necessary to carry out an 
environmental response action when such projects are in excess 
of the minor construction threshold.
      The Senate amendment contained a provision (sec. 312) 
that would require the Secretary of Defense to fund 
environmental restoration projects through the Environmental 
Restoration accounts of the Department of Defense and not as 
military construction projects.
      The House recedes.

Procurement of environmentally preferable procurement items (sec. 314)

      The Senate amendment contained a provision (sec. 313) 
that would require the Secretary of Defense to establish: (1) 
goals for the increased purchase of procurement items that are 
environmentally preferable or are made with recovered 
materials; and (2) a tracking system to enable the Department 
to monitor its progress in achieving these goals.
      The House bill contained no similar provision.
      The House recedes with an amendment that would eliminate 
the requirement to establish goals. The Secretary of Defense 
would be required to develop and implement an effective and 
efficient tracking system to identify the extent to which the 
Defense Logistics Agency procures items that have been 
determined to be environmentally preferable or made with 
recovered material. To the maximum extent practicable, the 
tracking system would be required to separately track the 
procurement of each category of such procurement items. In 
identifying categories of procurement items to be tracked, the 
conferees expect the Secretary to consider the Comprehensive 
Procurement Guidelines and Guidance on Acquisition of 
Environmentally Preferable Products and Services developed 
pursuant to Executive Order 13101 and products identified as 
environmentally preferable in the Federal Logistics Information 
System. The conferees also expect that the system will track 
the procurement of such items as a percentage of all purchases 
of procurement items that serve a similar purpose.

Incidental taking of migratory birds during military readiness 
        activities (sec. 315)

      The House bill contained a provision (sec. 311) that 
would amend the Migratory Bird Treaty Act (Public Law 93-300) 
to create a statutory exemption for the Department of Defense 
(DOD) for the incidental taking of migratory birds during 
authorized military readiness activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would create 
interim authority under which the Migratory Bird Treaty Act 
would not apply to the incidental taking of a migratory bird by 
DOD during authorized military readiness activities. The 
amendment would direct the Secretary of the Interior to 
prescribe regulations, no later than one year after the date of 
enactment of this Act, to exempt DOD for the incidental taking 
of migratory birds during authorized military readiness 
activities. The interim authority would not expire until the 
regulations have taken effect. The amendment would also require 
the Secretary of Defense, acting in consultation with the 
Secretary of the Interior, to identify measures to minimize the 
adverse impact of military training activities on affected 
species of migratory birds during both the period of interim 
authority and the period after the regulations have taken 
effect.
      The conferees believe this provision to be entirely 
consistent with the underlying terms of all treaty obligations 
of the United States.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities


Authority for each military department to provide base operating 
        support to Fisher Houses (sec. 321)

      The House bill contained a provision (sec. 321) that 
would authorize the service secretaries to provide appropriated 
fund support to Fisher Houses associated with the health care 
facilities of that military department.
      The Senate amendment contained a similar provision (sec. 
903).
      The Senate recedes.

Use of commissary stores and MWR retail facilities by members of 
        National Guard serving in national emergency (sec. 322)

      The House bill contained a provision (sec. 322) that 
would authorize members of the National Guard to use commissary 
and exchange stores when ordered to duty in other than a 
federal status in response to a federally declared national 
emergency.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Uniform funding and management of morale, welfare, and recreation 
        programs (sec. 323)

      The House bill contained a provision (sec. 323) that 
would authorize the Secretary of Defense to permit installation 
commanders to manage funds appropriated for installation 
Morale, Welfare, and Recreation (MWR) programs under the 
procedures used for nonappropriated funds and would authorize 
conversion of certain employment positions, with the employees' 
consent, from appropriated fund positions to nonappropriated 
fund positions.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Rebate agreements under the special supplemental food program (sec. 
        324)

      The Senate amendment contained a provision (sec. 344) 
that would authorize the Secretary of Defense to enter into 
contracts for rebates with producers of food products for the 
exclusive right to provide food in Navy Exchange Markets as 
supplemental food for the Women, Infants, and Children (WIC) 
Overseas Program, consistent with current authority for 
products sold in commissary stores. The recommended provision 
would also increase the maximum period of the exclusive rights 
contracts from one year to three years.
      The House bill contained no similar provision.
      The House recedes.

                 Subtitle D--Workplace and Depot Issues


Notification requirements in connection with required studies for 
        conversion of commercial or industrial type functions to 
        contractor performance (sec. 331)

      The House bill contained a provision (sec. 331) that 
would require the Secretary of Defense to notify Congress of 
the outcome of a required study for conversion of a function to 
contractor performance, regardless of whether the study results 
in conversion to contractor performance or maintaining 
performance in the public sector.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Temporary authority for contractor performance of security-guard 
        functions to meet increased requirements since September 11, 
        2001 (sec. 332)

      The House bill contained a provision (sec. 332) that 
would authorize the Secretary of Defense or the secretary of a 
military department to waive the prohibition in section 2465(a) 
of title 10, United States Code, on contracting out security 
guard functions in certain circumstances. The House provision 
would authorize the Department to contract for security guard 
functions if: (1) those functions are or will be performed by 
members of the Armed Forces; or (2) the security guard 
functions were not required before September 11, 2001.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the waiver of section 2465(a) to meet increased security guard 
functions undertaken in response to the terrorist attacks of 
September 11, 2001, if: (1) the functions are or would be 
performed by members of the Armed Forces; and (2) the secretary 
concerned determines that the contractor personnel are 
appropriately trained and supervised and can be used without a 
reduction in security at the affected installation or facility. 
The authority to contract out security guard functions under 
this provision would expire three years after the date of 
enactment of this Act. The Secretary of Defense would be 
required to identify any longer-term requirements for security 
guard functions and submit a plan for meeting those 
requirements to the congressional defense committees no later 
than six months after the date of enactment.

Repeal of obsolete provision regarding depot-level maintenance and 
        repair workloads that were performed at closed or realigned 
        military installations (sec. 333)

      The House bill contained a provision (sec. 334) that 
would repeal section 2469(a) of title 10, United States Code, 
which addresses depot-level maintenance and repair workloads 
that were performed at installations closed or realigned under 
the Defense Base Closure and Realignment Act of 1990 (Public 
Law 101-510). Because all installations have completed closure 
or realignment actions in accordance with that law, this 
provision is no longer necessary.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Exclusion of certain expenditures from limitation on private sector 
        performance of depot-level maintenance (sec. 334)

      The House bill contained a provision (sec. 333) that 
would revise section 2474(f) of title 10, United States Code. 
Currently, that section excludes, until 2005, all work that is 
performed by private sector personnel at Department of Defense 
maintenance and repair depots from the percentage limitations 
(50/50) on private sector depot-level maintenance work. The 
provision would remove the date limitation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would revise 
the date limitation. The amendment would extend the exclusion 
for the duration of all public-private partnership contracts 
for depot maintenance that are signed before the end of fiscal 
year 2006.

                Subtitle E--Defense Dependents Education


Assistance to local educational agencies that benefit dependents of 
        members of the Armed Forces and Department of Defense civilian 
        employees (sec. 341)

      The Senate amendment contained a provision (sec. 331) 
that would authorize $30.0 million for continuation of the 
Department of Defense assistance program to local education 
agencies that benefit dependents of service members and 
Department of Defense civilian employees.
      The House bill contained a similar provision (sec. 341).
      The House recedes with a technical amendment.

Housing benefits for unaccompanied teachers required to live at 
        Guantanamo Bay Naval Station, Cuba (sec. 342)

      The Senate amendment contained a provision (sec. 1107) 
that would require the Navy to make excess military family 
housing at Guantanamo Bay Naval Station, Cuba, available for 
lease to Department of Defense Education Activity teachers 
assigned to teach at that station.
      The House bill contained a similar provision (sec. 342).
      The House recedes.

Options for funding dependent summer school programs (sec. 343)

      The Senate amendment contained a provision (sec. 333) 
that would require the Secretary of Defense to provide 
dependent summer school programs on the same financial basis as 
programs offered during the regular school year.
      The House bill contained a similar provision (sec. 343).
      The House recedes.
      The conferees expect the Secretary to exercise the 
authority to charge fees for certain summer school programs 
only when necessary to offer a course. When a fee is charged, 
the Secretary should provide authority to waive the fee, on the 
basis of financial need, for students otherwise eligible for 
free education.

Impact aid eligibility for local educational agencies affected by 
        privatization of military housing (sec. 344)

      The House bill contained a provision (sec. 366) that 
would authorize continued eligibility of certain local 
education agencies for impact aid during temporary reductions 
in the number of qualified students because of conversion of 
military housing units to private housing. The provision would 
also exclude basic allowance for housing payments to military 
personnel residing in privatized military housing from income 
for purposes of determining eligibility for free or reduced 
price school lunches.
      The Senate amendment contained a similar provision (sec. 
1064).
      The Senate recedes with an amendment deleting the 
provision for free or reduced price school lunches because this 
provision was enacted in separate legislation.

Comptroller General study of adequacy of compensation provided for 
        teachers in the Department of Defense Overseas Dependents' 
        Schools (sec. 345)

      The Senate amendment contained a provision (sec. 334) 
that would extend from May 1, 2002 to December 12, 2002 the 
date for the Comptroller General to report on a study on 
whether compensation for teachers in the Department of Defense 
dependents' education system is adequate for recruiting and 
retaining high quality teachers. The provision would also 
require the Comptroller General to consider whether the process 
for setting teacher compensation is efficient and cost 
effective.
      The House bill amendment contained no similar provision.
      The House recedes.

                   Subtitle F--Information Technology


Annual submission of information regarding information technology 
        capital assets (sec. 351)

      The House bill contained a provision (sec. 352) that 
would require the Secretary of Defense to include, along with 
the annual budget request, a description of and complete budget 
information on major information technology, national security 
system, and national security capital asset programs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to clarify certain 
terms and to minimize reporting requirements.

Policy regarding acquisition of information assurance and information 
        assurance-enabled information technology products (sec. 352)

      The House bill contained a provision (sec. 353) that 
would require the Secretary of Defense to establish and 
implement a policy limiting the acquisition of all commercial 
off-the-shelf information assurance and information assurance-
enabled information technology products to those products that 
have been evaluated and validated in accordance with 
appropriate criteria, schemes, or programs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to: (1) apply the policy to all information 
assurance and information assurance-enabled information 
technology products (not just commercial off-the-shelf 
products); and (2) authorize the waiver of the policy in the 
national security interest of the United States.

Installation and connection policy and procedures regarding Defense 
        Switch Network (sec. 353)

      The House bill contained a provision (sec. 354) that 
would direct the Secretary of Defense to establish uniform 
policies and procedures throughout the Department for the 
installation and connection of telecom switches to the Defense 
Switch Network.
      The Senate amendment contained a similar provision (sec. 
348).
      The House recedes with a clarifying amendment.

                       Subtitle G--Other Matters


Distribution of monthly reports on allocation of funds within operation 
        and maintenance budget subactivities (sec. 361)

      The House bill contained a provision (sec. 361) that 
would clarify that the monthly reports on operation and 
maintenance accounts that the Department of Defense is required 
to provide to Congress should be delivered to the congressional 
defense committees.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Continuation of arsenal support program initiative (sec. 362)

      The House bill contained a provision (sec. 364) that 
would extend the Arsenal Support Program Initiative through 
fiscal year 2004. The provision also required a report from the 
Secretary of the Army evaluating the Initiative's results.
      The Senate amendment contained an identical provision 
(sec. 346).
      The conference agreement includes this provision.

Extension of work safety demonstration program (sec. 363)

      The Senate amendment contained a provision (sec. 350) 
that would extend by one year the authority for the work safety 
demonstration program through September 30, 2003.
      The House bill contained no similar provision.
      The House recedes.

Condition on authority of Defense Security Service to impose fees on 
        fee-for-service basis (sec. 364)

      The House bill contained a provision (sec. 363) that 
would prohibit the Secretary of Defense from converting the 
Defense Security Service (DSS) to a working capital-funded 
entity until the Secretary certifies that DSS has the requisite 
financial systems to support such operations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment clarifying that DSS 
is currently a working capital-funded entity but cannot impose 
fees on a fee-for-service basis until proper certification is 
provided.

Logistics support and services for weapon systems contractors (sec. 
        365)

      The Senate amendment contained a provision (sec. 345) 
that would allow the Defense Logistics Agency (DLA) to provide 
services to weapon systems contractors on a reimbursable basis. 
The authority would be limited to no more than five contracts, 
with a total value of less than $100.0 million.
      The House bill contained no similar provision.
      The House recedes with an amendment specifying that, in 
accordance with section 2208(h), title 10, United States Code, 
all revenues from such contracts would be credited to DLA 
accounts.

Training range sustainment plan, Global Status of Resources and 
        Training System, and training range inventory (sec. 366)

      The House bill contained a provision (sec. 365) that 
would require the Secretary of Defense to develop a 
comprehensive plan for addressing training constraints caused 
by limitations on the use of military lands, marine areas, and 
airspace; a plan to modify the Global Status of Resources and 
Training System to better reflect the impact of such training 
constraints; and a training range inventory for each of the 
military services.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment clarifying the 
content and timing of the required plans and reports.

Engineering study and environmental analysis of road modifications in 
        vicinity of Fort Belvoir, Virginia (sec. 367)

      The Senate amendment contained a provision (sec. 349) 
that would provide $5.0 million to the Secretary of the Army to 
conduct a preliminary engineering and environmental study on 
the feasibility of providing an alternative to Beulah Road 
(State Route 613) and Woodlawn Road (State Route 618) at Fort 
Belvoir, Virginia, which were closed as a force protection 
measure. The Secretary would submit a summary report on the 
study and analysis to Congress with the budget justification 
materials for the fiscal year 2006 budget request.
      The House bill contained no similar provision.
      The House recedes.
      The conferees are aware that other communities have been 
adversely impacted by the closure of public roads that traverse 
military installations and believe the communities that have 
lost access to thoroughfares constructed and maintained with 
local tax dollars should be appropriately compensated for this 
loss. The conferees understand that Fort Dix, New Jersey, and 
Fort Drum, New York, are among the communities affected by road 
closures. The conferees are also aware of a long-standing issue 
of road access on Andersen Air Force Base, Guam.
      Accordingly, the conferees direct the Secretary of 
Defense to identify all localities affected by the closures of 
public roads on military installations to enhance force 
protection, to work with local communities to find appropriate 
means, including compensation, to address these situations, and 
to include those measures in future budget requests as 
necessary.

Reauthorization of warranty claims recovery pilot program (sec. 368)

      The conference agreement includes a provision (sec. 368) 
that would extend the warranty claims pilot program through 
September 30, 2004.

Expanded eligibility for loan, gift, or exchange of documents, 
        historical artifacts, and condemned or obsolete combat materiel 
        (sec. 369)

      The conference agreement includes a provision (sec. 369) 
that would include nonprofit military aviation heritage 
foundations and associations among the entities eligible to 
receive transfers of excess Department of Defense (DOD) 
materiel.
      The conferees authorize this expansion with the 
recognition that section 2572(d)(2) of title 10, United States 
Code, prescribes very limited circumstances under which DOD may 
bear the costs of demilitarizing equipment to make it safe for 
transfer. The conferees further note that, under existing 
statute, DOD is not responsible for the costs of operating, 
maintaining, or repairing equipment once it has been 
transferred. The conferees direct that any transfers made under 
this section be conducted in accordance with DOD regulations 
pertaining to the safe and secure operation of transferred 
equipment.

                   Legislative Provisions Not Adopted


Calculation of five-year period of limitation for Navy-Marine Corps 
        Intranet contract

      The House bill contained a provision (sec. 351) that 
would authorize the Secretary of the Navy to extend the current 
contract for Navy-Marine Corps Intranet (NMCI) services from 
the current five years to seven years.
      The Senate amendment contained a similar provision (sec. 
342).
      Because similar legislation has been enacted (Public Law 
107-254), the conference report does not include either 
provision.

Clarification of required core logistics capabilities

      The House bill contained a provision (sec. 335) that 
would expand the definition of core logistics capabilities to 
include acquisition logistics, supply management, system 
engineering, maintenance, and modification management.
      The Senate amendment contained no similar provision.
      The House recedes.

Cleanup of unexploded ordnance on Kaho'olawe Island, Hawaii

      The Senate amendment contained a provision (sec. 314) 
that would require the Secretary of the Navy to continue 
cleanup activities on Kaho'olawe Island, Hawaii, until the Navy 
has inspected and assessed 100 percent of the island, cleared 
75 percent of the island in accordance with Tier One standards, 
and cleared 25 percent of the island in accordance with Tier 
Two standards.
      The House bill contained no similar provision.
      The Senate recedes.

Impact aid for children with severe disabilities

      The Senate amendment contained a provision (sec. 332) 
that would authorize $5.0 million for continuation of the 
Department of Defense assistance program to local educational 
agencies that benefit dependents with severe disabilities.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      The conferees agree to authorize $5.0 million of the 
funds available for Operation and Maintenance, Defense-Wide, 
for continuation of the Department of Defense assistance 
program to local educational agencies that benefit dependents 
with severe disabilities.

Lift support for mine warfare ships and other vessels

      The Senate amendment contained a provision (sec. 351) 
that would authorize $10.0 million to be made available for 
implementing recommendations resulting from the Navy's Non-self 
Deployable Watercraft (NSDW) Study and the Joint Chiefs of 
Staff Focused Logistics Study, which are to determine the 
requirements of the Navy to provide lift support for mine 
warfare ships and other vessels. The provision would also 
reduce funding for mine countermeasures ship cradles by the 
same amount.
      The House bill contained no similar provision.
      The Senate recedes on the provision.
      The conferees agree to authorize $10.0 million for 
implementing recommendations resulting from the Navy's Non-self 
Deployable Watercraft (NSDW) Study and the Joint Chiefs of 
Staff Focused Logistics Study and to reduce funding for mine 
countermeasures ship cradles by the same amount. The conferees 
are specifically not directing a particular solution to meeting 
lift support requirements.

Military readiness and the conservation of protected species

      The House bill contained a provision (sec. 312) that 
would amend the Endangered Species Act of 1973 (Public Law 93-
205) to prohibit further designations of critical habitat for 
endangered species in areas for which an Integrated Natural 
Resources Management Plan has been prepared under the Sikes Act 
(Public Law 86-797). The House provision would further amend 
the Endangered Species Act to require regulatory agencies to 
consider national security concerns in addition to economic 
impact prior to designating future areas of critical habitat.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that all federal agencies, 
including the Armed Forces, should be required to comply with 
all federal environmental laws. However, due to their unique 
military training and operational responsibilities, the Armed 
Forces often face unique challenges in balancing the 
obligations to comply with environmental laws and sustain 
military readiness. Examples of these challenges include 
increasing limitations and restrictions on lands and waters 
which are currently set aside for military training exercises 
as well as significant restrictions on the times and conditions 
under which military training exercises can be conducted. The 
conferees are concerned that future designations of critical 
habitat on military training ranges could have an adverse 
impact on the military's readiness capabilities.
      The conferees strongly endorse the consultative process 
through which the military services work with the Fish and 
Wildlife Service to ensure the protection of threatened and 
endangered species by adopting effective Integrated Natural 
Resources Management Plans at military installations. The 
conferees are concerned that questions have been raised 
regarding whether the protections provided by these Integrated 
Natural Resources Management Plans, such as the one at Marine 
Corps Base, Camp Pendleton, California, are sufficient to avoid 
the need for future designations of critical habitat that could 
adversely affect military training. Nevertheless, the conferees 
encourage the Department of the Interior and the Department of 
Defense to pursue a cooperative approach in managing natural 
and cultural resources throughout the Armed Forces.
      The conferees direct the Secretary of Defense to provide 
the Committees on Armed Services of the Senate and the House of 
Representatives recommendations for any legislative proposals 
that he considers necessary to accomplish these stated goals.

Minimum deduction from pay of certain members of the Armed Forces to 
        support Armed Forces Retirement Home

      The House bill contained a provision (sec. 362) that 
would require that the minimum amount deducted monthly from the 
pay of all active duty enlisted, warrant officer, and limited 
duty officer personnel for the support of the Armed Forces 
Retirement Home be no less than $1.
      The Senate amendment contained no similar provision.
      The House recedes.

National Army Museum, Fort Belvoir, Virginia

      The Senate amendment contained a provision (sec. 306) 
that would authorize $100,000 to initiate planning and 
development efforts for the National Army Museum at Fort 
Belvoir, Virginia.
      The House bill contained no similar provision.
      The Senate recedes.

Navy data conversion activities

      The Senate amendment contained a provision (sec. 352) 
that would authorize $1.5 million in Navy operation and 
maintenance funds for the Navy Data Conversion and Management 
Laboratory. The provision would offset this increase with a 
reduction of $1.5 million from Army operation and maintenance 
funds for utilities privatization.
      The House bill contained no similar provision.
      The Senate recedes.

Navy Pilot Human Resources Call Center, Cutler, Maine

      The Senate amendment contained a provision (sec. 305) 
that would authorize $1.5 million of Navy operation and 
maintenance funds for the Navy Pilot Human Resources Call 
Center in Cutler, Maine.
      The House bill contained no similar provision.
      The Senate recedes on the provision. The Navy operation 
and maintenance table contained in this report describes the 
conference agreement for the Cutler call center.

Range Enhancement Initiative Fund

      The Senate amendment contained a provision (sec. 304) 
that would authorize $20.0 million to create a new Range 
Enhancement Initiative Fund from which funds would be drawn to 
purchase easements or cover other costs incurred by the 
military departments resulting from agreements entered into 
under the authorities contained in section 2811 of the Senate 
amendment.
      The House bill contained no similar provision.
      The Senate recedes.

Reimbursement for reserve component intelligence support

      The Senate amendment contained a provision (sec. 343) 
that would authorize the use of operation and maintenance funds 
of the military departments, combatant commands, and defense 
agencies to reimburse pay, allowances and other expenses when 
members of the National Guard and Reserve provide intelligence 
or counterintelligence support to such departments, commands, 
or agencies.
      The House bill contained no similar provision.
      The Senate recedes.

  Title IV--Military Personnel Authorizations Legislative Provisions 
                                Adopted


                       Subtitle A--Active Forces


End strengths for active forces (sec. 401)

      The House bill contained a provision (sec. 401) that 
would authorize the following end strengths for active duty 
personnel of the Armed Forces as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2003                   Change from
                                                FY 2002   ------------------------------------------------------
                   Service                     authorized                  Committee      FY 2003      FY 2002
                                                             Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army........................................      480,000      480,000        484,800         4,800        4,800
Navy........................................      376,000      375,700        379,457         3,757        3,457
USMC........................................      172,600      175,000        175,000             0        2,400
Air Force...................................      358,800      359,000        360,795         1,795        1,995
                                             -------------------------------------------------------------------
      DOD Total.............................    1,387,400    1,389,700      1,400,052        10,352       12,652
----------------------------------------------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 401) 
that would authorize the following end strengths: Army, 
485,000; Navy, 379,200; United States Marine Corps, 175,000; 
Air Force, 362,500.
      The Senate recedes with an amendment that would authorize 
the following end strengths:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2003                   Change from
                                                FY 2002   ------------------------------------------------------
                   Service                     authorized                  Committee      FY 2003      FY 2002
                                                             Request    recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army........................................      480,000      480,000        480,000             0            0
Navy........................................      376,000      375,700        375,700             0         -300
USMC........................................      172,600      175,000        175,000             0        2,400
Air Force...................................      358,800      359,000        359,000             0          200
      DOD Total.............................    1,387,400    1,389,700      1,389,700             0        2,300
----------------------------------------------------------------------------------------------------------------

      The conferees believe that the active duty end strengths 
should be increased substantially. This belief is based not 
only on the testimony of senior military officers who describe 
their personnel as stretched to the limit by ever-expanding 
missions and operations tempo, but also on the fact that more 
than 70,000 mobilized reservists remain on active duty a year 
after the start of the war on terrorism, and active duty tours 
for thousands more have been extended for a second year because 
the active components lack the manpower to meet requirements.
      Furthermore, the conferees are disappointed that due to 
insufficient additional appropriations, the conference report 
was unable to include the increased active end strength 
authorizations recommended by the House and Senate in their 
separate bills.
      That notwithstanding, in order to give the service 
secretaries and the Secretary of Defense more flexibility to 
man the force to meet mission requirements, the conferees have, 
in separate provisions, expanded the authority of the Secretary 
of Defense to increase active end strength from the current two 
percent to three percent above authorized levels. The conferees 
have also created new authority for the service secretaries, 
recognizing the practical limitations they face, to increase 
active end strength by two percent above authorized levels.
      In recognition of the conferees' strong view that active 
duty end strength should not be reduced any further as well as 
the Secretary of Defense's apparent commitment to hold end 
strengths at or above the requested levels, another provision 
in this conference agreement (sec. 402) eliminates the 
Secretary of Defense's current authority to reduce end strength 
below authorized levels.

Revision in permanent end strength minimum levels (sec. 402)

      The House bill contained a provision (sec. 402) that 
would establish end strength floors for the active forces 
equivalent to the end strengths recommended by the committee in 
section 401.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
end strength floors for the active forces equivalent to the end 
strengths contained in the budget request and would eliminate 
the Secretary of Defense's current authority to reduce end 
strength below authorized levels.

Expanded authority for administrative increases in statutory active-
        duty end strengths (sec. 403)

      The House bill contained a provision (sec. 403) that 
would authorize the secretaries of the military departments to 
increase the authorized active duty end strength of their 
respective military service by up to one percent.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would expand 
the authority of the Secretary of Defense to increase active 
duty end strength from the current two percent to three percent 
above authorized levels and would provide new authority for the 
service secretaries to increase active duty end strength by two 
percent above authorized levels.
      This provision reflects the conferees' belief that the 
requested end strength is not sufficient and gives the service 
secretaries and the Secretary of Defense greater flexibility to 
increase end strength as needed to meet mission requirements.

General and flag officer management (sec. 404)

      The House bill contained a provision (sec. 404) that 
would exclude an officer serving in the position of Senior 
Military Assistant to the Secretary of Defense from the 
limitation on active duty officers in grades above major 
general and rear admiral, increase by one the limit on the 
number of lieutenant generals authorized for the Marine Corps, 
require that the Chief of the Veterinary Corps of the Army 
serve in the grade of brigadier general, and require the 
Secretary of Defense to review and report to Congress on active 
duty and reserve general and flag officer authorizations. The 
grade requirements of this provision would be effective on the 
date of receipt by Congress of the report required by this 
provision.
      The Senate amendment contained a provision (sec. 403) 
that would authorize one additional Marine Corps general 
officer in a grade above major general.
      The Senate recedes with an amendment that would exclude 
an officer serving in the position of Senior Military Assistant 
to the Secretary of Defense from the limitation on active duty 
officers in grades above major general and rear admiral, 
increase by one the limit on the number of lieutenant generals 
authorized for the Marine Corps, and require the Secretary of 
Defense to review and report to Congress on active duty and 
reserve general and flag officer authorizations. The provision 
regarding the grade of the Senior Military Assistant to the 
Secretary of Defense would be effective on the date of receipt 
by Congress of the report on active duty and reserve general 
and flag officer authorizations. The provisions regarding the 
number of lieutenant generals in the Marine Corps would be 
effective upon date of enactment. The grade of the Chief of the 
Veterinary Corps of the Army is addressed in a separate 
provision.

Extension of certain authorities relating to management of numbers of 
        general and flag officers in certain grades (sec. 405)

      The House bill contained a provision (sec. 405) that 
would extend to December 31, 2004, three expiring authorities 
relating to general and flag officer management. Those 
authorities provide for: the process by which the Secretary of 
Defense and Chairman of the Joint Chiefs of Staff fill vacant 
senior joint four-star general and flag officer positions; the 
exemption of the senior joint four-star general and flag 
officers appointed by that process from the general and flag 
officer limits that apply to the military services; and the 
process by which the Chairman of the Joint Chiefs of Staff 
designates and fills 12 general and flag officer positions on 
the joint staff and 10 reserve component general and flag 
positions on the staffs of the commanders of the unified and 
specified commands.
      The Senate amendment contained a provision (sec. 501) 
that would extend these authorities to December 31, 2003.
      The Senate recedes.

Increase in authorized strengths for Marine Corps officers on active 
        duty in the grade of colonel (sec. 406)

      The Senate amendment contained a provision (sec. 404) 
that would increase by 40 the authorized strength for colonels 
on active duty in the Marine Corps.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle B--Reserve Forces


End strengths for Selected Reserve (sec. 411)

      The House bill contained a provision (sec. 411) that 
would authorize the following end strengths for the selected 
reserve personnel, including the end strength for reserves on 
active duty in support of the reserves, as of September 30, 
2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                                 ---------------------------------------------------------------
             Service                  FY 2002                        Committee
                                    authorized        Request     recommendation      FY 2003         FY 2002
                                                                      (limit)         request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............         350,000         350,000         350,000               0               0
Army Reserve....................         205,000         205,000         205,000               0               0
Naval Reserve...................          87,000          87,800          87,800               0             800
Marine Corps Reserve............          39,558          39,558          39,558               0               0
Air National Guard..............         108,400         106,600         106,600               0          -1,800
Air Force Reserve...............          74,700          75,600          75,600               0             900
                                 -------------------------------------------------------------------------------
      DOD Total.................         864,658         864,558         864,558               0            -100
Coast Guard Reserve.............           8,000           9,000           9,000               0           1,000
----------------------------------------------------------------------------------------------------------------

      The Senate amendment contained an identical provision. 
The conference agreement includes this provision.

End strengths for Reserves on active duty in support of the reserves 
        (sec. 412)

      The House bill contained a provision (sec. 412) that 
would authorize the following end strengths for reserves on 
active duty in support of the reserves as of September 30, 
2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                      FY 2002    ---------------------------------------------------------------
             Service                authorized                       Committee        FY 2003         FY 2002
                                                      Request     recommendation      request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............          23,698          23,768          24,562             794             864
Army Reserve....................          13,406          13,588          14,070             482             664
Naval Reserve...................          14,811          14,572          14,572               0            -239
Marine Corps Reserve............           2,261           2,261           2,261               0               0
Air National Guard..............          11,591          11,697          11,697               0             106
Air Force Reserve...............           1,437           1,498           1,498               0              61
                                 -------------------------------------------------------------------------------
      DOD Total.................          67,204          67,384          68,660           1,276           1,456
----------------------------------------------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 412) 
that would authorize the following end strengths: the Army 
National Guard of the United States, 24,492; the Army Reserve, 
13,888; the Naval Reserve, 14,572; the Marine Corps Reserve, 
2,261; the Air National Guard of the United States, 11,727; the 
Air Force Reserve, 1,498.
      The Senate recedes with an amendment that would authorize 
the following end strengths for reserves on active duty in 
support of the reserves as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                      FY 2002    ---------------------------------------------------------------
             Service                authorized                       Committee        FY 2003         FY 2002
                                                      Request     recommendation      request       authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard.............          23,698          23,768          24,562             794             864
Army Reserve....................          13,406          13,588          14,070             482             664
Naval Reserve...................          14,811          14,572          14,572               0            -239
Marine Corps Reserve............           2,261           2,261           2,261               0               0
Air National Guard..............          11,591          11,697          11,727              30             136
Air Force Reserve...............           1,437           1,498           1,498               0              61
                                 -------------------------------------------------------------------------------
      DOD Total.................          67,204          67,384          68,690           1,306           1,486
----------------------------------------------------------------------------------------------------------------

End strengths for military technicians (dual status) (sec. 413)

      The House bill contained a provision (sec. 413) that 
would authorize the following end strengths for military 
technicians (dual status) as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                                 ---------------------------------------------------------------
             Service                  FY 2002                        Committee                        FY 2002
                                    authorized        Request     recommendation      FY 2003       authorized
                                                                      (limit)         request         (limit)
----------------------------------------------------------------------------------------------------------------
Army National Guard.............          23,615          23,615          24,102             487             487
Army Reserve....................           6,249           6,349           6,599             250             350
Air National Guard..............          22,422          22,495          22,495               0              73
Air Force Reserve...............           9,818           9,911           9,911               0              93
                                 -------------------------------------------------------------------------------
      DOD Total.................          62,104          62,370          63,107             737           1,003
----------------------------------------------------------------------------------------------------------------

      The Senate amendment contained an identical provision 
(sec. 413).
      The conference agreement includes this provision.

Fiscal year 2003 limitation on non-dual status technicians (sec. 414)

      The House bill contained a provision (sec. 414) that 
would establish the following limits on the number of non-dual 
status technicians as of September 30, 2003:

----------------------------------------------------------------------------------------------------------------
                                                              FY 2003                       Change from
                                                 ---------------------------------------------------------------
             Service               FY 2002 limit                     Committee
                                                      Request     recommendation      FY 2003         FY 2002
                                                                      (limit)         request         (limit)
----------------------------------------------------------------------------------------------------------------
Army National Guard.............           1,600           1,600           1,600               0               0
Army Reserve....................           1,095             995             995               0            -100
Air National Guard..............             350             350             350               0               0
Air Force Reserve...............              90               0              90              90               0
                                 -------------------------------------------------------------------------------
      DOD Total.................           3,135           2,945           3,035              90            -100
----------------------------------------------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 414) 
that would establish numerical limits on the number of non-dual 
status technicians who may be employed in the Department of 
Defense as of September 30, 2003, as follows: (1) Army National 
Guard of the United States, 1,600; (2) Air National Guard of 
the United States, 350; (3) Army Reserve, 995; and Air Force 
Reserve, 0.
      The Senate recedes.

              Subtitle C--Authorization of Appropriations


Authorization of appropriations for military personnel (sec. 421)

      The House bill contained a provision (sec. 421) that 
would authorize a total of $93,725.0 million to be appropriated 
to the Department of Defense for military personnel.
      The Senate amendment included a similar provision (sec. 
421) that would authorize a total of $94.4 billion to be 
appropriated to the Department of Defense for military 
personnel.
      The House recedes with an amendment that would authorize 
$93,829.5 million to be appropriated to the Department of 
Defense for military personnel.
      The conferees provide the following itemization of the 
increases and decreases from the budget request related to the 
military personnel accounts:

                         [Additions in millions]

Military Personnel Funding in DERF................................ $22.9
ARNG National Guard AGR end strength increase.....................  28.4
USAR AGR end strength increase....................................  11.5
ANG AGR end strength increase.....................................   0.7
                                                                  ______
  Total...........................................................  63.5
                        [Reductions in millions]

Accrual payment to Uniformed Services Retiree Health Care Fund....$405.0
Savings from DOD proposals not adopted............................  14.8
Repeal of special compensation for severely disabled..............  53.9
Selective reenlistment bonus......................................  16.5
$30K Lump Sum Bonus...............................................  28.9
Enlistment bonus..................................................  10.5
                                                                  ______
  Total........................................................... 529.6

                   Legislative Provisions Not Adopted

Authority to increase strength and grade limitations to account for 
        reserve component members on active duty in support of a 
        contingency operation
      The Senate amendment contained a provision (sec. 402) 
that would authorize the Secretary of Defense to increase the 
limit on active duty end strength by the number of members of 
the reserve components serving on active duty, with their 
consent, in support of a contingency operation.
      The House bill contained no similar provision.
      The Senate recedes.

                   Title V--Military Personnel Policy


                       Items of Special Interest


Department of Defense education partnerships

      The conferees recognize the importance of the continued 
growth and development of partnerships, using web-based 
technology, between the Department of Defense, high schools, 
and institutions of higher education in order to ensure that 
the services are able to effectively recruit and retain the 
most qualified service members. The conferees are also aware 
that the Department of Defense and the military services 
already have a number of ongoing initiatives to foster such 
education partnerships.
      The conferees encourage the Department to pursue new 
partnerships, in a manner that is fully coordinated with 
ongoing initiatives, that will facilitate the enrollment and 
transfer of students with full recognition of credits among 
two-year and four-year institutions of higher education. Such 
new efforts could enhance education opportunities for minority 
men and women, a demographic that currently makes up nearly 40 
percent of the enlisted members in the armed services.

Enrollments at Air Force Institute of Technology and Naval Postgraduate 
        School

      The conferees are concerned that the Air Force and the 
Navy are not heeding the previous directions, as specified in 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398) and the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107), to 
produce sufficient numbers of military personnel with the 
requisite graduate level education in science, engineering, and 
technology.
      The Air Force Institute of Technology and the Naval 
Postgraduate School are uniquely qualified to meet these 
graduate education requirements with specialized, military-
relevant curricula. As noted by the Secretary of the Air Force 
and the Secretary of the Navy in March 2002, the Air Force and 
Navy are committed to maintaining each school as world-class, 
higher education institutions underpinned by their unique 
service heritage and character.
      Despite such commitment by the secretaries, the conferees 
remain concerned that neither service is fully utilizing the 
military student enrollment capacity of these two institutions. 
Therefore, the conferees direct the Secretaries of the Air 
Force and the Navy to report 120 days after enactment of this 
Act their plans to increase the military student enrollment at 
both schools.

STARBASE resource and training center

      The Department of Defense STARBASE Program is an 
effective community outreach program for youths ages six 
through 18 that is aimed at improving math and science skills. 
It also addresses drug use prevention, health, self-esteem, and 
life skills and exposes youth, parents, and teachers to the 
value of military service. It currently operates at 39 
locations associated with active, guard, and reserve commands 
throughout the United States. At least seven additional 
locations are seeking STARBASE programs.
      The conferees are encouraged that the Department is 
looking at ways to ensure that STARBASE academies are complying 
with program standardization requirements and maintaining 
quality control. The conferees urge the Department of Defense 
to implement a cost-effective system for providing program 
standardization and quality control during fiscal year 2003, to 
include consideration of establishing a STARBASE resource and 
training center.

                     Legislative Provisions Adopted


                  Subtitle A--Officer Personnel Policy


Extension of good-of-the-service waiver authority for officers 
        appointed to a Reserve Chief or Guard Director position (sec. 
        501)

      The House bill contained a provision (sec. 502) that 
would extend to December 31, 2004, the authority of the 
Secretary of Defense to waive the requirement for significant 
joint experience as a qualification for appointment as the 
Chief of the Army, Navy, Air Force, or Marine Corps Reserve or 
as Director of the Army or Air National Guard. The recommended 
provision would also require the Secretary of Defense to report 
to Congress the steps that he, together with the Chairman of 
the Joint Chiefs and the secretaries of the military 
departments, will take to ensure that no further extensions of 
this waiver authority will be required after 2004.
      The Senate amendment contained a similar provision (sec. 
502) that would extend the waiver authority from October 1, 
2003 to December 31, 2003.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to submit by May 1, 2003, a report to 
the Committees on Armed Services of the Senate and the House of 
Representatives indicating what steps have been taken to ensure 
that Reserve and Guard officers receive significant joint duty 
experience and a date by which a waiver will no longer be 
required.

