[House Report 109-702]
[From the U.S. Government Publishing Office]





109th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                109-702
_______________________________________________________________________

                                     



               JOHN WARNER NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2007

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 5122

                                     


                                     

               September 29, 2006.--Ordered to be printed











                            C O N T E N T S

                               __________
                                                                   Page
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   459
Title I--Procurement.............................................   459
        Procurement overview.....................................   459
    Budget Items.................................................   461
        Aircraft Procurement, Army overview......................   461
        Missile Procurement, Army overview.......................   465
        Procurement of Weapons and Tracked Combat Vehicles, Army 
          overview...............................................   468
        Procurement of Ammunition, Army overview.................   472
        Other Procurement, Army overview.........................   476
        Aircraft Procurement, Navy overview......................   487
        Weapons Procurement, Navy overview.......................   492
        Procurement of Ammunition, Navy and Marine Corps overview   496
        Shipbuilding and Conversion, Navy overview...............   499
        Other Procurement, Navy overview.........................   502
        Procurement, Marine Corps overview.......................   512
        Aircraft Procurement, Air Force overview.................   518
        Procurement of Ammunition, Air Force overview............   525
        Missile Procurement, Air Force overview..................   528
        Other Procurement, Air Force overview....................   532
        Procurement, Defense-wide overview.......................   539
        National Guard and Reserve Equipment.....................   545
    Items of Special Interest....................................   547
        Battleship transfer......................................   547
        Study on replacement of the T-38 training aircraft.......   548
    Subtitle A--Authorization of Appropriations..................   548
        Authorization of appropriations (secs. 101-104)..........   548
    Subtitle B--Army Programs....................................   548
        Sense of Congress on future multiyear procurement 
          authority for the Family of Medium Tactical Vehicles 
          (sec. 111).............................................   548
        Multiyear procurement authority for MH-60R helicopter and 
          mission equipment (sec. 112)...........................   549
        Funding profile for modular force initiative of the Army 
          (sec. 113).............................................   549
        Bridge to Future Networks Program (sec. 114).............   550
        Comptroller General report on the contract for the Future 
          Combat Systems program (sec. 115)......................   550
        Priority for allocation of replacement equipment to 
          operational units based on combat mission deployment 
          schedule (sec. 116)....................................   550
    Subtitle C--Navy Programs....................................   551
        CVN-21 class aircraft carrier procurement (sec. 121).....   551
        Adherence to Navy cost estimates for CVN-21 class of 
          aircraft carriers (sec. 122)...........................   551
        Modification of limitation on total cost of procurement 
          of CVN-77 aircraft carrier (sec. 123)..................   552
        Construction of first two vessels under the DDG-1000 
          Next-Generation Destroyer program (sec. 124)...........   552
        Adherence to Navy cost estimates for LHA Replacement 
          amphibious assault ship program (sec. 125).............   553
        Cost limitation for San Antonio (LPD-17) class amphibious 
          ship program (sec. 126)................................   554
        Multiyear procurement authority for V-22 tiltrotor 
          aircraft program (sec. 127)............................   555
        Alternative technologies for future surface combatants 
          (sec. 128).............................................   555
        Sense of Congress regarding the size of the attack 
          submarine force (sec. 129).............................   555
        Quality control in procurement of ship critical safety 
          items and related services (sec. 130)..................   556
    Subtitle D--Air Force Programs...............................   556
        Bomber force structure (sec. 131)........................   556
        Strategic airlift force structure (sec. 132).............   557
        Limitation on retirement of U-2 aircraft (sec. 133)......   557
        Limitation on retirement of KC-135E aircraft during 
          fiscal year 2007 (sec. 135)............................   558
        Limitation on retirement of F-117A aircraft during fiscal 
          year 2007 (sec. 136)...................................   558
        Limitation on retirement of C-130E tactical airlift 
          aircraft (sec. 137)....................................   559
        Procurement of Joint Primary Aircraft Training System 
          aircraft after fiscal year 2006 (sec. 138).............   559
        Minuteman III intercontinental ballistic missiles 
          modernization (sec. 139)...............................   559
    Subtitle E--Joint and Multi-Service..........................   560
        Clarification of limitation on initiation of new unmanned 
          aerial vehicle systems (sec. 141)......................   560
    Legislative Provisions Not Adopted...........................   560
        Reports on Army modularity initiative....................   560
        Funding for the Call for Fire Trainer/Joint Fires and 
          Effects Trainer System.................................   561
        Air Force program........................................   561
        Multi-spectral imaging capabilities......................   561
Title II--Research, Development, Test, and Evaluation............   561
        Budget Items.............................................   561
        Research, Development, Test, and Evaluation overview.....   561
        Research, Development, Test, and Evaluation, Army 
          overview...............................................   563
        Research, Development, Test, and Evaluation, Navy 
          overview...............................................   579
        Sea Fighter (X-Craft)....................................   595
        Research, Development, Test, and Evaluation, Air Force 
          overview...............................................   595
        Transformational satellite communications................   610
        Space Radar..............................................   610
        Combatant commanders' integrated command and control 
          system.................................................   611
        Research, Development, Test, and Evaluation, Defense-wide 
          overview...............................................   612
        National Defense Education Program.......................   627
        Printed circuit board supply chain.......................   627
        Joint modeling, simulation, and experimentation..........   627
        Ballistic Missile Defense................................   628
            Ground-based Midcourse Ballistic Missile Defense.....   628
            Aegis Ballistic Missile Defense......................   629
            Arrow Ballistic Missile Defense System...............   629
            Kinetic Energy Interceptor...........................   630
        Space Tracking and Surveillance System...................   630
        Products.................................................   630
        Systems Core.............................................   630
        Special Programs.........................................   630
        Multiple Kill Vehicle....................................   631
        Operationally responsive space capabilities..............   631
        Operational Test and Evaluation, Defense overview........   631
    Item of Special Interest.....................................   633
        Proposed realignment of Air Force test and evaluation 
          facilities.............................................   633
    Subtitle A--Authorization of Appropriations..................   634
        Authorization of appropriations (sec. 201)...............   634
        Amount for defense science and technology (sec. 202).....   634
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   634
        Acquisition of, and independent cost analyses for, the 
          Joint Strike Fighter propulsion system (sec. 211)......   634
        Expansion and extension of authority to award prizes for 
          advanced technology achievements (sec. 212)............   635
        Defense Acquisition Challenge Program extension, 
          enhancement, and modification to address critical cost 
          growth threshold breaches in major defense acquisition 
          programs (sec. 213)....................................   635
        Future Combat Systems milestone review (sec. 214)........   636
        Dedicated amounts for implementing or evaluating Navy 
          shipbuilding technology proposals under Defense 
          Acquisition Challenge Program (sec. 215)...............   636
        Independent estimate of costs of the Future Combat 
          Systems (sec. 216).....................................   637
        Funding of defense science and technology programs (sec. 
          217)...................................................   637
        Hypersonics development (sec. 218).......................   637
        Report on program for replacement of nuclear warheads on 
          certain Trident sea-launched ballistic missiles with 
          conventional warheads (sec. 219).......................   638
    Subtitle C--Missile Defense Programs.........................   638
        Fielding of ballistic missile defense capabilities (sec. 
          221)...................................................   638
        Limitation on use of funds for space-based interceptor 
          (sec. 222).............................................   638
        Policy of the United States on priorities in the 
          development, testing, and fielding of missile defense 
          capabilities (sec. 223)................................   639
        One-year extension of Comptroller General assessments of 
          ballistic missile defense programs (sec. 224)..........   640
        Submittal of plans for test and evaluation of the 
          operational capability of the Ballistic Missile Defense 
          System (sec. 225)......................................   640
        Annual reports on transition of ballistic missile defense 
          programs to the military departments (sec. 226)........   640
    Subtitle D--Other Matters....................................   640
        Policies and practices on test and evaluation to address 
          emerging acquisition approaches (sec. 231).............   640
        Extension of requirement for Global Research Watch 
          Program (sec. 232).....................................   641
        Sense of Congress on technology sharing of Joint Strike 
          Fighter technology (sec. 233)..........................   641
        Report on vehicle-based active protection systems for 
          certain battlefield threats (sec. 234).................   641
    Legislative Provisions Not Adopted...........................   642
        Amount for development and validation of warfighter rapid 
          awareness processing technology........................   642
        Alternate engine for Joint Strike Fighter................   642
        Arrow ballistic missile defense..........................   642
        Independent cost analyses for Joint Strike Fighter engine 
          program................................................   642
        High energy laser low aspect target tracking.............   643
        Advanced Aluminum Aerostructures Initiative..............   643
        Legged mobility robotic research.........................   643
        Wideband digital airborne electronic sensing array.......   643
        Science and technology...................................   643
        High Altitude Airship program............................   644
        Testing and operations for missile defense...............   644
        Report on biometrics programs of the Department of 
          Defense................................................   644
Title III--Operation and Maintenance.............................   645
        Operation and Maintenance overview.......................   645
    Items of Special Interest....................................   684
        C-17 maintenance, sustainment, and modernization.........   684
        Disposal of land at Norwalk Defense Fuel Supply Point, 
          Norwalk, California....................................   684
        Public sale of damaged equipment.........................   684
    Subtitle A--Authorization of Appropriations..................   685
        Authorization of appropriations (secs. 301-303)..........   685
    Subtitle B--Environmental Provisions.........................   685
        Revision of requirement for unexploded ordnance program 
          manager (sec. 311).....................................   685
        Funding of cooperative agreements under environmental 
          restoration program (sec. 312).........................   685
        Response plan for remediation of unexploded ordnance, 
          discarded military munitions, and munitions 
          constituents (sec. 313)................................   685
        Research on effects of ocean disposal of munitions (sec. 
          314)...................................................   686
        Reimbursement of Environmental Protection Agency for 
          certain costs in connection with Moses Lake Wellfield 
          Superfund Site, Moses Lake, Washington (sec. 315)......   687
        Transfer of Government-furnished uranium stored at 
          Sequoyah Fuels Corporation, Gore, Oklahoma (sec. 316)..   687
        Extension of authority to grant exemptions to certain 
          requirements (sec. 317)................................   687
        National Academy of Sciences study on human exposure to 
          contaminated drinking water at Camp Lejeune, North 
          Carolina (sec. 318)....................................   687
    Subtitle C--Program Requirements, Restrictions, and 
      Limitations................................................   688
        Limitation on financial management improvement and audit 
          initiatives within the Department of Defense (sec. 321)   688
        Funds for exhibits for the national museums of the Armed 
          Forces (sec. 322)......................................   688
        Prioritization of funds for equipment readiness and 
          strategic capability (sec. 323)........................   688
        Limitation on deployment.................................   689
    Subtitle D--Workplace and Depot Issues.......................   689
        Permanent exclusion of certain contract expenditures from 
          percentage limitation on the performance of depot-level 
          maintenance (sec. 331).................................   689
        Minimum capital investment for certain depots (sec. 332).   690
        Extension of temporary authority for contractor 
          performance of security guard functions (sec. 333).....   690
    Subtitle E--Reports..........................................   691
        Report on Navy Fleet Response Plan (sec. 341)............   691
        Report on Navy surface ship rotational crew programs 
          (sec. 342).............................................   691
        Report on Army live-fire ranges in Hawaii (sec. 343).....   691
        Comptroller General report on joint standards and 
          protocols for access control systems at Department of 
          Defense installations (sec. 344).......................   692
        Comptroller General report on readiness of Army and 
          Marine Corps ground forces (sec. 345)..................   692
        Report on Air Force safety requirements for Air Force 
          flight training operations at Pueblo Memorial Airport, 
          Colorado (sec. 346)....................................   692
        Annual report on Personnel Security Investigations for 
          Industry and National Industrial Security Program (sec. 
          347)...................................................   692
        Five-year extension of annual report on training range 
          sustainment plan and training range inventory (sec. 
          348)...................................................   693
        Reports on withdrawal or diversion of equipment from 
          reserve units for support of reserve units being 
          mobilized and other units (sec. 349)...................   694
    Subtitle F--Other Matters....................................   694
        Department of Defense strategic policy on prepositioning 
          of materiel and equipment (sec. 351)...................   694
        Authority to make Department of Defense horses available 
          for adoption (sec. 352)................................   694
        Sale and use of proceeds of recyclable munitions 
          materials (sec. 353)...................................   695
        Recovery and transfer to Corporation for the Promotion of 
          Rifle Practice and Firearms Safety of certain firearms, 
          ammunition, and parts granted to foreign countries 
          (sec. 354).............................................   695
        Extension of Department of Defense telecommunications 
          benefit program (sec. 355).............................   695
        Extension of availability of funds for commemoration of 
          success of the Armed Forces in Operation Enduring 
          Freedom and Operation Iraqi Freedom (sec. 356).........   695
        Capital security cost sharing (sec. 357).................   695
        Utilization of fuel cells as back-up power systems in 
          Department of Defense operations (sec. 358)............   696
        Improving Department of Defense support for civil 
          authorities (sec. 359).................................   696
        Energy efficiency in weapons platforms (sec. 360)........   696
        Prioritization of funds within Navy mission operations, 
          ship maintenance, combat support forces, and weapons 
          system support (sec. 361)..............................   696
        Provision of adequate storage space to secure personal 
          property outside of assigned military family housing 
          unit (sec. 362)........................................   697
        Expansion of payment of replacement value of personal 
          property damaged during transport at Government expense 
          (sec. 363).............................................   697
    Legislative Provisions Not Adopted...........................   698
        Limitation on availability of funds for the Army 
          Logistics Modernization Program........................   698
        Limitation on availability of operation and maintenance 
          funds for the management headquarters of the Defense 
          Information Systems Agency.............................   698
        Analysis and report regarding contamination and 
          remediation responsibility.............................   698
        Report regarding scope of perchlorate contamination at 
          Formerly Used Defense Sites............................   698
        Infantry combat equipment................................   699
        Individual First Aid Kit.................................   699
        Reading for the Blind and Dyslexic program of the 
          Department of Defense..................................   699
        Military training infrastructure improvements at Virginia 
          Military Institute.....................................   699
        Environmental documentation for beddown of F-22A aircraft 
          at Holloman Air Force Base, New Mexico.................   699
        Report on CH-47 helicopter reset.........................   700
        Report on nuclear attack submarine depot maintenance.....   700
        Report on actions to reduce Department of Defense 
          consumption of petroleum-based fuel....................   700
        Plan to replace equipment withdrawn or diverted from the 
          reserve components of the Armed Forces for Operation 
          Iraqi Freedom or Operation Enduring Freedom............   701
        Report on High Altitude Aviation Training Site, Eagle 
          County Colorado........................................   701
        Report on use of alternative fuels by the Department of 
          Defense................................................   701
        Additional exception to prohibition on contractor 
          performance of firefighting functions..................   701
        Temporary security guard services for certain work caused 
          by realignment of military installations under the base 
          closure laws...........................................   702
Title IV--Military Personnel Authorizations......................   702
    Subtitle A--Active Forces....................................   702
        End strengths for active forces (sec. 401)...............   702
        Revision in permanent active duty end strength minimum 
          levels (sec. 402)......................................   703
        Additional authority for increases of Army and Marine 
          Corps active duty end strengths for fiscal years 2008 
          and 2009 (sec. 403)....................................   703
    Subtitle B--Reserve Forces...................................   703
        End strengths for Selected Reserve (sec. 411)............   703
        End strengths for Reserves on active duty in support of 
          the reserves (sec. 412)................................   704
        End strengths for military technicians (dual status) 
          (sec. 413).............................................   705
        Fiscal year 2007 limitation on number of non-dual status 
          technicians (sec. 414).................................   705
        Maximum number of reserve personnel authorized to be on 
          active duty for operational support (sec. 415).........   706
    Subtitle C--Authorization of Appropriations..................   706
        Military personnel (sec. 421)............................   706
        Armed Forces Retirement Home (sec. 422)..................   707
Title V--Military Personnel Policy...............................   707
    Item of Special Interest.....................................   707
        Department of Defense oversight of recruiter misconduct..   707
    Subtitle A--Officer Personnel Policy.........................   707
        Part I--Officer Personnel Policy Generally...............   707
            Military status of officers serving in certain 
              intelligence community positions (sec. 501)........   707
            Extension of age for mandatory retirement for active-
              duty general and flag officers (sec. 502)..........   708
            Increased mandatory retirement ages for reserve 
              officers (sec. 503)................................   708
            Standardization of grade of senior dental officer of 
              the Air Force with that of senior dental officer of 
              the Army (sec. 504)................................   708
            Management of chief warrant officers (sec. 505)......   708
            Extension of temporary reduction of time-in-grade 
              requirement for eligibility for promotion for 
              certain active-duty list officers in grades of 
              first lieutenant and lieutenant (junior grade) 
              (sec. 506).........................................   709
            Grade and exclusion from active-duty general and flag 
              officer distribution and strength limitations of 
              officer serving as Attending Physician to the 
              Congress (sec. 507)................................   709
            Modification of qualifications for leadership of the 
              Naval Postgraduate School (sec. 508)...............   709
        Part II--Officer Promotion Policy........................   710
            Revisions to authorities relating to authorized 
              delays of officer promotions (sec. 511)............   710
            Consideration of adverse information by selection 
              boards in recommendations on officers to be 
              promoted (sec. 512)................................   710
            Expanded authority for removal from reports of 
              selection boards of officers recommended for 
              promotion to grades below general and flag grades 
              (sec. 513).........................................   710
            Special selection board authorities (sec. 514).......   711
            Removal from promotion list of officers not promoted 
              within 18 months of approval of list by the 
              President (sec. 515)...............................   711
        Part III--Joint Officer Management Requirements..........   711
            Modification and enhancement of general authorities 
              on management of officers who are joint qualified 
              (sec. 516).........................................   711
            Modification of promotion policy objectives for joint 
              officers (sec. 517)................................   712
            Applicability of joint duty assignment requirements 
              limited to graduates of National Defense University 
              schools (sec. 518).................................   712
            Modification of certain definitions relating to 
              jointness (sec. 519)...............................   712
    Subtitle B--Reserve Component Matters........................   713
        Part I--Reserve Component Management.....................   713
            Recognition of former Representative G.V. `Sonny' 
              Montgomery for his 30 years of service in the House 
              of Representatives (sec. 521)......................   713
            Revisions to reserve call-up authority (sec. 522)....   713
            Military retirement credit for certain service by 
              National Guard members performed while in a State 
              duty status immediately after the terrorist attacks 
              of September 11, 2001 (sec. 523)...................   713
        Part II--Authorities Relating to Guard and Reserve Duty..   714
            Title 10 definition of Active Guard and Reserve duty 
              (sec. 524).........................................   714
            Authority for Active Guard and Reserve duties to 
              include support of operational missions assigned to 
              the reserve components and instruction and training 
              of active-duty personnel (sec. 525)................   714
            Governor's authority to order members to Active Guard 
              and Reserve duty (sec. 526)........................   714
            Expansion of operations of civil support teams (sec. 
              527)...............................................   715
            Modification of authorities relating to the 
              Commission on the National Guard and Reserves (sec. 
              528)...............................................   715
            Additional matters to be reviewed by Commission on 
              the National Guard and Reserves (sec. 529).........   715
    Subtitle C--Education and Training...........................   717
        Part I--Service Academies................................   717
            Expansion of service academy exchange programs with 
              foreign military academies (sec. 531)..............   717
            Revision and clarification of requirements with 
              respect to surveys and reports concerning sexual 
              harassment and sexual violence at the service 
              academies (sec. 532)...............................   717
            Department of Defense policy on service academy and 
              ROTC graduates seeking to participate in 
              professional sports before completion of their 
              active-duty service obligations (sec. 533).........   718
        Part II--Scholarship and Financial Assistance Programs...   718
            Authority to permit members who participate in the 
              guaranteed reserve forces duty scholarship program 
              to participate in the health professions 
              scholarship program and serve on active duty (sec. 
              535)...............................................   718
            Detail of commissioned officers as students at 
              medical schools (sec. 536).........................   718
            Increase in maximum amount of repayment under 
              education loan repayment for officers in specified 
              health professions (sec. 537)......................   719
            Health Professions Scholarship and Financial 
              Assistance Program for Active Service (sec. 538)...   719
        Part III--Junior ROTC Program............................   719
            Junior Reserve Officers' Training Corps instructor 
              qualifications (sec. 539)..........................   719
            Expansion of members eligible to be employed to 
              provide Junior Reserve Officers' Training Corps 
              instruction (sec. 540).............................   720
            Expansion of Junior Reserve Officers' Training Corps 
              program (sec. 541).................................   720
            Review of legal status of Junior ROTC program (sec. 
              542)...............................................   720
        Part IV--Other Education and Training Programs...........   721
            Expanded eligibility for enlisted members for 
              instruction at Naval Postgraduate School (sec. 543)   721
    Subtitle D--General Service Authorities......................   721
        Test of utility of test preparation guides and education 
          programs in enhancing recruit candidate performance on 
          the Armed Services Vocational Aptitude Battery (ASVAB) 
          and Armed Forces Qualification Test (AFQT) (sec. 546)..   721
        Clarification of nondisclosure requirements applicable to 
          certain selection board proceedings (sec. 547).........   722
        Report on extent of provision of timely notice of long-
          term deployments (sec. 548)............................   722
    Subtitle E--Military Justice Matters.........................   722
        Applicability of Uniform Code of Military Justice to 
          members of the Armed Forces ordered to duty overseas in 
          inactive duty for training status (sec. 551)...........   722
        Clarification of application of Uniform Code of Military 
          Justice during a time of war (sec. 552)................   723
    Subtitle F--Decorations and Awards...........................   723
        Authority for presentation of Medal of Honor Flag to 
          living Medal of Honor recipients and to living primary 
          next-of-kin of deceased Medal of Honor recipients (sec. 
          555)...................................................   723
        Review of eligibility of prisoners of war for award of 
          the Purple Heart (sec. 556)............................   723
        Report on Department of Defense process for awarding 
          decorations (sec. 557).................................   724
    Subtitle G--Matters Relating to Casualties...................   724
        Authority for retention after separation from service of 
          assistive technology and devices provided while on 
          active duty (sec. 561).................................   724
        Transportation of remains of casualties dying in a 
          theater of combat operations (sec. 562)................   724
        Annual budget display of funds for POW/MIA activities of 
          Department of Defense (sec. 563).......................   725
        Military Severely Injured Center (sec. 564)..............   725
        Comprehensive review on procedures of the Department of 
          Defense on mortuary affairs (sec. 565).................   725
        Additional elements of policy on casualty assistance to 
          survivors of military decedents (sec. 566).............   725
        Requirement for deploying military medical personnel to 
          be trained in preservation of remains under combat or 
          combat-related conditions (sec. 567)...................   726
    Subtitle H--Impact Aid and Defense Dependents Education 
      System.....................................................   726
        Enrollment in defense dependents' education system of 
          dependents of foreign military members assigned to 
          Supreme Headquarters Allied Powers, Europe (sec. 571)..   726
        Continuation of authority to assist local educational 
          agencies that benefit dependents of members of the 
          Armed Forces and Department of Defense civilian 
          employees (sec. 572)...................................   726
        Impact aid for children with severe disabilities (sec. 
          573)...................................................   727
        Plan and authority to assist local educational agencies 
          experiencing growth in enrollment due to force 
          structure changes, relocation of military units, or 
          base closures and realignments (sec. 574)..............   727
        Pilot program on parent education to promote early 
          childhood education for dependent children affected by 
          military deployment or relocation of military units 
          (sec. 575).............................................   728
    Subtitle I--Armed Forces Retirement Home.....................   728
        Report on leadership and management of the Armed Forces 
          Retirement Home (sec. 578).............................   728
        Report on Local Boards of Trustees of the Armed Forces 
          Retirement Home (sec. 579).............................   729
    Subtitle J--Reports..........................................   729
        Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets 
          (sec. 581).............................................   729
        Report on feasibility of establishment of Military 
          Entrance Processing Command station on Guam (sec. 582).   729
        Inclusion in annual Department of Defense report on 
          sexual assaults of information on results of 
          disciplinary actions (sec. 583)........................   729
        Report on provision of electronic copy of military 
          records on discharge or release of members from the 
          Armed Forces (sec. 584)................................   730
        Report on omission of social security account numbers 
          from military identification cards (sec. 585)..........   730
        Report on maintenance and protection of data held by the 
          Secretary of Defense as part of the Department of 
          Defense Joint Advertising, Market Research and Studies 
          (JAMRS) program (sec. 586).............................   730
        Comptroller General report on military conscientious 
          objectors (sec. 587)...................................   730
    Subtitle K--Other Matters....................................   731
        Report on using six-month deployments for Operation 
          Enduring Freedom and Operation Iraqi Freedom...........   736
        National Guard officers authority to command.............   736
        Cold War Victory Medal...................................   737
        Advancement on the retired list of certain decorated 
          retired Navy and Marine Corps officers.................   737
        Criteria for removal of member from temporary disability 
          retired list...........................................   737
        Modification of time limit for use of entitlement to 
          educational assistance for reserve component members 
          supporting contingency operations and other operations.   737
        Postal benefits program for members of the Armed Forces..   738
        Funding..................................................   738
        Duration.................................................   738
        Sense of Senate on notice to Congress of recognition of 
          members of the Armed Forces for extraordinary acts of 
          bravery, heroism, and achievement......................   738
        Department of Labor Transitional Assistance Program......   738
        Entrepreneurial service members empowerment task force...   740
        Funeral ceremonies for veterans..........................   740
Title VI--Compensation and Other Personnel Benefits..............   741
    Subtitle A--Pay and Allowances...............................   741
        Fiscal year 2007 increase in military basic pay and 
          reform of basic pay rates (sec. 601)...................   741
        Increase in maximum rate of basic pay for general and 
          flag officer grades to conform to increase in pay cap 
          for Senior Executive Service personnel (sec. 602)......   741
        One-year extension of prohibition against requiring 
          certain injured members to pay for meals provided by 
          military treatment facilities (sec. 603)...............   741
        Availability of second basic allowance for housing for 
          certain reserve component or retired members serving in 
          support of contingency operations (sec. 604)...........   742
        Extension of temporary continuation of housing allowance 
          for dependents of members dying on active duty to 
          spouses who are also members (sec. 605)................   742
        Payment of full premium for coverage under 
          Servicemembers' Group Life Insurance program during 
          service in Operation Enduring Freedom or Operation 
          Iraqi Freedom (sec. 606)...............................   742
        Clarification of effective date of prohibition on 
          compensation for correspondence courses (sec. 607).....   742
        Extension of pilot program on contributions to Thrift 
          Savings Plan for initial enlistees in the Army (sec. 
          608)...................................................   743
    Subtitle B--Bonuses and Special and Incentive Pays...........   743
        Extension of certain bonus and special pay authorities 
          for reserve forces (sec. 611)..........................   743
        Extension of certain bonus and special pay authorities 
          for health care professionals (sec. 612)...............   743
        Extension of special pay and bonus authorities for 
          nuclear officers (sec. 613)............................   744
        Extension of authorities relating to payment of other 
          bonuses and special pays (sec. 614)....................   744
        Expansion of eligibility of dental officers for 
          additional special pay (sec. 615)......................   744
        Increase in maximum annual rate of special pay for 
          Selected Reserve health care professionals in 
          critically short wartime specialties (sec. 616)........   744
        Expansion and enhancement of accession bonus authorities 
          for certain officers in health care specialties (sec. 
          617)...................................................   745
        Authority to provide lump sum payment of nuclear officer 
          incentive pay (sec. 618)...............................   745
        Increase in maximum amount of nuclear career accession 
          bonus (sec. 619).......................................   745
        Increase in maximum amount of incentive bonus for 
          transfer between Armed Forces (sec. 620)...............   745
        Additional authorities and incentives to encourage 
          retired members and reserve component members to 
          volunteer to serve on active duty in high-demand, low-
          density assignments (sec. 621).........................   745
        Accession bonus for members of the Armed Forces appointed 
          as commissioned officers after completing officer 
          candidate school (sec. 622)............................   746
        Modification of certain authorities applicable to the 
          targeted shaping of the Armed Forces (sec. 623)........   746
        Enhancement of bonus to encourage certain persons to 
          refer other persons for enlistment in the Army (sec. 
          624)...................................................   747
    Subtitle C--Travel and Transportation Allowances.............   747
        Travel and transportation allowances for transportation 
          of family members incident to illness or injury of 
          members (sec. 631).....................................   747
    Subtitle D--Retired Pay and Survivor Benefits................   747
        Retired pay of general and flag officers to be based on 
          rates of basic pay provided by law (sec. 641)..........   747
        Inapplicability of retired pay multiplier maximum 
          percentage to service of members of the Armed Forces in 
          excess of 30 years (sec. 642)..........................   748
        Military Survivor Benefit Plan beneficiaries under 
          insurable interest coverage (sec. 643).................   748
        Modification of eligibility for commencement of authority 
          for optional annuities for dependents under the 
          Survivor Benefit Plan (sec. 644).......................   748
        Study of training costs, manning, operations tempo, and 
          other factors that affect retention of members of the 
          Armed Forces with special operations designations (sec. 
          645)...................................................   748
    Subtitle E--Commissary and Nonappropriated Fund 
      Instrumentality Benefits...................................   749
        Treatment of price surcharges of certain merchandise sold 
          at commissary stores (sec. 661)........................   749
        Limitations on lease of non-excess Department of Defense 
          property for protection of morale, welfare, and 
          recreation activities and revenue (sec. 662)...........   749
        Report on cost effectiveness of purchasing commercial 
          insurance for commissary and exchange facilities and 
          facilities of other morale, welfare, and recreation 
          programs and nonappropriated fund instrumentalities 
          (sec. 663).............................................   750
        Study and report regarding access of disabled persons to 
          morale, welfare, and recreation facilities and 
          activities (sec. 664)..................................   750
    Subtitle F--Other Matters....................................   750
        Limitations on terms of consumer credit extended to 
          servicemembers and dependents (sec. 670)...............   750
        Exception for notice to consumer reporting agencies 
          regarding debts or erroneous payments pending a 
          decision to waive, remit, or cancel (sec. 672).........   751
        Expansion and enhancement of authority to remit or cancel 
          indebtedness of members and former members of the Armed 
          Forces incurred on active duty (sec. 673)..............   752
        Phased recovery of overpayments of pay made to members of 
          the uniformed services (sec. 674)......................   752
        Joint family support assistance program (sec. 675).......   753
        Special working group on transition to civilian 
          employment of National Guard and Reserve members 
          returning from deployment in Operation Iraqi Freedom or 
          Operation Enduring Freedom (sec. 676)..................   753
        Audit of pay accounts of members of the Army evacuated 
          from a combat zone for inpatient care (sec. 677).......   753
        Report on eligibility and provision of assignment 
          incentive pay (sec. 678)...............................   754
        Sense of Congress calling for payment to World War II 
          veterans who survived Bataan Death March (sec. 679)....   754
    Legislative Provisions Not Adopted...........................   755
        Authority to pay costs associated with delivery of motor 
          vehicle to storage location selected by member and 
          subsequent removal of vehicle..........................   755
        Transportation of additional motor vehicle of members on 
          change of permanent station to or from nonforeign areas 
          outside the continental United States..................   755
        Retroactive payment of additional death gratuity for 
          certain members not previously covered.................   755
        Repeal of requirement of reduction of Survivor Benefit 
          Plan survivor annuities by dependency and indemnity 
          compensation...........................................   755
        Effective date of paid-up coverage under Survivor Benefit 
          Plan...................................................   755
        Equity in computation of disability retired pay for 
          reserve component members wounded in action............   756
        Expansion of conditions for direct payment of divisible 
          retired pay............................................   756
        Authority for cost of living adjustments of retired pay 
          treated as divisible property..........................   756
        Notice and copy to members of court orders on payment of 
          retired pay............................................   757
        Renaming of death gratuity payable for deaths of members 
          of the Armed Forces as fallen hero compensation........   757
        Effective date of termination of phase-in of concurrent 
          receipt for veterans with service-connected 
          disabilities rated as total by virtue of 
          unemployability........................................   757
        Commencement of receipt of non-regular service retired 
          pay by members of the Ready Reserve on active Federal 
          status or active duty for significant periods..........   757
        Use of nonappropriated funds to supplement or replace 
          appropriated funds for construction of facilities of 
          exchange stores system or other nonappropriated fund 
          instrumentalities, military lodging facilities, and 
          community facilities...................................   758
        Pilot program on Troops to Nurse Teachers................   758
        Short title..............................................   759
        Office for employers and employment assistance 
          organizations..........................................   759
        Grants on assistance in community-based settings for 
          members of the National Guard and reserve and their 
          families after deployment in Operation Iraqi Freedom 
          and Operation Enduring Freedom.........................   759
Title VII--Health Care Provisions................................   759
    Subtitle A--TRICARE Program Improvements.....................   759
        TRICARE coverage for forensic examination following 
          sexual assault or domestic violence (sec. 701).........   759
        Authorization of anesthesia and other costs for dental 
          care for children and certain other patients (sec. 702)   760
        Improvements to descriptions of cancer screening for 
          women (sec. 703).......................................   760
        Prohibition on increases in certain health care costs for 
          members of the uniformed services (sec. 704)...........   760
        Demonstration project on coverage of selected over-the-
          counter drugs under the pharmacy benefits program (sec. 
          705)...................................................   760
        Expanded eligibility of Selected Reserve members under 
          TRICARE program (sec. 706).............................   761
        Relationship between the TRICARE program and employer-
          sponsored group health care plans (sec. 707)...........   761
    Subtitle B--Studies and Reports..............................   762
        Department of Defense task force on the future of 
          military health care (sec. 711)........................   762
        Study relating to chiropractic health care services (sec. 
          712)...................................................   763
        Comptroller General audits of Department of Defense 
          health care costs and cost-saving measures (sec. 713)..   763
        Transfer of custody of the Air Force Health Study assets 
          to Medical Follow-up Agency (sec. 714).................   763
        Study on allowing dependents of activated members of 
          reserve components to retain civilian health care 
          coverage (sec. 715)....................................   764
        Study of health effects of exposure to depleted uranium 
          (sec. 716).............................................   764
        Report and plan on services to military dependent 
          children with autism (sec. 717)........................   764
        Comptroller General study on Department of Defense 
          pharmacy benefits program (sec. 718)...................   765
        Review of Department of Defense medical quality 
          improvement program (sec. 719).........................   765
        Report on distribution of hemostatic agents for use in 
          the field (sec. 720)...................................   765
        Longitudinal study on traumatic brain injury incurred by 
          members of the Armed Forces in Operation Iraqi Freedom 
          and Operation Enduring Freedom (sec. 721)..............   765
    Subtitle C--Planning, Programming, and Management............   766
        Standardization of claims processing under TRICARE 
          program and Medicare program (sec. 731)................   766
        Requirements for support of military treatment facilities 
          by civilian contractors under TRICARE (sec. 732).......   766
        Standards and tracking of access to health care services 
          for wounded, injured, or ill servicemembers returning 
          to the United States from a combat zone (sec. 733).....   766
        Disease and chronic care management (sec. 734)...........   767
        Additional elements of assessment of Department of 
          Defense task force on mental health relating to mental 
          health of members who were deployed in Operation Iraqi 
          Freedom and Operation Enduring Freedom (sec. 735)......   767
        Additional authorized option periods for extension of 
          current contracts under TRICARE (sec. 736).............   768
        Military vaccination matters (sec. 737)..................   768
        Enhanced mental health screening services for members of 
          the Armed Forces (sec. 738)............................   769
    Subtitle D--Other Matters....................................   769
        Pilot projects on early diagnosis and treatment of post 
          traumatic stress disorder and other mental health 
          conditions (sec. 741)..................................   769
        Requirement to certify and report on conversion of 
          military medical and dental positions to civilian 
          medical and dental positions (sec. 742)................   770
        Three-year extension of joint incentives program on 
          sharing of health care resources by the Department of 
          Defense and Department of Veterans Affairs (sec. 743)..   770
        Training curricula for family caregivers on care and 
          assistance for members and former members of the Armed 
          Forces with traumatic brain injury (sec. 744)..........   771
    Legislative Provisions Not Adopted...........................   771
        Annual reports on certain medical malpractice cases......   774
        Costs of incentive payments to employees for TRICARE 
          enrollment made unallowable for contractors............   772
        Enrollment in the TRICARE program........................   772
        Incentive payments for the provision of services under 
          the TRICARE program in medically underserved areas.....   773
        Inflation adjustment of differential payments to 
          children's hospitals participating in TRICARE program..   772
        Post deployment health assessments for members of the 
          Armed Forces returning from deployment in support of a 
          contingency operation..................................   773
        Requirement to reimburse certain travel expenses of 
          certain beneficiaries covered by TRICARE for Life......   771
        Services of mental health counselors.....................   771
        Treatment of TRICARE retail pharmacy network under 
          Federal procurement of pharmaceuticals.................   772
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   774
    Subtitle A--Provisions Relating to Major Defense Acquisition 
      Programs...................................................   774
        Requirements management certification training program 
          (sec. 801).............................................   774
        Additional requirements relating to technical data rights 
          (sec. 802).............................................   775
        Study and report on revisions to Selected Acquisition 
          Report requirements (sec. 803).........................   775
        Biannual updates on implementation of acquisition reform 
          in the Department of Defense (sec. 804)................   776
        Additional certification requirements for major defense 
          acquisition programs before proceeding to Milestone B 
          (sec. 805).............................................   776
        Original baseline estimate for major defense acquisition 
          programs (sec. 806)....................................   776
        Lead system integrators (sec. 807).......................   776
    Subtitle B--Acquisition Policy and Management................   777
        Time-certain development for Department of Defense 
          information technology business systems (sec. 811).....   777
        Pilot program on time-certain development in acquisition 
          of major weapon systems (sec. 812).....................   777
        Establishment of Panel on Contracting Integrity (sec. 
          813)...................................................   777
        Linking of award and incentive fees to acquisition 
          outcomes (sec. 814)....................................   778
        Report on defense instruction relating to contractor 
          personnel authorized to accompany Armed Forces (sec. 
          815)...................................................   778
        Major automated information system program (sec. 816)....   779
        Internal controls for procurements on behalf of the 
          Department of Defense by certain non-defense agencies 
          (sec. 817).............................................   779
        Determination of contract type for development programs 
          (sec. 818).............................................   779
        Three-year extension of requirement for reports on 
          commercial price trend analyses of the Department of 
          Defense (sec. 819).....................................   780
        Government performance of critical acquisition functions 
          (sec. 820).............................................   780
    Subtitle C--Amendments to General Contracting Authorities, 
      Procedures, and Limitations................................   780
        One-year extension of special temporary contract closeout 
          authority (sec. 831)...................................   780
        Limitation on contracts for the acquisition of certain 
          services (sec. 832)....................................   780
        Use of Federal supply schedules by State and local 
          governments for goods and services for recovery from 
          natural disasters, terrorism, or nuclear, biological, 
          chemical, or radiological attack (sec. 833)............   781
        Waivers to extend task order contracts for advisory and 
          assistance services (sec. 834).........................   781
    Subtitle D--United States Defense Industrial Base Provisions.   782
        Assessment and annual report of United States defense 
          industrial base capabilities and acquisitions of 
          articles, materials, and supplies manufactured outside 
          the United States (sec. 841)...........................   782
        Protection of strategic materials critical to national 
          security (sec. 842)....................................   782
        Strategic Materials Protection Board (sec. 843)..........   782
    Subtitle E--Other Matters....................................   783
        Report on former Department of Defense officials employed 
          by contractors of the Department of Defense (sec. 851).   783
        Report and regulations on excessive pass-through charges 
          (sec. 852).............................................   783
        Program manager empowerment and accountability (sec. 853)   784
        Joint policies on requirements definition, contingency 
          program management, and contingency contracting (sec. 
          854)...................................................   785
        Clarification of authority to carry out certain prototype 
          projects (sec. 855)....................................   786
        Contracting with employers of persons with disabilities 
          (sec. 856).............................................   786
        Enhanced access for small business (sec. 857)............   786
        Procurement goal for Hispanic-serving institutions (sec. 
          858)...................................................   786
    Legislative Provisions Not Adopted...........................   787
        Adjustment of original baseline estimates for major 
          defense acquisition program experiencing cost growth 
          resulting from damage caused by hurricanes Katrina, 
          Rita, and Wilma........................................   787
        Availability of funds for performance-based logistics 
          contracts for weapons systems logistics support........   787
        Applicability of statutory executive compensation cap 
          made prospective.......................................   787
        Prohibition on procurement from beneficiaries of foreign 
          subsidies..............................................   787
        Removal of hand and measuring tools from certain 
          requirements...........................................   788
        Waiver authority for domestic source or content 
          requirements...........................................   788
        Repeal of requirement for identification of essential 
          military items and military system essential item 
          breakout list..........................................   788
        Consistency with United States obligations under trade 
          agreements.............................................   788
        Prohibition on defense contractors requiring licenses or 
          fees for use of military likenesses and designations...   788
        Report on Department of Defense contracting with 
          contractors or subcontractors employing members of the 
          Selected Reserve.......................................   789
        Pilot program on expanded use of Mentor-Protege authority   789
Title IX--Department of Defense Organization And Management......   790
    Subtitle A--Department of Defense Management.................   790
        Increase in authorized number of assistant secretaries of 
          defense (sec. 901).....................................   790
        Modifications to the Combatant Commander Initiative Fund 
          (sec. 902).............................................   791
        Addition to membership of specified council (sec. 903)...   792
        Consolidation and standardization of authorities relating 
          to Department of Defense Regional Centers for Security 
          Studies (sec. 904).....................................   792
        Oversight by Office of Under Secretary of Defense for 
          Acquisition, Technology, and Logistics of exercise of 
          acquisition authority by combatant commanders and heads 
          of Defense Agencies (sec. 905).........................   792
        Standardization of statutory references to ``national 
          security system'' within laws applicable to Department 
          of Defense (sec. 906)..................................   793
        Correction of reference to predecessor of Defense 
          Information Systems Agency (sec. 907)..................   793
    Subtitle B--Space Activities.................................   793
        Designation of successor organizations for the 
          disestablished Interagency Global Positioning Executive 
          Board (sec. 911).......................................   793
        Extension of authority for pilot program for provision of 
          space surveillance network services to non-United 
          States Government entities (sec. 912)..................   794
        Operationally responsive space (sec. 913)................   794
        Independent review and assessment of Department of 
          Defense organization and management for national 
          security in space (sec. 914)...........................   795
    Subtitle C--Chemical Demilitarization Program................   796
        Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile (sec. 921)...........   796
        Comptroller General review of cost-benefit analysis of 
          off-site versus on-site treatment and disposal of 
          hydrolysate derived from neutralization of VX nerve gas 
          at Newport Chemical Depot, Indiana (sec. 922)..........   796
        Incentives clauses in chemical demilitarization contracts 
          (sec. 923).............................................   796
        Chemical demilitarization program contracting authority 
          (sec. 924).............................................   797
    Subtitle D--Intelligence-Related Matters.....................   797
        Four-year extension of authority of Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities (sec. 931)..........   797
        Annual reports on intelligence oversight activities of 
          the Department of Defense (sec. 932)...................   798
        Collection by National Security Agency of service charges 
          for certification or validation of information 
          assurance products (sec. 933)..........................   798
    Subtitle E--Other Matters....................................   798
        Department of Defense policy on unmanned systems (sec. 
          941)...................................................   798
        Executive Schedule level IV for Deputy Under Secretary of 
          Defense for Logistics and Materiel Readiness (sec. 942)   799
        Study and report on reform of Defense Travel System (sec. 
          943)...................................................   799
        Administration of pilot project on Civilian Linguist 
          Reserve Corps (sec. 944)...............................   799
        Improvement of authorities on the National Security 
          Education Program (sec. 945)...........................   799
        Report on the posture of the United States Special 
          Operations Command to conduct the global war on 
          terrorism (sec. 946)...................................   800
    Legislative Provisions Not Adopted...........................   800
        United States Military Cancer Institute..................   800
        Military deputies to the assistant secretaries of the 
          military departments for acquisition, logistics, and 
          technology matters.....................................   800
        Redesignation of the Department of the Navy as the 
          Department of the Navy and Marine Corps................   801
        Transfer to Secretary of the Army of responsibility for 
          Assembled Chemical Weapons Alternatives program........   801
        Sense of Congress regarding the safe and expeditious 
          disposal of chemical weapons...........................   801
        Sense of Senate on nomination of individual to serve as 
          Director of Operational Test and Evaluation on a 
          permanent basis........................................   801
        Inclusion of homeland defense and civil support missions 
          of the National Guard and Reserves in the Quadrennial 
          Defense Review.........................................   801
Title X--General Provisions......................................   802
    Item of Special Interest.....................................   802
        Vietnam conflict.........................................   802
        Subtitle A--Financial Matters............................   802
        General transfer authority (sec. 1001)...................   802
        Authorization of additional emergency supplemental 
          appropriations for fiscal year 2006 (sec. 1002)........   803
        Reduction in certain authorizations due to savings 
          relating to lower inflation (sec. 1003)................   803
        Increase in fiscal year 2006 general transfer authority 
          (sec. 1004)............................................   803
        United States contribution to NATO common-funded budgets 
          in fiscal year 2007 (sec. 1005)........................   803
        Report on budgeting for fluctuations in fuel cost rates 
          (sec. 1006)............................................   804
        Modification of date of submittal of OMB/CBO report on 
          scoring of outlays (sec. 1007).........................   804
        Budgeting for ongoing military operations in Afghanistan 
          and Iraq (sec. 1008)...................................   804
    Subtitle B--Policy Relating to Vessels and Shipyards.........   804
        Aircraft carrier force structure (sec. 1011).............   804
        Sense of Congress on naming the CVN-78 aircraft carrier 
          as the USS Gerald R. Ford (sec. 1012)..................   806
        Transfer of naval vessels to foreign nations based upon 
          vessel class (sec. 1013)...............................   806
        Overhaul, repair, and maintenance of vessels in foreign 
          shipyards (sec. 1014)..................................   806
        Report on options for future lease arrangement for Guam 
          Shipyard (sec. 1015)...................................   806
        Assessments of naval vessel construction efficiencies and 
          of effectiveness of special contractor incentives (sec. 
          1016)..................................................   806
        Obtaining carriage by vessel: criterion regarding 
          overhaul, repair, and maintenance of vessels in the 
          United States (sec. 1017)..............................   807
        Riding gang member requirements (sec. 1018)..............   808
        Authority to transfer SS Arthur M. Huddell to the 
          Government of Greece (sec. 1019).......................   809
    Subtitle C--Counter Drug Activities..........................   809
        Extension of authority of Department of Defense to 
          provide additional support for counterdrug activities 
          of other governmental agencies (sec. 1021).............   809
        Extension and expansion of Department of Defense 
          authority to provide support for counter-drug 
          activities of certain foreign governments (sec. 1022)..   809
        Extension of authority to support unified counterdrug and 
          counterterrorism campaign in Colombia (sec. 1023)......   810
        Continuation of reporting requirement regarding 
          Department of Defense expenditures to support foreign 
          counter drug activities (sec. 1024)....................   810
        Report on interagency counter-narcotics plan for 
          Afghanistan and South and Central Asian regions (sec. 
          1025)..................................................   810
        Report on United States support for Operation Bahamas, 
          Turks & Caicos (sec. 1026).............................   810
    Subtitle D--Force Structure and Defense Policy Matters.......   811
        Improvements to Quadrennial Defense Review (sec. 1031)...   811
        Quarterly reports on implementation of 2006 Quadrennial 
          Defense Review Report (sec. 1032)......................   811
        Report on feasibility of establishing a regional 
          combatant command for Africa (sec. 1033)...............   811
        Determination of Department of Defense intratheater and 
          intertheater airlift requirements and sealift mobility 
          requirements (sec. 1034)...............................   811
        Presidential report on improving interagency support for 
          United States 21st century national security missions 
          and interagency operations in support of stability, 
          security, transition, and reconstruction operations 
          (sec. 1035)............................................   812
    Subtitle E--Reports..........................................   813
        Additional element in annual report on chemical and 
          biological warfare defense (sec. 1041).................   813
        Report on biodefense human capital requirements in 
          support of biosafety laboratories (sec. 1042)..........   813
        Report on technologies for neutralizing or defeating 
          threats to military rotary-wing aircraft from portable 
          air defense systems and rocket-propelled grenades (sec. 
          1043)..................................................   814
        Reports on expanded use of unmanned aerial vehicles in 
          the National Airspace System (sec. 1044)...............   814
        Report on incentives to encourage certain members and 
          former members of the armed forces to serve in the 
          Bureau of Customs and Border Protection (sec. 1045)....   814
        Repeal of certain report requirements (sec. 1046)........   815
        Requirement for identification of recently enacted 
          recurring reporting requirements applicable to the 
          Department of Defense (sec. 1047)......................   815
    Subtitle F--Miscellaneous Authorities and Limitations on 
      Availability and Use of Funds..............................   816
        Acceptance and retention of reimbursement from non-
          Federal sources to defray Department of Defense costs 
          of conferences (sec. 1051).............................   816
        Increased flexibility in use of funds for Joint Staff 
          exercises (sec. 1052)..................................   816
        Prohibition on parking of funds (sec. 1053)..............   816
        Modification of authorities relating to the Special 
          Inspector General for Iraq Reconstruction (sec. 1054)..   817
    Subtitle G--Matters Involving Detainees......................   817
        Provision of information to Congress on certain criminal 
          investigations and prosecutions involving detainees 
          (sec. 1061)............................................   817
    Subtitle H--Other Matters....................................   818
        Technical and clerical amendments (sec. 1071)............   818
        Revision to authorities relating to Commission on the 
          Implementation of the New Strategic Posture of the 
          United States (sec. 1072)..............................   818
        Revised deadline for submission of final report of EMP 
          Commission (sec. 1073).................................   818
        Patent term extensions for the badges of the American 
          Legion, the American Legion Women's Auxiliary, and the 
          Sons of the American Legion (sec. 1075)................   819
        Use of the Armed Forces in major public emergencies (sec. 
          1076)..................................................   819
    Legislative Provision Not Adopted............................   820
        Sense of the Senate on the Transformational Medical 
          Technology Initiative..................................   820
        Incorporation of classified annex........................   821
        Reports to Congress and notice to public on earmarks in 
          funds available to the Department of Defense...........   821
        Transfer of operational control of certain Patrol Coastal 
          ships to Coast Guard...................................   821
        Limitation on leasing of foreign-built vessels...........   822
        Restatement in title 10, United States Code, and revision 
          of Department of Defense authority to provide for 
          support for counterdrug activities of Federal, State, 
          local, and foreign law enforcement.....................   822
        Restatement in title 10, United States Code, and revision 
          of Department of Defense authority to provide for 
          support for counterdrug activities of certain foreign 
          governments............................................   822
        Assignment of members of the Armed Forces to assist 
          Bureau of Customs and Border Protection and United 
          States Immigration and Customs Enforcement.............   822
        Funding for a certain intelligence program...............   823
        Temporary National Guard support for securing the 
          southern land border of the United States..............   823
        Minimum annual purchase amounts for airlift from carriers 
          participating in the Civil Reserve Air Fleet...........   823
        Report on clarification of prohibition on cruel, inhuman, 
          and degrading treatment or punishment..................   824
        Reports on Department of Justice efforts to investigate 
          and prosecute cases of contracting abuse in Iraq, 
          Afghanistan, and throughout the war on terror..........   824
        National Foreign Language Coordination Council...........   824
        Court security improvements..............................   824
        Improved accountability for competitive contracting in 
          hurricane recovery.....................................   825
        Protection of certain disclosures of information by 
          Federal employees......................................   825
        Sense of Congress regarding the men and women of the 
          Armed Forces of the United States in Iraq..............   826
        Limitation on United States share of assessments for 
          United Nations peacekeeping operations.................   826
        Termination of program...................................   826
Title XI--Civilian Personnel Matters.............................   826
    Legislative Provisions Adopted...............................   826
        Accrual of annual leave for members of the uniformed 
          services performing dual employment (sec. 1101)........   826
        Strategy for improving the senior management, functional, 
          and technical workforce of the Department of Defense 
          (sec. 1102)............................................   826
        Three-year extension of authority for experimental 
          personnel management program for scientific and 
          technical personnel (sec. 1103)........................   827
        Reports on members of the Armed Forces and civilian 
          employees of the Department of Defense serving in the 
          legislative branch (sec. 1104).........................   827
        Extension of authority to waive annual limitation on 
          total compensation paid to Federal civilian employees 
          (sec. 1105)............................................   827
    Legislative Provisions Not Adopted...........................   828
        Death gratuity authorized for federal employees..........   828
        Programs for use of leave by caregivers for family 
          members of individuals performing certain military 
          service................................................   829
Title XII--Matters Relating to Foreign Nations...................   829
    Subtitle A--Assistance and Training..........................   829
        Logistic support for allied forces participating in 
          combined operations (sec. 1201)........................   829
        Temporary authority to use acquisition and cross-
          servicing agreements to lend certain military equipment 
          to foreign forces in Iraq and Afghanistan for personnel 
          protection and survivability (sec. 1202)...............   830
        Recodification and revision to law relating to Department 
          of Defense humanitarian demining assistance (sec. 1203)   831
        Enhancements to Regional Defense Combating Terrorism 
          Fellowship Program (sec. 1204).........................   832
        Participation of the Department of Defense in 
          multinational military centers of excellence (sec. 
          1205)..................................................   832
        Modification and extension of authorities relating to 
          program to build the capacity of foreign military 
          forces (sec. 1206).....................................   833
        Authority for distribution to certain foreign personnel 
          of education and training materials and information 
          technology to enhance military interoperability (sec. 
          1207)..................................................   834
    Subtitle B--Nonproliferation Matters and Countries of Concern   835
        North Korea (sec. 1211)..................................   835
        Report on participation of multinational partners in the 
          United Nations Command in the Republic of Korea (sec. 
          1212)..................................................   835
        Intelligence on Iran (sec. 1213).........................   835
        Sense of Congress on United States policy on the nuclear 
          programs of Iran (sec. 1214)...........................   836
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   841
        Specification of Cooperative Threat Reduction programs 
          and funds (sec. 1301)..................................   841
        Funding allocations (sec. 1302)..........................   842
        Extension of temporary authority to waive limitation on 
          funding for chemical weapons destruction facility in 
          Russia (sec. 1303).....................................   842
        National Academy of Sciences study of prevention of 
          proliferation of biological weapons (sec. 1304)........   842
    Legislative Provision Not Adopted............................   843
        Removal of certain restrictions on provision of 
          Cooperative Threat Reduction assistance................   843
Title XIV--Matters Related to Defense Against Terrorism and 
  Related Security Matters.......................................   843
    Legislative Provisions Adopted...............................   843
        Enhancement to authority to pay rewards for assistance in 
          combating terrorism (sec. 1401)........................   843
        Quarterly reports on Department of Defense response to 
          threat posed by improvised explosive devices (sec. 
          1402)..................................................   844
        Requirement that all military wheeled vehicles used in 
          Iraq and Afghanistan outside of secure military 
          operating bases be protected by Improvised Explosive 
          Device (IED) jammers (sec. 1403).......................   844
        Report on assessment process of Chairman of the Joint 
          Chiefs of Staff relating to Global War on Terrorism 
          (sec. 1404)............................................   845
        Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel (sec. 1405)..................................   845
        Database of emergency response capabilities (sec. 1406)..   845
    Legislative Provision Not Adopted............................   845
        Homeland defense technology transfer.....................   845
Title XV--Authorization for Increased Costs Due to Operation 
  IRAQI Freedom and Operation Enduring Freedom...................   846
        Overview.................................................   846
        Summary table of authorization...........................   846
    Legislative Provisions Adopted...............................   879
        Purpose (sec. 1501)......................................   879
        Army Procurement (sec. 1502).............................   879
        Navy and Marine Corps procurement (sec. 1503)............   879
        Air Force procurement (sec. 1504)........................   879
        Defense-wide activities procurement (sec. 1505)..........   879
        Research, development, test and evaluation (sec. 1506)...   880
        Operation and maintenance (sec. 1507)....................   880
        Defense Health Program (sec. 1508).......................   880
        Classified programs (sec. 1509)..........................   880
        Military personnel (sec. 1510)...........................   881
        Treatment as additional authorizations (sec. 1511).......   881
        Transfer authority (sec. 1512)...........................   881
        Availability of funds (sec. 1513)........................   881
        Joint Improvised Explosive Device Defeat Fund (sec. 1514)   881
        Iraq Freedom Fund (sec. 1515)............................   881
        Iraq Security Forces Fund (sec. 1516)....................   882
        Afghanistan Security Forces Fund (sec. 1517).............   882
        Submittal to Congress of Department of Defense 
          supplemental and cost of war execution reports (sec. 
          1518)..................................................   882
        Limitation on availability of funds for certain purposes 
          relating to Iraq (sec. 1519)...........................   882
        Intelligence Community Management Account (sec. 1520)....   883
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   883
    Budget Items.................................................   883
        Explanation of funding table.............................   883
        2005 Defense Base Closure and Realignment accounts 
          authorized for appropriations in 2006..................   906
        2005 Defense Base Closure and Realignment accounts.......   909
    Legislative Provisions Adopted...............................   916
        Short title (sec. 2001)..................................   916
        Recognition of Representative Joel Hefley upon his 
          retirement from the House of Representatives (sec. 
          2002)..................................................   916
Title XXI--Army..................................................   916
    Budget Item..................................................   916
        Overview.................................................   916
        Authorized Army construction and land acquisition 
          projects (sec. 2101)...................................   917
        Family housing (sec. 2102)...............................   917
        Improvements to military family housing units (sec. 2103)   918
        Authorization of appropriations, Army (sec. 2104)........   918
    Items of Special Interest....................................   918
        Impact of 2005 Defense Base Closure and Realignment 
          decisions to the transportation infrastructure in 
          Northern Virginia......................................   918
        Request for data related to unaccompanied housing 
          requirements in the Department of the Army.............   919
Title XXII--Navy.................................................   920
    Budget Item..................................................   920
        Overview.................................................   920
    Legislative Provisions Adopted...............................   920
        Authorized Navy construction and land acquisition 
          projects (sec. 2201)...................................   920
        Family housing (sec. 2202)...............................   921
        Improvements to military family housing units (sec. 2203)   921
        Authorization of appropriations, Navy (sec. 2204)........   921
        Modification of authority to carry out certain fiscal 
          year 2004, 2005, and 2006 projects (sec. 2205).........   921
Title XXIII--Air Force...........................................   922
    Budget Item..................................................   922
        Overview.................................................   922
    Legislative Provisions Adopted...............................   923
        Authorized Air Force construction and land acquisition 
          projects (sec. 2301)...................................   923
        Family housing (sec. 2302)...............................   923
        Improvements to military family housing units (sec. 2303)   923
        Authorization of appropriations, Air Force (sec. 2304)...   924
        Modification of authority to carry out certain fiscal 
          year 2006 project (sec. 2305)..........................   924
    Item of Special Interest.....................................   924
        Military construction project for Phase 1 of a Basic 
          Expeditionary Airman Skill Training Campus at Lackland 
          Air Force Base, Texas..................................   924
Title XXIV--Defense Agencies.....................................   925
    Budget Item..................................................   925
        Overview.................................................   925
    Legislative Provisions Adopted...............................   925
        Authorized Defense Agencies construction and land 
          acquisition projects (sec. 2401).......................   925
        Family housing (sec. 2402)...............................   926
        Energy conservation projects (sec. 2403).................   926
        Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005 
          (sec. 2404)............................................   926
        Authorization of appropriations, Defense Agencies (sec. 
          2405)..................................................   926
        Modification of authority to carry out certain fiscal 
          year 2006 project (sec. 2406)..........................   926
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   927
        Budget Item..............................................   927
Title XXVI--Guard and Reserve Forces Facilities..................   928
    Budget Item..................................................   928
        Overview.................................................   928
    Legislative Provision Adopted................................   928
        Authorized Guard and Reserve construction and land 
          acquisition projects (sec. 2601........................   928
TItle XXVII--Expiration and Extension of Authorizations..........   928
    Legislative Provisions Adopted...............................   928
        Expiration of authorizations and amounts required to be 
          specified by law (sec. 2701)...........................   928
        Extension of authorizations of certain fiscal year 2004 
          projects (sec. 2702)...................................   929
        Extension of authorizations of certain fiscal year 2003 
          projects (sec. 2703)...................................   929
        Effective date (sec. 2704)...............................   929
Title XXVIII--Military Construction General Provisions...........   929
    Items of Special Interest....................................   929
        Incremental funding of military construction projects....   929
        Updating foreign currency fluctuation adjustment for 
          certain military family housing leases in Korea........   930
    Subtitle A--Military Construction Program and Military Family 
      Housing Changes............................................   931
        Legislative Provisions Adopted...........................   931
        Increase in maximum annual amount authorized to be 
          obligated for emergency military construction (sec. 
          2801)..................................................   931
        One-year extension of temporary, limited authority to use 
          operation and maintenance funds for construction 
          projects outside the United States (sec. 2802).........   931
        Repeal of requirement to determine availability of 
          suitable alternative housing for acquisition in lieu of 
          construction of new family housing (sec. 2803).........   931
        Authority to continue to occupy leased family housing for 
          United States Southern Command personnel (sec. 2804)...   932
        Consideration of alternative and more efficient uses for 
          general officer and flag officer quarters in excess of 
          6,000 square feet (sec. 2805)..........................   932
        Modification of notification requirements related to cost 
          variation authority (sec. 2806)........................   932
        Consideration of local comparability of floor areas in 
          construction, acquisition, and improvement to military 
          unaccompanied housing (sec. 2807)......................   932
        Certification required for military construction projects 
          for facilities designed to provide training in urban 
          operations (sec. 2808).................................   932
        Authority to carry out military construction projects in 
          connection with industrial facility investment program 
          (sec. 2809)............................................   933
        Repeal of special requirement for military construction 
          contracts on Guam (sec. 2810)..........................   933
        Temporary expansion of authority to convey property at 
          military installations to support military construction 
          (sec. 2811)............................................   934
        Pilot projects for acquisition or construction of 
          military unaccompanied housing (sec. 2812).............   934
    Subtitle B--Real Property and Facilities Administration......   934
        Congressional notice requirements, in advance of 
          acquisition of land by condemnation for military 
          purposes (sec. 2821)...................................   934
        Consolidation of Department of Defense authorities 
          regarding granting of easements for rights-of-way (sec. 
          2822)..................................................   935
        Authority to grant restrictive easements for conservation 
          purposes in connection with land conveyances (sec. 
          2823)..................................................   935
        Maximum term of leases for structures and real property 
          relating to structures in foreign countries needed for 
          purposes other than family housing (sec. 2824).........   935
        Consolidation of laws relating to transfer of Department 
          of Defense real property within the Department of 
          Defense and to other Federal agencies (sec. 2825)......   935
        Defense access road program (sec. 2826)..................   936
        Reports on Army operational ranges (sec. 2827)...........   936
    Subtitle C--Base Closure and Realignment.....................   936
        Modification of deposit requirements in connection with 
          lease proceeds received at military installations 
          approved for closure or realignment after January 1, 
          2005 (sec. 2831).......................................   936
        Report on Air Force and Air National Guard bases affected 
          by 2005 round of defense base closure and Realignment 
          (sec. 2832)............................................   936
    Subtitle D--Land Conveyances.................................   937
        Conveyance of easement, Pine Bluff Arsenal, Arkansas 
          (sec. 2841)............................................   937
        Modification of land transfer authority, Potomac Annex, 
          District of Columbia (sec. 2842).......................   937
        Land conveyance, Naval Air Station, Barbers Point, Hawaii 
          (sec. 2843)............................................   937
        Land conveyances, Omaha, Nebraska (sec. 2844)............   937
        Land conveyance, Hopkinton, New Hampshire (sec. 2845)....   938
        Land conveyance, North Hills Army Reserve Center, Allison 
          Park, Pennsylvania (sec. 2846).........................   938
        Transfer of jurisdiction, Fort Jackson, South Carolina 
          (sec. 2847)............................................   938
        Sense of Congress regarding land conveyance involving 
          Army Reserve Center, Marshall, Texas (sec. 2848).......   938
        Modifications to land conveyance authority, Engineering 
          Proving Grounds, Fort Belvoir, Virginia (sec. 2849)....   939
        Land conveyance, Radford Army Ammunition Plant, New River 
          Unit, Virginia (sec. 2850).............................   939
    Subtitle E--Energy Security..................................   939
        Consolidation and enhancement of laws to improve 
          Department of Defense energy efficiency and 
          conservation (sec. 2851)...............................   939
        Department of Defense goal regarding use of renewable 
          energy to meet electricity needs (sec. 2852)...........   940
        Congressional notification of cancellation ceiling for 
          Department of Defense energy savings performance 
          contracts (sec. 2853)..................................   940
        Use of energy efficiency products in new construction 
          (sec. 2854)............................................   940
    Subtitle F--Other Matters....................................   940
        Availability of research and technical assistance under 
          Defense Economic Adjustment Program (sec. 2861)........   940
        Availability of community planning assistance relating to 
          encroachment of civilian communities on military 
          facilities used for training by the armed forces (sec. 
          2862)..................................................   940
        Prohibitions against making certain military airfields or 
          facilities available for use by civil aircraft (sec. 
          2863)..................................................   941
        Modification of certain transportation projects (sec. 
          2864)..................................................   941
        Availability of funds for South County Commuter Rail 
          project, Providence, Rhode Island (sec. 2865)..........   941
        Fox Point hurricane barrier, Providence, Rhode Island 
          (sec. 2866)............................................   941
        Federal funding for fixed guideway projects (sec. 2867)..   941
        Feasibility study regarding use of General Services 
          Administration property for Fort Belvoir, Virginia, 
          realignment (sec. 2868)................................   942
    Legislative Provisions Not Adopted...........................   942
        Authority to use proceeds from sale of military family 
          housing to support military housing privatization 
          initiative.............................................   942
        Limitations on availability of funds for Waste Treatment 
          and Immobilization Plant (sec. 3120)...................   971
        Report on Russian Surplus Fissile Materials Disposition 
          Program (sec. 3121)....................................   972
        Limitation on availability of funds for construction of 
          MOX Fuel Fabrication Facility (sec. 3122)..............   974
        Education of future nuclear engineers (sec. 3123)........   975
        Technical correction related to authorization of 
          appropriations for fiscal year 2006 (sec. 3124)........   976
Title XXXII--Defense Nuclear Facilities Safety Board.............   976
    Legislative Provision Adopted Authorization (sec. 3201)......   976
Title XXXIII--National Defense Stockpile.........................   977
    Legislative Provisions Adopted Authorized uses of National 
      Defense Stockpile funds (sec. 3301)........................   977
        Revisions to required receipt objectives for previously 
          authorized disposals from National Defense Stockpile 
          (sec. 3302)............................................   977
Title XXXIV--Naval Petroleum Reserves............................   977
    Legislative Provision Adopted................................   977
        Authorization of appropriations (sec. 3401)..............   977
    Legislative Provision Not Adopted............................   977
        Completion of equity finalization process for Naval 
          Petroleum Reserve Numbered 1...........................   977
Title XXXV--Maritime Administration..............................   978
    Legislative Provisions Adopted...............................   978
        Authorization of appropriations for fiscal year 2007 
          (sec. 3501)............................................   978
        Amendments relating to the Maritime Security Fleet 
          program (sec. 3502)....................................   978
        Applicability to certain Maritime Administration vessels 
          of limitations on overhaul, repair, and maintenance of 
          vessels in foreign shipyards (sec. 3503)...............   979
        Vessel transfer authority (sec. 3504)....................   979
        United States Merchant Marine Academy graduates: service 
          requirements (sec. 3505)...............................   979
        United States Merchant Marine Academy graduates: service 
          obligation performance reporting requirement (sec. 
          3506)..................................................   979
        Temporary authority to transfer obsolete combatant 
          vessels to Navy for disposal (sec. 3507)...............   980
        Qualifying Reserve duty for receipt of student incentive 
          payments (sec. 3508)...................................   980
        Large passenger ship crew requirements (sec. 3509).......   980
        Miscellaneous Maritime Administration provisions (sec. 
          3510)..................................................   981
    Legislative Provision Not Adopted............................   981
        Temporary requirement to maintain Ready Reserve Force....   981
    Earmarks.....................................................   981
        Increase in thresholds for unspecified minor military 
          construction projects..................................   949
        Repeal of temporary minor military construction program..   943
        Updating foreign currency fluctuation adjustment for 
          certain military family housing leases in Korea........   943
        Naming of research laboratory at Air Force Rome Research 
          Site, Rome, New York in honor of Sherwood L. Boehlert, 
          a member of the House of Representatives...............   943
        Naming of administrative building at Joint Systems 
          Manufacturing Center in Lima, Ohio after Michael G. 
          Oxley, a member of the House of Representatives........   943
        Naming of military family housing facility at Fort 
          Carson, Colorado, in honor of Joel Hefley, a member of 
          the House of Representatives...........................   943
        Authority to use excess property as exchange under 
          agreements to limit encroachments on military training, 
          testing, and operations................................   944
        Modification of utility system authority and related 
          reporting requirements.................................   944
        Naming of Navy and Marine Corps Reserve Center at Rock 
          Island, Illinois, in honor of Lane Evans, a member of 
          the House of Representatives...........................   944
        Modification of land acquisition authority, Perquimans 
          County, North Carolina.................................   944
        Highway projects, Detroit, Michigan......................   945
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   945
Title XXXI--Department of Energy National Security Programs......   945
        Overview.................................................   945
    Legislative Provisions Adopted...............................   966
        National Nuclear Security Administration (sec. 3101).....   966
        Defense environmental cleanup (sec. 3102)................   967
        Other defense activities (sec. 3103).....................   967
        Defense nuclear waste disposal (sec. 3104)...............   967
    Subtitle B--Program Authorizations, Restrictions, and 
      Limitations................................................   968
        Plan for transformation of National Nuclear Security 
          Administration nuclear weapons complex (sec. 3111).....   968
        Extension of Facilities and Infrastructure 
          Recapitalization Program (sec. 3112)...................   968
        Utilization of contributions to Global Threat Reduction 
          Initiative (sec. 3113).................................   968
        Utilization of contributions to Second Line of Defense 
          program (sec. 3114)....................................   968
        Two-year extension of authority for appointment of 
          certain scientific, engineering, and technical 
          personnel (sec. 3115)..................................   969
        National Academy of Sciences study of quantification of 
          margins and uncertainty methodology for assessing and 
          certifying the safety and reliability of the nuclear 
          stockpile (sec. 3116)..................................   969
        Consolidation of counterintelligence programs of 
          Department of Energy and National Nuclear Security 
          Administration (sec. 3117).............................   969
        Notice-and-wait requirement applicable to certain third-
          party financing arrangements (sec. 3118)...............   971
        Extension of deadline for transfer of lands to Los Alamos 
          County, New Mexico, and of lands in trust for the 
          Pueblo of San Ildefonso (sec. 3119)....................   971