Exclusion of certain officers from limitation on authority to grant a 
        waiver of required completion or sequencing for joint 
        professional military education (sec. 502)

      The Senate amendment contained a provision (sec. 503) 
that would repeal the 10 percent limitation on authority to 
grant officers, in grades below brigadier general and rear 
admiral (lower half), a waiver of the required sequence of 
joint professional military education and joint duty 
assignment.
      The House bill contained no similar provision.
      The House recedes with an amendment that would exclude 
only officers nominated and selected for the joint specialty 
pursuant to section 521 of the National Defense Authorization 
Act of Fiscal Year 2002 (Public Law 107-107) from the 10 
percent limitation on authority to grant officers, in grades 
below brigadier general and rear admiral (lower half), a waiver 
of the required sequence of joint professional military 
education and joint duty assignment. This authority would 
expire on October 1, 2006.

Extension and codification of authority for recall of retired aviators 
        to active duty (sec. 503)

      The Senate amendment contained a provision (sec. 504) 
that would extend to September 30, 2008, the temporary 
authority for recall of retired aviators to active duty.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
terminate the authority to order retired aviators to active 
duty on September 30, 2008, and would allow officers ordered to 
active duty before that date to complete the period of active 
duty specified in an agreement entered into by the officer and 
the secretary concerned, even when that period of active duty 
extends beyond September 30, 2008.

Grades for certain positions (sec. 504)

      The Senate amendment contained a provision (sec. 505) 
that would require that the heads of the Nurse Corps for the 
Army, Navy, and Air Force be appointed in the regular grade of 
major general or rear admiral. The Senate amendment contained 
another provision (sec. 906) that would provide statutory 
authorization for the Army Veterinary Corps and authorize 
appointment of the officer serving in this position in the 
regular grade of brigadier general.
      The House bill contained a provision (sec. 404(c)) that 
would require that the Chief of the Veterinary Corps of the 
Army serve in the grade of brigadier general.
      The House recedes with an amendment that would require 
that the heads of the Nurse Corps for the Army, Navy, and Air 
Force be appointed in the regular grade of major general or 
rear admiral and that the Chief of the Veterinary Corps of the 
Army serve in the grade of brigadier general. The amendment 
would also establish the positions of Chief of Legislative 
Liaison in the Departments of the Army and the Air Force to be 
filled by officers in the grade of major general; Chief of 
Legislative Affairs in the Department of the Navy to be filled 
by an officer in the grade of rear admiral; and Legislative 
Assistant to the Commandant of the Marine Corps to be filled by 
an officer in a grade above colonel.

Reinstatement of authority to reduce three-year time-ingrade 
        requirement for retirement in grade for officers in grades 
        above major and lieutenant commander (sec. 505)

      The Senate amendment contained a provision (sec. 506) 
that would authorize, during the period from September 1, 2002, 
until December 31, 2004, waiver of one year of the three-year 
time-in- grade requirement for retirement for officers in 
grades above major and lieutenant commander. The amendment 
would require advance notice to the Committees on Armed 
Services of the Senate and House of Representatives and would 
authorize the Deputy Under Secretary of Defense for Personnel 
and Readiness to exercise this authority for flag and general 
officers and the service secretaries or assistant secretaries 
responsible for manpower and reserve affairs to exercise this 
authority for retirements in grades of lieutenant colonel and 
colonel, or, in the case of the Navy, commander and captain.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to authorize the service secretaries 
to reduce the time-in-grade requirement for retirement to no 
less than two years for retirements effective between October 
1, 2002, and December 31, 2003. The amendment would authorize a 
service secretary to approve an early retirement of a flag or 
general officer only if approved by the Secretary of Defense or 
a Senate- confirmed civilian official in the Office of the 
Secretary of Defense. The amendment would require advance 
notice to the Committees on Armed Services of the Senate and 
the House of Representatives of the exercise of this authority 
for officers retired in general of flag officer grades.

Authority to require that an officer take leave pending review of a 
        recommendation for removal by a board of inquiry (sec. 506)

      The Senate amendment contained a provision (sec. 552) 
that would authorize the service secretaries to require an 
officer to take leave (including excess leave) while awaiting a 
secretary's action on a board of inquiry's recommendation that 
the officer not be retained on active duty.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                Subtitle B--Reserve Component Management


Reviews of National Guard strength accounting and management and other 
        issues (sec. 511)

      The House bill contained a provision (sec. 511) that 
would require the Comptroller General to submit a report to 
Congress on management of the National Guard. The recommended 
provision would also require the Secretary of Defense to submit 
a report to Congress on the differing Army and Air Force 
policies for taking adverse administrative actions against 
National Guard officers in a State status.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Courts-martial for the National Guard when not in Federal service (sec. 
        512)

      The House bill contained a provision (sec. 512) that 
would update and streamline the administration of military 
justice in the National Guard when it is not in a federal 
status and would require the Secretary of Defense to develop a 
model state Uniform Code of Military Justice and a model state 
Manual for Courts- Martial.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Fiscal year 2003 funding for military personnel costs of reserve 
        component Special Operations Forces personnel engaged in 
        humanitarian assistance activities relating to clearing of 
        landmines (sec. 513)

      The Senate amendment contained a provision (sec. 341) 
that would amend section 401(c) of title 10, United States 
Code, to allow up to 10 percent of the funding for a fiscal 
year for humanitarian and civic assistance to be expended for 
the pay and allowances of reserve component personnel of the 
Special Operations Command (SOCOM) performing duty in 
connection with training and activities related to the clearing 
of landmines for humanitarian purposes.
      The House bill contained no similar provision.
      The House recedes with an amendment that authorizes for 
fiscal year 2003 funds appropriated to a military department 
for reserve component personnel to reimburse military personnel 
expenses of Special Operations Forces of reserve components 
engaged in humanitarian demining training and activities. The 
total expenses incurred in this way cannot exceed 10 percent of 
the operation and maintenance funding for humanitarian 
demining, and the military services must be fully reimbursed. 
The conferees direct the Secretary of Defense, as part of the 
fiscal year 2004 budget request, to submit a legislative 
proposal that ensures that the military personnel expenses of 
active and reserve components employed in humanitarian demining 
activities are defined in detail and budgeted, authorized, and 
appropriated from military personnel accounts.

Use of Reserves to perform duties relating to defense against terrorism 
        (sec. 514)

      The Senate amendment contained a provision (sec. 1043) 
that would change the definition of the term ``weapons of mass 
destruction'' in sections 12304 and 12310 of title 10, United 
States Code, so as to include any large conventional explosive 
that is designed to produce catastrophic loss of life or 
property.
      The House bill contained no similar provision.
      The House recedes with an amendment that would not change 
the definition of the term ``weapons of mass destruction'' but 
would amend sections 12303 and 12310 of title 10, United States 
Code, to authorize the use of the reserves to perform duties 
relating to defense against a terrorist attack or a threatened 
terrorist attack that results, or could result, in catastrophic 
loss of life or property.

Repeal of prohibition on use of Air Force Reserve AGR personnel for Air 
        Force base security functions (sec. 515)

      The Senate amendment contained a provision (sec. 513) 
that would repeal the prohibition on the use of Air Force 
Reserve AGR personnel for Air Force base security functions.
      The House bill contained no similar provision.
      The House recedes.

         Subtitle C--Reserve Component Officer Personnel Policy


Eligibility for consideration for promotion to grade of major general 
        for certain reserve component brigadier generals who do not 
        otherwise qualify for consideration for promotion under the 
        one-year rule (sec. 521)

      The House bill contained a provision (sec. 522) that 
would permit reserve brigadier generals of the Army and Air 
Force to be eligible for promotion with less than one year on 
the reserve active status list or the active-duty list (or 
combination of both lists) when the following three factors 
apply to the officer:
      (1) The officer had been transferred from an inactive 
status to the active status list during the one-year period 
preceding the date of the convening of the promotion board.
      (2) The officer had been in an inactive status for less 
than one year immediately before the officer's most recent 
transfer to an active status.
      (3) The officer had continuously served for at least one 
year on the reserve active status list or the active duty list 
(or a combination of both lists) before the officer's most 
recent transfer to an inactive status.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Authority for limited extension of medical deferment of mandatory 
        retirement or separation of reserve component officers (sec. 
        522)

      The Senate amendment contained a provision (sec. 512) 
that would authorize the service secretaries to defer the 
mandatory retirement or separation of a Reserve component 
officer for 30 days after completion of an evaluation requiring 
hospitalization or medical observation to determine the 
officer's entitlement to retirement or separation for physical 
disability.
      The House bill contained a similar provision (sec. 524).
      The House recedes with a technical amendment.

        Subtitle D--Enlistment, Education, and Training Programs


Enlistment incentives for pursuit of skills to facilitate national 
        service (sec. 531)

      The Senate amendment contained a provision (sec. 541) 
that would authorize unique incentives to encourage individuals 
to volunteer to serve the Nation through enlisting in the Armed 
Forces. Individuals who volunteer under this program would be 
required to serve on active duty for 15 months after completion 
of initial entry training and could complete the remainder of 
their military service obligation by choosing service on active 
duty, in the Selected Reserve, in the Individual Ready Reserve, 
or in another national service program designated by the 
Secretary of Defense. Participants would be required to meet 
all eligibility requirements for military service and would 
elect one of the following incentives: (1) a $5000 bonus 
payable after completion of 15 months of active duty, (2) 
repayment of a qualifying student loan not to exceed $18,000, 
(3) an educational allowance at the monthly rate payable under 
the Montgomery GI Bill for 12 months, or (4) an educational 
allowance of two-thirds of the monthly rate payable under the 
Montgomery GI Bill for 36 months. Program participants who are 
otherwise qualified and volunteer to continue serving on active 
duty may be considered for reenlistment or extension on active 
duty and any additional benefits for which they may be 
eligible.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require an 
enlistee, upon completion of the initial obligated period of 
service, to serve an additional period on active duty as 
determined by the Secretary of Defense or 24 months in an 
active status in the Selected Reserve, then to serve the 
remaining period of obligated service on active duty, in the 
Selected Reserve, in the Individual Ready Reserve, in the Peace 
Corps, Americorps, or other national service program, or some 
combination of these. The amendment would also change the bonus 
amount for 36 months of educational assistance from two-thirds 
to one-half of the monthly rate payable for basic educational 
assistance under the Montgomery GI Bill.

Authority for phased increase to 4,400 in authorized strengths for the 
        service academies (sec. 532)

      The House bill contained a provision (sec. 531) that 
would permit the secretaries of the military departments, 
beginning with classes entering the service academies during 
the 2003-2004 academic year, to increase the end strengths for 
cadets or midshipmen from the current limit of 4,000 to 4,400 
in annual increments of up to 100.
      The Senate amendment contained a similar provision (sec. 
521).
      The Senate recedes.

Enhancement of reserve component delayed training program (sec. 533)

      The House bill contained a provision (sec. 532) that 
would authorize members who enlist in the reserve delayed 
training program to remain in that program for one year, a full 
three months longer than authorized in current law.
      The Senate amendment contained a similar provision (sec. 
511).
      The Senate recedes.

Review of Armed Forces programs for preparation for, participation in, 
        and conduct of athletic competitions (sec. 534)

      The House bill contained a provision (sec. 533) that 
would authorize members and units of the National Guard to use 
appropriated funds to conduct and participate in qualifying 
athletic and small arms competitions.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to conduct a comprehensive review of 
the programs of the active and reserve components of the Armed 
Forces for preparation for, participation in, and conduct of 
athletic competitions. The amendment would also require the 
Secretary to report to the Committees on Armed Services of the 
Senate and the House of Representatives by March 3, 2003, on: 
(1) the adequacy of funding sources for athletic competitions, 
(2) recommendations regarding limitations on the use of the 
funding sources or inadequacies in the funding for athletic 
competitions, (3) an assessment of, and recommendations for, 
achieving consistent funding and policy treatment regarding the 
participation of active and reserve component personnel in 
athletic competitions, and (4) any recommended legislation.

Repeal of bar to eligibility of Army College First Program participants 
        for benefits under student loan repayment program (sec. 535)

      The conference agreement includes a provision that would 
repeal the bar to eligibility for Educational Loan Repayment 
Programs for persons receiving allowances for participating in 
the College First Program.

           Subtitle E--Decorations, Awards, and Commendations


Waiver of time limitations for award of Army Distinguished-Service 
        Cross to certain persons (sec. 541)

      The Senate amendment contained a provision (sec. 531) 
that would waive the statutory time limits for award of 
military decorations to certain individuals who have been 
recommended by the service secretaries for these awards.
      The House bill contained a similar provision (sec. 541).
      The House recedes with an amendment that would remove the 
waiver of time limit for awards of the Distinguished Flying 
Cross of the Navy because the time limit for this award is not 
set forth in statute and may be waived by the Secretary of the 
Navy.

Option to convert award of Armed Forces Expeditionary Medal awarded for 
        Operation Frequent Wind to Vietnam Service Medal (sec. 542)

      The House bill contained a provision (sec. 542) that 
would authorize eligible veterans to receive the Vietnam 
Service Medal in lieu of a previously awarded Armed Forces 
Expeditionary Medal for participation in Operation Frequent 
Wind, the evacuation of Vietnam conducted on April 29 and 30, 
1975.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Korea Defense Service Medal (sec. 543)

      The Senate amendment contained a provision (sec. 532) 
that would require the service secretaries to issue a campaign 
medal, to be known as the Korea Defense Service Medal, to 
military personnel who served in the Republic of Korea, or the 
adjacent waters, between July 28, 1954, and a termination date 
determined by the Secretary of Defense, and who meet prescribed 
service requirements for eligibility.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Commendation of military chaplains (sec. 544)

      The Senate amendment contained a provision (sec. 1069) 
that would express Congress's appreciation for the outstanding 
contributions of military chaplains and would authorize and 
request the President to issue a proclamation calling on the 
people of the United States to recognize the distinguished 
service of the Nation's military chaplains.
      The House bill contained no similar provision.
      The House recedes.

                   Subtitle F--Administrative Matters


Staffing and funding for Defense Prisoner of War/Missing Personnel 
        Office (sec. 551)

      The House bill contained a provision (sec. 551) that 
would require the Secretary of Defense to ensure that the 
Defense Prisoner of War/Missing in Action Office (DPMO) is 
provided sufficient personnel and funding to enable the DPMO to 
fully perform its complete range of missions. The provision 
would also prohibit reducing the number of military and 
civilian personnel assigned or detailed to DPMO below the 
number requested in the President's budget for fiscal year 2003 
unless such a reduction is expressly required by law.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
      The conferees note that the budget request for fiscal 
year 2003 provides for 46 military personnel and 69 civilian 
personnel and includes a funding request for $16.0 million.

Three-year freeze on reductions of personnel of agencies responsible 
        for review and correction of military records (sec. 552)

      The House bill contained a provision (sec. 552) that 
would preclude the secretaries of the military departments from 
reducing the number of military and civilian personnel assigned 
to duty within the review boards agencies through fiscal year 
2005 until 90 days after the secretary of the military 
department concerned submits a report that describes the 
proposed reduction, provides the rationale for the reduction, 
and specifies the number of personnel that will be assigned to 
the board after the reduction is complete.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Authority for acceptance of voluntary services of individuals as 
        proctors for administration of Armed Services Vocational 
        Aptitude Battery test (sec. 553)

      The House bill contained a provision (sec. 554) that 
would authorize the secretaries concerned to accept the 
voluntary services of educators and other individuals to assist 
recruiters in administering the Armed Services Vocational 
Aptitude Battery test to high school students.
      The Senate amendment contained a similar provision (sec. 
1062).
      The Senate recedes with a technical amendment.

Extension of temporary early retirement authority (sec. 554)

      The conference agreement includes a provision that would 
extend the active force drawdown period from December 31, 2001, 
to September 1, 2002, for purposes of temporary authority to 
approve retirements of members with at least 15 but less than 
20 years of active service.

   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces


Surveys of racial and ethnic issues and of gender issues in the Armed 
        Forces (sec. 561)

      The Senate amendment contained a provision (sec. 551) 
that would require the Secretary of Defense to conduct two 
separate biennial surveys, rather than a single annual survey, 
to identify and assess racial, ethnic, and gender issues and 
discrimination among members of the Armed Forces serving on 
active duty and the extent (if any) of ``hate group'' activity 
among such members.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to carry out four quadrennial surveys 
(each in a separate year) to identify and assess racial, 
ethnic, and gender issues and discrimination among members of 
the Armed Forces, active and reserve, and the extent (if any) 
of ``hate group'' activity among such members.

Annual report on status of female members of the Armed Forces (sec. 
        562)

      The House bill contained a provision (sec. 555) that 
would require the Secretary of Defense to submit an annual 
report to the Committees on Armed Services of the Senate and 
the House of Representatives on the status of female members of 
the Armed Forces regarding assignments and assignment policies, 
deployment, promotion and retention rates, sexual harassment, 
and other personnel issues.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment clarifying the 
matters to be included in the report and requiring that the 
report be submitted for each of the fiscal years 2002 through 
2006.

Wear of abayas by female members of the Armed Forces in Saudi Arabia 
        (sec. 563)

      The Senate amendment contained a provision (sec. 554) 
that would prohibit requiring or encouraging service members to 
wear an abaya while serving in Saudi Arabia, taking adverse 
action against members for choosing not to wear an abaya while 
serving in Saudi Arabia, and using Department of Defense funds 
to procure abayas for issuance to military personnel serving in 
Saudi Arabia. The provision would also require instruction to 
female service members ordered to duty in Saudi Arabia about 
this prohibition.
      The House bill contained no similar provision.
      The House recedes with an amendment that would afford 
more flexibility in the timing of instruction to service 
members regarding this provision and would delete the 
prohibition on taking adverse action against members for 
choosing not to wear an abaya while serving in Saudi Arabia. 
The conferees believe that this prohibition against adverse 
action is unnecessary because service members could not be 
required or encouraged to wear an abaya if this provision is 
enacted.

                          Subtitle H--Benefits


Department of Defense support for persons participating in military 
        funeral honors details (sec. 571)

      The House bill contained a provision (sec. 553) that 
would authorize the Secretary of Defense to prescribe a flat-
rate daily stipend for military retirees and others who are not 
service members or government employees participating in 
funeral honors details. The stipend would be paid in lieu of 
separate payments for transportation and miscellaneous 
expenses.
      The Senate amendment contained a similar provision (sec. 
553).
      The Senate recedes with a technical amendment.

Emergency leave of absence program (sec. 572)

      The House bill contained a provision (sec. 561) that 
would authorize a service member to transfer accrued leave to 
another member when the recipient is likely to require a 
prolonged absence from duty due to a medical condition of a 
family member or other hardship condition.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
service secretaries to grant a service member a one-time 
emergency leave of absence of up to 14 days for a qualifying 
emergency. This emergency leave of absence could be granted 
only to prevent the member from entering unearned leave status 
or excess leave status.

Enhanced flexibility in medical loan repayment program (sec. 573)

      The House bill contained a provision (sec. 562) that 
would repeal the bar against providing loan repayment benefits 
to participants in the Armed Forces health professions 
scholarship and financial assistance program and would remove 
the limit on the total benefit that may be paid.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Destinations authorized for Government paid transportation of enlisted 
        personnel for rest and recuperation absence upon extending duty 
        at designated locations overseas (sec. 574)

      The Senate amendment contained a provision (sec. 633) 
that would authorize enlisted personnel, who agree to extend an 
overseas tour for a period of not less than one year, the 
option of round-trip transportation to: (1) the nearest port in 
the 48 contiguous states, or (2) an alternative destination at 
equal or lesser cost.
      The House bill contained a similar provision (sec. 563).
      The House recedes with a technical amendment.

Vehicle storage in lieu of transportation when member is ordered to a 
        nonforeign duty station outside continental United States (sec. 
        575)

      The House bill contained a provision (sec. 564) that 
would authorize members to store a privately owned vehicle when 
the member is ordered to a duty station in a nonforeign area 
outside the continental United States and the shipment of a 
vehicle is prohibited or contingent upon completion of 
extensive modification.
      The Senate amendment contained a similar provision (sec. 
634).
      The Senate recedes.

                          Subtitle I--Reports


Quadrennial quality of life review (sec. 581)

      The Senate amendment contained a provision (sec. 1034) 
that would require the Secretary of Defense to conduct a 
quadrennial quality of life review to examine the quality of 
life of members of the Armed Forces.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Report on desirability and feasibility of consolidating separate 
        courses of basic instruction for judge advocates (sec. 582)

      The House bill contained a provision (sec. 572) that 
would require the Secretary of Defense to study the feasibility 
and desirability of consolidating the separate Army, Navy and 
Air Force courses of basic instruction for judge advocates at a 
single location.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees are aware of, and pleased with, the 
exceptional quality of the various courses of study taught at 
each of the separate service schools for judge advocates. The 
conferees expect the Secretary and the military departments to 
continue to offer judge advocate education of this high 
caliber.

Reports on efforts to resolve status of Captain Michael Scott Speicher, 
        United States Navy (sec. 583)

      The Senate amendment contained a provision (sec. 1035) 
that would require the Secretary of Defense, in consultation 
with the Secretary of State and the Director of Central 
Intelligence, to submit to Congress a report no later than 60 
days after enactment of this Act and every 90 days thereafter 
on the efforts of the United States Government to determine the 
status of Captain Michael Scott Speicher, U.S. Navy. The 
reports would discuss direct and indirect contacts with the 
Government of Iraq, requests to other governments for 
assistance, leads, and cooperation from nongovernmental 
organizations or international organizations pertaining to 
resolving the status of Captain Speicher.
      The House bill contained no similar provision.
      The House recedes with an amendment that would have the 
Secretary submit a report no later than 90 days after the 
enactment of this Act and every 120 days thereafter, would 
provide for the reports to cease upon a final determination 
regarding the status of Michael Scott Speicher by the Secretary 
of Defense, and would make other clarifying amendments.

Report on volunteer services of members of the reserve components in 
        emergency response to the terrorist attacks of September 11, 
        2001 (sec. 584)

      The Senate amendment contained a provision (sec. 1039) 
that would require the Secretary of Defense to report on 
volunteer services performed by members of the reserve 
components not in an official status in response to the 
September 11, 2001, terrorist attacks on the World Trade Center 
and the Pentagon.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the report be submitted no later than 180 days after 
enactment of this Act, include volunteer services performed in 
the vicinity of Shanksville, Pennsylvania, in responding to the 
crash of United Airlines Flight 93, and discuss any recognition 
that the Secretary considers appropriate.

                   Legislative Provisions Not Adopted


Exemption from active status strength limitation for reserve component 
        general and flag officers serving on active duty in certain 
        joint duty assignments designated by the Chairman of the Joint 
        Chiefs of Staff

      The House bill contained a provision (sec. 521) that 
would exempt the 10 reserve component general and flag officers 
who are serving on active duty in designated positions on the 
joint staffs of the commanders of the unified and specified 
commands from counting against the numbers of reserve component 
general and flag officers authorized by section 12004 of title 
10, United States Code.
      The Senate amendment contained no similar provision.
      The House recedes.

Matching funds requirements under National Guard Youth Challenge 
        Program

      The House bill contained a provision (sec. 513) that 
would increase the amount of assistance the Department of 
Defense may provide to a state program of the National Guard 
Challenge Program for a fiscal year not to exceed 75 percent of 
the state program during that fiscal year.
      The Senate amendment contained no similar provision.
      The House recedes.

Military recruiter access to institutions of higher education

      The Senate amendment contained a provision (sec. 542) 
that would encourage and facilitate military service by 
requiring institutions of higher education receiving assistance 
under the Higher Education Act of 1965 (Public Law 89-329) to 
provide military recruiters: (1) the same access to students 
and the institution as is provided to prospective employers, 
and (2) upon request, access to the names, addresses, and 
telephone listings of students, except for the information of 
students who have submitted a request that the information not 
be released without prior written consent.
      The House bill contained no similar provision.
      The Senate recedes.

Retention of promotion eligibility for reserve component general and 
        flag officers transferred to an inactive status

      The House bill contained a provision (sec. 523) that 
would permit reserve officers selected for promotion to major 
general and rear admiral to retain their promotion eligibility 
and, if otherwise qualified, be promoted to the higher grade 
upon returning to an active status from an inactive status.
      The Senate amendment contained no similar provision.
      The House recedes.

Right of convicted accused to request sentencing by military judge

      The House bill contained a provision (sec. 571) that 
would allow a convicted accused at a court-martial composed of 
a military judge and court members to request that the sentence 
be adjudged by a military judge rather than the court members.
      The Senate amendment contained no similar provision.
      The House recedes.

          Title VI--Compensation and Other Personnel Benefits


                     Legislative Provisions Adopted


                     Subtitle A--Pay and Allowances


Increase in basic pay for fiscal year 2003 (sec. 601)

      The House bill contained a provision (sec. 601) that 
would increase basic pay by a minimum of 4.1 percent for all 
members of the uniformed services and would provide additional 
increases to mid-grade and senior non-commissioned officers and 
mid-grade officers.
      The Senate amendment contained an identical provision 
(sec. 601).
      The conference agreement includes this provision.

Basic allowance for housing in cases of low-cost or no-cost moves (sec. 
        602)

      The Senate amendment contained a provision (sec. 603) 
that would extend to locations outside the United States the 
authority to pay the basic allowance for housing based on the 
member's former duty assignment when the member's reassignment 
is a low-cost or no-cost permanent change of station or 
permanent change of assignment. This authority currently 
applies only to assignments within the United States.
      The House bill contained a similar provision (sec. 602).
      The House recedes.

Rate of basic allowance for subsistence for enlisted personnel 
        occupying single Government quarters without adequate 
        availability of meals (sec. 603)

      The Senate amendment contained a provision (sec. 602) 
that would authorize payment of an increased amount of basic 
allowance for subsistence to enlisted members who are assigned 
to single Government quarters without adequate availability of 
meals from a Government messing facility.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

           Subtitle B--Bonuses and Special and Incentive Pays


One-year extension of certain bonus and special pay authorities for 
        reserve forces (sec. 611)

      The House bill contained a provision (sec. 611) that 
would extend the authority for the selected reserve 
reenlistment bonus, the selected reserve enlistment bonus, 
special pay for enlisted members of the selected reserve 
assigned to certain high priority units, the selected reserve 
affiliation bonus, the ready reserve enlistment and 
reenlistment bonus, and the prior service enlistment bonus 
until December 31, 2003.
      The Senate amendment contained an identical provision 
(sec. 611).
      The conference agreement includes this provision.

One-year extension of certain bonus and special pay authorities for 
        certain health care professionals (sec. 612)

      The House bill contained a provision (sec. 612) that 
would extend the authority for the nurse officer candidate 
accession program, the accession bonus for registered nurses, 
the incentive special pay for nurse anesthetists, the special 
pay for selected reserve health care professionals in 
critically short wartime specialties, and the accession bonus 
for dental officers until December 31, 2003. The provision 
would also extend the authority for repayment of educational 
loans for certain health care professionals who serve in the 
selected reserve until January 1, 2004.
      The Senate amendment contained an identical provision 
(sec. 612).
      The conference agreement includes this provision.

One-year extension of special pay and bonus authorities for nuclear 
        officers (sec. 613)

      The House bill contained a provision (sec. 613) that 
would extend the authority for the special pay for nuclear-
qualified officers extending the period of active service, the 
nuclear career accession bonus, and the nuclear career annual 
incentive bonus until December 31, 2003.
      The Senate amendment contained an identical provision 
(sec. 613).
      The conference agreement includes this provision.

One-year extension of other bonus and special pay authorities (sec. 
        614)

      The House bill contained a provision (sec. 614) that 
would extend the authority for the aviation officer retention 
bonus, the reenlistment bonus for active members, the 
enlistment bonus for active members, the retention bonus for 
members with critical military skills, and the accession bonus 
for new officers in critical skills until December 31, 2003.
      The Senate amendment contained an identical provision 
(sec. 614).
      The conference agreement includes this provision.

Increase in maximum rates for certain special pays, bonuses, and 
        financial assistance for health care professionals (sec. 615)

      The Senate amendment contained a provision (sec. 615) 
that would increase to $25,000 the maximum amount of the 
multiyear retention bonus for certain medical officers. The 
Senate amendment contained another provision (sec. 616) that 
would increase to $50,000 the maximum amount payable as special 
incentive pay for certain medical officers of the Armed Forces 
for service during any 12-month period beginning after fiscal 
year 2002.
      The House bill contained no similar provision.
      The House recedes with an amendment that would combine 
the two Senate provisions and would increase: (1) the maximum 
multiyear retention bonus to $50,000 for certain medical 
officers, including dentists; (2) the maximum retention special 
pay for optometrists to $15,000; (3) the maximum accession 
bonus for registered nurses to $30,000; and (4) the maximum 
incentive pay for nurse anesthetists to $50,000. The amendment 
would also convert the special pay for pharmacy officers to a 
retention special pay not to exceed $15,000 for a 12-month 
period and, for nurse officer candidates, would increase the 
maximum accession bonus to $10,000 and the maximum monthly 
stipend to $1000.

Assignment incentive pay (sec. 616)

      The Senate amendment contained a provision (sec. 617) 
that would authorize the service secretaries, with the 
concurrence of the Secretary of Defense, to pay a monthly 
incentive pay of up to $1,500 to members serving in designated 
assignments.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
payment of assignment incentive pay for the period specified in 
a written agreement between the member and the secretary 
concerned and would provide that no agreements may be entered 
into after December 31, 2005.

Increase in maximum rates for prior service enlistment bonus (sec. 617)

      The House bill contained a provision (sec. 616) that 
would increase the maximum rates paid to reservists with 
critical skills under the prior service enlistment bonus to 
$8,000 in the case of a member who enlists for six years, to 
$4,000 in the case of a member who enlists for three years, and 
to $3,500 in the case of a member who received a prior bonus 
for a three-year enlistment and who reenlists or extends for an 
additional three years.
      The Senate amendment contained an identical provision 
(sec. 618).
      The conference agreement includes this provision.

Retention incentives for health care professionals qualified in a 
        critical military skill (sec. 618)

      The House bill contained a provision (sec. 617) that 
would amend the critical skill retention bonus to provide 
exceptions to the limits on bonus amounts and years of service 
for bonuses paid to health care professionals.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

            Subtitle C--Travel and Transportation Allowances


Extension of leave travel deferral period for members performing 
        consecutive overseas tours of duty (sec. 621)

      The House bill contained a provision (sec. 631) that 
would authorize members who have been granted travel and 
transportation allowances in connection with a consecutive 
overseas tour to defer those benefits for the full duration of 
the additional tour of duty. If the member is unable to 
undertake the travel before the completion of the additional 
tour because of duty in connection with a contingency 
operation, the provision would authorize the member to defer 
the travel and transportation for a year after the date on 
which the member's duty in connection with the contingency 
operation duty ends.
      The Senate amendment contained a similar provision (sec. 
631).
      The Senate recedes with a clarifying amendment.

Transportation of motor vehicles for members reported missing (sec. 
        622)

      The Senate amendment contained a provision (sec. 632) 
that would authorize shipment of two privately owned motor 
vehicles when transportation of household and personal effects 
is authorized at government expense in the case of members who 
are officially reported as dead, injured, ill, or absent for a 
period of more than 29 days in a missing status.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

             Subtitle D--Retired Pay and Survivor Benefits


Permanent reduction from eight to six in number of years of reserve 
        service required for eligibility for retired pay for non-
        regular service (sec. 631)

      The House bill contained a provision (sec. 642) that 
would reduce the number of years of continuous reserve 
component service required immediately before qualifying for 
non-regular retired pay from eight to six.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Increased retired pay for enlisted Reserves credited with extraordinary 
        heroism (sec. 632)

      The Senate amendment contained a provision (sec. 642) 
that would authorize a 10 percent increase in the retired pay 
of an enlisted member of a Reserve component when the member 
has been credited with extraordinary heroism in the line of 
duty. The amount of retired pay, including the 10 percent 
increase, would not exceed 75 percent of the member's retired 
base pay.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Elimination of possible inversion in retired pay cost-of-living 
        adjustment for initial COLA computation (sec. 633)

      The House bill contained a provision (sec. 643) that 
would prevent partial-year retired pay cost-of-living 
adjustments (COLAs) in the first year of retirement from 
exceeding the COLA paid to retirees who were retired for the 
entire year.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Technical revisions to so-called ``forgotten widows'' annuity program 
        (sec. 634)

      The House bill contained a provision (sec. 644) that 
would make technical and administrative changes to section 644 
of the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85) that addressed annuities for certain 
military surviving spouses.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the provision precluding retroactive benefits.

Expansion of authority of Secretary of Defense to waive time 
        limitations on claims against the Government for military 
        personnel benefits (sec. 635)

      The Senate amendment contained a provision (sec. 643) 
that would authorize the Secretary of Defense to waive the 
statute of limitations for claims involving uniformed service 
members' pay, allowances, travel, transportation, payments for 
unused accrued leave, retired pay, and survivor benefits.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Special compensation for certain combat-related disabled uniform 
        services retirees (sec. 636)

      The House bill contained a provision (sec. 641) that 
would phase in over five years repeal of the prohibition 
against receipt of both military retired pay and veterans' 
disability compensation for veterans whose disability is rated 
60 percent or higher.
      The Senate amendment contained a similar provision (sec. 
641) that would repeal the prohibition against receipt of both 
military retired pay and veterans' disability compensation.
      The Senate recedes with an amendment that would authorize 
special compensation for uniformed services retirees who 
completed at least 20 years of service creditable for 
retirement and who incurred a qualifying combat-related 
disability. A qualifying combat-related disability is: (1) any 
disability rated at 10 percent or higher attributable to an 
injury for which the member was awarded the Purple Heart; or 
(2) a service-connected disability rated at 60 percent or 
higher incurred as a direct result of armed conflict, while 
engaged in hazardous service, in the performance of duty under 
conditions simulating war, or through an instrumentality of 
war. The amount of the special compensation would be equal to 
the amount of veterans' disability compensation to which the 
retiree would be entitled based solely for the combat-related 
disability without regard to sections 5304 and 5305 of title 
38, United States Code. This provision would be effective no 
later than 180 days after enactment.

                     Subtitle E--Montgomery GI Bill


Time limitation for use of Montgomery GI Bill entitlement by members of 
        the Selected Reserve (sec. 641)

      The Senate amendment contained a provision (sec. 652) 
that would extend from 10 to 14 years the maximum period that a 
member of the Selected Reserve can use educational benefits 
provided under the Montgomery GI Bill for the Selected Reserve.
      The House bill contained a similar provision (sec. 651).
      The House recedes.

Repayment requirements under reserve component Montgomery GI Bill 
        arising from failure to participate satisfactorily in military 
        service to be considered debts owed to the United States (sec. 
        642)

      The Senate amendment contained a provision (sec. 653) 
that would treat an obligation to pay a refund to the United 
States for certain educational assistance as a debt to the 
United States when the obligation to pay the refund was 
incurred because the member failed to participate 
satisfactorily in the Selected Reserve.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Technical adjustments to authority for certain members to transfer 
        educational assistance under Montgomery GI Bill to dependents 
        (sec. 643)

      The Senate amendment contained a provision (sec. 655) 
that would clarify that dependents of active duty military 
personnel would receive transferred Montgomery GI Bill benefits 
at the veterans' rate rather than the in-service rate.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Department of Veterans Affairs to make payments 
attributable to increased usage of benefits as a result of 
transfers of Montgomery GI Bill entitlement from the Department 
of Defense Education Benefits Fund or from appropriations made 
to the Department of Transportation.

                       Subtitle F--Other Matters


Payment of interest on student loans (sec. 651)

      The Senate amendment contained a provision (sec. 656) 
that would authorize the Secretary of Defense to pay interest 
on student loans of service members for three years during 
their first term of service.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Additional authority to provide assistance for families of members of 
        the Armed Forces (sec. 652)

      The Senate amendment contained a provision (sec. 651) 
that would make permanent the temporary authority to provide 
assistance to families of members of the Armed Forces serving 
on active duty to ensure that the children of such families 
obtain needed child care, education, and other youth services.
      The House bill contained no similar provision.
      The House recedes.

Repeal of authority for acceptance of honoraria by personnel at certain 
        Department of Defense schools (sec. 653)

      The Senate amendment contained a provision (sec. 654) 
that would repeal a limited exemption from the ban on receipt 
of honoraria by military and civilian faculty members and 
students at the three service academies and certain Department 
of Defense professional military schools. The exemption limits 
acceptance of honoraria to $2,000.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Addition of definition of continental United States in title 37 (sec. 
        654)

      The House bill contained a provision (sec. 661) that 
would amend section 101 of title 37, United States Code, to 
include the definition of continental United States as the 48 
contiguous states and the District of Columbia.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

                   Legislative Provisions Not Adopted


Minimum levels of hardship duty pay for duty on the ground in 
        Antarctica or on Arctic icepack

      The House bill contained a provision (sec. 615) that 
would specify a hardship duty pay rate of no less than $240 per 
month for duty performed by service members on the ground in 
Antarctica or on the Arctic icepack.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees direct that the issue of payment of special 
and incentive pays for reservists who perform frequent and 
continuous duty on ski-equipped aircraft operating in the polar 
regions while assigned temporarily to locations where extremely 
harsh conditions are encountered be included in the reserve 
component personnel compensation review directed in the Senate 
report accompanying S. 2514 (S. Rept. 107-151) and in the 
Comptroller General review of compensation and benefits for 
reserve component members directed in the House report 
accompanying H.R. 4546 (H. Rept. 107-436).

Modification of amount of back pay for members of Navy and Marine Corps 
        selected for promotion while interned as prisoners of war 
        during World War II to take into account changes in consumer 
        price index

      The Senate amendment contained a provision (sec. 657) 
that would modify the amount of back pay determined for a 
member of the Navy or Marine Corps selected for promotion while 
interned as a prisoner of war during World War II to reflect 
increases in the cost of living.
      The House bill contained no similar provision.
      The Senate recedes.

                   Title VII--Health Care Provisions


                       Items of Special Interest


Civil-military partnership education programs related to sexual health 
        decision-making

      The conferees are aware of collaborative civil-military 
partnership education programs related to sexual health 
decision- making that may have benefits in the reduction of 
unintended pregnancies and sexually transmitted infections 
among military personnel. Such efforts have the potential to 
contribute to improving both the readiness and health of 
military personnel in all services. The conferees direct the 
Department of Defense to examine such collaborative programs 
and consider their use by other services.

Naval Medical Research Center cooperative agreements

      The conferees encourage the Secretary of the Navy, acting 
through the Director of the Naval Medical Research Center, to 
enter into cooperative agreements with administrators of donor 
banks to provide for cooperation between the Bone Marrow 
Registry of the Naval Medical Research Center and the donor 
banks. In light of the fact that bone marrow donor searches for 
minority groups take nearly twice as long as searches for non-
minorities, the Director is encouraged to give a high priority 
to selecting donor banks that emphasize the involvement of 
members of minority groups as donors of tissue or as patients.

TRICARE in Alaska

      The conferees are well aware of the unique challenges in 
providing health care to military beneficiaries in Alaska. 
Geographic impacts on access to care, limited managed care 
initiatives, and the level of reimbursement rates demand 
constant and local oversight of the military health care 
delivery system to ensure adequate and appropriate access for 
military beneficiaries. The conferees commend the local 
military treatment facility commanders for the arrangements 
that have been established with local health care providers and 
other federal health care entities to ensure timely access to 
quality care. The conferees urge the Secretary of Defense to 
exclude Alaska from fiscal year 2003 managed care contracts.

                     Legislative Provisions Adopted


              Subtitle A--Health Care Program Improvements


Elimination of requirement for TRICARE preauthorization of inpatient 
        mental health care for medicare-eligible beneficiaries (sec. 
        701)

      The House bill contained a provision (sec. 701) that 
would eliminate the requirement for pre-admission authorization 
for inpatient mental health services when medicare has already 
authorized such care and medicare is the primary payer.
      The Senate amendment contained a similar provision (sec. 
702).
      The Senate recedes with an amendment that would require 
advance authorization for a continuation of inpatient mental 
health services when medicare coverage terminates.

Continued TRICARE eligibility of dependents residing at remote 
        locations after departure of sponsors for unaccompanied 
        assignments and eligibility of dependents of reserve component 
        members ordered to active duty (sec. 702)

      The Senate amendment contained a provision (sec. 703) 
that would authorize continued eligibility of family members 
for TRICARE Prime Remote when the sponsoring service member is 
transferred from a duty that qualified the family members for 
TRICARE Prime Remote and the family members remain at the 
current duty location because they are not authorized to 
accompany the member to the new duty assignment.
      The House bill contained a similar provision (sec. 702).
      The House recedes with an amendment that extends the 
TRICARE Prime Remote benefit to dependents of reserve component 
personnel residing in locations that qualify for TRICARE Prime 
Remote when the member is ordered to active duty for more than 
30 days.

Eligibility of surviving dependents for TRICARE dental program benefits 
        after discontinuance of former enrollment (sec. 703)

      The Senate amendment contained a provision (sec. 701) 
that would authorize certain surviving dependents to enroll in 
the TRICARE dental plan.
      The House bill contained a similar provision (sec. 703).
      The House recedes.

Department of Defense Medicare-Eligible Retiree Health Care Fund (sec. 
        704)

      The Senate amendment contained a provision (sec. 706) 
that would require that contributions to the Department of 
Defense Medicare-Eligible Retiree Health Care Fund be paid from 
military personnel funds.
      The House bill contained a similar provision (sec. 704).
      The House recedes.
      The conferees intend that the Department of Defense 
exclude cadets and midshipmen from average force strength 
calculations for the Medicare-Eligible Retiree Health Care Fund 
under sections 1115 and 1116 of title 10, United States Code, 
just as cadets and midshipmen are excluded from average force 
strength calculations for the Department of Defense Military 
Retirement Fund under sections 1465 and 1466 of title 10, 
United States Code.

Approval of medicare providers as TRICARE providers (sec. 705)

      The Senate amendment contained a provision (sec. 704) 
that would require that medicare-approved health care providers 
also be considered as approved TRICARE providers.
      The House bill contained a similar provision (sec. 705).
      The House recedes with an amendment that would make this 
provision effective for new TRICARE contracts entered into on 
or after the date of the enactment of this Act.

Technical corrections relating to transitional health care for members 
        separated from active duty (sec. 706)

      The Senate amendment contained a provision (sec. 707) 
that would correct section 736 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) to 
provide transitional health care to the dependents of members 
separated from active duty who are eligible for transitional 
health care.
      The House bill contained a similar provision (sec. 706).
      The House recedes.

Extension of temporary authority to enter into personal services 
        contracts for the performance of health care responsibilities 
        at locations other than military medical treatment facilities 
        (sec. 707)

      The Senate amendment contained a provision (sec. 708) 
that would extend until December 31, 2003, the authority to 
contract with physicians to provide new-recruit physicals.
      The House bill contained no similar provision.
      The House recedes.

Access to health care services for beneficiaries eligible for TRICARE 
        and Department of Veterans Affairs health care (sec. 708)

      The Senate amendment contained a provision (sec. 710) 
that would provide that a TRICARE Prime beneficiary could not 
be denied health care under TRICARE on the basis that the 
beneficiary had received care from the Department of Veterans 
Affairs if the Department of Veterans Affairs cannot provide 
the care within the time limit standards for TRICARE Prime.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to prescribe a process for resolving 
issues relating to patient safety and continuity of care for 
beneficiaries who are concurrently entitled to health care 
under TRICARE and are eligible for health care services from 
the Department of Veterans Affairs. The amendment would also 
require the Comptroller General to conduct a study of the 
health care issues of beneficiaries covered by both systems.

Disclosure of information on Project 112 to Department of Veterans 
        Affairs (sec. 709)

      The Senate amendment contained a provision (sec. 1065) 
that would require the Secretary of Defense to submit to 
Congress and the Secretary of Veterans Affairs a plan for 
review, declassification, and submission to the Department of 
Veterans Affairs of all medically relevant information 
regarding the Shipboard Hazard and Defense (SHAD) project to 
facilitate the provision of Veterans Administration benefits to 
former service members who participated in that project.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
scope of the plan to include all medically relevant information 
on Project 112, which includes the SHAD project, and would 
require a GAO review of the plan.

                          Subtitle B--Reports


Claims information (sec. 711)

      The Senate amendment contained a provision (sec. 705) 
that would require the Secretary of Defense, in new managed 
care support contracts entered into under the TRICARE program 
on or after October 1, 2002, to adopt new claims requirements 
that are substantially the same as Medicare claims 
requirements.
      The House bill contained a provision (sec. 711) that 
would require the Comptroller General to evaluate the 
continuing impediments to a cost-effective provider and 
beneficiary-friendly system for TRICARE claims processing.
      The House recedes with an amendment that would combine 
the provisions and limit claims information to the information 
required for Medicare claims except for information that is 
uniquely required by the TRICARE program.

Comptroller General report on provision of care under the TRICARE 
        program (sec. 712)

      The House bill contained a provision (sec. 712) that 
would require the Comptroller General to evaluate the nature, 
reasons, and extent of trends in TRICARE network provider 
turbulence and the effectiveness of the efforts of the 
Department of Defense and TRICARE managed care support 
contractors to measure and mitigate such turbulence.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Repeal of report requirement (sec. 713)

      The House bill contained a provision (sec. 713) that 
would repeal the TRICARE Senior Prime annual reporting 
requirement specified in section 712 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398).
      The Senate amendment contained no similar provision.
      The Senate recedes.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing


Revised coordination and sharing guidelines (sec. 721)

      The House bill contained a provision (sec. 723) that 
would require the Secretary of Veterans Affairs and the 
Secretary of Defense to: (1) enter into agreements and 
contracts for the mutually beneficial coordination, use, or 
exchange of the health care resources of the respective 
Departments; (2) develop and publish a joint strategic vision 
and plan; (3) establish and jointly fund a Department of 
Defense-Veterans Affairs health executive committee; (4) 
establish and fund a joint incentives program; (5) jointly 
develop guidelines and policies for implementation of 
coordination and sharing recommendations, contracts, and 
agreements; and (6) jointly submit an annual report to Congress 
on health care coordination and sharing activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Comptroller General to review the implementation and 
effectiveness of the joint incentives program and report to the 
Committees on Armed Services and Veterans' Affairs of the 
Senate and the House of Representatives on the results of the 
review. The amendment would also incorporate the reporting 
requirements contained in separate provisions into the annual 
joint report required in this provision and would make other 
technical changes.

Health care resources sharing and coordination project (sec. 722)

      The House bill contained a provision (sec. 724) that 
would require the Secretary of Veterans Affairs and the 
Secretary of Defense to conduct a health care resources sharing 
project at no less than five sites to test the feasibility, 
advantages, and disadvantages of measures and programs designed 
to improve the sharing and coordination of health care and 
health care resources between the Department of Veterans 
Affairs and the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
health care resources sharing projects at no less than three 
sites, would remove the requirement to test affording 
beneficiaries of either Department access to the pharmaceutical 
services of the other Department, and would require the 
Comptroller General to provide for an annual on-site review at 
each of the project locations and report to the Committees on 
Armed Services and Veterans' Affairs of the Senate and House of 
Representatives.
      The conferees do not anticipate that the ``coordinated 
management system'' will disrupt established command and 
control or established reporting chains for either agency.

Report on improved coordination and sharing of health care and health 
        care resources following domestic acts of terrorism or domestic 
        use of weapons of mass destruction (sec. 723)

      The House bill contained a provision (sec. 725) that 
would require the Secretary of Defense and the Secretary of 
Veterans Affairs to review the adequacy of current processes 
and existing statutory authorities and policy governing the 
capability of the Department of Defense and the Department of 
Veterans Affairs to provide health care to service members 
following domestic acts of terrorism or domestic use of weapons 
of mass destruction, both before and after a declaration of 
national emergency. The provision would require the Secretaries 
to report the results to Congress with the fiscal year 2004 
budget submission.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Interoperability of Department of Veterans Affairs and Department of 
        Defense pharmacy data programs (sec. 724)

      The House bill contained a provision (sec. 726) that 
would require the Secretary of Veterans Affairs to adopt the 
Department of Defense's Pharmacy Data Transaction System.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Veterans Affairs and the Secretary of Defense 
to seek to ensure that, by October 1, 2004, their respective 
pharmacy data systems are using national standards for the 
exchange of outpatient medication information and are 
interoperable, achieving real-time interface, data exchange, 
and checking of prescription drug data of outpatients. If 
interoperability is not achieved by October 1, 2004, the 
amendment would require the Secretary of Veterans Affairs to 
adopt the Department of Defense Pharmacy Data Transaction 
System by October 1, 2005.
      The conferees believe the Secretary of Veterans Affairs 
should consider the National Council for Prescription Drug 
Program Standards in determining the national standards 
required for interoperability.

Joint pilot program for providing graduate medical education and 
        training for physicians (sec. 725)

      The House bill contained a provision (sec. 727) that 
would require the Secretary of Defense and the Secretary of 
Veterans Affairs to conduct a joint pilot program under which 
graduate medical education and training is provided to military 
physicians and physician employees of their departments.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Repeal of certain limits on Department of Veterans Affairs resources 
        (sec. 726)

      The House bill contained a provision (sec. 728) that 
would repeal the limits on the total number of authorized 
Veterans Administration hospital and nursing home beds.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted


Findings and sense of Congress concerning status of health resources 
        sharing between the Department of Veterans Affairs and the 
        Department of Defense

      The House bill contained a provision (sec. 722) that 
would express a sense of Congress that the Secretary of Defense 
and Secretary of Veterans Affairs should commit their 
respective Departments to significantly improve mutually 
beneficial sharing and coordination of health care resources 
and services during peace and war, build organizational 
cultures supportive of improved sharing and coordination of 
health care resources and services, and establish and achieve 
measurable goals to facilitate increased sharing and 
coordination of health care resources and services.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees strongly support coordination and sharing 
of health care resources between the Department of Defense and 
the Department of Veterans Affairs. Federal health care 
resources are scarce and thus should be effectively and 
efficiently used. Health care beneficiaries of the Departments 
of Defense and Veterans Affairs, whether active service 
members, veterans, retirees, or family members of active or 
retired service members, should have full access to the health 
care and services that Congress has authorized for them.
      In 1982, Congress authorized the sharing of health 
resources between Department of Defense medical treatment 
facilities and Department of Veterans Affairs health care 
facilities to allow more effective and efficient use of those 
health resources. The Secretary of Defense and the Secretary of 
Veterans Affairs, and the appropriate officials of each of the 
Departments of Defense and Veterans Affairs with 
responsibilities related to health care, have not taken full 
advantage of the opportunities provided by law to make their 
respective health resources available to health care 
beneficiaries of the other Department in order to provide 
improved health care for beneficiaries of both health systems.
      The conferees are disappointed that, after the many years 
of support and encouragement from Congress, the Departments 
have made little progress in health resource sharing and the 
intended results of the sharing authority have not been 
achieved. The conferees expect greater cooperation between the 
Departments in the future.

Reports

      The House bill contained a provision (sec. 729) that 
would require an interim report on the conduct of each program 
under the Department of Defense-Department of Veterans Affairs 
Health Resources Sharing and Performance Improvement Act of 
2002, an annual report on the use of waiver authorities, a 
pharmacy benefits report, and an annual report on the pilot 
program for graduate medical education.
      The Senate amendment contained no similar provision.
      The House recedes.
      The reports contained in this provision have been 
incorporated in a separate provision.

Restoration of previous policy regarding restrictions on use of 
        Department of Defense medical facilities

      The Senate amendment contained a provision (sec. 709) 
that would repeal the prohibition on using Department of 
Defense facilities for abortions.
      The House bill contained no similar provision.
      The Senate recedes.

Short title

      The House bill contained a provision (sec. 721) that 
would entitle Subtitle C of the House Bill the ``Department of 
Defense-Department of Veterans Affairs Health Resources Sharing 
and Performance Improvement Act of 2002.''
      The Senate amendment contained no similar provision.
      The House recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters


                     Legislative Provisions Adopted


             Subtitle A--Acquisition Policy and Management


Buy-to-budget acquisition of end items (sec. 801)

      The Senate amendment contained a provision (sec. 801) 
that would authorize the Department of Defense to make the best 
use of limited resources by acquiring a higher quantity of an 
end item than the number specified in an authorization or 
appropriations law or the accompanying report language.
      The House bill contained no similar provision.
      The House recedes with an amendment that would add a 
definition of the term ``end item'' and make certain technical 
changes to the provision.

Report to Congress on evolutionary acquisition of major defense 
        acquisition programs (sec. 802)

      The Senate amendment contained a provision (sec. 802) 
that would require the Secretary of Defense to submit to the 
congressional defense committees a report on how the Department 
of Defense plans to comply with applicable requirements of 
title 10, United States Code, and Department of Defense 
regulations when it conducts programs for the incremental 
acquisition of major systems.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the submission of a report on the application of such 
requirements to the evolutionary acquisition of major defense 
acquisition programs and make certain technical changes.

Spiral development under major defense acquisition programs (sec. 803)

      The Senate amendment contained a provision (sec. 803) 
that would authorize the Secretary of Defense to conduct a 
pilot program for the spiral development of major systems. 
Under the Senate provision, the Secretary would be required to 
issue guidance on how spiral development programs would be 
designed to meet key acquisition system objectives and to 
approve a spiral development plan for each spiral development 
program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
provide permanent authorization to conduct spiral development 
in lieu of a pilot program; (2) authorize the Secretary to 
delegate the approval of spiral development plans to designated 
officials; (3) limit the applicability of the provision to 
major defense acquisition programs; and (4) give the Secretary 
greater flexibility in developing guidance.

Improvement of software acquisition processes (sec. 804)

      The Senate amendment contained a provision (sec. 804) 
that would require the secretary of each military department 
and the head of each defense agency that manages a major 
defense acquisition program with a substantial software 
component to establish a program to improve its software 
acquisition processes.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Department of Defense to ensure that: (1) key program 
personnel have an appropriate level of experience or training 
in software acquisition; and (2) criteria used in the selection 
of sources for software provide appropriate emphasis on the 
past performance in developing and producing software and the 
maturity of the software products offered.

Performance goals for procuring services pursuant to multiple award 
        contracts (sec. 805)

      The Senate amendment contained a provision (sec. 811) 
that would establish annual goals for the Department of Defense 
(DOD) to increase the percentage of services purchases under 
multiple award contracts that are: (1) entered on the basis of 
competition with more than one offer received; and (2) 
performance-based with fixed prices for specific tasks to be 
performed.
      The House bill contained no similar provision.
      The House recedes with an amendment that would repeal 
goals established in the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107) for savings to be 
achieved through improved management of the Department's $50.0 
billion of services contracts. The conference amendment would 
also: (1) modify the goals for the competitive purchase of 
services under multiple award contracts to 40 percent for 
fiscal year 2003, 50 percent for fiscal year 2004, and 75 
percent for fiscal year 2011; and (2) modify the goals for 
performance-based purchases of services under such contracts to 
25 percent in fiscal year 2003, 35 percent in 2004, 50 percent 
in 2005, and 70 percent in 2011. The Secretary of Defense would 
be authorized to adjust any of these percentage goals upon a 
determination that such goal is too high and cannot reasonably 
be achieved.
      The conferees understand that the Department has been 
unable to develop a method for measuring savings achieved 
through the improved management of services contracts. The 
goals for competitive and performance-based services 
contracting established by the conference amendment would 
establish measurable benchmarks for the increased use of 
improved management approaches for services contracts.
      In the 1990's, the Office of Federal Procurement Policy 
(OFPP) conducted a government-wide, performance-based service 
contracting (PBSC) pilot program including 26 contracts from 15 
agencies with a combined award value of approximately $585.0 
million. OFPP found that, ``On average contract price decreased 
by 15% in nominal dollars after the introduction of PBSC. This 
does not consider that, absent the conversion to PBSC, 
additional inflation-related price increases of 16% could have 
been expected.''
      The report cautions that all elements of performance-
based contracting must be followed in order to achieve optimal 
success. According to the report, the minimum essential 
components of performance-based contracting include: 
performance requirements; measurable performance standards; 
government quality assurance plans based on measurements of the 
work against the performance standards; and incentives based on 
the quality assurance measurements. The conferees are aware of 
the significant effort that will be required to implement 
performance-based contracting on an extensive basis.
      The conferees also note that significant savings can be 
found where a non-technical cost type contract is converted to 
a fixed price performance-based contract. In addition, the 
Acting Inspector General of the Department of Defense testified 
in the mid-1990's that the first decade of implementation of 
the Competition in Contracting Act of 1984 (Public Law 98-396) 
had resulted in significant cost avoidance. On August 3, 1995, 
the Acting Inspector General testified that: ``While we have 
seen savings of 5 to over 90 percent from competition, 
typically competition results in price reductions of 15 to 30 
percent.'' The conferees believe that the Department should be 
able to achieve significant savings by meeting the performance 
goals established in this provision.

Rapid acquisition and deployment procedures (sec. 806)

      The House bill contained a provision (sec. 808) that 
would require the Secretary of Defense to develop procedures 
for the rapid acquisition and deployment of items that a 
commander of a unified combatant command urgently requires.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would give the 
Secretary greater flexibility in the development of the 
required procedures.

Quick-reaction special projects acquisition team (sec. 807)

      The House bill contained a provision (sec. 809) that 
would require the Secretary of Defense to establish a special 
projects acquisition team to examine and address issues 
affecting expeditious procurements.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
require that the quick reaction special projects acquisition 
team be established by the Under Secretary of Defense for 
Acquisition, Technology and Logistics; and (2) broaden the 
categories of issues to be addressed by the team.

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


Limitation period for task and delivery order contracts (sec. 811)

      The House bill contained a provision (sec. 803) that 
would amend sections 2304a and 2304b of title 10, United States 
Code, to limit the period of time for which task and delivery 
order contracts may be awarded to five years--the same time 
limitation that is applicable to other multiyear contracts.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 2306c of title 10, United States Code, to provide that 
multiyear task and delivery order contracts are subject to the 
same requirements as other multiyear contracts, including the 
five-year time limitation on such contracts. The amendment 
would also establish a preference for the award of a multiyear 
task and delivery order contract to more than one source to 
ensure competition for task orders and delivery orders 
throughout the period of the contract. Finally, the amendment 
would require the Comptroller General to review the contract 
term of existing single-award and multiple-award task and 
delivery order contracts (including any options or extensions 
available under such contracts).

One-year extension of program applying simplified procedures to certain 
        commercial items; report (sec. 812)

      The House bill contained a provision (sec. 804) that 
would extend for one year the pilot program established in 
section 4202 of the Clinger-Cohen Act of 1996 (divisions D and 
E of Public Law 104-106). The provision would also require the 
Secretary of Defense to report to Congress on the pilot 
program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
require a report by the Comptroller General instead of the 
Secretary of Defense; and (2) clarify the issues to be 
addressed in the report.

Extension and improvement of personnel demonstration policies and 
        procedures applicable to the civilian acquisition workforce 
        (sec. 813)

      The House bill contained a provision (sec. 806) that 
would require the Secretary of Defense to develop a plan for 
improving the policies and procedures applicable to the 
civilian acquisition workforce, based on the results of the 
demonstration project authorized by section 4308 of the 
Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 10 
U.S.C. 1706 note).
      The Senate amendment contained a provision (sec. 821) 
that would extend the demonstration project.
      The Senate recedes with an amendment that would extend 
the demonstration project.

Past performance given significant weight in renewal of procurement 
        technical assistance cooperative agreements (sec. 814)

      The House bill contained a provision (sec. 812) that 
would require the Secretary of Defense, to the maximum extent 
practicable, to renew without reduction in funding any 
procurement technical assistance cooperative agreement with an 
eligible entity that has performed successfully under an 
existing agreement.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary, in conducting a competition for the award of 
procurement technical assistance cooperative agreements, to 
give significant weight to successful past performance of 
eligible entities under existing agreements.

Increased maximum amount of assistance for tribal organizations or 
        economic enterprises carrying out procurement technical 
        assistance programs in two or more service areas (sec. 815)

      The Senate amendment contained a provision (sec. 828) 
that would increase from $300,000 to $600,000 the maximum 
amount of assistance for tribal organizations or economic 
enterprises carrying out procurement technical assistance 
programs in two or more service areas.
      The House bill contained no similar provision.
      The House recedes.

Extension of contract goal for small disadvantaged businesses and 
        certain institutions of higher education (sec. 816)

      The Senate amendment contained a provision (sec. 823) 
that would extend for three years the contract goal for small 
disadvantaged businesses and certain institutions of higher 
education.
      The House bill contained no similar provision.
      The House recedes.

Grants of exceptions to cost or pricing data certification requirements 
        and waivers of cost accounting standards (sec. 817)

      The Senate amendment contained a provision (sec. 812) 
that would require the Department of Defense (DOD) to issue 
guidance on grants of exceptions to cost or pricing data 
certification requirements and waivers of cost accounting 
standards. The provision would also require the Secretary of 
Defense to report to the congressional defense committees on 
certain exceptions to the Truth in Negotiations Act and waivers 
of the cost accounting standards.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
guidance to be issued on waivers and exceptions to ensure that 
DOD has the flexibility it needs to grant waivers and 
extensions when: (1) the property or services could not 
reasonably be obtained from the contractor or subcontractor 
without the grant of the exception or waiver; (2) the price can 
be determined to be a fair and reasonable price; and (3) there 
are demonstrated benefits from granting the waiver or 
exception. The conference amendment would also streamline the 
reporting requirements in the provision by requiring an annual 
report instead of a semiannual report and eliminating the 
requirement in the Senate bill for advance notice to Congress 
of certain waivers and exceptions.

Timing of certification in connection with waiver of survivability and 
        lethality testing requirements (sec. 818)

      The Senate amendment contained a provision (sec. 806) 
that would modify the authority of the Secretary of Defense to 
waive the requirement for survivability and lethality tests for 
major weapon programs in order to correspond with the revised 
acquisition milestones in the Department's new acquisition 
regulations.
      The House bill contained no similar provision.
      The House recedes.

Contracting with Federal Prison Industries (sec. 819)

      The House bill contained a provision (sec. 811) that 
would: (1) require the Secretary of Defense to use competitive 
procedures to acquire products or services from Federal Prison 
Industries (FPI); (2) clarify that a Department of Defense 
(DOD) contractor may not be required to use FPI as a 
subcontractor or supplier of products or services; and (3) 
prohibit the Department from entering any contract with FPI 
under which an inmate worker would have access to classified or 
sensitive information.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would modify 
the provision to ensure that it is consistent with the approach 
taken by section 811 of the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107), while reinforcing 
the requirement of that provision that DOD contracting 
officials shall have sole discretion to determine whether FPI 
products and services meet the Department's needs in terms of 
price, quality, and time of delivery.
      If DOD officials determine that an FPI product or service 
is not comparable to the best products or services available 
from the private sector, the Department is directed to purchase 
the product on a competitive basis. The requirement for 
competition under this section may be met by the award of a new 
contract on a competitive basis or through a purchase under an 
existing multiple award contract pursuant to competition 
requirements included in section 803 of the National Defense 
Authorization Act for Fiscal Year 2002 and other applicable 
provisions of law and regulation. In either case, the 
Department must consider a timely offer from FPI in accordance 
with the specifications and evaluation factors specified in the 
solicitation or other request for offers.

Revisions to multiyear contracting authority (sec. 820)

      The House bill contained a provision (sec. 141) that 
would amend section 2306b of title 10, United States Code, to 
clarify that: (1) funds available for a multiyear contract may 
be used only for the procurement of complete and usable end 
items; and (2) funds available for advance procurement may be 
used only for the procurement of long-lead items necessary to 
meet a planned delivery schedule for complete major end items.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the purchase of economic order quantities of long-lead items 
where authorized by law. The conference amendment would also 
clarify that nothing in the section authorizes the use of funds 
available under contracts awarded prior to the effective date 
of the provision for any purpose other than the purpose for 
which such funds were authorized and appropriated. 
Consequently, although the section would not apply to contracts 
awarded before the date of enactment, funds available under 
such contracts could not be used in a manner that would be 
inconsistent with the requirements of the section unless such 
funds were authorized and appropriated for such purposes.

       Subtitle C--Acquisition-Related Reports and Other Matters


Evaluation of training, knowledge, and resources regarding negotiation 
        of intellectual property arrangements (sec. 821)

      The House bill contained a provision (sec. 802) that 
would require the Secretary of Defense to evaluate the 
training, knowledge, and resources needed by the Department to 
effectively negotiate intellectual property rights.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Independent technology readiness assessments (sec. 822)

      The Senate amendment contained a provision (sec. 805) 
that would require the Department of Defense to explain any 
decision not to conduct an independent technology readiness 
assessment for a critical technology on a major defense 
acquisition program.
      The House bill contained no similar provision.
      The House recedes.

Extension and amendment of requirement for annual report on defense 
        commercial pricing management improvement (sec. 823)

      The Senate amendment contained a provision (sec. 813) 
that would extend the requirement that the Secretary of Defense 
submit to the congressional defense committees an annual report 
on price trend analyses for commercial items purchased by the 
Defense Logistics Agency (DLA) and the military departments.
      The House bill contained no similar provision.
      The House bill recedes with an amendment that would 
clarify the requirement for the Secretary of each military 
department and the Director of the DLA to conduct price trend 
analyses to identify and address any unreasonable escalation in 
prices paid for items procured by that military department or 
agency.

Assessment of purchases of products and services through contracts with 
        other Federal departments and agencies (sec. 824)

      The Senate amendment contained a provision (sec. 815) 
that would require the Secretary of Defense to carry out an 
assessment to determine the amount paid by the Department of 
Defense as fees for the acquisition of property and services 
under contracts entered by other federal departments and 
agencies and whether these amounts could be put to better use.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Department to consider both the costs and the benefits of 
using contracts entered by other federal departments and 
agencies.

Repeal of certain requirements and Comptroller General reviews of the 
        requirements (sec. 825)

      The Senate amendment contained a provision (sec. 825) 
that would repeal statutory requirements for review by the 
Comptroller General of programs conducted pursuant to certain 
legislative authority that has never been utilized.
      The House bill contained no similar provision.
      The House recedes with an amendment that would repeal the 
authority to conduct programs pursuant to these sections. The 
conferees have determined that the legislative authority 
provided by sections 912, 5312, and 5401 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106) has never been used and is not likely to be needed. For 
this reason, the conference amendment would repeal all three 
provisions.

Multiyear procurement authority for purchase of dinitrogen tetroxide, 
        hydrazine, and hydrazine-related products (sec. 826)

      The Senate amendment contained a provision (sec. 826) 
that would authorize the Secretary of Defense to enter into 
contracts for periods of up to 10 years for dinitrogen 
tetroxide, hydrazine, and hydrazine-related products.
      The House bill contained no similar provision.
      The House recedes.

Multiyear procurement authority for environmental services for military 
        installations (sec. 827)

      The Senate amendment contained a provision (sec. 827) 
that would authorize the use of multiyear contracts for the 
acquisition of environmental remediation services.
      The House bill contained no similar provision.
      The House recedes.

Report on effects of Army Contracting Agency (sec. 828)

      The Senate amendment contained a provision (sec. 830) 
that would require the Secretary of the Army to report to 
Congress on the effects of the establishment of an Army 
Contracting Agency on small business participation in Army 
procurements.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that the Army expects to eliminate 
approximately 200 unneeded positions as a result of this 
reorganization. The conferees direct the Secretary to review 
the Army's requirements for acquisition personnel--including 
shortcomings identified in Department of Defense Inspector 
General reports D-2000-088 (February 29, 2000) and D-2000-100 
(March 10, 2000)--and to determine whether some of the 
resources saved as a result of the reorganization should be 
reinvested to shape a more productive acquisition workforce for 
the future. The results of the Secretary's review should be 
forwarded to the congressional defense committees with the 
report required by this section.

Authorization to take actions to correct the industrial resource 
        shortfall for radiation-hardened electronics (sec. 829)

      The conference agreement includes a provision that would 
authorize the Department of Defense to take actions to correct 
the industrial resource shortfall for radiation-hardened 
electronics, notwithstanding the limitation in section 
303(a)(6)(C) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2093(a)(6)(C)), as long as such actions do not cause the 
aggregate outstanding amount of all such actions to exceed 
$106.0 million.

                   Legislative Provisions Not Adopted


Authority for nonprofit organizations to self-certify eligibility for 
        treatment as qualified organizations employing severely 
        disabled under Mentor-Protege Program

      The Senate amendment contained a provision (sec. 829) 
that would permit nonprofit organizations employing the 
severely disabled to self-certify their eligibility to 
participate in the Department of Defense Mentor-Protege 
Program.
      The House bill contained no similar provision.
      The Senate recedes.

Authority to make inflation adjustments to simplified acquisition 
        threshold

      The House bill contained a provision (sec. 805) that 
would authorize the Administrator of the Office of Federal 
Procurement Policy to adjust the simplified acquisition 
threshold every five years to account for inflation.
      The Senate amendment contained no similar provision.
      The House recedes.

Mentor-Protege Program eligibility for HUBZone small business concerns 
        and small business concerns owned and controlled by service-
        disabled veterans

      The Senate amendment contained a provision (sec. 824) 
that would add HUBZone small business concerns and small 
business concerns owned and controlled by service-disabled 
veterans to the list of organizations eligible to participate 
in the Mentor-Protege Program of the Department of Defense.
      The House bill contained no similar provision.
      The Senate recedes.

Modification of scope of ball and roller bearings covered for purposes 
        of procurement limitation

      The House bill contained a provision (sec. 807) that 
would expand a prohibition on the purchase of ball or roller 
bearings from sources outside the United States to cover 
unconventional or hybrid ball and roller bearings, cam follower 
bearings, ball screws, and other derivatives of ball and roller 
bearings.
      The Senate amendment contained no similar provision.
      The House recedes.

Moratorium on reduction of the defense acquisition and support 
        workforce

      The Senate amendment contained a provision (sec. 822) 
that would impose a moratorium on reductions in the defense 
acquisition and support workforce during fiscal years 2003, 
2004 and 2005.
      The House bill contained no similar provision.
      The Senate recedes.

Pilot program for transition to follow-on contracts for prototype 
        projects

      The Senate amendment contained a provision (sec. 816) 
that would establish a pilot program for the transition of 
prototype projects to follow-on production contracts.
      The House bill contained no similar provision.
      The Senate recedes.

Plan for acquisition management professional exchange pilot program

      The House bill contained a provision (sec. 801) that 
would require the Secretary of Defense to develop a plan for a 
pilot program for the exchange of acquisition management 
personnel between the Department of Defense and private sector 
organizations.
      The Senate amendment contained no similar provision.
      The House recedes.

Report on development of anticyberterrorism technology

      The House bill contained a provision (sec. 810) that 
would require the Secretary of Defense to submit a report to 
Congress on anticyberterrorism technology.
      The Senate amendment contained no similar provision.
      The House recedes.
      The material covered by the House provision would be 
addressed in a report on homeland security required elsewhere 
in the bill.

Waiver authority for domestic source or content requirements

      The Senate amendment contained a provision (sec. 817) 
that would authorize the Secretary of Defense to waive the 
application of statutory domestic source requirements and 
domestic content requirements in certain circumstances.
      The House bill contained no similar provision.
      The Senate recedes.

      Title IX--Department of Defense Organization and Management


                     Legislative Provisions Adopted


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


Under Secretary of Defense for Intelligence (sec. 901)

      The Senate amendment contained a provision (sec. 907) 
that would amend Chapter 4 of title 10, United States Code, to 
establish the position of Under Secretary of Defense for 
Intelligence.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make clear 
that the establishment of this new position does not supercede 
or modify the authorities of the Secretary of Defense and the 
Director of Central Intelligence as established by the National 
Security Act of 1947. It would also require the Secretary of 
Defense to submit a report to Congress within 90 days after 
enactment on the establishment of the position of Under 
Secretary of Defense for Intelligence, including mission, 
organizational structure, and relationships.

Reorganization of Office of Secretary of Defense for administration of 
        duties relating to homeland defense and combating terrorism 
        (sec. 902)

      The conferees agree to include a provision that would 
amend Chapter 4 of title 10, United States Code, to establish 
the position of Assistant Secretary of Defense for Homeland 
Defense; transfer the responsibility for the overall direction 
and supervision for policy, program planning and execution, and 
allocation of resources for the activities of the Department of 
Defense for combating terrorism to the Under Secretary of 
Defense for Policy; and repeal the contingent reduction in the 
number of assistant secretaries of defense.

                      Subtitle B--Space Activities


Oversight of acquisition for defense space programs (sec. 911)

      The Senate amendment contained a provision (sec. 133) 
that would require the Office of the Secretary of Defense to 
maintain oversight of acquisition for defense space programs. 
The provision would also require the Secretary of Defense to 
submit a detailed plan on how such oversight will be provided.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees understand that the Department of Defense 
is planning to change the way defense space programs are 
overseen in an effort to reduce the decision cycle time for 
these programs. The conferees believe that any changes to the 
oversight process should not detract from the ability of the 
Office of the Secretary of Defense and the Joint Requirements 
Oversight Council to provide meaningful oversight of space 
programs. The conferees also believe that because space 
programs are inherently joint programs, each of the military 
services should have a strong voice in space program 
acquisition decisions.
      The conferees note that the conference report 
accompanying the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107) discussed the ``virtual major 
force program (MFP)'' for space activities established by the 
Secretary of Defense and expressed the conferees' expectations 
that the virtual space MFP would be submitted along with the 
fiscal year 2003 budget. However, the virtual space MFP still 
has not been submitted.
      The conferees note that the virtual space MFP is an 
important tool for providing better visibility and insight into 
space programs and are disappointed that the Secretary of 
Defense has not yet submitted it to Congress. The conferees 
therefore direct the Secretary of Defense to submit the current 
version of the virtual MFP for space activities to the 
congressional defense and intelligence committees no later than 
January 15, 2003, and furthermore direct the Secretary of 
Defense to submit the virtual MFP for space activities along 
with the fiscal year 2004 budget request and all future budget 
requests.

Report regarding assured access to space for the United States (sec. 
        912)

      The Senate amendment contained a provision (sec. 136) 
that would set forth the sense of Congress that the Under 
Secretary of the Air Force should evaluate all options for 
sustaining the United States space launch industrial base, 
develop an integrated, adequately funded, long-range plan for 
access to space, and submit a report on that plan as soon as 
practicable. The provision also included a series of findings.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
findings portion of the provision and require the Secretary of 
Defense to evaluate options for sustaining the space launch 
industrial base; to develop an integrated, adequately funded, 
long-range plan for assuring access to space; and to submit a 
report to Congress on this plan.
      The conferees agree that providing assured reliable 
access to space is a vital national security interest of the 
United States. One of the critical elements of assured access 
to space is the Air Force Evolved Expendable Launch Vehicle 
(EELV) program. This program will be a new approach for the Air 
Force and the Department of Defense (DOD). Instead of buying 
individual rockets to launch space payloads, the Air Force and 
DOD will now buy launch services. The contractors supplying the 
launch services will also supply launches to commercial 
customers. The EELV program is intended to provide reliable, 
assured, launch services for a variety of payload types and 
weights, at reduced cost.
      Since the beginning of the EELV program, significant 
contraction in the commercial space launch market has eroded 
the overall viability of the United States space launch 
industrial base and could hamper the ability of DOD to provide 
assured access to space in the future. The continuing viability 
of the United States space launch industrial base is a critical 
element of any strategy to ensure the long-term ability of the 
United States to assure access to space. The Under Secretary of 
the Air Force, as acquisition executive for DOD space programs, 
has been authorized to develop a strategy to address United 
States space launch and other requirements to support assured 
access to space. This strategy should serve as the basis of the 
integrated, long- range, adequately funded plan for assured 
access to space that the Secretary of Defense is required to 
submit to Congress by March 1, 2003.