109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-702

======================================================================



 
  JOHN WARNER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007

                                _______
                                

               September 29, 2006.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 5122]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
5122), to authorize appropriations for fiscal year 2007 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such 
fiscal year, 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 House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``John 
Warner National Defense Authorization Act for Fiscal Year 
2007''.
    (b) Findings.--Congress makes the following findings:
            (1) Senator John Warner of Virginia was elected a 
        member of the United States Senate on November 7, 1978, 
        for a full term beginning on January 3, 1979. He was 
        subsequently appointed by the Governor of Virginia to 
        fill a vacancy on January 2, 1979, and has served 
        continuously since that date. He was appointed a member 
        of the Committee on Armed Services in January 1979, and 
        has served continuously on the Committee since that 
        date, a period of nearly 28 years. Senator Warner's 
        service on the Committee represents nearly half of its 
        existence since it was established after World War II.
            (2) Senator Warner came to the Senate and the 
        Committee on Armed Services after a distinguished 
        record of service to the Nation, including combat 
        service in the Armed Forces and high civilian office.
            (3) Senator Warner enlisted in the United States 
        Navy upon graduation from high school in 1945, and 
        served until the summer of 1946, when he was discharged 
        as a Petty Officer 3rd Class. He then attended 
        Washington and Lee University on the G.I. Bill. He 
        graduated in 1949 and entered the University of 
        Virginia Law School.
            (4) Upon the outbreak of the Korean War in 1950, 
        Senator Warner volunteered for active duty, 
        interrupting his education to accept a commission in 
        the United States Marine Corps. He served in combat in 
        Korea as a ground officer in the First Marine Air Wing. 
        Following his active service, he remained in the Marine 
        Corps Reserve for several years, attaining the rank of 
        captain.
            (5) Senator Warner resumed his legal education upon 
        returning from the Korean War and graduated from the 
        University of Virginia Law School in 1953. He was 
        selected by the late Chief Judge E. Barrett Prettyman 
        of the United States Court of Appeals for the District 
        of Columbia Circuit as his law clerk. After his service 
        to Judge Prettyman, Senator Warner became an Assistant 
        United States Attorney in the District of Columbia, and 
        later entered private law practice.
            (6) In 1969, the Senate gave its advice and consent 
        to the appointment of Senator Warner as Under Secretary 
        of the Navy. He served in this position until 1972, 
        when he was confirmed and appointed as the 61st 
        Secretary of the Navy since the office was established 
        in 1798. As Secretary, Senator Warner was the principal 
        United States negotiator and signatory of the Incidents 
        at Sea Executive Agreement with the Soviet Union, which 
        was signed in 1972 and remains in effect today. It has 
        served as the model for similar agreements between 
        states covering the operation of naval ships and 
        aircraft in international sea lanes throughout the 
        world.
            (7) Senator Warner left the Department of the Navy 
        in 1974. His next public service was as Administrator 
        of the American Revolution Bicentennial Commission. In 
        this capacity, he coordinated the celebration of the 
        Nation's founding, directing the Federal role in all 50 
        States and in over 20 foreign nations.
            (8) Senator Warner has served as chairman of the 
        Committee on Armed Services of the United States Senate 
        from 1999 to 2001, and again since January 2003. He 
        served as ranking minority member of the committee from 
        1987 to 1993, and again from 2001 to 2003. Senator 
        Warner concludes his service as chairman at the end of 
        the 109th Congress, but will remain a member of the 
        committee.
            (9) This Act is the twenty-eighth annual 
        authorization Act for the Department of Defense for 
        which Senator Warner has taken a major responsibility 
        as a member of the Committee on Armed Services of the 
        United States Senate, and the fourteenth for which he 
        has exercised a leadership role as chairman or ranking 
        minority member of the committee.
            (10) Senator Warner, as seaman, Marine officer, 
        Under Secretary and Secretary of the Navy, and member, 
        ranking minority member, and chairman of the Committee 
        on Armed Services of the United States Senate, has made 
        unique and lasting contributions to the national 
        security of the United States.
            (11) It is altogether fitting and proper that this 
        Act, the last annual authorization Act for the national 
        defense managed by Senator Warner in and for the United 
        States Senate as chairman of the Committee on Armed 
        Services, be named in his honor, 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.

            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.

                        Subtitle B--Army Programs

Sec. 111. Sense of Congress on future multiyear procurement authority 
          for Family of Medium Tactical Vehicles.
Sec. 112. Multiyear procurement authority for MH-60R helicopters and 
          mission equipment.
Sec. 113. Funding profile for Modular Force Initiative of the Army.
Sec. 114. Bridge to Future Networks program.
Sec. 115. Comptroller General report on the contract for the Future 
          Combat Systems program.
Sec. 116. Priority for allocation of replacement equipment to 
          operational units based on combat mission deployment schedule.

                        Subtitle C--Navy Programs

Sec. 121. CVN-21 class aircraft carrier procurement.
Sec. 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
          carriers.
Sec. 123. Modification of limitation on total cost of procurement of 
          CVN-77 aircraft carrier.
Sec. 124. Construction of first two vessels under the DDG-1000 Next-
          Generation Destroyer program.
Sec. 125. Adherence to Navy cost estimates for LHA Replacement 
          amphibious assault ship program.
Sec. 126. Cost limitation for San Antonio (LPD-17) class amphibious ship 
          program.
Sec. 127. Multiyear procurement authority for V-22 tiltrotor aircraft 
          program.
Sec. 128. Alternative technologies for future surface combatants.
Sec. 129. Sense of Congress regarding the size of the attack submarine 
          force.
Sec. 130. Quality control in procurement of ship critical safety items 
          and related services.

                     Subtitle D--Air Force Programs

Sec. 131. Bomber force structure.
Sec. 132. Strategic airlift force structure.
Sec. 133. Limitation on retirement of U-2 aircraft.
Sec. 134. Multiyear procurement authority for F-22A Raptor fighter 
          aircraft.
Sec. 135. Limitation on retirement of KC-135E aircraft during fiscal 
          year 2007.
Sec. 136. Limitation on retirement of F-117A aircraft during fiscal year 
          2007.
Sec. 137. Limitation on retirement of C-130E tactical airlift aircraft.
Sec. 138. Procurement of Joint Primary Aircraft Training System aircraft 
          after fiscal year 2006.
Sec. 139. Minuteman III intercontinental ballistic missile 
          modernization.

               Subtitle E--Joint and Multiservice Matters

Sec. 141. Clarification of limitation on initiation of new unmanned 
          aerial vehicle systems.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Acquisition of, and independent cost analyses for, the Joint 
          Strike Fighter propulsion system.
Sec. 212. Expansion and extension of authority to award prizes for 
          advanced technology achievements.
Sec. 213. Defense Acquisition Challenge Program extension, enhancement, 
          and modification to address critical cost growth threshold 
          breaches in major defense acquisition programs.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Dedicated amounts for implementing or evaluating Navy 
          shipbuilding technology proposals under Defense Acquisition 
          Challenge Program.
Sec. 216. Independent estimate of costs of the Future Combat Systems.
Sec. 217. Funding of defense science and technology programs.
Sec. 218. Hypersonics development.
Sec. 219. Report on program for replacement of nuclear warheads on 
          certain Trident sea-launched ballistic missiles with 
          conventional warheads.

                  Subtitle C--Missile Defense Programs

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.
Sec. 223. Policy of the United States on priorities in the development, 
          testing, and fielding of missile defense capabilities.
Sec. 224. One-year extension of Comptroller General assessments of 
          ballistic missile defense programs.
Sec. 225. Submittal of plans for test and evaluation of the operational 
          capability of the Ballistic Missile Defense System.
Sec. 226. Annual reports on transition of ballistic missile defense 
          programs to the military departments.

                        Subtitle D--Other Matters

Sec. 231. Policies and practices on test and evaluation to address 
          emerging acquisition approaches.
Sec. 232. Extension of requirement for Global Research Watch Program.
Sec. 233. Sense of Congress on technology sharing of Joint Strike 
          Fighter technology.
Sec. 234. Report on vehicle-based active protection systems for certain 
          battlefield threats.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
          manager.
Sec. 312. Funding of cooperative agreements under environmental 
          restoration program.
Sec. 313. Response plan for remediation of unexploded ordnance, 
          discarded military munitions, and munitions constituents.
Sec. 314. Research on effects of ocean disposal of munitions.
Sec. 315. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with Moses Lake Wellfield Superfund Site, 
          Moses Lake, Washington.
Sec. 316. Transfer of Government-furnished uranium stored at Sequoyah 
          Fuels Corporation, Gore, Oklahoma.
Sec. 317. Extension of authority to grant exemptions to certain 
          requirements.
Sec. 318. National Academy of Sciences study on human exposure to 
          contaminated drinking water at Camp Lejeune, North Carolina.

     Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Limitation on financial management improvement and audit 
          initiatives within the Department of Defense.
Sec. 322. Funds for exhibits for the national museums of the Armed 
          Forces.
Sec. 323. Prioritization of funds for equipment readiness and strategic 
          capability.
Sec. 324. Limitation on deployment of Marine Corps Total Force System to 
          Navy.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Permanent exclusion of certain contract expenditures from 
          percentage limitation on the performance of depot-level 
          maintenance.
Sec. 332. Minimum capital investment for certain depots.
Sec. 333. Extension of temporary authority for contractor performance of 
          security guard functions.

                           Subtitle E--Reports

Sec. 341. Report on Navy Fleet Response Plan.
Sec. 342. Report on Navy surface ship rotational crew programs.
Sec. 343. Report on Army live-fire ranges in Hawaii.
Sec. 344. Comptroller General report on joint standards and protocols 
          for access control systems at Department of Defense 
          installations.
Sec. 345. Comptroller General report on readiness of Army and Marine 
          Corps ground forces.
Sec. 346. Report on Air Force safety requirements for Air Force flight 
          training operations at Pueblo Memorial Airport, Colorado.
Sec. 347. Annual report on Personnel Security Investigations for 
          Industry and National Industrial Security Program.
Sec. 348. Five-year extension of annual report on training range 
          sustainment plan and training range inventory.
Sec. 349. Reports on withdrawal or diversion of equipment from reserve 
          units for support of reserve units being mobilized and other 
          units.

                        Subtitle F--Other Matters

Sec. 351. Department of Defense strategic policy on prepositioning of 
          materiel and equipment.
Sec. 352. Authority to make Department of Defense horses available for 
          adoption.
Sec. 353. Sale and use of proceeds of recyclable munitions materials.
Sec. 354. Recovery and transfer to Corporation for the Promotion of 
          Rifle Practice and Firearms Safety of certain firearms, 
          ammunition, and parts granted to foreign countries.
Sec. 355. Extension of Department of Defense telecommunications benefit 
          program.
Sec. 356. Extension of availability of funds for commemoration of 
          success of the Armed Forces in Operation Enduring Freedom and 
          Operation Iraqi Freedom.
Sec. 357. Capital security cost sharing.
Sec. 358. Utilization of fuel cells as back-up power systems in 
          Department of Defense operations.
Sec. 359. Improving Department of Defense support for civil authorities.
Sec. 360. Energy efficiency in weapons platforms.
Sec. 361. Prioritization of funds within Navy mission operations, ship 
          maintenance, combat support forces, and weapons system 
          support.
Sec. 362. Provision of adequate storage space to secure personal 
          property outside of assigned military family housing unit.
Sec. 363. Expansion of payment of replacement value of personal property 
          damaged during transport at Government expense.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
          active duty end strengths for fiscal years 2008 and 2009.

                       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 2007 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
          community positions.
Sec. 502. Extension of age for mandatory retirement for active-duty 
          general and flag officers.
Sec. 503. Increased mandatory retirement ages for reserve officers.
Sec. 504. Standardization of grade of senior dental officer of the Air 
          Force with that of senior dental officer of the Army.
Sec. 505. Management of chief warrant officers.
Sec. 506. Extension of temporary reduction of time-in-grade requirement 
          for eligibility for promotion for certain active-duty list 
          officers in grades of first lieutenant and lieutenant (junior 
          grade).
Sec. 507. Grade and exclusion from active-duty general and flag officer 
          distribution and strength limitations of officer serving as 
          Attending Physician to the Congress.
Sec. 508. Modification of qualifications for leadership of the Naval 
          Postgraduate School.

                    Part II--Officer Promotion Policy

Sec. 511. Revisions to authorities relating to authorized delays of 
          officer promotions.
Sec. 512. Consideration of adverse information by selection boards in 
          recommendations on officers to be promoted.
Sec. 513. Expanded authority for removal from reports of selection 
          boards of officers recommended for promotion to grades below 
          general and flag grades.
Sec. 514. Special selection board authorities.
Sec. 515. Removal from promotion list of officers not promoted within 18 
          months of approval of list by the President.

             Part III--Joint Officer Management Requirements

Sec. 516. Modification and enhancement of general authorities on 
          management of officers who are joint qualified.
Sec. 517. Modification of promotion policy objectives for joint 
          officers.
Sec. 518. Applicability of joint duty assignment requirements limited to 
          graduates of National Defense University schools.
Sec. 519. Modification of certain definitions relating to jointness.

                  Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

Sec. 521. Recognition of former Representative G. V. `Sonny' Montgomery 
          for his 30 years of service in the House of Representatives.
Sec. 522. Revisions to reserve call-up authority.
Sec. 523. Military retirement credit for certain service by National 
          Guard members performed while in a State duty status 
          immediately after the terrorist attacks of September 11, 2001.

         Part II--Authorities Relating to Guard and Reserve Duty

Sec. 524. Title 10 definition of Active Guard and Reserve duty.
Sec. 525. Authority for Active Guard and Reserve duties to include 
          support of operational missions assigned to the reserve 
          components and instruction and training of active-duty 
          personnel.
Sec. 526. Governor's authority to order members to Active Guard and 
          Reserve duty.
Sec. 527. Expansion of operations of civil support teams.
Sec. 528. Modification of authorities relating to the Commission on the 
          National Guard and Reserves.
Sec. 529. Additional matters to be reviewed by Commission on the 
          National Guard and Reserves.

                   Subtitle C--Education and Training

                        Part I--Service Academies

Sec. 531. Expansion of service academy exchange programs with foreign 
          military academies.
Sec. 532. Revision and clarification of requirements with respect to 
          surveys and reports concerning sexual harassment and sexual 
          violence at the service academies.
Sec. 533. Department of Defense policy on service academy and ROTC 
          graduates seeking to participate in professional sports before 
          completion of their active-duty service obligations.

         Part II--Scholarship and Financial Assistance Programs

Sec. 535. Authority to permit members who participate in the guaranteed 
          reserve forces duty scholarship program to participate in the 
          health professions scholarship program and serve on active 
          duty.
Sec. 536. Detail of commissioned officers as students at medical 
          schools.
Sec. 537. Increase in maximum amount of repayment under education loan 
          repayment for officers in specified health professions.
Sec. 538. Health Professions Scholarship and Financial Assistance 
          Program for Active Service.

                      Part III--Junior ROTC Program

Sec. 539. Junior Reserve Officers' Training Corps instructor 
          qualifications.
Sec. 540. Expansion of members eligible to be employed to provide Junior 
          Reserve Officers' Training Corps instruction.
Sec. 541. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 542. Review of legal status of Junior ROTC program.

             Part IV--Other Education and Training Programs

Sec. 543. Expanded eligibility for enlisted members for instruction at 
          Naval Postgraduate School.

                 Subtitle D--General Service Authorities

Sec. 546. Test of utility of test preparation guides and education 
          programs in enhancing recruit candidate performance on the 
          Armed Services Vocational Aptitude Battery (ASVAB) and Armed 
          Forces Qualification Test (AFQT).
Sec. 547. Clarification of nondisclosure requirements applicable to 
          certain selection board proceedings.
Sec. 548. Report on extent of provision of timely notice of long-term 
          deployments.

                  Subtitle E--Military Justice Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
          of the Armed Forces ordered to duty overseas in inactive duty 
          for training status.
Sec. 552. Clarification of application of Uniform Code of Military 
          Justice during a time of war.

                   Subtitle F--Decorations and Awards

Sec. 555. Authority for presentation of Medal of Honor Flag to living 
          Medal of Honor recipients and to living primary next-of-kin of 
          deceased Medal of Honor recipients.
Sec. 556. Review of eligibility of prisoners of war for award of the 
          Purple Heart.
Sec. 557. Report on Department of Defense process for awarding 
          decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Authority for retention after separation from service of 
          assistive technology and devices provided while on active 
          duty.
Sec. 562. Transportation of remains of casualties dying in a theater of 
          combat operations.
Sec. 563.  Annual budget display of funds for POW/MIA activities of 
          Department of Defense.
Sec. 564. Military Severely Injured Center.
Sec. 565. Comprehensive review on procedures of the Department of 
          Defense on mortuary affairs.
Sec. 566. Additional elements of policy on casualty assistance to 
          survivors of military decedents.
Sec. 567.  Requirement for deploying military medical personnel to be 
          trained in preservation of remains under combat or combat-
          related conditions.

     Subtitle H--Impact Aid and Defense Dependents Education System

Sec. 571. Enrollment in defense dependents' education system of 
          dependents of foreign military members assigned to Supreme 
          Headquarters Allied Powers, Europe.
Sec. 572. Continuation of authority to assist local educational agencies 
          that benefit dependents of members of the Armed Forces and 
          Department of Defense civilian employees.
Sec. 573. Impact aid for children with severe disabilities.
Sec. 574. Plan and authority to assist local educational agencies 
          experiencing growth in enrollment due to force structure 
          changes, relocation of military units, or base closures and 
          realignments.
Sec. 575. Pilot program on parent education to promote early childhood 
          education for dependent children affected by military 
          deployment or relocation of military units.

                Subtitle I--Armed Forces Retirement Home

Sec. 578. Report on leadership and management of the Armed Forces 
          Retirement Home.
Sec. 579. Report on Local Boards of Trustees of the Armed Forces 
          Retirement Home.

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
          Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
          assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
          discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
          military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
          Secretary of Defense as part of the Department of Defense 
          Joint Advertising, Market Research and Studies (JAMRS) 
          program.
Sec. 587. Comptroller General report on military conscientious 
          objectors.

                        Subtitle K--Other Matters

Sec. 591. Modification in Department of Defense contributions to 
          Military Retirement Fund.
Sec. 592. Revision in Government contributions to Medicare-Eligible 
          Retiree Health Care Fund.
Sec. 593. Dental Corps of the Navy Bureau of Medicine and Surgery.
Sec. 594. Permanent authority for presentation of recognition items for 
          recruitment and retention purposes.
Sec. 595. Persons authorized to administer enlistment and appointment 
          oaths.
Sec. 596. Military voting matters.
Sec. 597. Physical evaluation boards.
Sec. 598. Military ID cards for retiree dependents who are permanently 
          disabled.
Sec. 599. United States Marine Band and United States Marine Drum and 
          Bugle Corps.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
          basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
          officer grades to conform to increase in pay cap for Senior 
          Executive Service personnel.
Sec. 603. One-year extension of prohibition against requiring certain 
          injured members to pay for meals provided by military 
          treatment facilities.
Sec. 604. Availability of second basic allowance for housing for certain 
          reserve component or retired members serving in support of 
          contingency operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
          dependents of members dying on active duty to spouses who are 
          also members.
Sec. 606. Payment of full premium for coverage under Servicemembers' 
          Group Life Insurance program during service in Operation 
          Enduring Freedom or Operation Iraqi Freedom.
Sec. 607. Clarification of effective date of prohibition on compensation 
          for correspondence courses.
Sec. 608. Extension of pilot program on contributions to Thrift Savings 
          Plan for initial enlistees in the Army.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
          reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
          health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
          officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
          and special pays.
Sec. 615. Expansion of eligibility of dental officers for additional 
          special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
          Reserve health care professionals in critically short wartime 
          specialties.
Sec. 617. Expansion and enhancement of accession bonus authorities for 
          certain officers in health care specialities.
Sec. 618. Authority to provide lump sum payment of nuclear officer 
          incentive pay.
Sec. 619. Increase in maximum amount of nuclear career accession bonus.
Sec. 620. Increase in maximum amount of incentive bonus for transfer 
          between Armed Forces.
Sec. 621. Additional authorities and incentives to encourage retired 
          members and reserve component members to volunteer to serve on 
          active duty in high-demand, low-density assignments.
Sec. 622. Accession bonus for members of the Armed Forces appointed as 
          commissioned officers after completing officer candidate 
          school.
Sec. 623. Modification of certain authorities applicable to the targeted 
          shaping of the Armed Forces.
Sec. 624. Enhancement of bonus to encourage certain persons to refer 
          other persons for enlistment in the Army.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for transportation of 
          family members incident to illness or injury of members.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Retired pay of general and flag officers to be based on rates 
          of basic pay provided by law.
Sec. 642. Inapplicability of retired pay multiplier maximum percentage 
          to certain service of members of the Armed Forces in excess of 
          30 years.
Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable 
          interest coverage.
Sec. 644. Modification of eligibility for commencement of authority for 
          optional annuities for dependents under the Survivor Benefit 
          Plan.
Sec. 645. Study of training costs, manning, operations tempo, and other 
          factors that affect retention of members of the Armed Forces 
          with special operations designations.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 661. Treatment of price surcharges of certain merchandise sold at 
          commissary stores.
Sec. 662. Limitations on lease of non-excess Department of Defense 
          property for protection of morale, welfare, and recreation 
          activities and revenue.
Sec. 663. Report on cost effectiveness of purchasing commercial 
          insurance for commissary and exchange facilities and 
          facilities of other morale, welfare, and recreation programs 
          and nonappropriated fund instrumentalities.
Sec. 664. Study and report regarding access of disabled persons to 
          morale, welfare, and recreation facilities and activities.

                        Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to 
          servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of 
          pay and allowances and travel and transportation allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding 
          debts or erroneous payments pending a decision to waive, 
          remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel 
          indebtedness of members and former members of the Armed Forces 
          incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the 
          uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of 
          National Guard and Reserve members returning from deployment 
          in Operation Iraqi Freedom or Operation Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a 
          combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive 
          pay.
Sec. 679. Sense of Congress calling for payment to World War II veterans 
          who survived Bataan Death March.

                    TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
          assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
          for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for 
          members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-counter 
          drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE 
          program.
Sec. 707. Relationship between the TRICARE program and employer-
          sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail 
          pharmacy system of pharmacy benefits program.

                     Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
          health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health 
          care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
          Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve 
          components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children 
          with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy 
          benefits program.
Sec. 719. Review of Department of Defense medical quality improvement 
          program.
Sec. 720. Report on distribution of hemostatic agents for use in the 
          field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by 
          members of the Armed Forces in Operation Iraqi Freedom and 
          Operation Enduring Freedom.

            Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program and 
          Medicare program.
Sec. 732. Requirements for support of military treatment facilities by 
          civilian contractors under TRICARE.
Sec. 733. Standards and tracking of access to health care services for 
          wounded, injured, or ill servicemembers returning to the 
          United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense 
          task force on mental health relating to mental health of 
          members who were deployed in Operation Iraqi Freedom and 
          Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current 
          contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of 
          the Armed Forces.

                        Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post 
          traumatic stress disorder and other mental health conditions.
Sec. 742. Requirement to certify and report on conversion of military 
          medical and dental positions to civilian medical and dental 
          positions.
Sec. 743. Three-year extension of joint incentives program on sharing of 
          health care resources by the Department of Defense and 
          Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and 
          assistance for members and former members of the Armed Forces 
          with traumatic brain injury.
Sec. 745. Recognition of Representative Lane Evans upon his retirement 
          from the House of Representatives.

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

  Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
          requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in 
          the Department of Defense.
Sec. 805. Additional certification requirements for major defense 
          acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition 
          programs.
Sec. 807. Lead system integrators.

              Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense information 
          technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
          major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor personnel 
          authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
          price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

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

Sec. 831. One-year extension of special temporary contract closeout 
          authority.
Sec. 832. Limitation on contracts for the acquisition of certain 
          services.
Sec. 833. Use of Federal supply schedules by State and local governments 
          for goods and services for recovery from natural disasters, 
          terrorism, or nuclear, biological, chemical, or radiological 
          attack.
Sec. 834. Waivers to extend task order contracts for advisory and 
          assistance services.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense 
          industrial base capabilities and acquisitions of articles, 
          materials, and supplies manufactured outside the United 
          States.
Sec. 842. Protection of strategic materials critical to national 
          security.
Sec. 843. Strategic Materials Protection Board.

                        Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by 
          contractors of the Department of Defense.
Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853. Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency program 
          management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype 
          projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Increase in authorized number of Assistant Secretaries of 
          Defense.
Sec. 902. Modifications to the Combatant Commander Initiative Fund.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
          Department of Defense Regional Centers for Security Studies.
Sec. 905. Oversight by Office of Under Secretary of Defense for 
          Acquisition, Technology, and Logistics of exercise of 
          acquisition authority by combatant commanders and heads of 
          Defense Agencies.
Sec. 906. Standardization of statutory references to ``national security 
          system'' within laws applicable to Department of Defense.
Sec. 907. Correction of reference to predecessor of Defense Information 
          Systems Agency.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
          Interagency Global Positioning Executive Board.
Sec. 912.  Extension of authority for pilot program for provision of 
          space surveillance network services to non-United States 
          Government entities.
Sec. 913. Operationally responsive space.
Sec. 914. Independent review and assessment of Department of Defense 
          organization and management for national security in space.

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
          site versus on-site treatment and disposal of hydrolysate 
          derived from neutralization of VX nerve gas at Newport 
          Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Four-year extension of authority of Secretary of Defense to 
          engage in commercial activities as security for intelligence 
          collection activities.
Sec. 932. Annual reports on intelligence oversight activities of the 
          Department of Defense.
Sec. 933. Collection by National Security Agency of service charges for 
          certification or validation of information assurance products.

                        Subtitle E--Other Matters

Sec. 941. Department of Defense policy on unmanned systems.
Sec. 942. Executive Schedule level IV for Deputy Under Secretary of 
          Defense for Logistics and Materiel Readiness.
Sec. 943. Study and report on reform of Defense Travel System.
Sec. 944. Administration of pilot project on Civilian Linguist Reserve 
          Corps.
Sec. 945. Improvement of authorities on the National Security Education 
          Program.
Sec. 946. Report on the posture of United States Special Operations 
          Command to conduct the global war on terrorism.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
          appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
          to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
          fiscal year 2007.
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1007. Modification of date of submittal of OMB/CBO report on 
          scoring of outlays.
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and 
          Iraq.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Aircraft carrier force structure.
Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as 
          the U.S.S. Gerald R. Ford.
Sec. 1013. Transfer of naval vessels to foreign nations based upon 
          vessel class.
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign 
          shipyards.
Sec. 1015. Report on options for future lease arrangement for Guam 
          Shipyard.
Sec. 1016. Assessments of naval vessel construction efficiencies and of 
          effectiveness of special contractor incentives.
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul, 
          repair, and maintenance of vessels in the United States.
Sec. 1018. Riding gang member requirements.
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government 
          of Greece.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority of Department of Defense to provide 
          additional support for counterdrug activities of other 
          governmental agencies.
Sec. 1022. Extension and expansion of Department of Defense authority to 
          provide support for counter-drug activities of certain foreign 
          governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
          counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department of 
          Defense expenditures to support foreign counterdrug 
          activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
          and South and Central Asian regions.
Sec. 1026. Report on United States support for Operation Bahamas, Turks 
          & Caicos.

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial 
          Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant 
          command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and 
          intertheater airlift requirements and sealift mobility 
          requirements.
Sec. 1035. Presidential report on improving interagency support for 
          United States 21st century national security missions and 
          interagency operations in support of stability, security, 
          transition, and reconstruction operations.

                           Subtitle E--Reports

Sec. 1041. Additional element in annual report on chemical and 
          biological warfare defense.
Sec. 1042. Report on biodefense human capital requirements in support of 
          biosafety laboratories.
Sec. 1043. Report on technologies for neutralizing or defeating threats 
          to military rotary-wing aircraft from portable air defense 
          systems and rocket-propelled grenades.
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the 
          National Airspace System.
Sec. 1045. Report on incentives to encourage certain members and former 
          members of the Armed Forces to serve in the Bureau of Customs 
          and Border Protection.
Sec. 1046. Repeal of certain report requirements.
Sec. 1047. Requirement for identification of recently enacted recurring 
          reporting requirements applicable to the Department of 
          Defense.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal 
          sources to defray Department of Defense costs of conferences.
Sec. 1052. Increased flexibility in use of funds for Joint Staff 
          exercises.
Sec. 1053. Prohibition on parking of funds.
Sec. 1054. Modification of authorities relating to the Special Inspector 
          General for Iraq Reconstruction.

                 Subtitle G--Matters Involving Detainees

Sec. 1061. Provision of information to Congress on certain criminal 
          investigations and prosecutions involving detainees.

                        Subtitle H--Other Matters

Sec. 1071. Technical and clerical amendments.
Sec. 1072. Revision to authorities relating to Commission on the 
          Implementation of the New Strategic Posture of the United 
          States.
Sec. 1073. Revised deadline for submission of final report of EMP 
          Commission.
Sec. 1074. Extension of returning worker exemption to H-2B numerical 
          limitation.
Sec. 1075. Patent term extensions for the badges of the American Legion, 
          the American Legion Women's Auxiliary, and the Sons of the 
          American Legion.
Sec. 1076. Use of the Armed Forces in major public emergencies.
Sec. 1077. Increased hunting and fishing opportunities for members of 
          the Armed Forces, retired members, and disabled veterans.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Accrual of annual leave for members of the uniformed services 
          performing dual employment.
Sec. 1102. Strategy for improving the senior management, functional, and 
          technical workforce of the Department of Defense.
Sec. 1103. Three-year extension of authority for experimental personnel 
          management program for scientific and technical personnel.
Sec. 1104. Reports on members of the Armed Forces and civilian employees 
          of the Department of Defense serving in the legislative 
          branch.
Sec. 1105. Extension of authority to waive annual limitation on total 
          compensation paid to Federal civilian employees.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
          operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
          agreements to lend certain military equipment to foreign 
          forces in Iraq and Afghanistan for personnel protection and 
          survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
          Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
          Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
          military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to program 
          to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
          education and training materials and information technology to 
          enhance military interoperability.

      Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. North Korea.
Sec. 1212. Report on participation of multinational partners in the 
          United Nations Command in the Republic of Korea.
Sec. 1213. Intelligence on Iran.
Sec. 1214. Sense of Congress on United States policy on the nuclear 
          programs of Iran.

                        Subtitle C--Other Matters

Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations 
          on annual amount of liabilities the United States may accrue 
          under acquisition and cross-servicing agreements.
Sec. 1222. Modification of limitations on assistance under the American 
          Servicemembers' Protection Act of 2002.
Sec. 1223. Humanitarian support for Iraqi children in urgent need of 
          medical care.
Sec. 1224. Sense of Congress opposing the granting of amnesty by the 
          government of Iraq to persons known to have attacked, killed, 
          or wounded members of the United States Armed Forces in Iraq.
Sec. 1225. Annual reports on United States contributions to the United 
          Nations.
Sec. 1226. Comprehensive regional strategy and annual reports on 
          Somalia.
Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
Sec. 1228. Sense of Congress concerning cooperation with Russia on 
          issues pertaining to missile defense.
Sec. 1229. Sense of Congress calling for convening of a summit for a 
          comprehensive political agreement for Iraq.
Sec. 1230. Sense of Congress on the commendable actions of the Armed 
          Forces in Iraq.
Sec. 1231. Annual report on foreign sales of significant military 
          equipment manufactured in the United States.

   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. Extension of temporary authority to waive limitation on 
          funding for chemical weapons destruction facility in Russia.
Sec. 1304. National Academy of Sciences study of prevention of 
          proliferation of biological weapons.

  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

Sec. 1401. Enhancement to authority to pay rewards for assistance in 
          combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to threat 
          posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq 
          and Afghanistan outside of secure military operating bases be 
          protected by Improvised Explosive Device (IED) jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs 
          of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel.
Sec. 1406. Database of emergency response capabilities.

   TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental 
          and cost of war execution reports.
Sec. 1519. Limitation on availability of funds for certain purposes 
          relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

            DIVISION  B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
Sec. 2002. Recognition of Representative Joel Hefley upon his retirement 
          from the House of Representatives.

                             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.

                            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 
          2004, 2005, and 2006 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. Modification of authority to carry out certain fiscal year 
          2006 project.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
          2006 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 2004 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2003 
          projects.
Sec. 2704. Effective date.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
          for emergency military construction.
Sec. 2802. One-year extension of temporary, limited authority to use 
          operation and maintenance funds for construction projects 
          outside the United States.
Sec. 2803. Repeal of requirement to determine availability of suitable 
          alternative housing for acquisition in lieu of construction of 
          new family housing.
Sec. 2804. Authority to continue to occupy leased family housing for 
          United States Southern Command personnel.
Sec. 2805. Consideration of alternative and more efficient uses for 
          general officer and flag officer quarters in excess of 6,000 
          square feet.
Sec. 2806. Modification of notification requirements related to cost 
          variation authority.
Sec. 2807. Consideration of local comparability of floor areas in 
          construction, acquisition, and improvement of military 
          unaccompanied housing.
Sec. 2808. Certification required for military construction projects for 
          facilities designed to provide training in urban operations.
Sec. 2809. Authority to carry out military construction projects in 
          connection with industrial facility investment program.
Sec. 2810. Repeal of special requirement for military construction 
          contracts on Guam.
Sec. 2811. Temporary expansion of authority to convey property at 
          military installations to support military construction.
Sec. 2812. Pilot projects for acquisition or construction of military 
          unaccompanied housing.

         Subtitle B--Real Property and Facilities Administration

Sec. 2821. Congressional notice requirements, in advance of acquisition 
          of land by condemnation for military purposes.
Sec. 2822. Consolidation of Department of Defense authorities regarding 
          granting of easements for rights-of-way.
Sec. 2823. Authority to grant restrictive easements for conservation 
          purposes in connection with land conveyances.
Sec. 2824. Maximum term of leases for structures and real property 
          relating to structures in foreign countries needed for 
          purposes other than family housing.
Sec. 2825. Consolidation of laws relating to transfer of Department of 
          Defense real property within the Department of Defense and to 
          other Federal agencies.
Sec. 2826. Defense access road program.
Sec. 2827. Reports on Army operational ranges.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Modification of deposit requirements in connection with lease 
          proceeds received at military installations approved for 
          closure or realignment after January 1, 2005.
Sec. 2832. Report on Air Force and Air National Guard bases affected by 
          2005 round of defense base closure and realignment.

                      Subtitle D--Land Conveyances

Sec. 2841. Conveyance of easement, Pine Bluff Arsenal, Arkansas.
Sec. 2842. Modification of land transfer authority, Potomac Annex, 
          District of Columbia.
Sec. 2843. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2844. Land conveyances, Omaha, Nebraska.
Sec. 2845. Land conveyance, Hopkinton, New Hampshire.
Sec. 2846. Land conveyance, North Hills Army Reserve Center, Allison 
          Park, Pennsylvania.
Sec. 2847. Transfer of jurisdiction, Fort Jackson, South Carolina.
Sec. 2848. Sense of Congress regarding land conveyance involving Army 
          Reserve Center, Marshall, Texas.
Sec. 2849. Modifications to land conveyance authority, Engineering 
          Proving Ground, Fort Belvoir, Virginia.
Sec. 2850. Land conveyance, Radford Army Ammunition Plant, New River 
          Unit, Virginia.

                       Subtitle E--Energy Security

Sec. 2851. Consolidation and enhancement of laws to improve Department 
          of Defense energy efficiency and conservation.
Sec. 2852. Department of Defense goal regarding use of renewable energy 
          to meet electricity needs.
Sec. 2853. Congressional notification of cancellation ceiling for 
          Department of Defense energy savings performance contracts.
Sec. 2854. Use of energy efficiency products in new construction.

                        Subtitle F--Other Matters

Sec. 2861. Availability of research and technical assistance under 
          Defense Economic Adjustment Program.
Sec. 2862. Availability of community planning assistance relating to 
          encroachment of civilian communities on military facilities 
          used for training by the Armed Forces.
Sec. 2863. Prohibitions against making certain military airfields or 
          facilities available for use by civil aircraft.
Sec. 2864. Modification of certain transportation projects.
Sec. 2865. Availability of funds for South County Commuter Rail project, 
          Providence, Rhode Island.
Sec. 2866. Fox Point Hurricane Barrier, Providence, Rhode Island.
Sec. 2867. Federal funding for fixed guideway projects.
Sec. 2868. Feasibility study regarding use of General Services 
          Administration property for Fort Belvoir, Virginia, 
          realignment.

 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 cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
          Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
          Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
          Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
          program.
Sec. 3115. Two-year extension of authority for appointment of certain 
          scientific, engineering, and technical personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
          margins and uncertainty methodology for assessing and 
          certifying the safety and reliability of the nuclear 
          stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
          of Energy and National Nuclear Security Administration.
Sec. 3118. Notice-and-wait requirement applicable to certain third-party 
          financing arrangements.
Sec. 3119. Extension of deadline for transfer of lands to Los Alamos 
          County, New Mexico, and of lands in trust for the Pueblo of 
          San Ildefonso.
Sec. 3120. Limitations on availability of funds for Waste Treatment and 
          Immobilization Plant.
Sec. 3121. Report on Russian Surplus Fissile Materials Disposition 
          Program.
Sec. 3122. Limitation on availability of funds for construction of MOX 
          Fuel Fabrication Facility.
Sec. 3123. Education of future nuclear engineers.
Sec. 3124. Technical correction related to authorization of 
          appropriations for fiscal year 2006.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to required receipt objectives for previously 
          authorized disposals from National Defense Stockpile.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2007.
Sec. 3502. Amendments relating to the Maritime Security Fleet program.
Sec. 3503. Applicability to certain Maritime Administration vessels of 
          limitations on overhaul, repair, and maintenance of vessels in 
          foreign shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: service 
          requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service 
          obligation performance reporting requirement.
Sec. 3507. Temporary authority to transfer obsolete combatant vessels to 
          Navy for disposal.
Sec. 3508. Qualifying Reserve duty for receipt of student incentive 
          payments.
Sec. 3509. Large passenger ship crew requirements.
Sec. 3510. Miscellaneous Maritime Administration provisions.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

 111. Sense of Congress on future multiyear procurement authority for 
          Family of Medium Tactical Vehicles.
 112. Multiyear procurement authority for MH-60R helicopters and mission 
          equipment.
 113. Funding profile for Modular Force Initiative of the Army.
 114. Bridge to Future Networks program.
 115. Comptroller General report on the contract for the Future Combat 
          Systems program.
 116. Priority for allocation of replacement equipment to operational 
          units based on combat mission deployment schedule.

                        Subtitle C--Navy Programs

 121. CVN-21 class aircraft carrier procurement.
 122. Adherence to Navy cost estimates for CVN-21 class of aircraft 
          carriers.
 123. Modification of limitation on total cost of procurement of CVN-77 
          aircraft carrier.
 124. Construction of first two vessels under the DDG-1000 Next-
          Generation Destroyer program.
 125. Adherence to Navy cost estimates for LHA Replacement amphibious 
          assault ship program.
 126. Cost limitation for San Antonio (LPD-17) class amphibious ship 
          program.
 127. Multiyear procurement authority for V-22 tiltrotor aircraft 
          program.
 128. Alternative technologies for future surface combatants.
 129. Sense of Congress regarding the size of the attack submarine 
          force.
 130. Quality control in procurement of ship critical safety items and 
          related services.

                     Subtitle D--Air Force Programs

 131. Bomber force structure.
 132. Strategic airlift force structure.
 133. Limitation on retirement of U-2 aircraft.
 134. Multiyear procurement authority for F-22A Raptor fighter aircraft.
 135. Limitation on retirement of KC-135E aircraft during fiscal year 
          2007.
 136. Limitation on retirement of F-117A aircraft during fiscal year 
          2007.
 137. Limitation on retirement of C-130E tactical airlift aircraft.
 138. Procurement of Joint Primary Aircraft Training System aircraft 
          after fiscal year 2006.
 139. Minuteman III intercontinental ballistic missile modernization.

               Subtitle E--Joint and Multiservice Matters

 141. Clarification of limitation on initiation of new unmanned aerial 
          vehicle systems.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for procurement for the Army as follows:
            (1) For aircraft, $3,451,429,000.
            (2) For missiles, $1,328,859,000.
            (3) For weapons and tracked combat vehicles, 
        $2,278,604,000.
            (4) For ammunition, $1,984,325,000.
            (5) For other procurement, $7,687,502,000.
            (6) For National Guard Equipment, $318,000,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for procurement for the Navy as follows:
            (1) For aircraft, $10,734,071,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,549,020,000.
            (3) For shipbuilding and conversion, 
        $11,021,553,000.
            (4) For other procurement, $4,995,033,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 2007 for procurement for the 
Marine Corps in the amount of $1,253,813,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for fiscal year 2007 for 
procurement of ammunition for the Navy and the Marine Corps in 
the amount of $797,943,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for procurement for the Air Force as follows:
            (1) For aircraft, $12,179,154,000.
            (2) For ammunition, $1,072,749,000.
            (3) For missiles, $4,171,886,000.
            (4) For other procurement, $15,443,286,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for Defense-wide procurement in the amount of 
$2,886,361,000.

                       Subtitle B--Army Programs

SEC. 111. SENSE OF CONGRESS ON FUTURE MULTIYEAR PROCUREMENT AUTHORITY 
                    FOR FAMILY OF MEDIUM TACTICAL VEHICLES.

    (a) Future Acquisition Strategy.--It is the sense of 
Congress that, as part of the Army's planning, programming, and 
budgeting process for fiscal year 2008, the Secretary of the 
Army should request from Congress authority by law to enter 
into a multiyear procurement (MYP) contract for the Family of 
Medium Tactical Vehicles (FMTV) program and that, in support of 
such request, the Secretary should submit to Congress the 
necessary justification materials required by law to justify a 
multiyear procurement (MYP) contract, including the material 
required by section 2306b of title 10, United States Code.
    (b) Incorporation of Product Improvements.--It is the sense 
of Congress that any proposal by the Secretary of the Army for 
multiyear procurement authority for procurement of vehicles 
under the Family of Medium Tactical Vehicles program should 
provide for incorporation into the vehicles to be procured 
through such authority of improvements from--
            (1) lessons learned from operations involving the 
        Global War on Terrorism; and
            (2) product improvement programs carried out for 
        the Family of Medium Tactical Vehicles program in the 
        areas of force protection, survivability, reliability, 
        network communications, situational awareness, and 
        safety.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR MH-60R HELICOPTERS AND 
                    MISSION EQUIPMENT.

    (a) MH-60R Helicopter.--Subject to subsection (c), the 
Secretary of the Army, acting as executive agent for the 
Department of the Navy, may enter into a multiyear contract for 
the procurement of MH-60R helicopters.
    (b) MH-60R Helicopter Mission Equipment.--Subject to 
subsection (c), the Secretary of the Navy may enter into a 
multiyear contract for the procurement of MH-60R helicopter 
mission equipment for the helicopters covered by a multiyear 
contract under subsection (a).
    (c) Contract Requirements.--Any multiyear contract under 
this section--
            (1) shall be entered into in accordance with 
        section 2306b of title 10, United States Code, and 
        shall commence with the fiscal year 2007 program year; 
        and
            (2) shall provide that any obligation of the United 
        States to make a payment under the contract is subject 
        to the availability of appropriations for that purpose.

SEC. 113. FUNDING PROFILE FOR MODULAR FORCE INITIATIVE OF THE ARMY.

    The Secretary of the Army shall set forth in the budget 
presentation materials of the Army submitted to Congress in 
support of the President's budget for any fiscal year after 
fiscal year 2007, and in other relevant materials submitted to 
Congress with respect to the budget of the Army for any such 
fiscal year, all amounts for procurement for the M1A2 Abrams 
tank System Enhancement Program (SEP) and for the Bradley A3 
fighting vehicle as elements within the amounts requested for 
the Modular Force Initiative of the Army, in accordance with 
the report of the Army titled ``The Army Modular Force 
Initiative'', submitted to Congress in March 2006.

SEC. 114. BRIDGE TO FUTURE NETWORKS PROGRAM.

    (a) Limitation on Fiscal Year 2007 Amount.--Of the amount 
authorized to be appropriated for the Army for fiscal year 2007 
for Other Procurement, Army, that is available for the program 
of the Army designated as the Bridge to Future Networks, not 
more than 75 percent shall be made available for obligation 
until the Secretary of the Army submits to the congressional 
defense committees a report on that program that includes the 
matters specified in subsection (b).
    (b) Matters To Be Included.--The report under subsection 
(a) shall include the following:
            (1) An analysis of how the systems specified in 
        subsection (c) will fit together, including, for each 
        such system, an analysis of whether there are 
        opportunities to leverage technologies and equipment 
        from that system as part of the development of the 
        other systems.
            (2) A description of the extent to which components 
        of the systems specified in subsection (c) could be 
        used together as elements of a single tactical network.
            (3) A description of the strategy of the Army for 
        completing the systems engineering necessary to ensure 
        the end-to-end interoperability of a single tactical 
        network referred to in paragraph (2).
            (4) An assessment of the costs of acquiring each of 
        the systems specified in subsection (c).
            (5) An assessment of the technical compatibility of 
        the systems specified in subsection (c).
            (6) A description of the plans of the Army for 
        fielding the systems specified in subsection (c).
            (7) A description of the plans of the Army for 
        sustaining the Joint Network Node through fiscal year 
        2020 and an assessment of the need to upgrade its 
        technologies and equipment.
            (8) A description of the plans of the Army for the 
        insertion of new technology into the Joint Network 
        Node.
    (c) Specified Systems.--The systems referred to in 
subsection (b) are as follows:
            (1) The Joint Network Node (JNN) element of the 
        Bridge to Future Networks program.
            (2) The Warfighter Information Network-Tactical 
        (WIN-T) program.
            (3) The Mounted Battle Command On-the-Move (MBCOTM) 
        system.