                          Subtitle C--Reports


Report on establishment of United States Northern Command (sec. 921)

      The House bill contained a provision (sec. 902) requiring 
the Secretary of Defense to submit to the congressional defense 
committees a report on an implementation plan for the United 
States Northern Command that addresses organizational, legal, 
diplomatic, budgetary, and personnel matters associated with 
the establishment of that command.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
the date by which the report must be submitted and clarifies 
the items to be addressed by the report.

Time for submittal of report on Quadrennial Defense Review (sec. 922)

      The House bill contained a provision (sec. 904) that 
would amend section 118 of title 10, United States Code, to 
change the submission date of the report on each quadrennial 
defense review to the Committees on Armed Services of the 
Senate and House of Representatives to the second year after a 
year divisible by four.
      The Senate amendment contained a similar provision (sec. 
901) that would change the submission date of the report from 
September 30 of the year in which the review is conducted to no 
later than the date in the following year on which the 
President submits the budget for the next fiscal year to 
Congress.
      The House recedes.

National defense mission of Coast Guard to be included in future 
        Quadrennial Defense Reviews (sec. 923)

      The House bill contained a provision (sec. 903) that 
would amend section 118(d) of title 10, United States Code, to 
require the Secretary of Defense to include the defense mission 
of the U.S. Coast Guard when conducting future Quadrennial 
Defense Reviews.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report on establishment of a Joint National Training Complex and joint 
        opposing forces (sec. 924)

      The House bill contained a provision (sec. 1015) that 
would require the Secretary of Defense to submit a report to 
the Committees on Armed Services of the Senate and House of 
Representatives that outlines a plan to develop and operate a 
Joint National Training Complex capable of supporting field 
exercises and experimentation at the operational level of war 
across a broad spectrum of adversary capabilities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would have the 
commander of the United States Joint Forces Command outline a 
plan that would provide for the development and implementation 
of a joint national training concept together with the 
establishment of a joint training complex for supporting the 
implementation of that concept. The Secretary of Defense would 
submit the report, together with any comments he considers 
appropriate and any comments that the Chairman of the Joint 
Chiefs of Staff considers appropriate.

                       Subtitle D--Other Matters


Authority to accept gifts for National Defense University (sec. 931)

      The House bill contained a provision (sec. 907) that 
would amend section 2605 of title 10, United States Code, to 
authorize the Secretary of Defense to accept gifts for the 
National Defense University in a manner similar to the 
authority to accept gifts for defense dependents' schools.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add a new 
section to Chapter 155 of title 10, United States Code, for 
this purpose; would specifically authorize the acceptance of 
gifts from an international organization and a foreign gift; 
and would make other clarifying amendments.

Western Hemisphere Institute for Security Cooperation (sec. 932)

      The Senate amendment contained a provision (sec. 905) 
that would amend section 2166 of title 10, United States Code, 
to authorize the Secretary of Defense to accept foreign gifts 
or donations of funds, materials, property, or services in 
order to defray the costs of, or enhance the operation of, the 
Western Hemisphere Institute for Security Cooperation. It would 
also provide that the Secretary's annual report to Congress on 
the Institute shall include a copy of the latest report of the 
Board of Visitors, together with any comment of the Secretary 
on the Board's report.
      The House bill contained no similar provision.
      The House recedes.

Conforming amendment to reflect disestablishment of Department of 
        Defense Consequence Management Program Information Office (sec. 
        933)

      The House bill contained a provision (sec. 906) that 
would amend section 12310 (c)(3) of title 10, United States 
Code, to strike a reference to the Department of Defense 
Consequence Management Program Integration Office (COMPIO). The 
provision reflects the fact that the Deputy Secretary of 
Defense disestablished COMPIO on February 14, 2001, directing 
that its functions be integrated into existing Department of 
Defense organizations and processes to ensure greater 
effectiveness and oversight of programs.
      The Senate amendment included an identical provision 
(sec. 1042) under a different title.
      The House recedes with an amendment modifying the title.

Increase in number of Deputy Commandants of the Marine Corps (sec. 934)

      The House bill contained a provision (sec. 501) that 
would increase the authorized number of deputy commandants at 
Headquarters, United States Marine Corps, from five to six.
      The Senate amendment contained an identical provision 
(sec. 902).
      The conference agreement includes this provision.

                   Legislative Provisions Not Adopted


Change in title of Secretary of the Navy to the Secretary of the Navy 
        and the Marine Corps

      The House bill contained a provision (sec. 901) that 
would redesignate the title of the Secretary of the Navy to the 
Secretary of the Navy and the Marine Corps.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees consider the proposal to change the title 
of the Secretary of the Navy to the Secretary of the Navy and 
Marine Corps a serious initiative deserving more study and 
deliberation, including hearings. While some misunderstandings 
may stem from the traditional reliance on the singular term 
``Navy'' to encompass all the sea services, the conferees 
consider it essential to consider additional factors and 
considerations, including historical antecedents. The conferees 
agree to provide maximum opportunities during the 108th 
Congress for interested individuals and groups to provide 
information and recommendations regarding this important issue.

Report on effect of operations other than war on combat readiness of 
        the Armed Forces

      The House bill contained a provision (sec. 905) requiring 
the Secretary of Defense to submit a report to the Committees 
on Armed Services of the Senate and House of Representatives on 
the effect of operations other than war on the combat readiness 
of the Armed Forces.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees understand that the Department of Defense 
(DOD) has initiated improvements to readiness reporting in the 
new Defense Readiness Reporting System (DRRS). The conferees 
expect that this system will provide greater visibility into 
the impact of all types of operations, including operations 
other than war, on the ability of U.S. forces to conduct their 
assigned missions. The conferees direct DOD, in implementing 
DRRS, to ensure that it captures readiness effects not only for 
forces that are directly engaged in operations, but also for 
those forces and units that are preparing to participate in or 
are re- training after recent deployments.
      The conferees also understand that DOD has commissioned, 
and continues to commission, studies by various groups and 
organizations on the broader effects of operational 
deployments, including their impact on recruiting, retention, 
and performance. Given the importance of these issues, the 
conferees expect that these reports will also be provided to 
the congressional defense committees.

                      Title X--General Provisions


Deferral of expenditures on financial management and feeder systems

      Section 1004 of the conference agreement accompanying the 
National Defense Authorization Act for Fiscal Year 2003 would 
require the Secretary of Defense to develop a financial 
management enterprise architecture and a transition plan for 
implementing that architecture. Under this provision, 
expenditures for financial management system improvements in 
excess of $1.0 million would be permitted only if the Under 
Secretary of Defense (Comptroller) determines that such 
expenditures are necessary to meet critical requirements or 
prevent significant adverse effects on projects needed to 
achieve essential capabilities.
      Titles I, II and III of the conference report include 
reductions totaling $400.0 million, in proportion to proposed 
spending on information technology development modernization 
for functional area applications in each account. The specific 
reductions reflected in these titles are as follows:
      Other Procurement, Army--$53.2 million;
      Other Procurement, Navy--$20.6 million;
      Other Procurement, Air Force--$12.0 million;
      Procurement, Marine Corps--$3.4 million;
      Other Procurement, Defense-wide--$3.5 million;
      Research and Development, Army--$17.7 million;
      Research and Development, Navy--$25.6 million;
      Research and Development, Air Force--$27.2 million;
      Research and Development, Defense-wide--36.6 million;
      Defense Health Programs--$32.1 million;
      Defense Working Capital Fund Operations--$148.6 million;
      Operation and Maintenance, Defense-wide--$19.5 million.
      The conferees expect the Department to achieve these 
reductions by implementing the requirements of section 1004 and 
restricting the development of Department of Defense business 
systems until the Department has completed its proposed 
architecture and transition plan and is in a position to ensure 
that business system expenditures will be consistent with that 
architecture and plan.
      The conferees note that section 1507 of the conference 
report would authorize the Secretary of Defense to transfer 
funds out of the contingency fund authorized by title XV to 
offset the reductions described above, in the event that the 
Secretary determines that the required savings are not 
achievable.

Drug interdiction and counterdrug activities

      The budget request included $998.7 million for drug 
interdiction and counterdrug activities of the Department of 
Defense, $848.9 million in the central transfer account and 
$149.8 million in the operating budgets of the military 
services for authorized counterdrug operations.
      The conferees agree to the following fiscal year 2003 
budget for the Department's counterdrug activities:

 Drug Interdiction and Counterdrug Activities, Central Transfer Account

         [In thousands of dollars; may not add due to rounding]

Fiscal Year 2003 Counterdrug Request..............................$848.9
  Increases:
        National Guard Support....................................  23.5
        National Guard C-26 Aircraft..............................   2.1
        Mexico Information Analysis Center........................   1.5
        Southwest Border Fence....................................   6.7
  Decreases:
        1404 DEA Support..........................................   1.3
        4208 Hemispheric Radar System.............................   5.0
        3348 TAGOS................................................  12.0
        1401 NIMA CD Support......................................    .5
        1102 ADNET................................................    .5
        2440 CMS..................................................   2.0
        9203 Mexico Training......................................   1.5
Fiscal Year 2003 Counterdrug Funding.............................. 859.9
Improved management of Department of Defense contracting for services
      Section 802 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107) established goals for 
improved management of the Department's $50.0 billion of 
services contracts. The conference report would repeal these 
statutory goals and establish new goals for the increased use 
of performance-based services contracts and competitive 
purchases of services under multiple award contracts.
      Titles I, II and III of the conference report 
accompanying the National Defense Authorization Act for Fiscal 
Year 2003 include reductions totaling $600.0 million, to be 
achieved through the implementation of the new statutory goals 
and other improvements in the management of services contracts. 
The specific reductions reflected in these titles are as 
follows:
      Aircraft Procurement, Army--$3.7 million;
      Missile Procurement, Army--$2.9 million;
      Procurement of Wheeled and Tactical Vehicles, Army--$4.0 
million;
      Procurement of Ammunition, Army--$2.0 million;
      Other Procurement, Army--$9.2 million;
      Aircraft Procurement, Navy--$5.7 million;
      Weapons Procurement, Navy--$2.3 million;
      Shipbuilding and Conversion, Navy--$5.7 million;
      Procurement of Ammunition, Navy & Marine Corps--$0.7 
million;
      Other Procurement, Navy--$3.0 million;
      Procurement, Marine Corps--$0.9 million;
      Other Procurement, Air Force--$1.5 million;
      Procurement, Defense-Wide--$1.1 million;
      Research and Development, Army--$9.7 million;
      Research and Development, Navy--$4.9 million;
      Research and Development, Air Force--$31.9 million;
      Research and Development, Defense-wide--$17.8 million;
      Operation and Maintenance, Army--$135.9 million;
      Operation and Maintenance, Navy--$107.5 million;
      Operation and Maintenance, Air Force--$149.2 million;
      Operation and Maintenance, Marine Corps--$11.5 million;
      Operation and Maintenance, Defense-wide--$90.0 million.
      The conferees expect the Department to distribute these 
reductions across budget activities and programs within the 
relevant appropriations accounts, based on the dollar value of 
contracts within those budget activities and programs to which 
improvements may be appropriately applied.
      The conferees note that section 1507 of the conference 
report would authorize the Secretary of Defense to transfer 
funds out of the contingency fund authorized by title XV to 
offset the reductions described above, in the event that the 
Secretary determines that the required savings are not 
achievable.

                     Legislative Provisions Adopted


                     Subtitle A--Financial Matters


Transfer authority (sec. 1001)

      The House bill contained a provision (sec. 1001) that 
would provide $2.0 billion in transfer authority among accounts 
in Division A of this Act for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
1001) that would provide $2.5 billion in transfer authority.
      The Senate recedes with an amendment that would provide 
$2.0 billion in transfer authority for fiscal year 2003 and 
would increase the transfer authority for fiscal year 2002 from 
$2.0 billion to $2.5 billion.

Authorization of supplemental appropriations for fiscal year 2002 (sec. 
        1002)

      The House bill contained a provision (sec. 1002) that 
would authorize supplemental appropriations for the Department 
of Defense and the national security activities of the 
Department of Energy for fiscal year 2002. The House bill would 
also require prior notification before funds were transferred 
from the Defense Emergency Response Fund (DERF) or other 
transfer accounts.
      The Senate amendment contained a similar provision (sec. 
1004).
      The Senate recedes with an amendment that would authorize 
supplemental appropriations for the Department of Defense and 
the national security activities of the Department of Energy 
for fiscal year 2002 contained in the 2002 Supplemental 
Appropriations Act for Further Recovery From and Response To 
Terrorist Attacks on the United States (Public Law 107-206) and 
would require a report on all Department of Defense transfers 
from the DERF or other transfer accounts during fiscal year 
2002.

United States contribution to NATO common-funded budgets in fiscal year 
        2003 (sec. 1003)

      The Senate amendment contained a provision (section 1005) 
that would authorize the U.S. contribution to NATO common-
funded budgets for fiscal year 2003, including the use of 
unexpended balances from prior years. The resolution of 
ratification for the Protocol to the North Atlantic Treaty of 
1949 on the Accession of Poland, Hungary and the Czech Republic 
contained a provision (section 3(2)(c)(ii)) requiring a 
specific authorization for U.S. payments to the common-funded 
budgets of NATO for each fiscal year, beginning in fiscal year 
1999, that payments exceed the fiscal year 1998 total.
      The House bill contained no similar provision.
      The House recedes.

Development and implementation of financial management enterprise 
        architecture (sec. 1004)

      The House bill contained a provision (sec. 1007) that 
would: (1) require the Secretary of Defense to submit a report 
to the congressional defense committees on the goals and 
objectives of the financial management modernization plan of 
the Department of Defense (DOD); and (2) require the approval 
of the DOD Comptroller prior to any new contract for the 
acquisition or upgrade of a financial management or feeder 
system.
      The Senate amendment contained a provision (sec. 1006) 
that would: (1) require the Secretary to develop a 
comprehensive financial management enterprise architecture for 
all DOD budgetary, accounting, finance and data systems; and 
(2) require the approval of the Financial Management 
Modernization Executive Committee for any significant 
expenditures on financial system improvements that would be 
inconsistent with the new architecture.
      The House recedes with an amendment that would: (1) 
extend the deadline for the development of the new enterprise 
architecture; (2) require the DOD Comptroller, rather than the 
Financial Management Modernization Executive Committee, to 
approve significant new expenditures; (3) repeal outdated 
reporting requirements and substitute a streamlined annual 
report on compliance with the new requirements; and (4) 
harmonize the language of the provision with existing guidance 
issued by DOD and the Office of Management and Budget.

Accountable officials in the Department of Defense (sec. 1005)

      The House bill contained a provision (sec. 1004) that 
would authorize the Secretary of Defense to designate certain 
Department of Defense employees and members of the Armed Forces 
as departmental accountable officials who could be held 
pecuniarily liable for illegal, improper, or incorrect payments 
when the official who certified payment relied on information 
provided through fault or negligence of the departmental 
accountable official.
      The Senate amendment contained a similar provision (sec. 
1007).
      The Senate recedes with a clarifying amendment.

Uniform standards throughout Department of Defense for exposure of 
        personnel to pecuniary liability for loss of Government 
        property (sec. 1006)

      The Senate amendment contained a provision (sec. 1008) 
that would authorize any officer of the Armed Forces or any 
civilian employee of the Department of Defense designated by 
regulation to act on reports of survey and vouchers pertaining 
to the loss, spoilage, unserviceability, unsuitability, 
destruction of, or damage to, property of the United States 
under the control of the Department of Defense.
      The House bill contained a similar provision (sec. 1003).
      The House recedes with a clarifying amendment.

Improvements in purchase card management (sec. 1007)

      The House bill contained a provision (sec. 1005) that 
would require the Secretary of Defense to prescribe regulations 
including safeguards and internal controls for the use of 
purchase cards by Department of Defense personnel.
      The Senate amendment contained a similar provision (sec. 
814).
      The Senate recedes with an amendment that would provide 
additional detail on required audits and purchase card 
policies. The amendment would also clarify that required 
training and reviews are to be conducted on a periodic basis, 
rather than an annual basis. The conferees direct the 
Department to conduct annual training and reviews in calendar 
years 2003 and 2004 but understand that less frequent training 
and reviews may be adequate to protect the Department's 
interests in subsequent years.
      The conferees direct the Comptroller General to review 
the actions that have been taken within the Department of 
Defense to comply with the requirements of this section and 
submit a report on those actions to the congressional defense 
committees no later than one year after the date of enactment 
of this Act.

Improvements in travel card management (sec. 1008)

      The Senate amendment contained a provision (sec. 1009) 
that would authorize direct payment to the issuer of a Defense 
travel card of official travel or transportation expenses 
charged on the Defense travel card by a Department of Defense 
employee or member.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
direct payment to the issuer of a Defense travel card of 
official travel or transportation expenses charged on the 
Defense travel card by a Department of Defense employee or 
member and by former employees of the Department of Defense and 
retired members of the Armed Forces who are receiving retired 
pay.

Clearance of certain transactions recorded in Treasury suspense 
        accounts and resolution of certain check issuance discrepancies 
        (sec. 1009)

      The Senate amendment contained a provision (sec. 1010) 
that would authorize the Department of Defense to cancel 
longstanding debit and credit transactions that cannot be 
cleared from the Department's books because they have been 
misrecorded to the wrong appropriation.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees direct the Comptroller General to review 
the Department's use of the authority provided by this section 
and report any findings and recommendations he may have to the 
congressional defense committees no later than six months after 
the date on which such authority expires.

Authorization of funds for ballistic missile defense programs or 
        combating terrorism programs of the Department of Defense (sec. 
        1010)

      The Senate amendment contained a provision (sec. 1011) 
that would authorize $814.3 million, the amount by which the 
Senate bill reduced funding for ballistic missile defense 
programs, for whichever of the following purposes the President 
determines to be in the national security interests of the 
United States:
      (1) Research, development, test and evaluation (RDT&E) of 
ballistic missile defense (BMD) programs of the Department of 
Defense (DOD); and
      (2) DOD activities for combating terrorism. The amendment 
would reduce the amount authorized to be appropriated for other 
defense programs by $814.3 million to reflect amounts that the 
Secretary of Defense determines unnecessary by reason of a 
revision of assumptions regarding inflation. The amendment 
would also specify that the top priority for the use of 
additional funds made available by a lower rate of inflation 
shall be combating terrorism.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
an additional $814.3 million to be available for RDT&E of BMD 
programs and activities of DOD to combat terrorism, whichever 
the President determines to be in the national security 
interests of the United States. The amendment would also 
require the Secretary of Defense to report to the congressional 
defense committees on the allocation of the funds pursuant to 
the President's determination and the basis for such 
determination.

Reduction in overall authorization due to inflation savings (sec. 1011)

      The Senate amendment contained a provision (sec. 1011) 
that would reduce the amount authorized to be appropriated to 
the Department of Defense by $814.3 million to reflect the 
reduced inflation estimates included in the Office of 
Management and Budget's 2002 mid-session review of the budget.
      The House bill contained no similar provision.
      The House recedes with an amendment that would reduce the 
amounts authorized to be appropriated for the operation and 
maintenance, procurement, and research and development accounts 
in this Act by $1.0 billion to reflect these inflation savings. 
The reductions would be allocated among the accounts in these 
titles to reflect the extent to which inflation savings are 
available in each account.
      The conferees direct the Secretary to ensure the 
allocation of any inflation reductions is included in the 
applicable base for reprogramming reports that the Department 
submits to Congress.

                Subtitle B--Naval Vessels and Shipyards


Number of Navy combatant surface vessels in active and reserve service 
        (sec. 1021)

      The Senate amendment contained a provision (sec. 1021) 
that would require the Secretary of the Navy to submit a report 
should the surface combatant ship active and reserve force drop 
below 116 ships. The provision would also require the Secretary 
to retain on the Naval Vessel Register a sufficient number of 
ships which could be reactivated within 120 days notice to 
provide a surge capability to regain the level of 116 surface 
combatants described in the 2001 Quadrennial Defense Review.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
incorporate the requirements of the Senate provision in title 
10, United States Code.

Annual long-range plan for the construction of naval vessels (sec. 
        1022)

      The Senate amendment contained a provision (sec. 1024) 
that would require the Secretary of Defense to submit, with the 
annual budget request, a 30-year shipbuilding plan.
      The section also included a number of findings, 
including:
            (1) Navy ships provide a forward presence for the 
        United States that is key to the national defense of 
        the United States.
            (2) The Navy has demonstrated that its ships 
        contribute significantly to homeland defense.
            (3) The Navy's ship recapitalization plan is 
        inadequate to maintain the ship force structure that is 
        described as the current force in the 2001 Quadrennial 
        Defense Review.
            (4) The Navy is decommissioning ships as much as 10 
        years earlier than the projected ship life upon which 
        ship replacement rates are based.
            (5) The current force was assessed in the 2001 
        Quadrennial Defense Review as having moderate to high 
        risk, depending on the scenario considered.
      The House bill contained no similar provision.
      The conferees agree with the findings included in the 
Senate provision.
      The House recedes with an amendment that would remove the 
findings from the provision but would support the required 
annual long-range plan.
Assessment of the feasibility of the expedited equipping of a Navy ship 
        with a version of the 155-millimeter Advanced Gun System (sec. 
        1023)
      The Senate amendment contained a provision (sec. 1022) 
that would require the Secretary of the Navy to submit a plan 
for fielding a 155-millimeter gun on a ship not later than the 
end of fiscal year 2006.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Navy to submit a feasibility assessment of fielding a 155-
millimeter gun on a ship not later than the end of fiscal year 
2006.
Report on initiatives to increase operational days of Navy ships (sec. 
        1024)
      The Senate amendment contained a provision (sec. 1023) 
that would require the Under Secretary of Defense for 
Acquisition, Technology, and Logistics to submit, to the 
Committees on Armed Services of the Senate and House of 
Representatives, a report on initiatives to increase the ship 
operational days available to regional combatant commanders 
without increasing the number of ships and without extending 
deployments.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the report include an assessment of how the Navy would 
conduct routine programmed ship maintenance for Navy ships that 
would remain in forward operating areas.
Ship combat system industrial base (sec. 1025)
      The House bill contained a provision (sec. 1030) that 
would require the Secretary of Defense to report to the 
congressional defense committees on the effect of the DD(X) 
contract award on the industrial base for ship combat system 
development, including ship systems integration, radar 
electronic warfare, launch systems, and other components.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Sense of Congress concerning aircraft carrier force structure (sec. 
        1026)
      The House bill contained a provision (sec. 1028) that 
would state the sense of Congress that there should be at least 
12 aircraft carriers.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Conveyance, Navy drydock, Portland, Oregon (sec. 1027)
      The House bill contained a provision (sec. 1025) that 
would authorize the Secretary of the Navy to sell a drydock in 
Portland, Oregon to Portland Shipyard, LLC for fair market 
value.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                     Subtitle C--Strategic Matters

Strategic force structure plan for nuclear weapons and delivery systems 
        (sec. 1031)
      The House bill contained a provision (sec. 1014) that 
would require the Secretaries of Defense and Energy to jointly 
prepare a baseline nuclear force structure plan for the period 
covered by, and consistent with, the Nuclear Posture Review 
submitted to Congress on January 8, 2002. The plan would 
include the warheads, weapon systems, and delivery vehicles 
required to execute the national defense strategy, as well as 
the infrastructure, modernization and life extension plans, and 
other elements of the defense program of the United States 
necessary to sustain that force structure. The section would 
require submission of a report to the congressional defense 
committees on the force structure and a budget plan to support 
that force structure by January 1, 2003, but would permit the 
President to defer submission of the report to a certain date 
should the President determine that it is in the national 
security interest of the United States to submit the report on 
a later date. Finally, the provision would require a report to 
be submitted to Congress by the Secretary of Energy on options 
for achieving, prior to fiscal year 2012, a posture under which 
the United States maintains no more than 1700-2200 deployed 
nuclear weapons and that would look at achieving such levels of 
such weapons in fiscal years 2006, 2008 and 2010.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add 
additional elements to and modify the scope of the report. The 
amendment would also require both the Secretary of Defense and 
Energy to evaluate the advantages and disadvantages of options 
to reduce the level of operationally deployed nuclear weapons 
to 1,700-2,200 warheads as early as 2007. While the Secretaries 
may choose the range of dates to be considered as options one 
of those options must be the achievement of the warhead goal of 
1,700-2,200 operationally deployed warheads by 2007. The 
provision would require the Secretaries to submit the report to 
the congressional defense committees no later than March 1, 
2003.
Annual report on weapons to defeat hardened and deeply buried targets 
        (sec. 1032)
      The Senate amendment contained a provision (sec. 1032) 
that would require the Secretary of Defense, in conjunction 
with the Secretary of Energy and the Director of Central 
Intelligence, to submit an annual report on the research and 
development activities under their respective jurisdictions 
during the preceding fiscal year to develop a weapon to defeat 
hardened and deeply buried targets. The report would be 
submitted no later than April 1 of each year.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
report to include procurement and other activities undertaken 
to develop a weapon to defeat hardened and deeply buried 
targets. In addition, the activities of the defense agencies 
would be specifically included in the report, and the reporting 
requirement would be limited to five years.
      The conferees are concerned that substantial amounts of 
money are being spent for a wide variety of hardened and deeply 
buried target-related activities within the defense and 
intelligence communities and that these many programs are not 
sufficiently coordinated. The conferees believe this report 
will be useful to ensure that the hardened and deeply buried 
target challenge is addressed in a coordinated way to meet 
established requirements and that the funds are spent 
efficiently.
Report on effects of nuclear earth-penetrator weapon and other weapons 
        (sec. 1033)
      The House bill contained a provision (sec. 1018) that 
would direct the Secretary of Defense to request the National 
Academy of Sciences to conduct a study and prepare a report on 
the short and long-term effects on the surrounding civilian 
populations: (1) of the use by the United States of a nuclear 
earth penetrator weapon on a target; (2) of the use of a non-
penetrating nuclear weapon on a hard or deeply buried target; 
and (3) of the use of a conventional high-explosive weapon on 
facilities to store and produce weapons of mass destruction 
when the involved materials or contaminants are released into 
populated areas. The report would be required to be submitted 
to Congress no later than 180 days after the day of enactment 
of this Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

                          Subtitle D--Reports

Repeal and modification of various reporting requirements applicable to 
        the Department of Defense (sec. 1041)
      The House bill contained a provision (sec. 1016) that 
would repeal or modify a number of obsolete or superceded 
reporting requirements presently imposed by statute upon the 
Department of Defense.
      The Senate amendment contained a similar provision (sec. 
1031).
      The conferees agree to repeal or modify 22 reports 
currently required of the Department.
Requirement that Department of Defense reports to Congress be 
        accompanied by electronic version (sec. 1042)
      The House bill contained a provision (sec. 1013) that 
would require the Department of Defense to submit to Congress 
electronic versions of all unclassified reports that are 
required by law.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Annual report on the conduct of military operations conducted as part 
        of Operation Enduring Freedom (sec. 1043)
      The House bill contained a provision (sec. 1011) that 
would require the Secretary of Defense, in consultation with 
the Chairman of the Joint Chiefs of Staff, the Commander in 
Chief of the United States Central Command, and the Director of 
Central Intelligence, to submit to the Committees on Armed 
Services of the Senate and House of Representatives, the Select 
Committee on Intelligence of the Senate, and the Permanent 
Select Committee on Intelligence of the House two reports on 
the accomplishments and shortcomings of the conduct of military 
operations conducted as part of Operation Enduring Freedom. 
Each report would specifically include a discussion of the 
command, control, coordination and support relationship between 
United States Special Operations Forces and Central 
Intelligence Agency elements participating in the operation and 
recommendations to improve operational readiness and 
effectiveness. The first report would be required by June 15, 
2003, and the final report would be required no later than 180 
days after the cessation of hostilities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to also submit annual reports by June 
15 of each year, require the Secretary to include a definition 
of the military operations carried out as part of Operation 
Enduring Freedom, maintain as special matters to be included 
the discussion relating to special operations forces and 
recommendations for improvement, and add a number of other 
matters to be addressed in each report.
Report on efforts to ensure adequacy of fire fighting staffs at 
        military installations (sec. 1044)
      The Senate amendment contained a provision (sec. 1036) 
that would require a report to Congress on the adequacy of fire 
fighting staffs at military installations.
      The House bill contained no similar provision.
      The House recedes.
Report on designation of certain Louisiana highway as Defense Access 
        Road (sec. 1045)
      The Senate amendment contained a provision (sec. 1037) 
that would direct the Secretary of the Army to submit a report 
to the congressional defense committees on the advisability of 
designating Louisiana Highway 28 as a defense access road.
      The House bill contained no similar provision.
      The House recedes.

             Subtitle E--Extension of Expiring Authorities

Extension of authority for Secretary of Defense to sell aircraft and 
        aircraft parts for use in responding to oil spills (sec. 1051)
      The Senate amendment contained a provision (sec. 1063) 
that would extend for four years the authority for the 
Secretary of Defense to sell aircraft and aircraft parts for 
use in responding to oil spills.
      The House bill contained no similar provision.
      The House recedes.
Six-month extension of expiring Governmentwide information security 
        requirements; continued applicability of expiring 
        Governmentwide information security requirements to the 
        Department of Defense (sec. 1052)
      The Senate amendment contained a provision (sec. 1061) 
that would make expiring governmentwide information security 
requirements permanent with regard to the Department of Defense 
(DOD).
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
extend for two years the applicability of the expiring 
requirements to DOD; and (2) extend for six months the 
applicability of these requirements to other federal agencies.
Two-year extension of authority of the Secretary of Defense to engage 
        in commercial activities as security for intelligence 
        collection activities abroad (sec. 1053)
      The Senate amendment contained a provision (sec. 347) 
that would amend section 431(a) of title 10, United States 
Code, to extend the authority of the Secretary of Defense to 
engage in commercial activities as security for intelligence 
collection activities abroad until December 31, 2004.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle F--Other Matters

Time for transmittal of annual defense authorization legislative 
        proposal (sec. 1061)
      The House bill contained a provision (sec. 1022) that 
would require the Secretary of Defense to transmit to Congress 
the annual defense authorization legislative proposal for a 
fiscal year within 30 days of the date the President transmits 
to Congress the budget for that fiscal year.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Technical and clerical amendments (sec. 1062)
      The House bill contained a provision (sec. 1023) that 
would make technical and clerical amendments.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment making additional 
technical and clerical amendments.
Use for law enforcement purposes of DNA samples maintained by 
        Department of Defense for identification of human remains (sec. 
        1063)
      The House bill contained a provision (sec. 1027) that 
would require the Department of Defense to comply with a valid 
order of a Federal court or military judge to provide DNA 
samples for law enforcement purposes.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Enhanced authority to obtain foreign language services during periods 
        of emergency (sec. 1064)
      The House bill contained a provision (sec. 1029) that 
would authorize the Secretary of Defense to establish and 
maintain a secure data registry of individuals who volunteer to 
provide linguistic services in times of emergency to assist the 
Department of Defense and other departments and agencies of the 
U.S. Government with translation and interpretation in 
languages designated as critical by the Secretary.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Rewards for assistance in combating terrorism (sec. 1065)
      The Senate amendment contained a provision (sec. 1067) 
that would add a new section to chapter 3 of title 10, United 
States Code, to authorize the Secretary of Defense to pay a 
monetary reward, in an amount not to exceed $200,000, to a 
person for providing U.S. personnel with information or 
nonlethal assistance that is beneficial to an operation of the 
Armed Forces outside the United States against international 
terrorism or to force protection of the Armed Forces. The 
policies and procedures for offering and paying rewards would 
be coordinated with the Secretary of State and the Attorney 
General. The authority could be delegated to the commander of a 
combatant command to pay a reward in an amount not to exceed 
$50,000, and the combatant commander could further delegate 
such authority to pay rewards in an amount not to exceed 
$2,500.
      The House bill contained no similar provision.
      The House recedes with an amendment that would also 
authorize the payment of in-kind as well as monetary rewards, 
authorize rewards for assistance to an activity as well as an 
operation of the Armed Forces outside the United States, 
provide for delegation to the Deputy Secretary and an Under 
Secretary of Defense, and other clarifying amendments.
Provision of space and services to military welfare societies (sec. 
        1066)
      The Senate amendment contained a provision (sec. 1068) 
that would allow the secretaries of the military departments to 
provide space and services to military welfare societies 
without charge.
      The House bill contained no similar provision.
      The House recedes.
Prevention and mitigation of corrosion of military equipment and 
        infrastructure (sec. 1067)
      The Senate amendment contained a provision (sec. 904) 
that would require the Secretary of Defense to designate a 
senior official in the Department of Defense (DOD) to be 
responsible for developing corrosion prevention and mitigation 
policies, reviewing the services' budgets to ensure adequate 
resources are being devoted to anti-corrosion efforts, and 
ensuring that anti- corrosion technologies and treatments are 
considered and inserted at appropriate points in the life cycle 
of both facilities and military equipment. The provision would 
further require DOD to develop a long-term strategy to increase 
the emphasis on corrosion prevention, establish common criteria 
for the military services when testing and evaluating new 
technologies, share useful information across DOD stovepipes, 
and coordinate a research and development plan to help 
transition new technologies into operational systems and 
current facilities.
      The House bill contained no similar provision.
      The House recedes with an amendment that allows the 
Secretary of Defense to designate a senior official or a 
standing board or committee to oversee DOD's corrosion-related 
activities. The amendment also reduces the reporting 
requirements, although the conferees encourage DOD to take 
steps to improve the amount and quality of data available on 
the resources required to fight corrosion of military equipment 
and facilities.
      The conferees firmly believe that DOD can improve its 
management and coordination of anti-corrosion policies, 
regulations, and programs, and that these improvements result 
in greater efficiency and enhanced readiness and quality of 
life for service members. The conferees, therefore, urge DOD to 
act quickly to implement this provision.
Transfer of historic DF-9E Panther Aircraft to Women Airforce Service 
        Pilots Museum (sec. 1068)
      The Senate amendment contained a provision (sec. 1066) 
that would allow the Secretary of the Navy to convey a DF-9E 
Panther aircraft to the Women Airforce Service Pilots (WASP) 
Museum.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment to specify 
that the aircraft would be in a non-flyable condition.
Increase in amount authorized to be expended for Department of Defense 
        program to commemorate 50th anniversary of the Korean War (sec. 
        1069)
      The conference agreement includes a provision (sec. 1069) 
that would increase the amount authorized for expenditures by 
the Korean War Commemorative Committee from $7.0 million to 
$10.0 million.

                   Legislative Provisions Not Adopted

Assignment of members to assist Immigration and Naturalization Service 
        and Customs Service
      The House bill contained a provision (sec. 1033) that 
would amend chapter 18 of title 10, United States Code, to 
authorize the Secretary of Defense to assign members of the 
Army, Navy, Marine Corps, and Air Force to assist the 
Immigration and Naturalization Service in preventing the entry 
of terrorists, drug traffickers, and illegal aliens into the 
United States, and to assist the Customs Service in the 
inspection of cargo, vehicles, and aircraft at points of entry 
into the United States to prevent the entry of weapons of mass 
destruction, components of such weapons, prohibited narcotics 
or drugs, or other terrorist or drug trafficking items. Such 
assignment could take place only at the request of the Attorney 
General or the Secretary of the Treasury, respectively. A 
member so assigned could not make an arrest or perform a 
search, seizure, or similar law enforcement activity.
      The Senate amendment contained no similar provision.
      The House recedes.
Authority to transfer funds within a major acquisition program from 
        Procurement to Research, Development, Test and Evaluation
      The House bill contained a provision (sec. 1006) that 
would provide the Secretary of Defense limited authority to 
transfer funds from Procurement to Research, Development, Test, 
and Evaluation for the same acquisition program.
      The Senate amendment contained no similar provision.
      The House recedes.
Availability of amounts for Oregon Army National Guard for search and 
        rescue and medical evacuation missions in adverse weather 
        conditions
      The Senate amendment contained a provision (sec. 1012) 
that would authorize $3.0 million to upgrade three UH-60L 
Blackhawk helicopters of the Oregon Army National Guard to 
improve their utility in search and rescue (SAR) and medical 
evacuation missions. The provision further authorized $1.8 
million for up to 26 additional military personnel to perform 
these missions.
      The House bill contained no similar provision.
      The Senate recedes on the provision. The Army aircraft 
procurement table contained in this report describes the 
conference agreement for helicopter upgrades to improve SAR 
capabilities.
Charter grant to Korean War Veterans Association
      The Senate amendment contained a provision (sec. 1070) 
that would grant a federal charter to the Korean War Veterans 
Association, Incorporated.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees' decision reflects the agreement contained 
in the statement of managers accompanying sections 1501 through 
1516 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85) that, ``in the future, amendments to 
the National Defense Authorization Bill that would grant a 
federal charter should not be included in a conference 
agreement unless favorably recommended by the committees of 
jurisdiction.''
Enhanced cooperation between United States and Russian Federation to 
        promote mutual security
      The House bill contained a provision (sec. 1031) that 
would state that it is the policy of the United States to 
pursue greater cooperation with the Russian Federation 
regarding nuclear weapons policy, force structure, safeguards, 
testing, and proliferation prevention, as well as nuclear 
weapons infrastructure, production, and dismantlement, so as to 
promote mutual security, stability, and trust. The provision 
would also set forth a sense of Congress that the President of 
the United States should continue to engage the President of 
the Russian Federation in the interest of preventing illicit 
use, theft, diversion, and proliferation of nuclear weapons. 
The provision would encourage a series of reciprocal programs 
of joint visits and conferences dealing with nuclear weapons, 
ballistic missile defenses, nonproliferation, disposition of 
weapons grade nuclear materials and spent reactor fuel. The 
provision would also require the President to submit a report 
to Congress on the status and description of the various 
actions to develop such programs with the Russian Federation 
and the response of the Russian Federation, as well as an 
assessment of the Russian Federation's commitment to a better, 
closer relationship with the United States based on the 
principles of increased cooperation and transparency.
      The Senate amendment contained no similar provision.
      The House recedes.
Homeland security activities of the National Guard
      The Senate amendment contained a provision (sec. 1041) 
that would amend title 32, United States Code, to authorize the 
Governor of a State, at the request of a federal law 
enforcement agency and with the concurrence of the Secretary of 
Defense, to order personnel of the National Guard of a State to 
perform full-time National Guard duty for the purpose of 
carrying out homeland security activities. Such personnel would 
be provided for a limited time until the agency could recruit 
and train sufficient personnel to perform these activities. The 
Secretary of Defense would provide funds to the Governor to 
fund the costs of the National Guard personnel and would be 
reimbursed by the agency receiving the support. The activities 
would be provided pursuant to a memorandum of understanding 
between the Secretary of Defense and the Governor.
      The House bill contained no similar provision.
      The Senate recedes.
Limitation on duration of future Department of Defense reporting 
        requirements
      The House bill contained a provision (sec. 1020) that 
would automatically sunset recurring congressional defense 
reporting requirements after five years.
      The Senate amendment contained no similar provision.
      The House recedes.
Reallocation of authorizations of appropriations from ballistic missile 
        defense to shipbuilding
      The Senate amendment contained a provision (sec. 1002) 
that would transfer funding from ballistic missile defense 
programs to shipbuilding programs.
      The House bill contained no similar provision.
      The Senate recedes.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.
Report on biological weapons defense and counterproliferation
      The House bill contained a provision (sec. 1012) that 
would require a report on U.S. biological weapons defense and 
counterproliferation programs, including information on 
impediments to the biological weapons counterproliferation 
efforts.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees have addressed the issue of information 
about impediments to U.S. biological counterproliferation 
efforts in a separate section that is described elsewhere in 
this report.
Report on effects of nuclear-tipped ballistic missile interceptors and 
        nuclear missiles not intercepted
      The House bill contained a provision (sec. 1019) that 
would direct the Secretary of Defense to request the National 
Academy of Sciences to study and report on the effects of the 
use of a nuclear-tipped interceptor and the effects on a major 
U.S. city of the detonation of a nuclear weapon delivered by a 
ballistic missile.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Congress on maintenance of a reliable, flexible, and robust 
        strategic deterrent
      The House bill contained a provision (sec. 1021) that 
would set forth a sense of Congress that the President should 
maintain a reliable, flexible, and robust strategic deterrent 
consistent with the national defense strategy outlined in the 
Quadrennial Defense Review, the Nuclear Posture Review, and the 
global strategic environment.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Congress on prohibition of use of funds for International 
        Criminal Court
      The House bill contained a provision (sec. 1034) that 
would prohibit the use of funds appropriated pursuant to 
authorizations of appropriations in this Act for any assistance 
to, cooperation with, or support for the International Criminal 
Court.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that, subsequent to passage of the 
House bill, the President signed legislation making 
supplemental appropriations for fiscal year 2002 (Public Law 
107-206). That legislation contained the American 
Servicemembers' Protection Act of 2002, which protects United 
States military personnel and other elected and appointed 
officials of the United States Government against criminal 
prosecution by the International Criminal Court. Accordingly, 
the House provision is no longer necessary.
Transfer of funds to increase amounts for PAC-3 missile procurement and 
        Israeli Arrow program
      The House bill contained a provision (sec. 1032) that 
would transfer funding to the PAC-3 and Arrow programs from 
other Missile Defense Agency programs.
      The Senate amendment contained no similar provision.
      The House recedes.
      By convention, outcomes of funding differences between 
the House bill and the Senate amendment are included in the 
tables elsewhere in this report.
Utah Test and Training Range
      Title XIV of the House bill contained a series of 
provisions that would designate certain lands in Utah around 
the Utah Test and Training Range (UTTR) as wilderness areas. 
Low level military overflights, special use airspace 
designations, installation of electronic equipment, and 
emergency access would be unrestricted in these wilderness 
areas. Title XIV would also prohibit the Secretary of the 
Interior from developing or revising certain land use plans in 
Utah without the prior concurrence of the Secretary of the Air 
Force and the State of Utah.
      The Senate amendment contained no similar provision.
      The House recedes.
War risk insurance for vessels in support of NATO-approved operations
      The House bill contained a provision (sec. 1024) that 
would authorize the Secretary of Transportation to provide war 
risk insurance to a commercial vessel that is supporting a 
shared logistics military operation approved by the North 
Atlantic Council. This section would also authorize the 
Secretary of Transportation, with the concurrence of the 
Secretary of State, to seek from another nation a commitment to 
indemnify the United States for any amounts paid by the United 
States for claims against such insurance.
      The Senate amendment contained no similar provision.
      The House recedes.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

Eligibility of Department of Defense nonappropriated fund employees for 
        long-term care insurance (sec. 1101)
      The House bill contained a provision (sec. 1101) that 
would permit nonappropriated fund employees of the Department 
of Defense to participate in the employee-funded federal long-
term care insurance program.
      The Senate amendment contained a similar provision (sec. 
1104).
      The Senate recedes.
Extension of Department of Defense authority to make lump-sum severance 
        payments (sec. 1102)
      The House bill contained a provision (sec. 1102) that 
would extend from September 30, 2003 to September 30, 2006, the 
authority of the Secretary of Defense to pay lump-sum severance 
payments to civilian employees. The provision would also 
require the President to report to Congress whether this 
authority should be made permanent or extended to other federal 
agencies.
      The Senate amendment contained a similar provision (sec. 
1101).
      The Senate recedes with an amendment specifying the 
congressional committees to whom the report must be submitted.
Continuation of Federal Employee Health Benefits Program eligibility 
        (sec. 1103)
      The House bill contained a provision (sec. 1104) that 
would extend for three years eligibility for continued health 
care coverage under the Federal Employee Health Benefits 
Program of certain Department of Defense civilian employees who 
are separated due to a reduction in force.
      The Senate amendment contained a similar provision (sec. 
1103).
      The Senate recedes.
Certification for Department of Defense professional accounting 
        positions (sec. 1104)
      The House bill contained a provision (sec. 1106) that 
would authorize the Secretary of Defense to prescribe 
professional certification and credential standards for 
professional accounting positions.
      The Senate amendment contained a similar provision (sec. 
1106).
      The Senate recedes.

                   Legislative Provisions Not Adopted

Common occupational and health standards for differential payments as a 
        consequence of exposure to asbestos
      The House bill contained a provision (sec. 1103) that 
would establish a common standard for payment of environmental 
differential pay for exposure to asbestos for prevailing rate 
and general schedule federal employees.
      The Senate amendment contained no similar provision.
      The House recedes.
      Currently, general schedule employees are entitled to 
eight percent differential pay when working conditions result 
in exposure to asbestos exceeding the permissible exposure 
limits established by the Occupational Safety and Health 
Administration. The existing environmental differential pay for 
wage-grade employees also entitles them to the same eight 
percent differential pay but does not set an objective measure 
for determining the level of asbestos exposure necessary to 
qualify for environmental differential pay. This has led to 
inconsistent application of environmental differential pay.
      The conferees remain concerned that this issue was not 
addressed as directed in the statement of managers accompanying 
the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107). The conferees encourage the Federal 
Prevailing Rate Advisory Committee (FPRAC) to continue its 
review of this issue, which provides a forum for interested 
parties. The conferees expect the FPRAC to consider adoption of 
a consistent, objective means of measuring asbestos exposure 
for federal prevailing rate and general schedule employees that 
addresses the actual risk of asbestos exposure based on 
scientific and empirical data.
Extension of voluntary separation incentive pay authority
      The Senate amendment contained a provision (sec. 1102) 
that would extend from September 30, 2003, to September 30, 
2006, the authority of the Secretary of Defense to pay 
voluntary separation incentive pay to civilian employees.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees were unable to include this provision 
because of the lack of an adequate mandatory funding 
allocation.
      The conferees are well aware of a potential human capital 
crisis facing the Federal Government and its impact on the 
Department of Defense. The conferees know that the Department 
has developed a human resources strategic plan designed to 
provide a roadmap to the future and has aggressively 
implemented many civilian personnel demonstration authorities 
granted by Congress. However, these steps alone may not be 
sufficient to meet the demand for new hires and to accommodate 
the reshaping necessary to transform the Department. The 
conferees encourage the Department to use existing authorities 
to the fullest extent possible.
      In order to address this potential human capital crisis, 
the conferees direct the Secretary of Defense to review the 
human resources strategic plan and the existing civilian 
personnel demonstration authorities and, no later than March 
31, 2003, provide to the Committees on Armed Services of the 
Senate and House of Representatives, the Committee on 
Government Affairs of the Senate, and the Committee on 
Government Reform and Oversight of the House of Representatives 
an assessment of the effectiveness of these authorities and 
recommend any legislative changes necessary to effectively and 
efficiently manage the civilian employees of the Department of 
Defense.
Increased maximum period of appointment under the experimental 
        personnel program for scientific and technical personnel
      The Senate amendment contained a provision (sec. 1105) 
that would extend the maximum period of appointment under an 
experimental personnel program for scientific and technical 
personnel.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees recognize the importance of offering a 
competitive retirement benefit in order to recruit and retain 
highly qualified employees for these temporary positions. The 
conferees also recognize, however, that the benefit, which is 
defined by the Federal Employees Retirement System, is not 
portable and is therefore not likely to be attractive to many 
qualified individuals, particularly those in the early and 
middle stages of their careers. Therefore, the conferees direct 
the Secretary of Defense to study alternative retirement 
proposals, including a fully portable, defined contribution 
plan or, where appropriate, to permit employees in these 
positions to continue to participate in non-federal retirement 
plans. The results of the study and any such legislative 
proposal as the Secretary deems appropriate shall be submitted 
to Congress as part of the annual report on the program that is 
required by section 1101 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261).
Triennial full-scale federal wage system wage surveys
      The House bill contained a provision (sec. 1105) that 
would change the full-scale federal wage system wage survey 
cycle conducted by the Office of Personnel Management from two 
to three years.
      The Senate amendment contained no similar provision.
      The House recedes.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

Authority to provide administrative services and support for coalition 
        liaison officers (sec. 1201)
      The House bill contained a provision (sec. 1203) that 
would authorize the Secretary of Defense and the secretaries of 
the military departments to provide administrative services and 
support to foreign liaison officers performing duties, through 
the Department of Defense Foreign Liaison Officer Program, at 
military facilities in the United States.
      The Senate amendment contained a provision (sec. 1211) 
that would authorize the Secretary of Defense to provide 
administrative support and services to coalition liaison 
officers while they are temporarily assigned to the 
headquarters of a combatant command, component command, or 
subordinate operational command in connection with the planning 
for, or conduct of, a coalition operation. The Secretary would 
also be authorized to pay the travel, subsistence, and 
personnel expenses of a liaison officer of a developing country 
in connection with the assignment of that liaison officer to 
the headquarters of a combatant command if the assignment is 
requested by the commander of the combatant command.
      The House recedes with an amendment that would limit the 
payment of personal expenses for a liaison officer from a 
developing country to those which are directly necessary to 
carry out the duties of that officer in connection with the 
assignment, provide for the authority under this section to 
expire on September 30, 2005, and require the Comptroller 
General to submit a report to the Committees on Armed Services 
of the Senate and House of Representatives by March 1, 2005, on 
the implementation of this authority.
Authority to pay for certain travel of defense personnel of countries 
        participating in NATO Partnership for Peace program (sec. 1202)
      The Senate amendment contained a provision (sec. 1212) 
that would amend section 1051 of title 10, United States Code, 
to authorize the Secretary of Defense to pay for the travel-
related expenses of defense personnel from a developing country 
participating in the North Atlantic Treaty Organization's 
(NATO) Partnership for Peace (PfP) program to the territory of 
any of the countries participating in the PfP program or of any 
of the NATO member countries.
      The House bill contained no similar provision.
      The House recedes with an amendment clarifying that the 
authority is limited to developing countries that are 
participating in PfP but are not members of NATO.
Limitation on funding for Joint Data Exchange Center in Moscow (sec. 
        1203)
      The House bill contained a provision (sec. 1205) that 
would prohibit obligation or expenditure of more than 50 
percent of the funds authorized for fiscal year 2003 for 
activities associated with the Joint Data Exchange Center 
(JDEC) in Moscow, Russia, until: (1) the United States and the 
Russian Federation enter into a cost-sharing agreement as 
required by section 1231 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (Public Law 106-
398); (2) the United States and the Russian Federation enter 
into an agreement exempting the United States from Russian 
taxes and liability laws for activities associated with the 
JDEC; and (3) 30 days have elapsed after the Secretary of 
Defense submits to the Committees on Armed Services of the 
Senate and the House or Representatives, the Committee on 
Foreign Relations of the Senate, and the Committee on 
International Relations of the House of Representatives, a copy 
of each required agreement.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees continue to support activities to improve 
transparency and build confidence and cooperation between the 
United States and the Russian Federation and believe the JDEC 
will make an important contribution to these efforts. The 
conferees urge the Secretary of Defense to work diligently to 
obtain agreement or agreements with the Russian Federation that 
meet the requirements of section 1231.
Support of United Nations-sponsored efforts to inspect and monitor 
        Iraqi weapons activities (sec. 1204)
      The House bill contained a provision (sec. 1201) that 
would extend the authority under section 1505 of the Weapons of 
Mass Destruction Control Act of 1992, section 5859a of title 
22, United States Code, for the Department of Defense to expend 
up to $15.0 million in fiscal year 2003 in support of United 
Nations-sponsored inspection and monitoring efforts to ensure 
Iraqi compliance with its international obligations to destroy 
its weapons of mass destruction programs and associated 
delivery systems.
      The Senate amendment contained an identical provision 
(sec. 1213).
      The conference agreement includes this provision.
Comprehensive annual report to Congress on coordination and integration 
        of all United States non-proliferation activities (sec. 1205)
      The Senate amendment contained a provision (sec. 3162) 
that would amend section 1205 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107), 
which directed the President to submit a report on a plan to 
secure nuclear weapons, material, and expertise in the states 
of the Former Soviet Union, to require an annual update on the 
status of implementing the plan.
      The House bill contained no similar provision.
      The House recedes.
Report requirement regarding Russian proliferation to Iran and other 
        countries of proliferation concern (sec. 1206)
      The House bill contained a provision (sec. 1306) that 
would express the sense of Congress about the seriousness of 
Russian proliferation assistance to the weapons of mass 
destruction programs of Iran and other countries. The provision 
would also require an annual report beginning in 2003 and 
continuing through 2009, describing in detail such assistance 
and its consequences and the efforts of the United States to 
defend against and end such proliferation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
an annual report beginning in 2003 and continuing through 2009, 
describing in detail Russian proliferation of weapons of mass 
destruction and ballistic missile goods, technology, expertise 
and information, and of related dual-use items, to Iran and 
other countries of proliferation concern during the preceding 
year. The report would describe the impact and consequences of 
such proliferation and the efforts of the United States to halt 
such proliferation.
      The conferees note that this provision is intended to 
apply to prohibited acts of proliferation assistance.
Monitoring of implementation of 1979 agreement between the United 
        States and China on cooperation in science and technology (sec. 
        1207)
      The Senate amendment included a provision (sec. 1216) 
that would require the Office of Science and Technology 
Cooperation of the Department of State to monitor the 
implementation of the 1979 United States-China Agreement on 
Cooperation in Science and Technology (S&T) and its protocols. 
The amendment would require the Office of S&T Cooperation to 
submit a biennial report on the activities conducted under this 
agreement and the benefits of this agreement to the Chinese 
economy, military, and defense industrial base.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the President to establish a working group to monitor the 
Agreement and directs the Director of Central Intelligence, the 
Secretary of Defense, and the Inspector General of the Commerce 
Department to conduct various assessments that would be 
components of the biennial report. The conferees continue to 
support the numerous mutually beneficial exchanges that occur 
under the auspices of the Agreement.
Extension of certain counterproliferation activities and programs (sec. 
        1208)
      The Senate amendment contained a provision (sec. 1033) 
that would extend the date of submission of the annual report 
on counterproliferation activities and programs from February 1 
to May 1 of each year.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
service of the interagency Counterproliferation Program Review 
Committee through September 2008. It would also require that 
the annual report include a discussion of the limitations on 
and impediments to the biological weapons counterproliferation 
efforts of the Department of Defense and include 
recommendations for ways to make such efforts more effective.
Semiannual report by Director of Central Intelligence on contributions 
        by foreign persons to efforts of countries of proliferation 
        concern to obtain weapons of mass destruction and their 
        delivery systems (sec. 1209)
      The Senate amendment contained a provision (sec. 1040) 
that would require biannual reports to Congress by the 
President on foreign persons that make a material contribution 
to the development of weapons of mass destruction or missiles 
by a country of proliferation concern.
      The House bill contained no similar provision.
      The House recedes with an amendment that would conform 
and add the provision to Title VII of the Combating Weapons of 
Mass Destruction Act of 1996 (Public Law 104-293). The first 
report required under this provision would be due no later than 
January 1, 2004.
Report on feasibility and advisability of senior officer exchanges 
        between the Armed Forces of the United States and the military 
        forces of Taiwan (sec. 1210)
      The House bill included a provision (sec. 1202) which 
directed the Secretary of Defense to prepare and implement a 
plan for conducting joint operational training for and 
exchanges of senior officers between the Armed Forces of the 
United States and the Armed Forces of Taiwan. The Secretary 
would submit this plan to Congress at least 30 days before 
commencing with its implementation.
      The Senate amendment included no similar provision.
      The Senate recedes with an amendment requiring the 
President to submit to Congress a report on the feasibility and 
advisability of conducting combined operational training with, 
and exchanges of general and flag officers between, the Armed 
Forces of the United States and the military forces of Taiwan 
and a discussion of the progress being made on meeting U.S. 
commitments to the security of Taiwan.
Report on United States force structure in the Pacific (sec. 1211)
      The conferees agree to include a provision which directs 
the Secretary of Defense to submit to Congress a report on the 
Department of Defense's plans to maintain adequate force 
structure in the Pacific theater. The report would be submitted 
no later than 180 days after the date of enactment of this Act.

                   Legislative Provisions Not Adopted

Additional countries covered by loan guarantee program
      The House bill contained a provision (sec. 1204) that 
would amend section 2540(b) of title 10, United States Code, to 
authorize the Secretary of Defense, in consultation with the 
Secretary of State, to expand the list of countries eligible 
under the Defense Export Loan Guarantee Program.
      The Senate amendment contained no similar provision.
      The House recedes.
Arctic and Western Pacific Environmental Cooperation Program
      The Senate amendment contained a provision (sec. 1214) 
that would authorize the Secretary of Defense to conduct a 
cooperative program with countries in the Arctic and Western 
Pacific regions. The Secretary, with the concurrence of the 
Secretary of State, would be authorized to provide cooperative 
assistance or provide assistance on environmental matters in 
the Arctic and Pacific regions with certain exceptions. The 
primary focus of the program would be technology projects and 
activities related to radiological threats and contamination. 
To reflect this focus, the provision would limit the 
availability of program funds to no more than 20 percent of 
such funds on non-radiological matters. The provision would 
also require the Secretary to submit an annual report on the 
program that would include a discussion of the activities, the 
funding, the life-cycle costs of any projects, the 
participants, and any contributions from other agencies or 
countries.
      The House bill contained no similar provision.
      The Senate recedes.
Department of Defense HIV/AIDS Prevention Assistance Program
      The Senate amendment contained a provision (sec. 1215) 
that would authorize the Secretary of Defense to expand the 
existing program of HIV/AIDS prevention education activities 
undertaken in connection with the conduct of U.S. military 
training, exercises, and humanitarian assistance in sub-Saharan 
Africa, to countries that are suffering a public health crisis 
relating to HIV/AIDS and that participate in the military-to-
military contacts program of the Department of Defense. The 
activities would focus, to the extent possible, on military 
units that participate in peacekeeping operations and would 
include HIV/AIDS-related voluntary counseling and testing and 
HIV/AIDS-related surveillance.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the Department of Defense has 
extensive authorities in title 10, United States Code, relating 
to military-to-military contacts and comparable activities, 
humanitarian and civic assistance provided in conjunction with 
military operations, and other similar activities. The 
conferees take this action without prejudice and invite the 
Secretary of Defense to submit a legislative proposal for any 
additional authorities that he needs in this area.
Limitation on number of military personnel in Colombia
      The House bill contained a provision (sec. 1206) that 
would prohibit the use of funds available to the Department of 
Defense to support or maintain more than 500 members of the 
Armed Forces on duty in the Republic of Colombia at any one 
time. Members in Colombia for no more than 30 days for the 
purpose of rescuing or retrieving U.S. military or civilian 
Government personnel, members assigned to the security 
assistance office or to the Marine Corps security contingent at 
the Embassy, members participating in relief efforts to respond 
to a natural disaster, nonoperational transient military 
personnel, and members making a ship port call, would all be 
excluded from the 500 member limitation. The Secretary of 
Defense would have the authority to waive the limitation if he 
determines that such waiver is in the national security 
interest.
      The Senate amendment contained no similar provision.
      The House recedes.
Russian tactical nuclear weapons
      The Senate amendment contained a provision (sec. 1205) 
that would set forth findings with respect to the potential 
threats posed by unsecured Russian tactical nuclear weapons. 
The provision would also set forth the sense of the Senate that 
stolen Russian tactical nuclear weapons could be used against 
the United States, that it should be a priority of the United 
States to account for, secure, and reduce the number of Russian 
tactical nuclear weapons and materials, and that the threat 
warrants a special nonproliferation initiative. The provision 
would also require the President to submit a report to Congress 
30 days after the date of enactment of this Act on efforts, 
including establishing a special initiative, to reduce the 
threats from Russian tactical nuclear weapons.
      The House bill contained no similar provision.
      The Senate recedes.

  Title XIII--Cooperative Threat Reduction with States of the Former 
                              Soviet Union

                       Items of Special Interest

Weapons of Mass Destruction Proliferation Prevention Program of the 
        Cooperative Threat Reduction program with the States of the 
        Former Soviet Union
      The Department of Defense (DOD) requested $40.0 million 
in the fiscal year 2003 budget request to initiate a new 
program within the Cooperative Threat Reduction (CTR) program 
called the Weapons of Mass Destruction Proliferation Prevention 
Program. The program would provide CTR assistance to enhance 
the capability of non-Russian Former Soviet Union (FSU) 
military, internal security forces, border guards, and customs 
forces to prevent, deter, detect and interdict unauthorized 
movement of weapons of mass destruction or related materials 
across borders and to respond effectively to terrorist 
incidents at borders. While the conferees support this new 
effort, the conferees are concerned that there may be potential 
for duplication of effort with other similar programs within 
DOD as well as with the Department of Energy's National Nuclear 
Security Administration (NNSA) FSU activities.
      The conferees urge DOD to coordinate this new CTR program 
with all existing programs within DOD, the NNSA, the Department 
of State, the U.S. Customs Service, the Federal Bureau of 
Investigation, and the U.S. Coast Guard. The conferees expect 
DOD to coordinate with the NNSA in the area of weapons of mass 
destruction detection technology. The conferees direct DOD to 
report to the congressional defense committees, no later than 
December 31, 2002, the results of this coordination. The 
conferees expect DOD to present a plan, coordinated with the 
Department of State, the Administrator of the NNSA, and the 
other federal agencies, that describes how this new program 
will complement and enhance, rather than duplicate, any similar 
ongoing effort in any other federal agency and the interagency 
process for coordinating these programs in the future.

                     Legislative Provisions Adopted

Specification of Cooperative Threat Reduction programs and funds (sec. 
        1301)
      The House bill contained a provision (sec. 1301) that 
would define the programs and funds that are Cooperative Threat 
Reduction (CTR) programs and funds and specify that CTR funds 
shall remain available for obligation for three fiscal years.
      The Senate amendment contained an identical provision 
(sec. 1201).
      The conferees agree to include the provision.
Funding allocations (sec. 1302)
      The House bill contained a provision (sec. 1302) that 
would authorize $416.7 million for the Cooperative Threat 
Reduction (CTR) program and would allocate the funds among the 
various program activities. In addition, the provision would 
provide limited authority to vary the amounts allocated to 
individual program activities including a requirement that for 
certain CTR program activities, the amount obligated for those 
program activities may not exceed 115 percent of the amount 
allocated. The provision would also allow $83.6 million of the 
funds authorized to be used either for activities related to 
strategic and nuclear systems or for destruction of chemical 
weapons in Russia and Ukraine.
      The Senate amendment contained a similar provision (sec. 
1202) that would authorize $416.7 million for the CTR program 
and allocate the funds among the various program activities.
      The Senate recedes with an amendment that would authorize 
$417.6 million for the CTR program, modify certain of the 
allocations among the CTR program activities, and increase the 
limitation on obligation to 125 percent of the amount 
authorized.
Prohibition against use of funds until submission of reports (sec. 
        1303)
      The House bill contained a provision (sec. 1303) that 
would prohibit obligation or expenditure of all fiscal year 
2003 Cooperative Threat Reduction (CTR) funds until 30 days 
after two reports are submitted.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
expenditure or obligation of 50 percent of the fiscal year 2003 
CTR funds until 30 days after the required reports have been 
submitted to Congress.
Report on use of revenue generated by activities carried out under 
        Cooperative Threat Reduction programs (sec. 1304)
      The House bill contained two provisions (secs. 1304 and 
1309) that would establish additional reporting requirements 
for the Cooperative Threat Reduction (CTR) program. Section 
1304 would amend the annual CTR reporting requirement in 
section 1308(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398) to 
add a description of how revenue generated by activities 
carried out under the CTR program are utilized, monitored, and 
accounted for. Section 1309 would require the Secretary of 
Defense to submit a new stand-alone report describing in detail 
the operation and success of activities carried out by the 
defense and military contacts element of the CTR program. 
Section 1309 would also prohibit obligation or expenditure of 
more than 50 percent of the CTR funds allocated for defense and 
military contacts until such report is submitted to Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would combine 
both reporting requirements into a single provision that would 
amend section 1308(c) to include both reports as elements of 
the annual CTR report. The amendment would delete the funding 
prohibition. The new reporting requirements would be included 
in the annual report for fiscal year 2003, that would be 
submitted in 2004.
Prohibition against use of funds for second wing of fissile materials 
        storage facility (sec. 1305)
      The House bill contained a provision (sec. 1305) that 
would prohibit any funds appropriated for the Cooperative 
Threat Reduction program from being used for design, planning, 
or construction of a second wing for a storage facility for 
storing Russian fissile material.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Limited waiver of restrictions on use of funds for threat reduction in 
        states of the former Soviet Union (sec. 1306)
      The Senate amendment contained a provision (sec. 1204) 
that would provide the President with permanent authority to 
waive the annual certifications required for both the 
Cooperative Threat Reduction (CTR) programs and the Freedom 
Support Act nonproliferation programs, as requested by the 
administration. The provision would amend section 1203 of the 
Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) and 
section 502 of the Freedom Support Act (22 U.S.C. 5852) and 
provide the President the authority to waive the restrictions 
in any given fiscal year for any given country if such a waiver 
is important to the national security interests of the United 
States.
      If the President chooses to exercise the waiver for 
either the Cooperative Threat Reduction Act or Freedom Support 
Act preconditions, this waiver would be effective only when the 
President submits to Congress a report describing the activity 
or activities that prevent the President from making the 
certification or certifications required by the Act and the 
strategy, plan, or policy of the President to promote the 
relevant State's future commitment to the preconditions.
      The House bill contained a similar provision (sec. 1308) 
but would allow the waiver authority only for the certification 
required by section 1203(d)(5) of the Cooperative Threat 
Reduction Act, which states Russia is committed to complying 
with all relevant arms control agreements. The waiver authority 
would be available until September 30, 2005.
      The House recedes with an amendment that would limit the 
authority to grant an annual waiver to three fiscal years.

                   Legislative Provisions Not Adopted

Prohibition against use of Cooperative Threat Reduction funds outside 
        the States of the former Soviet Union
      The House bill contained a provision (sec. 1307) that 
would prohibit the use of Cooperative Threat Reduction (CTR) 
funds for any fiscal year for any projects or activities 
outside the States of the Former Soviet Union (FSU).
      The Senate amendment contained a provision (sec. 1203) 
that would authorize the use of CTR funds for threat reduction 
activities outside the States of the FSU under certain 
circumstances and with certain restrictions.
      The conferees agree to drop both provisions.
      The conferees recognize that the President periodically 
determines that it is necessary for the United States 
Government to address an emergency proliferation threat from 
weapons of mass destruction (WMD) outside of the States of the 
FSU that would affect the national security interests of the 
United States.
      Therefore the conferees direct the Secretary of Defense 
to conduct a review of the authorities currently available to 
the United States Government to be able to respond to any 
emergency WMD proliferation threat. In this review the 
Secretary should identify any prohibition, impediment, or 
limitation imposed by any statute, order, regulation, or policy 
that would limit or prevent a Unites States Government 
response, including a response by the Secretary of Defense. In 
reviewing the authorities available to the Department of 
Defense (DOD) these should include situations when DOD response 
is in a support role to another federal agency or is the lead 
federal agency. The review should also include an explanation 
of the Department's role in the interagency process.
      The Secretary is directed to submit a report to the 
congressional defense committees that would set forth the 
results of this review and invited to submit a legislative 
proposal to remedy shortcomings in his existing authority. This 
report shall be due no later than March 1, 2003.

                      Title XIV--Homeland Security

                     Legislative Provisions Adopted

Transfer of technology items and equipment in support of homeland 
        security (sec. 1401)
      The House bill contained a provision (sec. 142) that 
would authorize the Secretary of Defense to enter into an 
agreement with an independent, non-profit, technology-oriented 
entity to facilitate technology transfer of promising defense 
technologies to aid the homeland security efforts of federal, 
state and local ``first responders''.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to designate a senior official of the 
Department of Defense to coordinate the Department's efforts to 
identify, evaluate, deploy, and transfer technology items to 
first responders in support of homeland security. The 
conference amendment would require the senior official to work 
with other appropriate federal agencies and to use competitive 
procedures to enter into an agreement with a highly qualified 
private sector entity to assist in these efforts.
      The conferees expect the Department to work with the new 
Department of Homeland Security, if such an agency is 
established, in any effort to transfer homeland security 
technologies to first responders. The conferees also anticipate 
that the Department of Defense will give appropriate 
consideration to standards developed by the Inter-Agency Board 
for Equipment Standardization and Interoperability when it 
works to identify and evaluate new homeland security 
technologies.
Comprehensive plan for improving the preparedness of military 
        installations for terrorist incidents (sec. 1402)
      The Senate amendment contained a provision (sec. 1045) 
that would direct the Secretary of Defense to develop a 
comprehensive plan to improve the preparedness of military 
installations for incidents involving weapons of mass 
destruction (WMD). The Secretary would submit the plan to the 
congressional defense committees no later than 180 days after 
this legislation comes into effect. No later than 60 days after 
the Secretary submits the plan to Congress, the Comptroller 
General would be required to review it and submit a report 
assessing the plan to the congressional defense committees. The 
Secretary would be directed to inform Congress of progress 
under and updates to the plan for a total of three years.
      The House bill contained no such provision.
      The House recedes with an amendment to change the 
provision so that the plan would address preparedness of 
military installations for terrorist incidents, not limited to 
those involving weapons of mass destruction.
Additional Weapons of Mass Destruction Civil Support Teams (sec. 1403)
      The House bill contained a provision (sec. 1551) that 
would direct the Secretary of Defense to establish at least one 
Weapons of Mass Destruction Civil Support Team (WMD CST) in 
each state and territory. The Secretary would be required to 
ensure that this provision is fully implemented by September 
30, 2003.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment directing the 
Secretary to establish 23 additional teams, one for each state 
and territory, and requiring the Secretary to submit to 
Congress within six months of enactment of this Act a report 
including his plan for establishing these teams. The report 
would include a schedule and budget for manning, training, and 
equipping the new teams as rapidly as possible without 
jeopardizing the attainment of full effectiveness by the teams. 
The report would also include a discussion of whether the 
mission of the teams should be expanded, and if so, how.
Report on the role of the Department of Defense in supporting homeland 
        security (sec. 1404)
      The House bill contained a provision (sec. 1017) 
requiring the Secretary of Defense to submit to the 
congressional defense committees a report on Department of 
Defense (DOD) responsibilities, missions, and plans for 
military support of homeland security.
      The Senate amendment contained a provision (sec. 1044) 
requiring the Secretary to submit a detailed report on how DOD 
should be fulfilling and is fulfilling its homeland defense 
mission.
      The Senate recedes with an amendment that would combine 
the report requirements outlined in these provisions.
Sense of Congress on Department of Defense assistance to local first 
        responders (sec. 1405)
      The House bill contained a provision (sec. 1553) that 
would express the sense of Congress that the Secretary of 
Defense should, to the extent that the Secretary determines 
appropriate, use funds provided in the Act to assist, train, 
and equip local fire and police departments that would act as 
first responders to domestic terrorist incidents that may come 
about in connection with the continued fight to prosecute the 
war on terrorism.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment stating that, to the 
extent the Secretary considers appropriate and feasible and in 
accordance with the law, the Secretary should provide 
assistance to entities that are local first responders for 
domestic terrorist incidents and assist those entities in 
improving their capabilities to respond to such incidents.

                   Legislative Provisions Not Adopted

Additional weapons of mass destruction civil support teams
      The House bill contained a provision (sec. 1026) that 
would express the sense of Congress that the Secretary of 
Defense should establish at least one Weapons of Mass 
Destruction Civil Support Team (WMD CST) in each state and 
territory.
      The Senate amendment contained no similar provision.
      The House recedes.

   Title XV--Authorization of Appropriations for the War on Terrorism

                     Legislative Provisions Adopted

Authorization of appropriations for continued operations for the war on 
        terrorism (secs. 1501-1508)
      Title XV of the House bill contained a series of 
provisions that would authorize $10.0 billion to continue the 
war on terrorism. The House bill would provide $3.5 billion for 
a war on terrorism operations fund, $1.0 billion for an 
equipment replacement and enhancement fund, $200.0 million for 
additional munitions purchases, and $2.0 billion for classified 
programs. The House bill would also authorize, within the $10.0 
billion total, approximately $3.1 billion for programs for 
which funds were requested elsewhere in the fiscal year 2003 
budget request, including the Defense Emergency Response Fund. 
The House bill would also provide additional funding for 
enhanced military personnel benefits that were contained in 
that title.
      Section 1003 of the Senate amendment would authorize the 
appropriation of $10.0 billion for continuing the war on 
terrorism, as requested in the President's budget, contingent 
on the submission of a subsequent request by the President that 
identified a proposed allocation and plan for the use of these 
funds.
      On July 3, 2002, the President submitted a budget 
amendment that proposed to allocate $2.5 billion of the $10.0 
billion requested to military personnel and mobilization costs, 
$5.3 billion to the cost of military operations, $2.0 billion 
for classified programs, and $200.0 million for additional 
munitions.
      The Senate recedes with an amendment that would authorize 
$10.0 billion for the conduct of Operation Noble Eagle and 
Operation Enduring Freedom to continue the war on terrorism in 
accordance with the conditions stated in the Authorization for 
Use of Military Force (Public Law 107-40). The conferees agree 
to authorize $10.0 billion that would be available for transfer 
to the normal budget accounts of the Department of Defense for 
the following purposes: $2.5 billion for mobilization and other 
military personnel costs; $4.3 billion for the operating costs 
of military operations; $1.0 billion for equipment replacement 
and enhancement of military capabilities; $2.0 billion for 
classified programs; and $200.0 million for additional 
munitions. Funding would be available for the specific 
munitions programs identified in the July 3, 2002, budget 
amendment as follows:
                                                   [Dollars in millions]
Army..........................................................     $94.0
    Procurement of Ammunition, Army:
        5.56 mm--all types (training).........................      15.0
        .50-caliber--all types (training).....................       5.0
        105 mm HE recapitalization............................       5.0
        155 mm M795...........................................      20.0
        MACS..................................................      20.0
        Fuze M762.............................................       5.0
        105 mm illumination round.............................       5.0
        120 mm mortar high explosive multi-option fuze........      10.0
        25mm M919 for Bradley.................................       9.0
Navy..........................................................      60.0
    Weapons Procurement, Navy:
        AGM 114M Hellfire missiles............................      35.0
    Procurement of Ammunition, Navy and Marine Corps:
        General purpose bomb components.......................      25.0
Air Force.....................................................      40.0
    Procurement of Ammunition, Air Force:
        General purpose bomb components.......................      40.0
Special Operations Command....................................       6.0
    Procurement, Defnese-wide:
        Special Operations Forces Munitions...................       6.0
                    --------------------------------------------------------------
                    ____________________________________________________

            Total.............................................     200.0

      The conferees agree to require prior notification to the 
congressional defense committees before funds are transferred 
to the normal budget accounts for obligation.
      The conferees further agree to allow the Secretary of 
Defense to transfer up to $1.0 billion of the amount authorized 
in section 1501 to authorizations that were reduced in Titles 
I, II, and III to reflect savings to be achieved through the 
improved management of the Department's contracts for services 
and the deferral of expenditures on financial management 
systems, if the Secretary determines that such savings are not 
achievable. This provision would give the Secretary discretion 
to either: (1) achieve $1.0 billion of savings through 
management efficiencies as provided in Titles I, II and III; or 
(2) transfer up to $1.0 billion out of the contingency fund in 
lieu of achieving such savings.