SEC. 115. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE FUTURE 
                    COMBAT SYSTEMS PROGRAM.

    (a) Report Required.--Not later than March 15, 2007, the 
Comptroller General of the United States shall submit to the 
congressional defense committees a report on the participation 
and activities of the lead systems integrator in the Future 
Combat Systems (FCS) program under the contract of the Army for 
the Future Combat Systems.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) A description of the responsibilities of the 
        lead systems integrator in managing the Future Combat 
        Systems program under the contract for the Future 
        Combat Systems, and an assessment of the manner in 
        which such responsibilities differ from the typical 
        responsibilities of a lead systems integrator under 
        acquisition contracts of the Department of Defense.
            (2) A description and assessment of the 
        responsibilities of the Army in managing the Future 
        Combat Systems program, including oversight of the 
        activities of the lead systems integrator and the 
        decisions made by the lead systems integrator.
            (3) An assessment of the manner in which the Army--
                    (A) ensures that the lead systems 
                integrator meets goals for the Future Combat 
                Systems in a timely manner; and
                    (B) evaluates the extent to which such 
                goals are met.
            (4) An identification of the mechanisms in place to 
        ensure the protection of the interests of the United 
        States in the Future Combat Systems program.
            (5) An identification of the mechanisms in place to 
        mitigate organizational conflicts of interest with 
        respect to competition on Future Combat Systems 
        technologies and equipment under subcontracts under the 
        Future Combat Systems program.

SEC. 116. PRIORITY FOR ALLOCATION OF REPLACEMENT EQUIPMENT TO 
                    OPERATIONAL UNITS BASED ON COMBAT MISSION 
                    DEPLOYMENT SCHEDULE.

    The Secretary of Defense shall ensure that priority for the 
distribution of new and combat-serviceable replacement 
equipment acquired using funds authorized to be appropriated by 
this title (together with associated support and test 
equipment) is given to operational units (regardless of 
component) based on combat mission deployment schedule.

                       Subtitle C--Navy Programs

SEC. 121. CVN-21 CLASS AIRCRAFT CARRIER PROCUREMENT.

    (a) Contract Authority for Construction.--In the fiscal 
year immediately following the last fiscal year of the contract 
for advance procurement for a CVN-21 class aircraft carrier 
designated CVN-78, CVN-79, or CVN-80, as applicable, the 
Secretary may enter into a contract for the construction of 
such aircraft carrier to be funded in the fiscal year of such 
contract for construction and the succeeding three fiscal 
years.
    (b) Condition for Out-Year Contract Payments.--A contract 
entered into under subsection (a) shall provide that any 
obligation of the United States to make a payment under the 
contract for any subsequent fiscal year is subject to the 
availability of appropriations for that purpose for such 
subsequent fiscal year.
    (c) Repeal of Superceded Provision.--Section 128 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3159) is repealed.

SEC. 122. ADHERENCE TO NAVY COST ESTIMATES FOR CVN-21 CLASS OF AIRCRAFT 
                    CARRIERS.

    (a) Limitation.--
            (1) Lead ship.--The total amount obligated or 
        expended from funds appropriated or otherwise made 
        available for Shipbuilding and Conversion, Navy, or for 
        any other procurement account, for the aircraft carrier 
        designated as CVN-21 may not exceed $10,500,000,000 (as 
        adjusted pursuant to subsection (b)).
            (2) Follow-on ships.--The total amount obligated or 
        expended from funds appropriated or otherwise made 
        available for Shipbuilding and Conversion, Navy, or for 
        any other procurement account, for the construction of 
        any ship that is constructed in the CVN-21 class of 
        aircraft carriers after the lead ship of that class may 
        not exceed $8,100,000,000 (as adjusted pursuant to 
        subsection (b)).
    (b) Adjustment of Limitation Amount.--The Secretary of the 
Navy may adjust the amount set forth in subsection (a) for any 
ship constructed in the CVN-21 class of aircraft carriers by 
the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-
        delivery costs incurred for that ship.
            (4) The amounts of increases or decreases in costs 
        of that ship that are attributable to insertion of new 
        technology into that ship, as compared to the 
        technology baseline as it was defined in the approved 
        acquisition program baseline estimate of December 2005.
            (5) The amounts of increases or decreases to 
        nonrecurring design and engineering cost attributable 
        to achieving compliance with the cost limitation.
            (6) The amounts of increases or decreases to cost 
        required to correct deficiencies that may affect the 
        safety of the ship and personnel or otherwise preclude 
        the ship from safe operations and crew certification.
    (c) Limitation on Technology Insertion Cost Adjustment.--
The Secretary of the Navy may use the authority under paragraph 
(4) of subsection (b) to adjust the amount set forth in 
subsection (a) for a ship referred to in that subsection with 
respect to insertion of new technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology would lower the life-cycle cost of the 
        ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology is required to meet an emerging threat 
        and the Secretary of Defense certifies to those 
        committees that such threat poses grave harm to 
        national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall 
        submit to the congressional defense committees each 
        year, at the same time that the budget is submitted 
        under section 1105(a) of title 31, United States Code, 
        for the next fiscal year, written notice of any change 
        in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined 
        to be associated with a cost referred to in subsection 
        (b).
            (2) Effective date.--The requirement in paragraph 
        (1) shall become effective with the budget request for 
        the year of procurement of the first ship referred to 
        in subsection (a).

SEC. 123. MODIFICATION OF LIMITATION ON TOTAL COST OF PROCUREMENT OF 
                    CVN-77 AIRCRAFT CARRIER.

    Section 122(f)(1) of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1650) is 
amended by striking ``$4,600,000,000 (such amount being the 
estimated cost for the procurement of the CVN-77 aircraft 
carrier in the March 1997 procurement plan)'' and inserting 
``$6,057,000,000''.

SEC. 124. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE DDG-1000 NEXT-
                    GENERATION DESTROYER PROGRAM.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 102(a)(3) for fiscal year 2007 for 
Shipbuilding and Conversion, Navy, $2,568,000,000 may be 
available for the construction of the first two vessels under 
the DDG-1000 Next-Generation Destroyer program.
    (b) Contract Authority.--
            (1) In general.--The Secretary of the Navy may 
        enter into a contract beginning with the fiscal year 
        2007 program year for procurement of each of the first 
        two vessels under the DDG-1000 Next-Generation 
        Destroyer program.
            (2) Limitation.--Not more than one contract 
        described in paragraph (1) may be awarded under that 
        paragraph to a single shipyard.
            (3) Split funding authorized.--Each contract under 
        paragraph (1) shall contemplate funding for the 
        procurement of a vessel under such contract using a 
        combination of funds appropriated for fiscal year 2007 
        and funds appropriated for fiscal year 2008.
            (4) Condition on out-year contract payments.--A 
        contract entered into under paragraph (1) shall provide 
        that any obligation of the United States to make a 
        payment under such contract for any fiscal year after 
        fiscal year 2007 is subject to the availability of 
        appropriations for that purpose for such fiscal year.
    (c) Sense of Congress on Funding for Follow-on Ships.--It 
is the sense of Congress that there is sufficient benefit to 
authorizing the one-time exception provided in this section to 
the full funding policy in order to support the competitive 
procurement of the follow-on ships of the DDG-1000 Next-
Generation Destroyer program. However, it is the expectation of 
Congress that the Secretary of the Navy will structure the DDG-
1000 program so that each ship, after the first two ships, is 
procured using the method of full funding in a single year.

SEC. 125. ADHERENCE TO NAVY COST ESTIMATES FOR LHA REPLACEMENT 
                    AMPHIBIOUS ASSAULT SHIP PROGRAM.

    (a) Limitation.--The total amount obligated or expended 
from funds appropriated or otherwise made available for 
Shipbuilding and Conversion, Navy, or for any other procurement 
account, for procurement of any ship that is constructed under 
the LHA Replacement (LHA(R)) amphibious assault ship program 
may not exceed $2,813,600,000 (as adjusted pursuant to 
subsection (b)).
    (b) Adjustment of Limitation Amount.--The Secretary of the 
Navy may adjust the amount set forth in subsection (a) for any 
ship constructed under the LHA Replacement amphibious assault 
ship program by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-
        delivery costs incurred for that ship.
            (4) The amounts of increases or decreases in costs 
        of that ship that are attributable to insertion of new 
        technology into that ship, as compared to the 
        technology baseline as it was defined at the 
        development stage referred to as Milestone B.
            (5) The amounts of increases or decreases to 
        nonrecurring design and engineering cost attributable 
        to achieving compliance with the cost limitation.
            (6) The amounts of increases or decreases to cost 
        required to correct deficiencies that may affect the 
        safety of the ship and personnel or otherwise preclude 
        the ship from safe operations and crew certification.
            (7) Contract cost adjustments directly attributed 
        to the effect of Hurricane Katrina in August 2005 or 
        other force majeure contract modifications.
    (c) Limitation on Technology Insertion Cost Adjustment.--
The Secretary of the Navy may use the authority under paragraph 
(4) of subsection (b) to adjust the amount set forth in 
subsection (a) for a ship referred to in that subsection with 
respect to insertion of new technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology would lower the life-cycle cost of the 
        ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology is required to meet an emerging threat 
        and the Secretary of Defense certifies to those 
        committees that such threat poses grave harm to 
        national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall 
        submit to the congressional defense committees each 
        year, at the same time that the budget is submitted 
        under section 1105(a) of title 31, United States Code, 
        for the next fiscal year, written notice of any change 
        in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined 
        to be associated with a cost referred to in subsection 
        (b).
            (2) Effective date.--The requirement in paragraph 
        (1) shall become effective with the budget request for 
        the year of procurement of the first ship referred to 
        in subsection (a).

SEC. 126. COST LIMITATION FOR SAN ANTONIO (LPD-17) CLASS AMPHIBIOUS 
                    SHIP PROGRAM.

    (a) Limitation.--
            (1) Procurement cost.--The total amount obligated 
        or expended from funds appropriated or otherwise made 
        available for Shipbuilding and Conversion, Navy, for 
        the San Antonio-class amphibious ships designated as 
        LPD-22, LPD-23, LPD-24, and LPD-25 may not exceed the 
        amount for each such vessel specified in paragraph (2).
            (2) Specified cost limit by vessel.--The limitation 
        under this subsection for each vessel specified in 
        paragraph (1) is the following:
                    (A) For the LPD-22 ship, $1,523,000,000 (as 
                adjusted pursuant to subsection (b)).
                    (B) For the LPD-23 ship, $1,477,000,000 (as 
                adjusted pursuant to subsection (b)).
                    (C) For the LPD-24 ship, $1,633,000,000 (as 
                adjusted pursuant to subsection (b)).
                    (D) For the LPD-25 ship, $1,927,000,000 (as 
                adjusted pursuant to subsection (b)).
    (b) Adjustment of Limitation Amounts.--The Secretary of the 
Navy may adjust the amount set forth in subsection (a) for any 
ship specified in that subsection by the following:
            (1) The amounts of increases or decreases in costs 
        attributable to economic inflation after September 30, 
        2006.
            (2) The amounts of increases or decreases in costs 
        attributable to compliance with changes in Federal, 
        State, or local laws enacted after September 30, 2006.
            (3) The amounts of outfitting costs and post-
        delivery costs incurred for that ship.
            (4) The amounts of increases or decreases in costs 
        of that ship that are attributable to insertion of new 
        technology into that ship, as compared to the 
        technology built into the U.S.S. San Antonio (LPD-17), 
        the lead ship of the LPD-17 class.
            (5) Contract cost adjustments directly attributed 
        to the effect of Hurricane Katrina in August 2005 or 
        other force majeure contract modifications.
            (6) The amounts of closeout costs associated with 
        completion of the LPD-17 class program.
    (c) Limitation on Technology Insertion Cost Adjustment.--
The Secretary of the Navy may use the authority under paragraph 
(4) of subsection (b) to adjust the amount set forth in 
subsection (a) for any LPD-17 class ship with respect to 
insertion of new technology into that ship only if--
            (1) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology would lower the life-cycle cost of the 
        ship; or
            (2) the Secretary determines, and certifies to the 
        congressional defense committees, that insertion of the 
        new technology is required to meet an emerging threat 
        and the Secretary of Defense certifies to those 
        committees that such threat poses grave harm to 
        national security.
    (d) Written Notice of Change in Amount.--
            (1) Requirement.--The Secretary of the Navy shall 
        submit to the congressional defense committees each 
        year, at the same time that the budget is submitted 
        under section 1105(a) of title 31, United States Code, 
        for the next fiscal year, written notice of any change 
        in the amount set forth in subsection (a) during the 
        preceding fiscal year that the Secretary has determined 
        to be associated with a cost referred to in subsection 
        (b).
            (2) Effective date.--The requirement in paragraph 
        (1) shall become effective with the budget request for 
        the year of procurement of the first ship referred to 
        in subsection (a).

SEC. 127. MULTIYEAR PROCUREMENT AUTHORITY FOR V-22 TILTROTOR AIRCRAFT 
                    PROGRAM.

    The Secretary of the Navy, in accordance with section 2306b 
of title 10, United States Code, and acting as executive agent 
for the Secretary of the Air Force and the commander of the 
United States Special Operations Command, may enter into a 
multiyear contract, beginning with the fiscal year 2008 program 
year, for procurement of V-22 tiltrotor aircraft.

SEC. 128. ALTERNATIVE TECHNOLOGIES FOR FUTURE SURFACE COMBATANTS.

    (a) Findings.--Congress makes the following findings:
            (1) Securing and maintaining access to affordable 
        and plentiful sources of energy is a vital national 
        security interest for the United States.
            (2) The Nation's dependence upon foreign oil is a 
        threat to national security due to the inherently 
        volatile nature of the global oil market and the 
        political instability of some of the world's largest 
        oil producing states.
            (3) Given the recent increase in the cost of crude 
        oil, which cannot realistically be expected to improve 
        over the long term, other energy sources must be 
        seriously considered.
            (4) Alternate propulsion sources such as nuclear 
        power offer many advantages over conventional power for 
        major surface combatant ships of the Navy, including--
                    (A) virtually unlimited high-speed 
                endurance;
                    (B) elimination of vulnerable refueling; 
                and
                    (C) reduction in the requirement for 
                replenishment vessels and the need to protect 
                those vessels.
    (b) Sense of Congress.--In light of the findings in 
subsection (a), it is the sense of Congress that the Navy 
should make greater use of alternative technologies, including 
expanded application of integrated power systems, fuel cells, 
and nuclear power, for propulsion of future major surface 
combatant ships.
    (c) Requirement.--The Secretary of the Navy shall include 
integrated power systems, fuel cells, and nuclear power as 
propulsion alternatives to be evaluated within the analysis of 
alternatives for future major surface combatant ships.

SEC. 129. SENSE OF CONGRESS REGARDING THE SIZE OF THE ATTACK SUBMARINE 
                    FORCE.

    (a) Findings.--Congress makes the following findings:
            (1) The United States Navy must be large enough, 
        agile enough, and lethal enough to deter any threat and 
        defeat any foe.
            (2) The proliferation of modern nuclear and 
        nonnuclear submarines in the navies of nations around 
        the globe will make undersea superiority a more 
        significant challenge in the future.
            (3) The unique combination of firepower, stealth, 
        sensors, and communications equipment contained in a 
        modern attack submarine make the attack submarine a 
        critical component of the Armed Forces of the United 
        States.
            (4) The report entitled ``Report to Congress on 
        Annual Long-Range Plan for Construction of Naval 
        Vessels for fiscal year 2007'', submitted to Congress 
        by the Secretary of the Navy pursuant to section 231 of 
        title 10, United States Code--
                    (A) identifies future naval force structure 
                requirements indexed to Department of Defense 
                fiscal year 2020 threat assessments and 
                compliant with the Fiscal Year 2006 Quadrennial 
                Defense Review and, with respect to the attack 
                submarine force, identifies a need for the Navy 
                to maintain a fleet of not less than 48 attack 
                submarines; and
                    (B) projects that the attack submarine 
                force will fall below 48 vessels between 2020 
                and 2032.
    (b) Sense of Congress.--In light of the findings in 
subsection (a), it is the sense of Congress that the Secretary 
of the Navy should take all reasonable effort to accelerate the 
construction of Virginia Class submarines to maintain the 
attack submarine force structure at not less than 48 submarines 
and (if the number of attack submarines should fall below 48), 
to minimize the period the attack submarine force remains below 
48 vessels.

SEC. 130. QUALITY CONTROL IN PROCUREMENT OF SHIP CRITICAL SAFETY ITEMS 
                    AND RELATED SERVICES.

    (a) Quality Control Policy.--The Secretary of Defense shall 
prescribe in regulations a quality control policy for the 
procurement of the following:
            (1) Ship critical safety items.
            (2) Modifications, repair, and overhaul of ship 
        critical safety items.
    (b) Elements.--The policy required under subsection (a) 
shall include requirements as follows:
            (1) That the head of the design control activity 
        for ship critical safety items establish processes to 
        identify and manage the procurement, modification, 
        repair, and overhaul of such items.
            (2) That the head of the contracting activity for a 
        ship critical safety item enter into a contract for the 
        procurement, modification, repair, or overhaul of such 
        item only with a source on a qualified manufacturers 
        list or a source approved by the design control 
        activity in accordance with section 2319 of title 10, 
        United States Code (as amended by subsection (d)).
            (3) That the ship critical safety items delivered, 
        and the services performed with respect to such items, 
        meet all technical and quality requirements specified 
        by the design control activity.
    (c) Definitions.--In this section, the terms ``ship 
critical safety item'' and ``design control activity'' have the 
meanings given such terms in subsection (g) of 2319 of title 
10, United States Code (as so amended).
    (d) Conforming Amendments.--Section 2319 of title 10, 
United States Code, is amended--
            (1) in subsection (c)(3), by inserting ``or ship 
        critical safety item'' after ``aviation critical safety 
        item''; and
            (2) in subsection (g)--
                    (A) by redesignating paragraph (2) as 
                paragraph (3);
                    (B) by inserting after paragraph (1) the 
                following new paragraph (2):
            ``(2) The term `ship critical safety item' means 
        any ship part, assembly, or support equipment 
        containing a characteristic the failure, malfunction, 
        or absence of which could cause a catastrophic or 
        critical failure resulting in loss of or serious damage 
        to the ship or unacceptable risk of personal injury or 
        loss of life.''; and
                    (C) in paragraph (3), as so redesignated--
                            (i) by inserting ``or ship critical 
                        safety item'' after ``aviation critical 
                        safety item'';
                            (ii) by inserting ``, or the 
                        seaworthiness of a ship or ship 
                        equipment,'' after ``equipment''; and
                            (iii) by striking ``the item'' and 
                        inserting ``such item''.

                     Subtitle D--Air Force Programs

SEC. 131. BOMBER FORCE STRUCTURE.

    (a) Requirement for B-52 Force Structure.--
            (1) Retirement limitation.--During the B-52 
        retirement limitation period, the Secretary of the Air 
        Force--
                    (A) may not retire more than 18 B-52 
                aircraft; and
                    (B) shall maintain not less than 44 such 
                aircraft as combat-coded aircraft.
            (2) B-52 retirement limitation period.--For 
        purposes of paragraph (1), the B-52 retirement 
        limitation period is the period beginning on the date 
        of the enactment of this Act and ending on the date 
        that is the earlier of--
                    (A) January 1, 2018; and
                    (B) the date as of which a long-range 
                strike replacement aircraft with equal or 
                greater capability than the B-52H model 
                aircraft has attained initial operational 
                capability status.
    (b) Limitation on Retirement Pending Report on Bomber Force 
Structure.--
            (1) Limitation.--No funds authorized to be 
        appropriated for the Department of Defense may be 
        obligated or expended for retiring any of the 93 B-52H 
        bomber aircraft in service in the Air Force as of the 
        date of the enactment of this Act until 45 days after 
        the date on which the Secretary of the Air Force 
        submits the report specified in paragraph (2).
            (2) Report.--A report specified in this subsection 
        is a report submitted by the Secretary of the Air Force 
        to the Committees on Armed Services of the Senate and 
        the House of Representatives on the amount and type of 
        bomber force structure of the Air Force, including the 
        matters specified in paragraph (4).
            (3) Amount and type of bomber force structure 
        defined.--In this subsection, the term ``amount and 
        type of bomber force structure'' means the number of 
        each of the following types of aircraft that are 
        required to carry out the national security strategy of 
        the United States:
                    (A) B-2 bomber aircraft.
                    (B) B-52H bomber aircraft.
                    (C) B-1 bomber aircraft.
            (4) Matter To be included.--A report under 
        paragraph (2) shall include the following:
                    (A) The plan of the Secretary of the Air 
                Force for the modernization of the B-52, B-1, 
                and B-2 bomber aircraft fleets.
                    (B) The amount and type of bomber force 
                structure for the conventional mission and 
                strategic nuclear mission in executing two 
                overlapping ``swift defeat'' campaigns.
                    (C) A justification of the cost and 
                projected savings of any reductions to the B-
                52H bomber aircraft fleet as a result of the 
                retirement of the B-52H bomber aircraft covered 
                by the report.
                    (D) The life expectancy of each bomber 
                aircraft to remain in the bomber force 
                structure.
                    (E) The capabilities of the bomber force 
                structure that would be replaced, augmented, or 
                superseded by any new bomber aircraft.
            (5) Preparation of report.--A report under 
        paragraph (2) shall be prepared by the Institute for 
        Defense Analyses and submitted to the Secretary of the 
        Air Force for submittal by the Secretary in accordance 
        with that paragraph.

SEC. 132. STRATEGIC AIRLIFT FORCE STRUCTURE.

    Section 8062 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(g)(1) Effective October 1, 2008, the Secretary of the 
Air Force shall maintain a total aircraft inventory of 
strategic airlift aircraft of not less than 299 aircraft.
    ``(2) In this subsection:
            ``(A) The term `strategic airlift aircraft' means 
        an aircraft--
                    ``(i) that has a cargo capacity of at least 
                150,000 pounds; and
                    ``(ii) that is capable of transporting 
                outsized cargo an unrefueled range of at least 
                2,400 nautical miles.
            ``(B) The term `outsized cargo' means any single 
        item of equipment that exceeds 1,090 inches in length, 
        117 inches in width, or 105 inches in height.''.

SEC. 133. LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    (a) Fiscal Year 2007.--The Secretary of the Air Force may 
not retire any U-2 aircraft of the Air Force in fiscal year 
2007.
    (b) Years After Fiscal Year 2007.--
            (1) Certification required.--After fiscal year 
        2007, the Secretary of the Air Force may retire a U-2 
        aircraft only if the Secretary of Defense certifies to 
        Congress that the intelligence, surveillance, and 
        reconnaissance (ISR) capabilities provided by the U-2 
        aircraft no longer contribute to mitigating any gaps in 
        intelligence, surveillance, and reconnaissance 
        capabilities identified in the 2006 Quadrennial Defense 
        Review.
            (2) Limitations.--No action may be taken by the 
        Department of Defense to retire (or to prepare to 
        retire) any U-2 aircraft before a certification 
        specified in paragraph (1) is submitted to Congress. If 
        such a certification is submitted, no such action may 
        be taken until after the end of the 60-day period 
        beginning on the date on which the certification is 
        submitted.

SEC. 134. MULTIYEAR PROCUREMENT AUTHORITY FOR F-22A RAPTOR FIGHTER 
                    AIRCRAFT.

    (a) Prohibition on Use of Incremental Funding.--The 
Secretary of the Air Force may not use incremental funding for 
the procurement of F-22A aircraft.
    (b) Multiyear Authority.--The Secretary of the Air Force 
may enter into a multiyear contract for the procurement of up 
to 60 F-22A Raptor fighter aircraft beginning with the 2007 
program year.
    (c) Compliance With Law Applicable to Multiyear 
Contracts.--A contract under subsection (b) for the procurement 
of F-22A aircraft shall be entered into in accordance with 
section 2306b of title 10, United States Code, except that, 
notwithstanding subsection (k) of that section, such a contract 
may not be for a period in excess of three program years.
    (d) Secretary of Defense Certification.--In the case of a 
contract under subsection (b) for the procurement of F-22A 
aircraft, a certification under subsection (i)(1)(A) of section 
2306b of title 10, United States Code, with respect to that 
contract may only be submitted if the certification includes an 
additional certification by the Secretary that each of the 
conditions specified in subsection (a) of that section has been 
satisfied with respect to that contract, as follows:
            (1) That the use of such contract will result in 
        substantial savings of the total anticipated costs of 
        carrying out the program through annual contracts.
            (2) That the minimum need for the property to be 
        purchased is expected to remain substantially unchanged 
        during the contemplated contract period in terms of 
        production rate, procurement rate, and total 
        quantities.
            (3) That there is a reasonable expectation that 
        throughout the contemplated contract period the 
        Secretary of the Air Force will request funding for the 
        contract at the level required to avoid contract 
        cancellation.
            (4) That there is a stable design for the property 
        to be acquired and that the technical risks associated 
        with such property are not excessive.
            (5) That the estimates of both the cost of the 
        contract and the anticipated cost avoidance through the 
        use of a multiyear contract are realistic.
            (6) That the use of such contract will promote the 
        national security of the United States.
In certifying that the cost savings are substantial, the 
Secretary shall duly consider the historical cost savings that 
led to a decision to proceed with a multiyear procurement 
contract under section 2306b of title 10, United States Code, 
in the case of previous aviation-related multiyear contracts 
authorized by law dating back to fiscal year 1982.
    (e) FFRDC Cost Report.--The Secretary of Defense shall 
provide for a federally funded research and development center 
(other than the Institute for Defense Analyses) to report on 
the cost estimates for a three year, 60-aircraft, F-22A 
multiyear procurement program, beginning in fiscal year 2007, 
compared to a corresponding annual procurement program.
    (f) Notice-and-Wait Requirement.--Upon submission to 
Congress of a certification referred to in subsection (d) with 
respect to a proposed contract under subsection (b) for the 
procurement of F-22A aircraft and the Secretary's submission to 
the congressional defense committees of the report referred to 
in subsection (e), the contract may then be entered into only 
after the end of the 30-day period beginning on the later of 
the date of the submission of the certification or the date of 
the submission of the report.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT DURING FISCAL 
                    YEAR 2007.

    (a) Limitation.--The number of KC-135E aircraft retired by 
the Secretary of the Air Force during fiscal year 2007 may not 
exceed 29.
    (b) Treatment of Retired Aircraft.--The Secretary of the 
Air Force shall maintain each KC-135E aircraft that is retired 
by the Secretary after September 30, 2006, in a condition that 
would allow recall of that aircraft to future service in the 
Air Force Reserve, Air National Guard, or active forces aerial 
refueling force structure.

SEC. 136. LIMITATION ON RETIREMENT OF F-117A AIRCRAFT DURING FISCAL 
                    YEAR 2007.

    (a) Limitation.--The number of F-117A aircraft retired by 
the Secretary of the Air Force during fiscal year 2007 may not 
exceed 10.
    (b) Treatment of Retired Aircraft.--The Secretary of the 
Air Force shall maintain each F-117A aircraft that is retired 
by the Secretary after September 30, 2006, in a condition that 
would allow recall of that aircraft to future service.

SEC. 137. LIMITATION ON RETIREMENT OF C-130E TACTICAL AIRLIFT AIRCRAFT.

    (a) Limitation.--The number of C-130E tactical airlift 
aircraft retired by the Secretary of the Air Force during 
fiscal year 2007 may not exceed 51.
    (b) Treatment of Retired Aircraft.--The Secretary of the 
Air Force shall maintain each C-130E tactical airlift aircraft 
that is retired by the Secretary after September 30, 2006, in a 
condition that would allow recall of that aircraft to future 
service.

SEC. 138. PROCUREMENT OF JOINT PRIMARY AIRCRAFT TRAINING SYSTEM 
                    AIRCRAFT AFTER FISCAL YEAR 2006.

    Any Joint Primary Aircraft Training System (JPATS) aircraft 
procured after fiscal year 2006 shall be procured through a 
contract under part 15 of the Federal Acquisition Regulation 
(FAR), relating to acquisition of items by negotiated contract 
(48 C.F.R. 15.000 et seq.), rather than through a contract 
under part 12 of the Federal Acquisition Regulation, relating 
to acquisition of commercial items (48 C.F.R. 12.000 et seq.).

SEC. 139. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILE 
                    MODERNIZATION.

    (a) Modernization of Intercontinental Ballistic Missiles 
Required.--The Secretary of the Air Force shall modernize 
Minuteman III intercontinental ballistic missiles in the United 
States inventory as required to maintain a sufficient supply of 
launch test assets and spares to sustain the deployed force of 
such missiles through 2030.
    (b) Limitation on Termination of Modernization Programs 
Pending Report.--
            (1) Limitation.--No funds authorized to be 
        appropriated for the Department of Defense may be 
        obligated or expended for the termination of any ICBM 
        modernization program with respect to the Minuteman III 
        intercontinental ballistic missile system, or for the 
        withdrawal of any Minuteman III intercontinental 
        ballistic missile from the active force, until 30 days 
        after the date on which the Secretary of Defense 
        submits to the congressional defense committees a 
        report described in subsection (c).
            (2) ICBM modernization program defined.--In this 
        subsection, the term ``ICBM Modernization program'' 
        means each of the following:
                    (A) The Guidance Replacement Program (GRP).
                    (B) The Propulsion Replacement Program 
                (PRP).
                    (C) The Propulsion System Rocket Engine 
                (PSRE) program.
                    (D) The Safety Enhanced Reentry Vehicle 
                (SERV) program.
    (c) Report Elements.--A report under subsection (b)(1) is a 
report setting forth the following:
            (1) A detailed strategic justification for the 
        proposal to reduce the Minuteman III intercontinental 
        ballistic missile force from 500 to 450 missiles, 
        including an analysis of the effects of the reduction 
        on the ability of the United States to assure allies 
        and dissuade potential competitors.
            (2) A detailed analysis of the strategic 
        ramifications of continuing to equip a portion of the 
        Minuteman III missile force with multiple independent 
        warheads rather than single warheads.
            (3) An assessment of the test assets and spares 
        required to maintain a force of 500 deployed Minuteman 
        III missiles through 2030.
            (4) An assessment of the test assets and spares 
        required to maintain a force of 450 deployed Minuteman 
        III missiles through 2030.
            (5) An inventory of currently available Minuteman 
        III missile test assets and spares.
            (6) A plan to sustain and complete the 
        modernization of all deployed and spare Minuteman III 
        missiles, a test plan, and an analysis of the funding 
        required to carry out modernization of all deployed and 
        spare Minuteman III missiles.
            (7) An assessment of whether halting upgrades to 
        the Minuteman III missiles withdrawn from the deployed 
        force would compromise the ability of those missiles to 
        serve as test assets.
            (8) A description of the plan of the Department of 
        Defense for extending the life of the Minuteman III 
        missile force beyond fiscal year 2030.

               Subtitle E--Joint and Multiservice Matters

SEC. 141. CLARIFICATION OF LIMITATION ON INITIATION OF NEW UNMANNED 
                    AERIAL VEHICLE SYSTEMS.

    (a) Applicability of Limitation Only to Procurement 
Funds.--Subsection (a) of section 142 of National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3164) is amended--
            (1) by inserting ``for procurement'' after ``the 
        Department of Defense''; and
            (2) by inserting before the period at the end the 
        following: ``(or by an official within the Office of 
        the Under Secretary designated by the Under Secretary 
        for that purpose)''.
    (b) Applicability Only to New Systems.--Subsection (b) of 
that section is amended to read as follows:
    ``(b) Exception for Existing Systems.--The limitation in 
subsection (a) does not apply with respect to an unmanned 
aerial vehicle (UAV) system (or any component or other item of 
associated equipment of any such system described in subsection 
(a)) if as of January 6, 2006--
            ``(1) the system (or component or item of 
        associated equipment) to be procured is otherwise under 
        contract or has previously been procured by the 
        Department; or
            ``(2) funds have been appropriated but not yet 
        obligated for the system (or component or item of 
        associated equipment).''.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Acquisition of, and independent cost analyses for, the Joint 
          Strike Fighter propulsion system.
Sec. 212. Expansion and extension of authority to award prizes for 
          advanced technology achievements.
Sec. 213. Defense Acquisition Challenge Program extension, enhancement, 
          and modification to address critical cost growth threshold 
          breaches in major defense acquisition programs.
Sec. 214. Future Combat Systems milestone review.
Sec. 215. Dedicated amounts for implementing or evaluating Navy 
          shipbuilding technology proposals under Defense Acquisition 
          Challenge Program.
Sec. 216. Independent estimate of costs of the Future Combat Systems.
Sec. 217. Funding of defense science and technology programs.
Sec. 218. Hypersonics development.
Sec. 219. Report on program for replacement of nuclear warheads on 
          certain Trident sea-launched ballistic missiles with 
          conventional warheads.

                  Subtitle C--Missile Defense Programs

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Limitation on use of funds for space-based interceptor.
Sec. 223. Policy of the United States on priorities in the development, 
          testing, and fielding of missile defense capabilities.
Sec. 224. One-year extension of Comptroller General assessments of 
          ballistic missile defense programs.
Sec. 225. Submittal of plans for test and evaluation of the operational 
          capability of the Ballistic Missile Defense System.
Sec. 226. Annual reports on transition of ballistic missile defense 
          programs to the military departments.

                        Subtitle D--Other Matters

Sec. 231. Policies and practices on test and evaluation to address 
          emerging acquisition approaches.
Sec. 232. Extension of requirement for Global Research Watch Program.
Sec. 233. Sense of Congress on technology sharing of Joint Strike 
          Fighter technology.
Sec. 234. Report on vehicle-based active protection systems for certain 
          battlefield threats.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the use of the Department of Defense for 
research, development, test, and evaluation as follows:
            (1) For the Army, $10,876,609,000.
            (2) For the Navy, $17,383,857,000.
            (3) For the Air Force, $24,235,951,000.
            (4) For Defense-wide activities, $21,111,559,000, 
        of which $181,520,000 is authorized for the Director of 
        Operational Test and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2007.--Of the amounts authorized to be 
appropriated by section 201, $11,662,554,000 shall be available 
for the Defense Science and Technology Program, including basic 
research, applied research, and advanced technology development 
projects.
    (b) Basic Research, Applied Research, and Advanced 
Technology Development Defined.--For purposes of this section, 
the term ``basic research, applied research, and advanced 
technology development'' means work funded in program elements 
for defense research and development under Department of 
Defense budget activity 1, 2, or 3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. ACQUISITION OF, AND INDEPENDENT COST ANALYSES FOR, THE JOINT 
                    STRIKE FIGHTER PROPULSION SYSTEM.

    (a) Acquisition.--
            (1) In general.--The Secretary of Defense shall 
        provide for the development and procurement of the 
        propulsion system for the Joint Strike Fighter aircraft 
        through the continued development and sustainment of 
        two interchangeable propulsion systems for that 
        aircraft by two separate contractors throughout the 
        life cycle of the aircraft.
            (2) Modifications prohibited.--Except as provided 
        by paragraph (3), the Secretary may not carry out any 
        modification to the acquisition program for the Joint 
        Strike Fighter aircraft that would result in the 
        development or procurement of the propulsion system for 
        that aircraft in a manner other than that required by 
        paragraph (1).
            (3) Modifications allowed.--Notwithstanding 
        paragraph (1), a modification described in paragraph 
        (2) may be carried out to the extent that each of the 
        following requirements is met:
                    (A) The Secretary of Defense has notified 
                the congressional defense committees of the 
                modification.
                    (B) Each of the reports required by 
                subsection (b) has been submitted.
                    (C) Funds are appropriated for that purpose 
                pursuant to an authorization of appropriations.
    (b) Independent Cost Analyses.--
            (1) In general.--A comprehensive and detailed cost 
        analysis of the Joint Strike Fighter engine program 
        shall be independently performed by each of the 
        following:
                    (A) The Comptroller General.
                    (B) A federally funded research and 
                development center selected by the Secretary of 
                Defense.
                    (C) The Secretary of Defense, acting 
                through the Cost Analysis Improvement Group of 
                the Office of the Secretary of Defense.
            (2) Matters covered.--Each such cost analysis shall 
        cover--
                    (A) an alternative under which the Joint 
                Strike Fighter aircraft is capable of using the 
                F135 engine only;
                    (B) an alternative under which the program 
                executes a one-time firm-fixed price contract 
                for a selected propulsion system for the Joint 
                Strike Fighter aircraft for the life cycle of 
                the aircraft following the Initial Service 
                Release of the propulsion system in fiscal year 
                2008;
                    (C) an alternative under which the Joint 
                Strike Fighter aircraft is capable of using 
                either the F135 engine or the F136 engine, and 
                the engine selection is carried out on a 
                competitive basis; and
                    (D) any other alternative, whether 
                competitive or sole source, that would reduce 
                total life-cycle cost, improve program 
                schedule, or both.
            (3) Reports.--Not later than March 15, 2007, the 
        Secretary of Defense, the Comptroller General, and the 
        chief executive officer of the federally funded 
        research and development center selected under 
        paragraph (1)(B) shall independently submit to the 
        congressional defense committees a report on the cost 
        analysis carried out under paragraph (1). Each such 
        report shall include each of the following matters:
                    (A) The key assumptions used in carrying 
                out the cost analysis.
                    (B) The methodology and techniques used in 
                carrying out the cost analysis.
                    (C) For each alternative required by 
                paragraph (2)--
                            (i) a comparison of the life-cycle 
                        costs, including costs in current and 
                        constant dollars and a net-present-
                        value analysis;
                            (ii) estimates of--
                                    (I) supply, maintenance, 
                                and other operations manpower 
                                required to support the 
                                alternative;
                                    (II) the number of flight 
                                hours required to achieve 
                                engine maturity and the year in 
                                which that is expected to be 
                                achieved; and
                                    (III) the total number of 
                                engines expected to be procured 
                                over the lifetime of the Joint 
                                Strike Fighter program; and
                            (iii) an evaluation of benefits, 
                        other than cost, provided by 
                        competition, to include an assessment 
                        of improved performance, operational 
                        readiness and warfighting capability, 
                        risk reduction, technology innovation, 
                        and contractor responsiveness.
                    (D) A description of the acquisition 
                strategies (including development and 
                production) that were used for, and experience 
                with respect to cost, schedule, and performance 
                under, past acquisition programs for engines 
                for tactical fighter aircraft, including the F-
                15, F-16, F-18, and F-22 aircraft.
                    (E) A comparison of the experiences under 
                past acquisition programs carried out on a 
                sole-source basis with respect to performance, 
                savings, maintainability, reliability, and 
                technical innovation.
                    (F) The impact that canceling the F136 
                competitive engine would have on the high-
                performance military engine industrial base, 
                and on the Department of Defense's ability to 
                make competitive engine choices for future 
                combat aircraft systems beyond the Joint Strike 
                Fighter.
                    (G) Conclusions and recommendations.
            (4) Certifications.--In submitting the report 
        required by paragraph (3), the Comptroller General and 
        the chief executive officer of the federally funded 
        research and development center shall also submit a 
        certification as to whether the Secretary of Defense 
        provided access to sufficient information to enable the 
        Comptroller General or the chief executive officer, as 
        the case may be, to make informed judgments on the 
        matters required to be included in the report.
    (c) Life-Cycle Costs Defined.--In this section, the term 
``life-cycle costs'' includes--
            (1) those elements of cost that would be considered 
        for a life-cycle cost analysis for a major defense 
        acquisition program, including procurement of engines, 
        procurement of spare engines, and procurement of engine 
        components and parts; and
            (2) good-faith estimates of routine engine costs 
        (such as performance upgrades and component 
        improvement) that historically have occurred in 
        tactical fighter engine programs.

SEC. 212. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD PRIZES FOR 
                    ADVANCED TECHNOLOGY ACHIEVEMENTS.

    (a) Expansion.--
            (1) In general.--Subsection (a) of section 2374a of 
        title 10, United States Code, is amended--
                    (A) by striking ``Director of the Defense 
                Advanced Research Projects Agency'' and 
                inserting ``Director of Defense Research and 
                Engineering and the service acquisition 
                executive for each military department''; and
                    (B) by striking ``a program'' and inserting 
                ``programs''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by striking ``The 
                program'' and inserting ``Each program''; and
                    (B) in subsection (d)--
                            (i) by striking ``The program'' and 
                        inserting ``A program''; and
                            (ii) by striking ``the Director'' 
                        and inserting ``an official referred to 
                        in that subsection''.
    (b) Extension.--Subsection (f) of such section is amended 
by striking ``September 30, 2007'' and inserting ``September 
30, 2010''.
    (c) Modification of Reporting Requirement.--Subsection (e) 
of such section is amended to read as follows:
    ``(e) Annual Report.--
            ``(1) In general.--Not later than March 1 of each 
        year, the Secretary shall submit to the Committee on 
        Armed Services of the Senate and the Committee on Armed 
        Services of the House of Representatives a report on 
        the activities carried out during the preceding fiscal 
        year under the authority in subsection (a).
            ``(2) Information included.--The report for a 
        fiscal year under this subsection shall include, for 
        each program under subsection (a), the following:
                    ``(A) A description of the proposed goals 
                of the competitions established under the 
                program, including the areas of research, 
                technology development, or prototype 
                development to be promoted by such competitions 
                and the relationship of such areas to the 
                military missions of the Department of Defense.
                    ``(B) An analysis of why the utilization of 
                the authority in subsection (a) was the 
                preferable method of achieving the goals 
                described in subparagraph (A) as opposed to 
                other authorities available to the Department, 
                such as contracts, grants, and cooperative 
                agreements.
                    ``(C) The total amount of cash prizes 
                awarded under the program, including a 
                description of the manner in which the amounts 
                of cash prizes awarded and claimed were 
                allocated among the accounts of the Department 
                for recording as obligations and expenditures.
                    ``(D) The methods used for the solicitation 
                and evaluation of submissions under the 
                program, together with an assessment of the 
                effectiveness of such methods.
                    ``(E) A description of the resources, 
                including personnel and funding, used in the 
                execution of the program, together with a 
                detailed description of the activities for 
                which such resources were used and an 
                accounting of how funding for execution was 
                allocated among the accounts of the Department 
                for recording as obligations and expenditures.
                    ``(F) A description of any plans to 
                transition the technologies or prototypes 
                developed as a result of the program into an 
                acquisition program of the Department.
            ``(3) Suspension of authority for failure to 
        include information.--For each program under subsection 
        (a), the authority to obligate or expend funds under 
        that program is suspended as of the date specified in 
        paragraph (1) if the Secretary does not, by that date, 
        submit a report that includes, for that program, all 
        the information required by paragraph (2). As of the 
        date on which the Secretary does submit a report that 
        includes, for that program, all the information 
        required by paragraph (2), the suspension is lifted.''.

SEC. 213. DEFENSE ACQUISITION CHALLENGE PROGRAM EXTENSION, ENHANCEMENT, 
                    AND MODIFICATION TO ADDRESS CRITICAL COST GROWTH 
                    THRESHOLD BREACHES IN MAJOR DEFENSE ACQUISITION 
                    PROGRAMS.

    (a) Assessment of Additional Issues Required in the Event 
of Critical Cost Growth.--Section 2433(e)(2)(A) of title 10, 
United States Code, is amended--
            (1) by redesignating clauses (i), (ii), and (iii) 
        as clauses (ii), (iii), and (iv) respectively; and
            (2) by inserting before clause (ii) (as so 
        redesignated) the following new clause:
                    ``(i) any design, engineering, 
                manufacturing, or technology integration issues 
                that contributed significantly to the cost 
                growth of the program;''.
    (b) Requirement for Challenge Program to Address Critical 
Cost Growth Threshold Breaches in Major Defense Acquisition 
Programs.--
            (1) Solicitation of challenge proposals.--Section 
        2359b(c) of title 10, United States Code, is amended--
                    (A) by redesignating paragraphs (4), (5), 
                and (6) as paragraphs (5), (6), and (7), 
                respectively; and
                    (B) by inserting after paragraph (3) the 
                following new paragraph (4):
            ``(4)(A) The Under Secretary shall establish 
        procedures for the prompt issuance of a solicitation 
        for challenge proposals addressing--
                    ``(i) any acquisition program for which, 
                since the last such announcement, the Secretary 
                concerned has determined under section 2433(d) 
                of this title that the program's acquisition 
                unit cost or procurement unit cost has 
                increased by a percentage equal to or greater 
                than the critical cost growth threshold for the 
                program (in this section referred to as a 
                `critical cost growth threshold breach'); and
                    ``(ii) any design, engineering, 
                manufacturing, or technology integration 
                issues, in accordance with the assessment 
                required by section 2433(e)(2)(A) of this 
                title, that have contributed significantly to 
                the cost growth of such program.
            ``(B) A solicitation under this paragraph may be 
        included in a broad agency announcement issued pursuant 
        to paragraph (3) as long as the broad agency 
        announcement is released in an expeditious manner 
        following the determination of the Secretary concerned 
        that a critical cost growth threshold breach has 
        occurred with respect to a major defense acquisition 
        program.''.
            (2) Requirement for guidelines for covering costs 
        of challenge proposals.--Section 2359b(e) of such title 
        is amended by adding at the end the following new 
        paragraph:
    ``(3) In the case of a challenge proposal submitted in 
response to a solicitation issued as a result of a critical 
cost growth threshold breach that is determined under full 
review and evaluation to satisfy each of the criteria specified 
in subsection (c)(5), the Under Secretary shall establish 
guidelines for covering the costs of the challenge proposal. If 
appropriate, such guidelines shall not be restricted to funding 
provided by the Defense Acquisition Challenge Program, but 
shall also consider alternative funding sources, such as the 
acquisition program with respect to which the breach 
occurred.''.
            (3) Action upon unfavorable full review and 
        evaluation.--Section 2359b of such title is amended--
                    (A) by redesignating subsections (f), (g), 
                (h), (i), and (j) as subsections (g), (h), (i), 
                (j), and (k) respectively; and
                    (B) by inserting after subsection (e) the 
                following new subsection (f):
    ``(f) Action Upon Unfavorable Full Review and Evaluation.--
Under procedures prescribed by the Under Secretary, if a 
challenge proposal is determined by a Panel to satisfy each of 
the criteria specified in subsection (c)(5), but is not 
determined under a full review and evaluation to satisfy such 
criteria, the following provisions apply:
            ``(1) The office carrying out the full review and 
        evaluation shall provide to the Panel that conducted 
        the preliminary evaluation a statement containing a 
        summary of the rationale for the unfavorable 
        evaluation.
            ``(2) If the Panel disagrees with the rationale 
        provided under paragraph (1), the Panel may return the 
        challenge proposal to the office for further 
        consideration.''.
            (4) Additional information required to be included 
        in annual report.--Section 2359b(j) of such title, as 
        redesignated by paragraph (3), is amended by striking 
        ``No report is required for a fiscal year in which the 
        Challenge Program is not carried out.'' and inserting 
        ``The report shall also include a list of each 
        challenge proposal that was determined by a Panel to 
        satisfy each of the criteria specified in subsection 
        (c)(5), but was not determined under a full review and 
        evaluation to satisfy such criteria, together with a 
        detailed rationale for the Department's determination 
        that such criteria were not satisfied.''.
    (c) Evaluation and Report Required.--The Under Secretary of 
Defense for Acquisition, Technology, and Logistics, in 
coordination with the service acquisition executives, shall--
            (1) evaluate the efficacy of the incentives 
        provided to encourage the adoption of each challenge 
        proposal receiving favorable full review and 
        evaluation, as required by section 2359b(e)(2) of title 
        10, United States Code;
            (2) identify additional incentives and authorities 
        required, if any, to further facilitate the adoption of 
        each challenge proposal receiving favorable full review 
        and evaluation, particularly in the case of challenge 
        proposals submitted in response to critical cost growth 
        threshold breaches (as such term is used in section 
        2359b of such title); and
            (3) not later than March 1, 2007, submit to the 
        Committees on Armed Services of the Senate and the 
        House of Representatives a report setting forth the 
        results of such evaluation and identification.
    (d) Priority for Proposals From Certain Businesses.--
Paragraph (6) of section 2359b(c) of such title, as 
redesignated by paragraph (b)(1)(A), is amended to read as 
follows:
    ``(6) The Under Secretary--
            ``(A) 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; and
            ``(B) may establish procedures to ensure that the 
        Challenge Program establishes appropriate priorities 
        for proposals from businesses that are not major 
        contractors with the Department of Defense.''.
    (e) Confidentiality.--Subsection (h) of section 2359b of 
such title, as redesignated by subsection (b)(3), is amended--
            (1) by amending the heading to read as follows: 
        ``Conflicts of Interest and Confidentiality''; and
            (2) by striking the period at the end and inserting 
        the following: ``and that the identity of any person or 
        activity submitting a challenge proposal is not 
        disclosed outside the Federal Government, prior to 
        contract award, without the consent of the person or 
        activity. For purposes of the proceeding sentence, the 
        term `Federal Government' includes both employees of 
        the Federal Government and employees of Federal 
        Government contractors providing advisory and 
        assistance services as described in part 37 of the 
        Federal Acquisition Regulation.''.
    (f) Extension.--Subsection (k) of section 2359b of title 
10, United States Code, as redesignated by subsection (b)(3), 
is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2012''.
    (g) Additional Conforming Amendments.--Section 2359b of 
such title is further amended--
            (1) in subsection (c)(7), as redesignated by 
        subsection (b), by striking ``paragraph (4)'' and 
        inserting ``paragraph (5)'';
            (2) in subsection (d)(1), by striking ``subsection 
        (c)(6)'' and inserting ``subsection (c)(7)'';
            (3) in subsection (d)(2), by striking ``subsection 
        (c)(4)'' and inserting ``subsection (c)(5)''; and
            (4) in subsection (e)(1), by striking ``subsection 
        (c)(4)'' and inserting ``subsection (c)(5)''.

SEC. 214. FUTURE COMBAT SYSTEMS MILESTONE REVIEW.

    (a) Milestone Review Required.--Not later than 120 days 
after the preliminary design review of the Future Combat 
Systems program is completed, the Secretary of Defense shall 
carry out a Defense Acquisition Board milestone review of the 
Future Combat Systems program. The milestone review shall 
include an assessment as to each of the following:
            (1) Whether the warfighter's needs are valid and 
        can be best met with the concept of the program.
            (2) Whether the concept of the program can be 
        developed and produced within existing resources.
            (3) Whether the program should--
                    (A) continue as currently structured;
                    (B) continue in restructured form; or
                    (C) be terminated.
    (b) Determinations To Be Made in Assessing Whether Program 
Should Continue.--In making the assessment required by 
subsection (a)(3), the Secretary shall make a determination 
with respect to each of the following:
            (1) Whether each critical technology for the 
        program is at least Technical Readiness Level 6.
            (2) For each system and network component of the 
        program, what the key design and technology risks are, 
        based on System Functional Reviews, Preliminary Design 
        Reviews, and Technical Readiness Levels.
            (3) Whether actual demonstrations, rather than 
        simulations, have shown that the concept of the program 
        will work.
            (4) Whether actual demonstrations, rather than 
        plans, have shown that the software for the program is 
        functional.
            (5) What the cost estimate for the program is.
            (6) What the affordability assessment for the 
        program is, based on that cost estimate.
    (c) Report.--The Secretary shall submit to the 
congressional defense committees a report on the findings and 
conclusions of the milestone review required by subsection (a). 
The report shall include, and display, each of the assessments 
required by subsection (a) and each of the determinations 
required by subsection (b).
    (d) Restriction on Procurement Funds Effective Fiscal 
2009.--
            (1) In general.--For fiscal years beginning with 
        2009, the Secretary may not obligate any funds for 
        procurement for the Future Combat Systems program.
            (2) Exceptions.--Paragraph (1) does not apply with 
        respect to--
                    (A) the obligation of funds for costs 
                attributable to an insertion of new technology 
                (to include spinout systems) into the current 
                force, if the insertion is approved by the 
                Under Secretary of Defense for Acquisition, 
                Technology, and Logistics; or
                    (B) the obligation of funds for the non-
                line-of-sight cannon system.
            (3) Termination.--The requirement of paragraph (1) 
        terminates after the report required by subsection (c) 
        is submitted.

SEC. 215. DEDICATED AMOUNTS FOR IMPLEMENTING OR EVALUATING NAVY 
                    SHIPBUILDING TECHNOLOGY PROPOSALS UNDER DEFENSE 
                    ACQUISITION CHALLENGE PROGRAM.

    (a) Amounts Required.--Of the amounts appropriated pursuant 
to the authorization of appropriations in section 201(4) for 
research, development, test, and evaluation, Defense-wide, 
$4,000,000 may be available to implement or evaluate challenge 
proposals specified in subsection (b).
    (b) Challenge Proposals Covered.--A challenge proposal 
referred to in subsection (a) is a proposal under the Defense 
Acquisition Challenge Program established by section 2359b of 
title 10, United States Code, that relates to technology 
directly contributing to combat systems and open architecture 
design for Navy ship platforms.

SEC. 216. INDEPENDENT ESTIMATE OF COSTS OF THE FUTURE COMBAT SYSTEMS.

    (a) Independent Estimate Required.--
            (1) In general.--The Secretary of Defense shall 
        provide for the preparation of an independent estimate 
        of the anticipated costs of systems development and 
        demonstration with respect to the Future Combat 
        Systems.
            (2) Conduct of estimate.--The estimate required by 
        this subsection shall be prepared by a federally funded 
        research and development center selected by the 
        Secretary for purposes of this subsection.
            (3) Matters To be addressed.--The independent 
        estimate prepared under this subsection shall address 
        costs of research, development, test, and evaluation, 
        and costs of procurement, for--
                    (A) the system development and 
                demonstration phase of the core Future Combat 
                Systems;
                    (B) the Future Combat Systems technologies 
                to be incorporated into the equipment of the 
                current force of the Army (often referred to as 
                ``spinouts'');
                    (C) the installation kits for the 
                incorporation of such technologies into such 
                equipment;
                    (D) the systems treated as complementary 
                systems for the Future Combat Systems;
                    (E) science and technology initiatives that 
                support the Future Combat Systems program; and
                    (F) any pass-through charges anticipated to 
                be assessed by the lead systems integrator of 
                the Future Combat Systems and its major 
                subcontractors.
            (4) Submittal to congress.--Upon completion of the 
        independent estimate required by this subsection, the 
        Secretary shall submit to the congressional defense 
        committees a report on the estimate.
            (5) Deadline for submittal.--The report described 
        in paragraph (4) shall be submitted not later than 
        April 1, 2007.
    (b) Pass-Through Charge Defined.--In this section, the term 
``pass-through charge'' has the meaning given that term in 
section 805(c)(5) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3373).

SEC. 217. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

    (a) Failure To Comply With Funding Objective.--Section 212 
of the National Defense Authorization Act for Fiscal Year 2000 
(10 U.S.C. 2501 note) is amended in subsection (a) by striking 
``especially the Air Force Science and Technology Program,''.
    (b) Extension of Funding Objective.--Such section is 
amended in subsection (b) by striking ``through 2009'' and 
inserting ``through 2012''.
    (c) Actions Following Failure To Comply With Objective.--
Such section is further amended by adding at the end the 
following new subsection:
    ``(c) Actions Following Failure To Comply With Objective.--
If the proposed budget for a fiscal year covered by subsection 
(b) fails to comply with the objective set forth in that 
subsection, the Secretary of Defense shall submit to the 
congressional defense committees, at the same time that the 
Department of Defense budget justification materials for the 
next fiscal year are submitted to Congress--
            ``(1) a detailed, prioritized list, including 
        estimates of required funding, of highly-rated science 
        and technology projects received by the Department 
        through competitive solicitations and broad agency 
        announcements which--
                    ``(A) are not funded solely due to lack of 
                resources, but
                    ``(B) represent science and technology 
                opportunities that support the research and 
                development programs and goals of the military 
                departments and the Defense Agencies; and
            ``(2) a report, in both classified and unclassified 
        form, containing an analysis and evaluation of 
        international research and technology capabilities, 
        including an identification of any technology areas in 
        which the United States may not have global technical 
        leadership within the next 10 years, in each of the 
        technology areas described in the following plans:
                    ``(A) The most current Joint Warfighting 
                Science and Technology Plan required by section 
                270 of the National Defense Authorization Act 
                for Fiscal Year 1997 (10 U.S.C. 2501 note).
                    ``(B) The Defense Technology Area Plan of 
                the Department of Defense.
                    ``(C) The Basic Research Plan of the 
                Department of Defense.''.

SEC. 218. HYPERSONICS DEVELOPMENT.