                   Legislative Provisions Not Adopted

Air Force procurement
      The House bill contained a provision (sec. 1523) that 
would authorize $383.2 million for specific Air Force 
procurement programs in support of the war against terrorism.
      The Senate amendment contained no similar provision, but 
the Senate amendment would authorize funding for these and 
other procurement activities in Title I.
      The House recedes.
      The conferees agree to authorize funding for these 
activities in Title I of this Act.
Army procurement
      The House bill contained a provision (sec. 1521) that 
would authorize $104.7 million for the Army for ammunition and 
other procurement.
      The Senate amendment contained no similar provision, but 
the Senate amendment would authorize funding for these and 
other Army procurement activities in Title I.
      The House recedes.
      The conferees agree to authorize funding for these 
activities in Title I of this Act.
Authority for joint task forces to provide support to law enforcement 
        agencies conducting counter-terrorism activities
      The House bill contained a provision (sec. 1552) that 
would authorize a joint task force of the Department of Defense 
that provides support to law enforcement agencies conducting 
counterdrug activities to also provide, consistent with all 
applicable laws and regulations, support to law enforcement 
agencies conducting counterterrorism activities.
      The Senate amendment contained no similar provision.
      The House recedes.
Authorized military construction and land acquisition projects
      The House bill contained a provision (sec. 1531) that 
would authorize $35.1 million for the construction of 
facilities in Qatar; Naval Station Guantanamo Bay, Cuba; Naval 
Station Rota, Spain; and Bolling Air Force Base, District of 
Columbia.
      The Senate amendment contained no similar provision, but 
Division B of the Senate amendment contained funding for these 
projects in the military construction accounts of the military 
departments.
      The House recedes.
      The conferees include funding for these projects in the 
military construction authorizations in Division B of this Act.
Defense-Wide Activities procurement
      The House bill contained a provision (sec. 1524) that 
would authorize $620.4 million for Defense-wide procurement.
      The Senate amendment contained no similar provision, but 
the Senate amendment would authorize funding for these and 
other Defense-wide procurement activities in Title I.
      The House recedes.
      The conferees agree to authorize funding for these 
activities in Title I of this Act.
Effective date
      The House bill contained a provision (sec. 1547) that 
would establish effective dates for the wartime pay and 
allowance increases proposed in this Title.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in amount of death gratuity
      The House bill contained a provision (sec. 1546) that 
would increase the death gratuity from $6,000 to $12,000.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in rate for career enlisted flyer incentive pay
      The House bill contained a provision (sec. 1545) that 
would increase the rate for career enlisted flyer incentive pay 
by $50 per month for each category of recipient based on years 
of service completed.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in rate for diving duty special pay
      The House bill contained a provision (sec. 1543) that 
would increase the rate for diving duty special pay for 
officers from $240 per month to $290 per month and for enlisted 
members from $340 per month to $390 per month.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in rate for family separation allowance
      The House bill contained a provision (sec. 1541) that 
would increase the rate for family separation allowance from 
$100 per month to $125 per month.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in rate for imminent danger pay
      The House bill contained a provision (sec. 1544) that 
would increase the rate for imminent danger pay from $150 to 
$250 per month.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in rates for various hazardous duty incentive pays
      The House bill contained a provision (sec. 1542) that 
would increase the rates for various hazardous duty incentive 
pays by $50 per month.
      The Senate amendment contained no similar provision.
      The House recedes.
Military personnel
      The House bill contained a provision (sec. 1529) that 
would authorize $503.1 million for military personnel for the 
conduct of operations in continuation of the war on terrorism.
      The Senate amendment contained no similar provision.
      The House recedes.
Navy and Marine Corps procurement
      The House bill contained a provision (sec. 1522) that 
would authorize $884.8 million for specific Navy and Marine 
Corps procurement programs in support of the war against 
terrorism.
      The Senate amendment contained no similar provision, but 
the Senate amendment would authorize funding for these and 
other procurement activities in Title I.
      The House recedes.
      The conferees agree to authorize funding for these 
activities in Title I of this Act.
Operation and Maintenance
      The House bill contained a provision (sec. 1528) that 
would authorize $548.2 million for operation and maintenance 
for the Army, Navy, Marine Corps, and Air Force.
      The Senate amendment contained no similar provision, but 
the Senate amendment would authorize funding for these and 
other Defense-wide operation and maintenance activities in 
Title III.
      The House recedes.
      The conferees agree to authorize funding for these 
activities in Title III of this Act.
Research, Development, Test and Evaluation, Defense-wide
      The House bill contained a provision (sec. 1525) that 
would authorize $390.1 million for Research, Development, Test 
and Evaluation, Defense-wide for chemical and biological 
defense activities.
      The Senate amendment contained no similar provision, but 
the Senate amendment would authorize funding for these and 
other research and development activities in Title II.
      The House recedes.
      The conferees agree to authorize funding for these 
activities in Title II of this Act.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Overview
      The budget for fiscal year 2003 requested authorization 
of appropriations of $8,934.0 million for the military 
construction and family housing construction and operation 
accounts of the Department of Defense. An additional $594.4 
million was requested for military construction projects in the 
Defense Emergency Response Fund (DERF). The Army later 
identified an additional $122.6 million in military 
construction projects in the DERF that had been originally 
categorized as operation and maintenance funding.
      The House bill would authorize $9,988.6 million for 
military construction and family housing.
      The Senate amendment would authorize $10,178.9 million 
for these accounts.
      The conferees recommend authorization of appropriations 
of $10,423.6 million for the military construction and family 
housing accounts of the Department of Defense for fiscal year 
2003. The summary table that follows also reflects prior year 
savings of $33.7 million to be derived from anticipated 
rescissions. Including the budget authority impact of $53.0 
million for a previously authorized project and the anticipated 
rescissions of prior year funding, the conference agreement is 
consistent with a budget authority level of $10,442.9 million 
for military construction and family housing.
      Projects that have been transferred into these accounts 
from the DERF are displayed as changes to the original military 
construction request in the tables that follow. Excluding these 
transfers, the conferees agree to a net increase of $772.6 
million in military construction and family housing funding.
      The House bill, the Senate amendment, and the conference 
agreement reduced the military construction and family housing 
accounts by $39.9 million to reflect the proper accounting for 
the accrual of civilian personnel benefits under current law, 
and by $44.6 million to reflect foreign currency fluctuations. 
In addition, the conferees agree to reductions of $54.5 million 
in the military construction accounts to be achieved through a 
0.9 percent reduction in the rates charged for supervision, 
inspection, and overhead on construction projects, and $57.0 
million to reflect lower inflation rates. These reductions 
shall not cancel any military construction project authorized 
by this Act.
      The following tables list the amounts authorized to be 
appropriated for the military construction and family housing 
accounts and for each military construction and family housing 
project.


Short title (sec. 2001)
      The House bill contained a provision (sec. 2001) that 
would cite Division B of this Act as the Military Construction 
Authorization Act for Fiscal Year 2003.
      The Senate amendment contained an identical provision 
(sec. 2001).
      The conference agreement includes this provision.

                            Title XXI--Army

Overview
      The House bill would authorize $2,930.7 million for Army 
military construction and family housing programs for fiscal 
year 2003.
      The Senate amendment would authorize $3,010.3 million for 
this purpose.
      The conferees recommend authorization of appropriations 
of $3,021.5 million for Army military construction and family 
housing for fiscal year 2003.

                       Items of Special Interest

Fort Bliss, Texas
      Within the Army's military construction account, the 
conferees agree to authorize $5.2 million to upgrade the water 
system at Fort Bliss, Texas. Funds for this project are to be 
used in conjunction with the $5.0 million authorized for water 
system upgrades at that installation in the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107).
Fort Dix, New Jersey
      The conferees recommend that, within authorized amounts 
for unspecified minor construction, the Secretary of the Army 
use $1.5 million for road construction in the vicinity of Fort 
Dix, New Jersey, to compensate for road closures due to force 
protection.

                     Legislative Provisions Adopted

Authorized Army construction and land acquisition projects (sec. 2101)
      The House bill contained a provision (sec. 2101) that 
would authorize Army military construction projects for fiscal 
year 2003.
      The Senate amendment contained a similar provision (sec. 
2101).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Family housing (sec. 2102)
      The House bill included a provision (sec. 2102) that 
would authorize new construction and planning and design of 
family housing units for the Army for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2102).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Improvements to military family housing units (sec. 2103)
      The House bill contained a provision (sec. 2103) that 
would authorize improvements to existing units of Army family 
housing for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2103).
      The conference agreement includes this provision.
Authorization of appropriations, Army (sec. 2104)
      The House bill contained a provision (sec. 2104) that 
would authorize specific appropriations for each line item 
contained in the Army's military construction budget for fiscal 
year 2003. This section would also provide an overall limit on 
the amount the Army is authorized to spend on military 
construction projects.
      The Senate amendment contained a similar provision (sec. 
2104).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2002 
        projects (sec. 2105)
      The House bill contained a provision (sec. 2105) that 
would amend the table in section 2101 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107) to increase the total project 
authorization ceilings for military construction projects at 
Fort Carson, Colorado, and Fort Jackson, South Carolina.
      The Senate amendment contained an identical provision 
(sec. 2105).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2001 project 
        (sec. 2106)
      The Senate amendment contained a provision (sec. 2109) 
that would amend section 2101 of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of Public 
Law 106-398) to change the location for which funds were 
authorized for a barracks complex from Camp Page, Korea, to 
Camp Stanley, Korea.
      The House bill contained no similar provision.
      The House recedes.

                   Legislative Provisions Not Adopted

Planning and design for anechoic chamber at White Sands Missile Range, 
        New Mexico
      The Senate amendment contained a provision (sec. 2110) 
that would authorize $3.0 million for planning and design for 
an anechoic chamber at White Sands Missile Range, New Mexico.
      The House bill contained no similar provision.
      The Senate recedes.
      The state list contained in this report describes the 
conference agreement on funding for this project.

                            Title XXII--Navy

Overview
      The House bill would authorize $2,514.0 million for Navy 
military construction and family housing programs for fiscal 
year 2003.
      The Senate amendment would authorize $2,476.2 million for 
this purpose.
      The conferees recommend authorization of appropriations 
of $2,532.9 million for Navy military construction and family 
housing for fiscal year 2003.

                     Legislative Provisions Adopted

Authorized Navy construction and land acquisition projects (sec. 2201)
      The House bill contained a provision (sec. 2201) that 
would authorize Navy military construction projects for fiscal 
year 2003.
      The Senate amendment contained a similar provision (sec. 
2201).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Family housing (sec. 2202)
      The House bill included a provision (sec. 2202) that 
would authorize new construction and planning and design of 
family housing units for the Navy for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2202).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Improvements to military family housing units (sec. 2203)
      The House bill contained a provision (sec. 2203) that 
would authorize improvements to existing units of Navy family 
housing for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2203).
      The conference agreement includes this provision.
Authorization of appropriations, Navy (sec. 2204)
      The House bill contained a provision (sec. 2204) that 
would authorize specific appropriations for each line item 
contained in the Navy's military construction budget for fiscal 
year 2003. This section would also provide an overall limit on 
the amount the Navy is authorized to spend on military 
construction projects.
      The Senate amendment contained a similar provision (sec. 
2204).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2002 
        projects (sec. 2205)
      The House bill contained a provision (sec. 2205) that 
would amend the table in section 2201 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B 
of Public Law 107-107) to provide for an increase in the 
amounts authorized for military construction at Naval Station 
Norfolk, Virginia.
      The Senate amendment contained a similar provision (sec. 
2205) that would amend the Military Construction Authorization 
Act for Fiscal Year 2002 (division B of Public Law 107-107) to 
increase the total project authorization for the projects at 
Naval Station, Norfolk, Virginia by $280,000. The provision 
would also correct the number of housing units authorized for a 
project at Quantico, Virginia from 60 units to 39 units.
      The House recedes.

                         Title XXIII--Air Force

Overview
      The House bill would authorize $2,488.3 million for Air 
Force military construction and family housing programs for 
fiscal year 2003.
      The Senate amendment would authorize $2,607.6 million for 
this purpose.
      The conferees recommend authorization of appropriations 
of $2,583.4 million for Air Force military construction and 
family housing for fiscal year 2003.

                     Legislative Provisions Adopted

Authorized Air Force construction and land acquisition projects (sec. 
        2301)
      The House bill contained a provision (sec. 2301) that 
would authorize Air Force military construction projects for 
fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2301).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Family housing (sec. 2302)
      The House bill included a provision (sec. 2302) that 
would authorize new construction and planning and design of 
family housing units for the Air Force for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2302).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Improvements to military family housing units (sec. 2303)
      The House bill contained a provision (sec. 2303) that 
would authorize improvements to existing units of Air Force 
family housing for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2303).
      The conference agreement includes this provision.
Authorization of appropriations, Air Force (sec. 2304)
      The House bill contained a provision (sec. 2304) that 
would authorize specific appropriations for each line item 
contained in the Air Force's military construction budget for 
fiscal year 2003. This section would also provide an overall 
limit on the amount the Air Force is authorized to spend on 
military construction projects.
      The Senate amendment contained a similar provision (sec. 
2304).
      The conference agreement includes this provision.
Authority for use of military construction funds for construction of 
        public road near Aviano Air Base, Italy, to replace road closed 
        for force protection purposes (sec. 2305)
      The Senate amendment contained a provision (sec. 2305) 
that would authorize the Secretary of the Air Force to provide 
to Italian authorities funds authorized for appropriation by 
section 2304 of this Act for the construction of a public road, 
plus associated improvements, to replace a public road adjacent 
to Aviano Air Base, Italy, that was closed for force protection 
purposes.
      The House bill contained no similar provision.
      The House recedes.

                   Legislative Provisions Not Adopted

Additional project authorization for air traffic control facility at 
        Dover Air Force Base, Delaware
      The Senate amendment contained a provision (sec. 2306) 
that would authorize the Secretary of the Air Force to carry 
out the construction of a new air traffic control facility at 
Dover Air Force Base, Delaware, in the amount of $7.5 million.
      The House bill contained no similar provision.
      The Senate recedes.
      The state list contained in this report describes the 
conference agreement on funding for this project.
Availability of funds for consolidation of materials computational 
        research facility at Wright-Patterson Air Force Base, Ohio
      The Senate amendment contained a provision (sec. 2307) 
that would authorize $15.2 million for Air Force military 
construction to construct a project for the consolidation of 
the materials computational research facility at Wright-
Patterson Air Force Base, Ohio.
      The House bill contained no similar provision.
      The Senate recedes.
      The state list contained in this report describes the 
conference agreement on funding for this project.

                      Title XXIV--Defense Agencies

Overview
      The House bill would authorize $829.8 million for Defense 
Agencies military construction and family housing programs for 
fiscal year 2003. The bill would also authorize $545.1 million 
for base closure activities.
      The Senate amendment would authorize $771.8 million for 
Defense Agencies military construction and family housing 
programs and $545.1 million for base closure activities.
      The conferees recommend authorization of appropriations 
of $856.2 million for Defense Agencies military construction 
and family housing for fiscal year 2003. The conferees also 
recommend authorization of appropriations of $561.1 million for 
base closure activities, which includes an increase of $20.0 
million for environmental restoration at closed facilities.

                     Legislative Provisions Adopted

Authorized Defense Agencies construction and land acquisition projects 
        (sec. 2401)
      The House bill contained a provision (sec. 2401) that 
would authorize Defense Agencies military construction projects 
for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2401).
      The conference agreement includes this provision.
      The amounts authorized in the bill are listed on an 
installation-by-installation basis. The state list of projects 
contained in this report provides the binding list of specific 
projects authorized at each location.
Improvements to military family housing units (sec. 2402)
      The House bill contained a provision (sec. 2402) that 
would authorize improvements to existing units of Defense 
Agencies family housing for fiscal year 2003.
      The Senate amendment contained a similar provision (sec. 
2402).
      The conference agreement includes this provision.
Energy conservation projects (sec. 2403)
      The House bill contained a provision (sec. 2403) that 
would authorize the Secretary of Defense to carry out energy 
conservation projects.
      The Senate amendment contained a similar provision (sec. 
2403).
      The conference agreement includes this provision.
Authorization of appropriations, Defense Agencies (sec. 2404)
      The House bill contained a provision (sec. 2404) that 
would authorize specific appropriations for each line item 
contained in the Defense Agencies' military construction 
budgets for fiscal year 2003. This section would also provide 
an overall limit on the amount the Defense Agencies are 
authorized to spend on military construction projects.
      The Senate amendment contained a similar provision (sec. 
2404).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2000 project 
        (sec. 2405)
      The House bill contained a provision (sec. 2405) that 
would modify the table in section 2401 of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B 
of Public Law 106-65) to provide for an increase in the amounts 
authorized for military construction at Blue Grass Army Depot, 
Kentucky.
      The Senate amendment contained an identical provision 
(sec. 2106).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 1999 project 
        (sec. 2406)
      The House bill contained a provision (sec. 2406) that 
would amend the table in section 2401 of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B 
of Public Law 105-261) to provide for an increase in the 
amounts authorized for military construction at Newport Army 
Depot, Indiana.
      The Senate amendment contained a similar provision (sec. 
2107).
      The Senate recedes.
Modification of authority to carry out certain fiscal year 1997 project 
        (sec. 2407)
      The House bill contained a provision (sec. 2407) that 
would amend the table in section 2401 of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B 
of Public Law 104-201) to provide for an increase in the 
amounts authorized for military construction at Pueblo Chemical 
Activity, Colorado.
      The Senate amendment contained an identical provision 
(sec. 2108).
      The conference agreement includes this provision.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

Authorized NATO construction and land acquisition projects (sec. 2501)
      The House bill contained a provision (sec. 2501) that 
would authorize the Secretary of Defense to make contributions 
to the North Atlantic Treaty Organization security investment 
program in an amount equal to the sum of the amount 
specifically authorized in section 2502 of this bill and the 
amount of recoupment due to the United States for construction 
previously financed by the United States.
      The Senate amendment contained an identical provision 
(sec. 2501).
      The conference agreement includes this provision.
Authorization of appropriations, NATO (sec. 2502)
      The House bill contained a provision (sec. 2502) that 
would authorize appropriations of $168.2 million as the U.S. 
contribution to the North Atlantic Treaty Organization (NATO) 
security investment program.
      The Senate amendment contained an identical provision 
(sec. 2502).
      The conference agreement includes this provision.

            Title XXVI--Guard and Reserve Forces Facilities

Overview
      The House bill would authorize $512.4 million for 
military construction and land acquisition for fiscal year 2003 
for the Guard and Reserve components.
      The Senate amendment would authorize $599.6 million for 
this purpose.
      The conferees recommend authorization of appropriations 
of $701.3 million for military construction and land 
acquisition for fiscal year 2003. This authorization would be 
distributed as follows:

                          [Dollars in millions]

Army National Guard........................................... $ 236,236
Air National Guard............................................   204,215
Army Reserve..................................................    99,399
Naval and Marine Corps Reserve................................    75,801
Air Force Reserve.............................................    85,649
                    --------------------------------------------------------------
                    ____________________________________________________

          Total..................................................701,300

                       Items of Special Interest

Planning and design, Army National Guard
      The conferees recommend that, within authorized amounts 
for planning and design, the Secretary of the Army make $1.4 
million available to complete planning and design activities 
for a multi- purpose training range at Fort Indiantown Gap, 
Pennsylvania.

                     Legislative Provisions Adopted

Authorized Guard and Reserve construction and land acquisition projects 
        (sec. 2601)
      The House bill contained a provision (sec. 2601) that 
would authorize appropriations for military construction for 
the Guard and Reserve by service component for fiscal year 
2003.
      The Senate amendment contained a similar provision (sec. 
2601).
      The conference agreement includes this provision. The 
state list of projects contained in this report provides the 
binding list of specific projects authorized at each location.

                   Legislative Provisions Not Adopted

Army National Guard Reserve Center, Lane County, Oregon
      The Senate amendment contained a provision (sec. 2602) 
that would authorize a $9.0 million increase in the Army 
National Guard military construction program for the 
construction of an additional phase of the Reserve Center in 
Lane County, Oregon.
      The House bill contained no similar provision.
      The Senate recedes.
      The state list contained in this report describes the 
conference agreement on funding for this project.
Additional project authorization for composite support facility for 
        Illinois Air National Guard
      The Senate amendment contained a provision (sec. 2603) 
that would authorize a $10.0 million increase in the Air 
National Guard military construction program for the 
construction of the Composite Support Facility for the 183rd 
Fighter Wing of the Illinois Air National Guard.
      The House bill contained no similar provision.
      The Senate recedes.
      The state list contained in this report describes the 
conference agreement on funding for this project.

        Title XXVII--Expiration and Extension of Authorizations

                     Legislative Provisions Adopted

Expiration of authorizations and amounts required to be specified by 
        law (sec. 2701)
      The House bill contained a provision (sec. 2701) that 
would provide that authorizations for military construction 
projects, repair of real property, land acquisition, family 
housing projects and facilities, contributions to the North 
Atlantic Treaty Organization infrastructure program, and guard 
and reserve projects will expire on October 1, 2005, or the 
date of enactment of an act authorizing funds for military 
construction for fiscal year 2006, whichever is later. This 
expiration would not apply to authorizations for which 
appropriated funds have been obligated before October 1, 2005, 
or the date of enactment of an act authorizing funds for these 
projects, whichever is later.
      The Senate amendment contained an identical provision 
(sec. 2701).
      The conference agreement includes this provision.
Extension of authorizations of certain fiscal year 2000 projects (sec. 
        2702)
      The House bill contained a provision (sec. 2702) that 
would provide for the extension of certain fiscal year 1999 
military construction project authorizations until October 1, 
2003, or the date of the enactment of the act authorizing funds 
for military construction for fiscal year 2004, whichever is 
later.
      The Senate amendment contained a similar provision (sec. 
2702).
      The House recedes.
Extension of authorizations of certain fiscal year 1999 projects (sec. 
        2703)
      The House bill contained a provision (sec. 2703) that 
would provide for the extension of certain fiscal year 1999 
military construction project authorizations until October 1, 
2003, or the date of the enactment of the act authorizing funds 
for military construction for fiscal year 2004, whichever is 
later.
      The Senate amendment contained an identical provision 
(sec. 2703).
      The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

Effective date
      The House bill contained a provision (sec. 2704) that 
would provide that Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI 
of this bill shall take effect on October 1, 2002, or the date 
of the enactment of this Act, whichever is later.
      The Senate amendment contained a similar provision (sec. 
2704).
      Because the conference report was not adopted prior to 
October 1, 2002, this provision is no longer required and was 
not included in the conference agreement.

                    Title XXVIII--General Provisions

                       Items of Special Interest

Blount Island, Jacksonville, Florida
      The conferees understand that the Secretary of the Navy 
and business and government entities in Jacksonville, Florida, 
have been unable to resolve what commercial activities may 
continue on Blount Island, Jacksonville, Florida, upon 
completion of several pending land acquisitions by the 
Secretary. The conferees believe that in the course of 
negotiating easements with these entities, the Secretary of the 
Navy should consider that a waiver of regulations pertaining to 
activities within the explosive safety quantity distance arc 
has been in effect for over fifteen years and that ammunition 
transshipment operations occur only 12 weekends annually. The 
conferees believe that both the Marine Corps and commercial 
activities can safely coexist on Blount Island and encourage 
both sides to continue to negotiate in good faith.

                     Legislative Provisions Adopted

 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

Leasing of military family housing in Korea (sec. 2801)
      The House bill contained a provision (sec. 2803) that 
would amend section 2828 of title 10, United States Code, to 
authorize the Secretary of the Army to lease up to 2,400 units 
of family housing in Korea for a maximum lease amount of 
$35,000 per year. This provision would also increase from 800 
to 1,175 the number of units of family housing in Korea that 
may be leased for no more than $25,000 per year.
      The Senate amendment contained a similar provision (sec. 
2801).
      The House recedes.
Modification of alternative authority for acquisition and improvement 
        of military housing (sec. 2802)
      The House bill contained a provision (sec. 2801) that 
would amend several provisions of title 10, United States Code, 
to provide the secretaries of the military departments with 
additional flexibility in the management of family and 
unaccompanied housing under alternate authorities. The 
provision would amend section 2872a of title 10, United States 
Code, to add police and fire protection services to the 
services that may be provided by a service secretary under the 
housing privatization authorities; would amend section 2874 of 
title 10, United States Code, to permit service secretaries to 
lease existing housing and incorporate such housing into 
contracts negotiated under these authorities; would repeal 
section 2879 of title 10, United States Code; would amend 
section 2880 of title 10, United States Code, to remove 
restrictions on space limitations by grade for unaccompanied 
housing provided under these authorities on a military 
installation; and would amend section 2883 of title 10, United 
States Code, to consolidate the existing separate family 
housing and unaccompanied housing improvement funds into a 
single fund.
      The Senate amendment contained a provision (sec. 2803) 
that would amend section 2874 of title 10, United States Code, 
to permit service secretaries to lease existing housing and 
incorporate such housing into contracts negotiated under these 
authorities. The provision would repeal section 2879 of title 
10, United States Code, and make certain conforming changes.
      The House recedes with an amendment that would amend 
section 2872a of title 10, United States Code, to add police 
and fire protection services to the list of services that a 
service secretary may be provide under this authority.
Pilot housing privatization authority for acquisition or construction 
        of military unaccompanied housing (sec. 2803)
      The House bill contained a provision (sec. 2804) that 
would authorize the Secretary of the Navy to undertake no more 
than three pilot projects within the United States and its 
territories for the acquisition or construction of military 
unaccompanied housing to be operated and maintained by private 
sector entities. The provision would also authorize the 
Secretary of Defense to set specific higher rates of partial 
basic allowance for housing (BAH) for sailors or marines 
assigned to this housing. The authorities would expire 
September 30, 2007.
      The Senate amendment contained a provision (sec. 604) 
that would authorize the Secretary of Defense to prescribe 
higher partial basic allowance for housing rates. The rates 
would be expected to approximate, but be lower than, current 
BAH rates for unaccompanied junior enlisted personnel assigned 
to shore commands where government-provided housing is not 
available. The authority would expire in 2007.
      The Senate recedes with an amendment that would authorize 
a partial BAH for members assigned to such projects and would 
direct that the Department of Defense Military Unaccompanied 
Housing Improvement Fund be used to fund the pilot program.
Repeal of source requirements for family housing construction overseas 
        (sec. 2804)
      The Senate amendment contained a provision (sec. 2802) 
that would repeal section 803 of the Military Construction 
Authorization Act, 1984 (Public Law 98-115), which requires the 
use of housing manufactured or fabricated in the United States 
in family housing constructed in foreign countries.
      The House bill contained no similar provision.
      The House recedes.
Availability of energy cost savings realized at military installations 
        (sec. 2805)
      The conferees agree to include a provision that would 
modify section 2865 of title 10, United States Code, to allow 
up to two-thirds of energy savings realized from energy savings 
contracts to remain available until expended. Under current 
law, such funds are available for up to two years. The 
conferees believe this change would allow the military 
departments to make more efficient use of savings realized 
under Energy Savings Performance Contracts.

        Subtitle B--Real Property and Facilities Administration

Agreements to limit encroachments and other constraints on military 
        training, testing, and operations (sec. 2811)
      The House bill contained a provision (sec. 2811) that 
would authorize the secretaries of the military departments to 
enter into agreements with private entities to acquire 
interests in lands adjacent to military installations that 
would serve to limit development or preserve habitat in the 
vicinity of military installations in order to protect military 
training and operations. The House bill would also allow the 
secretaries of the military departments to enter into 
agreements to acquire water rights.
      The Senate amendment contained a similar provision (sec. 
2811).
      The Senate recedes with a technical amendment.
Conveyance of surplus real property for natural resource conservation 
        purposes (sec. 2812)
      The House bill contained a provision (sec. 2812) that 
would authorize the secretaries of the military departments to 
convey surplus real property to State or local governments or 
to nonprofit entities who have as their primary purpose the 
conservation of open space or natural resources. Property would 
be conveyed under this authority under the condition that it be 
used to preserve open space or the natural resources on such 
property. Any property conveyed that was no longer being used 
for such purposes would revert to the United States.
      In addition, any subsequent conveyance would be subject 
to secretarial approval and to the condition that the property 
be maintained for natural resource conservation in perpetuity. 
Any property no longer being maintained in accordance with 
these provisions would revert to the United States.
      The Senate amendment contained a similar provision (sec. 
2812) that would require prior notice to Congress before any 
subsequent conveyance of the property.
      The Senate recedes with an amendment that would also 
require prior notice to Congress before any release of 
covenants on such property.
Modification of demonstration program on reduction in long-term 
        facility maintenance costs (sec. 2813)
      The House bill contained a provision (sec. 2814) that 
would authorize the Secretary of Defense to conduct a 
demonstration program to assess whether the inclusion of 
facility maintenance requirements in military construction 
contracts may reduce the long-term facility maintenance costs 
of the military departments. The program would be limited to 12 
contracts, and would be in addition to similar authority 
provided to the Secretary of the Army by section 2814 of the 
Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107).
      The Senate amendment contained a similar provision (sec. 
2813) that would amend section 2814 of the Military 
Construction Act for Fiscal Year 2002 (division B of Public Law 
107-107) to authorize the Department of Defense to expand the 
number of demonstration projects on reduction of long-term 
facility maintenance costs from three to 12. The provision 
would amend that act to expand the program to the Department of 
the Navy and the Department of the Air Force while providing 
for the continuation of ongoing Army demonstration projects.
      The House recedes with an amendment that would allow each 
military department to enter into up to 12 contracts as part of 
the demonstration program.
Expanded authority to transfer property at military installations to be 
        closed to persons who construct or provide military family 
        housing (sec. 2814)
      The House bill contained a provision (sec. 2815) that 
would amend section 204 of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 100-526) and 
section 2905 of the Defense Base Closure and Realignment Act of 
1990 (Public Law 101-510) to provide greater flexibility to the 
secretary of a military department to exchange property at a 
closed military installation for military family housing that 
is needed at other installations, even if the property to be 
exchanged was identified as essential to the reuse plan at the 
closing installation.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees direct the secretaries of the military 
departments to consult with and take into consideration the 
views of the local redevelopment agency prior to entering into 
an agreement to transfer any property at a closed military 
installation to a third party in exchange for the construction 
of military housing at another location.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Transfer of jurisdiction, Fort McClellan, Alabama, to establish 
        Mountain Longleaf National Wildlife Refuge (sec. 2821)
      The conferees agree to include a provision that would 
direct the Secretary of the Army to transfer approximately 
7,600 acres of real property at Fort McClellan, Alabama, to the 
Secretary of the Interior for the purpose of establishing the 
Mountain Longleaf National Wildlife Refuge. The Secretary of 
the Army would retain responsibility for ordnance and munitions 
on the property. The provision would authorize the Secretary of 
the Army to provide up to $500,000 from the Base Realignment 
and Closure Account to the Secretary of the Interior to 
facilitate the transfer of the property and support 
environmental research.
Land conveyances, lands in Alaska no longer required for National Guard 
        purposes (sec. 2822)
      The House bill contained a provision (sec. 2821) that 
would authorize the Secretary of the Army to convey to the 
State of Alaska, a local government entity, or Native 
corporation in the State of Alaska certain parcels of real 
estate in the National Wildlife Refuge System in Alaska that 
are excess to the needs of the Alaska National Guard.
      The Senate amendment contained a similar provision (sec. 
2821).
      The Senate recedes.
Land conveyance, Sunflower Army Ammunition Plant, Kansas (sec. 2823)
      The Senate amendment contained a provision (sec. 2832) 
that would authorize the Secretary of the Army or the 
Administrator of the General Services Administration to convey 
approximately 2,000 acres at the former Sunflower Army 
Ammunition Plant, Kansas, to the Johnson County Park and 
Recreation District, Kansas, for recreational purposes.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
only the Administrator of General Services Administration to 
convey the property. The amendment would also make certain 
technical and conforming changes.
Land conveyances, Bluegrass Army Depot, Richmond, Kentucky (sec. 2824)
      The Senate amendment contained a provision (sec. 2833) 
that would authorize the Secretary of the Army to convey 10 
acres, without consideration, at Blue Grass Army Depot, 
Kentucky, to Madison County, Kentucky, for the purpose of 
constructing a veterans' center. The property could revert to 
the United States if not being used for the intended purpose.
      The House bill contained no similar provision.
      The House recedes with an amendment that would also 
authorize the Secretary to convey to the county, without 
consideration, an additional three acres for the purpose of 
constructing an educational center and historic museum and 
would permit the Secretary to require reimbursement to the 
Government for administrative costs associated with these 
conveyances. The conferees further agree to require 
reimbursement for any excess costs that result from a request 
by the recipient for any environmental assessment or other 
activities beyond those considered reasonable and necessary to 
convey this property in compliance with existing law.
Land conveyance, Fort Campbell, Kentucky (sec. 2825)
      The House bill contained a provision (sec. 2822) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property at Fort Campbell, 
Kentucky, consisting of approximately 50 acres containing an 
abandoned railroad spur, to the City of Hopkinsville, Kentucky. 
The property would be used by the City for storm water 
management, recreation, and other public purposes. The cost of 
any surveys necessary for the conveyance would be borne by the 
City.
      The Senate amendment contained a similar provision (sec. 
2822) that would require, as a condition of the conveyance, the 
City to reimburse the Secretary for costs incurred to carry out 
the conveyance.
      The House recedes with an amendment that would permit the 
Secretary to require reimbursement to the Government for 
administrative costs associated with this conveyance. The 
conferees further agree to require reimbursement for any excess 
costs that result from a request by the recipient for any 
environmental assessment or other activities beyond those 
considered reasonable and necessary to convey the property in 
compliance with existing law.
Land conveyance, Army Reserve Training Center, Buffalo, Minnesota (sec. 
        2826)
      The House bill contained a provision (sec. 2823) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property, with improvements, to 
the Buffalo Independent School District 877 of Buffalo, 
Minnesota. The property is to be used by the school district as 
a learning center. The cost of any surveys necessary for the 
conveyance would be borne by the school district.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the Secretary to require reimbursement to the Government for 
administrative costs associated with this conveyance. The 
conferees further agree to require reimbursement for any excess 
costs that result from a request by the recipient for any 
environmental assessment or other activities beyond those 
considered reasonable and necessary to convey the property in 
compliance with existing law.
Land conveyance, Fort Monmouth, New Jersey (sec. 2827)
      The House bill contained a provision (sec. 2826) that 
would authorize the Secretary of the Army to sell a parcel of 
land consisting of approximately 64 acres of military family 
housing known as Howard Commons and located at Fort Monmouth, 
New Jersey. The provision would specify that the sale would be 
made on a competitive basis and would be at no less than fair 
market value. As compensation the Secretary may accept payment 
in-kind that would build replacement facilities or rehabilitate 
existing military family housing at Fort Monmouth.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
either the Secretary of the Army or the Administrator of the 
General Services Administration to carry out the conveyance. 
The amendment would also make certain conforming changes and 
require the Secretary of the Army to notify the congressional 
defense committees in the event the payment in-kind takes the 
form of new construction.
Land conveyance, Fort Bliss, Texas (sec. 2828)
      The House bill contained a provision (sec. 2824) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property at Fort Bliss, Texas, 
consisting of approximately 44 acres with and without 
improvements, to the State of Texas. The property would be used 
by the State for the construction of a veterans' nursing home 
and could revert to the United States if not being used for the 
intended purpose. The cost of any surveys necessary for the 
conveyance would be borne by the State.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the Secretary to require reimbursement to the Government for 
administrative costs associated with this conveyance. The 
conferees further agree to require reimbursement for any excess 
costs that result from a request by the recipient for any 
environmental assessment or other activities beyond those 
considered reasonable and necessary to convey the property in 
compliance with existing law.
Land conveyance, Fort Hood, Texas (sec. 2829)
      The House bill contained a provision (sec. 2825) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real estate at Fort Hood, Texas, 
consisting of approximately 174 acres with and without 
improvements, to the Veterans Land Board of the State of Texas. 
The property would be used by the State to establish a State-
run veterans' cemetery. The cost of any surveys necessary for 
the conveyance would be borne by the Board.
      The Senate amendment contained a similar provision (sec. 
2829) which provided that the property could revert to the 
United States if not being used for the intended purpose.
      The House recedes with an amendment that would permit the 
Secretary to require reimbursement to the Government for 
administrative costs associated with this conveyance. The 
conferees further agree to require reimbursement for any excess 
costs that result from a request by the recipient for any 
environmental assessment or other activities beyond those 
considered reasonable and necessary to convey the property in 
compliance with existing law.
Land conveyances, Engineer Proving Ground, Fort Belvoir, Virginia (sec. 
        2830)
      The Senate amendment contained a provision (sec. 2830) 
that would authorize the Secretary of the Army to convey, 
without consideration, approximately 135 acres at the Engineer 
Proving Ground, Fort Belvoir, Virginia to Fairfax County, 
Virginia for use as a park or recreational purposes. The 
provision would further authorize the Secretary to convey, at 
fair market value using competitive procedures, the remaining 
acreage at the Engineer Proving Ground. The compensation 
received by the Secretary could be in cash or in the form of 
in-kind consideration for maintenance, improvement, alteration, 
repair, restoration, or construction of facilities at Fort 
Belvoir. The provision would repeal section 2821, as amended, 
of the National Defense Authorization Act for Fiscal Year 1990 
and 1991 (Public Law 101-189) relating to the Engineer Proving 
Ground.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
either the Secretary of the Army or the Administrator of the 
General Services Administration to convey the balance of the 
property. The amendment would also direct that the 
congressional defense committees be notified when payment in-
kind involves the construction of new facilities. The amendment 
would also make certain conforming changes.

                       Part II--Navy Conveyances

Land conveyance, Marine Corps Air Station, Miramar, San Diego, 
        California (sec. 2831)
      The House bill contained a provision (sec. 2831) that 
would authorize the Secretary of the Navy to convey a parcel of 
real property at Marine Corps Air Station Miramar, San Diego, 
California, to ENPEX Corporation. As consideration, the 
provision would require that the corporation convey to the 
United States a parcel of real property in the San Diego area, 
and if that parcel does not contain housing suitable for use as 
military family housing, the corporation would construct family 
housing and convey such housing and underlying real estate to 
the Secretary of the Navy. The provision would also require 
that the value of the housing and real estate to be acquired by 
the Secretary be of at least equal value to real estate being 
conveyed and would restrict the use of the land conveyed by the 
Secretary to the generation of electric power.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Modification of authority for land transfer and conveyance, Naval 
        Security Group Activity, Winter Harbor, Maine (sec. 2832)
      The Senate amendment contained a provision (sec. 2823) 
that would amend section 2845(b) of the Military Construction 
Act for Fiscal Year 2002 (division B of Public Law 107-107) to 
authorize the Secretary of the Navy to convey to the State of 
Maine, a political subdivision of the State, or any tax-
supported agency in the State, without consideration, 
approximately 50 acres known as the Corea Operating Site and 
approximately 23 acres comprising three parcels containing 
family housing. The provision would further authorize the 
Secretary to convey approximately 404 acres of the Corea site 
to the Secretary of the Interior for inclusion in the National 
Wildlife Refuge System, as requested by the Department of the 
Interior pursuant to the federal screening required by section 
2696 of title 10, United States Code.
      The House bill amendment contained no similar provision.
      The House recedes with a technical amendment.
Land conveyance, Westover Air Reserve Base, Massachusetts (sec. 2833)
      The Senate amendment contained a provision (sec. 2824) 
that would authorize the Secretary of the Navy to convey, 
without consideration, to the City of Chicopee, Massachusetts, 
property consisting of 30.4 acres, including 133 housing units 
and other improvements that are no longer required for defense 
purposes, located at Westover Air Reserve Base, Massachusetts. 
The property would be used by the city for economic 
development. The provision would authorize the Secretary to 
require the City of Chicopee to reimburse the Navy for the 
administrative costs related to the conveyance.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
reimbursement for any excess costs that result from a request 
by the recipient for any environmental assessment or other 
activities beyond those considered reasonable and necessary to 
convey the property in compliance with existing law.
Land conveyance, Naval Station, Newport, Rhode Island (sec. 2834)
      The Senate amendment contained a provision (sec. 2825) 
that would authorize the Secretary of the Navy to convey to the 
State of Rhode Island, or any political subdivision thereof, a 
parcel of real property consisting of approximately 34 acres, 
with any improvements thereon, known as the Melville Marina 
site. The conveyance would be by sale for fair market value.
      The House bill contained no similar provision.
      The House recedes.
Land exchange and boundary adjustments, Marine Corps Base, Quantico, 
        and Prince William Forest Park, Virginia (sec. 2835)
      The House bill contained a provision (sec. 2832) that 
would authorize the Secretary of the Interior and the Secretary 
of the Navy to adjust the boundaries of Marine Corps Base, 
Quantico, Virginia, and Prince William Forest Park, Virginia. 
The boundary adjustment would require the Secretary of the Navy 
to transfer approximately 352 acres of land to the 
administrative jurisdiction of the Secretary of the Interior 
and would require the Secretary of the Interior to transfer 
approximately 3,400 acres of land to the administrative 
jurisdiction of the Secretary of the Navy.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical and clarifying 
amendment.

                    Part III--Air Force Conveyances

Modification of land conveyance, Los Angeles Air Force Base, California 
        (sec. 2841)
      The conferees agree to include a provision that would 
modify section 2861 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398) to 
extend the time limitation on a leaseback exercised under that 
authority, if any, from ten to thirty years.
Land exchange, Buckley Air Force Base, Colorado (sec. 2842)
      The Senate amendment contained a provision (sec. 2826) 
that would authorize the Secretary of the Air Force to convey 
to the State of Colorado property consisting of approximately 
72 acres, including improvements, known as the Watkins 
Communication Site in Arapahoe County, Colorado. In exchange, 
the State would convey to the Air Force real property 
consisting of approximately 41 acres, including improvements, 
that is contiguous to Buckley Air Force Base, Colorado. The 
property conveyed to the Air Force would be used to build 
additional housing and would not be subject to general land 
laws, including mining and mineral and geothermal leasing laws. 
The provision would authorize additional terms and conditions, 
which may include a payment by one party to the other to 
reflect a difference in the value of the two parcels of 
property. Because the acquisition of this land had not yet 
received the approval normally required by the Office of the 
Secretary of Defense, the provision specified that this 
exchange would require the concurrence of the Secretary of 
Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would specify 
that the purpose of the conveyance is for the construction of 
military family housing. Since the Secretary of Defense has 
approved the required land acquisition waiver, the amendment 
would also strike the limitation that the Secretary of Defense 
must concur with the conveyance.
Land conveyances, Wendover Air Force Base Auxiliary Field, Nevada (sec. 
        2843)
      The House bill contained a provision (sec. 2841) that 
would authorize the Secretary of the Interior and the Secretary 
of the Air Force to convey certain parcels of real property at 
Wendover Air Force Base Auxiliary Field, Nevada, to the City of 
West Wendover, Nevada, and Tooele County, Utah, without 
consideration, for the purpose of establishing a runway 
protection zone and the development of an industrial park.
      The Senate amendment contained a similar provision (sec. 
2828).
      The Senate recedes with a technical amendment.

                       Subtitle D--Other Matters

Master plan for use of Navy Annex, Arlington, Virginia (sec. 2851)
      The Senate amendment contained a provision (sec. 2831) 
that would repeal title XXIX of the Military Construction 
Authorization Act for Fiscal Year 2000 (division B of Public 
Law 106-65) regarding the Commission on the National Military 
Museum. The provision would also amend section 2881 of that Act 
to require the Secretary of Defense to submit a master plan for 
the use of the Navy Annex, Arlington, Virginia, no later than 
180 days after enactment of the bill. The provision would 
further direct that the master plan not delay the construction 
of the Air Force Memorial.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
language referring to the National Military Museum.
Sale of excess treated water and wastewater treatment capacity, Marine 
        Corps Base, Camp Lejeune, North Carolina (sec. 2852)
      The House bill contained a provision (sec. 2862) that 
would permit the Secretary of the Navy to enter into an 
agreement that would allow Camp Lejeune, North Carolina, to 
provide treated water and wastewater treatment services to 
Onslow County, North Carolina, if the Secretary determines that 
such an agreement is in the public interest and will not 
interfere with current or future utility needs at Camp Lejeune. 
The county would be required to reimburse the Navy for the fair 
market value of the services provided, and any amounts paid 
would be credited to the base operations and maintenance 
accounts of Camp Lejeune.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Conveyance of real property, Adak Naval Complex, Alaska, and related 
        land conveyances (sec. 2853)
      The House bill contained a provision (sec. 2863) that 
would ratify an agreement made by the Secretary of the 
Interior, the Secretary of the Navy, and the Aleut Corporation 
in September 2000 concerning the reuse of the Adak Naval 
Complex, Alaska, and other related parcels of land. The 
agreement would provide that real estate on Adak Island 
withdrawn for use by the Secretary of the Navy may be 
transferred to the Aleut Corporation without regard to the 
requirements of section 1621 of title 42, United States Code, 
pertaining to lands in the Alaska Maritime National Wildlife 
Refuge. In return, the Aleut Corporation would agree to 
transfer to the Secretary of the Interior at least 36,000 acres 
of land suitable for inclusion in the Alaska Maritime National 
Wildlife Refuge.
      The Senate amendment contained no similar provision.
      On August 1, 2002, the Senate passed S. 1325, a bill that 
was nearly identical to the House provision. The House passed 
S. 1325 on September 24, 2002, and it was signed into law by 
the President on October 11, 2002, as Public Law 107-239.
      The Senate recedes with an amendment that would amend S. 
1325 by adding the language contained in subsection (g) of the 
House bill regarding the tax basis of property received under 
the ratified agreement.
Special requirement for adding military installation to closure list 
        (sec. 2854)
      The House bill contained a provision (sec. 2864) that 
would amend the Defense Base Closure and Realignment Act of 
1990 (title XXIX of Public Law 101-510) to require that in 
order for the base closure commission to add a base to the list 
proposed by the Secretary of Defense in the 2005 base closure 
round, the commission would have to vote unanimously to add the 
base to the list, and at least two commissioners would have to 
visit that base during the commission's review of the list.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
that in order for the commission to recommend closure of a base 
that is added to the Secretary's list for consideration by the 
commission, at least two commissioners must visit any such base 
before the commission holds its final vote and submits its 
recommendations to the President.

                   Legislative Provisions Not Adopted

Easement for construction of roads or highways, Marine Corps Base, Camp 
        Pendleton, California
      The House bill contained a provision (sec. 2861) that 
would amend section 2851 of the Military Construction 
Authorization Act for Fiscal Year 1999 (division B of Public 
Law 105-261), as previously amended by section 2867 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107), by providing that provisions of California state 
law could not prevent the Secretary of the Navy from granting 
an easement for a proposed road or highway across federal 
property at Camp Pendleton, California, and that State law 
would not apply to the construction, operation, or maintenance 
of any such road by the Foothill/Eastern Transportation 
Corridor Agency.
      The Senate amendment contained no similar provision.
      The House recedes.
Land acquisition, Boundary Channel Drive Site, Arlington
      The Senate amendment contained a provision (sec. 2827) 
that would authorize the Secretary of Defense, using amounts 
authorized to be appropriated by section 2401, to acquire 
approximately 7.2 acres of real property in Arlington County, 
Virginia, known as the Boundary Channel Drive Site. The 
provision would direct that, upon the purchase of the site, the 
property be included in the Pentagon Reservation as defined in 
section 2674 (f)(1) of title 10, United States Code.
      The House bill contained no similar provision.
      The Senate recedes.
National emergency exemption from screening and other requirements of 
        McKinney-Vento Homeless Assistance Act for property used in 
        support of response activities
      The House bill contained a provision (sec. 2813) that 
would amend section 11411 of title 42, United States Code, to 
provide an exception to the requirement to screen excess or 
surplus property for various other uses when the property may 
be needed by federal, state, or local agencies to support 
response efforts in times of war, national emergency, or a 
major disaster.
      The Senate amendment contained no similar provision.
      The House recedes.
Transfer of funds for acquisition of replacement property for National 
        Wildlife Refuge system lands in Nevada
      The Senate amendment contained a provision (sec. 2841) 
that would authorize the Secretary of the Air Force to transfer 
$15.0 million in funds authorized to be appropriated to the Air 
Force for fiscal year 2003 for land acquisition at Nellis Air 
Force Base, Nevada, to the United States Fish and Wildlife 
Service to purchase replacement lands for the National Wildlife 
Refuge (NWR) system in Nevada. These lands would replace lands 
removed from the NWR system and withdrawn for military training 
by section 3011(b) of the Military Lands Withdrawal Act of 1999 
(title XXX of Public Law 106-65).
      The House bill contained no similar provision.
      The Senate recedes.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      Title XXXI--Department of Energy National Security Programs

Overview
      Title XXXI authorizes appropriations for atomic energy 
defense activities of the Department of Energy (DOE) for fiscal 
year 2003, including: the purchase, construction, and 
acquisition of plant and capital equipment; research and 
development; nuclear weapons; naval nuclear propulsion; 
environmental restoration and waste management; operating 
expenses; and other expenses necessary to carry out the 
purposes of the Department of Energy Organization Act (Public 
Law 95-91). The title would authorize appropriations in four 
categories: National Nuclear Security Administration (NNSA); 
defense environmental management; other defense activities; and 
defense nuclear waste disposal.
      The budget request for atomic energy defense activities 
at the Department of Energy totaled $15.4 billion, a 4.4 
percent increase above the fiscal year 2002 level. Of the total 
amount requested, $8.0 billion would be for the National 
Nuclear Security Administration, of which $5.9 billion would be 
for weapons activities, $1.1 billion would be for defense 
nuclear nonproliferation activities, $708.0 million would be 
for naval reactors, and $347.7 million would be for the Office 
of the Administrator; $6.6 billion would be for defense 
environmental management, of which, $4.6 billion would be for 
defense environmental restoration and waste management 
activities, $800.0 million for environmental management cleanup 
reform, $1.1 billion would be for defense facilities closure 
projects, and $158.4 million would be for defense environmental 
management privatization; $472.2 million would be for other 
defense activities; and $315.0 million would be for defense 
nuclear waste disposal.
      The conferees agree to authorize $15.6 billion for atomic 
energy defense activities at the Department of Energy, an 
increase of $142.0 million above the budget request. The 
conferees agree to authorize $8.0 billion for the NNSA, a 
reduction of $0.2 million to the budget request. Of the amounts 
authorized for the NNSA, $5.9 billion would be for weapons 
activities, $1.1 billion would be for defense nuclear 
nonproliferation activities, $706.8 million would be for naval 
reactors, and $325.9 million would be for the Office of the 
Administrator. The conferees agree to authorize $6.8 billion 
for the defense environmental management activities, an 
increase of $151.8 million above the budget request. Of the 
amounts authorized for defense environmental management, $4.5 
billion would be for defense environmental restoration and 
waste management activities, $982.0 million would be for 
environmental management cleanup reform, $1.1 billion would be 
for defense facilities closure projects, and $158.4 million 
would be for defense environmental management privatization. 
The conferees agree to authorize $462.7 million for other 
defense activities, a decrease of $9.5 million. The amount 
authorized for other defense activities would include $27.7 
million for energy security and assurance, $185.5 million for 
the Office of Security, $41.2 million for intelligence, $46.0 
million for counterintelligence, $22.4 million for independent 
oversight and performance assurance, $99.0 million for 
environmental safety and health; $19.7 million for worker and 
community transition, $25.6 million for national security 
program administration support and $2.9 million for the Office 
of Hearing and Appeals. The conferees agree to authorize $315.0 
million for defense nuclear waste disposal.
      The following table summarizes the budget request and the 
authorizations:


                       Items of Special Interest

Management of the National Nuclear Security Administration
      The National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107), which was enacted on December 28, 
2001, amended the National Nuclear Security Administration Act, 
at the request of the Administrator, to create a new position 
of Deputy Administrator for the National Nuclear Security 
Administration (NNSA). As of September 2002 the President has 
not submitted a nominee for that position, and it remains 
vacant. In July 2002, the Administrator of the NNSA resigned to 
take a new position. No nominee has been submitted for the 
Administrator position.
      The NNSA was created by Congress to provide clear lines 
of authority and to streamline the management of the 
nonproliferation and defense programs at the Department of 
Energy. The conferees are concerned that without permanent 
leadership in these two senior NNSA positions, much of the 
progress that has been made at the NNSA, particularly in 
efforts to restructure the headquarters and field 
organizations, may be in jeopardy. The conferees support the 
work of the two programmatic deputies at the NNSA and believe 
that each has contributed significantly to the progress of the 
organization. Nevertheless, the conferees believe that the two 
most senior positions in the NNSA should be permanently filled. 
Any individual, no matter how talented and well-qualified, is 
at a disadvantage when serving in an acting capacity. The 
conferees strongly encourage the President to submit qualified 
nominees for the two senior NNSA positions as quickly as 
possible.

                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

National Nuclear Security Administration (sec. 3101)
      The House bill contained a provision (sec. 3101) that 
would authorize $8.0 billion for the National Nuclear Security 
Administration (NNSA).
      The Senate amendment contained a similar provision (sec. 
3101) that would authorize $8.2 billion for the NNSA.
      The conferees agree to include a provision that would 
authorize $8.0 billion for the activities of the NNSA after 
offsets, a reduction of $0.2 million to the budget request. The 
conferees note that each program is authorized at the full 
amount reflected in the individual program line prior to 
offsets. The conferees have reduced program direction accounts 
to reflect the proper accounting for the accrual of civilian 
personnel benefits under current law.
      The budget request included $451.8 million for the high 
energy density physics campaign, of which $237.7 million was 
for operation and maintenance and $214.0 million was for 
construction of the National Ignition Facility (NIF). The 
conferees agree to include $487.5 million for the campaign, an 
increase of $35.7 million above the budget request for 
operation and maintenance to keep the cryogenic target and NIF 
diagnostics work on schedule to support the planned NIF 
ignition schedule, and to support the high average power laser 
and pettawatt laser initiatives.
      The budget request included $194.5 million for the pit 
manufacturing and certification campaign. The conferees agree 
to include $199.5 million, an increase of $5.0 million above 
the budget request to support the Environmental Impact 
Statement for a new pit facility.
      The budget request included $1.7 billion for Readiness in 
Technical Base and Facilities (RTBF) of which $949.9 million 
was for operation of facilities and $37.7 million was for 
special projects. The conferees agree to include $1.0 billion 
for operation of facilities, an increase of $72.0 million above 
the budget request of which $25.0 million is for the Pantex 
facility, $20.0 million is for the Y-12 facility, and $27.0 
million is for the Nevada Test Site for the Center for 
Combating Terrorism. The conferees agree to provide $44.7 
million for special projects, an increase of $6.9 million above 
the budget request for the annual payment to the Los Alamos 
Foundation.
      The budget request included $14.6 million for 
International Nuclear Safety. The conferees agree to include 
$13.1 million, a reduction of $1.5 million to the budget 
request. The conferees do not support work related to the 
operational safety of commercial power reactors outside the 
Former Soviet Union, and that are not Soviet-designed reactors.
Defense environmental management (sec. 3102)
      The House bill contained a provision (sec. 3102) that 
would authorize $7.4 billion for environmental restoration, 
waste management, and other defense activities.
      The Senate amendment contained a provision (sec. 3102) 
that would authorize $6.8 billion for defense environmental 
management activities and a provision (sec. 3104) that would 
authorize $158.4 million for defense environmental management 
privatization.
      The conferees agree to authorize $6.7 billion for defense 
environmental management, including defense environmental 
privatization, an increase of $151.8 million above the budget 
request. The conferees note that each program is authorized at 
the full amount reflected in the individual program line prior 
to offsets. The conferees have reduced program direction 
accounts to reflect the proper accounting for the accrual of 
civilian personnel benefits under current law to reflect the 
civil service accrual adjustment.
      The budget request included $800.0 million for 
environmental management cleanup reform. An amended budget 
request included an additional $300.0 million. The conferees 
agree to include $982.0 million, an increase of $182.0 million 
above the budget request. The conferees note that this will 
fully fund the Department of Energy commitments to defense 
sites. In addition, the conferees have included a new 
construction line item within the environmental management 
cleanup reform account that would provide $8.8 million for 
project engineering and design funds, including $7.5 million 
for design of the salt waste processing facility, and $1.3 
million for design of an additional glass waste storage 
building. Both projects are at the Savannah River Site.
      The budget request included $1.1 billion for defense 
facilities closure projects. The conferees agree to authorize 
$1.1 billion, an increase of $18.0 million above the budget 
request, for increased security costs at the Rocky Flats Site.
Other defense activities (sec. 3103)
      The Senate amendment contained a provision (sec. 3103) 
that would authorize $489.9 million for other defense 
activities.
      The House bill contained a provision (sec. 3102) that 
would authorize $7.4 billion for environmental and other 
defense activities including $457.7 million for other defense 
activities.
      The conferees agree to authorize $462.7 million, a 
decrease of $9.5 million to the budget request. The conferees 
note that each program is authorized at the full amount 
reflected in the individual program line prior to offsets. The 
conferees have reduced program direction accounts to reflect 
the proper accounting for the accrual of civilian personnel 
benefits under current law.
      The budget request included $99.9 million for 
environment, safety and health. The conferees agree to 
authorize $99.0 million. In addition to the $13.9 million 
contained in the budget request for enhanced medical screening, 
the conferees agree that an additional $2.5 million shall be 
available for a total of $16.4 million for enhanced medical 
screening of current and former workers at Department of Energy 
(DOE) nuclear facilities, including the three gaseous diffusion 
plants. The conferees believe DOE should promptly take the 
steps necessary to ensure that medical screening, including the 
use of advanced techniques for early lung cancer detection, is 
made available to current and former workers. The conferees 
encourage DOE to request sufficient funds in the future to 
conduct medical screening on all current and former workers who 
wish to have the screening.
      The budget request included $25.8 million for the office 
of worker and community transition. The conferees include $19.7 
million, a reduction of $6.1 million to the budget request.
Defense nuclear waste disposal (sec. 3104)
      The Senate amendment contained a provision (sec. 3105) 
that would authorize $215.0 million for payment to the Nuclear 
Waste Fund (NWF) established by the Nuclear Waste Policy Act of 
1982 (42 U.S.C. 10222(c)).
      The House bill contained a provision (sec. 3102) that 
would authorize $7.4 billion for environmental and other 
defense activities including $315.0 million for the payment to 
the NWF.
      The conferees agree to authorize $315.0 million for the 
payment to the NWF, the amount of the budget request.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Annual assessments and reports to the President and Congress regarding 
        the condition of the United States nuclear weapons stockpile 
        (sec. 3141)
      The House bill contained a provision (sec. 3144) that 
would require an annual certification process regarding the 
safety, reliability, and performance of the U.S. nuclear 
stockpile. No later than January 15 of each year, the directors 
of the national laboratories and the Commander in Chief of the 
Strategic Command would be required to submit to the Secretary 
of Energy and the Secretary of Defense, respectively, a 
certification regarding the safety, reliability, and 
performance of each nuclear weapon type in the active stockpile 
of the United States for which each official is responsible. No 
later than February 1 of each year, the secretaries would be 
required to submit to the President and the Congress each 
certification and report that they received together with any 
other information. The provision would also require that the 
head of each national laboratory would constitute and use a 
``red team'' as part of the certification process to subject to 
challenge and provide peer review of matters in the 
certification. In addition, the head of each national 
laboratory and the Commander in Chief of the Strategic Command 
would each submit, with the certification, a report that would 
assess the Department of Energy stockpile stewardship program.
      The Senate amendment contained no similar provision.
      The Senate recedes with a number of clarifying 
amendments. The conferees intend that this provision should 
generally reflect the ongoing annual certification process of 
the active stockpile with the addition of the ``red teams'', 
including the participation of the Nuclear Weapons Council. The 
heads of the national security laboratories and the Commander 
in Chief of the Strategic Command would be required to submit 
their reports to the Secretary of Energy and the Secretary of 
Defense, respectively, and to the Nuclear Weapons Council by 
December 1 of each year beginning in 2003. The Secretaries of 
Energy and Defense would be required to submit their reports to 
the President by March 1 of each year beginning in 2004. The 
President would be required to submit his report, together with 
all reports required to be submitted to him, to Congress by 
March 15 of each year beginning in 2004. Each of the various 
reports would be required to be submitted in classified form 
but with each portion of the report marked to show its specific 
classification level.
      The conferees note that the various reports should be 
brief and concise.
Plans for achieving enhanced readiness posture for resumption by the 
        United States of underground nuclear weapons tests (sec. 3142)
      The House bill contained a provision (sec. 3145) that 
would require the Secretary of Energy to submit to Congress 
with the fiscal year 2004 budget request a report on a plan and 
a budget to enhance underground nuclear test readiness. The 
report would detail the plan and budget required to achieve a 
one-year readiness posture for resumption of underground 
nuclear weapons tests.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Energy to submit to Congress with the fiscal 
year 2004 budget request a report on plans and cost estimates 
for achieving and maintaining test readiness postures of six, 
12, 18, and 24 months. In addition, the report would include an 
assessment of the current test readiness posture of the United 
States and a recommendation by the Secretary in conjunction 
with the Secretary of Defense as to the optimal readiness 
posture for the United States. The conferees encourage the 
Secretary of Energy to submit plans for achieving and the cost 
of achieving and maintaining the recommended test readiness 
posture with, or as part of, the report required by the 
provision.
Requirements for specific request for new or modified nuclear weapons 
        (sec. 3143)
      The Senate amendment contained a provision (sec. 3134) 
that would require the Secretary of Energy specifically to 
request funds before beginning research and development and 
engineering and production activities to support any new or 
modified nuclear weapon to meet a new military requirement. The 
provision would require a specific request in a specific line 
item or items at two distinct points in time for any work on 
new or modified nuclear weapons. This requirement is consistent 
with past practices at the Department of Energy (DOE), similar 
to current acquisition practices for major weapons systems at 
the Department of Defense (DOD), and similar to the way DOE 
budgets for construction projects.
      A new weapon would be defined by the provision as any 
weapon that contains a pit or canned subassembly which is not 
in the stockpile or not in production on the date of enactment 
of this Act.
      The provision would require funding for all research and 
development activity leading to and including phase 1, 2, and 
2A, for new nuclear weapons, and for all research and 
development activity leading to and including phase 6.1, 6.2 
and 6.2A for modified nuclear weapons, be requested in a 
dedicated line item for each such activity. Funding for work at 
phase 3 or 6.3 and beyond would be required to be in a single 
line item for each new or modified nuclear weapon.
      The provision would not apply to the nuclear weapon 
stockpile life extension programs (SLEPs), to modification of 
an existing nuclear weapon solely to address safety or 
reliability concerns; or to modifications that would address 
proliferation concerns.
      The provision would not be construed to modify, repeal, 
or in any way affect the provisions of section 3136 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103- 160).
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the budget request for any research and development 
activities for modifications to nuclear weapons at the 6.2A 
phase and earlier, and research and development activities for 
new nuclear weapons at the 2A phase and earlier, would be 
aggregated in a single line.
      The conferees agree that nothing in this section may be 
construed to modify, repeal, or in any way affect the 
provisions of section 3136 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160) 
relating to prohibitions on research and development of low-
yield nuclear weapons.
Database to track notification and resolution phases of Significant 
        Finding Investigations (sec. 3144)
      The Senate amendment contained a provision (sec. 3133) 
that would establish at the national laboratories of the 
National Nuclear Security Administration (NNSA) a database to 
track the notification and resolution phases of significant 
finding investigations (SFIs). The provision would require the 
Administrator of the NNSA to develop and implement a 
laboratory-wide database to monitor the laboratories' progress 
on resolving SFIs. The Department of Energy's Inspector General 
(DOE-IG) recommended a central SFI tracking system in a 
December 2001 report. The DOE-IG determined that DOE was 
plagued with a system that frequently missed self-imposed time 
frames for initiating and conducting investigations of defects 
and malfunctions in nuclear weapons. The committee believes 
that DOE should place a high priority on correcting this 
problem.
      The House bill contained no similar provision.
      The House recedes.
Defense environmental management cleanup reform program (sec. 3145)
      The House bill contained a provision (sec. 3151) that 
would require the Secretary of Energy to carry out a program to 
reform Department of Energy (DOE) environmental management 
activities using the funds for the reform account authorized 
under section 3102(a) of the House bill. The funds would be 
transferred to and merged with accounts for DOE environmental 
management activities. Upon transfer and merger of the funds, 
all funds in the merged account would be available to carry out 
the site performance management plan at each site. The 
Secretary would be authorized to transfer the merged funds, 
which include the reform account funds, to each site upon the 
execution of a site performance management plan and its 
submission to the congressional defense committees. The 
provision would also define ``DOE environmental management 
activities'' as environmental restoration and waste management 
activities of the Department of Energy in carrying out programs 
necessary for national security.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
funds in the reform account from being obligated for a 
particular site until 30 days after the Secretary submits to 
the congressional defense committees a description of the 
activities to be carried out at that site.
Limitation on obligation of funds for Robust Nuclear Earth Penetrator 
        program pending submission of report (sec. 3146)
      The Senate amendment contained a provision (sec. 3132) 
that would require the Secretary of Defense, in consultation 
with the Secretary of Energy, to submit a report to the 
congressional defense committees no later than February 3, 
2003, on the Robust Nuclear Earth Penetrator (RNEP) that sets 
forth: (1) the military requirements for the RNEP; (2) the 
nuclear weapons employment policy for the RNEP; (3) the 
detailed categories or types of targets that the RNEP is 
designed to hold at risk; and (4) an assessment of the ability 
of conventional weapons to address the same types of categories 
of targets that the RNEP is designed to hold at risk.
      The House bill contained no similar provision.
      The House recedes with an amendment that would fully fund 
the RNEP but prohibit obligation of any fiscal year 2003 funds 
for the RNEP until 30 days after the study is submitted to the 
Committees on Armed Services of the Senate and the House of 
Representatives.

                   Subtitle C--Proliferation Matters

Transfer to National Nuclear Security Administration of Department of 
        Defense's Cooperative Threat Reduction program relating to 
        elimination of weapons grade plutonium production in Russia 
        (sec. 3151)
      The House bill contained a provision (sec. 3142) that 
would transfer to the National Nuclear Security Administration 
(NNSA) the Department of Defense (DOD) Cooperative Threat 
Reduction (CTR) program to eliminate weapons grade plutonium in 
Russia and all associated program funds. The funds transferred 
would remain subject to the limitations applied to such funds 
before the transfer.
      The Senate amendment contained a similar provision (sec. 
3151) that would transfer the program from DOD to the NNSA, 
with all associated program funds but would make the program 
funds available to the NNSA notwithstanding any provision of 
law that limits expenditure of DOD funds. The NNSA could use 
the funds to design, construct, or refurbish, fossil fuel 
energy plants in Russia to provide alternative sources of 
energy to the Russian reactors that produce weapons grade 
plutonium and energy. The funds could also be used for limited 
safety upgrades of the Russian reactor plants to permit safe 
shutdown.
      The Senate amendment also contained a provision (sec. 
3136) that would establish limitations on the funds after they 
were transferred to the NNSA.
      The House recedes with amendments. The conferees agree to 
include a single provision that will transfer the funds for the 
program to eliminate weapons grade plutonium in Russia from DOD 
to the NNSA, removing all prior limitations and establish new 
limitations. The funds would be available to design, refurbish, 
or both, fossil fuel energy plants and to carry out limited 
safety upgrades that would not extend the life of the plants. 
The provision would prohibit the Administrator from obligating 
or expending more than $100.0 million for the program until 30 
days after the Administrator submits a copy of an agreement or 
agreements with the Russian Federation to shut down the three 
plutonium-producing reactors and submits a plan to achieve 
international cost sharing and participation in the program.
      The agreements must specify: (1) a commitment to shut 
down and the date or dates on which the Russian reactors will 
be shut down; (2) the schedule with milestones to shut down 
each reactor; (3) the schedule and milestones for the Russian 
participation in the construction or refurbishment of the 
fossil fuel energy plants; (4) a suitable access arrangement 
for the sites; (5) an arrangement for audit and examination 
procedures; and (6) any cost-sharing arrangements between the 
United States and the Russian Federation.
Repeal of requirement for reports on obligation of funds for programs 
        on fissile materials in Russia (sec. 3152)
      The House bill contained a provision (sec. 3143) that 
would repeal the semi-annual report on the Department of Energy 
fissile Materials Protection, Control, and Accounting (MPC&A) 
program required by section 3131 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
This report is no longer needed as the information is now 
included in the annual MPC&A report.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Expansion of annual reports on status of nuclear materials protection, 
        control, and accounting programs (sec. 3153)
      The Senate amendment contained a provision (sec. 3153) 
that would amend the annual reporting requirement for the 
Department of Energy (DOE) Materials Protection, Control, and 
Accounting (MPC&A) program to include countries other than 
Russia. The DOE MPC&A program works to protect weapons grade 
nuclear materials in the countries of the Former Soviet Union, 
including Russia. The provision would also amend the MPC&A 
report to require the Secretary of Energy to identify the 
nature of the work performed in each country outside of Russia, 
the amount of material secured, the amount of material 
remaining to be secured, and the total amount spent by country.
      The House bill contained no similar provision.
      The House recedes.
Testing of preparedness for emergencies involving nuclear, 
        radiological, chemical, or biological weapons (sec. 3154)
      The Senate amendment contained a provision (sec. 3154) 
that would extend the time that exercises could be carried out 
under the program for testing and improving the responses of 
Federal, State, and local agencies to emergencies involving 
biological, chemical, nuclear, and radiological weapons and 
related materials from five fiscal years, beginning in fiscal 
year 1997, to 17 fiscal years, ending in fiscal year 2013.
      The House bill contained no similar provision.
      The House recedes.
Cooperative program on research, development, and demonstration of 
        technology regarding nuclear or radiological terrorism (sec. 
        3155)
      The Senate amendment contained a provision (sec. 3155) 
that would direct the Administrator of Nuclear Security to 
carry out a program of research and technology for protection 
from nuclear or radiological terrorism in support of homeland 
security and counterterrorism. As part of the program, the 
Administrator would coordinate this program with the Office of 
Homeland Security, the Nuclear Regulatory Commission, the 
Departments of Defense, State, and Commerce, and the 
International Atomic Energy Agency. In addition, the 
Administrator would cooperate with the Russian Federation on 
research and demonstration of these technologies and, where 
feasible, provide assistance to other countries on matters 
relating to nuclear or radiological terrorism. The amendment 
would also authorize the Office of Defense Nuclear 
Nonproliferation in the National Nuclear Security 
Administration to use up to $15.0 million for the development 
of a new generation of radiation detectors for homeland defense 
under this program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct the 
Administrator to establish a cooperative program with the 
Russian Federation on the research, development, and 
demonstration of technologies for protection from and response 
to nuclear or radiological terrorism. The program would conduct 
research on technologies that could be used for the detection, 
identification, assessment, control, and disposition of 
radiological materials that could be used for nuclear 
terrorism. The program would also provide for the demonstration 
of the technologies developed by this program to other 
countries, in cooperation with the Russian Federation. The 
Administrator would be required to coordinate these research, 
development, and demonstration efforts with the Department of 
Energy's Office of Environment, Safety, and Health; the Nuclear 
Regulatory Commission; the Departments of State, Defense, and 
Commerce; and the International Atomic Energy Agency. The 
Administrator would be authorized to use up to $15.0 million to 
carry out the activities under this program.
Matters relating to the International Materials Protection, Control, 
        and Accounting program of the Department of Energy (sec. 3156)
      The Senate amendment contained a provision (sec. 3156) 
that would authorize the Secretary of Energy to expand the 
scope of the International Materials Protection, Control and 
Accounting (MPC&A) program to countries outside Russia and the 
independent states of the Former Soviet Union and require the 
Secretary to notify Congress 30 days after funds are obligated 
for these purposes. The provision would also: (1) authorize the 
Secretary to provide technical assistance to the Secretary of 
State to support his efforts to assist nuclear weapons states' 
nuclear materials security program; (2) require the Secretary 
to develop a plan to accelerate the conversion or return of 
weapons-usable nuclear materials to the country of origin; (3) 
establish within the MPC&A program a radiological dispersal 
device MPC&A program and require a feasibility study on such a 
program; and (4) provide a sense of Congress encouraging 
support of the Convention on Physical Protection of Nuclear 
Materials. The provision would authorize the Office of Defense 
Nuclear Nonproliferation in the National Nuclear Security 
Administration to use up to $5.0 million for these activities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Energy to establish within the MPC&A program a 
new program that would protect, control, and account for 
radiological dispersal device materials. The provision would 
also encourage the Secretary to work cooperatively with the 
Russian Federation to develop a sustainable nuclear materials 
protection, control and accounting system for nuclear materials 
in Russia no later than January 1, 2013. This system should be 
designed to be supported, maintained and operated solely by the 
Russian Federation. In an effort to support this activity, the 
provision would also require the Secretary to work with the 
Russian Federation to identify transparency measures adequate 
to provide the United States with the assurances that the 
program is meeting this goal. Up to $5.0 million may be used to 
carry out the new MPC&A program on radiological dispersal 
device materials activities.
      The conferees expect the United States' support for the 
Russian Federation MPC&A system should be completed and the 
system should be sustainable by Russia no later than January 1, 
2013. The conferees encourage the Secretary to accelerate 
efforts to resolve outstanding transparency issues for the 
MPC&A program to facilitate the required assurances necessary 
to monitor the progress and successes of this important 
national security program.
      The conferees have agreed to divide this provision into 
three provisions (secs. 3156, 3160, 3161).
Accelerated disposition of highly enriched uranium (sec. 3157)
      The Senate amendment contained a provision (sec. 3157) 
that would set forth the sense of Congress that the Secretary 
of Energy, in consultation with the Secretaries of State and 
Defense, develop a comprehensive program to encourage all 
countries with nuclear materials to adhere to or adopt 
International Atomic Energy Agency standards on The Physical 
Protection of Nuclear Material and Nuclear Facilities (INFCIRC/
225/Rev.4) relating to the security of stockpiles of highly 
enriched uranium and plutonium. The provision would also 
authorize the Secretary of Energy to carry out a program with 
the Russian Federation and any other nation with highly 
enriched uranium to pursue options for blending the uranium so 
that the enrichment of uranium U-235 is below 20 percent. As 
part of these options, the Department of Energy (DOE) Material 
Consolidation and Conversion program would be expanded, and the 
Secretary of Energy could provide financial and other 
incentives to Russia for the consolidation of Russian highly 
enriched uranium located throughout the Russian Federation. The 
Secretary would be required to report to Congress no later than 
July 1, 2003, on the status of this program. The provision 
would also permit the Secretary to purchase highly enriched 
uranium or weapons grade plutonium from any country and 
transport it to and store it in the United States. The 
Secretary would be encouraged to establish similar transactions 
between any nation and Russia for storage and blending highly 
enriched uranium. The provision would allow the Secretary to 
pay such nation's transportation costs. Finally, the provision 
would provide that up to $40.0 million could be used to carry 
out the activities in this section.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Energy to pursue a program with the Russian 
Federation on options for blending highly enriched uranium to 
reduce the concentration of U-235 below 20 percent. These 
options would include expanding the Material Consolidation and 
Conversion program within DOE to include additional facilities 
in Russia for blending the highly enriched uranium and 
identifying more centralized secure storage facilities in 
Russia for the secure storage of materials awaiting blend down. 
The conferees note that both the additional blending facilities 
and centralized storage facilities must already have complete 
materials, protection, control and accounting upgrades before 
highly enriched uranium is blended down or stored at these 
facilities. The amendment also states that nothing in this 
program would impact the existing Highly Enriched Uranium 
Disposition Agreement between the United States and Russia and 
that the uranium blended down under this program would not be 
released for sale until the earlier date of either one of the 
following: (1) January 1, 2014; or (2) the date on which the 
Secretary certifies that such uranium can be absorbed into the 
global market without undue disruption to the uranium mining, 
conversion, and enrichment industry in the United States. 
Finally, the amendment would enable up to $10.0 million in 
fiscal year 2003 to be used for activities under this program.
      The conferees direct the Secretary of Energy to provide 
to the congressional defense committees, no later than July 1, 
2003, a report on the status of the program with the Russian 
Federation on options for blending highly enriched uranium so 
that the concentration of U-235 is below 20 percent. The report 
should identify the scope of the program and the implementing 
costs, as well as describe the additional facilities that will 
participate in the expanded material consolidation and 
conversion effort.
Strengthened international security for nuclear materials and security 
        of nuclear operations (sec. 3158)
      The Senate amendment contained a provision (sec. 3159) 
that would require the Secretary of Energy to submit to 
Congress a report on options for an international program to 
develop strengthened security for all nuclear materials and 
safety and security for current nuclear operations. As part of 
the report, the Secretary would consult with the Nuclear 
Regulatory Commission, the Russian Federation, and the 
International Atomic Energy Agency. The report would be due 270 
days after the date of enactment of this Act. The provision 
would also direct the Director of the Office of Nuclear Energy 
Science and Technology and the Secretary to pursue, with the 
Russian Ministry of Atomic Energy, joint programs on the 
development of proliferation-resistant nuclear energy 
technologies, including advanced fuel cycles. In addition, the 
provision would authorize the Secretary to provide assistance 
to nuclear facilities abroad on the interdiction of hostile 
insiders to prevent the disablement of these facilities' vital 
operations. The provision would authorize the Secretary to 
carry out a joint program with the Russian Federation and other 
countries to address and mitigate damage from aircraft impacts 
on nuclear facilities overseas. Finally, the amendment would 
authorize the Secretary of Energy to expand and accelerate the 
programs of the Department of Energy to support the 
International Atomic Energy Agency in its efforts to strengthen 
international nuclear safety and security. Up to $35.0 million 
would be available to carry out these programs in fiscal year 
2003.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Energy to submit to Congress a report on 
options for an international program to develop strengthened 
security for nuclear reactors and associated materials. This 
report would be due 270 days after enactment of this Act. In 
evaluating the options for an international program, the 
Secretary would be required to consult with the Nuclear 
Regulatory Commission and the International Atomic Energy 
Agency on the feasibility and advisability of actions to reduce 
the risks associated with terrorist attacks on nuclear reactors 
outside the United States. The provision would also direct the 
Secretary of Energy to pursue, with the Russian Ministry of 
Atomic Energy, joint programs on the development of 
proliferation-resistant nuclear energy technologies, including 
advanced fuel cycles. Up to $10.0 million would be available 
for implementing this joint program with Russia. Finally, the 
provision would authorize the Secretary to provide technical 
assistance to nuclear facilities abroad on the interdiction of 
hostile insiders at such facilities and efforts to prevent the 
disablement of vital systems at these facilities.
Export control programs (sec. 3159)
      The Senate amendment contained a provision (sec. 3160) 
that would authorize the Secretary of Energy to pursue, in the 
former Soviet Union and regions of concern, principally in 
South Asia, the Middle East, and the Far East, options for 
accelerating programs that assist countries in such regions to 
improve their domestic export control programs for materials, 
technologies, and expertise relevant to the construction or use 
of a nuclear or radiological dispersal device. The amendment 
would authorize up to $5.0 million for this effort.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
authorize the Secretary of Energy, in coordination with the 
Secretary of State, to pursue, in the Former Soviet Union and 
other regions of concern, options for accelerating programs 
that assist countries in these regions to improve their 
domestic export control programs for materials, technologies, 
and expertise relevant to the construction or use of a nuclear 
or radiological dispersal device. Up to $5.0 million may be 
available for carrying out this effort in fiscal year 2003.
Plan for accelerated return of weapons-usable nuclear material (Sec. 
        3160)
      The Senate amendment contained a provision (sec. 3156) 
that would authorize the Secretary of Energy to expand the 
scope of the International Materials Protection, Control and 
Accounting (MPC&A) program to countries outside Russia and the 
independent states of the Former Soviet Union and require the 
Secretary to notify Congress 30 days after funds are obligated 
for these purposes. The provision would also: (1) authorize the 
Secretary to provide technical assistance to the Secretary of 
State to support his efforts to assist nuclear weapons states' 
nuclear materials security programs; (2) require the Secretary 
to develop a plan to accelerate the conversion or return of 
weapons-usable nuclear materials to the country of origin; (3) 
establish within the MPC&A program a radiological dispersal 
device MPC&A program and require a feasibility study on such a 
program; and (4) provide a sense of Congress encouraging 
support of the Convention on Physical Protection of Nuclear 
Materials. The provision would authorize the Office of Defense 
Nuclear Nonproliferation in the National Nuclear Security 
Administration to use up to $5.0 million for these activities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Energy to develop, with the Russian 
Federation, a plan to accelerate the return to Russia of all 
weapons-usable nuclear materials located in research reactors 
and other facilities outside Russia that were supplied by the 
Former Soviet Union. The plan should include the costs and 
schedules associated with assisting these research reactors and 
facilities in transferring highly enriched uranium to Russia 
and providing these facilities and research reactors with MPC&A 
upgrades until the weapons-usable nuclear materials are 
returned to Russia.
Sense of Congress on amendment of Convention on Physical Protection of 
        Nuclear Materials (sec. 3161)
      The Senate amendment contained a provision (sec. 3156) 
that would authorize the Secretary of Energy to expand the 
scope of the International Materials Protection, Control and 
Accounting (MPC&A) program to countries outside Russia and the 
independent states of the Former Soviet Union and require the 
Secretary to notify Congress 30 days after funds are obligated 
for these purposes. The provision would also: (1) authorize the 
Secretary to provide technical assistance to the Secretary of 
State to support his efforts to assist nuclear weapons states' 
nuclear materials security programs; (2) require the Secretary 
to develop a plan to accelerate the conversion or return of 
weapons-usable nuclear materials to the country of origin; (3) 
establish within the MPC&A program a radiological dispersal 
device MPC&A program and require a feasibility study on such a 
program; and (4) provide a sense of Congress encouraging 
support of the Convention on Physical Protection of Nuclear 
Materials. The provision would authorize the Office of Defense 
Nuclear Nonproliferation in the National Nuclear Security 
Administration to use up to $5.0 million for these activities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would set forth 
the sense of Congress that the President should encourage 
amendment of the Convention on the Physical Protection of 
Nuclear Materials to: (1) apply to both domestic and 
international use and transport of nuclear materials; (2) 
incorporate fundamental practices for the physical protection 
of these materials; and (3) address protection against sabotage 
involving nuclear materials.
Sense of Congress on program to secure stockpiles of highly enriched 
        uranium and plutonium (sec. 3162)
      The Senate amendment contained a provision (sec. 3157) 
that would contain a sense of Congress that the Secretary of 
Energy, in consultation with the Secretaries of State and 
Defense, develop a comprehensive program to encourage all 
countries with nuclear materials to adhere to or adopt 
International Atomic Energy Agency standards on The Physical 
Protection of Nuclear Material and Nuclear Facilities (INFCIRC/
225/Rev.4) relating to the security of stockpiles of highly 
enriched uranium and plutonium. The amendment would also 
authorize the Secretary of Energy to carry out a program with 
the Russian Federation and any other nation with highly 
enriched uranium to pursue options for blending the uranium so 
that the uranium of U-235 is below 20 percent. As part of these 
options, the Department's Material Consolidation and Conversion 
program would be expanded, and the Secretary of Energy could 
provide financial and other incentives to Russia for the 
consolidation of Russian highly enriched uranium located 
throughout the Russian Federation. The Secretary would be 
required to report to Congress no later than July 1, 2003, on 
the status of this program. The provision would also permit the 
Secretary to purchase highly enriched uranium or weapons grade 
plutonium from any country and transport it to and store it in 
the United States. Alternatively, the Secretary may encourage a 
similar transaction between any nation and Russia, and the 
Secretary would have the option to pay the nation's costs to 
transport these nuclear materials to Russia as well as the 
blenddown costs. Finally, the provision would enable up to 
$40.0 million to be used to carry out the activities in this 
section.
      The House bill contained no similar provision.
      The House recedes with an amendment that would set forth 
the sense of Congress that the Secretary of Energy, in 
consultation with the Secretaries of State and Defense, develop 
a comprehensive program of activities to encourage all 
countries with nuclear materials to adhere to or adopt 
International Atomic Energy Agency standards on The Physical 
Protection of Nuclear Material and Nuclear Facilities (INFCIR/
225/Rev.4) relating to the security of stockpiles of highly 
enriched uranium and plutonium.