    (a) Establishment of Joint Technology Office on 
Hypersonics.--The Secretary of Defense shall establish within 
the Office of the Secretary of Defense a joint technology 
office on hypersonics. The office shall carry out the program 
required under subsection (b), and shall have such other 
responsibilities relating to hypersonics as the Secretary shall 
specify.
    (b) Program on Hypersonics.--The joint technology office 
established under subsection (a) shall carry out a program for 
the development of hypersonics for defense purposes.
    (c) Responsibilities.--In carrying out the program required 
by subsection (b), the joint technology office established 
under subsection (a) shall do the following:
            (1) Coordinate and integrate current and future 
        research, development, test, and evaluation programs 
        and system demonstration programs of the Department of 
        Defense on hypersonics.
            (2) Undertake appropriate actions to ensure--
                    (A) close and continuous integration of the 
                programs on hypersonics of the military 
                departments with the programs on hypersonics of 
                the Defense Agencies;
                    (B) coordination of the programs referred 
                to in subparagraph (A) with the programs on 
                hypersonics of the National Aeronautics and 
                Space Administration; and
                    (C) that developmental testing resources 
                are adequate and facilities are made available 
                in a timely manner to support hypersonics 
                research, demonstration programs, and system 
                development.
            (3) Approve demonstration programs on hypersonic 
        systems.
            (4) Ensure that any demonstration program on 
        hypersonic systems that is carried out in any year 
        after its approval under paragraph (3) is carried out 
        only if certified under subsection (e) as being 
        consistent with the roadmap under subsection (d).
    (d) Roadmap.--
            (1) Roadmap required.--The joint technology office 
        established under subsection (a) shall develop, and 
        every two years revise, a roadmap for the hypersonics 
        programs of the Department of Defense.
            (2) Coordination.--The roadmap shall be developed 
        and revised under paragraph (1) in coordination with 
        the Joint Staff and in consultation with the National 
        Aeronautics and Space Administration.
            (3) Elements.--The roadmap shall include the 
        following matters:
                    (A) Anticipated or potential mission 
                requirements for hypersonics.
                    (B) Short-term, mid-term, and long-term 
                goals for the Department of Defense on 
                hypersonics, which shall be consistent with the 
                missions and anticipated requirements of the 
                Department over the applicable period.
                    (C) A schedule for meeting such goals, 
                including--
                            (i) the activities and funding 
                        anticipated to be required for meeting 
                        such goals; and
                            (ii) the activities of the National 
                        Aeronautics and Space Administration to 
                        be leveraged by the Department to meet 
                        such goals.
                    (D) The test and evaluation facilities 
                required to support the activities identified 
                in subparagraph (C), along with the schedule 
                and funding required to upgrade those 
                facilities, as necessary.
                    (E) Acquisition transition plans for 
                hypersonics.
            (4) Submittal to congress.--The Secretary shall 
        submit to the congressional defense committees--
                    (A) at the same time as the submittal to 
                Congress of the budget for fiscal year 2008 (as 
                submitted pursuant to section 1105 of title 31, 
                United States Code), the roadmap developed 
                under paragraph (1); and
                    (B) at the same time as the submittal to 
                Congress of the budget for each even-numbered 
                fiscal year after 2008, the roadmap revised 
                under paragraph (1).
    (e) Annual Review and Certification of Funding.--
            (1) Annual review.--The joint technology office 
        established under subsection (a) shall conduct on an 
        annual basis a review of--
                    (A) the funding available for research, 
                development, test, and evaluation and 
                demonstration programs within the Department of 
                Defense for hypersonics, in order to determine 
                whether or not such funding is consistent with 
                the roadmap developed under subsection (d); and
                    (B) the hypersonics demonstration programs 
                of the Department, in order to determine 
                whether or not such programs avoid duplication 
                of effort and support the goals of the 
                Department in a manner consistent with the 
                roadmap developed under subsection (d).
            (2) Certification.--The joint technology office 
        shall, as a result of each review under paragraph (1), 
        certify to the Secretary whether or not the funding and 
        programs subject to such review are consistent with the 
        roadmap developed under subsection (d).
            (3) Termination.--The requirements of this 
        subsection shall terminate after the submittal to 
        Congress of the budget for fiscal year 2012 pursuant to 
        section 1105 of title 31, United States Code.
    (f) Reports to Congress.--If, as a result of a review under 
subsection (e), funding or a program on hypersonics is 
certified under that subsection not to be consistent with the 
roadmap developed under subsection (d), the Secretary shall 
submit to the congressional defense committees, at the same 
time as the submittal to Congress of the budget (as submitted 
pursuant to section 1105 of title 31, United States Code), a 
report on such funding or program, as the case may be, 
describing how such funding or program is not consistent with 
the roadmap, together with a statement of the actions to be 
taken by the Department.

SEC. 219. REPORT ON PROGRAM FOR REPLACEMENT OF NUCLEAR WARHEADS ON 
                    CERTAIN TRIDENT SEA-LAUNCHED BALLISTIC MISSILES 
                    WITH CONVENTIONAL WARHEADS.

    (a) Report Required.--Not later than February 1, 2007, the 
Secretary of Defense shall submit to the congressional defense 
committees a report setting forth a proposal to replace nuclear 
warheads on 24 Trident D-5 sea-launched ballistic missiles with 
conventional kinetic warheads for deployment on submarines that 
carry Trident sea-launched ballistic missiles. The report shall 
be prepared in consultation with the Secretary of State.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) A description of the types of scenarios, types 
        of targets, and circumstances in which a conventional 
        sea-launched ballistic missile might be used.
            (2) A discussion of the weapon systems or weapons, 
        whether current or planned, that could be used as an 
        alternative for each of the scenarios, target types, 
        and circumstances set forth under paragraph (1), and a 
        statement of any reason why each such weapon system or 
        weapon is not a suitable alternative to a conventional 
        sea-launched ballistic missile.
            (3) A description of the command and control 
        arrangements for conventional sea-launched ballistic 
        missiles, including launch authority and the use of 
        Permissive Action Links (PALs).
            (4) An assessment of the capabilities of other 
        countries to detect and track the launch of a 
        conventional or nuclear sea-launched ballistic missile.
            (5) An assessment of the capabilities of other 
        countries to discriminate between the launch of a 
        nuclear sea-launched ballistic missile and a 
        conventional sea-launched ballistic missile, other than 
        in a testing scenario.
            (6) An assessment of the notification and other 
        protocols that would have to be in place before using 
        any conventional sea-launched ballistic missile and a 
        plan for entering into such protocols.
            (7) An assessment of the adequacy of the 
        intelligence that would be needed to support an attack 
        involving conventional sea-launched ballistic missiles.
            (8) A description of the total program cost, 
        including the procurement costs of additional D-5 
        missiles, of the conventional Trident sea-launched 
        ballistic missile program, by fiscal year.
            (9) An analysis and assessment of the implications 
        for ballistic missile proliferation if the United 
        States decides to go forward with the conventional 
        Trident sea-launched ballistic missile program or any 
        other conventional long-range ballistic missile 
        program.
            (10) An analysis and assessment of the implications 
        for the United States missile defense system if other 
        countries use conventional long-range ballistic 
        missiles.
            (11) An analysis of any problems created by the 
        ambiguity that results from the use of the same 
        ballistic missile for both conventional and nuclear 
        warheads.
            (12) An analysis and assessment of the methods that 
        other countries might use to resolve the ambiguities 
        associated with a nuclear or conventional sea-launched 
        ballistic missile.
            (13) An analysis, by the Secretary of State, of the 
        international, treaty, and other concerns that would be 
        associated with the use of a conventional sea-launched 
        ballistic missile and recommendations for measures to 
        mitigate or eliminate such concerns.
            (14) A joint statement by the Secretary of Defense 
        and the Secretary of State on how to ensure that the 
        use of a conventional sea-launched ballistic missile 
        will not result in an intentional, inadvertent, 
        mistaken, or accidental reciprocal or responsive launch 
        of a nuclear strike by any other country.

                  Subtitle C--Missile Defense Programs

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized 
to be appropriated for fiscal years 2007 and 2008 for research, 
development, test, and evaluation for the Missile Defense 
Agency may be used for the development and fielding of 
ballistic missile defense capabilities.

SEC. 222. LIMITATION ON USE OF FUNDS FOR SPACE-BASED INTERCEPTOR.

    (a) Limitation.--No funds appropriated or otherwise made 
available to the Department of Defense may be obligated or 
expended for the testing or deployment of a space-based 
interceptor until 90 days after the date on which a report 
described in subsection (c) is submitted.
    (b) Space-Based Interceptor Defined.--For purposes of this 
section, the term ``space-based interceptor'' means a kinetic 
or directed energy weapon that is stationed on a satellite or 
orbiting platform and that is intended to destroy another 
satellite in orbit or a ballistic missile launched from earth.
    (c) Report.--A report described in this subsection is a 
report prepared by the Director of the Missile Defense Agency 
and submitted to the congressional defense committees 
containing the following:
            (1) A description of the essential components of a 
        proposed space-based interceptor system, including a 
        description of how the system proposed would enhance or 
        complement other missile defense systems.
            (2) An estimate of the acquisition and life-cycle 
        cost of the system described under paragraph (1), 
        including lift cost and periodic replacement cost due 
        to depreciation and attrition.
            (3) An analysis of the vulnerability of such a 
        system to counter-measures, including direct ascent and 
        co-orbital interceptors, and an analysis of the 
        functionality of such a system in the aftermath of a 
        nuclear detonation in space.
            (4) A projection of the foreign policy and national 
        security implications of a space-based interceptor 
        program, including the probable response of United 
        States adversaries and United States allies.

SEC. 223. POLICY OF THE UNITED STATES ON PRIORITIES IN THE DEVELOPMENT, 
                    TESTING, AND FIELDING OF MISSILE DEFENSE 
                    CAPABILITIES.

    (a) Findings.--Congress makes the following findings:
            (1) In response to the threat posed by ballistic 
        missiles, President George W. Bush in December 2002 
        directed the Secretary of Defense to proceed with the 
        fielding of an initial set of missile defense 
        capabilities in 2004 and 2005.
            (2) According to assessments by the intelligence 
        community of the United States, North Korea tested in 
        2005 a new solid propellant short-range ballistic 
        missile, conducted a launch of a Taepodong-2 ballistic 
        missile/space launch vehicle in 2006, and is likely 
        developing intermediate-range and intercontinental 
        ballistic missile capabilities that could someday reach 
        as far as the United States with a nuclear payload.
            (3) According to assessments by the intelligence 
        community of the United States, Iran continued in 2005 
        to test its medium-range ballistic missile, and the 
        danger that Iran will acquire a nuclear weapon and 
        integrate it with a ballistic missile Iran already 
        possesses is a reason for immediate concern.
    (b) Policy.--It is the policy of the United States that the 
Department of Defense accord a priority within the missile 
defense program to the development, testing, fielding, and 
improvement of effective near-term missile defense 
capabilities, including the ground-based midcourse defense 
system, the Aegis ballistic missile defense system, the Patriot 
PAC-3 system, the Terminal High Altitude Area Defense system, 
and the sensors necessary to support such systems.

SEC. 224. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
                    BALLISTIC MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act 
for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended--
            (1) in paragraph (1), by striking ``through 2007'' 
        and inserting ``through 2008''; and
            (2) in paragraph (2), by striking ``through 2008'' 
        and inserting ``through 2009''.

SEC. 225. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE OPERATIONAL 
                    CAPABILITY OF THE BALLISTIC MISSILE DEFENSE SYSTEM.

    Section 234(a) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3174; 10 
U.S.C. 2431 note) is amended by adding at the end the following 
new paragraph:
            ``(3) Submittal to congress.--Each plan prepared 
        under this subsection and approved by the Director of 
        Operational Test and Evaluation shall be submitted to 
        the congressional defense committees not later than 30 
        days after the date of the approval of such plan by the 
        Director.''.

SEC. 226. ANNUAL REPORTS ON TRANSITION OF BALLISTIC MISSILE DEFENSE 
                    PROGRAMS TO THE MILITARY DEPARTMENTS.

    (a) Report Required.--Not later than March 1, 2007, and 
annually thereafter through 2013, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall submit 
to the congressional defense committees a report on the plans 
of the Department of Defense for the transition of missile 
defense programs from the Missile Defense Agency to the 
military departments.
    (b) Scope of Reports.--Each report required by subsection 
(a) shall cover the period covered by the future-years defense 
program that is submitted under section 221 of title 10, United 
States Code, in the year in which such report is submitted.
    (c) Elements.--Each report required by subsection (a) shall 
include the following:
            (1) An identification of--
                    (A) the missile defense programs planned to 
                be transitioned from the Missile Defense Agency 
                to the military departments; and
                    (B) the missile defense programs, if any, 
                not planned for transition to the military 
                departments.
            (2) The schedule for transition of each missile 
        defense program planned to be transitioned to a 
        military department, and an explanation of such 
        schedule.
            (3) A description of--
                    (A) the status of the plans of the Missile 
                Defense Agency and the military departments for 
                the transition of missile defense programs from 
                that agency to the military departments; and
                    (B) the status of any agreement between the 
                Missile Defense Agency and one or more of the 
                military departments on the transition of any 
                such program from that agency to the military 
                departments, including any agreement on the 
                operational test criteria that must be achieved 
                before such transition.
            (4) An identification of the entity of the 
        Department of Defense (whether the Missile Defense 
        Agency, a military department, or both) that will be 
        responsible for funding each missile defense program to 
        be transitioned to a military department, and at what 
        date.
            (5) A description of the type of funds that will be 
        used (whether funds for research, development, test, 
        and evaluation, procurement, military construction, or 
        operation and maintenance) for each missile defense 
        program to be transitioned to a military department.
            (6) An explanation of the number of systems planned 
        for procurement for each missile defense program to be 
        transitioned to a military department, and the schedule 
        for procurement of each such system.

                       Subtitle D--Other Matters

SEC. 231. POLICIES AND PRACTICES ON TEST AND EVALUATION TO ADDRESS 
                    EMERGING ACQUISITION APPROACHES.

    (a) Revision to Report Requirement.--Section 2399(b) of 
title 10, United States Code, is amended--
            (1) by amending paragraph (2) to read as follows:
    ``(2) The Director shall analyze the results of the 
operational test and evaluation conducted for each major 
defense acquisition program. At the conclusion of such testing, 
the Director shall prepare a report stating--
            ``(A) the opinion of the Director as to--
                    ``(i) whether the test and evaluation 
                performed were adequate; and
                    ``(ii) whether the results of such test and 
                evaluation confirm that the items or components 
                actually tested are effective and suitable for 
                combat; and
            ``(B) additional information on the operational 
        capabilities of the items or components that the 
        Director considers appropriate based on the testing 
        conducted.'';
            (2) by redesignating paragraph (5) as paragraph 
        (6); and
            (3) by inserting after paragraph (4) the following:
    ``(5) If, before a final decision described in paragraph 
(4) is made for a major defense acquisition program, a decision 
is made within the Department of Defense to proceed to 
operational use of that program or to make procurement funds 
available for that program, the Director shall submit to the 
Secretary of Defense and the congressional defense committees 
the report with respect to that program under paragraph (2) as 
soon as practicable after the decision described in this 
paragraph is made.''.
    (b) Review and Revision of Policies and Practices.--
            (1) Review.--During fiscal year 2007, the Under 
        Secretary of Defense for Acquisition, Technology, and 
        Logistics and the Director of Operational Test and 
        Evaluation shall review Department of Defense policies 
        and practices on test and evaluation in order to--
                    (A) reaffirm the test and evaluation 
                principles that should guide traditional 
                acquisition programs; and
                    (B) determine how best to apply appropriate 
                test and evaluation principles to emerging 
                acquisition approaches.
            (2) Revised guidance.--If the Under Secretary 
        determines as a result of the review under paragraph 
        (1) that a revision of the policies and practices 
        referred to in that paragraph is necessary, the Under 
        Secretary and the Director shall jointly issue new or 
        revised guidance for the Department of Defense on test 
        and evaluation to address that determination.
    (c) Issues To Be Addressed.--In carrying out subsection 
(b), the Under Secretary shall address policies and practices 
on test and evaluation in order to--
            (1) ensure the performance of test and evaluation 
        activities with regard to--
                    (A) items that are acquired pursuant to the 
                authority for rapid acquisition and deployment 
                of items in section 806 of the Bob Stump 
                National Defense Authorization Act for Fiscal 
                Year 2003 (10 U.S.C. 2302 note);
                    (B) programs that are conducted pursuant to 
                the authority for spiral development in section 
                803 of the Bob Stump National Defense 
                Authorization Act for Fiscal Year 2003 (Public 
                Law 107-314; 116 Stat. 2603; 10 U.S.C. 2430 
                note), or other authority for the conduct of 
                incremental acquisition programs;
                    (C) systems that are acquired pursuant to 
                other emerging acquisition approaches, as 
                approved by the Under Secretary; and
                    (D) equipment that is not subject to the 
                operational test and evaluation requirements in 
                sections 2366 and 2399 of title 10, United 
                States Code, but that may require limited 
                operational test and evaluation for the purpose 
                of ensuring the safety and survivability of 
                such equipment and personnel using such 
                equipment; and
            (2) ensure the appropriate use, if any, of 
        operational test and evaluation resources to assess 
        technology readiness levels for the purpose of section 
        2366a of title 10, United States Code, and other 
        applicable technology readiness requirements.
    (d) Inclusion of Testing Needs in Strategic Plan.--The 
Director, Test Resource Management Center, shall ensure that 
the strategic plan for Department of Defense test and 
evaluation resources developed pursuant to section 196 of title 
10, United States Code--
            (1) reflects any testing needs of the Department of 
        Defense that are identified as a result of activities 
        under subsection (b); and
            (2) includes an assessment of the test and 
        evaluation facilities, resources, and budgets that will 
        be required to meet such needs.
    (e) Report to Congress.--Not later than nine months after 
the date of the enactment of this Act, the Under Secretary and 
the Director of Operational Test and Evaluation shall submit to 
the congressional defense committees a report on the review 
conducted under paragraph (1) of subsection (b), including any 
new or revised guidance issued pursuant to paragraph (2) of 
that subsection.
    (f) Clarification of Duties With Respect to Force 
Protection Equipment.--Section 139(b) of title 10, United 
States Code, is amended--
            (1) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) provide guidance to and consult with the 
        officials described in paragraph (2) with respect to 
        operational test and evaluation or survivability 
        testing (or both) within the Department of Defense of 
        force protection equipment (including non-lethal 
        weapons), which, in such a case--
                    ``(A) shall be guidance and consultation 
                for the purposes of--
                            ``(i) expediting suitable 
                        operational test and evaluation;
                            ``(ii) providing objective subject-
                        matter expertise;
                            ``(iii) encouraging data sharing 
                        between Department of Defense 
                        components; and
                            ``(iv) where appropriate, 
                        facilitating the use of common test 
                        standards; and
                    ``(B) does not authorize the Director--
                            ``(i) to approve test and 
                        evaluation plans for such equipment; or
                            ``(ii) to in any manner delay 
                        deployment of such equipment;''.

SEC. 232. EXTENSION OF REQUIREMENT FOR GLOBAL RESEARCH WATCH PROGRAM.

    Section 2365(f) of title 10, United States Code, is amended 
by striking ``September 30, 2006'' and inserting ``September 
30, 2011''.

SEC. 233. SENSE OF CONGRESS ON TECHNOLOGY SHARING OF JOINT STRIKE 
                    FIGHTER TECHNOLOGY.

    It is the sense of Congress that the Secretary of Defense 
should share technology with regard to the Joint Strike Fighter 
between the United States Government and the Government of the 
United Kingdom consistent with the national security interests 
of both nations.

SEC. 234. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS FOR CERTAIN 
                    BATTLEFIELD THREATS.

    (a) Independent Assessment.--The Secretary of Defense shall 
enter into a contract with an appropriate entity independent of 
the United States Government to conduct an assessment of 
various foreign and domestic technological approaches to 
vehicle-based active protection systems for defense against 
both chemical energy and kinetic energy top-attack and direct 
fire threats, including anti-tank missiles and rocket propelled 
grenades, mortars, and other similar battlefield threats.
    (b) Report.--
            (1) Report required.--The contract required by 
        subsection (a) shall require the entity entering into 
        such contract to submit to the Secretary of Defense, 
        and to the congressional defense committees, not later 
        than 180 days after the date of the enactment of this 
        Act, a report on the assessment required by that 
        subsection.
            (2) Elements.--The report required under paragraph 
        (1) shall include--
                    (A) a detailed comparative analysis and 
                assessment of the technical approaches covered 
                by the assessment under subsection (a), 
                including the feasibility, military utility, 
                cost, and potential short-term and long-term 
                development and deployment schedule of such 
                approaches; and
                    (B) any other elements specified by the 
                Secretary in the contract under subsection (a).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Revision of requirement for unexploded ordnance program 
          manager.
Sec. 312. Funding of cooperative agreements under environmental 
          restoration program.
Sec. 313. Response plan for remediation of unexploded ordnance, 
          discarded military munitions, and munitions constituents.
Sec. 314. Research on effects of ocean disposal of munitions.
Sec. 315. Reimbursement of Environmental Protection Agency for certain 
          costs in connection with Moses Lake Wellfield Superfund Site, 
          Moses Lake, Washington.
Sec. 316. Transfer of Government-furnished uranium stored at Sequoyah 
          Fuels Corporation, Gore, Oklahoma.
Sec. 317. Extension of authority to grant exemptions to certain 
          requirements.
Sec. 318. National Academy of Sciences study on human exposure to 
          contaminated drinking water at Camp Lejeune, North Carolina.

     Subtitle C--Program Requirements, Restrictions, and Limitations

Sec. 321. Limitation on financial management improvement and audit 
          initiatives within the Department of Defense.
Sec. 322. Funds for exhibits for the national museums of the Armed 
          Forces.
Sec. 323. Prioritization of funds for equipment readiness and strategic 
          capability.
Sec. 324. Limitation on deployment of Marine Corps Total Force System to 
          Navy.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Permanent exclusion of certain contract expenditures from 
          percentage limitation on the performance of depot-level 
          maintenance.
Sec. 332. Minimum capital investment for certain depots.
Sec. 333. Extension of temporary authority for contractor performance of 
          security guard functions.

                           Subtitle E--Reports

Sec. 341. Report on Navy Fleet Response Plan.
Sec. 342. Report on Navy surface ship rotational crew programs.
Sec. 343. Report on Army live-fire ranges in Hawaii.
Sec. 344. Comptroller General report on joint standards and protocols 
          for access control systems at Department of Defense 
          installations.
Sec. 345. Comptroller General report on readiness of Army and Marine 
          Corps ground forces.
Sec. 346. Report on Air Force safety requirements for Air Force flight 
          training operations at Pueblo Memorial Airport, Colorado.
Sec. 347. Annual report on Personnel Security Investigations for 
          Industry and National Industrial Security Program.
Sec. 348. Five-year extension of annual report on training range 
          sustainment plan and training range inventory.
Sec. 349. Reports on withdrawal or diversion of equipment from reserve 
          units for support of reserve units being mobilized and other 
          units.

                        Subtitle F--Other Matters

Sec. 351. Department of Defense strategic policy on prepositioning of 
          materiel and equipment.
Sec. 352. Authority to make Department of Defense horses available for 
          adoption.
Sec. 353. Sale and use of proceeds of recyclable munitions materials.
Sec. 354. Recovery and transfer to Corporation for the Promotion of 
          Rifle Practice and Firearms Safety of certain firearms, 
          ammunition, and parts granted to foreign countries.
Sec. 355. Extension of Department of Defense telecommunications benefit 
          program.
Sec. 356. Extension of availability of funds for commemoration of 
          success of the Armed Forces in Operation Enduring Freedom and 
          Operation Iraqi Freedom.
Sec. 357. Capital security cost sharing.
Sec. 358. Utilization of fuel cells as back-up power systems in 
          Department of Defense operations.
Sec. 359. Improving Department of Defense support for civil authorities.
Sec. 360. Energy efficiency in weapons platforms.
Sec. 361. Prioritization of funds within Navy mission operations, ship 
          maintenance, combat support forces, and weapons system 
          support.
Sec. 362. Provision of adequate storage space to secure personal 
          property outside of assigned military family housing unit.
Sec. 363. Expansion of payment of replacement value of personal property 
          damaged during transport at Government expense.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $24,416,352,000.
            (2) For the Navy, $31,157,639,000.
            (3) For the Marine Corps, $3,863,462,000.
            (4) For the Air Force, $31,081,257,000.
            (5) For Defense-wide activities, $20,093,876,000.
            (6) For the Army Reserve, $2,260,802,000.
            (7) For the Naval Reserve, $1,275,764,000.
            (8) For the Marine Corps Reserve, $211,311,000.
            (9) For the Air Force Reserve, $2,698,400,000.
            (10) For the Army National Guard, $4,776,421,000.
            (11) For the Air National Guard, $5,292,517,000.
            (12) For the United States Court of Appeals for the 
        Armed Forces, $11,721,000.
            (13) For Environmental Restoration, Army, 
        $413,794,000.
            (14) For Environmental Restoration, Navy, 
        $304,409,000.
            (15) For Environmental Restoration, Air Force, 
        $423,871,000.
            (16) For Environmental Restoration, Defense-wide, 
        $18,431,000.
            (17) For Environmental Restoration, Formerly Used 
        Defense Sites, $282,790,000.
            (18) For Former Soviet Union Threat Reduction 
        programs, $372,128,000.
            (19) For Overseas Humanitarian Disaster and Civic 
        Aid, $63,204,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 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, 
        $161,998,000.
            (2) For the National Defense Sealift Fund, 
        $1,071,932,000.
            (3) For the Defense Working Capital Fund, Defense 
        Commissary, $1,184,000,000.
            (4) For the Pentagon Reservation Maintenance 
        Revolving Fund, $18,500,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to 
be appropriated for the Department of Defense for fiscal year 
2007 for expenses, not otherwise provided for, for the Defense 
Health Program, $21,426,621,000, of which--
            (1) $20,894,663,000 is for Operation and 
        Maintenance;
            (2) $135,603,000 is for Research, Development, 
        Test, and Evaluation; and
            (3) $396,355,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--
(1) Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2007 for expenses, not 
otherwise provided for, for Chemical Agents and Munitions 
Destruction, Defense, $1,277,304,000, of which--
                    (A) $1,046,290,000 is for Operation and 
                Maintenance; and
                    (B) $231,014,000 is for Research, 
                Development, Test, and Evaluation.
    (2) Amounts authorized to be appropriated under paragraph 
(1) are authorized for--
            (A) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act for Fiscal Year 
        1986 (50 U.S.C. 1521); and
            (B) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-
Wide.--Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2006 for expenses, not 
otherwise provided for, for Drug Interdiction and Counter-Drug 
Activities, Defense-wide, $926,890,000.
    (d) Defense Inspector General.--Funds are hereby authorized 
to be appropriated for the Department of Defense for fiscal 
year 2006 for expenses, not otherwise provided for, for the 
Office of the Inspector General of the Department of Defense, 
$216,297,000, of which--
            (1) $214,897,000 is for Operation and Maintenance; 
        and
            (2) $1,400,000 is for Procurement.

                  Subtitle B--Environmental Provisions

SEC. 311. REVISION OF REQUIREMENT FOR UNEXPLODED ORDNANCE PROGRAM 
                    MANAGER.

    Section 2701(k) of title 10, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``establish'' and inserting 
                ``designate''; and
                    (B) by inserting ``research,'' after 
                ``characterization,'';
            (2) by striking paragraph (2) and redesignating 
        paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (1) the following 
        new paragraphs:
    ``(2) The position of program manager shall be filled by--
            ``(A) an employee in a position that is equivalent 
        to pay grade O-6 or above; or
            ``(B) a member of the armed forces who is serving 
        in the grade of colonel or, in the case of the Navy, 
        captain, or in a higher grade.
    ``(3) The program manager shall report to the Deputy Under 
Secretary of Defense for Installations and Environment.''.

SEC. 312. FUNDING OF COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL 
                    RESTORATION PROGRAM.

    Section 2701(d)(2) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``This 
two-year limitation does not apply to an agreement funded using 
amounts in the Department of Defense Base Closure Account 1990 
or the Department of Defense Base Closure Account 2005 
established under sections 2906 and 2906A 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).''.

SEC. 313. RESPONSE PLAN FOR REMEDIATION OF UNEXPLODED ORDNANCE, 
                    DISCARDED MILITARY MUNITIONS, AND MUNITIONS 
                    CONSTITUENTS.

    (a) Performance Goals for Remediation.--The Secretary of 
Defense shall set the following remediation goals with regard 
to unexploded ordnance, discarded military munitions, and 
munitions constituents:
            (1) To complete, by not later than September 30, 
        2007, preliminary assessments of unexploded ordnance, 
        discarded military munitions, and munitions 
        constituents at all active installations and formerly 
        used defense sites (other than operational ranges).
            (2) To complete, by not later than September 30, 
        2010, site inspections of unexploded ordnance, 
        discarded military munitions, and munitions 
        constituents at all active installations and formerly 
        used defense sites (other than operational ranges).
            (3) To achieve, by not later than September 30, 
        2009, a remedy in place or response complete for 
        unexploded ordnance, discarded military munitions, and 
        munitions constituents at all military installations 
        closed or realigned as part of a round of defense base 
        closure and realignment occurring prior to the 2005 
        round.
            (4) To achieve, by a date certain established by 
        the Secretary of Defense, a remedy in place or response 
        complete for unexploded ordnance, discarded military 
        munitions, and munitions constituents at all active 
        installations and formerly used defense sites (other 
        than operational ranges) and all military installations 
        realigned or closed under the 2005 round of defense 
        base closure and realignment.
    (b) Response Plan Required.--
            (1) In general.--Not later than March 1, 2007, the 
        Secretary of Defense shall submit to the congressional 
        defense committees a comprehensive plan for addressing 
        the remediation of unexploded ordnance, discarded 
        military munitions, and munitions constituents at 
        current and former defense sites (other than 
        operational ranges).
            (2) Content.--The plan required by paragraph (1) 
        shall include--
                    (A) a schedule, including interim goals, 
                for achieving the goals described in paragraphs 
                (1) through (3) of subsection (a), based upon 
                the Munitions Response Site Prioritization 
                Protocol established by the Department of 
                Defense;
                    (B) such interim goals as the Secretary 
                determines feasible for efficiently achieving 
                the goal required under paragraph (4) of such 
                subsection; and
                    (C) an estimate of the funding required to 
                achieve the goals established pursuant to such 
                subsection and the interim goals established 
                pursuant to subparagraphs (A) and (B).
            (3) Updates.--Not later than March 15 of 2008, 
        2009, and 2010, the Secretary shall submit to the 
        congressional defense committees an update of the plan 
        required under paragraph (1). The Secretary may include 
        the update in the report on environmental restoration 
        activities that is submitted to Congress under section 
        2706(a) of title 10, United States Code, in the year in 
        which that update is required and may include in the 
        update any adjustment to the remediation goals 
        established under subsection (a) that the Secretary 
        determines necessary to respond to unforeseen 
        circumstances.
    (c) Report on Reuse Standards and Principles.--Not later 
than March 1, 2007, the Secretary of Defense shall submit to 
the congressional defense committees a report on the status of 
the efforts of the Department of Defense to achieve agreement 
with relevant regulatory agencies on appropriate reuse 
standards or principles, including--
            (1) a description of any standards or principles 
        that have been agreed upon; and
            (2) a discussion of any issues that remain in 
        disagreement, including the impact that any such 
        disagreement is likely to have on the ability of the 
        Department of Defense to carry out the response plan 
        required by subsection (b).
    (d) Definitions.--In this section:
            (1) The terms ``unexploded ordnance'' and 
        ``operational range'' have the meanings given such 
        terms in section 101(e) of title 10, United States 
        Code.
            (2) The terms ``discarded military munitions'', 
        ``munitions constituents'', and ``defense site'' have 
        the meanings given such terms in section 2710(e) of 
        such title.
    (e) Conforming Repeal.--Section 313 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1051; 10 U.S.C. 2706 note) is repealed.

SEC. 314. RESEARCH ON EFFECTS OF OCEAN DISPOSAL OF MUNITIONS.

    (a) Identification of Disposal Sites.--
            (1) Historical review.--The Secretary of Defense 
        shall conduct a historical review of available records 
        to determine the number, size, and probable locations 
        of sites where the Armed Forces disposed of military 
        munitions in coastal waters. The historical review 
        shall, to the extent possible, identify the types of 
        munitions at individual sites.
            (2) Cooperation.--The Secretary shall request the 
        assistance of the Coast Guard, the National Oceanic and 
        Atmospheric Administration, and other relevant Federal 
        agencies in conducting the review required by this 
        subsection.
            (3) Interim reports.--The Secretary shall 
        periodically, but no less often than annually, release 
        any new information obtained during the historical 
        review conducted under paragraph (1). The Secretary may 
        withhold from public release the exact nature and 
        locations of munitions the potential unauthorized 
        retrieval of which could pose a significant threat to 
        the national defense or public safety.
            (4) Inclusion of information in annual report on 
        environmental restoration activities.--The Secretary 
        shall include the information obtained pursuant to the 
        review conducted under paragraph (1) in the annual 
        report on environmental restoration activities 
        submitted to Congress under section 2706 of title 10, 
        United States Code.
            (5) Final report.--The Secretary shall complete the 
        historical review required under paragraph (1) and 
        submit a final report on the findings of such review in 
        the annual report on environmental restoration 
        activities submitted to Congress for fiscal year 2009.
    (b) Identification of Navigational and Safety Hazards.--
            (1) Identification of hazards.--The Secretary of 
        Defense shall provide available information to the 
        Secretary of Commerce to assist the National Oceanic 
        and Atmospheric Administration in preparing nautical 
        charts and other navigational materials for coastal 
        waters that identify known or potential hazards posed 
        by disposed military munitions to private activities, 
        including commercial shipping and fishing operations.
            (2) Continuation of information activities.--The 
        Secretary of Defense shall continue activities to 
        inform potentially affected users of the ocean 
        environment, particularly fishing operations, of the 
        possible hazards from contact with disposed military 
        munitions and the proper methods to mitigate such 
        hazards.
    (c) Research.--
            (1) In general.--The Secretary of Defense shall 
        continue to conduct research on the effects on the 
        ocean environment and those who use it of military 
        munitions disposed of in coastal waters.
            (2) Scope.--Research under paragraph (1) shall 
        include--
                    (A) the sampling and analysis of ocean 
                waters and sea beds at or adjacent to military 
                munitions disposal sites selected pursuant to 
                paragraph (3) to determine whether the disposed 
                military munitions have caused or are causing 
                contamination of such waters or sea beds;
                    (B) investigation into the long-term 
                effects of seawater exposure on disposed 
                military munitions, particularly effects on 
                chemical munitions;
                    (C) investigation into the impacts any such 
                contamination may have on the ocean environment 
                and those who use it, including public health 
                risks;
                    (D) investigation into the feasibility of 
                removing or otherwise remediating the military 
                munitions; and
                    (E) the development of effective safety 
                measures for dealing with such military 
                munitions.
            (3) Research criteria.--In conducting the research 
        required by this subsection, the Secretary shall ensure 
        that the sampling, analysis, and investigations are 
        conducted at representative sites, taking into account 
        factors such as depth, water temperature, nature of the 
        military munitions present, and relative proximity to 
        onshore populations. In conducting such research, the 
        Secretary shall select at least two representative 
        sites each in the areas of the Atlantic coast, the 
        Pacific coast (including Alaska), and the Hawaiian 
        Islands.
            (4) Authority to make grants and enter into 
        cooperative agreements.--In conducting research under 
        this subsection, the Secretary may make grants to, and 
        enter into cooperative agreements with, qualified 
        research entities.
    (d) Monitoring.--If the historical review required by 
subsection (a) or the research required by subsection (c) 
indicates that contamination is being released into the ocean 
waters from disposed military munitions at a particular site or 
that the site poses a significant public health or safety risk, 
the Secretary of Defense shall institute appropriate monitoring 
mechanisms at that site and report to the congressional defense 
committees on any additional measures that may be necessary to 
address the release or risk, as applicable.
    (e) Definitions.--In this section:
            (1) The term ``coastal waters'' means that part of 
        the ocean extending from the coast line of the United 
        States to the outer boundary of the outer Continental 
        Shelf.
            (2) The term ``coast line'' has the meaning given 
        that term in section 2(c) of the Submerged Lands Act 
        (43 U.S.C. 1301(c)).
            (3) The term ``military munitions'' has the meaning 
        given that term in section 101(e) of title 10, United 
        States Code.
            (4) The term ``outer Continental Shelf'' has the 
        meaning given that term in section 2(a) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1331(a)).

SEC. 315. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
                    COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD 
                    SUPERFUND SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse.--
            (1) Transfer amount.--Using funds described in 
        subsection (b), the Secretary of Defense may transfer 
        not more than $111,114.03 to the Moses Lake Wellfield 
        Superfund Site 10-6J Special Account.
            (2) Purpose of reimbursement.--The payment under 
        paragraph (1) is to reimburse the Environmental 
        Protection Agency for its costs incurred in overseeing 
        a remedial investigation/feasibility study performed by 
        the Department of the Army under the Defense 
        Environmental Restoration Program at the former Larson 
        Air Force Base, Moses Lake Superfund Site, Moses Lake, 
        Washington.
            (3) Interagency agreement.--The reimbursement 
        described in paragraph (2) is provided for in the 
        interagency agreement entered into by the Department of 
        the Army and the Environmental Protection Agency for 
        the Moses Lake Wellfield Superfund Site in March 1999.
    (b) Source of Funds.--Any payment under subsection (a) 
shall be made using funds authorized to be appropriated by 
section 301(17) for operation and maintenance for Environmental 
Restoration, Formerly Used Defense Sites.
    (c) Use of Funds.--The Environmental Protection Agency 
shall use the amount transferred under subsection (a) to pay 
costs incurred by the Agency at the Moses Lake Wellfield 
Superfund Site.

SEC. 316. TRANSFER OF GOVERNMENT-FURNISHED URANIUM STORED AT SEQUOYAH 
                    FUELS CORPORATION, GORE, OKLAHOMA.

    (a) Transport and Disposal.--Subject to subsection (c), the 
Secretary of the Army shall transport to an authorized disposal 
facility for appropriate disposal all of the Government-
furnished uranium in the chemical and physical form in which it 
is stored at the Sequoyah Fuels Corporation site in Gore, 
Oklahoma.
    (b) Source of Funds.--Funds authorized to be appropriated 
pursuant to section 301(1) for operation and maintenance for 
the Army may be used for the transport and disposal required 
under subsection (a).
    (c) Liability.--The Secretary may only transport uranium 
under subsection (a) after receiving from Sequoyah Fuels 
Corporation a written agreement satisfactory to the Secretary 
that provides that--
            (1) the United States assumes no liability, legal 
        or otherwise, of Sequoyah Fuels Corporation by 
        transporting the uranium; and
            (2) the Sequoyah Fuels Corporation waives any and 
        all claims it may have against the United States 
        related to the transported uranium.
    (d) Completion of Transport.--The Secretary shall complete 
the transport of uranium under subsection (a) not later than 
March 31, 2007.

SEC. 317. EXTENSION OF AUTHORITY TO GRANT EXEMPTIONS TO CERTAIN 
                    REQUIREMENTS.

    (a) Amendment to Toxic Substances Control Act.--Section 
6(e)(3) of the Toxic Substances Control Act (15 U.S.C. 
2605(e)(3)) is amended--
            (1) in subparagraph (A), by striking 
        ``subparagraphs (B) and (C)'' and inserting 
        ``subparagraphs (B), (C), and (D)'';
            (2) in subparagraph (B), by striking ``but not more 
        than one year from the date it is granted'' and 
        inserting ``but not more than 1 year from the date it 
        is granted, except as provided in subparagraph (D)''; 
        and
            (3) by adding at the end the following new 
        subparagraph:
    ``(D) The Administrator may extend an exemption granted 
pursuant to subparagraph (B) that has not yet expired for a 
period not to exceed 60 days for the purpose of authorizing the 
Secretary of Defense and the Secretaries of the military 
departments to provide for the transportation into the customs 
territory of the United States of polychlorinated biphenyls 
generated by or under the control of the Department of Defense 
for purposes of their disposal, treatment, or storage in the 
customs territory of the United States if those polychlorinated 
biphenyls are already in transit from their storage locations 
but the Administrator determines, in the sole discretion of the 
Administrator, they would not otherwise arrive in the customs 
territory of the United States within the period of the 
original exemption. The Administrator shall promptly publish 
notice of such extension in the Federal Register.''.
    (b) Sunset Date.--The amendments made by subsection (a) 
shall cease to have effect on September 30, 2012. The 
termination of the authority to grant exemptions pursuant to 
such amendments shall not effect the validity of any exemption 
granted prior to such date.
    (c) Report.--Not later than March 1, 2011, the Secretary of 
Defense shall submit to the Committee on Armed Services and the 
Committee on Environment and Public Works of the Senate and the 
Committee on Armed Services and the Committee on Energy and 
Commerce of the House of Representatives a report on the status 
of foreign-manufactured polychlorinated biphenyls under the 
control of the Department of Defense outside the United States. 
The report shall address, at a minimum--
            (1) the remaining volume of such foreign-
        manufactured polychlorinated biphenyls that may require 
        transportation into the customs territory of the United 
        States for disposal, treatment, or storage; and
            (2) the efforts that have been made by the 
        Department of Defense and other Federal agencies to 
        reduce such volume by--
                    (A) reducing the volume of foreign-
                manufactured polychlorinated biphenyls under 
                the control of the Department of Defense 
                outside the United States; or
                    (B) developing alternative options for the 
                disposal, treatment, or storage of such 
                foreign-manufactured polychlorinated biphenyls.

SEC. 318. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN EXPOSURE TO 
                    CONTAMINATED DRINKING WATER AT CAMP LEJEUNE, NORTH 
                    CAROLINA.

    (a) Study Required.--
            (1) In general.--Not later than 60 days after the 
        date of the enactment of this Act, the Secretary of the 
        Navy shall enter into an agreement with the National 
        Academy of Sciences to conduct a comprehensive review 
        and evaluation of the available scientific and medical 
        evidence regarding associations between pre-natal, 
        child, and adult exposure to drinking water 
        contaminated with trichloroethylene (TCE) and 
        tetrachloroethylene (PCE) at Camp Lejeune, North 
        Carolina, as well as other pre-natal, child, and adult 
        exposures to levels of trichloroethylene and 
        tetrachloroethylene similar to those experienced at 
        Camp Lejeune, and birth defects or diseases and any 
        other adverse health effects.
            (2) Elements.--In conducting the review and 
        evaluation, the Academy shall review and summarize the 
        scientific and medical evidence and assess the strength 
        of that evidence in establishing a link or association 
        between exposure to trichloroethylene and 
        tetrachloroethylene and each birth defect or disease 
        suspected to be associated with such exposure. For each 
        birth defect or disease reviewed, the Academy shall 
        determine, to the extent practicable with available 
        scientific and medical data, whether--
                    (A) a statistical association with such 
                contaminant exposures exists; and
                    (B) there exist plausible biological 
                mechanisms or other evidence of a causal 
                relationship between contaminant exposures and 
                the birth defect or disease.
            (3) Scope of review.--In conducting the review and 
        evaluation, the Academy shall include a review and 
        evaluation of--
                    (A) the toxicologic and epidemiologic 
                literature on adverse health effects of 
                trichloroethylene and tetrachloroethylene, 
                including epidemiologic and risk assessment 
                reports from government agencies;
                    (B) recent literature reviews by the 
                National Research Council, Institute of 
                Medicine, and other groups;
                    (C) the completed and on-going Agency for 
                Toxic Substances Disease Registry (ATSDR) 
                studies on potential trichloroethylene and 
                tetrachloroethylene exposure at Camp Lejeune; 
                and
                    (D) published meta-analyses.
            (4) Peer review.--The Academy shall obtain the peer 
        review of the report prepared as a result of the review 
        and evaluation under applicable Academy procedures.
            (5) Submittal.--The Academy shall submit the report 
        prepared as a result of the review and evaluation to 
        the Secretary and Congress not later than 18 months 
        after entering into the agreement for the review and 
        evaluation under paragraph (1).
    (b) Notice on Exposure.--
            (1) Notice required.--Upon completion of the 
        current epidemiological study by the Agency for Toxic 
        Substances Disease Registry, known as the Exposure to 
        Volatile Organic Compounds in Drinking Water and 
        Specific Birth Defects and Childhood Cancers, United 
        States Marine Corps Base Camp Lejeune, North Carolina, 
        the Commandant of the Marine Corps shall take 
        appropriate actions, including the use of national 
        media such as newspapers, television, and the Internet, 
        to notify former Camp Lejeune residents and employees 
        who may have been exposed to drinking water impacted by 
        trichloroethylene and tetrachloroethylene of the 
        results of the study.
            (2) Elements.--The information provided by the 
        Commandant of the Marine Corps under paragraph (1) 
        shall be prepared in conjunction with the Agency for 
        Toxic Substances Disease Registry and shall include a 
        description of sources of additional information 
        relating to such exposure, including, but not be 
        limited to, the following:
                    (A) A description of the events resulting 
                in exposure to contaminated drinking water at 
                Camp Lejeune.
                    (B) A description of the duration and 
                extent of the contamination of drinking water 
                at Camp Lejeune.
                    (C) The known and suspected health effects 
                of exposure to the drinking water impacted by 
                trichloroethylene and tetrachloroethylene at 
                Camp Lejeune.

    Subtitle C--Program Requirements, Restrictions, and Limitations

SEC. 321. LIMITATION ON FINANCIAL MANAGEMENT IMPROVEMENT AND AUDIT 
                    INITIATIVES WITHIN THE DEPARTMENT OF DEFENSE.

    (a) Limitation.--The Secretary of Defense may not obligate 
or expend any funds for the purpose of any financial management 
improvement activity relating to the preparation, processing, 
or auditing of financial statements until the Secretary submits 
to the congressional defense committees a written determination 
that each activity proposed to be funded is--
            (1) consistent with the financial management 
        improvement plan of the Department of Defense required 
        by section 376(a)(1) of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 190-
        163; 119 Stat. 3213); and
            (2) likely to improve internal controls or 
        otherwise result in sustained improvements in the 
        ability of the Department to produce timely, reliable, 
        and complete financial management information.
    (b) Exception.--The limitation in subsection (a) shall not 
apply to an activity directed exclusively at assessing the 
adequacy of internal controls and remediating any inadequacy 
identified pursuant to such assessment.

SEC. 322. FUNDS FOR EXHIBITS FOR THE NATIONAL MUSEUMS OF THE ARMED 
                    FORCES.

    (a) National Museum of the United States Army.--Of the 
amounts authorized to be appropriated by section 301(1) for 
operation and maintenance for the Army, not less than 
$3,000,000 may be available to the Secretary of the Army for 
the acquisition, installation, and maintenance of exhibits at 
the facility designated by the Secretary as the National Museum 
of the United States Army. The Secretary may enter into a 
contract with the Army Historical Foundation for the purpose of 
performing such acquisition, installation, and maintenance.
    (b) National Museum of the United States Navy.--Of the 
amounts authorized to be appropriated by section 301(2) for 
operation and maintenance for the Navy, not less than 
$3,000,000 may be available to the Secretary of the Navy for 
the acquisition, installation, and maintenance of exhibits at 
the facility designated by the Secretary as the National Museum 
of the United States Navy. The Secretary may enter into a 
contract with the Naval Historical Foundation for the purpose 
of performing such acquisition, installation, and maintenance.
    (c) National Museum of the Marine Corps and Heritage 
Center.--Of the amounts authorized to be appropriated by 
section 301(3) for operation and maintenance for the Marine 
Corps, not less than $3,000,000 may be available to the 
Secretary of the Navy for the acquisition, installation, and 
maintenance of exhibits at the National Museum of the Marine 
Corps and Heritage Center. The Secretary may enter into a 
contract with the United States Marine Corps Heritage 
Foundation for the purpose of performing such acquisition, 
installation, and maintenance.
    (d) National Museum of the United States Air Force.--Of the 
amounts authorized to be appropriated by section 301(4) for 
operation and maintenance for the Air Force, not less than 
$3,000,000 may be available to the Secretary of the Air Force 
for the acquisition, installation, and maintenance of exhibits 
at the facility designated by the Secretary as the National 
Museum of the United States Air Force. The Secretary may enter 
into a contract with the Air Force Museum Foundation for the 
purpose of performing such acquisition, installation, and 
maintenance.
    (e) Reimbursement.--
            (1) Authority to accept reimbursement.--After 
        September 30, 2006, the Secretary of a military 
        department may accept funds from any non-profit entity 
        authorized to support the national museum of the 
        applicable Armed Force to reimburse the Secretary for 
        amounts obligated and expended by the Secretary from 
        amounts made available to the Secretary under this 
        section.
            (2) Treatment.--Amounts accepted as reimbursement 
        under paragraph (1) shall be credited to the account 
        that was used to cover the costs for which the 
        reimbursement was provided. Amounts so credited shall 
        be merged with amounts in that account, and shall be 
        available for the same purposes, and subject to the 
        same conditions and limitations, as other amounts in 
        that account.

SEC. 323. PRIORITIZATION OF FUNDS FOR EQUIPMENT READINESS AND STRATEGIC 
                    CAPABILITY.

    (a) Prioritization of Funds.--The Secretary of Defense 
shall take such steps as may be necessary through the planning, 
programming, budgeting, and execution systems of the Department 
of Defense to ensure that financial resources are provided for 
each fiscal year as necessary to enable--
            (1) the Secretary of each military department to 
        meet the requirements of that military department for 
        that fiscal year for the repair, recapitalization, and 
        replacement of equipment used in the global war on 
        terrorism; and
            (2) the Secretary of the Army to meet the 
        requirements of the Army for that fiscal year, in 
        addition to the requirements under paragraph (1), for--
                    (A) the fulfillment of the equipment 
                requirements of units transforming to 
                modularity in accordance with the Modular Force 
                Initiative report submitted to Congress in 
                March 2006; and
                    (B) the reconstitution of equipment and 
                materiel in prepositioned stocks in accordance 
                with requirements under the Army Prepositioned 
                Stocks Strategy 2012 or a subsequent strategy 
                implemented under the guidelines in section 
                2229 of title 10, United States Code.
    (b) Submission of Budget Information.--
            (1) Submission of information.--As part of the 
        budget justification materials submitted to Congress in 
        support of the President's budget for a fiscal year or 
        a request for supplemental appropriations, the 
        Secretary of Defense shall include the following:
                    (A) The information described in paragraph 
                (2) for the fiscal year for which the budget 
                justification materials are submitted, the 
                fiscal year during which the materials are 
                submitted, and the preceding fiscal year.
                    (B) The information described in paragraph 
                (2) for each of the fiscal years covered by the 
                future-years defense program for the fiscal 
                year in which the report is submitted based on 
                estimates of any amounts required to meet each 
                of the requirements under subsection (a) that 
                are not met for that fiscal year and are 
                deferred to the future-years defense program.
                    (C) A consolidated budget justification 
                summary of the information submitted under 
                subparagraphs (A) and (B).
            (2) Information described.--The information 
        described in this paragraph is information that clearly 
        and separately identifies, by appropriations account, 
        budget activity, activity group, sub-activity group, 
        and program element or line item, the amounts requested 
        for the programs, projects, and activities of--
                    (A) each of the military departments for 
                the repair, recapitalization, or replacement of 
                equipment used in the global war on terrorism; 
                and
                    (B) the Army for--
                            (i) the fulfillment of the 
                        equipment requirements of units 
                        transforming to modularity; and
                            (ii) the reconstitution of 
                        equipment and materiel in prepositioned 
                        stocks.
            (3) Additional information in first report.--As 
        part of the budget justification materials submitted to 
        Congress in support of the President's budget for 
        fiscal year 2008, the Secretary of Defense shall also 
        include the information described in paragraph (2) for 
        fiscal years 2003, 2004, and 2005.
    (c) Annual Report on Army Progress.--On the date on which 
the President submits to Congress the budget for a fiscal year 
under section 1105 of title 31, United States Code, the 
Secretary of the Army shall submit to the congressional defense 
committees a report setting forth the progress of the Army in 
meeting the requirements of subsection (a). Any information 
required to be included in the report concerning funding 
priorities under paragraph (1) or (2) of subsection (a) shall 
be itemized by active duty component and reserve component. 
Each such report shall include the following:
            (1) A complete itemization of the requirements for 
        the funding priorities in subsection (a), including an 
        itemization for all types of modular brigades and an 
        itemization for the replacement of equipment withdrawn 
        or diverted from the reserve component for use in the 
        global war on terrorism.
            (2) A list of any shortfalls that exist between 
        available funding, equipment, supplies, and industrial 
        capacity and required funding, equipment, supplies, and 
        industrial capacity in accordance with the funding 
        priorities in subsection (a).
            (3) A list of the requirements for the funding 
        priorities in subsection (a) that the Army has included 
        in the budget for that fiscal year, including a 
        detailed listing of the type, quantity, and cost of the 
        equipment the Army plans to repair, recapitalize, or 
        procure, set forth by appropriations account and Army 
        component.
            (4) An assessment of the progress made during that 
        fiscal year toward meeting the overall requirements of 
        the funding priorities in subsection (a).
            (5) A schedule for meeting the requirements of 
        subsection (a).
            (6) A description of how the Army defines costs 
        associated with modularity versus the costs associated 
        with modernizing equipment platforms and the reset 
        (repair, recapitalization, or replacement) of equipment 
        used during the global war on terrorism, including the 
        funding expended on, and the future funding required 
        for, such reset requirements.
            (7) A complete itemization of the amount of funds 
        expended to date on the modular brigades.
            (8) The results of Army assessments of modular 
        force capabilities, including lessons learned from 
        existing modular units and any modifications that have 
        been made to modularity.
            (9) The comments of the Chief of the National Guard 
        Bureau and the Chief of the Army Reserve on each of the 
        items described in paragraphs (1) through (8).
    (d) Annual Comptroller General Report on Army Progress.--
Not later than 45 days after the date on which the President 
submits to Congress the budget for a fiscal year under section 
1105 of title 31, United States Code, the Comptroller General 
shall submit to the congressional defense committees a report 
containing the assessment of the Comptroller General on the 
following:
            (1) The progress of the Army in meeting the 
        requirements of subsection (a), including progress in 
        equipping and manning modular units in the regular 
        components and reserve components of the Armed Forces.
            (2) The use of funds by the Army for meeting the 
        requirements of subsection (a).
            (3) The progress of the Army in conducting further 
        testing and evaluations of designs under the modularity 
        initiative.
    (e) Termination of Report Requirements.--The requirement 
for the submission of a report under subsection (c) or (d) 
shall terminate on the date of the submission of the report 
required to be submitted under that subsection to accompany or 
follow the President's budget submission for fiscal year 2012.

SEC. 324. LIMITATION ON DEPLOYMENT OF MARINE CORPS TOTAL FORCE SYSTEM 
                    TO NAVY.

    (a) Limitation.--The Secretary of the Navy may not deploy 
the Marine Corps Total Force System (MCTFS) (or any derivative 
system of the MCTFS) to the Navy until the date on which the 
congressional defense committees and the Secretary of the Navy 
receive the written determination of the Chairman of the 
Defense Business Systems Management Committee submitted under 
subsection (d) that the deployment of the MCTFS to the Navy is 
in the best interests of the Department of Defense.
    (b) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the Navy 
shall submit to the congressional defense committees and the 
Comptroller General a report on the Marine Corps Total Force 
System (MCTFS). The report shall include the following:
            (1) An analysis of alternatives to the MCTFS, 
        including a detailed comparison between the cost of 
        deploying and operating the MCTFS within the Navy and 
        the cost of including the Navy in the Defense 
        Integrated Military Human Resources System.
            (2) A business case analysis, including an analysis 
        of the costs and benefits to both the Department of 
        Navy and the Department of Defense of the alternatives 
        to the MCTFS considered under the analysis required by 
        paragraph (1).
            (3) An analysis of the compatibility of the MCTFS 
        with the enterprise architecture of the Department of 
        Defense, including a detailed estimate of all interface 
        costs with current or planned Department-wide military 
        manpower, personnel, and pay information technology 
        systems.
    (c) Comptroller General Assessment.--Not later than 90 days 
after the date on which the Comptroller General receives the 
report submitted under subsection (b), the Comptroller General 
shall submit to the congressional defense committees and to the 
Chairman of the Defense Business Systems Management Committee a 
written assessment of the report.
    (d) Determination of Chairman of Defense Business Systems 
Management Committee.--Not sooner than 120 days after the date 
on which the Comptroller General receives the report submitted 
under subsection (b), the Chairman of the Defense Business 
Systems Management Committee shall review the analysis included 
in the report, together with any other relevant information 
available to the Chairman, and submit to the congressional 
defense committees and the Secretary of the Navy the written 
determination of the Chairman of whether the deployment of the 
MCTFS to the Navy is in the best interests of the Department of 
Defense.

                 Subtitle D--Workplace and Depot Issues

SEC. 331. PERMANENT EXCLUSION OF CERTAIN CONTRACT EXPENDITURES FROM 
                    PERCENTAGE LIMITATION ON THE PERFORMANCE OF DEPOT-
                    LEVEL MAINTENANCE.

    (a) Permanent Exclusion.--Section 2474(f) of title 10, 
United States Code, is amended--
            (1) by striking ``(1) Amounts'' and inserting 
        ``Amounts'';
            (2) by striking ``entered into during fiscal years 
        2003 through 2009''; and
            (3) by striking paragraph (2).
    (b) Inclusion of Certain Items in Annual Report.--
            (1) Inclusion of certain items.--Paragraph (2) of 
        section 2466(d) of such title is amended to read as 
        follows:
    ``(2) Each report required under paragraph (1) shall 
include as a separate item any expenditure covered by section 
2474(f) of this title that was made during the fiscal year 
covered by the report and shall specify the amount and nature 
of each such expenditure.''.
            (2) Conforming amendment.--The heading for 
        subsection (d) of section 2466 of such title is amended 
        to read as follows: ``Annual Report.--''.

SEC. 332. MINIMUM CAPITAL INVESTMENT FOR CERTAIN DEPOTS.