                       Subtitle D--Other Matters

Indemnification of Department of Energy contractors (sec. 3171)
      The Senate amendment contained a provision (sec. 3171) 
that would amend section 170 d.(1)(A) of the Atomic Energy Act 
of 1954, 42 U.S.C. 2210(d)(1)(A), by extending the authority of 
the Department of Energy to extend indemnification coverage to 
its contractors from August 1, 2002 to August 1, 2012.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
authority to December 31, 2004.
Support for public education in the vicinity of Los Alamos National 
        Laboratory, New Mexico (sec. 3172)
      The Senate amendment contained a provision (sec. 3174) 
that would authorize $6.9 million to be paid by the Department 
of Energy (DOE) to the Los Alamos Education Foundation in 
fiscal year 2003. The Foundation was established by section 
3167(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85). The Foundation provides for 
educational support to students and schools in the Los Alamos 
area.
      The provision would also amend section 3136 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107- 107) to allow the National Nuclear Security 
Administration (NNSA) to extend the current contract with the 
Los Alamos Public Schools to provide for cost of living 
adjustments for the school teachers through fiscal year 2013. 
The current contract between the NNSA and the Los Alamos 
schools, pursuant to which this annual payment is made, expires 
at the end of fiscal year 2003. This amendment is necessary to 
allow the NNSA to include the annual payment in its fiscal year 
2004 budget request and in subsequent years' budget requests.
      The budget request for fiscal year 2003 for the NNSA 
includes $8.0 million for the Los Alamos Public Schools to 
offset the cost of living for school teachers teaching in the 
public schools.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
duration of the contract extension to 2005 and that would 
direct the Secretary of Energy, in conjunction with the 
Administrator of the National Nuclear Security Administration, 
to look at alternatives to the annual authorization and 
appropriation process to obtain funds to offset the cost of 
living for school teachers in the Los Alamos Public Schools. 
While the conferees recognize the need for this payment as well 
as the high cost of living in Los Alamos, the conferees urge 
DOE to identify and fund a mechanism to bring this annual 
process to a close in a reasonable amount of time. In exploring 
options, the Secretary should look at a buy-out option in the 
form of several larger payments over a limited number of years 
that would shift these annual payments to the Los Alamos school 
system, to local government, or to some other local entity.
Worker health and safety rules for Department of Energy nuclear 
        facilities (sec. 3173)
      The Senate amendment contained a provision (sec. 3172) 
that would add a new section 234C, following 234B of the Atomic 
Energy Act of 1954 (42 U.S.C. 2282b). This new section would 
authorize the Secretary of Energy to assess civil penalties 
against Department of Energy (DOE) contractors who have entered 
into an agreement of indemnification under section 170d of the 
Atomic Energy Act of 1954, for violation of any regulation 
relating to industrial or construction health and safety 
promulgated by DOE. The provision would also direct the 
Secretary to promulgate industrial and construction health 
safety regulations that incorporate the provisions of DOE Order 
No. 440.1A (1998) no later than 270 days from the date of 
enactment of this Act. These regulations would go into effect 
one year after the date of promulgation of the regulations. The 
provision would cap any fines at $0.1 million per violation and 
would direct the Secretary to provide in the regulations a 
variance and exemption process for national security related 
work and at sites and facilities to be closed or transferred. 
The provision would cap total fines and penalties under 234A, 
234B, and 234C, for nonprofit contractors so that the total 
fees assessed would not exceed the amount of the annual fee 
paid by DOE. Activities under the Naval Nuclear Propulsion 
Program would be excluded from the program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct the 
Secretary to promulgate regulations for industrial and 
construction health and safety. The regulations promulgated 
would provide a level of protection for workers that is 
substantially equivalent to current levels of protection. The 
conferees note that the DOE contractors currently operate under 
DOE order 440.1A (1998) which provides an adequate level of 
safety.
      The Secretary would also be required to establish a 
mechanism to provide flexibility to implement the regulations. 
The regulations should establish a process that would allow 
sites to implement the regulations to account for unique site 
or mission circumstances or particular work environments and 
would include national security missions and requirements at 
closing facilities. In establishing a process for flexible 
implementation, the Secretary should ensure that there is no 
diminution of worker health and safety.
      The provision would direct the Secretary to assess either 
civil penalties or contract penalties, but not both, for any 
individual action and would prohibit the Secretary from 
assessing a penalty under both 234A and 234C for the same 
action. The maximum fine for each violation would be $70,000.
Extension of authority to appoint certain scientific, engineering, and 
        technical personnel (sec. 3174)
      The conferees agree to include a provision that would 
extend the current Department of Energy authority to appoint 
certain specific scientific engineering and technical personnel 
from September 30, 2002 to September 30, 2004.
One-year extension of panel to assess the reliability, safety, and 
        security of the United States nuclear stockpile (sec. 3175)
      The House bill contained a provision (sec. 3141) that 
would extend the panel to assess the reliability, safety, and 
security of the United States nuclear stockpile through April 
1, 2003. The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the panel to use the extension to assess progress toward 
meeting the expectations set forth by the panel in previous 
reports. The panel would submit to the Committees on Armed 
Services of the Senate and the House of Representatives, by 
February 1, 2003, a report on the assessment, together with any 
recommendations for corrective legislative action where 
progress has been unsatisfactory.
Report on status of environmental management initiatives to accelerate 
        the reduction of environmental risks and challenges posed by 
        the legacy of the Cold War (sec. 3176)
      The House bill contained a provision (sec. 3152) that 
would require the Secretary of Energy to prepare a report on 
the status of environmental initiatives being undertaken to 
accelerate cleanup and reduce environmental risks. The report 
should include a discussion of the progress of such 
initiatives.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Findings (sec. 3181)
      The Senate amendment contained a provision (sec. 3181) 
that would set forth a series of findings with respect to the 
September 2000 agreement between the Russian Federation and the 
United States to manage and dispose of 34 tons of excess 
weapons grade plutonium.
      The House bill contained no similar provision.
      The House recedes.
Disposition of weapons-usable plutonium at Savannah River Site (sec. 
        3182)
      The Senate amendment contained a provision (sec. 3182) 
that would direct the Secretary of Energy to submit, by 
February 1, 2003, a plan to Congress for the construction and 
operation of a Mixed Oxide (MOX) plutonium facility at the 
Savannah River Site. The plan would include a schedule for 
construction and operations to achieve by January 1, 2009, and 
thereafter, the MOX production objective, to ensure that one 
ton of MOX fuel has been produced by December 31, 2009, and 
that all 34 metric tons of defense plutonium and defense 
plutonium materials at the Savannah River Site would have to be 
processed into MOX fuel by January 1, 2019. If in any year the 
Secretary of Energy does not comply with the plan and the 
schedule, the Secretary would have to make economic assistance 
payments to the State of South Carolina at the rate of $1.0 
million per day but not to exceed $100.0 million in any year. 
This payment would be subject to authorization and 
appropriation.
      At various stages in the process, if the Secretary of 
Energy is not in compliance with the plan or any subsequent 
corrective action plans, the Secretary would also have to 
remove all or part of the defense plutonium materials that had 
been shipped to the Savannah River Site in South Carolina.
      If an injunction is obtained by the State of South 
Carolina that would prevent the Department of Energy from 
taking actions necessary to meet the deadlines of the 
provision, any such deadlines would be extended for the period 
of time during which the court-ordered injunction is in effect.
      The provision would also require that if any MOX fuel 
remains at the MOX facility one year after the MOX facility 
ceases operation, the Secretary must submit to Congress a 
report detailing when such fuel would be transferred for use in 
commercial nuclear reactors or a plan for its removal from the 
State of South Carolina.
      The House bill contained no similar provision.
      The House recedes with an amendment providing that any 
requirement to pay economic assistance payments to the State of 
South Carolina may be made from any funds available to the 
Secretary without the requirement for further authorizations or 
appropriations for such payments and an additional MOX 
processing requirement for the period between 2011 and 2017.
Study of facilities for storage of plutonium and plutonium materials at 
        Savannah River Site (sec. 3183)
      The Senate amendment contained a provision (sec. 3183) 
that would require the Defense Nuclear Facilities Safety Board 
(DNFSB) to conduct a study of the adequacy of the K-Area 
Materials Storage (KAMS) facility and related facilities for 
the storage of defense plutonium materials in connection with 
the Department of Energy plutonium disposition program. The 
DNFSB would be required to complete the study and submit a 
report on the study to Congress within one year of the date of 
enactment of this Act. The DNFSB should include in the report 
any proposals to improve the safety, reliability, or 
functionality of the KAMS facility. Not later than six months 
after the report is submitted, the DNFSB and the Secretary of 
Energy shall each submit a report on the actions taken in 
response to the proposals, if any.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

Availability of funds for environmental management cleanup reform
      The Senate amendment contained a provision (sec. 3131) 
that would require the Secretary of Energy to establish and 
publish selection criteria for the environmental management 
cleanup reform account. The provision would also provide the 
Secretary of Energy authority to dissolve the account, in the 
event the Secretary opts not to establish selection criteria, 
and redistribute the funds in the account to the sites and 
projects on a pro rata basis according to fiscal year 2002 
funding levels. In addition, the provision would require the 
Secretary to submit to the congressional defense committees a 
list of the activities at each site that would be funded by 
this account 30 days before such funds were obligated or 
expended.
      The House bill contained no similar provision.
      The Senate recedes.
      The Department of Energy (DOE) budget request for fiscal 
year 2003 included $800.0 million for a new initiative, the 
environmental cleanup reform account. An amended budget request 
sought an additional $300.0 million for a total request of $1.1 
billion. According to the DOE budget justification material, 
the purpose of the new account is ``to enable the Department, 
the States, and the American taxpayer to begin realizing the 
benefits immediately of alternative cleanup approaches that 
will produce more real risk reduction, accelerate cleanup, or 
achieve much needed cost and schedule improvements.''
      DOE has signed letters of intent, for all but $2.0 
million of the $1.1 billion in the cleanup reform account, in 
the absence of any authorization or appropriation of funds for 
the reform account. While the conferees support the idea of 
DOE, the States, and the EPA reviewing the various cleanup 
agreements to ensure that the cleanup at each site is being 
conducted as efficiently as possible, the conferees note that 
DOE has not demonstrated how creation of the reform account 
will accomplish the goal set forth in the fiscal year 2003 
budget justification material.
      The conferees note section 3176 of this Act would require 
the Secretary of Energy to provide a report on the progress 
being made to streamline the cleanup process, reduce 
environmental risks quickly, and to provide an assessment of 
the progress being made to improve the responsiveness and 
effectiveness of the environmental management program. The 
conferees expect DOE to provide in the report evidence that 
this accelerated cleanup program will result in real risk 
reduction and much needed cost and schedule improvements. This 
report is due with the submission of the fiscal year 2004 
budget request for DOE.
Disposition of plutonium in Russia
      The Senate amendment contained a provision (sec. 3158) 
that would encourage the Secretary of Energy to continue to 
support the Secretary of State in negotiations with the 
Ministry of Atomic Energy of the Russia Federation to finalize 
the terms of the Russian plutonium disposition program. As part 
of this support, the Secretary of Energy would be authorized to 
consider using financial incentives to reach a successful 
agreement with the Ministry of Atomic Energy. The amendment 
also identifies various elements that would be required as part 
of the Russian plutonium disposition program including: (1) 
transparent, verifiable steps; (2) proceeding at approximately 
the equivalent rate of the United States program for the 
disposition of plutonium; (3) cost-sharing among various 
countries; (4) contributions by the Russian Federation; (5) 
steps to confirm with high confidence that the disposition of 
plutonium of the Russian Federation will be achieved; and (6) 
possible research on more speculative, long-term options for 
the future disposition of additional Russian plutonium.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that while the Russian plutonium 
disposition program is one of the most critical 
nonproliferation programs underway between the United States 
and the Russian Federation, the conferees remain concerned with 
the slow pace of the Russian program. The conferees believe it 
is imperative that the Secretary of State work as assiduously 
as possible to conclude negotiations with the Russian 
Federation as quickly as possible. The conferees believe, 
however, that any negotiation should include transparent and 
verifiable steps to enable the United States to have the 
necessary assurances that the schedule for the disposition of 
plutonium will be achieved.
      The conferees feel strongly that the program must have 
cost- sharing arrangements among participating countries and 
the Russian Federation.
      In addition, the conferees believe that the U.S. and 
Russian programs should proceed at a rate that is generally 
equivalent to one another. Unfortunately, however, the United 
States program is lagging behind the Russian lead test assembly 
program. The conferees note that pushing forward with the U.S. 
lead test assembly effort will enable the U.S. plutonium 
disposition program to reach an essential milestone that is 
important for the success of both the U.S. plutonium 
disposition program and the Russian disposition plutonium 
program.
      Finally, the conferees direct the Secretary of Energy to 
conduct research on more speculative, long-term options for the 
future disposition of the plutonium of the Russian Federation.
Improvements to nuclear materials protection, control, and accounting 
        program of the Russian Federation
      The Senate amendment contained a provision (sec. 3161) 
that would direct the Secretary of Energy to work with the 
Ministry of Atomic Energy of the Russian Federation to update 
and improve the Joint Action Plan for the Materials Protection, 
Control, and Accounting Program to focus on achieving, as soon 
as practicable, but no later than January 1, 2012, a 
sustainable nuclear materials protection, control, and 
accounting system for the nuclear materials of the Russian 
Federation. The amendment would require the Secretary to work 
with the Russian Federation to accelerate nuclear materials 
protection, control and accounting programs at Russian defense 
nuclear facilities and to identify various transparency 
alternatives to assure the United States that the program is 
meeting the goals for improved nuclear materials protection, 
control, and accounting. The provision would also set forth the 
sense of Congress that the Secretary should enhance its 
partnership with Russia to increase the pace and effectiveness 
of the nuclear materials protection, control, and accounting 
program and identify the assistance, Russian contribution, and 
transparency milestones used to assess progress in this 
program.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to consolidate all matters dealing 
with materials protection, control, and accounting in one 
provision.
One-year extension of authority of Department of Energy to pay 
        voluntary separation incentive payments
      The Senate amendment contained a provision (sec. 3173) 
that would amend section 3161(a) of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) to 
provide a one-year extension of the Department of Energy (DOE) 
authority to make voluntary separation incentive payments. The 
committee is aware that DOE would like to extend the ability to 
encourage voluntary separations and avoid any future need to 
conduct a reduction in force. This provision would allow DOE to 
do long-term planning for reductions as a result of future 
reorganizations.
      The House bill contained no similar provision.
      The Senate recedes.
Prohibition on development of low-yield nuclear weapon
      The House bill contained a provision (sec. 3146) that 
would repeal section 3136 of the National Defense Authorization 
Act for Fiscal Year 1994 (42 U.S.C. 2121 note) and would 
prohibit the Secretary of Energy from conducting development 
which could lead to the production of a low-yield nuclear 
weapon.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees recognize the importance of exercising the 
nuclear weapon design process in order to maintain skills and 
capabilities critical to national security. The conferees 
further understand that many of the Nation's weapon designers 
with actual test experience have retired or will soon be 
eligible for retirement. The conferees believe the National 
Nuclear Security Administration must move aggressively to 
transfer skills to the next generation.
Requirement for authorization by law for funds obligated or expended 
        for Department of Energy national security activities
      The Senate amendment contained a provision (sec. 3135) 
that would amend section 660 of the Department of Energy 
Organization Act, 42 U.S.C. 7270, to add a new subsection that 
would require a specific authorization for national security 
programs and activities at the Department of Energy (DOE) 
before funds may be obligated or expended.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree that section 660 of the Department of 
Energy Organization Act applies to all programs and funds at 
the Department of Energy and that this section established the 
requirement for an authorization of appropriations for all 
programs and activities at DOE as a condition of the obligation 
and expenditure of funds. As a result, the Senate provision, 
which applied to national security activities, is not needed 
because national security activities and programs are already 
included in the scope of section 660.
Utilization of Department of Energy national laboratories and sites in 
        support of counterterrorism and homeland security activities
      The Senate amendment contained a provision (sec. 3163) 
that would authorize the Department of Energy (DOE) to enter 
into joint sponsorship agreements at DOE laboratories with 
state, local, or other federal agencies and establish the 
parameters under which the joint partnership agreements would 
operate.
      The House bill contained no similar provision.
      The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     Legislative Provisions Adopted

Authorization (sec. 3201)
      The House bill contained a provision (sec. 3201) that 
would authorize $19.0 million for the Defense Nuclear 
Facilities Safety Board.
      The Senate amendment contained a similar provision (sec. 
3201) that would authorize $19.5 million.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Authorization of appropriations for the formerly used sites remedial 
        action program of the Corps of Engineers
      The Senate amendment contained a provision (sec. 3202) 
that would authorize $140.0 million for fiscal year 2003 for 
the Department of the Army.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to include these funds without 
specific authorization.

                Title XXXIII--National Defense Stockpile

                     Legislative Provisions Adopted

Authorized uses of National Defense Stockpile funds (sec. 3301)
      The House bill contained a provision (sec. 3301) that 
would authorize $76.4 billion for the National Defense 
Stockpile.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                 Title XXXIV--Naval Petroleum Reserves

                     Legislative Provisions Adopted

Authorization of appropriations (sec. 3401)
      The House bill contained a provision (sec. 3401) that 
would authorize $21.1 million for the Secretary of Energy for 
activities relating to the naval petroleum reserves.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                  Title XXXV--Maritime Administration

                     Legislative Provisions Adopted

Authorization of appropriations for fiscal year 2003 (sec. 3501)
      The House bill contained a provision (sec. 3501) that 
would authorize appropriations for the Maritime Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Authority to convey vessel USS SPHINX (ARL-24) (sec. 3502)
      The House bill contained a provision (sec. 3502) that 
would authorize the Secretary of Transportation to convey an 
obsolete vessel to a nonprofit organization for display as a 
military museum.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
terms under which the vessel could be transferred.
Independent analysis of title XI insurance guarantee applications (sec. 
        3503)
      The House bill contained a provision (sec. 3504) that 
would amend the Merchant Marine Act, 1936 to permit the 
Secretary of Transportation to obtain an independent analysis 
of an application for a title XI loan guarantee.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Preparation as artificial reefs and scrapping of obsolete vessels (sec. 
        3504)
      The House bill contained a provision (sec. 3503) that 
would authorize the Secretary of Transportation to provide 
financial assistance to States to help them prepare obsolete 
vessels transferred from the National Defense Reserve Fleet for 
use as artificial reefs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
require the Secretary and the Administrator of the 
Environmental Protection Agency to jointly develop 
environmental best management practices to be used in the 
preparation of vessels for use as artificial reefs; (2) require 
the establishment of one or more pilot programs to explore the 
feasibility and advisability of various alternatives for 
exporting obsolete vessels in the National Defense Reserve 
Fleet for purposes of the dismantlement and recycling of such 
vessels; and (3) clarify that the section does not establish a 
preference for the reefing or export of obsolete vessels in the 
National Defense Reserve Fleet over other disposal alternatives 
(such as domestic scrapping) available to the Secretary under 
existing law. The pilot programs established pursuant to this 
section would be authorized to include a total of no more than 
four vessels. The conferees intend that the Secretary of 
Transportation would have the discretion to choose which 
vessels to include in the pilot programs.

             Title XXXVI--Atomic Energy Defense Provisions

Short title (sec. 3601)
      The House bill contained a provision (sec. 3120) that 
would set out the title of the Department of Energy National 
Security Authorizations General Provisions Act and define terms 
to be used in the Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment that would 
establish the name of the act as the Atomic Energy Defense Act.
      Permanent provisions of law affecting the Department of 
Defense are included in title 10, United States Code. Several 
acts, such as the Department of Energy Organization Act Public 
Law 95-91, and the Atomic Energy Act of 1954, Public Law 83-
703, provide various overarching legal authorities for the 
Department of Energy (DOE), but there is no act or even a 
single title or chapter in the United States Code where all 
permanent provisions of law governing the national security 
functions of the Department of Energy can be found.
      Over the years, as the number of provisions has grown, 
researching the various provisions that are included in annual 
defense authorization acts has become increasingly difficult. 
The conferees believe the time has come to enact a law that 
will be a comprehensive collection of the various permanent 
authorities that govern the national security activities of 
DOE. The goal is to have a single place in the United States 
Code where these provision could be easily and quickly 
referenced.
      The provisions described in sections 3601 and 3620-3631 
will constitute the first sections of title B of the Atomic 
Energy Defense Act, the DOE National Security Authorizations 
General Provisions. Over the next several fiscal years, the 
conferees, working with DOE, hope to reenact various provisions 
of current law as sections of this new act. In addition, as 
future provisions are enacted, the conferees anticipate that 
such new provisions would also be included in the new act. The 
conferees believe this effort to organize and co-locate the 
various provisions will simplify efforts to identify various 
statutory authorities that govern DOE.

                     Legislative Provisions Adopted

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorization 
                           General Provisions

Definitions (sec. 3620)
      The House bill contained a provision (sec. 3120) that 
would set out the title of the Department of Energy National 
Security Authorizations General Provisions Act and define terms 
to be used in the Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Reprogramming (sec. 3621)
      The House bill contained a provision (sec. 3121) that 
would prohibit the reprogramming of funds in excess of the 
amounts authorized for national security programs until the 
Secretary of Energy has notified the congressional defense 
committees and a period of 30 days has elapsed after the date 
on which the notification is received.
      The Senate amendment contained a similar provision (sec. 
3121) that would prohibit the reprogramming of funds in excess 
of 115 percent of the amount authorized for the program or in 
excess of $5.0 million above the amount authorized for the 
program, whichever is less, until the Secretary of Energy 
submits a report to the congressional defense committees and a 
period of 30 days has elapsed after the date on which the 
report is received.
      The House recedes with an amendment that would make the 
provision part of Subtitle B, the Department of Energy National 
Security Authorizations General Provisions, of the Atomic 
Energy Defense Act.
Minor construction projects (sec. 3622)
      The House bill contained a provision (sec. 3122) that 
would provide the Secretary of Energy with authority to conduct 
minor construction projects using funds authorized to the 
Secretary pursuant to a Department of Energy national security 
authorization. If at any time during the period of construction 
of any minor construction project, the most current estimated 
cost exceeds the minor construction threshold, the Secretary 
would be required to notify the congressional defense 
committees and provide a report explaining the reasons for the 
cost variation.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Limits on construction projects (sec. 3623)
      The House bill contained a provision (sec. 3123) that 
would permit any construction project to be initiated and 
continued only if the estimated cost for the project does not 
exceed, by 25 percent, the higher of either the amount 
authorized for the project or the most recent total estimated 
cost presented to Congress as justification for such a project. 
The Secretary of Energy would be prohibited from exceeding such 
limits until 30 legislative days after the Secretary submits to 
the congressional defense committees a detailed report setting 
forth the reasons for the increase. This provision would also 
specify that the 25 percent limitation would not apply to 
projects estimated to be a minor construction project under 
$5.0 million.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Fund transfer authority (sec. 3624)
      The House bill contained a provision (sec. 3124) that 
would permit funds authorized for the Department of Energy to 
be transferred to other agencies of the government for 
performance of work for which the funds were authorized and 
appropriated. The provision would permit the merger of such 
transferred funds with the authorizations of the agency to 
which they are transferred. The provision would also limit, to 
no more than five percent of the account, the amount of funds 
authorized by this Act that may be transferred between 
authorization accounts within the Department of Energy.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Conceptual and construction design (sec. 3625)
      The House bill contained a provision (sec. 3125) that 
would limit the Secretary of Energy's authority to request 
construction funding until the Secretary has completed a 
conceptual design. This limitation would apply to construction 
projects with a total estimated cost greater than $5.0 million. 
If the estimated cost to prepare the construction design 
exceeds $600,000, the provision would require the Secretary to 
obtain a specific authorization to obligate such funds. If the 
estimated cost to prepare a conceptual design exceeds $3.0 
million, the provision would require the Secretary to request 
funds for the conceptual design before requesting funds for 
construction. The provision would further require the Secretary 
to submit to Congress a report on each conceptual design 
completed under this provision. The provision would also 
provide an exception to these requirements in the case of an 
emergency.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Authority for emergency planning, design, and construction activities 
        (sec. 3626)
      The House bill contained a provision (sec. 3126) that 
would permit the Secretary of Energy to perform planning and 
design with any funds available to the Department of Energy 
(DOE) pursuant to a DOE national security authorization 
including those funds authorized for advance planning and 
construction design, whenever the Secretary determines such 
activities must proceed expeditiously to protect the public 
health and safety, to meet the needs of national defense, or to 
protect property. The provision would require the Secretary of 
Energy to submit to Congress a report on each construction 
project to be completed under this provision prior to 
exercising the authority that would be provided by this 
provision.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Scope of authority to carry out plant projects (sec. 3627)
      The House bill contained a provision (sec. 3131) that 
would clarify that the authority of the Secretary of Energy to 
carry out plant projects includes authority for maintenance, 
restoration, planning, construction, acquisition, modification 
of facilities, and continuation of projects authorized in prior 
years, and related projects.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Availability of funds (sec. 3628)
      The Senate amendment contained a provision (sec. 3128) 
that would authorize amounts appropriated for operating 
expenses or for plant and capital equipment for the Department 
of Energy (DOE) to remain available until expended. Program 
direction funds would remain available for expenditure until 
the end of fiscal year 2004.
      The House bill contained a similar provision (sec. 3128) 
that would provide that funds authorized to be appropriated to 
the National Nuclear Security Administration are available for 
expenditure for two years with the exception of the funds for 
the Office of the Administrator, which would be available for 
expenditure for one year.
      The House recedes with a technical amendment that would 
provide that funds available to DOE pursuant to a national 
security authorization for program direction are available for 
obligation for one year--until the end of the fiscal year for 
which they are authorized. In addition, this provision would 
become a section in Subtitle B, the Department of Energy 
National Security Authorizations General Provisions Act, of the 
Atomic Energy Defense Act.
Transfer of defense environmental management funds (sec. 3629)
      The House bill contained a provision (sec. 3129) that 
would direct the Secretary of Energy to provide the manager of 
each field office of the Department of Energy with the 
authority to transfer defense environmental management 
activities funds from a program or project under the 
jurisdiction of that office to another such program or project. 
With certain limitations, only one transfer may be made to or 
from any program in one fiscal year, and no transfer may exceed 
$5.0 million. The Secretary of Energy would be required to 
notify Congress within 30 days after any such transfer.
      The Senate amendment contained a similar provision (sec. 
3129) that would have provided three transfers per year.
      The Senate recedes.
Transfer of weapons activities funds (sec. 3630)
      The House bill contained a provision (sec. 3130) that 
would direct the Secretary of Energy to provide the manager of 
each field office of the Department of Energy with the 
authority to transfer weapons activities funds from a program 
or project under the jurisdiction of that office to another 
such program or project. With certain limitations only one 
transfer may be made to or from any program in one fiscal year, 
and no transfer may exceed $5.0 million. The Secretary of 
Energy would be required to notify Congress within 30 days 
after any such transfer.
      The Senate amendment contained a similar provision (sec. 
3130) that would have provided three transfers per year.
      The Senate recedes.
Funds available for all national security programs of the Department of 
        Energy (sec. 3631)
      The House bill contained a provision (sec. 3127) that 
would authorize, subject to section 3121 of the Department of 
Energy National Security Authorizations General Provisions Act 
and appropriations acts, amounts appropriated for management 
and support activities and for general plant projects to be 
made available for use in connection with all national security 
programs of the Department of Energy.
      The Senate amendment contained a similar provision.
      The Senate recedes.

                From the Committee on Armed Services, for 
                consideration of the House amendment and the 
                Senate amendment, and modifications committed 
                to conference:
                                   Bob Stump,
                                   Duncan Hunter,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   John M. McHugh,
                                   Terry Everett,
                                   Howard P. ``Buck'' McKeon,
                                   J.C. Watts, Jr.,
                                   Mac Thornberry,
                                   John N. Hostettler,
                                   Saxby Chambliss,
                                   Walter B. Jones,
                                   Van Hilleary,
                                   Lindsey Graham,
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Lane Evans,
                                   Martin T. Meehan,
                                   Robert A. Underwood,
                                   Thomas Allen,
                                   Silvestre Reyes,
                                   Jim Turner,
                                   Ellen O. Tauscher,
                From the Permanent Select Committee on 
                Intelligence, for consideration of matters 
                within the jurisdiction of that committee under 
                clause 11 of rule X:
                                   Porter J. Goss,
                                   Doug Bereuter,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 341-343, 
                and 366 of the House amendment, and secs. 331-
                333, 542, 656, 1064, and 1107 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Johnny Isakson,
                                   Joe Wilson,
                                   George Miller,
                From the Committee on Government Reform, for 
                consideration of secs. 323, 804, 805, 1003, 
                1004, 1101-1106, 2811, and 2813 of the House 
                amendment, and secs, 241, 654, 817, 907, 1007-
                1009, 1061, 1101-1106, 2811, and 3173 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Dan Burton,
                                   Dave Weldon,
                From the Committee on International Relations, 
                for consideration of secs. 1201, 1202, 1204, 
                title XIII, and sec. 3142 of the House 
                amendment, and subtitle A of title XII, secs. 
                1212-1216, 3136, 3151, and 3156-3161 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Henry Hyde,
                                   Benjamin A. Gilman,
                From the Committee on the Judiciary, for 
                consideration of secs. 811 and 1033 of the 
                House amendment, and secs. 1067 and 1070 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Lamar Smith,
                From the Committee on Resources, for 
                consideration of secs. 311, 312, 601, title 
                XIV, secs. 2821, 2832, 2841, and 2863 of the 
                House amendment, and secs. 601, 2821, 2823, 
                2828, and 2841 of the Senate amendment, and 
                modifications committed to conference:
                                   John J. Duncan, Jr.,
                From the Committee on Science, for 
                consideration of secs. 244, 246, 1216, 3155, 
                3163 of the Senate amendment, and modifications 
                committed to conference:
                                   Sherwood L. Boehlert,
                                   Nick Smith,
                                   Ralph M. Hall,
                From the Committee on Small Business for 
                consideration of secs. 243, 824, and 829 of the 
                Senate amendment and modifications committed to 
                conference:
                                   Donald A. Manzullo,
                                   Sue Kelly,
                From the Committee on Transportation and 
                Infrastructure, for consideration of sec. 601 
                of the House amendment, and secs. 601 and 1063 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Don Young,
                                   Frank A. LoBiondo,
                                   Corrine Brown,
                From the Committee on Veterans' Affairs, for 
                consideration of secs. 641, 651, 721, 723, 724, 
                726, 727, and 728 of the House amendment, and 
                secs. 541 and 641 of the Senate amendment, and 
                modifications committed to conference:
                                   Chris Smith,
                                 Managers on the Part of the House.

                                   Carl Levin,
                                   Ted Kennedy,
                                   Robert C. Byrd,
                                   Joseph I. Lieberman,
                                   Max Cleland,
                                   Mary L. Landrieu,
                                   Jack Reed,
                                   Daniel K. Akaka,
                                   Bill Nelson,
                                   Ben Nelson,
                                   Jean Carnahan,
                                   Mark Dayton,
                                   Jeff Bingaman,
                                   John W. Warner,
                                   Strom Thurmond,
                                   John McCain,
                                   James M. Inhofe,
                                   Pat Roberts,
                                   Jeff Sessions,
                                   Susan Collins,
                                   Jim Bunning,
                                Managers on the Part of the Senate.

                                
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