    (a) Minimum Investment Levels.--Chapter 146 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2476. Minimum capital investment for certain depots

    ``(a) Minimum Investment.--Each fiscal year, the Secretary 
of a military department shall invest in the capital budgets of 
the covered depots of that military department a total amount 
equal to not less than six percent of the average total 
combined workload funded at all the depots of that military 
department for the preceding three fiscal years.
    ``(b) Capital Budget.--For purposes of this section, the 
capital budget of a depot includes investment funds spent on 
depot infrastructure, equipment, and process improvement in 
direct support of depot operations.
    ``(c) Waiver.--The Secretary of Defense may waive the 
requirement under subsection (a) with respect to a military 
department for a fiscal year if the Secretary determines that 
the waiver is necessary for reasons of national security. 
Whenever the Secretary makes such a waiver, the Secretary shall 
notify the congressional defense committees of the waiver and 
the reasons for the waiver.
    ``(d) Annual Report.--(1) Not later than 45 days after the 
date on which the President submits to Congress the budget for 
a fiscal year under section 1105 of title 31, the Secretary of 
Defense shall submit to the congressional defense committees a 
report containing budget justification documents summarizing 
the level of capital investment for each military department as 
of the end of the preceding fiscal year.
    ``(2) Each report submitted under paragraph (1) shall 
include the following:
            ``(A) A specification of any statutory, regulatory, 
        or operational impediments to achieving the requirement 
        under subsection (a) with respect to each military 
        department.
            ``(B) A description of the benchmarks for capital 
        investment established for each covered depot and 
        military department and the relationship of the 
        benchmarks to applicable performance measurement 
        methods used in the private sector.
            ``(C) If the requirement under subsection (a) is 
        not met for a military department for the fiscal year 
        covered by the report, a statement of the reasons why 
        the requirement was not met and a plan of actions for 
        meeting the requirement for the fiscal year beginning 
        in the year in which such report is submitted.
    ``(e) Covered Depot.--In this section, the term `covered 
depot' means any of the following:
            ``(1) With respect to the Department of the Army:
                    ``(A) Anniston Army Depot, Alabama.
                    ``(B) Letterkenny Army Depot, Pennsylvania.
                    ``(C) Tobyhanna Army Depot, Pennsylvania.
                    ``(D) Corpus Christi Army Depot, Texas.
                    ``(E) Red River Army Depot, Texas.
            ``(2) With respect to the Department of the Navy:
                    ``(A) Fleet Readiness Center East Site, 
                Cherry Point, North Carolina.
                    ``(B) Fleet Readiness Center Southwest 
                Site, North Island, California.
                    ``(C) Fleet Readiness Center Southeast 
                Site, Jacksonville, Florida.
                    ``(D) Portsmouth Naval Shipyard, Maine.
                    ``(E) Pearl Harbor Naval Shipyard, Hawaii.
                    ``(F) Puget Sound Naval Shipyard, 
                Washington.
                    ``(G) Norfolk Naval Shipyard, Virginia.
                    ``(H) Marine Corps Logistics Base, Albany, 
                Georgia.
                    ``(I) Marine Corps Logistics Base, Barstow, 
                California.
            ``(3) With respect to the Department of the Air 
        Force:
                    ``(A) Warner-Robins Air Logistics Center, 
                Georgia.
                    ``(B) Ogden Air Logistics Center, Utah.
                    ``(C) Oklahoma City Air Logistics Center, 
                Oklahoma.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2476. Minimum capital investment for certain depots.''.

    (c) Effective Date.--Section 2476 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
October 1, 2006.
    (d) Two Year Phase-in for Departments of the Army and the 
Navy.--
            (1) Reduced percentage of required investment for 
        fiscal years 2007 and 2008.--The Secretary of the Army 
        shall apply subsection (a) of section 2476 of title 10, 
        United States Code, as added by subsection (a), to the 
        covered depots of the Army, and the Secretary of the 
        Navy shall apply such subsection to the covered depots 
        of the Department of the Navy--
                    (A) for fiscal year 2007, by substituting 
                ``four percent'' for ``six percent''; and
                    (B) for fiscal year 2008, by substituting 
                ``five percent'' for ``six percent''.
            (2) Covered depots.--In this subsection, the term 
        ``covered depot'' has the meaning given that term in 
        subsection (e) of section 2476 of title 10, United 
        States Code, as added by subsection (a).

SEC. 333. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE 
                    OF SECURITY GUARD FUNCTIONS.

    (a) Extension and Limitation on Total Number of 
Contractors.--Section 332(c) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314) is 
amended--
            (1) by striking ``September 30, 2007'' both places 
        it appears and inserting ``September 30, 2009'';
            (2) by redesignating subsection (d) as subsection 
        (e); and
            (3) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Limitation.--The total number of personnel employed 
to perform security guard functions under all contracts entered 
into pursuant to this section shall not exceed--
            ``(1) for fiscal year 2007, the total number of 
        such personnel employed under such contracts on October 
        1, 2006;
            ``(2) for fiscal year 2008, the number equal to 90 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006; and
            ``(3) for fiscal year 2009, the number equal to 80 
        percent of the total number of such personnel employed 
        under such contracts on October 1, 2006.''.
    (b) Report on Contractor Performance of Security-Guard 
Functions.--Not later than February 1, 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 on contractor performance of security 
guard functions under section 332 of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003 (Public Law 107-
314). The report shall include the following:
            (1) An explanation of progress made toward 
        implementing each of the seven recommendations in the 
        Comptroller General report entitled ``Contract Security 
        Guards: Army's Guard Program Requires Greater Oversight 
        and Reassessment of Acquisition Approach'' (GAO-06-
        284).
            (2) An assessment, taking into considerations the 
        observations made by the Comptroller General on the 
        report of the Department of Defense of November 2005 
        that is entitled ``Department of Defense Installation 
        Security Guard Requirement Assessment and Plan'', of 
        the following:
                    (A) The cost-effectiveness of using 
                contractors rather than Department of Defense 
                employees to perform security-guard functions.
                    (B) The performance of contractors employed 
                as security guards compared with the 
                performance of military personnel who have 
                served as security guards.
                    (C) Specific results of on-site visits made 
                by officials designated by the Secretary of 
                Defense to military installations using 
                contractors to perform security-guard 
                functions.
    (c) Contract Limitation.--No contract may be entered into 
under section 332 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
after September 30, 2007, until the report required under 
subsection (b) is submitted.

                          Subtitle E--Reports

SEC. 341. REPORT ON NAVY FLEET RESPONSE PLAN.

    (a) Report Required.--Not later than December 1, 2006, the 
Secretary of the Navy 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 program of the 
Navy referred to as the Fleet Response Plan. The report shall 
include the following:
            (1) A directive that provides guidance for the 
        conduct of the Plan and standardizes terms and 
        definitions.
            (2) Performance measures for evaluation of the 
        Plan.
            (3) Costs and resources needed to achieve 
        objectives of the Plan, including any incremental 
        effect on the Navy Operation and Maintenance budget.
            (4) Operational tests, exercises, war games, 
        experiments, and deployments used to test performance.
            (5) A collection and synthesis of lessons learned 
        from the implementation of the Plan as of the date on 
        which the report is submitted.
            (6) Evaluation of each of the following with 
        respect to each ship participating in the Plan:
                    (A) Combat readiness, including training 
                requirements.
                    (B) Ship material condition, including 
                trending data for mission degrading casualty 
                reports rated as C3 or C4.
                    (C) Professional development training 
                requirements accomplished during a deployment 
                and at home station.
                    (D) Crew retention statistics.
            (7) Any proposed changes to the Surface Force 
        Training Manual.
            (8) The amount of funding required to effectively 
        implement the operation and maintenance requirements of 
        the Plan by ship class.
            (9) Any recommendations of the Secretary of the 
        Navy with respect to expanding the Plan to include 
        Expeditionary Strike Groups.
    (b) Comptroller General Report.--Not later than 120 days 
after the date on which the Secretary of the Navy submits the 
report required under subsection (a), the Comptroller General 
shall submit to the congressional defense committees a report 
containing a review of the report required under that 
subsection. The Comptroller General's report shall include the 
following:
            (1) An examination of the management approaches of 
        the Navy in implementing the Fleet Response Plan.
            (2) An assessment of the adequacy of Navy 
        directives and guidance with respect to maintenance and 
        training requirements and procedures.
            (3) An analysis and assessment of the adequacy of 
        the Navy's evaluation criteria for the Plan.
            (4) An evaluation of Navy data on aircraft 
        carriers, destroyers, and cruisers that participated in 
        the Plan with respect to readiness, response time, and 
        availability for routine or unforeseen deployments.
            (5) An assessment of the Navy's progress in 
        identifying the amount of funding required to 
        effectively implement the operations and maintenance 
        requirements of the Plan and the effect of providing 
        funding in an amount less than that amount.
            (6) Any recommendations of the Comptroller General 
        with respect to expanding the Plan to include 
        Expeditionary Strike Groups.
    (c) Postponement of Expansion.--The Secretary of the Navy 
may not expand the implementation of the Fleet Response Plan 
beyond the Carrier Strike Groups until the date that is six 
months after the date on which the Secretary of the Navy 
submits the report required under subsection (a).

SEC. 342. REPORT ON NAVY SURFACE SHIP ROTATIONAL CREW PROGRAMS.

    (a) Report Required.--Not later than April 1, 2007, the 
Secretary of the Navy 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 ship rotational 
crew experiment referred to in subsection (c)(1). The report 
shall include the following:
            (1) A comparison between the three destroyers 
        participating in that experiment and destroyers not 
        participating in the experiment that takes into 
        consideration each of the following:
                    (A) Cost-effectiveness, including a 
                comparison of travel and per diem expenses, 
                maintenance costs, and other costs.
                    (B) Maintenance procedures, impacts, and 
                deficiencies, including the number and 
                characterization of maintenance deficiencies, 
                the extent of voyage repairs, post-deployment 
                assessments of the material condition of the 
                ships, and the extent to which work levels were 
                maintained.
                    (C) Mission training requirements.
                    (D) Professional development requirements 
                and opportunities.
                    (E) Liberty port of call opportunities.
                    (F) Movement and transportation of crew.
                    (G) Inventory and property accountability.
                    (H) Policies and procedures for assigning 
                billets for rotating crews.
                    (I) Crew retention statistics.
                    (J) Readiness and mission capability data.
            (2) Results from surveys administered or focus 
        groups held to obtain representative views from 
        commanding officers, officers, and enlisted members on 
        the effects of rotational crew experiments on quality 
        of life, training, professional development, 
        maintenance, mission effectiveness, and other issues.
            (3) The extent to which standard policies and 
        procedures were developed and used for participating 
        ships.
            (4) Lessons learned from the experiment.
            (5) An assessment from the combatant commanders on 
        the crew mission performance when deployed.
            (6) An assessment from the commander of the Fleet 
        Forces Command on the material condition, maintenance, 
        and crew training of each participating ship.
            (7) Any recommendations of the Secretary of the 
        Navy with respect to the extension of the ship 
        rotational crew experiment or the implementation of the 
        experiment for other surface vessels.
    (b) Postponement of Implementation.--The Secretary of the 
Navy may not begin implementation of any new surface ship 
rotational crew experiment or program during the period 
beginning on the date of the enactment of this Act and ending 
on October 1, 2009.
    (c) Treatment of Existing Experiments.--
            (1) Destroyer experiment.--Not later than January 
        1, 2007, the Secretary of the Navy shall terminate the 
        existing ship rotational crew experiment involving the 
        U.S.S. Gonzalez (DDG-66), the U.S.S. Stout (DDG-55), 
        and the U.S.S. Laboon (DDG-58) that is known as the 
        ``sea swap''.
            (2) Patrol coastal class ship experiment.--The 
        Secretary of the Navy may continue the existing ship 
        rotational crew program that is currently in use by 
        overseas-based Patrol Coastal class ships.
            (3) Mine countermeasures ships.--The Secretary of 
        the Navy may continue the existing ship rotational crew 
        program that is currently in use by MCM and MHC ships.
            (4) Littoral combat ships.--The Secretary of the 
        Navy may employ a two crew for one ship (commonly 
        referred to as Blue-Gold) rotational crew program for 
        the first two ships of each Littoral combat ship design 
        (LCS 1-4).
    (d) Comptroller General Report.--Not later than July 15, 
2007, 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 ship 
rotational crew experiment referred to in subsection (c)(1). 
The report shall include the following:
            (1) A review of the report submitted by the 
        Secretary of the Navy under subsection (a) and an 
        assessment of the extent to which the Secretary fully 
        addressed costs, quality of life, training, 
        maintenance, and mission effectiveness, and other 
        relevant issues in that report.
            (2) An assessment of the extent to which the 
        Secretary established and applied a comprehensive 
        framework for assessing the use of ship rotational crew 
        experiments, including formal objectives, metrics, and 
        methodology for assessing the cost-effectiveness of 
        such experiments.
            (3) An assessment of the extent to which the 
        Secretary established effective guidance for the use of 
        ship rotational crew experiments.
            (4) Lessons learned from recent ship rotational 
        crew experiments and an assessment of the extent to 
        which the Navy systematically collects and shares 
        lessons learned.
    (e) Congressional Budget Office Report.--Not later than 
July 15, 2007, the Director of the Congressional Budget Office 
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 long-term implications of the 
use of crew rotation on Navy ships on the degree of forward 
presence provided by Navy ships. The report shall include the 
following:
            (1) An analysis of different approaches to crew 
        rotation and the degree of forward presence each 
        approach would provide.
            (2) A comparison of the degree of forward presence 
        provided by the fleet under the long-term shipbuilding 
        plan of the Navy with and without the widespread use of 
        crew rotation.
            (3) The long-term benefits and costs of using crew 
        rotation on Navy ships.

SEC. 343. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII.

    Not later than March 1, 2007, the Secretary of the Army 
shall submit to Congress a report on the adequacy of the live-
fire ranges of the Army in the State of Hawaii with respect to 
current and future training requirements. The report shall 
include the following:
            (1) An evaluation of the capacity of the existing 
        live-fire ranges to meet the training requirements of 
        the Army, including the training requirements of 
        Stryker Brigade Combat Teams.
            (2) A description of any existing plan to modify or 
        expand any range in Hawaii for the purpose of meeting 
        anticipated live-fire training requirements.
            (3) A description of the current live-fire 
        restrictions at the Makua Valley range and the effect 
        of these restrictions on unit readiness.
            (4) Cost and schedule estimates for the 
        construction of new ranges or the modification of 
        existing ranges that are necessary to support future 
        training requirements if existing restrictions on 
        training at the Makua Valley range remain in place.

SEC. 344. COMPTROLLER GENERAL REPORT ON JOINT STANDARDS AND PROTOCOLS 
                    FOR ACCESS CONTROL SYSTEMS AT DEPARTMENT OF DEFENSE 
                    INSTALLATIONS.

    (a) Report Required.--Not later than one year after the 
date of the enactment of this Act, 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 containing the assessment of the 
Comptroller General of--
            (1) the extent to which consistency exists in 
        standards, protocols, and procedures for access control 
        across installations of the Department of Defense; and
            (2) whether the establishment of joint standards 
        and protocols for access control at such installations 
        would be likely to--
                    (A) address any need of the Department 
                identified by the Comptroller General; or
                    (B) improve access control across such 
                installations by providing greater consistency 
                and improved force protection.
    (b) Issues To Be Assessed.--In conducting the assessment 
required by subsection (a), the Comptroller General shall 
assess the extent to which each installation of the Department 
of Defense has or would benefit from having an access control 
system with the ability to--
            (1) electronically check any identification card 
        issued by any Federal agency or any State or local 
        government within the United States, including any 
        identification card of a visitor to the installation 
        who is a citizen or legal resident of the United 
        States;
            (2) verify that an identification card used to 
        obtain access to the installation was legitimately 
        issued and has not been reported lost or stolen;
            (3) check on a real-time basis all relevant watch 
        lists maintained by the Government, including terrorist 
        watch lists and lists of persons wanted by Federal, 
        State, or local law enforcement authorities;
            (4) maintain a log of individuals seeking access to 
        the installation and of individuals who are denied 
        access to the installation; and
            (5) exchange information with any installation with 
        a system that complies with the joint standards and 
        protocols.

SEC. 345. COMPTROLLER GENERAL REPORT ON READINESS OF ARMY AND MARINE 
                    CORPS GROUND FORCES.

    (a) Report Required.--
            (1) In general.--Not later than June 1, 2007, 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 readiness of the active component and reserve 
        component ground forces of the Army and the Marine 
        Corps.
            (2) One or more reports.--In complying with the 
        requirements of this section, the Comptroller General 
        may submit a single report addressing all the elements 
        specified in subsection (b) or two or more reports 
        addressing any combination of such elements. If the 
        Comptroller General submits more than one report under 
        this section, all such reports shall be submitted not 
        later than the date specified in paragraph (1).
    (b) Elements.--The elements specified in this subsection 
are the following:
            (1) An analysis of the current readiness status of 
        each of the active component and reserve component 
        ground forces of the Army and the Marine Corps, 
        including a description of any major deficiency 
        identified, an analysis of the trends in readiness of 
        such forces during not less than the ten-year period 
        preceding the date on which the report is submitted, 
        and a comparison of the current readiness indicators of 
        such ground forces with historical patterns.
            (2) An assessment of the ability of the Army and 
        the Marine Corps to provide trained and ready forces 
        for ongoing operations as well as other commitments 
        assigned to the Army and the Marine Corps in defense 
        planning documents.
            (3) An analysis of the availability of equipment 
        for training by units of the Army and the Marine Corps 
        in the United States in configurations comparable to 
        the equipment being used by units of the Army and the 
        Marine Corps, as applicable, in ongoing operations.
            (4) An analysis of the current and projected 
        requirements for repair or replacement of equipment of 
        the Army and the Marine Corps due to ongoing operations 
        and the effect of such required repair or replacement 
        of equipment on the availability of equipment for 
        training.
            (5) An assessment of the current personnel tempo of 
        Army and Marine Corps forces, including--
                    (A) a comparison of such tempos to 
                historical trends;
                    (B) an identification of particular 
                occupational specialties that are experiencing 
                unusually high or low deployment rates; and
                    (C) an analysis of retention rates in the 
                occupational specialties identified under 
                subparagraph (B).
            (6) An assessment of the efforts of the Army and 
        the Marine Corps to mitigate the impact of high 
        operational tempos, including cross-leveling of 
        personnel and equipment or cross training of personnel 
        or units for new or additional mission requirements.
            (7) A description of the current policy of the Army 
        and the Marine Corps with respect to the mobilization 
        of reserve component personnel, together with an 
        analysis of the number of reserve component personnel 
        in each of the Army and the Marine Corps that are 
        projected to be available for deployment under such 
        policy.
    (c) Form of Report.--Any report submitted under subsection 
(a) shall be submitted in both classified and unclassified 
form.

SEC. 346. REPORT ON AIR FORCE SAFETY REQUIREMENTS FOR AIR FORCE FLIGHT 
                    TRAINING OPERATIONS AT PUEBLO MEMORIAL AIRPORT, 
                    COLORADO.

    (a) Report Required.--Not later than February 15, 2007, the 
Secretary of the Air Force shall submit to the congressional 
defense committees a report on Air Force safety requirements 
for Air Force flight training operations at Pueblo Memorial 
Airport, Colorado.
    (b) Elements.--The report required under subsection (a) 
shall include each of the following:
            (1) A description of the Air Force flying 
        operations at Pueblo Memorial Airport, including the 
        Initial Flight Screening program.
            (2) An assessment of the impact of Air Force 
        operations at Pueblo Memorial Airport on non-Air Force 
        activities at the airport.
            (3) A description of the requirements necessary at 
        Pueblo Memorial Airport to ensure safe Air Force flying 
        operations, including the continuous availability of 
        fire protection, crash rescue, and other emergency 
        response capabilities.
            (4) An assessment of the necessity of providing for 
        a continuous fire-fighting capability at Pueblo 
        Memorial Airport.
            (5) A description and analysis of any alternatives 
        for Air Force flying operations at Pueblo Memorial 
        Airport, including the cost and availability of any 
        such alternatives.
            (6) A description of Air Force funding of fire-
        fighting and crash rescue support at Pueblo Memorial 
        Airport through the services contract for the Initial 
        Flight Screening program.
            (7) An assessment of whether Air Force funding is 
        required to assist the City of Pueblo, Colorado, in 
        meeting Air Force requirements for safe Air Force 
        flight operations at Pueblo Memorial Airport, and if 
        such funding is required, the plan of the Secretary of 
        the Air Force to provide such funding to the city.

SEC. 347. ANNUAL REPORT ON PERSONNEL SECURITY INVESTIGATIONS FOR 
                    INDUSTRY AND NATIONAL INDUSTRIAL SECURITY PROGRAM.

    (a) Annual Report Required.--The Secretary of Defense shall 
include in the budget justification documents submitted to 
Congress in support of the President's budget for the 
Department of Defense for each fiscal year, a report on the 
future requirements of the Department of Defense with respect 
to the Personnel Security Investigations for Industry and the 
National Industrial Security Program of the Defense Security 
Service.
    (b) Contents of Report.--Each report required to be 
submitted under subsection (a) shall include the following:
            (1) The funding requirements of the personnel 
        security clearance investigation program and ability of 
        the Secretary of Defense to fund the program.
            (2) The size of the personnel security clearance 
        investigation process backlog.
            (3) The length of the average delay for an 
        individual case pending in the personnel security 
        clearance investigation process.
            (4) Any progress made by the Secretary of Defense 
        during the 12 months preceding the date on which the 
        report is submitted toward implementing planned changes 
        in the personnel security clearance investigation 
        process.
            (5) A determination certified by the Secretary of 
        Defense of whether the personnel security clearance 
        investigation process has improved during the 12 months 
        preceding the date on which the report is submitted.
    (c) Comptroller General Report.--Not later than 180 days 
after the Secretary of Defense submits the first report 
required under subsection (a), the Comptroller General shall 
submit to Congress a report that contains a review of such 
report. The Comptroller General's report shall include the 
following:
            (1) The number of personnel security clearance 
        investigations conducted during the period beginning on 
        October 1, 1999, and ending on September 30, 2006.
            (2) The number of each type of security clearance 
        granted during that period.
            (3) The unit cost to the Department of Defense of 
        each security clearance granted during that period.
            (4) The amount of any fee or surcharge paid to the 
        Office of Personnel Management as a result of 
        conducting a personnel security clearance 
        investigation.
            (5) A description of the procedures used by the 
        Secretary of Defense to estimate the number of 
        personnel security clearance investigations to be 
        conducted during a fiscal year.
            (6) A description of any plan developed by the 
        Secretary of Defense to reduce delays and backlogs in 
        the personnel security clearance investigation process.
            (7) A description of any plan developed by the 
        Secretary of Defense to adequately fund the personnel 
        security clearance investigation process.
            (8) A description of any plan developed by the 
        Secretary of Defense to establish a more stable and 
        effective Personnel Security Investigations Program.

SEC. 348. FIVE-YEAR EXTENSION OF ANNUAL REPORT ON TRAINING RANGE 
                    SUSTAINMENT PLAN AND TRAINING RANGE INVENTORY.

    Section 366 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2522; 
10 U.S.C. 113 note) is amended--
            (1) in subsections (a)(5) and (c)(2), by striking 
        ``fiscal years 2005 through 2008'' and inserting 
        ``fiscal years 2005 through 2013''; and
            (2) in subsection (d), by striking ``within 60 days 
        of receiving a report'' and inserting ``within 90 days 
        of receiving a report''.

SEC. 349. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT FROM RESERVE 
                    UNITS FOR SUPPORT OF RESERVE UNITS BEING MOBILIZED 
                    AND OTHER UNITS.

    (a) Report Required on Withdrawal or Diversion of 
Equipment.--Not later than 90 days after the date on which the 
Secretary concerned (as that term is defined in section 
101(a)(9) of title 10, United States Code) withdraws or diverts 
equipment from any reserve component unit for the purpose of 
transferring such equipment to a reserve component unit that is 
ordered to active duty under section 12301, 12302, or 12304 of 
title 10, United States Code, or to an active component unit 
for the purpose of discharging the mission of the unit to which 
the equipment is diverted, the Secretary concerned shall submit 
to the Secretary of Defense a status report on such withdrawal 
or diversion of equipment.
    (b) Elements of Status Report.--Each status report under 
subsection (a) shall include the following:
            (1) A plan to repair, recapitalize, or replace the 
        equipment withdrawn or diverted within the unit from 
        which it is being withdrawn or diverted.
            (2) In the case of equipment that is to remain in a 
        theater of operations while the unit from which the 
        equipment is withdrawn or diverted leaves the theater 
        of operations, a plan to provide that unit with 
        equipment appropriate to ensure the continuation of the 
        readiness training of the unit.
            (3) A signed memorandum of understanding between 
        the active or reserve component to which the equipment 
        is diverted and the reserve component from which the 
        equipment is withdrawn or diverted that specifies--
                    (A) how the equipment will be accounted 
                for; and
                    (B) when the equipment will be returned to 
                the component from which it was withdrawn or 
                diverted.
    (c) Reports to Congress.--Not later than 90 days after the 
date of the enactment of this Act and every 90 days thereafter, 
the Secretary of Defense shall submit to Congress all status 
reports submitted under subsection (a) during the 90-day period 
preceding the date on which the Secretary of Defense submits 
such reports.
    (d) Termination.--This section shall terminate on the date 
that is five years after the date of the enactment of this Act.

                       Subtitle F--Other Matters

SEC. 351. DEPARTMENT OF DEFENSE STRATEGIC POLICY ON PREPOSITIONING OF 
                    MATERIEL AND EQUIPMENT.

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

``Sec. 2229. Strategic policy on prepositioning of materiel and 
                    equipment

    ``(a) Policy Required.--The Secretary of Defense shall 
maintain a strategic policy on the programs of the Department 
of Defense for the prepositioning of materiel and equipment. 
Such policy shall take into account national security threats, 
strategic mobility, service requirements, and the requirements 
of the combatant commands.
    ``(b) Limitation of Diversion of Prepositioned Materiel.--
The Secretary of a military department may not divert materiel 
or equipment from prepositioned stocks except--
            ``(1) in accordance with a change made by the 
        Secretary of Defense to the policy maintained under 
        subsection (a); or
            ``(2) for the purpose of directly supporting a 
        contingency operation or providing humanitarian 
        assistance under chapter 20 of this title.
    ``(c) Congressional Notification.--The Secretary of Defense 
may not implement or change the policy required under 
subsection (a) until the Secretary submits to the congressional 
defense committees a report describing the policy or change to 
the policy.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2229. Strategic policy on prepositioning of materiel and equipment.''.

    (c) Deadline for Establishment of Policy.--
            (1) Deadline.--Not later than six months after the 
        date of the enactment of this Act, the Secretary of 
        Defense shall establish the strategic policy on the 
        programs of the Department of Defense for the 
        prepositioning of materiel and equipment required under 
        section 2229 of title 10, United States Code, as added 
        by subsection (a).
            (2) Limitation on diversion of prepositioned 
        materiel.--During the period beginning on the date of 
        the enactment of this Act and ending on the date on 
        which the Secretary of Defense submits the report 
        required under section 2229(c) of title 10, United 
        States Code, on the policy referred to in paragraph 
        (1), the Secretary of a military department may not 
        divert materiel or equipment from prepositioned stocks 
        except for the purpose of directly supporting a 
        contingency operation or providing humanitarian 
        assistance under chapter 20 of that title.

SEC. 352. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE HORSES AVAILABLE FOR 
                    ADOPTION.

    (a) Inclusion of Department of Defense Horses in Existing 
Authority.--Section 2583 of title 10, United States Code, is 
amended--
            (1) in the section heading, by striking ``working 
        dogs'' and inserting ``animals'';
            (2) by striking ``working'' each place it appears;
            (3) by striking ``dog'' and ``dogs'' each place 
        they appear and inserting ``animal'' and ``animals'', 
        respectively;
            (4) by striking ``dog's'' in paragraphs (1) and (2) 
        of subsection (a) and inserting ``animal's'';
            (5) by striking ``a dog's adoptability'' in 
        subsection (b) and inserting ``the adoptability of the 
        animal''; and
            (6) by adding at the end the following new 
        subsection:
    ``(g) Military Animal Defined.--In this section, the term 
`military animal' means the following:
            ``(1) A military working dog.
            ``(2) A horse owned by the Department of 
        Defense.''.
    (b) Clerical Amendment.--The item relating to such section 
in the table of sections at the beginning of chapter 153 of 
such title is amended to read as follows:

``2583. Military animals: transfer and adoption.''.

SEC. 353. SALE AND USE OF PROCEEDS OF RECYCLABLE MUNITIONS MATERIALS.

    (a) Establishment of Program.--Chapter 443 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 4690. Recyclable munitions materials: sale; use of proceeds

    ``(a) Authority for Program.--Notwithstanding section 2577 
of this title, the Secretary of the Army may carry out a 
program to sell recyclable munitions materials resulting from 
the demilitarization of conventional military munitions without 
regard to chapter 5 of title 40 and use any proceeds in 
accordance with subsection (c).
    ``(b) Method of Sale.--The Secretary shall use competitive 
procedures to sell recyclable munitions materials under this 
section in a manner consistent with Federal procurement laws 
and regulations.
    ``(c) Proceeds.--(1) Proceeds from the sale of recyclable 
munitions materials under this section shall be credited to an 
account that is specified as being for Army ammunition 
demilitarization from funds made available for the procurement 
of ammunition, to be available only for reclamation, recycling, 
and reuse of conventional military munitions (including 
research and development and equipment purchased for such 
purpose).
    ``(2) Amounts credited under this subsection shall be 
available for obligation for the fiscal year during which the 
funds are so credited and for three subsequent fiscal years.
    ``(d) Regulations.--The Secretary shall prescribe 
regulations to carry out the program established under this 
section. Such regulations shall be consistent and in compliance 
with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) and 
the regulations implementing that Act.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``4690. Recyclable munitions materials: sale; use of proceeds.''.

SEC. 354. RECOVERY AND TRANSFER TO CORPORATION FOR THE PROMOTION OF 
                    RIFLE PRACTICE AND FIREARMS SAFETY OF CERTAIN 
                    FIREARMS, AMMUNITION, AND PARTS GRANTED TO FOREIGN 
                    COUNTRIES.

    (a) Authority To Recover; Transfer to Corporation.--
Subchapter II of chapter 407 of title 36, United States Code, 
is amended by inserting after section 40728 the following new 
section:

``Sec. 40728A. Recovery of excess firearms, ammunition, and parts 
                    granted to foreign countries and transfer to 
                    corporation

    ``(a) Authority To Recover.--The Secretary of the Army may 
recover from any country to which rifles, ammunition, repair 
parts, or other supplies described in section 40731(a) of this 
title are furnished on a grant basis under the conditions 
imposed by section 505 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2314) any such rifles, ammunition, repair parts, or 
supplies that become excess to the needs of such country.
    ``(b) Cost of Recovery.--(1) Except as provided in 
paragraph (2), the cost of recovery of any rifles, ammunition, 
repair parts, or supplies under subsection (a) shall be treated 
as incremental direct costs incurred in providing logistical 
support to the corporation for which reimbursement shall be 
required as provided in section 40727(a) of this title.
    ``(2) The Secretary may require the corporation to pay 
costs of recovery described in paragraph (1) in advance of 
incurring such costs. Amounts so paid shall not be subject to 
the provisions of section 3302 of title 31, but shall be 
administered in accordance with the last sentence of section 
40727(a) of this title.
    ``(c) Availability for Transfer to Corporation.--Any 
rifles, ammunition, repair parts, or supplies recovered under 
subsection (a) shall be available for transfer to the 
corporation in accordance with section 40728 of this title 
under such additional terms and conditions as the Secretary 
shall prescribe for purposes of this section.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 40728 the following new item:

``40728A. Recovery of excess firearms, ammunition, and parts granted to 
          foreign countries and transfer to corporation.''.

SEC. 355. EXTENSION OF DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT 
                    PROGRAM.

    (a) Termination at End of Contingency Operation.--
Subsection (c) of section 344 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) is 
amended to read as follows:
    ``(c) Termination of Benefit.--The authority to provide a 
benefit under subsection (a)(1) to a member directly supporting 
a contingency operation shall terminate on the date that is 60 
days after the date on which the Secretary determines that the 
contingency operation has ended.''.
    (b) Application to Other Contingency Operations.--Such 
section is further amended--
            (1) in subsection (a), by striking ``Operation 
        Iraqi Freedom and Operation Enduring Freedom'' and 
        inserting ``a contingency operation''; and
            (2) by adding at the end the following new 
        subsection:
    ``(g) Contingency Operation Defined.--In this section, the 
term `contingency operation' has the meaning given that term in 
section 101(a)(13) of title 10, United States Code. The term 
includes Operation Iraqi Freedom and Operation Enduring 
Freedom.''.
    (c) Extension to Hospitalized Members.--Subsection (a) of 
such section is further amended--
            (1) by striking ``As soon as possible after the 
        date of the enactment of this Act, the'' and inserting 
        ``(1) The''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) As soon as possible after the date of the enactment 
of the John Warner National Defense Authorization Act for 
Fiscal Year 2007, the Secretary shall provide, wherever 
practicable, prepaid phone cards, packet based telephone 
service, or an equivalent telecommunications benefit which 
includes access to telephone service to members of the Armed 
Forces who, although are no longer directly supporting a 
contingency operation, are hospitalized as a result of wounds 
or other injuries incurred while serving in direct support of a 
contingency operation.''.
    (d) Report on Implementation of Modified Benefits.--Not 
later than 90 days after the date of the enactment of this Act, 
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 describing the status of 
the efforts of the Department of Defense to implement the 
modifications of the Department of Defense telecommunications 
benefit required by section 344 of the National Defense 
Authorization Act for Fiscal Year 2004 that result from the 
amendments made by this section.

SEC. 356. EXTENSION OF AVAILABILITY OF FUNDS FOR COMMEMORATION OF 
                    SUCCESS OF THE ARMED FORCES IN OPERATION ENDURING 
                    FREEDOM AND OPERATION IRAQI FREEDOM.

    Section 378(b)(2) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3214) is 
amended by striking ``fiscal year 2006'' and inserting ``fiscal 
years 2006 and 2007''.

SEC. 357. CAPITAL SECURITY COST SHARING.

    (a) Reconciliation Required.--For each fiscal year, the 
Secretary of Defense shall reconcile (1) the estimate of 
overseas presence of the Secretary of Defense under subsection 
(b) for that fiscal year, with (2) the determination of the 
Secretary of State under section 604(e)(1) of the Secure 
Embassy Construction and Counterterrorism Act of 1999 (22 
U.S.C. 4865 note) of the total overseas presence of the 
Department of Defense for that fiscal year.
    (b) Annual Estimate of Overseas Presence.--Not later than 
February 1 of each year, the Secretary of Defense shall submit 
to the congressional defense committees an estimate of the 
total number of Department of Defense overseas personnel 
subject to chief of mission authority pursuant to section 207 
of the Foreign Service Act of 1980 (22 U.S.C. 3927) during the 
fiscal year that begins on October 1 of that year.

SEC. 358. UTILIZATION OF FUEL CELLS AS BACK-UP POWER SYSTEMS IN 
                    DEPARTMENT OF DEFENSE OPERATIONS.

    The Secretary of Defense shall consider the utilization of 
fuel cells as replacements for current back-up power systems in 
a variety of Department of Defense operations and activities, 
including in telecommunications networks, perimeter security, 
individual equipment items, and remote facilities, in order to 
increase the operational longevity of back-up power systems and 
stand-by power systems in such operations and activities.

SEC. 359. IMPROVING DEPARTMENT OF DEFENSE SUPPORT FOR CIVIL 
                    AUTHORITIES.

    (a) Consultation.--In the development of concept plans for 
the Department of Defense for providing support to civil 
authorities, the Secretary of Defense may consult with the 
Secretary of Homeland Security and State governments.
    (b) Prepositioning of Department of Defense Assets.--The 
Secretary of Defense may provide for the prepositioning of 
prepackaged or preidentified basic response assets, such as 
medical supplies, food and water, and communications equipment, 
in order to improve the ability of the Department of Defense to 
rapidly provide support to civil authorities. The 
prepositioning of basic response assets shall be carried out in 
a manner consistent with Department of Defense concept plans 
for providing support to civil authorities and section 2229 of 
title 10, United States Code, as added by section 351.
    (c) Reimbursement.--To the extent required by section 1535 
of title 31, United States Code, or other applicable law, the 
Secretary of Defense shall require that the Department of 
Defense be reimbursed for costs incurred by the Department in 
the prepositioning of basic response assets under subsection 
(b).
    (d) Military Readiness.--The Secretary of Defense shall 
ensure that the prepositioning of basic response assets under 
subsection (b) does not adversely affect the military 
preparedness of the United States.
    (e) Procedures and Guidelines.--The Secretary may develop 
procedures and guidelines applicable to the prepositioning of 
basic response assets under subsection (b).

SEC. 360. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

    (a) Policy.--It shall be the policy of the Department of 
Defense to improve the fuel efficiency of weapons platforms, 
consistent with mission requirements, in order to--
            (1) enhance platform performance;
            (2) reduce the size of the fuel logistics systems;
            (3) reduce the burden high fuel consumption places 
        on agility;
            (4) reduce operating costs; and
            (5) dampen the financial impact of volatile oil 
        prices.
    (b) Report Required.--
            (1) In general.--Not later than one year after the 
        date of the enactment of this Act, the Secretary of 
        Defense shall submit to the congressional defense 
        committees a report on the progress of the Department 
        of Defense in implementing the policy established by 
        subsection (a).
            (2) Elements.--The report shall include the 
        following:
                    (A) An assessment of the feasibility of 
                designating a senior Department of Defense 
                official to be responsible for implementing the 
                policy established by subsection (a).
                    (B) A summary of the recommendations made 
                as of the time of the report by--
                            (i) the Energy Security Integrated 
                        Product Team established by the 
                        Secretary of Defense in April 2006;
                            (ii) the Defense Science Board Task 
                        Force on Department of Defense Energy 
                        Strategy established by the Under 
                        Secretary of Defense for Acquisition, 
                        Technology and Logistics on May 2, 
                        2006; and
                            (iii) the January 2001 Defense 
                        Science Board Task Force report on 
                        Improving Fuel Efficiency of Weapons 
                        Platforms.
                    (C) For each recommendation summarized 
                under subparagraph (B)--
                            (i) the steps that the Department 
                        has taken to implement such 
                        recommendation;
                            (ii) any additional steps the 
                        Department plans to take to implement 
                        such recommendation; and
                            (iii) for any recommendation that 
                        the Department does not plan to 
                        implement, the reasons for the decision 
                        not to implement such recommendation.
                    (D) An assessment of the extent to which 
                the research, development, acquisition, and 
                logistics guidance and directives of the 
                Department for weapons platforms are 
                appropriately designed to address the policy 
                established by subsection (a).
                    (E) An assessment of the extent to which 
                such guidance and directives are being carried 
                out in the research, development, acquisition, 
                and logistics programs of the Department.
                    (F) A description of any additional actions 
                that, in the view of the Secretary, may be 
                needed to implement the policy established by 
                subsection (a).

SEC. 361. PRIORITIZATION OF FUNDS WITHIN NAVY MISSION OPERATIONS, SHIP 
                    MAINTENANCE, COMBAT SUPPORT FORCES, AND WEAPONS 
                    SYSTEM SUPPORT.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the President's budget for fiscal year 2007 
        failed to fund the required number of ship steaming 
        days per quarter for Navy ship operations as well as 
        deferring projected depot maintenance for Navy ships 
        and aircraft; and
            (2) the Secretary of Defense should ensure that 
        sufficient financial resources are provided for each 
        fiscal year to support the critical training and depot 
        maintenance accounts of the Navy in order to enable the 
        Navy to maintain the current readiness levels required 
        to support the national military strategy without 
        putting future readiness at risk by underfunding 
        investment in modernization, including ship 
        construction programs.
    (b) Certification.--The Secretary of Defense shall submit 
to the congressional defense committees a written 
certification, at the same time the President submits the 
budget for each of fiscal years 2008, 2009, and 2010, that the 
Navy has budgeted and programmed funding to fully meet the 
requirements for that fiscal year for each of the following:
            (1) Ship steaming days per quarter for deployed and 
        non-deployed ship operations.
            (2) Projected depot maintenance requirements for 
        ships and aircraft.
    (c) Limitation.--Of the funds available for Operation and 
Maintenance, Defense-Wide, for the Office of the Secretary of 
Defense for each of fiscal years 2008, 2009, and 2010, no more 
than 80 percent may be obligated in that fiscal year until 
after the submission of the certification required by 
subsection (b) for the annual budget submitted in February of 
that year for the following fiscal year.
    (d) Annual Report.--Beginning with the fiscal year 2008 
budget of the President, the Secretary of the Navy shall submit 
to the congressional defense committees an annual report (to be 
submitted when the budget is submitted) setting forth the 
progress toward funding the requirements of subsection (a). The 
annual reporting requirement shall terminate after the fiscal 
year 2010 budget submission. Each such report shall include the 
following:
            (1) An assessment of the deployed and non-deployed 
        quarterly ship steaming day requirements, itemized by 
        active-duty component and reserve component.
            (2) An assessment of the associated budget request 
        for each of the following:
                    (A) Deployed and non-deployed ship steaming 
                days per quarter.
                    (B) Chief of Naval Operations ship depot 
                maintenance availabilities, shown by type of 
                maintenance availability and by location.
                    (C) Air depot maintenance workload, shown 
                by type of airframe and by location.
    (e) Report on Riverine Squadrons.--
            (1) Report required.--The Secretary of Navy shall 
        submit to the congressional defense committees a report 
        on the Riverine Squadrons of the Navy. The report shall 
        be submitted with the President's budget for fiscal 
        year 2008 and shall include the following:
                    (A) The total amount funded for fiscal year 
                2006 and projected funding for fiscal year 2007 
                and fiscal year 2008 for those squadrons.
                    (B) The operational requirement of the 
                commander of the United States Central Command 
                for those squadrons and the corresponding 
                Department of Navy concept of operations for 
                deployments of those squadrons to support 
                Operation Iraqi Freedom or Operation Enduring 
                Freedom.
                    (C) The military table of organization and 
                equipment for those squadrons.
                    (D) A summary of existing Department of 
                Navy equipment that has been assigned in fiscal 
                year 2006 or will be provided in fiscal year 
                2007 and fiscal year 2008 for those squadrons.
                    (E) The Department of Navy directive for 
                the mission assigned to those squadrons.
            (2) Limitation.--Of the amount made available for 
        fiscal year 2007 to the Department of Navy for 
        operation and maintenance for the Office of the 
        Secretary of the Navy, not more than 80 percent may be 
        obligated before the date on which the report required 
        under paragraph (1) is submitted.

SEC. 362. PROVISION OF ADEQUATE STORAGE SPACE TO SECURE PERSONAL 
                    PROPERTY OUTSIDE OF ASSIGNED MILITARY FAMILY 
                    HOUSING UNIT.

    The Secretary of a military department shall ensure that a 
member of the Armed Forces under the jurisdiction of the 
Secretary who occupies a unit of military family housing is 
provided with adequate storage space to secure personal 
property that the member is unable to secure within the unit 
whenever--
            (1) the member is assigned to duty in an area for 
        which special pay under section 310 of title 37, United 
        States Code, is available and the assignment is 
        pursuant to orders specifying an assignment of 180 days 
        or more; and
            (2) the dependents of the member who otherwise 
        occupy the unit of military family housing are absent 
        from the unit for more than 30 consecutive days during 
        the period of the assignment of the member.

SEC. 363. EXPANSION OF PAYMENT OF REPLACEMENT VALUE OF PERSONAL 
                    PROPERTY DAMAGED DURING TRANSPORT AT GOVERNMENT 
                    EXPENSE.

    (a) Coverage of Property of Civilian Employees of 
Department of Defense.--Subsection (a) of section 2636a of 
title 10, United States Code, is amended by striking ``of 
baggage and household effects for members of the armed forces 
at Government expense'' and inserting ``at Government expense 
of baggage and household effects for members of the armed 
forces or civilian employees of the Department of Defense (or 
both)''.
    (b) Requirement for Payment and Deduction Upon Failure of 
Carrier To Settle.--Effective March 1, 2008, such section is 
further amended--
            (1) in subsection (a), by striking ``may include'' 
        and inserting ``shall include''; and
            (2) in subsection (b), by striking ``may be 
        deducted'' and inserting ``shall be deducted''.
    (c) Certification on Families First Program.--The Secretary 
of Defense shall submit to the congressional defense committees 
a report containing the certifications of the Secretary with 
respect to the program of the Department of Defense known as 
``Families First'' on the following matters:
            (1) Whether there is an alternative to the system 
        under the program that would provide equal or greater 
        capability at a lower cost.
            (2) Whether the estimates on costs, and the 
        anticipated schedule and performance parameters, for 
        the program and system are reasonable.
            (3) Whether the management structure for the 
        program is adequate to manage and control program 
        costs.
    (d) Comptroller General Reports on Families First 
Program.--
            (1) Review and assessment required.--The 
        Comptroller General of the United States shall conduct 
        a review and assessment of the progress of the 
        Department of Defense in implementing the program of 
        the Department of Defense known as ``Families First''.
            (2) Elements of review and assessment.--In 
        conducting the review and assessment required by 
        paragraph (1), the Comptroller General shall--
                    (A) assess the progress of the Department 
                in achieving the goals of the Families First 
                program, including progress in the development 
                and deployment of the Defense Personal Property 
                System;
                    (B) assess the organization, staffing, 
                resources, and capabilities of the Defense 
                Personal Property System Project Management 
                Office established on April 7, 2006;
                    (C) evaluate the growth in cost of the 
                program since the previous assessment of the 
                program by the Comptroller General, and 
                estimate the current annual cost of the Defense 
                Personal Property System and each component of 
                that system; and
                    (D) assess the feasibility of implementing 
                processes and procedures, pending the 
                satisfactory development of the Defense 
                Personal Property System, which would achieve 
                the goals of the program of providing improved 
                personal property management services to 
                members of the Armed Forces.
            (3) Reports.--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 reports as follows:
                    (A) An interim report on the review and 
                assessment required by paragraph (1) by not 
                later than December 1, 2006.
                    (B) A final report on such review and 
                assessment by not later than June 1, 2007.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
          active duty end strengths for fiscal years 2008 and 2009.

                       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 2007 limitation on number of non-dual status 
          technicians.
Sec. 415. Maximum number of reserve personnel authorized to be on active 
          duty for operational support.

               Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General.--The Armed Forces are authorized strengths 
for active duty personnel as of September 30, 2007, as follows:
            (1) The Army, 512,400.
            (2) The Navy, 340,700.
            (3) The Marine Corps, 180,000.
            (4) The Air Force, 334,200.
    (b) Limitation.--
            (1) Army.--The authorized strength for the Army 
        provided in paragraph (1) of subsection (a) for active 
        duty personnel for fiscal year 2007 is subject to the 
        condition that costs of active duty personnel of the 
        Army for that fiscal year in excess of 482,400 shall be 
        paid out of funds authorized to be appropriated for 
        that fiscal year for a contingent emergency reserve 
        fund or as an emergency supplemental appropriation.
            (2) Marine corps.--The authorized strength for the 
        Marine Corps provided in paragraph (3) of subsection 
        (a) for active duty personnel for fiscal year 2007 is 
        subject to the condition that costs of active duty 
        personnel of the Marine Corps for that fiscal year in 
        excess of 175,000 shall be paid out of funds authorized 
        to be appropriated for that fiscal year for a 
        contingent emergency reserve fund or as an emergency 
        supplemental appropriation.

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

    Section 691(b) of title 10, United States Code, is amended 
by striking paragraphs (1) through (4) and inserting the 
following:
            ``(1) For the Army, 502,400.
            ``(2) For the Navy, 340,700.
            ``(3) For the Marine Corps, 180,000.
            ``(4) For the Air Force, 334,200.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS 
                    ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2008 AND 
                    2009.

    Effective October 1, 2007, the text of section 403 of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108-375; 118 Stat. 1863) is amended to 
read as follows:
    ``(a) Authority.--
            ``(1) Army.--For each of fiscal years 2008 and 
        2009, the Secretary of Defense may, as the Secretary 
        determines necessary for the purposes specified in 
        paragraph (3), establish the active- duty end strength 
        for the Army at a number greater than the number 
        otherwise authorized by law up to the number equal to 
        the fiscal-year 2007 baseline plus 20,000.
            ``(2) Marine corps.--For each of fiscal years 2008 
        and 2009, the Secretary of Defense may, as the 
        Secretary determines necessary for the purposes 
        specified in paragraph (3), establish the active-duty 
        end strength for the Marine Corps at a number greater 
        than the number otherwise authorized by law up to the 
        number equal to the fiscal-year 2007 baseline plus 
        4,000.
            ``(3) Purpose of increases.--The purposes for which 
        increases may be made in Army and Marine Corps active 
        duty end strengths under paragraphs (1) and (2) are--
                    ``(A) to support operational missions; and
                    ``(B) to achieve transformational 
                reorganization objectives, including objectives 
                for increased numbers of combat brigades and 
                battalions, increased unit manning, force 
                stabilization and shaping, and rebalancing of 
                the active and reserve component forces.
            ``(4) Fiscal-year 2007 baseline.--In this 
        subsection, the term `fiscal-year 2007 baseline', with 
        respect to the Army and Marine Corps, means the active-
        duty end strength authorized for those services in 
        section 401 of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007.
            ``(5) Active-duty end strength.--In this 
        subsection, the term `active-duty end strength' means 
        the strength for active-duty personnel of one of the 
        Armed Forces as of the last day of a fiscal year.
    ``(b) Relationship to Presidential Waiver Authority.--
Nothing in this section shall be construed to limit the 
President's authority under section 123a of title 10, United 
States Code, to waive any statutory end strength in a time of 
war or national emergency.
    ``(c) Relationship to Other Variance Authority.--The 
authority under subsection (a) is in addition to the authority 
to vary authorized end strengths that is provided in 
subsections (e) and (f) of section 115 of title 10, United 
States Code.
    ``(d) Budget Treatment.--
            ``(1) Fiscal year 2008 budget.--The budget for the 
        Department of Defense for fiscal year 2008 as submitted 
        to Congress shall comply, with respect to funding, with 
        subsections (c) and (d) of section 691 of title 10, 
        United States Code.
            ``(2) Other increases.--If the Secretary of Defense 
        plans to increase the Army or Marine Corps active duty 
        end strength for a fiscal year under subsection (a), 
        then the budget for the Department of Defense for that 
        fiscal year as submitted to Congress shall include the 
        amounts necessary for funding that active duty end 
        strength in excess of the fiscal year 2007 active duty 
        end strength authorized for that service under section 
        401 of the John Warner National Defense Authorization 
        Act for Fiscal Year 2007.''.

                       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, 2007, as follows:
            (1) The Army National Guard of the United States, 
        350,000.
            (2) The Army Reserve, 200,000.
            (3) The Navy Reserve, 71,300.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 
        107,000.
            (6) The Air Force Reserve, 74,900.
            (7) The Coast Guard Reserve, 10,000.
    (b) Adjustments.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve 
component shall be proportionately reduced by--
            (1) the total authorized strength of units 
        organized to serve as units of the Selected Reserve of 
        such component which are on active duty (other than for 
        training) at the end of the fiscal year; and
            (2) the total number of individual members not in 
        units organized to serve as units of the Selected 
        Reserve of such component who are on active duty (other 
        than for training or for unsatisfactory participation 
        in training) without their consent at the end of the 
        fiscal year.

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

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

    Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 2007, the following number of Reserves to be 
serving on full-time active duty or full-time duty, in the case 
of members of the National Guard, for the purpose of 
organizing, administering, recruiting, instructing, or training 
the reserve components:
            (1) The Army National Guard of the United States, 
        27,441.
            (2) The Army Reserve, 15,416.
            (3) The Navy Reserve, 12,564.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 
        13,291.
            (6) The Air Force Reserve, 2,707.

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 2007 for the reserve components 
of the Army and the Air Force (notwithstanding section 129 of 
title 10, United States Code) shall be the following:
            (1) For the Army Reserve, 7,912.
            (2) For the Army National Guard of the United 
        States, 26,050.
            (3) For the Air Force Reserve, 10,124.
            (4) For the Air National Guard of the United 
        States, 23,255.

SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS 
                    TECHNICIANS.

    (a) Limitations.--
            (1) National guard.--Within the limitation provided 
        in section 10217(c)(2) of title 10, United States Code, 
        the number of non-dual status technicians employed by 
        the National Guard as of September 30, 2007, may not 
        exceed the following:
                    (A) For the Army National Guard of the 
                United States, 1,600
                    (B) For the Air National Guard of the 
                United States, 350.
            (2) Army reserve.--The number of non-dual status 
        technicians employed by the Army Reserve as of 
        September 30, 2007, may not exceed 595.
            (3) Air force reserve.--The number of non-dual 
        status technicians employed by the Air Force Reserve as 
        of September 30, 2007, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, 
the term ``non-dual status technician'' has the meaning given 
that term in section 10217(a) of title 10, United States Code.

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

    During fiscal year 2007, the maximum number of members of 
the reserve components of the Armed Forces who may be serving 
at any time on full-time operational support duty under section 
115(b) of title 10, United States Code, is the following:
            (1) The Army National Guard of the United States, 
        17,000.
            (2) The Army Reserve, 13,000.
            (3) The Navy Reserve, 6,200.
            (4) The Marine Corps Reserve, 3,000.
            (5) The Air National Guard of the United States, 
        16,000.
            (6) The Air Force Reserve, 14,000.

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal year 
2007 a total of $110,098,628,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 2007.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal 
year 2007 from the Armed Forces Retirement Home Trust Fund the 
sum of $54,846,000 for the operation of the Armed Forces 
Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

               Part I--Officer Personnel Policy Generally

Sec. 501. Military status of officers serving in certain intelligence 
          community positions.
Sec. 502. Extension of age for mandatory retirement for active-duty 
          general and flag officers.
Sec. 503. Increased mandatory retirement ages for reserve officers.
Sec. 504. Standardization of grade of senior dental officer of the Air 
          Force with that of senior dental officer of the Army.
Sec. 505. Management of chief warrant officers.
Sec. 506. Extension of temporary reduction of time-in-grade requirement 
          for eligibility for promotion for certain active-duty list 
          officers in grades of first lieutenant and lieutenant (junior 
          grade).
Sec. 507. Grade and exclusion from active-duty general and flag officer 
          distribution and strength limitations of officer serving as 
          Attending Physician to the Congress.
Sec. 508. Modification of qualifications for leadership of the Naval 
          Postgraduate School.

                    Part II--Officer Promotion Policy

Sec. 511. Revisions to authorities relating to authorized delays of 
          officer promotions.
Sec. 512. Consideration of adverse information by selection boards in 
          recommendations on officers to be promoted.
Sec. 513. Expanded authority for removal from reports of selection 
          boards of officers recommended for promotion to grades below 
          general and flag grades.
Sec. 514. Special selection board authorities.
Sec. 515. Removal from promotion list of officers not promoted within 18 
          months of approval of list by the President.

             Part III--Joint Officer Management Requirements

Sec. 516. Modification and enhancement of general authorities on 
          management of officers who are joint qualified.
Sec. 517. Modification of promotion policy objectives for joint 
          officers.
Sec. 518. Applicability of joint duty assignment requirements limited to 
          graduates of National Defense University schools.
Sec. 519. Modification of certain definitions relating to jointness.

                  Subtitle B--Reserve Component Matters

                  Part I--Reserve Component Management

Sec. 521. Recognition of former Representative G. V. `Sonny' Montgomery 
          for his 30 years of service in the House of Representatives.
Sec. 522. Revisions to reserve call-up authority.
Sec. 523. Military retirement credit for certain service by National 
          Guard members performed while in a State duty status 
          immediately after the terrorist attacks of September 11, 2001.

         Part II--Authorities Relating to Guard and Reserve Duty

Sec. 524. Title 10 definition of Active Guard and Reserve duty.
Sec. 525. Authority for Active Guard and Reserve duties to include 
          support of operational missions assigned to the reserve 
          components and instruction and training of active-duty 
          personnel.
Sec. 526. Governor's authority to order members to Active Guard and 
          Reserve duty.
Sec. 527. Expansion of operations of civil support teams.
Sec. 528. Modification of authorities relating to the Commission on the 
          National Guard and Reserves.
Sec. 529. Additional matters to be reviewed by Commission on the 
          National Guard and Reserves.

                   Subtitle C--Education and Training

                        Part I--Service Academies

Sec. 531. Expansion of service academy exchange programs with foreign 
          military academies.
Sec. 532. Revision and clarification of requirements with respect to 
          surveys and reports concerning sexual harassment and sexual 
          violence at the service academies.
Sec. 533. Department of Defense policy on service academy and ROTC 
          graduates seeking to participate in professional sports before 
          completion of their active-duty service obligations.

         Part II--Scholarship and Financial Assistance Programs

Sec. 535. Authority to permit members who participate in the guaranteed 
          reserve forces duty scholarship program to participate in the 
          health professions scholarship program and serve on active 
          duty.
Sec. 536. Detail of commissioned officers as students at medical 
          schools.
Sec. 537. Increase in maximum amount of repayment under education loan 
          repayment for officers in specified health professions.
Sec. 538. Health Professions Scholarship and Financial Assistance 
          Program for Active Service.

                      Part III--Junior ROTC Program

Sec. 539. Junior Reserve Officers' Training Corps instructor 
          qualifications.
Sec. 540. Expansion of members eligible to be employed to provide Junior 
          Reserve Officers' Training Corps instruction.
Sec. 541. Expansion of Junior Reserve Officers' Training Corps program.
Sec. 542. Review of legal status of Junior ROTC program.

             Part IV--Other Education and Training Programs

Sec. 543. Expanded eligibility for enlisted members for instruction at 
          Naval Postgraduate School.

                 Subtitle D--General Service Authorities

Sec. 546. Test of utility of test preparation guides and education 
          programs in enhancing recruit candidate performance on the 
          Armed Services Vocational Aptitude Battery (ASVAB) and Armed 
          Forces Qualification Test (AFQT).
Sec. 547. Clarification of nondisclosure requirements applicable to 
          certain selection board proceedings.
Sec. 548. Report on extent of provision of timely notice of long-term 
          deployments.

                  Subtitle E--Military Justice Matters

Sec. 551. Applicability of Uniform Code of Military Justice to members 
          of the Armed Forces ordered to duty overseas in inactive duty 
          for training status.
Sec. 552. Clarification of application of Uniform Code of Military 
          Justice during a time of war.

                   Subtitle F--Decorations and Awards

Sec. 555. Authority for presentation of Medal of Honor Flag to living 
          Medal of Honor recipients and to living primary next-of-kin of 
          deceased Medal of Honor recipients.
Sec. 556. Review of eligibility of prisoners of war for award of the 
          Purple Heart.
Sec. 557. Report on Department of Defense process for awarding 
          decorations.

               Subtitle G--Matters Relating to Casualties

Sec. 561. Authority for retention after separation from service of 
          assistive technology and devices provided while on active 
          duty.
Sec. 562. Transportation of remains of casualties dying in a theater of 
          combat operations.
Sec. 563.  Annual budget display of funds for POW/MIA activities of 
          Department of Defense.
Sec. 564. Military Severely Injured Center.
Sec. 565. Comprehensive review on procedures of the Department of 
          Defense on mortuary affairs.
Sec. 566. Additional elements of policy on casualty assistance to 
          survivors of military decedents.
Sec. 567.  Requirement for deploying military medical personnel to be 
          trained in preservation of remains under combat or combat-
          related conditions.

     Subtitle H--Impact Aid and Defense Dependents Education System

Sec. 571. Enrollment in defense dependents' education system of 
          dependents of foreign military members assigned to Supreme 
          Headquarters Allied Powers, Europe.
Sec. 572. Continuation of authority to assist local educational agencies 
          that benefit dependents of members of the Armed Forces and 
          Department of Defense civilian employees.
Sec. 573. Impact aid for children with severe disabilities.
Sec. 574. Plan and authority to assist local educational agencies 
          experiencing growth in enrollment due to force structure 
          changes, relocation of military units, or base closures and 
          realignments.
Sec. 575. Pilot program on parent education to promote early childhood 
          education for dependent children affected by military 
          deployment or relocation of military units.

                Subtitle I--Armed Forces Retirement Home

Sec. 578. Report on leadership and management of the Armed Forces 
          Retirement Home.
Sec. 579. Report on Local Boards of Trustees of the Armed Forces 
          Retirement Home.

                           Subtitle J--Reports

Sec. 581. Report on personnel requirements for airborne assets 
          identified as Low-Density, High-Demand Airborne Assets.
Sec. 582. Report on feasibility of establishment of Military Entrance 
          Processing Command station on Guam.
Sec. 583. Inclusion in annual Department of Defense report on sexual 
          assaults of information on results of disciplinary actions.
Sec. 584. Report on provision of electronic copy of military records on 
          discharge or release of members from the Armed Forces.
Sec. 585. Report on omission of social security account numbers from 
          military identification cards.
Sec. 586. Report on maintenance and protection of data held by the 
          Secretary of Defense as part of the Department of Defense 
          Joint Advertising, Market Research and Studies (JAMRS) 
          program.
Sec. 587. Comptroller General report on military conscientious 
          objectors.

                        Subtitle K--Other Matters

Sec. 591. Modification in Department of Defense contributions to 
          Military Retirement Fund.
Sec. 592. Revision in Government contributions to Medicare-Eligible 
          Retiree Health Care Fund.
Sec. 593. Dental Corps of the Navy Bureau of Medicine and Surgery.
Sec. 594. Permanent authority for presentation of recognition items for 
          recruitment and retention purposes.
Sec. 595. Persons authorized to administer enlistment and appointment 
          oaths.
Sec. 596. Military voting matters.
Sec. 597. Physical evaluation boards.
Sec. 598. Military ID cards for retiree dependents who are permanently 
          disabled.
Sec. 599. United States Marine Band and United States Marine Drum and 
          Bugle Corps.

                  Subtitle A--Officer Personnel Policy

               PART I--OFFICER PERSONNEL POLICY GENERALLY

SEC. 501. MILITARY STATUS OF OFFICERS SERVING IN CERTAIN INTELLIGENCE 
                    COMMUNITY POSITIONS.

    (a) Clarification of Military Status.--Section 528 of title 
10, United States Code, is amended--
            (1) by striking subsections (a) and (b) and 
        inserting the following:
    ``(a) Military Status.--An officer of the armed forces, 
while serving in a position covered by this section--
            ``(1) shall not be subject to supervision or 
        control by the Secretary of Defense or any other 
        officer or employee of the Department of Defense, 
        except as directed by the Secretary of Defense 
        concerning reassignment from such position; and
            ``(2) may not exercise, by reason of the officer's 
        status as an officer, any supervision or control with 
        respect to any of the military or civilian personnel of 
        the Department of Defense except as otherwise 
        authorized by law.
    ``(b) Director and Deputy Director of CIA.--When the 
position of Director or Deputy Director of the Central 
Intelligence Agency is held by an officer of the armed forces, 
the officer serving in that position, while so serving, shall 
be excluded from the limitations in sections 525 and 526 of 
this title. However, if both such positions are held by an 
officer of the armed forces, only one such officer may be 
excluded from those limitation while so serving.''; and
            (2) by adding at the end the following new 
        subsections:
    ``(e) Effect of Appointment.--Except as provided in 
subsection (a), the appointment or assignment of an officer of 
the armed forces to a position covered by this section shall 
not affect--
            ``(1) the status, position, rank, or grade of such 
        officer in the armed forces; or
            ``(2) any emolument, perquisite, right, privilege, 
        or benefit incident to or arising out of such status, 
        position, rank, or grade.
    ``(f) Military Pay and Allowances.--(1) An officer of the 
armed forces on active duty who is appointed or assigned to a 
position covered by this section shall, while serving in such 
position and while remaining on active duty, continue to 
receive military pay and allowances and shall not receive the 
pay prescribed for such position.
    ``(2) Funds from which pay and allowances under paragraph 
(1) are paid to an officer while so serving shall be reimbursed 
as follows:
            ``(A) For an officer serving in a position within 
        the Central Intelligence Agency, such reimbursement 
        shall be made from funds available to the Director of 
        the Central Intelligence Agency.
            ``(B) For an officer serving in a position within 
        the Office of the Director of National Intelligence, 
        such reimbursement shall be made from funds available 
        to the Director of National Intelligence.
    ``(g) Covered Positions.--The positions covered by this 
section are the positions specified in subsections (b) and (c) 
and the positions designated under subsection (d).''.
    (b) Clerical Amendments.--
            (1) The heading of such section is amended to read 
        as follows:

``Sec. 528. Officers serving in certain intelligence positions: 
                    military status; exclusion from distribution and 
                    strength limitations; pay and allowances''.

            (2) The item relating to section 528 in the table 
        of sections at the beginning of chapter 32 of such 
        title is amended to read as follows:

``528. Officers serving in certain intelligence positions: military 
          status; exclusion from distribution and strength limitations; 
          pay and allowances.''.

SEC. 502. EXTENSION OF AGE FOR MANDATORY RETIREMENT FOR ACTIVE-DUTY 
                    GENERAL AND FLAG OFFICERS.

    (a) Revised Age Limits for General and Flag Officers.--
Chapter 63 of title 10, United States Code, is amended by 
inserting after section 1252 the following new section:

``Sec. 1253. Age 64: regular commissioned officers in general and flag 
                    officer grades; exception

    ``(a) General Rule.--Unless retired or separated earlier, 
each regular commissioned officer of the Army, Navy, Air Force, 
or Marine Corps serving in a general or flag officer grade 
shall be retired on the first day of the month following the 
month in which the officer becomes 64 years of age.
    ``(b) Exception for Officers Serving in O-9 and O-10 
Positions.--In the case of an officer serving in a position 
that carries a grade above major general or rear admiral, the 
retirement under subsection (a) of that officer may be 
deferred--
            ``(1) by the President, but such a deferment may 
        not extend beyond the first day of the month following 
        the month in which the officer becomes 68 years of age; 
        or
            ``(2) by the Secretary of Defense, but such a 
        deferment may not extend beyond the first day of the 
        month following the month in which the officer becomes 
        66 years of age.''.
    (b) Restatement and Modification of Current Age Limits for 
Other Officers.--Section 1251 of such title is amended to read 
as follows:

``Sec. 1251. Age 62: regular commissioned officers in grades below 
                    general and flag officer grades; exceptions

    ``(a) General Rule.--Unless retired or separated earlier, 
each regular commissioned officer of the Army, Navy, Air Force, 
or Marine Corps (other than an officer covered by section 1252 
of this title or a commissioned warrant officer) serving in a 
grade below brigadier general or rear admiral (lower half), in 
the case of an officer in the Navy, shall be retired on the 
first day of the month following the month in which the officer 
becomes 62 years of age.
    ``(b) Deferred Retirement of Health Professions Officers.--
(1) The Secretary of the military department concerned may, 
subject to subsection (d), defer the retirement under 
subsection (a) of a health professions officer if during the 
period of the deferment the officer will be performing duties 
consisting primarily of providing patient care or performing 
other clinical duties.
    ``(2) For purposes of this subsection, a health professions 
officer is--
            ``(A) a medical officer;
            ``(B) a dental officer; or
            ``(C) an officer in the Army Nurse Corps, an 
        officer in the Navy Nurse Corps, or an officer in the 
        Air Force designated as a nurse.
    ``(c) Deferred Retirement of Chaplains.--The Secretary of 
the military department concerned may, subject to subsection 
(d), defer the retirement under subsection (a) of an officer 
who is appointed or designated as a chaplain if the Secretary 
determines that such deferral is in the best interest of the 
military department concerned.
    ``(d) Limitation on Deferment of Retirements.--(1) Except 
as provided in paragraph (2), a deferment under subsection (b) 
or (c) may not extend beyond the first day of the month 
following the month in which the officer becomes 68 years of 
age.
    ``(2) The Secretary of the military department concerned 
may extend a deferment under subsection (b) or (c) beyond the 
day referred to in paragraph (1) if the Secretary determines 
that extension of the deferment is necessary for the needs of 
the military department concerned. Such an extension shall be 
made on a case-by-case basis and shall be for such period as 
the Secretary considers appropriate.''.
    (c) Clerical Amendments.--The table of sections at the 
beginning of chapter 63 of such title is amended--
            (1) by striking the item relating to section 1251 
        and inserting the following new item:

``1251. Age 62: regular commissioned officers in grades below general 
          and flag officer grades; exceptions.''; and

            (2) by inserting after the item relating to section 
        1252 the following new item:

``1253. Age 64: regular commissioned officers in general and flag 
          officer grades; exception.''.

    (d) Conforming Amendments.--Chapter 71 of such title is 
amended--
            (1) in the table in section 1401(a), by inserting 
        at the bottom of the column under the heading ``For 
        sections'', in the entry for Formula Number 5, the 
        following: ``1253''; and
            (2) in the table in section 1406(b)(1), by 
        inserting at the bottom of the first column the 
        following: ``1253''.

SEC. 503. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE OFFICERS.

    (a) Major Generals and Rear Admirals.--
            (1) Increased age.--Section 14511 of title 10, 
        United States Code, is amended by striking ``62 years'' 
        and inserting ``64 years''.
            (2) Conforming amendment.--The heading of such 
        section is amended to read as follows:

``Sec. 14511. Separation at age 64: major generals and rear admirals''.

    (b) Brigadier Generals and Rear Admirals (lower Half).--
            (1) Increased age.--Section 14510 of such title is 
        amended by striking ``60 years'' and inserting ``62 
        years''.
            (2) Conforming amendment.--The heading of such 
        section is amended to read as follows:

``Sec. 14510. Separation at age 62: brigadier generals and rear 
                    admirals (lower half)''.

    (c) Officers Below Brigadier General or Rear Admiral (Lower 
Half)--
            (1) Increased age.--Section 14509 of such title is 
        amended by striking ``60 years'' and inserting ``62 
        years''.
            (2) Conforming amendment.--The heading of such 
        section is amended to read as follows:

``Sec. 14509. Separation at age 62: reserve officers in grades below 
                    brigadier general or rear admiral (lower half)''.

    (d) Certain Other Officers.--
            (1) Increased age.--Section 14512 of such title is 
        amended by striking ``64 years'' both places it appears 
        and inserting ``66 years''.
            (2) Conforming amendment.--The heading of such 
        section is amended to read as follows:

``Sec. 14512. Separation at age 66: officers holding certain offices''.

    (e) Conforming Amendments.--Section 14508 of such title is 
amended--
            (1) in subsection (c), by striking ``60 years'' and 
        inserting ``62 years''; and
            (2) in subsection (d), by striking ``62 years'' and 
        inserting ``64 years''.
    (f) Clerical Amendment.--The table of sections at the 
beginning of chapter 1407 of such title is amended by striking 
the items relating to sections 14509, 14510, 14511, and 14512 
and inserting the following new items:

``14509. Separation at age 62: reserve officers in grades below 
          brigadier general or rear admiral (lower half).
``14510. Separation at age 62: brigadier generals and rear admirals 
          (lower half).
``14511. Separation at age 64: major generals and rear admirals.
``14512. Separation at age 66: officers holding certain offices.''.

SEC. 504. STANDARDIZATION OF GRADE OF SENIOR DENTAL OFFICER OF THE AIR 
                    FORCE WITH THAT OF SENIOR DENTAL OFFICER OF THE 
                    ARMY.

    (a) Air Force Assistant Surgeon General for Dental 
Services.--Section 8081 of title 10, United States Code, is 
amended by striking ``brigadier general'' in the second 
sentence and inserting ``major general''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on the date of the occurrence of the next 
vacancy in the position of Assistant Surgeon General for Dental 
Services in the Air Force that occurs after the date of the 
enactment of this Act or, if earlier, on the date of the 
appointment to the grade of major general of the officer who is 
the incumbent in that position on the date of the enactment of 
the Act.

SEC. 505. MANAGEMENT OF CHIEF WARRANT OFFICERS.

    (a) Retention of Chief Warrant Officers, w-4, Who Have 
Twice Failed of Selection for Promotion.--Paragraph (1) of 
section 580(e) of title 10, United States Code, is amended by 
striking ``continued on active duty if'' and all that follows 
and inserting ``continued on active duty if--
            ``(A) in the case of a warrant officer in the grade 
        of chief warrant officer, W-2, or chief warrant 
        officer, W-3, the warrant officer is selected for 
        continuation on active duty by a selection board 
        convened under section 573(c) of this title; and
            ``(B) in the case of a warrant officer in the grade 
        of chief warrant officer, W-4, the warrant officer is 
        selected for continuation on active duty by the 
        Secretary concerned under such procedures as the 
        Secretary may prescribe.''.
    (b) Eligibility for Consideration for Promotion of Warrant 
Officers Continued on Active Duty.--Paragraph (2) of such 
section is amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(B) A warrant officer in the grade of chief warrant 
officer, W-4, who is retained on active duty pursuant to 
procedures prescribed under paragraph (1)(B) is eligible for 
further consideration for promotion while remaining on active 
duty.''.
    (c) Mandatory Retirement for Length of Service.--Section 
1305(a) of such title is amended--
            (1) by striking ``(1) Except as'' and all the 
        follows through ``W-5)'' and inserting ``A regular 
        warrant officer'';
            (2) by inserting ``as a warrant officer'' after 
        ``years of active service'';
            (3) by inserting ``the date on which'' after ``60 
        days after''; and
            (4) by striking paragraph (2).

SEC. 506. EXTENSION OF TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT 
                    FOR ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-
                    DUTY LIST OFFICERS IN GRADES OF FIRST LIEUTENANT 
                    AND LIEUTENANT (JUNIOR GRADE).

    Section 619(a)(1)(B) of title 10, United States Code, is 
amended by striking ``October 1, 2005'' and inserting ``October 
1, 2008''.

SEC. 507. GRADE AND EXCLUSION FROM ACTIVE-DUTY GENERAL AND FLAG OFFICER 
                    DISTRIBUTION AND STRENGTH LIMITATIONS OF OFFICER 
                    SERVING AS ATTENDING PHYSICIAN TO THE CONGRESS.

    (a) Grade.--
            (1) Regular officer.--(A) Chapter 41 of title 10, 
        United States Code, is amended by adding at the end the 
        following new section:

``Sec. 722. Attending Physician to the Congress: grade

    ``A general officer serving as Attending Physician to the 
Congress, while so serving, holds the grade of major general. A 
flag officer serving as Attending Physician to the Congress, 
while so serving, holds the grade of rear admiral.''.
            (B) The table of sections at the beginning of such 
        chapter is amended by adding at the end the following 
        new item:

``722. Attending Physician to the Congress: grade.''.

            (2) Reserve officer.--(A) Section 12210 of such 
        title is amended by striking ``who holds'' and all that 
        follows and inserting ``holds the reserve grade of 
        major general or rear admiral, as appropriate.''.
            (B) The heading of such section is amended to read 
        as follows:

``Sec. 12210. Attending Physician to the Congress: reserve grade''.

            (C) The table of sections at the beginning of 
        chapter 1205 of such title is amended by striking the 
        item relating to section 12210 and inserting the 
        following new item:

``12210. Attending Physician to the Congress: reserve grade.''.

    (b) Distribution Limitations.--Section 525 of such title is 
amended by adding at the end the following new subsection:
    ``(f) An officer while serving as Attending Physician to 
the Congress is in addition to the number that would otherwise 
be permitted for that officer's armed force for officers 
serving on active duty in grades above brigadier general or 
rear admiral (lower half) under subsection (a).''.
    (c) Active-Duty Strength Limitations.--Section 526 of such 
title is amended by adding at the end the following new 
subsection:
    ``(f) Exclusion of Attending Physician to the Congress.--
The limitations of this section do not apply to the general or 
flag officer who is serving as Attending Physician to the 
Congress.''.

SEC. 508. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF THE NAVAL 
                    POSTGRADUATE SCHOOL.

    Subsection (a) of section 7042 of title 10, United States 
Code, is amended to read as follows:
    ``(a)(1) The President of the Naval Postgraduate School 
shall be one of the following:
            ``(A) An active-duty officer of the Navy or Marine 
        Corps in a grade not below the grade of captain, or 
        colonel, respectively, who is assigned or detailed to 
        such position.
            ``(B) A civilian individual, including an 
        individual who was retired from the Navy or Marine 
        Corps in a grade not below captain, or colonel, 
        respectively, who has the qualifications appropriate to 
        the position of President and is selected by the 
        Secretary of the Navy as the best qualified from among 
        candidates for the position in accordance with--
                    ``(i) the criteria specified in paragraph 
                (4);
                    ``(ii) a process determined by the 
                Secretary; and
                    ``(iii) other factors the Secretary 
                considers essential.
    ``(2) Before making an assignment, detail, or selection of 
an individual for the position of President of the Naval 
Postgraduate School, the Secretary shall--
            ``(A) consult with the Board of Advisors for the 
        Naval Postgraduate School;
            ``(B) consider any recommendation of the leadership 
        and faculty of the Naval Postgraduate School regarding 
        the assignment or selection to that position; and
            ``(C) consider the recommendations of the Chief of 
        Naval Operations and the Commandant of the Marine 
        Corps.
    ``(3) An individual selected for the position of President 
of the Naval Postgraduate School under paragraph (1)(B) shall 
serve in that position for a term of not more than five years 
and may be continued in that position for an additional term of 
up to five years.
    ``(4) The qualifications appropriate for selection of an 
individual for detail or assignment to the position of 
President of the Naval Postgraduate School include the 
following:
            ``(A) An academic degree that is either--
                    ``(i) a doctorate degree in a field of 
                study relevant to the mission and function of 
                the Naval Postgraduate School; or
                    ``(ii) a master's degree in a field of 
                study relevant to the mission and function of 
                the Naval Postgraduate School, but only if--
                            ``(I) the individual is an active-
                        duty or retired officer of the Navy or 
                        Marine Corps in a grade not below the 
                        grade of captain or colonel, 
                        respectively; and
                            ``(II) at the time of the selection 
                        of that individual as President, the 
                        individual permanently appointed to the 
                        position of Provost and Academic Dean 
                        has a doctorate degree in such a field 
                        of study.
            ``(B) A comprehensive understanding of the 
        Department of the Navy, the Department of Defense, and 
        joint and combined operations.
            ``(C) Leadership experience at the senior level in 
        a large and diverse organization.
            ``(D) Demonstrated ability to foster and encourage 
        a program of research in order to sustain academic 
        excellence.
            ``(E) Other qualifications, as determined by the 
        Secretary of the Navy.''.

                   PART II--OFFICER PROMOTION POLICY

SEC. 511. REVISIONS TO AUTHORITIES RELATING TO AUTHORIZED DELAYS OF 
                    OFFICER PROMOTIONS.

    (a) Officers on Active-Duty List.--
            (1) Secretary of defense regulations for delays of 
        appointment upon promotion.--Paragraphs (1) and (2) of 
        subsection (d) of section 624 of title 10, United 
        States Code, are amended by striking ``prescribed by 
        the Secretary concerned'' in and inserting ``prescribed 
        by the Secretary of Defense''.
            (2) Additional basis for delay of appointment by 
        reason of investigations and proceedings.--Subsection 
        (d)(1) of such section is further amended--
                    (A) by striking ``or'' at the end of 
                subparagraph (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; or'';
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
            ``(E) substantiated adverse information about the 
        officer that is material to the decision to appoint the 
        officer is under review by the Secretary of Defense or 
        the Secretary concerned.''; and
                    (D) in the flush matter following 
                subparagraph (E), as inserted by subparagraph 
                (C) of this paragraph--
                            (i) by striking ``or'' after 
                        ``chapter 60 of this title''; and
                            (ii) by inserting after ``brought 
                        against him,'' the following: ``or if, 
                        after a review of substantiated adverse 
                        information about the officer regarding 
                        the requirement for exemplary conduct 
                        set forth in section 3583, 5947, or 
                        8583 of this title, as applicable, the 
                        officer is determined to be among the 
                        officers best qualified for 
                        promotion,''.
            (3) Additional basis for delay in appointment for 
        lack of qualifications.--Subsection (d)(2) of such 
        section is further amended--
                    (A) in the first sentence, by inserting 
                before ``is mentally, physically,'' the 
                following: ``has not met the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, 
                or''; and
                    (B) in the second sentence, by striking 
                ``If the Secretary concerned later determines 
                that the officer is qualified for promotion to 
                such grade'' and inserting ``If it is later 
                determined by a civilian official of the 
                Department of Defense (not below the level of 
                Secretary of a military department) that the 
                officer is qualified for promotion to such 
                grade and, after a review of adverse 
                information regarding the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, the 
                officer is determined to be among the officers 
                best qualified for promotion to such grade''.
    (b) Officers on Reserve Active-Status List.--
            (1) Secretary of defense regulations for delays of 
        appointment upon promotion.--Subsections (a)(1) and (b) 
        of section 14311 of such title are amended by striking 
        ``Secretary of the military department concerned'' and 
        inserting ``Secretary of Defense''.
            (2) Additional basis for original delay of 
        appointment by reason of investigations and 
        proceedings.--Section 14311(a) of such title is further 
        amended--
                    (A) in paragraph (1), by adding at the end 
                the following new subparagraph:
            ``(E) Substantiated adverse information about the 
        officer that is material to the decision to appoint the 
        officer is under review by the Secretary of Defense or 
        the Secretary concerned.''; and
                    (B) in paragraph (2)--
                            (i) by striking ``or'' after ``show 
                        cause for retention,''; and
                            (ii) by inserting after ``of the 
                        charges,'' the following: ``or if, 
                        after a review of substantiated adverse 
                        information about the officer regarding 
                        the requirement for exemplary conduct 
                        set forth in section 3583, 5947, or 
                        8583 of this title, as applicable, the 
                        officer is determined to be among the 
                        officers best qualified for 
                        promotion,''.
            (3) Additional basis for delay in appointment for 
        lack of qualifications.--Section 14311(b) of such 
        section is further amended--
                    (A) in the first sentence, by inserting 
                before ``is mentally, physically,'' the 
                following: ``has not met the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, 
                or''; and
                    (B) in the second sentence, by striking 
                ``If the Secretary concerned later determines 
                that the officer is qualified for promotion to 
                the higher grade'' and inserting ``If it is 
                later determined by a civilian official of the 
                Department of Defense (not below the level of 
                Secretary of a military department) that the 
                officer is qualified for promotion to the 
                higher grade and, after a review of adverse 
                information regarding the requirement for 
                exemplary conduct set forth in section 3583, 
                5947, or 8583 of this title, as applicable, the 
                officer is determined to be among the officers 
                best qualified for promotion to the higher 
                grade''.
    (c) Deadline for Uniform Regulations on Delay of 
Promotions.--
            (1) Deadline.--The Secretary of Defense shall 
        prescribe the regulations required by section 624(d) of 
        title 10, United States Code (as amended by subsection 
        (a)(1) of this section), and the regulations required 
        by section 14311 of such title (as amended by 
        subsection (b)(1) of this section) not later than March 
        1, 2008.
            (2) Savings clause for existing regulations.--Until 
        the Secretary of Defense prescribes regulations 
        pursuant to paragraph (1), regulations prescribed by 
        the Secretaries of the military departments under the 
        sections referred to in paragraph (1) shall remain in 
        effect.
    (d) Technical Amendments To Clarify Date of Establishment 
of Promotion Lists.--
            (1) Promotion lists for active-duty list 
        officers.--Section 624(a)(1) of title 10, United States 
        Code, is amended by adding at the end the following new 
        sentence: ``A promotion list is considered to be 
        established under this section as of the date of the 
        approval of the report of the selection board under the 
        preceding sentence.''.
            (2) Promotion lists for reserve active-status list 
        officers.--Section 14308(a) of title 10, United States 
        Code, is amended by adding at the end the following new 
        sentence: ``A promotion list is considered to be 
        established under this section as of the date of the 
        approval of the report of the selection board under the 
        preceding sentence.''.
    (e) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act and 
shall apply with respect to officers on promotion lists 
established on or after the date of the enactment of this Act.

SEC. 512. CONSIDERATION OF ADVERSE INFORMATION BY SELECTION BOARDS IN 
                    RECOMMENDATIONS ON OFFICERS TO BE PROMOTED.

    (a) Officers on Active-Duty List.--Section 616(c) of title 
10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph 
        (1);
            (2) by striking the period at the end in paragraph 
        (2) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(3) a majority of the members of the board, after 
        consideration by all members of the board of any 
        adverse information about the officer that is provided 
        to the board under section 615 of this title, finds 
        that the officer is among the officers best qualified 
        for promotion to meet the needs of the armed force 
        concerned consistent with the requirement of exemplary 
        conduct set forth in section 3583, 5947, or 8583 of 
        this title, as applicable.''.
    (b) Officers on Reserve-Active Status List.--Section 
14108(b) of such title is amended--
            (1) in the heading, by striking ``Majority 
        Required.--'' and inserting ``Actions Required.--'';
            (2) by striking ``and'' at the end of paragraph 
        (1);
            (3) by striking the period at the end in paragraph 
        (2) and inserting ``; and''; and
            (4) by adding at the end the following new 
        paragraph:
            ``(3) a majority of the members of the board, after 
        consideration by all members of the board of any 
        adverse information about the officer that is provided 
        to the board under section 14107 of this title, finds 
        that the officer is among the officers best qualified 
        for promotion to meet the needs of the armed force 
        concerned consistent with the requirement of exemplary 
        conduct set forth in section 3583, 5947, or 8583 of 
        this title, as applicable.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act and 
shall apply with respect to selection boards convened on or 
after that date.

SEC. 513. EXPANDED AUTHORITY FOR REMOVAL FROM REPORTS OF SELECTION 
                    BOARDS OF OFFICERS RECOMMENDED FOR PROMOTION TO 
                    GRADES BELOW GENERAL AND FLAG GRADES.

    (a) Officers on Active-Duty List.--Section 618(d) of title 
10, United States Code, is amended--
            (1) by striking ``The name'' and inserting ``(1) 
        Except as provided in paragraph (2), the name''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) In the case of an officer recommended by a selection 
board for promotion to a grade below brigadier general or rear 
admiral (lower half), the name of the officer may also be 
removed from the report of the selection board by the Secretary 
of Defense or the Deputy Secretary of Defense.''.
    (b) Officers on Reserve-Active Status List.--Section 
14111(b) of such title is amended--
            (1) by striking ``The name'' and inserting ``(1) 
        Except as provided in paragraph (2), the name''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) In the case of an officer recommended by a selection 
board for promotion to a grade below brigadier general or rear 
admiral (lower half), the name of the officer may also be 
removed from the report of the selection board by the Secretary 
of Defense or the Deputy Secretary of Defense.''.
    (c) Effective Date.--The amendments made by this section 
shall apply with respect to selection boards convened on or 
after the date of the enactment of this Act.

SEC. 514. SPECIAL SELECTION BOARD AUTHORITIES.

    (a) Officers on Active-Duty List.--
            (1) Boards for administrative error available only 
        to officers in or above promotion zone.--Subsection 
        (a)(1) of section 628 of title 10, United States Code, 
        is amended by inserting ``from in or above the 
        promotion zone'' after ``for selection for promotion''.
            (2) Actions treatable as material unfairness.--
        Subsection (b)(1)(A) of such section is amended by 
        inserting ``in a matter material to the decision of the 
        board'' after ``contrary to law''.
    (b) Officers on Reserve Active-Status List.--Section 
14502(b)(1)(A) of such title is amended by inserting ``in a 
matter material to the decision of the board'' after ``contrary 
to law''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on March 1, 2007, and shall apply with 
respect to selection boards convened on or after that date.

SEC. 515. REMOVAL FROM PROMOTION LIST OF OFFICERS NOT PROMOTED WITHIN 
                    18 MONTHS OF APPROVAL OF LIST BY THE PRESIDENT.

    (a) Officers on Active-Duty Lists.--
            (1) Clarification of removal due to senate not 
        giving advice and consent.--Subsection (b) of section 
        629 of title 10, United States Code, is amended--
                    (A) by inserting ``Removal Due to Senate 
                Not Giving Advice and Consent.--'' after 
                ``(b)'' ; and
                    (B) by inserting ``to a grade for which 
                appointment is required by section 624(c) of 
                this title to be made by and with the advice 
                and consent of the Senate'' after ``the 
                President''.
            (2) Removal after 18 months.--Such section is 
        further amended--
                    (A) by redesignating subsection (c) as 
                subsection (d); and
                    (B) by inserting after subsection (b) the 
                following new subsection (c):
    ``(c) Removal After 18 Months.--(1) If an officer whose 
name is on a list of officers approved for promotion under 
section 624(a) of this title to a grade for which appointment 
is required by section 624(c) of this title to be made by and 
with the advice and consent of the Senate is not appointed to 
that grade under such section during the officer's promotion 
eligibility period, the officer's name shall be removed from 
the list unless as of the end of such period the Senate has 
given its advice and consent to the appointment.
    ``(2) Before the end of the promotion eligibility period 
with respect to an officer under paragraph (1), the President 
may extend that period for purposes of paragraph (1) by an 
additional 12 months.
    ``(3) In this subsection, the term `promotion eligibility 
period' means, with respect to an officer whose name is on a 
list of officers approved for promotion under section 624(a) of 
this title to a grade for which appointment is required by 
section 624(c) of this title to be made by and with the advice 
and consent of the Senate, the period beginning on the date on 
which the list is so approved and ending on the first day of 
the eighteenth month following the month during which the list 
is so approved.''.
            (3) Cross-reference amendment.--Paragraph (1) of 
        subsection (d) of such section, as redesignated by 
        paragraph (2)(A) of this subsection, is amended by 
        striking ``or (b)'' and inserting ``(b), or (c)''.
            (4) Stylistic amendments.--Such section is further 
        amended--
                    (A) in subsection (a), by inserting 
                ``Removal by President.--'' after ``(a)''; and
                    (B) in subsection (d) (as amended by 
                paragraph (3)), by inserting ``Continued 
                Eligibility for Promotion.--'' before ``(1)''.
    (b) Officers on Reserve Active Status List.--
            (1) Removal following return.--Section 14310 of 
        such title is amended--
                    (A) by redesignating subsection (c) as 
                subsection (d); and
                    (B) by inserting after subsection (b) the 
                following new subsection (c):
    ``(c) Removal After 18 Months.--(1) If an officer whose 
name is on a list of officers approved for promotion under 
section 14308(a) of this title to a grade for which appointment 
is required by section 12203(a) of this title to be made by and 
with the advice and consent of the Senate is not appointed to 
that grade under such section during the officer's promotion 
eligibility period, the officer's name shall be removed from 
the list unless as of the end of such period the Senate has 
given its advice and consent to the appointment.
    ``(2) Before the end of the promotion eligibility period 
with respect to an officer under paragraph (1), the President 
may extend that period for purposes of paragraph (1) by an 
additional 12 months.
    ``(3) In this subsection, the term `promotion eligibility 
period' means, with respect to an officer whose name is on a 
list of officers approved for promotion under section 14308(a) 
of this title to a grade for which appointment is required by 
section 12203(a) of this title to be made by and with the 
advice and consent of the Senate, the period beginning on the 
date on which the list is so approved and ending on the first 
day of the eighteenth month following the month during which 
the list is so approved.''.
            (2) Cross-reference amendment.--Paragraph (1) of 
        subsection (d) of such section, as redesignated by 
        paragraph (1)(A) of this subsection, is amended by 
        striking ``or (b)'' and inserting ``(b), or (c)''.
    (c) Effective Date.--The amendments made by this section 
shall apply to any promotion list approved by the President 
after January 1, 2007.

            PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

SEC. 516. MODIFICATION AND ENHANCEMENT OF GENERAL AUTHORITIES ON 
                    MANAGEMENT OF OFFICERS WHO ARE JOINT QUALIFIED.

    (a) Redesignation of Applicability of Policies Toward Joint 
Qualification.--Subsection (a) of section 661 of title 10, 
United States Code, is amended by striking the last sentence.
    (b) Revision to General Authorities.--Subsections (b), (c), 
and (d) of such section are amended to read as follows:
    ``(b) Levels, Designation, and Numbers.--(1)(A) The 
Secretary of Defense shall establish different levels of joint 
qualification, as well as the criteria for qualification at 
each level. Such levels of joint qualification shall be 
established by the Secretary with the advice of the Chairman of 
the Joint Chiefs of Staff. Each level shall, as a minimum, have 
both joint education criteria and joint experience criteria. 
The purpose of establishing such qualification levels is to 
ensure a systematic, progressive, career-long development of 
officers in joint matters and to ensure that officers serving 
as general and flag officers have the requisite experience and 
education to be highly proficient in joint matters.
    ``(B) The number of officers who are joint qualified shall 
be determined by the Secretary of Defense, with the advice of 
the Chairman of the Joint Chiefs of Staff. Such number shall be 
large enough to meet the requirements of subsection (d).
    ``(2) Certain officers shall be designated as joint 
qualified by the Secretary of Defense with the advice of the 
Chairman of the Joint Chiefs of Staff.
    ``(3) An officer may be designated as joint qualified under 
paragraph (2) only if the officer--
            ``(A) meets the education and experience criteria 
        of subsection (c);
            ``(B) meets such additional criteria as prescribed 
        by the Secretary of Defense; and
            ``(C) holds the grade of captain or, in the case of 
        the Navy, lieutenant or a higher grade.
    ``(4) The authority of the Secretary of Defense under 
paragraph (2) to designate officers as joint qualified may be 
delegated only to the Deputy Secretary of Defense or an Under 
Secretary of Defense.
    ``(c) Education and Experience Requirements.--(1) An 
officer may not be designated as joint qualified until the 
officer--
            ``(A) successfully completes an appropriate program 
        of joint professional military education, as described 
        in subsections (b) and (c) of section 2155 of this 
        title, at a joint professional military education 
        school; and
            ``(B) successfully completes--
                    ``(i) a full tour of duty in a joint 
                assignment, as described in section 664(f) of 
                this title; or
                    ``(ii) such other assignments and 
                experiences in a manner that demonstrate the 
                officer's mastery of knowledge, skills, and 
                abilities in joint matters, as determined under 
                such regulations and policy as the Secretary of 
                Defense may prescribe.
    ``(2) Subject to paragraphs (3) through (6), the Secretary 
of Defense may waive the requirement under paragraph (1)(A) 
that an officer have successfully completed a program of 
education, as described in subsections (b) and (c) of section 
2155 of this title.
    ``(3) In the case of an officer in a grade below brigadier 
general or rear admiral (lower half), a waiver under paragraph 
(2) may be granted only if--
            ``(A) the officer has completed two full tours of 
        duty in a joint duty assignment, as described in 
        section 664(f) of this title, in such a manner as to 
        demonstrate the officer's mastery of knowledge, skills, 
        and abilities on joint matters; and
            ``(B) the Secretary of Defense determines that the 
        types of joint duty experiences completed by the 
        officer have been of sufficient breadth to prepare the 
        officer adequately for service as a general or flag 
        officer in a joint duty assignment position.
    ``(4) In the case of a general or flag officer, a waiver 
under paragraph (2) may be granted only--
            ``(A) under unusual circumstances justifying the 
        variation from the education requirement under 
        paragraph (1)(A); and
            ``(B) under circumstances in which the waiver is 
        necessary to meet a critical need of the armed forces, 
        as determined by the Chairman of the Joint Chiefs of 
        Staff.
    ``(5) In the case of officers in grades below brigadier 
general or rear admiral (lower half), the total number of 
waivers granted under paragraph (2) for officers in the same 
pay grade during a fiscal year may not exceed 10 percent of the 
total number of officers in that pay grade designated as joint 
qualified during that fiscal year.
    ``(6) There may not be more than 32 general and flag 
officers on active duty at the same time who, while holding a 
general or flag officer position, were designated joint 
qualified (or were selected for the joint specialty before 
October 1, 2007) and for whom a waiver was granted under 
paragraph (2).
    ``(d) Number of Joint Duty Assignments.--(1) The Secretary 
of Defense shall ensure that approximately one-half of the 
joint duty assignment positions in grades above major or, in 
the case of the Navy, lieutenant commander, are filled at any 
time by officers who have the appropriate level of joint 
qualification.
    ``(2) The Secretary of Defense, with the advice of the 
Chairman of the Joint Chiefs of Staff, shall designate an 
appropriate number of joint duty assignment positions as 
critical joint duty assignment positions. A position may be 
designated as a critical joint duty assignment position only if 
the duties and responsibilities of the position make it 
important that the occupant be particularly trained in, and 
oriented toward, joint matters.
    ``(3)(A) Subject to subparagraph (B), a position designated 
under paragraph (2) may be held only by an officer who--
            ``(i) was designated as joint qualified in 
        accordance with this chapter; or
            ``(ii) was selected for the joint specialty before 
        October 1, 2007.
    ``(B) The Secretary of Defense may waive the requirement in 
subparagraph (A) with respect to the assignment of an officer 
to a position designated under paragraph (2). Any such waiver 
shall be granted on a case-by-case basis. The authority of the 
Secretary to grant such a waiver may be delegated only to the 
Chairman of the Joint Chiefs of Staff.
    ``(4) The Secretary of Defense shall ensure that, of those 
joint duty assignment positions that are filled by general or 
flag officers, a substantial portion are among those positions 
that are designated under paragraph (2) as critical joint duty 
assignment positions.''.
    (c) Career Guidelines.--Subsection (e) of such section is 
amended by striking ``officers with the joint specialty'' and 
inserting ``officers to achieve joint qualification and for 
officers who have been designated as joint qualified''.
    (d) Technical Amendment Regarding Treatment of Certain 
Service.--Subsection (f) of such section is amended by striking 
``section 619(e)(1)'' and inserting ``section 619a''.
    (e) Clerical Amendments.--
            (1) Section heading.--The heading of such section 
        is amended to read as follows:

``Sec. 661. Management policies for officers who are joint qualified''.

            (2) Table of sections.--The table of sections at 
        the beginning of chapter 38 of such title is amended by 
        striking the item relating to section 661 and inserting 
        the following new item:

``661. Management policies for officers who are joint qualified.''.

    (f) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2007.
    (g) Treatment of Current Joint Specialty Officers.--For the 
purposes of chapter 38 of title 10, United States Code, and 
sections 154, 164, and 619a of such title, an officer who, as 
of September 30, 2007, has been selected for or has the joint 
specialty under section 661 of such title, as in effect on that 
date, shall be considered after that date to be an officer 
designated as joint qualified by the Secretary of Defense under 
section 661(b)(2) of such title, as amended by this section.
    (h) Implementation Plan.--
            (1) Plan required.--Not later than March 31, 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 plan 
        for the implementation of the joint officer management 
        system, which will take effect on October 1, 2007, as 
        provided in subsection (f), as a result of the 
        amendments made by this section and other provisions of 
        this Act to provisions of chapter 38 of title 10, 
        United States Code.
            (2) Elements of plan.--In developing the plan 
        required by this subsection, the Secretary shall pay 
        particular attention to matters related to the 
        transition of officers from the joint specialty system 
        in effect before October 1, 2007, to the joint officer 
        management system in effect after that date. At a 
        minimum, the plan shall include the following:
                    (A) The policies and criteria to be used 
                for designating officers as joint qualified on 
                the basis of service performed by such officers 
                before that date, had the amendments made by 
                this section and other provisions of this Act 
                to provisions of chapter 38 of title 10, United 
                States Code, taken effect before the date of 
                the enactment of this Act.
                    (B) The policies and criteria prescribed by 
                the Secretary of Defense to be used in making 
                determinations under section 661(c)(1)(B)(ii) 
                of such title, as amended by this section.
                    (C) The recommendations of the Secretary 
                for any legislative changes that may be 
                necessary to effectuate the joint officer 
                management system.

SEC. 517. MODIFICATION OF PROMOTION POLICY OBJECTIVES FOR JOINT 
                    OFFICERS.

    Section 662(a) of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by inserting ``and'' after 
        the semicolon; and
            (2) by striking paragraphs (2) and (3) and 
        inserting the following new paragraph (2):
            ``(2) officers who are serving in or have served in 
        joint duty assignments are expected, as a group, to be 
        promoted to the next higher grade at a rate not less 
        than the rate for all officers of the same armed force 
        in the same grade and competitive category.''.

SEC. 518. APPLICABILITY OF JOINT DUTY ASSIGNMENT REQUIREMENTS LIMITED 
                    TO GRADUATES OF NATIONAL DEFENSE UNIVERSITY 
                    SCHOOLS.

    (a) Applicability.--Section 663 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking ``a joint 
        professional military education school'' and inserting 
        ``a school within the National Defense University 
        specified in subsection (c)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a joint 
                professional military education school'' and 
                inserting ``a school within the National 
                Defense University specified in subsection 
                (c)''; and
                    (B) in paragraph (2), by striking ``a joint 
                professional military education school'' and 
                inserting ``a school referred to in paragraph 
                (1)''.
    (b) Covered Schools Within NDU.--Such section is further 
amended by adding at the end the following new subsection:
    ``(c) Covered Schools Within the National Defense 
University.--For purposes of this section, a school within the 
National Defense University specified in this subsection is one 
of the following:
            ``(1) The National War College.
            ``(2) The Industrial College of the Armed Forces.
            ``(3) The Joint Forces Staff College.''.

SEC. 519. MODIFICATION OF CERTAIN DEFINITIONS RELATING TO JOINTNESS.

    (a) Definition of Joint Matters.--Subsection (a) of section 
668 of title 10, United States Code, is amended to read as 
follows:
    ``(a) Joint Matters.--(1) In this chapter, the term `joint 
matters' means matters related to the achievement of unified 
action by multiple military forces in operations conducted 
across domains such as land, sea, or air, in space, or in the 
information environment, including matters relating to--
            ``(A) national military strategy;
            ``(B) strategic planning and contingency planning;
            ``(C) command and control of operations under 
        unified command;
            ``(D) national security planning with other 
        departments and agencies of the United States; and
            ``(E) combined operations with military forces of 
        allied nations.
    ``(2) In the context of joint matters, the term `multiple 
military forces' refers to forces that involve participants 
from the armed forces and one or more of the following:
            ``(A) Other departments and agencies of the United 
        States.
            ``(B) The military forces or agencies of other 
        countries.
            ``(C) Non-governmental persons or entities.''.
    (b) Definition of Joint Duty Assignment.--Paragraph (1) of 
subsection (b) of such section is amended by striking ``That 
definition shall'' and all that follows and inserting the 
following: ``That definition--
            ``(A) shall be limited to assignments in which the 
        officer gains significant experience in joint matters; 
        and
            ``(B) shall exclude assignments for joint training 
        and education, except an assignment as an instructor 
        responsible for preparing and presenting courses in 
        areas of the curricula designated in section 2155(c) of 
        this title as part of a program designated by the 
        Secretary of Defense as joint professional military 
        education Phase II.''.
    (c) Definition of Critical Occupational Specialty.--Such 
section is further amended by adding at the end the following 
new subsection:
    ``(d) Critical Occupational Specialty.--(1) In this 
chapter, the term `critical occupational specialty' means a 
military occupational specialty involving combat operations 
within the combat arms, in the case of the Army, or the 
equivalent arms, in the case of the Navy, Air Force, and Marine 
Corps, that the Secretary of Defense designates as critical.
    ``(2) At a minimum, the Secretary of Defense shall 
designate as a critical occupational specialty under paragraph 
(1) any military occupational specialty within a combat arms 
(or the equivalent) that is experiencing a severe shortage of 
trained officers in that specialty, as determined by the 
Secretary.''.
    (d) Conforming Amendments.--
            (1) Initial assignment of officers with critical 
        occupational specialties.--Section 664(c) of such title 
        is amended--
                    (A) in the matter before paragraph (1) by 
                striking ``section 661(c)(2)'' and inserting 
                ``section 661(c)(1)(B)'';
                    (B) by striking paragraph (1);
                    (C) by redesignating paragraph (2) as 
                paragraph (1) and, in such paragraph, by 
                striking ``section 661(c)(2)'' and inserting 
                ``section 668(d)''; and
                    (D) by redesignating paragraph (3) as 
                paragraph (2).
            (2) Annual report on number of officers with 
        critical occupational specialties.--Section 667(3) of 
        such title is amended by striking ``section 661(c)(2)'' 
        and inserting ``section 668(d)''.
    (e) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2007.

                 Subtitle B--Reserve Component Matters

                  PART I--RESERVE COMPONENT MANAGEMENT

SEC. 521. RECOGNITION OF FORMER REPRESENTATIVE G. V. `SONNY' MONTGOMERY 
                    FOR HIS 30 YEARS OF SERVICE IN THE HOUSE OF 
                    REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) G.V. ``Sonny'' Montgomery was elected to the 
        House of Representatives in 1967 and served the people 
        of east-central Mississippi for 30 years with 
        distinction, dedication, and conviction.
            (2) Sonny Montgomery had a distinguished military 
        career both before and during his service in Congress, 
        serving in World War II and the Korean War, and retired 
        from the Mississippi National Guard with the rank of 
        Major General.
            (3) As a Member of the House of Representatives, 
        Sonny Montgomery served on the Committee on Armed 
        Services and served with great distinction as the 
        Chairman of the Committee on Veterans' Affairs for 13 
        years from 1981 through 1994.
            (4) Representative Montgomery's colleagues knew him 
        as a statesman of the institution and as a tireless 
        advocate for policies that would improve the lives of 
        persons who serve the United States.
            (5) Representative Montgomery was deeply committed 
        to all members of the Armed Forces who served in combat 
        and traveled to Korea and Southeast Asia to recover 
        remains and help determine the fate of POW/MIAs from 
        the Korean and Vietnam Wars.
            (6) Through his years of service on the Committee 
        on Armed Services, Representative Montgomery made great 
        contributions to the capabilities of the National Guard 
        and Reserves, by improving their training and equipment 
        and by better integrating them with the active force.
            (7) Under the revised GI Bill that bears his name 
        and was signed into law in 1984, Representative 
        Montgomery brought educational benefits to millions of 
        veterans, including those members who had served in the 
        National Guard and Reserves, and strengthened the all-
        volunteer force.
            (8) Representative Montgomery had received many 
        honors and commendations before his passing on May 12, 
        2006, including most recently and notably the 
        Presidential Medal of Freedom, the highest civilian 
        honor accorded by the United States.
    (b) Recognition.--Congress recognizes and commends former 
Representative G.V. ``Sonny'' Montgomery for his 30 years of 
service to benefit the people of Mississippi, members of the 
Armed Forces and their families, veterans, and the United 
States.

SEC. 522. REVISIONS TO RESERVE CALL-UP AUTHORITY.

    (a) Maximum Number of Days.--Subsection (a) of section 
12304 of title 10, United States Code, is amended by striking 
``270 days'' and inserting ``365 days.''
    (b) Fair Treatment.--Such section is further amended--
            (1) by redesignating subsection (i) as subsection 
        (j); and
            (2) by inserting after subsection (h) the following 
        new subsection (i):
    ``(i) Considerations for Involuntary Order to Active 
Duty.--(1) In determining which members of the Selected Reserve 
and Individual Ready Reserve will be ordered to duty without 
their consent under this section, appropriate consideration 
shall be given to--
            ``(A) the length and nature of previous service, to 
        assure such sharing of exposure to hazards as the 
        national security and military requirements will 
        reasonably allow;
            ``(B) the frequency of assignments during service 
        career;
            ``(C) family responsibilities; and
            ``(D) employment necessary to maintain the national 
        health, safety, or interest.
    ``(2) The Secretary of Defense shall prescribe such 
policies and procedures as the Secretary considers necessary to 
carry out this subsection.''.

SEC. 523. MILITARY RETIREMENT CREDIT FOR CERTAIN SERVICE BY NATIONAL 
                    GUARD MEMBERS PERFORMED WHILE IN A STATE DUTY 
                    STATUS IMMEDIATELY AFTER THE TERRORIST ATTACKS OF 
                    SEPTEMBER 11, 2001.

    Subsection (c) of section 514 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3232) is amended by adding at the end the following new 
paragraph:
            ``(3) In the State of New Jersey: Bergen, Hudson, 
        Union, and Middlesex.''.

        PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

SEC. 524. TITLE 10 DEFINITION OF ACTIVE GUARD AND RESERVE DUTY.

    Section 101 of title 10, United States Code, is amended--
            (1) by adding at the end of subsection (b) the 
        following new paragraph:
            ``(16) The term `Active Guard and Reserve' means a 
        member of a reserve component who is on active duty 
        pursuant to section 12301(d) of this title or, if a 
        member of the Army National Guard or Air National 
        Guard, is on full-time National Guard duty pursuant to 
        section 502(f) of title 32, and who is performing 
        Active Guard and Reserve duty.''; and
            (2) in paragraph (6)(A) of subsection (d)--
                    (A) by striking ``or full-time National 
                Guard duty'' after ``means active duty''; and
                    (B) by striking ``, pursuant to an order to 
                active duty or full-time National Guard duty'' 
                and inserting ``pursuant to an order to full-
                time National Guard duty,''.

SEC. 525. AUTHORITY FOR ACTIVE GUARD AND RESERVE DUTIES TO INCLUDE 
                    SUPPORT OF OPERATIONAL MISSIONS ASSIGNED TO THE 
                    RESERVE COMPONENTS AND INSTRUCTION AND TRAINING OF 
                    ACTIVE-DUTY PERSONNEL.

    (a) AGR Duty Under Title 10.--Subsections (a) and (b) of 
section 12310 of title 10, United States Code, are amended to 
read as follows:
    ``(a) Authority.--(1) The Secretary concerned may order a 
member of a reserve component under the Secretary's 
jurisdiction to active duty pursuant to section 12301(d) of 
this title to perform Active Guard and Reserve duty organizing, 
administering, recruiting, instructing, or training the reserve 
components.
    ``(2) A Reserve ordered to active duty under paragraph (1) 
shall be ordered in the Reserve's reserve grade. While so 
serving, the Reserve continues to be eligible for promotion as 
a Reserve, if otherwise qualified.
    ``(b) Duties.--A Reserve on active duty under subsection 
(a) may perform the following additional duties to the extent 
that the performance of those duties does not interfere with 
the performance of the Reserve's primary Active Guard and 
Reserve duties described in subsection (a)(1):
            ``(1) Supporting operations or missions assigned in 
        whole or in part to the reserve components.
            ``(2) Supporting operations or missions performed 
        or to be performed by--
                    ``(A) a unit composed of elements from more 
                than one component of the same armed force; or
                    ``(B) a joint forces unit that includes--
                            ``(i) one or more reserve component 
                        units; or
                            ``(ii) a member of a reserve 
                        component whose reserve component 
                        assignment is in a position in an 
                        element of the joint forces unit.
            ``(3) Advising the Secretary of Defense, the 
        Secretaries of the military departments, the Joint 
        Chiefs of Staff, and the commanders of the combatant 
        commands regarding reserve component matters.
            ``(4) Instructing or training in the United States 
        or the Commonwealth of Puerto Rico or possessions of 
        the United States of--
                    ``(A) active-duty members of the armed 
                forces;
                    ``(B) members of foreign military forces 
                (under the same authorities and restrictions 
                applicable to active-duty members providing 
                such instruction or training);
                    ``(C) Department of Defense contractor 
                personnel; or
                    ``(D) Department of Defense civilian 
                employees.''.
    (b) Military Technicians Under Title 10.--Section 10216(a) 
of such title is amended--
            (1) in paragraph (1)(C), by striking 
        ``administration and'' and inserting ``organizing, 
        administering, instructing, or''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) A military technician (dual status) who is employed 
under section 3101 of title 5 may perform the following 
additional duties to the extent that the performance of those 
duties does not interfere with the performance of the primary 
duties described in paragraph (1):
            ``(A) Supporting operations or missions assigned in 
        whole or in part to the technician's unit.
            ``(B) Supporting operations or missions performed 
        or to be performed by--
                    ``(i) a unit composed of elements from more 
                than one component of the technician's armed 
                force; or
                    ``(ii) a joint forces unit that includes--
                            ``(I) one or more units of the 
                        technician's component; or
                            ``(II) a member of the technician's 
                        component whose reserve component 
                        assignment is in a position in an 
                        element of the joint forces unit.
            ``(C) Instructing or training in the United States 
        or the Commonwealth of Puerto Rico or possessions of 
        the United States of--
                    ``(i) active-duty members of the armed 
                forces;
                    ``(ii) members of foreign military forces 
                (under the same authorities and restrictions 
                applicable to active-duty members providing 
                such instruction or training);
                    ``(iii) Department of Defense contractor 
                personnel; or
                    ``(iv) Department of Defense civilian 
                employees.''.
    (c) National Guard Title 32 Training Duty.--Section 502(f) 
of title 32, United States Code, title is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``Under 
        regulations''; and
            (3) by striking the last sentence and inserting the 
        following:
    ``(2) The training or duty ordered to be performed under 
paragraph (1) may include the following:
            ``(A) Support of operations or missions undertaken 
        by the member's unit at the request of the President or 
        Secretary of Defense.
            ``(B) Support of training operations and training 
        missions assigned in whole or in part to the National 
        Guard by the Secretary concerned, but only to the 
        extent that such training missions and training 
        operations--
                    ``(i) are performed in the United States or 
                the Commonwealth of Puerto Rico or possessions 
                of the United States; and
                    ``(ii) are only to instruct active duty 
                military, foreign military (under the same 
                authorities and restrictions applicable to 
                active duty troops), Department of Defense 
                contractor personnel, or Department of Defense 
                civilian employees.
    ``(3) Duty without pay shall be considered for all purposes 
as if it were duty with pay.''.
    (d) National Guard Technicians Under Title 32.--Section 
709(a) of title 32, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``administration and'' and 
                inserting ``organizing, administering, 
                instructing, or''; and
                    (B) by striking ``and'' at the end of such 
                paragraph;
            (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) the performance of the following additional 
        duties to the extent that the performance of those 
        duties does not interfere with the performance of the 
        duties described by paragraphs (1) and (2):
                    ``(A) Support of operations or missions 
                undertaken by the technician's unit at the 
                request of the President or the Secretary of 
                Defense.
                    ``(B) Support of Federal training 
                operations or Federal training missions 
                assigned in whole or in part to the 
                technician's unit.
                    ``(C) Instructing or training in the United 
                States or the Commonwealth of Puerto Rico or 
                possessions of the United States of--
                            ``(i) active-duty members of the 
                        armed forces;
                            ``(ii) members of foreign military 
                        forces (under the same authorities and 
                        restrictions applicable to active-duty 
                        members providing such instruction or 
                        training);
                            ``(iii) Department of Defense 
                        contractor personnel; or
                            ``(iv) Department of Defense 
                        civilian employees.''.

SEC. 526. GOVERNOR'S AUTHORITY TO ORDER MEMBERS TO ACTIVE GUARD AND 
                    RESERVE DUTY.

    (a) In General.--Chapter 3 of title 32, United States Code, 
is amended by adding at the end the following new section:

``Sec. 328. Active Guard and Reserve duty: Governor's authority

    ``(a) Authority.--The Governor of a State or the 
Commonwealth of Puerto Rico, Guam, or the Virgin Islands, or 
the commanding general of the District of Columbia National 
Guard, as the case may be, with the consent of the Secretary 
concerned, may order a member of the National Guard to perform 
Active Guard and Reserve duty, as defined by section 101(d)(6) 
of title 10, pursuant to section 502(f) of this title.
    ``(b) Duties.--A member of the National Guard performing 
duty under subsection (a) may perform the additional duties 
specified in section 502(f)(2) of this title to the extent that 
the performance of those duties does not interfere with the 
performance of the member's primary Active Guard and Reserve 
duties of organizing, administering, recruiting, instructing, 
and training the reserve components.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``328. Active Guard and Reserve duty: Governor's authority.''.

SEC. 527. EXPANSION OF OPERATIONS OF CIVIL SUPPORT TEAMS.

    (a) In General.--Section 12310(c) of title 10, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking ``involving--'' and 
                inserting ``involving any of the following:''; 
                and
                    (B) by striking subparagraphs (A) and (B) 
                and inserting the following:
            ``(A) The use or threatened use of a weapon of mass 
        destruction (as defined in section 12304(i)(2) of this 
        title) in the United States.
            ``(B) A terrorist attack or threatened terrorist 
        attack in the United States that results, or could 
        result, in catastrophic loss of life or property.
            ``(C) The intentional or unintentional release of 
        nuclear, biological, radiological, or toxic or 
        poisonous chemical materials in the United States that 
        results, or could result, in catastrophic loss of life 
        or property.
            ``(D) A natural or manmade disaster in the United 
        States that results in, or could result in, 
        catastrophic loss of life or property.'';
            (2) by amending paragraph (3) to read as follows:
    ``(3) A Reserve may perform duty described in paragraph (1) 
only while assigned to a reserve component weapons of mass 
destruction civil support team.''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(7) In this subsection, the term `United States' includes 
the Commonwealth of Puerto Rico, Guam, and the Virgin 
Islands.''.
    (b) Technical and Conforming Amendments.--Such section is 
further amended--
            (1) by striking the subsection heading and 
        inserting ``Operations Relating to Defense Against 
        Weapons of Mass Destruction and Terrorist Attacks.--'';
            (2) in paragraph (5), by striking ``rapid 
        assessment element team'' and inserting ``weapons of 
        mass destruction civil support team''; and
            (3) in paragraph (6)--
                    (A) in the matter preceding subparagraph 
                (A), by striking ``paragraph (3)'' and 
                inserting ``paragraphs (1) and (3)''; and
                    (B) in subparagraph (B), by striking 
                ``paragraph (3)(B)'' and inserting ``paragraph 
                (3)''.

SEC. 528. MODIFICATION OF AUTHORITIES RELATING TO THE COMMISSION ON THE 
                    NATIONAL GUARD AND RESERVES.

    (a) Annuities and Pay of Members on Federal Reemployment.--
Subsection (e) of section 513 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 1882), as amended by section 516 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3237), is further amended by adding at the end 
the following new paragraph:
    ``(3) If warranted by circumstances described in 
subparagraph (A) or (B) of section 8344(i)(1) of title 5, 
United States Code, or by circumstances described in 
subparagraph (A) or (B) of section 8468(f)(1) of such title, as 
applicable, the chairman of the Commission may exercise, with 
respect to the members of the Commission, the same waiver 
authority as would be available to the Director of the Office 
of Personnel Management under such section.''.
    (b) Final Report.--Subsection (f)(2) of such section 513 
(118 Stat. 1882) is amended by striking ``Not later than one 
year after the first meeting of the Commission'' and inserting 
``Not later than January 31, 2008''.
    (c) Effective Date.--The amendments made by this section 
shall take effect as of October 28, 2004, as if included in the 
enactment of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005. The amendment made by 
subsection (a) shall apply to members of the Commission on the 
National Guard and Reserves appointed on or after that date.

SEC. 529. ADDITIONAL MATTERS TO BE REVIEWED BY COMMISSION ON THE 
                    NATIONAL GUARD AND RESERVES.

    (a) Additional Matters To Be Reviewed by Commission.--The 
Commission on the National Guard and Reserves shall include 
among the matters it studies (in addition to the matters 
specified in subsection (c) of the commission charter) each of 
the following:
            (1) National guard bureau enhancement proposals.--
        The advisability and feasibility of implementing the 
        provisions of S. 2658 and H.R. 5200 of the 109th 
        Congress, as introduced in the Senate and the House of 
        Representatives, respectively, on April 26, 2006.
            (2) Chief of national guard bureau.--As an 
        alternative to implementation of the provisions of the 
        bills specified in paragraph (1) that provide for the 
        Chief of the National Guard Bureau to be a member of 
        the Joint Chiefs of Staff and to hold the grade of 
        general, the advisability and feasibility of providing 
        for the Chief of the National Guard Bureau to hold the 
        grade of general in the performance of the current 
        duties of that office.
            (3) National guard officers authority to command.--
        The advisability and feasibility of implementing the 
        provisions of section 544 of H.R. 5122 of the 109th 
        Congress, as passed the House of Representatives on May 
        11, 2006.
            (4) National guard equipment and funding 
        requirements.--The adequacy of the Department of 
        Defense processes for defining the equipment and 
        funding necessary for the National Guard to conduct 
        both its responsibilities under title 10, United States 
        Code, and its responsibilities under title 32, United 
        States Code, including homeland defense and related 
        homeland missions, including as part of such study--
                    (A) consideration of the extent to which 
                those processes should be developed taking into 
                consideration the views of the Chief of the 
                National Guard Bureau, as well as the views of 
                the 54 Adjutant Generals and the views of the 
                Chiefs of the Army National Guard and the Air 
                Guard; and
                    (B) whether there should be an improved 
                means by which National Guard equipment 
                requirements are validated by the Joint Chiefs 
                of Staff and are considered for funding by the 
                Secretaries of the Army and Air Force.
    (b) Priority Review and Report.--
            (1) Priority review.--The Commission on the 
        National Guard and Reserves shall carry out its study 
        of the matters specified in paragraphs (1), (2), and 
        (3) of subsection (a) on a priority basis, with a 
        higher priority for matters under those paragraphs 
        relating to the grade and functions of the Chief of the 
        National Guard Bureau.
            (2) Report.--In addition to the reports required 
        under subsection (f) of the commission charter, the 
        Commission shall submit to the Committee on Armed 
        Services of the Senate and the Committee on Armed 
        Services of the House of Representatives an interim 
        report, not later than March 1, 2007, specifically on 
        the matters covered by paragraph (1). In such report, 
        the Commission shall set forth its findings and any 
        recommendations it considers appropriate with respect 
        to those matters.
    (c) Commission Charter Defined.--For purposes of this 
section, the term ``commission charter'' means section 513 of 
the Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1880).

                   Subtitle C--Education and Training

                       PART I--SERVICE ACADEMIES

SEC. 531. EXPANSION OF SERVICE ACADEMY EXCHANGE PROGRAMS WITH FOREIGN 
                    MILITARY ACADEMIES.

    (a) United States Military Academy.--
            (1) Number of participants in exchange program.--
        Subsection (b) of section 4345 of title 10, United 
        States Code, is amended by striking ``24'' and 
        inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``for the Academy'' in 
                paragraph (3) and all that follows in that 
                paragraph and inserting ``for the Academy and 
                such additional funds as may be available to 
                the Academy from a source other than 
                appropriated funds to support cultural 
                immersion, regional awareness, or foreign 
                language training activities in connection with 
                the exchange program.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from 
funds appropriated for the Academy may not exceed $1,000,000 
during any fiscal year.''.
    (b) United States Naval Academy.--
            (1) Number of participants in exchange program.--
        Subsection (b) of section 6957a of title 10, United 
        States Code, is amended by striking ``24'' and 
        inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``for the Academy'' in 
                paragraph (3) and all that follows in that 
                paragraph and inserting ``for the Academy and 
                such additional funds as may be available to 
                the Academy from a source other than 
                appropriated funds to support cultural 
                immersion, regional awareness, or foreign 
                language training activities in connection with 
                the exchange program.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from 
funds appropriated for the Naval Academy may not exceed 
$1,000,000 during any fiscal year.''.
    (c) United States Air Force Academy.--
            (1) Number of participants in exchange program.--
        Subsection (b) of section 9345 of title 10, United 
        States Code, is amended by striking ``24'' and 
        inserting ``100''.
            (2) Costs and expenses.--Subsection (c) of such 
        section is amended--
                    (A) by striking ``for the Academy'' in 
                paragraph (3) and all that follows in that 
                paragraph and inserting ``for the Academy and 
                such additional funds as may be available to 
                the Academy from a source other than 
                appropriated funds to support cultural 
                immersion, regional awareness, or foreign 
                language training activities in connection with 
                the exchange program.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) Expenditures in support of the exchange program from 
funds appropriated for the Academy may not exceed $1,000,000 
during any fiscal year.''.
    (d) Effective Dates.--The amendments made by subsection (a) 
shall take effect on the date of the enactment of this Act. The 
amendments made by subsections (b) and (c) shall take effect on 
October 1, 2008.

SEC. 532. REVISION AND CLARIFICATION OF REQUIREMENTS WITH RESPECT TO 
                    SURVEYS AND REPORTS CONCERNING SEXUAL HARASSMENT 
                    AND SEXUAL VIOLENCE AT THE SERVICE ACADEMIES.

    (a) Codification and Revision to Existing Requirement for 
Service Academy Policy on Sexual Harassment and Sexual 
Violence.--
            (1) United states military academy.--Chapter 403 of 
        title 10, United States Code, is amended by adding at 
        the end the following new section:

``Sec. 4361. Policy on sexual harassment and sexual violence

    ``(a) Required Policy.--Under guidance prescribed by the 
Secretary of Defense, the Secretary of the Army shall direct 
the Superintendent of the Academy to prescribe a policy on 
sexual harassment and sexual violence applicable to the cadets 
and other personnel of the Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on 
sexual harassment and sexual violence prescribed under this 
section shall include specification of the following:
            ``(1) Programs to promote awareness of the 
        incidence of rape, acquaintance rape, and other sexual 
        offenses of a criminal nature that involve cadets or 
        other Academy personnel.
            ``(2) Procedures that a cadet should follow in the 
        case of an occurrence of sexual harassment or sexual 
        violence, including--
                    ``(A) if the cadet chooses to report an 
                occurrence of sexual harassment or sexual 
                violence, a specification of the person or 
                persons to whom the alleged offense should be 
                reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person 
                whom the victim should contact; and
                    ``(C) procedures on the preservation of 
                evidence potentially necessary for proof of 
                criminal sexual assault.
            ``(3) Procedures for disciplinary action in cases 
        of alleged criminal sexual assault involving a cadet or 
        other Academy personnel.
            ``(4) Any other sanction authorized to be imposed 
        in a substantiated case of sexual harassment or sexual 
        violence involving a cadet or other Academy personnel 
        in rape, acquaintance rape, or any other criminal 
        sexual offense, whether forcible or nonforcible.
            ``(5) Required training on the policy for all 
        cadets and other Academy personnel, including the 
        specific training required for personnel who process 
        allegations of sexual harassment or sexual violence 
        involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, 
through the Secretary of the Army, shall direct the 
Superintendent to conduct at the Academy during each Academy 
program year an assessment, to be administered by the 
Department of Defense, to determine the effectiveness of the 
policies, training, and procedures of the Academy with respect 
to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) 
with respect to an Academy program year that begins in an odd-
numbered calendar year, the Secretary of the Army shall conduct 
a survey, to be administered by the Department of Defense, of 
Academy personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have been reported to officials of the Academy; 
                and
                    ``(ii) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have not been reported to officials of the 
                Academy; and
            ``(B) to assess the perceptions of Academy 
        personnel of--
                    ``(i) the policies, training, and 
                procedures on sexual harassment and sexual 
                violence involving Academy personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment 
                and sexual violence involving Academy 
                personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving 
                Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Army shall 
direct the Superintendent of the Academy to submit to the 
Secretary a report on sexual harassment and sexual violence 
involving cadets or other personnel at the Academy for each 
Academy program year.
    ``(2) Each report under paragraph (1) shall include, for 
the Academy program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and 
        other sexual offenses involving cadets or other Academy 
        personnel that have been reported to Academy officials 
        during the program year and, of those reported cases, 
        the number that have been substantiated.
            ``(B) The policies, procedures, and processes 
        implemented by the Secretary of the Army and the 
        leadership of the Academy in response to sexual 
        harassment and sexual violence involving cadets or 
        other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken 
        in the following Academy program year regarding 
        prevention of and response to sexual harassment and 
        sexual violence involving cadets or other Academy 
        personnel.
    ``(3) Each report under paragraph (1) for an Academy 
program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program 
year under subsection (c)(2).
    ``(4)(A) The Secretary of the Army shall transmit to the 
Secretary of Defense, and to the Board of Visitors of the 
Academy, each report received by the Secretary under this 
subsection, together with the Secretary's comments on the 
report.
    ``(B) The Secretary of Defense shall transmit each such 
report, together with the Secretary's comments on the report, 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.''.
            (2) United states naval academy.--Chapter 603 of 
        title 10, United States Code, is amended by adding at 
        the end the following new section:

``Sec. 6980. Policy on sexual harassment and sexual violence

    ``(a) Required Policy.--Under guidance prescribed by the 
Secretary of Defense, the Secretary of the Navy shall direct 
the Superintendent of the Naval Academy to prescribe a policy 
on sexual harassment and sexual violence applicable to the 
midshipmen and other personnel of the Naval Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on 
sexual harassment and sexual violence prescribed under this 
section shall include specification of the following:
            ``(1) Programs to promote awareness of the 
        incidence of rape, acquaintance rape, and other sexual 
        offenses of a criminal nature that involve midshipmen 
        or other Academy personnel.
            ``(2) Procedures that a midshipman should follow in 
        the case of an occurrence of sexual harassment or 
        sexual violence, including--
                    ``(A) if the midshipman chooses to report 
                an occurrence of sexual harassment or sexual 
                violence, a specification of the person or 
                persons to whom the alleged offense should be 
                reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person 
                whom the victim should contact; and
                    ``(C) procedures on the preservation of 
                evidence potentially necessary for proof of 
                criminal sexual assault.
            ``(3) Procedures for disciplinary action in cases 
        of alleged criminal sexual assault involving a 
        midshipman or other Academy personnel.
            ``(4) Any other sanction authorized to be imposed 
        in a substantiated case of sexual harassment or sexual 
        violence involving a midshipman or other Academy 
        personnel in rape, acquaintance rape, or any other 
        criminal sexual offense, whether forcible or 
        nonforcible.
            ``(5) Required training on the policy for all 
        midshipmen and other Academy personnel, including the 
        specific training required for personnel who process 
        allegations of sexual harassment or sexual violence 
        involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, 
through the Secretary of the Navy, shall direct the 
Superintendent to conduct at the Academy during each Academy 
program year an assessment, to be administered by the 
Department of Defense, to determine the effectiveness of the 
policies, training, and procedures of the Academy with respect 
to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) 
with respect to an Academy program year that begins in an odd-
numbered calendar year, the Secretary of the Navy shall conduct 
a survey, to be administered by the Department of Defense, of 
Academy personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have been reported to officials of the Academy; 
                and
                    ``(ii) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have not been reported to officials of the 
                Academy; and
            ``(B) to assess the perceptions of Academy 
        personnel of--
                    ``(i) the policies, training, and 
                procedures on sexual harassment and sexual 
                violence involving Academy personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment 
                and sexual violence involving Academy 
                personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving 
                Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Navy shall 
direct the Superintendent of the Naval Academy to submit to the 
Secretary a report on sexual harassment and sexual violence 
involving midshipmen or other personnel at the Academy for each 
Academy program year.
    ``(2) Each report under paragraph (1) shall include, for 
the Academy program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and 
        other sexual offenses involving midshipmen or other 
        Academy personnel that have been reported to Naval 
        Academy officials during the program year and, of those 
        reported cases, the number that have been 
        substantiated.
            ``(B) The policies, procedures, and processes 
        implemented by the Secretary of the Navy and the 
        leadership of the Naval Academy in response to sexual 
        harassment and sexual violence involving midshipmen or 
        other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken 
        in the following Academy program year regarding 
        prevention of and response to sexual harassment and 
        sexual violence involving midshipmen or other Academy 
        personnel.
    ``(3) Each report under paragraph (1) for an Academy 
program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program 
year under subsection (c)(2).
    ``(4)(A) The Secretary of the Navy shall transmit to the 
Secretary of Defense, and to the Board of Visitors of the Naval 
Academy, each report received by the Secretary under this 
subsection, together with the Secretary's comments on the 
report.
    ``(B) The Secretary of Defense shall transmit each such 
report, together with the Secretary's comments on the report, 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.''.
            (3) United states air force academy.--Chapter 903 
        of title 10, United States Code, is amended by adding 
        at the end the following new section:

``Sec. 9361. Policy on sexual harassment and sexual violence

    ``(a) Required Policy.--Under guidance prescribed by the 
Secretary of Defense, the Secretary of the Air Force shall 
direct the Superintendent of the Academy to prescribe a policy 
on sexual harassment and sexual violence applicable to the 
cadets and other personnel of the Academy.
    ``(b) Matters To Be Specified in Policy.--The policy on 
sexual harassment and sexual violence prescribed under this 
section shall include specification of the following:
            ``(1) Programs to promote awareness of the 
        incidence of rape, acquaintance rape, and other sexual 
        offenses of a criminal nature that involve cadets or 
        other Academy personnel.
            ``(2) Procedures that a cadet should follow in the 
        case of an occurrence of sexual harassment or sexual 
        violence, including--
                    ``(A) if the cadet chooses to report an 
                occurrence of sexual harassment or sexual 
                violence, a specification of the person or 
                persons to whom the alleged offense should be 
                reported and the options for confidential 
                reporting;
                    ``(B) a specification of any other person 
                whom the victim should contact; and
                    ``(C) procedures on the preservation of 
                evidence potentially necessary for proof of 
                criminal sexual assault.
            ``(3) Procedures for disciplinary action in cases 
        of alleged criminal sexual assault involving a cadet or 
        other Academy personnel.
            ``(4) Any other sanction authorized to be imposed 
        in a substantiated case of sexual harassment or sexual 
        violence involving a cadet or other Academy personnel 
        in rape, acquaintance rape, or any other criminal 
        sexual offense, whether forcible or nonforcible.
            ``(5) Required training on the policy for all 
        cadets and other Academy personnel, including the 
        specific training required for personnel who process 
        allegations of sexual harassment or sexual violence 
        involving Academy personnel.
    ``(c) Annual Assessment.--(1) The Secretary of Defense, 
through the Secretary of the Air Force, shall direct the 
Superintendent to conduct at the Academy during each Academy 
program year an assessment, to be administered by the 
Department of Defense, to determine the effectiveness of the 
policies, training, and procedures of the Academy with respect 
to sexual harassment and sexual violence involving Academy 
personnel.
    ``(2) For the assessment at the Academy under paragraph (1) 
with respect to an Academy program year that begins in an odd-
numbered calendar year, the Secretary of the Air Force shall 
conduct a survey, to be administered by the Department of 
Defense, of Academy personnel--
            ``(A) to measure--
                    ``(i) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have been reported to officials of the Academy; 
                and
                    ``(ii) the incidence, during that program 
                year, of sexual harassment and sexual violence 
                events, on or off the Academy reservation, that 
                have not been reported to officials of the 
                Academy; and
            ``(B) to assess the perceptions of Academy 
        personnel of--
                    ``(i) the policies, training, and 
                procedures on sexual harassment and sexual 
                violence involving Academy personnel;
                    ``(ii) the enforcement of such policies;
                    ``(iii) the incidence of sexual harassment 
                and sexual violence involving Academy 
                personnel; and
                    ``(iv) any other issues relating to sexual 
                harassment and sexual violence involving 
                Academy personnel.
    ``(d) Annual Report.--(1) The Secretary of the Air Force 
shall direct the Superintendent of the Academy to submit to the 
Secretary a report on sexual harassment and sexual violence 
involving cadets or other personnel at the Academy for each 
Academy program year.
    ``(2) Each report under paragraph (1) shall include, for 
the Academy program year covered by the report, the following:
            ``(A) The number of sexual assaults, rapes, and 
        other sexual offenses involving cadets or other Academy 
        personnel that have been reported to Academy officials 
        during the program year and, of those reported cases, 
        the number that have been substantiated.
            ``(B) The policies, procedures, and processes 
        implemented by the Secretary of the Air Force and the 
        leadership of the Academy in response to sexual 
        harassment and sexual violence involving cadets or 
        other Academy personnel during the program year.
            ``(C) A plan for the actions that are to be taken 
        in the following Academy program year regarding 
        prevention of and response to sexual harassment and 
        sexual violence involving cadets or other Academy 
        personnel.
    ``(3) Each report under paragraph (1) for an Academy 
program year that begins in an odd-numbered calendar year shall 
include the results of the survey conducted in that program 
year under subsection (c)(2).
    ``(4)(A) The Secretary of the Air Force shall transmit to 
the Secretary of Defense, and to the Board of Visitors of the 
Academy, each report received by the Secretary under this 
subsection, together with the Secretary's comments on the 
report.
    ``(B) The Secretary of Defense shall transmit each such 
report, together with the Secretary's comments on the report, 
to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives.''.
    (b) Further Information From Cadets and Midshipmen at the 
Service Academies on Sexual Assault and Sexual Harassment 
Issues.--
            (1) Use of focus groups for years when survey not 
        required.--In any year in which the Secretary of a 
        military department is not required by law to conduct a 
        survey at the service academy under the Secretary's 
        jurisdiction on matters relating to sexual assault and 
        sexual harassment issues at that Academy, the Secretary 
        shall provide for focus groups to be conducted at that 
        Academy for the purposes of ascertaining information 
        relating to sexual assault and sexual harassment issues 
        at that Academy.
            (2) Inclusion in report.--Information ascertained 
        from a focus group conducted pursuant to paragraph (1) 
        shall be included in the Secretary's annual report to 
        Congress on sexual harassment and sexual violence at 
        the service academies.
            (3) Service academies.--For purposes of this 
        subsection, the term ``service academy'' means the 
        following:
                    (A) The United States Military Academy.
                    (B) The United States Naval Academy.
                    (C) The United States Air Force Academy.
    (c) Repeal of Prior Law.--Section 527 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136; 117 Stat. 1469; 10 U.S.C. 4331 note) is repealed.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of 
        chapter 403 of title 10, United States Code, is amended 
        by adding at the end the following new item:

``4361.  Policy on sexual harassment and sexual violence.''.

            (2) The table of sections at the beginning of 
        chapter 603 of such title is amended by adding at the 
        end the following new item:

``6980.  Policy on sexual harassment and sexual violence.''.

            (3) The table of sections at the beginning of 
        chapter 903 of such title is amended by adding at the 
        end the following new item:

``9361.  Policy on sexual harassment and sexual violence.''.

SEC. 533. DEPARTMENT OF DEFENSE POLICY ON SERVICE ACADEMY AND ROTC 
                    GRADUATES SEEKING TO PARTICIPATE IN PROFESSIONAL 
                    SPORTS BEFORE COMPLETION OF THEIR ACTIVE-DUTY 
                    SERVICE OBLIGATIONS.

    (a) Policy Required.--
            (1) In general.--Not later than July 1, 2007, the 
        Secretary of Defense shall prescribe the policy of the 
        Department of Defense on--
                    (A) whether to authorize graduates of the 
                service academies and the Reserve Officers' 
                Training Corps to participate in professional 
                sports before the completion of their 
                obligations for service on active duty as 
                commissioned officers; and
                    (B) if so, the obligations for service on 
                active duty as commissioned officers of such 
                graduates who participate in professional 
                sports before the satisfaction of the 
                obligations referred to in subparagraph (A).
            (2) Review of current policies.--In prescribing the 
        policy, the Secretary shall review current policies, 
        practices, and regulations of the military departments 
        on the obligations for service on active duty as 
        commissioned officers of graduates of the service 
        academies and the Reserve Officers' Training Corps, 
        including policies on authorized leaves of absence and 
        policies under excess leave programs.
            (3) Considerations.--In prescribing the policy, the 
        Secretary shall take into account the following:
                    (A) The compatibility of participation in 
                professional sports (including training for 
                professional sports) with service on active 
                duty in the Armed Forces or as a member of a 
                reserve component of the Armed Forces.
                    (B) The benefits for the Armed Forces of 
                waiving obligations for service on active duty 
                for cadets, midshipmen, and commissioned 
                officers in order to permit such individuals to 
                participate in professional sports.
                    (C) The manner in which the military 
                departments have resolved issues relating to 
                the participation of personnel in professional 
                sports, including the extent of and any reasons 
                for, differences in the resolution of such 
                issues by such departments.
                    (D) The recoupment of the costs of 
                education provided by the service academies or 
                under the Reserve Officers' Training Corps 
                program if graduates of the service academies 
                or the Reserve Officers' Training Corps, as the 
                case may be, do not complete the period of 
                obligated service to which they have agreed by 
                reason of participation in professional sports.
                    (E) Any other matters that the Secretary 
                considers appropriate.
    (b) Elements of Policy.--The policy prescribed under 
subsection (a) shall address the following matters:
            (1) The eligibility of graduates of the service 
        academies and the Reserve Officers' Training Corps for 
        a reduction in the obligated length of service on 
        active duty as a commissioned officer otherwise 
        required of such graduates on the basis of their 
        participation in professional sports.
            (2) Criteria for the treatment of an individual as 
        a participant or potential participant in professional 
        sports.
            (3) The effect on obligations for service on active 
        duty as a commissioned officer of any unsatisfied 
        obligations under prior enlistment contracts or other 
        forms of advanced education assistance.
            (4) Any authorized variations in the policy that 
        are warranted by the distinctive requirements of a 
        particular Armed Force.
            (5) The eligibility of individuals for medical 
        discharge or disability benefits as a result of 
        injuries incurred while participating in professional 
        sports.
            (6) A prospective effective date for the policy and 
        for the application of the policy to individuals 
        serving on such effective date as a commissioned 
        officer, cadet, or midshipman.
    (c) Application of Policy to Armed Forces.--Not later than 
December 1, 2007, the Secretary of each military department 
shall prescribe regulations, or modify current regulations, in 
order to implement the policy prescribed by the Secretary of 
Defense under subsection (a) with respect to the Armed Forces 
under the jurisdiction of such Secretary.

         PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

SEC. 535. AUTHORITY TO PERMIT MEMBERS WHO PARTICIPATE IN THE GUARANTEED 
                    RESERVE FORCES DUTY SCHOLARSHIP PROGRAM TO 
                    PARTICIPATE IN THE HEALTH PROFESSIONS SCHOLARSHIP 
                    PROGRAM AND SERVE ON ACTIVE DUTY.

    Paragraph (3) of section 2107a(b) of title 10, United 
States Code, is amended--
            (1) by inserting ``or a cadet or former cadet under 
        this section who signs an agreement under section 2122 
        of this title,'' after ``military junior college,''; 
        and
            (2) by inserting ``, or former cadet,'' after 
        ``consent of the cadet'' and after ``submitted by the 
        cadet''.

SEC. 536. DETAIL OF COMMISSIONED OFFICERS AS STUDENTS AT MEDICAL 
                    SCHOOLS.

    (a) In General.--Chapter 101 of title 10, United States 
Code, is amended by inserting after section 2004 the following 
new section:

``Sec. 2004a. Detail of commissioned officers as students at medical 
                    schools

    ``(a) Detail Authorized.--The Secretary of each military 
department may detail commissioned officers of the armed forces 
as students at accredited medical schools or schools of 
osteopathy located in the United States for a period of 
training leading to the degree of doctor of medicine. No more 
than 25 officers from each military department may commence 
such training in any single fiscal year.
    ``(b) Eligibility for Detail.--To be eligible for detail 
under subsection (a), an officer must be a citizen of the 
United States and must--
            ``(1) have served on active duty for a period of 
        not less than two years nor more than six years and be 
        in the pay grade 0-3 or below as of the time the 
        training is to begin; and
            ``(2) sign an agreement that unless sooner 
        separated the officer will--
                    ``(A) complete the educational course of 
                medical training;
                    ``(B) accept transfer or detail as a 
                medical officer within the military department 
                concerned when the officer's training is 
                completed; and
                    ``(C) agree to serve, following completion 
                of the officer's training, on active duty (or 
                on active duty and in the Selected Reserve) for 
                a period as specified pursuant to subsection 
                (c).
    ``(c) Service Obligation.--An agreement under subsection 
(c) shall provide that the officer shall serve on active duty 
for two years for each year or part thereof of the officer's 
medical training under subsection (a), except that the 
agreement may authorize the officer to serve a portion of the 
officer's service obligation on active duty and to complete the 
service obligation that remains upon separation from active 
duty in the Selected Reserve, in which case the officer shall 
serve three years in the Selected Reserve for each year or part 
thereof of the officer's medical training under subsection (a) 
for any service obligation that was not completed before 
separation from active duty.
    ``(d) Selection of Officers for Detail.--Officers detailed 
for medical training under subsection (a) shall be selected on 
a competitive basis by the Secretary of the military department 
concerned.
    ``(e) Relation of Service Obligations to Other Service 
Obligations.--Any service obligation incurred by an officer 
under an agreement entered into under subsection (b) shall be 
in addition to any service obligation incurred by the officer 
under any other provision of law or agreement.
    ``(f) Expenses.--Expenses incident to the detail of 
officers under this section shall be paid from any funds 
appropriated for the military department concerned.
    ``(g) Failure To Complete Program.--(1) An officer who is 
dropped from a program of medical training to which detailed 
under subsection (a) for deficiency in conduct or studies, or 
for other reasons, may be required to perform active duty in an 
appropriate military capacity in accordance with the active 
duty obligation imposed on the officer under regulations issued 
by the Secretary of Defense for purposes of this section.
    ``(2) In no case shall an officer be required to serve on 
active duty under paragraph (1) for any period in excess of one 
year for each year or part thereof the officer participated in 
the program.
    ``(h) Limitation on Details.--No agreement detailing an 
officer of the armed forces to an accredited medical school or 
school of osteopathy may be entered into during any period in 
which the President is authorized by law to induct persons into 
the armed forces involuntarily. Nothing in this subsection 
shall affect any agreement entered into during any period when 
the President is not authorized by law to so induct persons 
into the armed forces''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2004 the following new item:

``2004a. Detail of commissioned officers as students at medical 
          schools.''.

SEC. 537. INCREASE IN MAXIMUM AMOUNT OF REPAYMENT UNDER EDUCATION LOAN 
                    REPAYMENT FOR OFFICERS IN SPECIFIED HEALTH 
                    PROFESSIONS.

    (a) Increase in Maximum Amount.--Section 2173(e)(2) of 
title 10, United States Code, is amended by striking 
``$22,000'' and inserting ``$60,000''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection 
        (a) shall take effect on October 1, 2006, and shall 
        apply to agreements entered into or revised under 
        section 2173 of title 10, United States Code, on or 
        after that date.
            (2) Prohibition on adjustment.--The adjustment 
        required by the second sentence of section 2173(e)(2) 
        of title 10, United States Code, to be made on October 
        1, 2006, shall not be made.

SEC. 538. HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE 
                    PROGRAM FOR ACTIVE SERVICE.

    (a) Maximum Stipend Amount.--Section 2121(d) of title 10, 
United States Code, is amended--
            (1) by striking ``at the rate of $579 per month'' 
        and inserting ``at a monthly rate established by the 
        Secretary of Defense, but not to exceed a total of 
        $30,000 per year''; and
            (2) by striking ``That rate'' and inserting ``The 
        maximum annual amount of the stipend''.
    (b) Maximum Annual Grant.--Section 2127(e) of such title is 
amended--
            (1) by striking ``$15,000'' and inserting ``in an 
        amount not to exceed $45,000''; and
            (2) by striking ``The amount'' and inserting ``The 
        maximum amount''.
    (c) Report on Program.--Not later than March 1, 2007, the 
Secretary of Defense shall submit to the Congress a report on 
the Health Professions Scholarship and Financial Assistance 
Program for Active Service under subchapter I of chapter 105 of 
title 10, United States Code. The report shall include the 
following:
            (1) An assessment of the success of each military 
        department in achieving its recruiting goals under the 
        program during each of fiscal years 2000 through 2006.
            (2) If any military department failed to achieve 
        its recruiting goals under the program during any 
        fiscal year covered by paragraph (1), an explanation of 
        the failure of the military department to achieve such 
        goal during such fiscal year.
            (3) An assessment of the adequacy of the stipend 
        authorized by section 2121(d) of title 10, United 
        States Code, in meeting the objectives of the program.
            (4) Such recommendations for legislative or 
        administrative action as the Secretary considers 
        appropriate to enhance the effectiveness of the program 
        in meeting the annual recruiting goals of the military 
        departments for medical personnel covered by the 
        program.
    (d) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall take effect on October 1, 2006.
            (2) Prohibition on adjustments.--The adjustments 
        required by the second sentence of subsection (d) of 
        section 2121 of title 10, United States Code, and the 
        second sentence of subsection (e) of section 2127 of 
        such title to be made in 2007 shall not be made.

                     PART III--JUNIOR ROTC PROGRAM

SEC. 539. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTOR 
                    QUALIFICATIONS.

    (a) In General.--Chapter 102 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2033. Instructor qualifications

    ``(a) In General.--In order for a retired officer or 
noncommissioned officer to be employed as an instructor in the 
program, the officer must be certified by the Secretary of the 
military department concerned as a qualified instructor in 
leadership, wellness and fitness, civics, and other courses 
related to the content of the program, according to the 
qualifications set forth in subsection (b)(2) or (c)(2), as 
appropriate.
    ``(b) Senior Military Instructors.--
            ``(1) Role.--Senior military instructors shall be 
        retired officers of the armed forces and shall serve as 
        instructional leaders who oversee the program.
            ``(2) Qualifications.--A senior military instructor 
        shall have the following qualifications:
                    ``(A) Professional military qualification, 
                as determined by the Secretary of the military 
                department concerned.
                    ``(B) Award of a baccalaureate degree from 
                an institution of higher learning.
                    ``(C) Completion of secondary education 
                teaching certification requirements for the 
                program as established by the Secretary of the 
                military department concerned.
                    ``(D) Award of an advanced certification by 
                the Secretary of the military department 
                concerned in core content areas based on--
                            ``(i) accumulated points for 
                        professional activities, services to 
                        the profession, awards, and 
                        recognitions;
                            ``(ii) professional development to 
                        meet content knowledge and 
                        instructional skills; and
                            ``(iii) performance evaluation of 
                        competencies and standards within the 
                        program through site visits and 
                        inspections.
    ``(c) Non-Senior Military Instructors.--
            ``(1) Role.--Non-senior military instructors shall 
        be retired noncommissioned officers of the armed forces 
        and shall serve as instructional leaders and teach 
        independently of, but share program responsibilities 
        with, senior military instructors.
            ``(2) Qualifications.--A non-senior military 
        instructor shall demonstrate a depth of experience, 
        proficiency, and expertise in coaching, mentoring, and 
        practical arts in executing the program, and shall have 
        the following qualifications:
                    ``(A) Professional military qualification, 
                as determined by the Secretary of the military 
                department concerned.
                    ``(B) Award of an associates degree from an 
                institution of higher learning within five 
                years of employment.
                    ``(C) Completion of secondary education 
                teaching certification requirements for the 
                program as established by the Secretary of the 
                military department concerned.
                    ``(D) Award of an advanced certification by 
                the Secretary of the military department 
                concerned in core content areas based on--
                            ``(i) accumulated points for 
                        professional activities, services to 
                        the profession, awards, and 
                        recognitions;
                            ``(ii) professional development to 
                        meet content knowledge and 
                        instructional skills; and
                            ``(iii) performance evaluation of 
                        competencies and standards within the 
                        program through site visits and 
                        inspections.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``2033. Instructor qualifications.''.

SEC. 540. EXPANSION OF MEMBERS ELIGIBLE TO BE EMPLOYED TO PROVIDE 
                    JUNIOR RESERVE OFFICERS' TRAINING CORPS 
                    INSTRUCTION.

    (a) Eligibility of ``Gray-Area'' Guard and Reserve 
Members.--Section 2031 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Instead of, or in addition to, detailing officers and 
noncommissioned officers on active duty under subsection (c)(1) 
and authorizing the employment of retired officers and 
noncommissioned officers who are in receipt of retired pay and 
members of the Fleet Reserve and Fleet Marine Corps Reserve 
under subsection (d), the Secretary of the military department 
concerned may authorize qualified institutions to employ as 
administrators and instructors in the program officers and 
noncommissioned officers who are under 60 years of age and who, 
but for age, would be eligible for retired pay for non-regular 
service under section 12731 of this title and whose 
qualifications are approved by the Secretary and the 
institution concerned and who request such employment, subject 
to the following:
            ``(1) The Secretary concerned shall pay to the 
        institution an amount equal to one-half of the amount 
        paid to the member by the institution for any period, 
        up to a maximum of one-half of the difference between--
                    ``(A) the retired or retainer pay for an 
                active duty officer or noncommissioned officer 
                of the same grade and years of service for such 
                period; and
                    ``(B) the active duty pay and allowances 
                which the member would have received for that 
                period if on active duty.
            ``(2) Notwithstanding the limitation in paragraph 
        (1), the Secretary concerned may pay to the institution 
        more than one-half of the amount paid to the member by 
        the institution if (as determined by the Secretary)--
                    ``(A) the institution is in an 
                educationally and economically deprived area; 
                and
                    ``(B) the Secretary determines that such 
                action is in the national interest.
            ``(3) Payments by the Secretary concerned under 
        this subsection shall be made from funds appropriated 
        for that purpose.
            ``(4) Amounts may be paid under this subsection 
        with respect to a member after the member reaches the 
        age of 60.
            ``(5) Notwithstanding any other provision of law, a 
        member employed by a qualified institution pursuant to 
        an authorization under this subsection is not, while so 
        employed, considered to be on active duty or inactive 
        duty training for any purpose.''.
    (b) Clarification of Status of Retired Members Providing 
Instruction.--Subsection (d) of such section is amended in the 
matter preceding paragraph (1) by inserting ``who are in 
receipt of retired pay'' after ``retired officers and 
noncommissioned officers''.

SEC. 541. EXPANSION OF JUNIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.

    (a) In General.--The Secretaries of the military 
departments shall take appropriate actions to increase the 
number of secondary educational institutions at which a unit of 
the Junior Reserve Officers' Training Corps is organized under 
chapter 102 of title 10, United States Code.
    (b) Expansion Targets.--In increasing under subsection (a) 
the number of secondary educational institutions at which a 
unit of the Junior Reserve Officers' Training Corps is 
organized, the Secretaries of the military departments shall 
seek to organize units at an additional number of institutions 
as follows:
            (1) In the case of Army units, 15 institutions.
            (2) In the case of Navy units, 10 institutions.
            (3) In the case of Marine Corps units, 15 
        institutions.
            (4) In the case of Air Force units, 10 
        institutions.

SEC. 542. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

    (a) Review.--The Secretary of Defense shall conduct a 
review of the 1976 legal opinion issued by the General Counsel 
of the Department of Defense regarding instruction of non-host 
unit students participating in Junior Reserve Officers' 
Training Corps programs. The review shall consider whether 
changes to law after the issuance of that opinion allow in 
certain circumstances for the arrangement for assignment of 
instructors that provides for the travel of an instructor from 
one educational institution to another once during the regular 
school day for the purposes of the Junior Reserve Officers' 
Training Corps program as an authorized arrangement that 
enhances administrative efficiency in the management of the 
program. If the Secretary, as a result of the review, 
determines that such authority is not available, the Secretary 
should also consider whether such authority should be available 
and whether there should be authority to waive the restrictions 
under certain circumstances.
    (b) Report.--The Secretary shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report containing 
the results of the review not later than 180 days after the 
date of the enactment of this Act.
    (c) Interim Authority.--A current institution that has more 
than 70 students and is providing support to another 
educational institutional with more than 70 students and has 
been providing for the assignment of instructors from one 
school to the other may continue to provide such support until 
180 days following receipt of the report under subsection (b).

             PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

SEC. 543. EXPANDED ELIGIBILITY FOR ENLISTED MEMBERS FOR INSTRUCTION AT 
                    NAVAL POSTGRADUATE SCHOOL.

    (a) Certificate Programs and Courses.--Subparagraph (C) of 
subsection (a)(2) of section 7045 of title 10, United States 
Code, is amended by striking ``Navy or Marine Corps'' and 
inserting ``armed forces''.
    (b) Graduate-Level Instruction.--Such subsection is further 
amended--
            (1) by redesignating subparagraph (D) as 
        subparagraph (E); and
            (2) by inserting after subparagraph (C) the 
        following new subparagraph (D):
    ``(D)(i) The Secretary may permit an eligible enlisted 
member of the armed forces to receive graduate-level 
instruction at the Naval Postgraduate School in a program 
leading to a master's degree in a technical, analytical, or 
engineering curriculum.
    ``(ii) To be eligible to be provided instruction under this 
subparagraph, the enlisted member must have been awarded a 
baccalaureate degree by an institution of higher education.
    ``(iii) Instruction under this subparagraph may be provided 
only on a space-available basis.
    ``(iv) An enlisted member who successfully completes a 
course of instruction under this subparagraph may be awarded a 
master's degree under section 7048 of this title.
    ``(v) Instruction under this subparagraph shall be provided 
pursuant to regulations prescribed by the Secretary. Such 
regulations may include criteria for eligibility of enlisted 
members for instruction under this subparagraph and 
specification of obligations for further service in the armed 
forces relating to receipt of such instruction.''.
    (c) Conforming Amendments.--Such section is further 
amended--
            (1) in subparagraph (E) of subsection (a)(2), as 
        redesignated by subsection (b)(1), by striking ``and 
        (C)'' and inserting ``(C), and (D)''; and
            (2) in subsection (b)(2), by striking ``(a)(2)(D)'' 
        and inserting ``(a)(2)(E)''.
    (d) Deadline for Submission of Previously Required 
Report.--The report required by subsection (c) of section 526 
of the National Defense Authorization Act for Fiscal Year 2006 
(Public Law 109-163; 119 Stat. 3246), relating to the rationale 
and plans of the Navy to provide enlisted members an 
opportunity to obtain graduate degrees, shall be submitted, in 
accordance with that subsection, not later than March 30, 2007.
    (e) Repeal of Requirement for Report on Pilot Program.--
            (1) Repeal.--Subsection (d) of section 526 of the 
        National Defense Authorization Act for Fiscal Year 2006 
        (Public Law 109-163; 119 Stat. 3246) is repealed.
            (2) Conforming amendment.--Subsection (c)(2) of 
        such section is amended by striking ``, particularly in 
        the career fields under consideration for the pilot 
        program referred to in subsection (d)''.
    (f) Report on Use of NPS and AFIT.--Not later than March 
30, 2007, the Secretary of the Navy and the Secretary of the 
Air Force shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a joint report on the manner by which each 
Secretary intends to use the Naval Postgraduate School and the 
Air Force Institute of Technology during fiscal years 2008 
through 2013 to meet the overall requirements of the Navy and 
Marine Corps and of the Air Force for enlisted members with 
graduate degrees. The report shall include the following:
            (1) The numbers and occupational specialities of 
        enlisted members that each Secretary plans to enroll as 
        candidates for graduate degrees each year in each of 
        the two schools.
            (2) A description of the graduate degrees that 
        those enlisted members will pursue at those schools.
            (3) Other matters that the two Secretaries jointly 
        consider to be useful for the committees to better 
        understand the future role that the two schools will 
        each have in meeting service requirements for enlisted 
        members with graduate degrees.

                Subtitle D--General Service Authorities

SEC. 546. TEST OF UTILITY OF TEST PREPARATION GUIDES AND EDUCATION 
                    PROGRAMS IN ENHANCING RECRUIT CANDIDATE PERFORMANCE 
                    ON THE ARMED SERVICES VOCATIONAL APTITUDE BATTERY 
                    (ASVAB) AND ARMED FORCES QUALIFICATION TEST (AFQT).

    (a) Requirement for Test.--The Secretary of Defense shall 
conduct a test of the utility of commercially available test 
preparation guides and education programs designed to assist 
recruit candidates achieve scores on military recruit 
qualification testing that better reflect the full potential of 
those recruit candidates in terms of aptitude and mental 
category. The test shall be conducted through the Secretaries 
of the Army, Navy, and Air Force.
    (b) Assessment of Commercially Available Guides and 
Programs.--The test shall assess commercially available test 
preparation guides and education programs designed to enhance 
test performance. The test preparation guides assessed shall 
test both written formats and self-paced computer-assisted 
programs. Education programs assessed may test both self-study 
textbook and computer-assisted courses and instructor-led 
courses.
    (c) Objectives.--The objectives of the test are to 
determine the following:
            (1) The degree to which test preparation assistance 
        degrades test reliability and accuracy.
            (2) The degree to which test preparation assistance 
        allows more accurate testing of skill aptitudes and 
        mental capability.
            (3) The degree to which test preparation assistance 
        allows individuals to achieve higher scores without 
        sacrificing reliability and accuracy.
            (4) What role is recommended for test preparation 
        assistance in military recruiting.
    (d) Control Group.--As part of the test, the Secretary 
shall identify a population of recruit candidates who will not 
receive test preparation assistance and will serve as a control 
group for the test. Data from recruit candidates participating 
in the test and data from recruit candidates in the control 
group shall be compared in terms of both (1) test performance, 
and (2) subsequent duty performance in training and unit 
settings following entry on active duty.
    (e) Number of Participants.--The Secretary shall provide 
test preparation assistance to a minimum of 2,000 recruit 
candidates and shall identify an equal number to be established 
as the control group population.
    (f) Duration of Test.--The Secretary shall begin the test 
not later than nine months after the date of the enactment of 
this Act. The test shall identify participants over a one-year 
period from the start of the test and shall assess duty 
performance for each participant for 18 months following entry 
on active duty. The last participant shall be identified, but 
other participants may not be identified.
    (g) Report on Findings.--Not later than six months after 
completion of the duty performance assessment of the last 
identified participant in the test, 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 providing the findings of the 
Secretary with respect to each of the objectives specified in 
subsection (c) and the Secretary's recommendations.

SEC. 547. CLARIFICATION OF NONDISCLOSURE REQUIREMENTS APPLICABLE TO 
                    CERTAIN SELECTION BOARD PROCEEDINGS.

    (a) Active-Duty Selection Board Proceedings.--
            (1) Extension to all active-duty boards.--Chapter 
        36 of title 10, United States Code, is amended by 
        inserting after section 613 the following new section:

``Sec. 613a. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board 
convened under section 611 this title may not be disclosed to 
any person not a member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, 
and Records.--The discussions and deliberations of a selection 
board described in subsection (a) and any written or 
documentary record of such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any 
        action, suit, or judicial or administrative proceeding 
        without the consent of the Secretary of the military 
        department concerned.''.
            (2) Conforming amendment.--Section 618 of such 
        title is amended by striking subsection (f).
    (b) Reserve Selection Board Proceedings.--Section 14104 of 
such title is amended to read as follows:

``Sec. 14104. Nondisclosure of board proceedings

    ``(a) Nondisclosure.--The proceedings of a selection board 
convened under section 14101 of this title may not be disclosed 
to any person not a member of the board.
    ``(b) Prohibited Uses of Board Discussions, Deliberations, 
and Records.--The discussions and deliberations of a selection 
board described in subsection (a) and any written or 
documentary record of such discussions and deliberations--
            ``(1) are immune from legal process;
            ``(2) may not be admitted as evidence; and
            ``(3) may not be used for any purpose in any 
        action, suit, or judicial or administrative proceeding 
        without the consent of the Secretary of the military 
        department concerned.''.
    (c) Applicability.--Section 613a of title 10, United States 
Code, as added by subsection (a), shall apply with respect to 
the proceedings of all selection boards convened under section 
611 of that title, including selection boards convened before 
the date of the enactment of this Act. Section 14104 of such 
title, as amended by subsection (b), shall apply with respect 
to the proceedings of all selection boards convened under 
section 14101 of that title, including selection boards 
convened before the date of the enactment of this Act.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of 
        subchapter I of chapter 36 of title 10, United States 
        Code, is amended by inserting after the item relating 
        to section 613 the following new item:

``613a. Nondisclosure of board proceedings.''.

            (2) The item relating to section 14104 in the table 
        of sections at the beginning of chapter 1403 of such 
        title is amended to read as follows:

``14104. Nondisclosure of board proceedings.''.

SEC. 548. REPORT ON EXTENT OF PROVISION OF TIMELY NOTICE OF LONG-TERM 
                    DEPLOYMENTS.

    Not later than March 1, 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 on the number of members of the Armed 
Forces (shown by service and within each service by reserve 
component and active component) who, during the period 
beginning on January 1, 2005, and ending on the date of the 
enactment of this Act, have not received at least 30 days 
notice (in the form of an official order) before a deployment 
that will last 180 days or more. With respect to members of the 
reserve components, the report shall describe the degree of 
compliance (or noncompliance) with Department of Defense policy 
concerning the amount of notice to be provided before long-term 
mobilizations or deployments.

                  Subtitle E--Military Justice Matters

SEC. 551. APPLICABILITY OF UNIFORM CODE OF MILITARY JUSTICE TO MEMBERS 
                    OF THE ARMED FORCES ORDERED TO DUTY OVERSEAS IN 
                    INACTIVE DUTY FOR TRAINING STATUS.

    Not later than March 1, 2007, the Secretaries of the 
military departments shall prescribe regulations, or amend 
current regulations, in order to provide that members of the 
Armed Forces who are ordered to duty at locations overseas in 
an inactive duty for training status are subject to the 
jurisdiction of the Uniform Code of Military Justice, pursuant 
to the provisions of section 802(a)(3) of title 10, United 
States Code (article 2(a)(3) of the Uniform Code of Military 
Justice), continuously from the commencement of execution of 
such orders to the conclusion of such orders.

SEC. 552. CLARIFICATION OF APPLICATION OF UNIFORM CODE OF MILITARY 
                    JUSTICE DURING A TIME OF WAR.

    Paragraph (10) of section 802(a) of title 10, United States 
Code (article 2(a) of the Uniform Code of Military Justice), is 
amended by striking ``war'' and inserting ``declared war or a 
contingency operation''.

                   Subtitle F--Decorations and Awards

SEC. 555. AUTHORITY FOR PRESENTATION OF MEDAL OF HONOR FLAG TO LIVING 
                    MEDAL OF HONOR RECIPIENTS AND TO LIVING PRIMARY 
                    NEXT-OF-KIN OF DECEASED MEDAL OF HONOR RECIPIENTS.

    (a) Future Presentations.--Sections 3755, 6257, and 8755 of 
title 10, United States Code, and section 505 of title 14, 
United States Code, are each amended--
            (1) by striking ``after October 23, 2002''; and
            (2) by adding at the end the following new 
        sentence: ``In the case of a posthumous presentation of 
        the medal, the flag shall be presented to the person to 
        whom the medal is presented.''.
    (b) Presentation of Flag for Prior Recipients of Medal of 
Honor.--
            (1) Living recipients.--The President shall provide 
        for the presentation of the Medal of Honor Flag as 
        expeditiously as possible after the date of the 
        enactment of this Act to each living recipient of the 
        Medal of Honor who has not already received a Medal of 
        Honor Flag.
            (2) Survivors of deceased recipients.--In the case 
        of presentation of the Medal of Honor Flag for a 
        recipient of the Medal of Honor who was awarded the 
        Medal of Honor before the date of the enactment of this 
        Act and who is deceased as of such date (or who dies 
        after such date and before the presentation required by 
        paragraph (1)), the President shall provide for 
        posthumous presentation of the Medal of Honor Flag, 
        upon written application therefor, to the primary 
        living next of kin, as determined under regulations or 
        procedures prescribed by the Secretary of Defense for 
        the purposes of this paragraph (and notwithstanding the 
        amendments made by paragraph (2) of subsection (a)).
            (3) Medal of honor flag.--In this subsection, the 
        term ``Medal of Honor Flag'' means the flag designated 
        under section 903 of title 36, United States Code.

SEC. 556. REVIEW OF ELIGIBILITY OF PRISONERS OF WAR FOR AWARD OF THE 
                    PURPLE HEART.

    (a) Report.--Not later than March 1, 2007, the President 
shall transmit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the 
advisability of modifying the criteria for the award of the 
Purple Heart to authorize the award of the Purple Heart--
            (1) to a member of the Armed Forces who dies in 
        captivity as a prisoner of war under unknown 
        circumstances or as a result of conditions and 
        treatment that, under criteria for eligibility for the 
        Purple Heart as in effect on the date of the enactment 
        of this Act, do not qualify the decedent for award of 
        the Purple Heart; and
            (2) to an individual who while a member of the 
        Armed Forces survives captivity as a prisoner of war, 
        but who dies thereafter as a result of disease or 
        disability, or a result of disease and condition and 
        treatment, incurred during such captivity.
    (b) Determination.--As part of the review undertaken in 
order to prepare the report required by subsection (a), the 
President shall make a determination on the advisability of 
expanding eligibility for the award of the Purple Heart to 
deceased servicemembers held as a prisoner of war after 
December 7, 1941, who meet the criteria for eligibility for the 
prisoner-of-war medal under section 1128 of title 10, United 
States Code (including the criterion under subsection (e) of 
that section with respect to honorable conduct), but who do not 
meet the criteria for eligibility for the Purple Heart.
    (c) Requirements.--In making the determination required by 
subsection (b), the President shall take into consideration the 
following:
            (1) The brutal treatment endured by thousands of 
        prisoners of war incarcerated by enemy forces.
            (2) The circumstance that many servicemembers held 
        as prisoners of war died during captivity due to causes 
        that do not meet the criteria for eligibility for award 
        of the Purple Heart, including starvation, abuse, the 
        deliberate withholding of medical treatment for injury 
        or disease, or other causes.
            (3) The circumstance that some members of the Armed 
        Forces died in captivity under circumstances 
        establishing eligibility for the prisoner-of-war medal 
        but under circumstances not otherwise establishing 
        eligibility for the Purple Heart.
            (4) The circumstance that some members and former 
        members of the Armed Forces who were held as prisoners 
        of war and following captivity were issued the 
        prisoner-of-war medal subsequently died due to a 
        disease or disability that was incurred during that 
        captivity, without otherwise having been awarded the 
        Purple Heart due to the injury or conditions resulting 
        in that disease or disability or otherwise having been 
        awarded the Purple Heart for injury incurring during 
        captivity.
            (5) The views of veterans service organizations, 
        including the Military Order of the Purple Heart.
            (6) The importance that has been assigned to 
        determining all available facts before a decision is 
        made to award the Purple Heart.
            (7) The views of the Secretary of Defense and the 
        Chairman of the Joint Chiefs of Staff.

SEC. 557. REPORT ON DEPARTMENT OF DEFENSE PROCESS FOR AWARDING 
                    DECORATIONS.

    (a) Review.--The Secretary of Defense shall conduct a 
review of the policy, procedures, and processes of the military 
departments for awarding decorations to members of the Armed 
Forces.
    (b) Time Periods.--As part of the review under subsection 
(a), the Secretary shall compare the time frames of the awards 
process between active duty and reserve components--
            (1) from the time a recommendation for the award of 
        a decoration is submitted until the time the award of 
        the decoration is approved; and
            (2) from the time the award of a decoration is 
        approved until the time when the decoration is 
        presented to the recipient.
    (c) Reserve Components.--If the Secretary, in conducting 
the review under subsection (a), finds that the timeliness of 
the awards process for members of the reserve components is not 
the same as, or similar to, that for members of the active 
components, the Secretary shall take appropriate steps to 
address the discrepancy.
    (d) Report.--Not later than August 1, 2007, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report containing the Secretary's findings as 
a result of the review under subsection (a), together with a 
plan for implementing whatever changes are determined to be 
appropriate to the process for awarding decorations in order to 
ensure that decorations are awarded in a timely manner, to the 
extent practicable.

               Subtitle G--Matters Relating to Casualties

SEC. 561. AUTHORITY FOR RETENTION AFTER SEPARATION FROM SERVICE OF 
                    ASSISTIVE TECHNOLOGY AND DEVICES PROVIDED WHILE ON 
                    ACTIVE DUTY.

    (a) In General.--Chapter 58 of title 10, United States 
Code, is amended by inserting after section 1150 the following 
new section:

``Sec. 1151. Retention of assistive technology and services provided 
                    before separation

    ``(a) Authority.--A member of the armed forces who is 
provided an assistive technology or assistive technology device 
for a severe or debilitating illness or injury incurred or 
aggravated by such member while on active duty may, under 
regulations prescribed by the Secretary of Defense, be 
authorized to retain such assistive technology or assistive 
technology device upon the separation of the member from active 
service.
    ``(b) Definitions.--In this section, the terms `assistive 
technology' and `assistive technology device' have the meaning 
given those terms in section 3 of the Assistive Technology Act 
of 1998 (29 U.S.C. 3002).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1150 the following new item:

``1151. Retention of assistive technology and services provided before 
          separation.''.

SEC. 562. TRANSPORTATION OF REMAINS OF CASUALTIES DYING IN A THEATER OF 
                    COMBAT OPERATIONS.

    (a) Required Transportation.--In the case of a member of 
the Armed Forces who dies in a combat theater of operations and 
whose remains are returned to the United States through the 
mortuary facility at Dover Air Force Base, Delaware, the 
Secretary concerned, under regulations prescribed by the 
Secretary of Defense, shall provide transportation of the 
remains of that member from Dover Air Force Base to the 
applicable escorted remains destination in accordance with 
section 1482(a)(8) of title 10, United States Code, and this 
section.
    (b) Escorted Remains Destination.--In this section, the 
term ``escorted remains destination'' means the place to which 
remains are authorized to be transported under section 
1482(a)(8) of title 10, United States Code.
    (c) Air Transportation From Dover AFB.--
            (1) Military transportation.--If transportation of 
        remains under subsection (a) includes transportation by 
        air, such transportation (except as provided under 
        paragraph (2)) shall be made by military aircraft or 
        military-contracted aircraft.
            (2) Alternative transportation by aircraft.--The 
        provisions of paragraph (1) shall not be applicable to 
        the transportation of remains by air to the extent that 
        the person designated to direct disposition of the 
        remains directs otherwise.
            (3) Primary mission.--When remains are transported 
        by military aircraft or military-contracted aircraft 
        under this section, the primary mission of the aircraft 
        providing that transportation shall be the 
        transportation of such remains. However, more than one 
        set of remains may be transported on the same flight.
    (d) Escort.--
            (1) In general.--Except as provided in paragraph 
        (2), the Secretary concerned shall ensure that remains 
        transported under this section are continuously 
        escorted from Dover Air Force Base to the applicable 
        escorted remains destination by a member of the Armed 
        Forces in an appropriate grade, as determined by the 
        Secretary.
            (2) Other escort.--If a specific military escort is 
        requested by the person designated to direct 
        disposition of such remains and the Secretary approves 
        that request, then the Secretary is not required to 
        provide an additional military escort under paragraph 
        (1).
    (e) Honor Guard Detail.--
            (1) Provision of detail.--Except in a case in which 
        the person designated to direct disposition of remains 
        requests that no military honor guard be present, the 
        Secretary concerned shall ensure that an honor guard 
        detail is provided in each case of the transportation 
        of remains under this section. The honor guard detail 
        shall be in addition to the escort provided for the 
        transportation of remains under section (d).
            (2) Composition.--An honor guard detail provided 
        under this section shall consist of sufficient members 
        of the Armed Forces to perform the duties specified in 
        paragraph (3). The members of the honor guard detail 
        shall be in uniform.
            (3) Duties.--Except to the extent that the person 
        designated to direct disposition of remains requests 
        that any of the following functions not be performed, 
        an honor guard detail under this section--
                    (A) shall--
                            (i) travel with the remains during 
                        transportation; or
                            (ii) meet the remains at the place 
                        to which transportation by air (or by 
                        rail or motor vehicle, if applicable) 
                        is made for the transfer of the 
                        remains;
                    (B) shall provide appropriate honors at the 
                arrival of the remains referred to in 
                subparagraph (A)(ii) (unless airline or other 
                security requirements do not permit such honors 
                to be provided); and
                    (C) shall participate in the transfer of 
                the remains from an aircraft, when airport and 
                airline security requirements permit, by 
                carrying out the remains with a flag draped 
                over the casket to a hearse or other form of 
                ground transportation for travel to a funeral 
                home or other place designated by the person 
                designated to direct disposition of such 
                remains.
    (f) Secretary Concerned Defined.--In this section, the term 
``Secretary concerned'' has the meaning given that term in 
section 101(a)(9) of title 10, United States Code.
    (g) Effective Date.--This section shall take effect at such 
time as may be prescribed by the Secretary of Defense, but not 
later than January 1, 2007.

SEC. 563. ANNUAL BUDGET DISPLAY OF FUNDS FOR POW/MIA ACTIVITIES OF 
                    DEPARTMENT OF DEFENSE.

    (a) Consolidated Budget Justification.--Chapter 9 of title 
10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 234. POW/MIA activities: display of budget information

    ``(a) Submission With Annual Budget Justification 
Documents.--The Secretary of Defense shall submit to Congress, 
as a part of the defense budget materials for a fiscal year, a 
consolidated budget justification display, in classified and 
unclassified form, that covers all programs and activities of 
Department of Defense POW/MIA accounting and recovery 
organizations.
    ``(b) Requirements for Budget Display.--The budget display 
under subsection (a) for a fiscal year shall include for each 
such organization the following:
            ``(1) A statement of what percentage of the 
        requirements originally requested by the organization 
        in the budget review process that the budget requests 
        funds for.
            ``(2) A summary of actual or estimated expenditures 
        by that organization for the fiscal year during which 
        the budget is submitted and for the fiscal year 
        preceding that year.
            ``(3) The amount in the budget for that 
        organization.
            ``(4) A detailed explanation of the shortfalls, if 
        any, in the funding of any requirement shown pursuant 
        to paragraph (1), when compared to the amount shown 
        pursuant to paragraph (3).
            ``(5) The budget estimate for that organization for 
        the five fiscal years after the fiscal year for which 
        the budget is submitted.
    ``(c) Department of Defense POW/MIA Accounting and Recovery 
Organizations.--In this section, the term `Department of 
Defense POW/MIA accounting and recovery organization' means any 
of the following (and any successor organization):
            ``(1) The Defense Prisoner of War/Missing Personnel 
        Office (DPMO).
            ``(2) The Joint POW/MIA Accounting Command (JPAC).
            ``(3) The Armed Forces DNA Identification 
        Laboratory (AFDIL).
            ``(4) The Life Sciences Equipment Laboratory (LSEL) 
        of the Air Force.
            ``(5) Any other element of the Department of 
        Defense the mission of which (as designated by the 
        Secretary of Defense) involves the accounting for and 
        recovery of members of the armed forces who are missing 
        in action or prisoners of war or who are unaccounted 
        for.
    ``(d) Other Definitions.--In this section:
            ``(1) 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.
            ``(2) 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.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``234. POW/MIA activities: display of budget information.''.

SEC. 564. MILITARY SEVERELY INJURED CENTER.

    (a) Center Required.--In support of the comprehensive 
policy on the provision of assistance to severely wounded or 
injured servicemembers required by section 563 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3269; 10 U.S.C. 113 note), the Secretary of 
Defense shall establish within the Department of Defense a 
center to augment and support the programs and activities of 
the military departments for the provision of such assistance, 
including the programs of the military departments referred to 
in subsection (c).
    (b) Designation.--The center established under subsection 
(a) shall be known as the ``Military Severely Injured Center'' 
(in this section referred to as the ``Center'').
    (c) Programs of the Military Departments.--The programs of 
the military departments referred to in this subsection are the 
following:
            (1) The Army Wounded Warrior Support Program.
            (2) The Navy Safe Harbor Program.
            (3) The Palace HART Program of the Air Force.
            (4) The Marine for Life Injured Support Program of 
        the Marine Corps.
    (d) Activities of Center.--
            (1) In general.--The Center shall carry out such 
        programs and activities to augment and support the 
        programs and activities of the military departments for 
        the provision of assistance to severely wounded or 
        injured servicemembers and their families as the 
        Secretary of Defense, in consultation with the 
        Secretaries of the military departments and the heads 
        of other appropriate departments and agencies of the 
        Federal Government (including the Secretary of Labor 
        and the Secretary of Veterans Affairs), determines 
        appropriate.
            (2) Database.--The activities of the Center under 
        this subsection shall include the establishment and 
        maintenance of a central database. The database shall 
        be transparent and shall be accessible for use by all 
        of the programs of the military departments referred to 
        in subsection (c).
    (e) Resources.--The Secretary of Defense shall allocate to 
the Center such personnel and other resources as the Secretary 
of Defense, in consultation with the Secretaries of the 
military departments, considers appropriate in order to permit 
the Center to carry out effectively the programs and activities 
assigned to the Center under subsection (d).

SEC. 565. COMPREHENSIVE REVIEW ON PROCEDURES OF THE DEPARTMENT OF 
                    DEFENSE ON MORTUARY AFFAIRS.

    (a) Report.--As soon as practicable after the completion of 
a comprehensive review of the procedures of the Department of 
Defense on mortuary affairs, 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 review.
    (b) Additional Elements.--In conducting the comprehensive 
review described in subsection (a), the Secretary shall 
address, in addition to any other matter covered by the review, 
the following:
            (1) The use of additional or increased 
        refrigeration (including icing) in combat theaters in 
        order to enhance preservation of remains.
            (2) The location of refrigeration assets further 
        forward in the field.
            (3) Specific time standards for the movement of 
        remains from combat units.
            (4) The forward location of autopsy and embalming 
        operations.
            (5) Any other matter that the Secretary considers 
        appropriate in order to expedite the return of remains 
        to the United States in a nondecomposed state.

SEC. 566. ADDITIONAL ELEMENTS OF POLICY ON CASUALTY ASSISTANCE TO 
                    SURVIVORS OF MILITARY DECEDENTS.

    Section 562(b) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3267; 10 
U.S.C. 1475 note) is amended by adding at the end the following 
new paragraph:
            ``(12) The process by which the Department of 
        Defense, upon request, provides information (in person 
        and otherwise) to survivors of a military decedent on 
        the cause of, and any investigation into, the death of 
        such military decedent and on the disposition and 
        transportation of the remains of such decedent, which 
        process shall--
                    ``(A) provide for the provision of such 
                information (in person and otherwise) by 
                qualified Department of Defense personnel;
                    ``(B) ensure that information is provided 
                as soon as possible after death and that, when 
                requested, updates are provided, in accordance 
                with the procedures established under this 
                paragraph, in a timely manner when new 
                information becomes available;
                    ``(C) ensure that--
                            ``(i) the initial provision of such 
                        information, and each such update, 
                        relates the most complete and accurate 
                        information available at the time, 
                        subject to limitations applicable to 
                        classified information; and
                            ``(ii) incomplete or unverified 
                        information is identified as such 
                        during the course of the provision of 
                        such information or update; and
                    ``(D) include procedures by which such 
                survivors shall, upon request, receive updates 
                or supplemental information from qualified 
                Department of Defense personnel.''.

SEC. 567. REQUIREMENT FOR DEPLOYING MILITARY MEDICAL PERSONNEL TO BE 
                    TRAINED IN PRESERVATION OF REMAINS UNDER COMBAT OR 
                    COMBAT-RELATED CONDITIONS.

    (a) Requirement.--The Secretary of each military department 
shall ensure that each military health care professional under 
that Secretary's jurisdiction who is deployed to a theater of 
combat operations is trained, before such deployment, in the 
preservation of remains under combat or combat-related 
conditions.
    (b) Matters Covered by Training.--The training under 
subsection (a) shall include, at a minimum, the following:
            (1) Best practices and procedures for the 
        preservation of the remains of a member of the Armed 
        Forces after death, taking into account the conditions 
        likely to be encountered and the objective of returning 
        the remains to the member's family in the best possible 
        condition.
            (2) Practical case studies based on experience of 
        the Armed Forces in a variety of climactic conditions.
    (c) Covered Military Health Care Professionals.--In this 
section, the term ``military health care professional'' means--
            (1) a physician, nurse, nurse practitioner, 
        physician assistant, or combat medic; and
            (2) any other medical personnel with medical 
        specialties who may provide direct patient care and who 
        are designated by the Secretary of the military 
        department concerned.
    (d) Effective Date.--Subsection (a) shall apply with 
respect to any military health care professional who is 
deployed to a theater of combat operations after the end of the 
90-day period beginning on the date of the enactment of this 
Act.

     Subtitle H--Impact Aid and Defense Dependents Education System

SEC. 571. ENROLLMENT IN DEFENSE DEPENDENTS' EDUCATION SYSTEM OF 
                    DEPENDENTS OF FOREIGN MILITARY MEMBERS ASSIGNED TO 
                    SUPREME HEADQUARTERS ALLIED POWERS, EUROPE.

    (a) Temporary Enrollment Authority.--Section 1404A of the 
Defense Dependents' Education Act of 1978 (20 U.S.C. 923a) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``of the children'' and 
                inserting ``of--
    ``(1) the children'';
                    (B) by striking the period at the end and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) the children of a foreign military member 
        assigned to the Supreme Headquarters Allied Powers, 
        Europe, but only in a school of the defense dependents' 
        education system in Mons, Belgium, and only through the 
        2010-2011 school year.''; and
            (2) by adding at the end the following new 
        subsection:
    ``(c) Special Rules Regarding Enrollment of Dependents of 
Foreign Military Members Assigned to Supreme Headquarters 
Allied Powers, Europe.--(1) In the regulations required by 
subsection (a), the Secretary shall prescribe a methodology 
based on the estimated total number of dependents of sponsors 
under section 1414(2) enrolled in schools of the defense 
dependents' education system in Mons, Belgium, to determine the 
number of children described in paragraph (2) of subsection (a) 
who will be authorized to enroll under such subsection.
    ``(2) If the number of children described in paragraph (2) 
of subsection (a) who seek enrollment in schools of the defense 
dependents' education system in Mons, Belgium, exceeds the 
number authorized by the Secretary under paragraph (1), the 
Secretary may enroll the additional children on a space-
available, tuition-free basis notwithstanding section 
1404(d)(2).''.
    (b) Report on Long-Term Plan for Education of Dependents of 
Military Personnel Assigned to Shape.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a report evaluating 
alternatives for the education of dependents of United States 
military personnel and dependents of foreign military personnel 
assigned to Supreme Headquarters Allied Powers, Europe, 
including--
            (1) an evaluation of the feasibility of 
        establishing an international school at Supreme 
        Headquarters Allied Powers, Europe; and
            (2) an estimate of the timeframe necessary for 
        transition to any new model for educating such 
        dependents.

SEC. 572. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
                    AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE 
                    ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                    EMPLOYEES.

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

SEC. 573. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

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

SEC. 574. PLAN AND AUTHORITY TO ASSIST LOCAL EDUCATIONAL AGENCIES 
                    EXPERIENCING GROWTH IN ENROLLMENT DUE TO FORCE 
                    STRUCTURE CHANGES, RELOCATION OF MILITARY UNITS, OR 
                    BASE CLOSURES AND REALIGNMENTS.

    (a) Plan Required.--Not later than January 1, 2007, the 
Secretary of Defense shall submit to the congressional defense 
committees a report setting forth a plan to provide assistance 
to local educational agencies that experience growth in the 
enrollment of military dependent students as a result of any of 
the following events:
            (1) Force structure changes.
            (2) The relocation of a military unit.
            (3) The closure or realignment of military 
        installations pursuant to defense base closure and 
        realignment under the base closure laws.
    (b) Elements.--The report required by subsection (a), and 
each updated report required by subsection (c), shall include 
the following:
            (1) An identification, current as of the date of 
        the report, of the total number of military dependent 
        students who are anticipated to be arriving at or 
        departing from military installations as a result of 
        any event described in subsection (a), including--
                    (A) an identification of the military 
                installations affected by such arrivals and 
                departures;
                    (B) an estimate of the number of such 
                students arriving at or departing from each 
                such installation; and
                    (C) the anticipated schedule of such 
                arrivals and departures.
            (2) Such recommendations as the Office of Economic 
        Adjustment of the Department of Defense considers 
        appropriate for means of assisting affected local 
        educational agencies in accommodating increases in 
        enrollment of military dependent students as a result 
        of any such event.
            (3) A plan for outreach to be conducted to affected 
        local educational agencies, commanders of military 
        installations, and members of the Armed Forces and 
        civilian personnel of the Department of Defense 
        regarding information on the assistance to be provided 
        under the plan under subsection (a).
    (c) Updated Reports.--Not later than March 1, 2008, and 
annually thereafter to coincide with the submission of the 
budget of the President for a fiscal year under section 1105 of 
title 31, United States Code, the Secretary of Defense shall 
submit to the congressional defense committees an update of the 
report required by subsection (a).
    (d) Transition of Military Dependents From Department of 
Defense Dependent Schools to Other Schools.--During the period 
beginning on the date of the enactment of this Act and ending 
on September 30, 2011, the Secretary of Defense shall work 
collaboratively with the Secretary of Education in any efforts 
to ease the transition of military dependent students from 
attendance in Department of Defense dependent schools to 
attendance in schools of local educational agencies. The 
Secretary of Defense may use funds of the Department of Defense 
Education Activity to share expertise and experience of the 
Activity with local educational agencies as military dependent 
students make such transition, including such a transition 
resulting from the closure or realignment of military 
installations under a base closure law, global rebasing, and 
force restructuring.
    (e) Definitions.--In this section:
            (1) The term ``base closure law'' has the meaning 
        given that term in section 101 of title 10, United 
        States Code.
            (2) The term ``local educational agency'' has the 
        meaning given that term in section 8013(9) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7713(9)).
            (3) The term ``military dependent students'' refers 
        to--
                    (A) elementary and secondary school 
                students who are dependents of members of the 
                Armed Forces; and
                    (B) elementary and secondary school 
                students who are dependents of civilian 
                employees of the Department of Defense.

SEC. 575. PILOT PROGRAM ON PARENT EDUCATION TO PROMOTE EARLY CHILDHOOD 
                    EDUCATION FOR DEPENDENT CHILDREN AFFECTED BY 
                    MILITARY DEPLOYMENT OR RELOCATION OF MILITARY 
                    UNITS.

    (a) Pilot Program Authorized.--Using such funds as may be 
appropriated for this purpose, the Secretary of Defense may 
carry out a pilot program on the provision of educational and 
support tools to the parents of preschool-age children--
            (1) whose parent or parents serve as members of the 
        Armed Forces on active duty (including members of the 
        Selected Reserve on active duty pursuant to a call or 
        order to active duty of 180 days or more); and
            (2) who are affected by the deployment of their 
        parent or parents or the relocation of the military 
        unit of which their parent or parents are a member.
    (b) Purpose.--The purpose of the pilot program is to 
develop models for improving the capability of military child 
and youth programs on or near military installations to provide 
assistance to military parents with young children through a 
program of activities focusing on the unique needs of children 
described in subsection (a).
    (c) Limits on Commencement and Duration of Program.--The 
Secretary of Defense may not commence the pilot program before 
October 1, 2007, and shall conclude the pilot program not later 
than the end of the three-year period beginning on the date on 
which the Secretary commences the program.
    (d) Scope of Program.--Under the pilot program, the 
Secretary of Defense shall utilize one or more models, 
demonstrated through research, of universal access of parents 
of children described in subsection (a) to assistance under the 
pilot program to achieve the following goals:
            (1) The identification and mitigation of specific 
        risk factors for such children related to military 
        life.
            (2) The maximization of the educational readiness 
        of such children.
    (e) Locations and Goals.--
            (1) Selection of participating installations.--In 
        selecting military installations to participate in the 
        pilot program, the Secretary of Defense shall limit 
        selection to those military installations whose 
        military personnel are experiencing significant 
        transition or deployment or which are undergoing 
        transition as a result of the relocation or activation 
        of military units or activities relating to defense 
        base closure and realignment.
            (2) Selection of certain installations.--At least 
        one of the installations selected under paragraph (1) 
        shall be a military installation that will permit, 
        under the pilot program, the meaningful evaluation of a 
        model under subsection (d) that provides outreach to 
        parents in families with a parent who is a member of 
        the National Guard or Reserve, which families live more 
        than 40 miles from the installation.
            (3) Goals of participating installations.--If a 
        military installation is selected under paragraph (1), 
        the Secretary shall require appropriate personnel at 
        the military installation to develop goals, and 
        specific outcome measures with respect to such goals, 
        for the conduct of the pilot program at the 
        installation.
            (4) Evaluation required.--Upon completion of the 
        pilot program at a military installation, the personnel 
        referred to in paragraph (3) at the installation shall 
        be required to conduct an evaluation and assessment of 
        the success of the pilot program at the installation in 
        meeting the goals developed for that installation.
    (f) Guidelines.--As part of conducting the pilot program, 
the Secretary of Defense shall issue guidelines regarding--
            (1) the goals to be developed under subsection 
        (e)(3);
            (2) specific outcome measures; and
            (3) the selection of curriculum and the conduct of 
        developmental screening under the pilot program.
    (g) Report.--Upon completion of the pilot program, 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 all of the evaluations 
prepared under subsection (e)(4) for the military installations 
participating in the pilot program. The report shall describe 
the results of the evaluations, and may include such 
recommendations for legislative or administrative action as the 
Secretary considers appropriate in light of the evaluations, 
including recommendations for the continuation of the pilot 
program.

                Subtitle I--Armed Forces Retirement Home

SEC. 578. REPORT ON LEADERSHIP AND MANAGEMENT OF THE ARMED FORCES 
                    RETIREMENT HOME.

    Not later than 30 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report evaluating the 
following:
            (1) The effect of changing the title of the Chief 
        Operating Officer of the Armed Forces Retirement Home 
        to a chief executive officer who will be responsible to 
        the Secretary of Defense for the overall direction, 
        operation, and management of the Retirement Home.
            (2) The effect of no longer permitting a civilian 
        with experience as a continuing care retirement 
        community professional to serve as the Director for a 
        facility of the Armed Forces Retirement Home, but to 
        instead limit eligibility for such positions to members 
        of the Armed Forces serving on active duty in a grade 
        below brigadier general or, in the case of the Navy, 
        rear admiral (lower half).
            (3) The management of the Armed Forces Retirement 
        Home and whether or not there is a need for a greater 
        role by members of the Armed Forces serving on active 
        duty in the overall direction, operation, and 
        management of the Retirement Home.

SEC. 579. REPORT ON LOCAL BOARDS OF TRUSTEES OF THE ARMED FORCES 
                    RETIREMENT HOME.

    Not later than 30 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report describing the 
following:
            (1) The current composition and activities of the 
        Local Board of Trustees of the Armed Forces Retirement 
        Home--Washington under section 1516 of the Armed Forces 
        Retirement Home Act of 1991 (24 U.S.C. 416).
            (2) The current composition and activities of the 
        Local Board of Trustees of the Armed Forces Retirement 
        Home--Gulfport under such section.
            (3) The feasibility and effect of including as a 
        member of each Local Board of Trustees of the Armed 
        Forces Retirement Home a member of the Armed Forces who 
        is serving on active duty in the grade of brigadier 
        general, or in the case of the Navy, rear admiral 
        (lower half).

                          Subtitle J--Reports

SEC. 581. REPORT ON PERSONNEL REQUIREMENTS FOR AIRBORNE ASSETS 
                    IDENTIFIED AS LOW-DENSITY, HIGH-DEMAND AIRBORNE 
                    ASSETS.

    (a) Report Required.--Not later than 120 days after the 
date of the enactment of this Act, 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 personnel requirements for airborne 
assets identified as Low-Density, High-Demand Airborne Assets 
based on combatant commander requirements to conduct and 
sustain operations for the global war on terrorism.
    (b) Matter To Be Included.--The report shall include the 
following for each airborne asset identified as a Low-Density, 
High-Demand Airborne Asset:
            (1) The numbers of operations and maintenance crews 
        to meet tasking contemplated to conduct operations for 
        the global war on terrorism.
            (2) The current numbers of operations and 
        maintenance crews.
            (3) If applicable, shortages of operations and 
        maintenance crews.
            (4) Whether such shortages are addressed in the 
        future-years defense program.
            (5) Whether end-strength increases are required to 
        meet any such shortages.
            (6) Estimated manpower costs of personnel needed to 
        address shortfalls.
            (7) If applicable, the number and types of 
        equipment needed to address training shortfalls.

SEC. 582. REPORT ON FEASIBILITY OF ESTABLISHMENT OF MILITARY ENTRANCE 
                    PROCESSING COMMAND STATION ON GUAM.

    (a) Review.--The Secretary of Defense shall review the 
feasibility and cost effectiveness of establishing on Guam a 
station of the Military Entrance Processing Command to process 
new recruits for the Armed Forces who are drawn from the 
western Pacific region. For the purposes of the review, the 
cost effectiveness of establishing such a facility on Guam 
shall be measured, in part, against the system in effect in 
early 2006 of using Hawaii and other locations for the 
processing of new recruits from Guam and other locations in the 
western Pacific region.
    (b) Report.--Not later than June 1, 2007, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report providing the results of the study 
under subsection (a).

SEC. 583. INCLUSION IN ANNUAL DEPARTMENT OF DEFENSE REPORT ON SEXUAL 
                    ASSAULTS OF INFORMATION ON RESULTS OF DISCIPLINARY 
                    ACTIONS.

    Section 577(f)(2)(B) of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 1927) is amended to read as follows:
            ``(B) A synopsis of each such substantiated case 
        and, for each such case, the disciplinary action taken 
        in the case, including the type of disciplinary or 
        administrative sanction imposed, if any.''.

SEC. 584. REPORT ON PROVISION OF ELECTRONIC COPY OF MILITARY RECORDS ON 
                    DISCHARGE OR RELEASE OF MEMBERS FROM THE ARMED 
                    FORCES.

    (a) Report Required.--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 feasibility and advisability of providing an electronic 
copy of military records (including all military service, 
medical, and other military records) to members of the Armed 
Forces on their discharge or release from the Armed Forces.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) An estimate of the costs of the provision of 
        military records as described in subsection (a).
            (2) An assessment of providing military records as 
        described in that subsection through the distribution 
        of a portable, readily accessible medium (such as a 
        computer disk or other similar medium) containing such 
        records.
            (3) A description and assessment of the mechanisms 
        required to ensure the privacy of members of the Armed 
        Forces in providing military records as described in 
        that subsection.
            (4) An assessment of the benefits to the members of 
        the Armed Forces of receiving their military records as 
        described in that subsection.
            (5) If the Secretary determines that providing 
        military records to members of the Armed Forces as 
        described in that subsection is feasible and advisable, 
        a plan (including a schedule) for providing such 
        records to members of the Armed Forces as so described 
        in order to ensure that each member of the Armed Forces 
        is provided such records upon discharge or release from 
        the Armed Forces.
            (6) Any other matter to relating to the provision 
        of military records as described in that subsection 
        that the Secretary considers appropriate.

SEC. 585. REPORT ON OMISSION OF SOCIAL SECURITY ACCOUNT NUMBERS FROM 
                    MILITARY IDENTIFICATION CARDS.

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report setting forth the assessment 
of the Secretary of the feasibility of utilizing military 
identification cards that do not contain, display, or exhibit 
the social security account number of the individual identified 
by a military identification card.
    (b) Military Identification Card Defined.--In this section, 
the term ``military identification card'' means a card or other 
form of identification used for purposes of demonstrating 
eligibility for any benefit from the Department of Defense.

SEC. 586. REPORT ON MAINTENANCE AND PROTECTION OF DATA HELD BY THE 
                    SECRETARY OF DEFENSE AS PART OF THE DEPARTMENT OF 
                    DEFENSE JOINT ADVERTISING, MARKET RESEARCH AND 
                    STUDIES (JAMRS) PROGRAM.

    Not later than 120 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 how the data, including social 
security account numbers, held by the Secretary as part of the 
Joint Advertising, Market Research and Studies (JAMRS) program 
of the Department of Defense are maintained and protected, 
including a description of the security measures in place to 
prevent unauthorized access or inadvertent disclosure of such 
data that could lead to identity theft.

SEC. 587. COMPTROLLER GENERAL REPORT ON MILITARY CONSCIENTIOUS 
                    OBJECTORS.

    (a) Report Required.--Not later than September 1, 2007, the 
Comptroller General shall submit to Congress a report 
concerning members of the Armed Forces who claimed status as a 
military conscientious objector between September 11, 2001, and 
December 31, 2006.
    (b) Content of Report.--The report required by subsection 
(a) shall specifically address the following:
            (1) The number of all applications for status as a 
        military conscientious objector, broken down by Armed 
        Force, including the Coast Guard, and regular and 
        reserve components.
            (2) Number of discharges or reassignments given.
            (3) The process generally used to consider 
        applications, including average processing times and 
        any provision for assignment or reassignment of members 
        while their application is pending.
            (4) Reasons for approval or disapproval of 
        applications.
            (5) Any difference in benefits upon discharge as a 
        military conscientious objector compared to other 
        discharges.
            (6) Pre-war statistical comparisons.

                       Subtitle K--Other Matters

SEC. 591. MODIFICATION IN DEPARTMENT OF DEFENSE CONTRIBUTIONS TO 
                    MILITARY RETIREMENT FUND.

    (a) Determination of Contributions to the Fund.--
            (1) Calculation of annual department of defense 
        contribution.--Subsection (b)(1) of section 1465 of 
        title 10, United States Code, is amended--
                    (A) in subparagraph (A)(ii), by striking 
                ``to members of'' and all that follows and 
                inserting ``for active duty (other than the 
                Coast Guard) and for full-time National Guard 
                duty (other than full-time National Guard duty 
                for training only), but excluding the amount 
                expected to be paid for any duty that would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title.''; and
                    (B) in subparagraph (B)(ii)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``Coast Guard and 
                        other than members on full-time 
                        National Guard duty other than for 
                        training) who are'' and inserting 
                        ``Coast Guard) for service''.
            (2) Quadrennial actuarial valuation.--Subsection 
        (c)(1) of such section is amended--
                    (A) in subparagraph (A), by striking ``for 
                members of the armed forces'' and all that 
                follows through ``for training only)'' and 
                inserting ``for active duty (other than the 
                Coast Guard) and for full-time National Guard 
                duty (other than full-time National Guard duty 
                for training only), but excluding the amount 
                expected to be paid for any duty that would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``Coast Guard and 
                        other than members on full-time 
                        National Guard duty other than for 
                        training) who are'' and inserting 
                        ``Coast Guard) for service''.
    (b) Payments Into the Fund.--Section 1466(a) of such title 
is amended--
            (1) in paragraph (1)(B), by striking ``by members'' 
        and all that follows and inserting ``for active duty 
        (other than the Coast Guard) and for full-time National 
        Guard duty (other than full-time National Guard duty 
        for training only), but excluding the amount expected 
        to be paid for any duty that would be excluded for 
        active-duty end strength purposes by section 115(i) of 
        this title''; and
            (2) in paragraph (2)(B)--
                    (A) by striking ``Ready Reserve'' and 
                inserting ``Selected Reserve''; and
                    (B) by striking ``Coast Guard and other 
                than members on full-time National Guard duty 
                other than for training) who are'' and 
                inserting ``Coast Guard) for service''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2007.

SEC. 592. REVISION IN GOVERNMENT CONTRIBUTIONS TO MEDICARE-ELIGIBLE 
                    RETIREE HEALTH CARE FUND.

    (a) Medicare-Eligible Retiree Health Care Fund.--Section 
1111 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``of the 
        Department of Defense'' and inserting ``of the 
        uniformed services'' ; and
            (2) in subsection (b), by adding at the end of the 
        following new paragraph:
            ``(5) The term `members of the uniformed services 
        on active duty' does not include a cadet at the United 
        States Military Academy, the United States Air Force 
        Academy, or the Coast Guard Academy or a midshipman at 
        the United States Naval Academy.''.
    (b) Determination of Contributions to the Fund.--Section 
1115 of such title is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(B), by striking ``on 
                active duty'' and all that follows through 
                ``training only)'' and inserting the following: 
                ``on active duty and full-time National Guard 
                duty, but excluding any member who would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in paragraph (2)(B)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``(other than 
                        members on full-time National Guard 
                        duty other than for training)''; and
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by striking ``on 
                active duty'' and all that follows through 
                ``training only)'' and inserting the following: 
                ``on active duty and full-time National Guard 
                duty, but excluding any member who would be 
                excluded for active-duty end strength purposes 
                by section 115(i) of this title''; and
                    (B) in paragraph (1)(B)--
                            (i) by striking ``Ready Reserve'' 
                        and inserting ``Selected Reserve''; and
                            (ii) by striking ``(other than 
                        members on full-time National Guard 
                        duty other than for training)''.
    (c) Effective Date.--The amendments made by this section 
shall take effect with respect to payments under chapter 56 of 
title 10, United States Code, beginning with fiscal year 2008.

SEC. 593. DENTAL CORPS OF THE NAVY BUREAU OF MEDICINE AND SURGERY.

    (a) Deletion of References to Dental Division.--Section 
5138 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence; and
                    (B) by striking ``the Dental Division'' and 
                inserting ``the Dental Corps'';
            (2) in subsection (b), by striking ``Dental 
        Division'' and inserting ``Dental Corps''; and
            (3) in subsection (c)--
                    (A) by striking ``Dental Division'' at the 
                end of the first sentence and inserting 
                ``Dental Corps''; and
                    (B) by striking ``that Division'' at the 
                end of the second sentence and inserting ``the 
                Chief of the Dental Corps''.
    (b) Functions of Chief of Dental Corps.--Subsection (d) of 
such section is amended to read as follows:
    ``(d) The Chief of the Dental Corps shall--
            ``(1) establish professional standards and policies 
        for dental practice;
            ``(2) initiate and recommend action pertaining to 
        complements, strength, appointments, advancement, 
        training assignment, and transfer of dental personnel; 
        and
            ``(3) serve as the advisor for the Bureau on all 
        matters relating directly to dentistry.''.
    (c) Further Clarifying Amendments.--Subsection (c) of such 
section is further amended--
            (1) by striking ``so'' after ``shall be''; and
            (2) by striking ``that all such functions will be'' 
        and inserting ``so that all such functions are''.
    (d) Clerical Amendments.--
            (1) The heading of such section is amended to read 
        as follows:

``Sec. 5138. Bureau of Medicine and Surgery: Dental Corps; Chief; 
                    functions''.

            (2) The item relating to such section in the table 
        of sections at the beginning of chapter 513 of such 
        title is amended to read as follows:

``5138. Bureau of Medicine and Surgery: Dental Corps; Chief; 
          functions.''.

SEC. 594. PERMANENT AUTHORITY FOR PRESENTATION OF RECOGNITION ITEMS FOR 
                    RECRUITMENT AND RETENTION PURPOSES.

    Section 2261 of title 10, United States Code, is amended by 
striking subsection (d).

SEC. 595. PERSONS AUTHORIZED TO ADMINISTER ENLISTMENT AND APPOINTMENT 
                    OATHS.

    (a) Enlistment Oath.--Section 502 of title 10, United 
States Code, is amended--
            (1) by inserting ``(a) Enlistment Oath.--'' before 
        ``Each person enlisting'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following new 
        subsection:
    ``(b) Who May Administer.--The oath may be taken before the 
President, the Vice-President, the Secretary of Defense, any 
commissioned officer, or any other person designated under 
regulations prescribed by the Secretary of Defense.''.
    (b) Oaths Generally.--Section 1031 of such title is amended 
by striking ``Any commissioned officer of any component of an 
armed force, whether or not on active duty, may administer any 
oath'' and inserting ``The President, the Vice-President, the 
Secretary of Defense, any commissioned officer, and any other 
person designated under regulations prescribed by the Secretary 
of Defense may administer any oath''.

SEC. 596. MILITARY VOTING MATTERS.

    (a) Repeal of Requirement for Periodic Inspector General 
Installation Visits for Assessment of Voting Assistance Program 
Compliance.--Section 1566 of title 10, United States Code, is 
amended by striking subsection (d).
    (b) Use of Electronic Voting Technology.--
            (1) Continuation of interim voting assistance 
        system.--The Secretary of Defense shall continue the 
        Interim Voting Assistance System (IVAS) ballot request 
        program with respect to all absent uniformed services 
        voters (as defined under section 107(1) of the 
        Uniformed and Overseas Citizens Absentee Voting Act (42 
        U.S.C. 1973ff-6(1))) and overseas employees of the 
        Department of Defense for the general election and all 
        elections through December 31, 2006.
            (2) Reports.--
                    (A) In general.--Not later than 30 days 
                after the date of the regularly scheduled 
                general election for Federal office for 
                November 2006, the Secretary of Defense shall 
                submit to the Congress a report setting forth--
                            (i) an assessment of the success of 
                        the implementation of the Interim 
                        Voting Assistance System ballot request 
                        program carried out under paragraph 
                        (1);
                            (ii) recommendations for 
                        continuation of the Interim Voting 
                        Assistance System and for improvements 
                        to that system; and
                            (iii) an assessment of available 
                        technologies and other means of 
                        achieving enhanced use of electronic 
                        and Internet-based capabilities under 
                        the Interim Voting Assistance System.
                    (B) Future elections.--Not later than May 
                15, 2007, the Secretary of Defense shall submit 
                to the Congress a report setting forth in 
                detail plans for expanding the use of 
                electronic voting technology for individuals 
                covered under the Uniformed and Overseas 
                Citizens Absentee Voting Act (42 U.S.C. 1973ff 
                et seq.) for elections through November 30, 
                2010.
    (c) Comptroller General Report.--Not later than March 1, 
2007, the Comptroller General of the United States shall submit 
to Congress a report containing the assessment of the 
Comptroller General with respect to the following:
            (1) The programs and activities undertaken by the 
        Department of Defense to facilitate voter registration, 
        transmittal of ballots to absentee voters, and voting 
        utilizing electronic means of communication (such as 
        electronic mail and fax transmission) for military and 
        civilian personnel covered by the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff 
        et seq.).
            (2) The progress of the Department of Defense and 
        the Election Assistance Commission in developing a 
        secure, deployable system for Internet-based electronic 
        voting pursuant to the amendment made by section 567 of 
        the Ronald W. Reagan National Defense Authorization Act 
        for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 
        1919).
    (d) Repeal of Expired Provision.--Section 1566(g)(2) of 
title 10, United States Code, is amended by striking the last 
sentence.

SEC. 597. PHYSICAL EVALUATION BOARDS.

    (a) In General.--
            (1) Procedural requirements.--Chapter 61 of title 
        10, United States Code, is amended by adding at the end 
        the following new section:

``Sec. 1222. Physical evaluation boards

    ``(a) Response to Applications and Appeals.--The Secretary 
of each military department shall ensure, in the case of any 
member of the armed forces appearing before a physical 
evaluation board under that Secretary's supervision, that 
documents announcing a decision of the board in the case convey 
the findings and conclusions of the board in an orderly and 
itemized fashion with specific attention to each issue 
presented by the member in regard to that member's case. The 
requirement under the preceding sentence applies to a case both 
during initial consideration and upon subsequent consideration 
due to appeal by the member or other circumstance.
    ``(b) Liaison Officer (PEBLO) Requirements and Training.--
(1) The Secretary of Defense shall prescribe regulations 
establishing--
            ``(A) a requirement for the Secretary of each 
        military department to make available to members of the 
        armed forces appearing before physical evaluation 
        boards operated by that Secretary employees, designated 
        as physical evaluation board liaison officers, to 
        provide advice, counsel, and general information to 
        such members on the operation of physical evaluation 
        boards operated by that Secretary; and
            ``(B) standards and guidelines concerning the 
        training of such physical evaluation board liaison 
        officers.
    ``(2) The Secretary shall ensure compliance by the 
Secretary of each military department with physical evaluation 
board liaison officer requirements and training standards and 
guidelines at least once every three years.
    ``(c) Standardized Staff Training and Operations.--(1) The 
Secretary of Defense shall prescribe regulations on standards 
and guidelines concerning the physical evaluation board 
operated by each of the Secretaries of the military departments 
with regard to--
            ``(A) assignment and training of staff;
            ``(B) operating procedures; and
            ``(C) timeliness of board decisions.
    ``(2) The Secretary shall ensure compliance with standards 
and guidelines prescribed under paragraph (1) by each physical 
evaluation board at least once every three years.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by adding at 
        the end the following new item:

``1222.  Physical evaluation boards.''.

    (b) Effective Date.--Section 1222 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to decisions rendered on cases commenced more than 120 
days after the date of the enactment of this Act.

SEC. 598. MILITARY ID CARDS FOR RETIREE DEPENDENTS WHO ARE PERMANENTLY 
                    DISABLED.

    (a) In General.--Subsection (a) of section 1060b of title 
10, United States Code, is amended to read as follows:
    ``(a) Issuance of Permanent ID Card.--(1) In issuing 
military ID cards to retiree dependents, the Secretary 
concerned shall issue a permanent ID card (not subject to 
renewal) to any such retiree dependent as follows:
            ``(A) A retiree dependent who has attained 75 years 
        of age.
            ``(B) A retiree dependent who is permanently 
        disabled.
    ``(2) A permanent ID card shall be issued to a retiree 
dependent under paragraph (1)(A) upon the expiration, after the 
retiree dependent attains 75 years of age, of any earlier, 
renewable military card or, if earlier, upon the request of the 
retiree dependent after attaining age 75.''.
    (b) Conforming and Clerical Amendments.--
            (1) Heading amendment.--The heading of such section 
        is amended to read as follows:

``Sec. 1060b. Military ID cards: dependents and survivors of 
                    retirees''.

            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 53 of such title is amended by 
        striking the item relating to section 1060b and 
        inserting the following new item:

``1060b. Military ID cards: dependents and survivors of retirees.''.

SEC. 599. UNITED STATES MARINE BAND AND UNITED STATES MARINE DRUM AND 
                    BUGLE CORPS.

    (a) In General.--Section 6222 of title 10, United States 
Code, is amended to read as follows:

``Sec. 6222. United States Marine Band; United States Marine Drum and 
                    Bugle Corps: composition; appointment and promotion 
                    of members

    ``(a) United States Marine Band.--The band of the Marine 
Corps shall be composed of one director, two assistant 
directors, and other personnel in such numbers and grades as 
the Secretary of the Navy determines to be necessary.
    ``(b) United States Marine Drum and Bugle Corps.--The drum 
and bugle corps of the Marine Corps shall be composed of one 
commanding officer and other personnel in such numbers and 
grades as the Secretary of the Navy determines to be necessary.
    ``(c) Appointment and Promotion.--(1) The Secretary of the 
Navy shall prescribe regulations for the appointment and 
promotion of members of the Marine Band and members of the 
Marine Drum and Bugle Corps.
    ``(2) The President may from time to time appoint members 
of the Marine Band and members of the Marine Drum and Bugle 
Corps to grades not above the grade of captain. The authority 
of the President to make appointments under this paragraph may 
be delegated only to the Secretary of Defense.
    ``(3) The President, by and with the advice and consent of 
the Senate, may from time to time appoint any member of the 
Marine Band or of the Marine Drum and Bugle Corps to a grade 
above the grade of captain.
    ``(d) Retirement.--Unless otherwise entitled to higher 
retired grade and retired pay, a member of the Marine Band or 
Marine Drum and Bugle Corps who holds, or has held, an 
appointment under this section is entitled, when retired, to be 
retired in, and with retired pay based on, the highest grade 
held under this section in which the Secretary of the Navy 
determines that such member served satisfactorily.
    ``(e) Revocation of Appointment.--The Secretary of the Navy 
may revoke any appointment of a member of the Marine Band or 
Marine Drum and Bugle Corps. When a member's appointment to a 
commissioned grade terminates under this subsection, such 
member is entitled, at the option of such member--
            ``(1) to be discharged from the Marine Corps; or
            ``(2) to revert to the grade and status such member 
        held at the time of appointment under this section.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 565 of such title is amended by striking 
the item relating to section 6222 and inserting the following 
new item:

``6222. United States Marine Band; United States Marine Drum and Bugle 
          Corps: composition; appointment and promotion of members.''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2007 increase in military basic pay and reform of 
          basic pay rates.
Sec. 602. Increase in maximum rate of basic pay for general and flag 
          officer grades to conform to increase in pay cap for Senior 
          Executive Service personnel.
Sec. 603. One-year extension of prohibition against requiring certain 
          injured members to pay for meals provided by military 
          treatment facilities.
Sec. 604. Availability of second basic allowance for housing for certain 
          reserve component or retired members serving in support of 
          contingency operations.
Sec. 605. Extension of temporary continuation of housing allowance for 
          dependents of members dying on active duty to spouses who are 
          also members.
Sec. 606. Payment of full premium for coverage under Servicemembers' 
          Group Life Insurance program during service in Operation 
          Enduring Freedom or Operation Iraqi Freedom.
Sec. 607. Clarification of effective date of prohibition on compensation 
          for correspondence courses.
Sec. 608. Extension of pilot program on contributions to Thrift Savings 
          Plan for initial enlistees in the Army.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
          reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
          health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
          officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
          and special pays.
Sec. 615. Expansion of eligibility of dental officers for additional 
          special pay.
Sec. 616. Increase in maximum annual rate of special pay for Selected 
          Reserve health care professionals in critically short wartime 
          specialties.
Sec. 617. Expansion and enhancement of accession bonus authorities for 
          certain officers in health care specialities.
Sec. 618. Authority to provide lump sum payment of nuclear officer 
          incentive pay.
Sec. 619. Increase in maximum amount of nuclear career accession bonus.
Sec. 620. Increase in maximum amount of incentive bonus for transfer 
          between Armed Forces.
Sec. 621. Additional authorities and incentives to encourage retired 
          members and reserve component members to volunteer to serve on 
          active duty in high-demand, low-density assignments.
Sec. 622. Accession bonus for members of the Armed Forces appointed as 
          commissioned officers after completing officer candidate 
          school.
Sec. 623. Modification of certain authorities applicable to the targeted 
          shaping of the Armed Forces.
Sec. 624. Enhancement of bonus to encourage certain persons to refer 
          other persons for enlistment in the Army.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for transportation of 
          family members incident to illness or injury of members.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Retired pay of general and flag officers to be based on rates 
          of basic pay provided by law.
Sec. 642. Inapplicability of retired pay multiplier maximum percentage 
          to certain service of members of the Armed Forces in excess of 
          30 years.
Sec. 643. Military Survivor Benefit Plan beneficiaries under insurable 
          interest coverage.
Sec. 644. Modification of eligibility for commencement of authority for 
          optional annuities for dependents under the Survivor Benefit 
          Plan.
Sec. 645. Study of training costs, manning, operations tempo, and other 
          factors that affect retention of members of the Armed Forces 
          with special operations designations.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

Sec. 661. Treatment of price surcharges of certain merchandise sold at 
          commissary stores.
Sec. 662. Limitations on lease of non-excess Department of Defense 
          property for protection of morale, welfare, and recreation 
          activities and revenue.
Sec. 663. Report on cost effectiveness of purchasing commercial 
          insurance for commissary and exchange facilities and 
          facilities of other morale, welfare, and recreation programs 
          and nonappropriated fund instrumentalities.
Sec. 664. Study and report regarding access of disabled persons to 
          morale, welfare, and recreation facilities and activities.

                        Subtitle F--Other Matters

Sec. 670. Limitations on terms of consumer credit extended to 
          servicemembers and dependents.
Sec. 671. Enhancement of authority to waive claims for overpayment of 
          pay and allowances and travel and transportation allowances.
Sec. 672. Exception for notice to consumer reporting agencies regarding 
          debts or erroneous payments pending a decision to waive, 
          remit, or cancel.
Sec. 673. Expansion and enhancement of authority to remit or cancel 
          indebtedness of members and former members of the Armed Forces 
          incurred on active duty.
Sec. 674. Phased recovery of overpayments of pay made to members of the 
          uniformed services.
Sec. 675. Joint family support assistance program.
Sec. 676. Special working group on transition to civilian employment of 
          National Guard and Reserve members returning from deployment 
          in Operation Iraqi Freedom or Operation Enduring Freedom.
Sec. 677. Audit of pay accounts of members of the Army evacuated from a 
          combat zone for inpatient care.
Sec. 678. Report on eligibility and provision of assignment incentive 
          pay.
Sec. 679. Sense of Congress calling for payment to World War II veterans 
          who survived Bataan Death March.

                     Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2007 INCREASE IN MILITARY BASIC PAY AND REFORM OF 
                    BASIC PAY RATES.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to 
become effective during fiscal year 2007 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) January 1, 2007, Increase in Basic Pay.--Effective on 
January 1, 2007, the rates of monthly basic pay for members of 
the uniformed services are increased by 2.2 percent.
    (c) Reform of Basic Pay Rates.--Effective on April 1, 2007, 
the rates of monthly basic pay for members of the uniformed 
services within each pay grade (and with years of service 
computed under section 205 of title 37, United States Code) are 
as follows:


                                             COMMISSIONED OFFICERS 1
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-8                                             8,453.10      8,729.70      8,913.60      8,964.90      9,194.10
O-7                                             7,023.90      7,350.00      7,501.20      7,621.20      7,838.40
O-6                                             5,206.20      5,719.20      6,094.50      6,094.50      6,117.60
O-5                                             4,339.80      4,888.80      5,227.50      5,291.10      5,502.00
O-4                                             3,744.60      4,334.70      4,623.90      4,688.40      4,956.90
O-3 3                                           3,292.20      3,732.30      4,028.40      4,392.00      4,602.00
O-2 3                                           2,844.30      3,239.70      3,731.40      3,857.40      3,936.60
O-1 3                                           2,469.30      2,569.80      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-8                                             9,577.20      9,666.30     10,030.20     10,134.30     10,447.80
O-7                                             8,052.90      8,301.30      8,548.80      8,797.20      9,577.20
O-6                                             6,380.10      6,414.60      6,414.60      6,779.10      7,423.80
O-5                                             5,628.60      5,906.40      6,110.10      6,373.20      6,776.40
O-4                                             5,244.60      5,602.80      5,882.40      6,076.20      6,187.50
O-3 3                                           4,833.00      4,982.70      5,228.40      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-10 2                                             $0.00    $13,659.00    $13,725.90    $14,011.20    $14,508.60
O-9                                                 0.00     11,946.60     12,118.50     12,367.20     12,801.30
O-8                                            10,900.80     11,319.00     11,598.30     11,598.30     11,598.30
O-7                                            10,236.00     10,236.00     10,236.00     10,236.00     10,287.90
O-6                                             7,802.10      8,180.10      8,395.20      8,613.00      9,035.70
O-5                                             6,968.10      7,158.00      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-10 2                                        $14,508.60    $15,234.00    $15,234.00    $15,995.70    $15,995.70
O-9                                            12,801.30     13,441.50     13,441.50     14,113.50     14,113.50
O-8                                            11,598.30     11,888.40     11,888.40     12,185.70     12,185.70
O-7                                            10,287.90     10,493.70     10,493.70     10,493.70     10,493.70
O-6                                             9,035.70      9,216.30      9,216.30      9,216.30      9,216.30
O-5                                             7,373.10      7,373.10      7,373.10      7,373.10      7,373.10
O-4                                             6,252.30      6,252.30      6,252.30      6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90      5,355.90      5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60      3,936.60      3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50      3,106.50      3,106.50      3,106.50
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-10 2                                        $16,795.50    $16,795.50
O-9                                            14,819.10     14,819.10
O-8                                            12,185.70     12,185.70
O-7                                            10,493.70     10,493.70
O-6                                             9,216.30      9,216.30
O-5                                             7,373.10      7,373.10
O-4                                             6,252.30      6,252.30
O-3 3                                           5,355.90      5,355.90
O-2 3                                           3,936.60      3,936.60
O-1 3                                           3,106.50      3,106.50
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned
  oficers in pay grades 0-7 through 0-10 may not exceed the rate of pay for level II 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, 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, Commandant of the Coast Guard, or commander of a unified or specified combatant command (as
  defined in section 161(c) of title 10, United States Code), basic pay for this grade is $17,972.10, 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  YEARS OF ACTIVE DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER
----------------------------------------------------------------------------------------------------------------
                 Pay Grade                    2 or less      Over 2        Over 3        Over 4        Over 6
----------------------------------------------------------------------------------------------------------------
O-3E                                               $0.00         $0.00         $0.00     $4,392.00     $4,602.00
O-2E                                                0.00          0.00          0.00      3,857.40      3,936.60
O-1E                                                0.00          0.00          0.00      3,106.50      3,317.70
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
O-3E                                           $4,833.00     $4,982.70     $5,228.40     $5,435.40     $5,554.20
O-2E                                            4,062.00      4,273.50     4,437.00.      4,558.80      4,558.80
O-1E                                            3,440.10      3,565.50      3,688.80      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90     $5,715.90     $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80      4,558.80      4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40      3,857.40      3,857.40      3,857.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
O-3E                                           $5,715.90     $5,715.90
O-2E                                            4,558.80      4,558.80
O-1E                                            3,857.40      3,857.40
----------------------------------------------------------------------------------------------------------------



                                               WARRANT OFFICERS 1
----------------------------------------------------------------------------------------------------------------
                 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                                             3,402.00      3,660.00      3,765.00      3,868.50      4,046.40
W-3                                             3,106.80      3,236.40      3,369.00      3,412.80      3,552.00
W-2                                             2,749.20      3,009.30      3,089.40      3,144.60      3,322.80
W-1                                             2,413.20      2,672.40      2,742.90      2,890.50      3,065.10
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
W-5                                                $0.00         $0.00         $0.00         $0.00         $0.00
W-4                                             4,222.20      4,400.70      4,669.20      4,904.40      5,128.20
W-3                                             3,825.90      4,110.90      4,245.30      4,400.40      4,560.30
W-2                                             3,600.00      3,737.10      3,872.40      4,037.70      4,166.70
W-1                                             3,322.20      3,442.20      3,610.20      3,775.50      3,905.10
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
W-5                                                $0.00     $6,049.50     $6,356.40     $6,585.00     $6,838.20
W-4                                             5,310.90      5,489.70      5,752.20      5,967.60      6,213.60
W-3                                             4,847.70      5,042.40      5,158.50      5,282.10      5,450.10
W-2                                             4,284.00      4,423.80      4,515.90      4,589.40      4,589.40
W-1                                             4,024.50      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
W-5                                            $6,838.20     $7,180.20     $7,180.20     $7,539.30     $7,539.30
W-4                                             6,213.60      6,337.80      6,337.80      6,337.80      6,337.80
W-3                                             5,450.10      5,450.10      5,450.10      5,450.10      5,450.10
W-2                                             4,589.40      4,589.40      4,589.40      4,589.40      4,589.40
W-1                                             4,170.00      4,170.00      4,170.00      4,170.00      4,170.00
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
W-5                                            $7,916.40     $7,916.40
W-4                                             6,337.80      6,337.80
W-3                                             5,450.10      5,450.10
W-2                                             4,589.40      4,589.40
W-1                                             4,170.00      4,170.00
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------
                 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                                             2,339.10      2,553.00      2,650.80      2,780.70      2,881.50
E-6                                             2,023.20      2,226.00      2,324.40      2,419.80      2,519.40
E-5                                             1,854.00      1,977.90      2,073.30      2,171.40      2,323.80
E-4                                             1,699.50      1,786.50      1,883.10      1,978.50      2,062.80
E-3                                             1,534.20      1,630.80      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 8        Over 10       Over 12       Over 14       Over 16
                                           ---------------------------------------------------------------------
E-9 2                                              $0.00     $4,110.60     $4,203.90     $4,321.20     $4,459.50
E-8                                             3,364.80      3,513.90      3,606.00      3,716.40      3,835.80
E-7                                             3,055.20      3,152.70      3,326.70      3,471.00      3,569.70
E-6                                             2,744.10      2,831.40      3,000.00      3,051.90      3,089.70
E-5                                             2,483.70      2,613.90      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 18       Over 20       Over 22       Over 24       Over 26
                                           ---------------------------------------------------------------------
E-9 2                                          $4,598.40     $4,821.60     $5,010.30     $5,209.20     $5,512.80
E-8                                             4,051.80      4,161.30      4,347.30      4,450.50      4,704.90
E-7                                             3,674.40      3,715.50      3,852.00      3,925.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1 3                                           1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 28       Over 30       Over 32       Over 34       Over 36
                                           ---------------------------------------------------------------------
E-9 2                                          $5,512.80     $5,788.50     $5,788.50     $6,078.00     $6,078.00
E-8                                             4,704.90      4,799.10      4,799.10      4,799.10      4,799.10
E-7                                             4,204.20      4,204.20      4,204.20      4,204.20      4,204.20
E-6                                             3,133.50      3,133.50      3,133.50      3,133.50      3,133.50
E-5                                             2,630.10      2,630.10      2,630.10      2,630.10      2,630.10
E-4                                             2,062.80      2,062.80      2,062.80      2,062.80      2,062.80
E-3                                             1,729.20      1,729.20      1,729.20      1,729.20      1,729.20
E-2                                             1,458.90      1,458.90      1,458.90      1,458.90      1,458.90
E-1                                             1,301.40      1,301.40      1,301.40      1,301.40      1,301.40
                                           ---------------------------------------------------------------------
                                               Over 38       Over 40
                                           ---------------------------------------------------------------------
E-9 2                                          $6,381.90     $6,381.90
E-8                                             4,799.10      4,799.10
E-7                                             4,204.20      4,204.20
E-6                                             3,133.50      3,133.50
E-5                                             2,630.10      2,630.10
E-4                                             2,062.80      2,062.80
E-3                                             1,729.20      1,729.20
E-2                                             1,458.90      1,458.90
E-1                                             1,301.40      1,301.40
----------------------------------------------------------------------------------------------------------------
1 Notwithstanding the pay rates specified in this table, the actual 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, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted Advisor
  to the Chairman of the Joint Chiefs of Staff is $6,642.60, 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 $1,203.90.

SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND FLAG 
                    OFFICER GRADES TO CONFORM TO INCREASE IN PAY CAP 
                    FOR SENIOR EXECUTIVE SERVICE PERSONNEL.

    (a) Increase.--Section 203(a)(2) of title 37, United States 
Code, is amended by striking ``level III of the Executive 
Schedule'' and inserting ``level II of the Executive 
Schedule''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on January 1, 2007, and shall apply with 
respect to months beginning on or after that date.

SEC. 603. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING CERTAIN 
                    INJURED MEMBERS TO PAY FOR MEALS PROVIDED BY 
                    MILITARY TREATMENT FACILITIES.

    (a) Extension.--Section 402(h)(3) of title 37, United 
States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Report on Administration of Prohibition.--Not later 
than February 1, 2007, the Secretary of Defense shall submit to 
the congressional defense committees a report on the 
administration of section 402(h) of title 37, United States 
Code. The report shall include--
            (1) a description and assessment of the mechanisms 
        used by the military departments to implement the 
        prohibition contained in such section; and
            (2) such recommendations as the Secretary considers 
        appropriate regarding making such prohibition 
        permanent.

SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE FOR HOUSING FOR 
                    CERTAIN RESERVE COMPONENT OR RETIRED MEMBERS 
                    SERVING IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Availability.--Section 403(g) of title 37, United 
States Code, is amended--
            (1) by redesignating paragraphs (2), (3), and (4) 
        as paragraphs (3), (4), and (5), respectively;
            (2) by inserting after paragraph (1) the following 
        new paragraph (2):
    ``(2) The Secretary concerned may provide a basic allowance 
for housing to a member described in paragraph (1) at a monthly 
rate equal to the rate of the basic allowance for housing 
established under subsection (b) or the overseas basic 
allowance for housing established under subsection (c), 
whichever applies to the location at which the member is 
serving, for members in the same grade at that location without 
dependents. The member may receive both a basic allowance for 
housing under paragraph (1) and under this paragraph for the 
same month, but may not receive the portion of the allowance 
authorized under section 404 of this title, if any, for lodging 
expenses if a basic allowance for housing is provided under 
this paragraph.''; and
            (3) in paragraph (3), as so redesignated, by 
        striking ``Paragraph (1)'' and inserting ``Paragraphs 
        (1) and (2)''.
    (b) Effective Date.--Paragraph (2) of section 403(g) of 
title 37, United States Code, as added by subsection (a), shall 
apply with respect to months beginning on or after October 1, 
2006.

SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE FOR 
                    DEPENDENTS OF MEMBERS DYING ON ACTIVE DUTY TO 
                    SPOUSES WHO ARE ALSO MEMBERS.

    (a) Extension.--Section 403(l) of title 37, United States 
Code, is amended--
            (1) by redesignating paragraph (3) as paragraph 
        (4); and
            (2) by inserting after paragraph (2) the following 
        new paragraph:
    ``(3) An allowance may be paid under paragraph (2) to the 
spouse of the deceased member even though the spouse is also a 
member of the uniformed services. The allowance paid under such 
paragraph is in addition to any other pay and allowances to 
which the spouse is entitled as a member.''.
    (b) Effective Date.--
            (1) General rule.--The amendments made by 
        subsection (a) shall take effect on October 1, 2006.
            (2) Transitional rule.--After October 1, 2006, the 
        Secretary of Defense, and the Secretary of Homeland 
        Security in the case of the Coast Guard, may pay the 
        allowance authorized by section 403(l)(2) of title 37, 
        United States Code, to a member of the uniformed 
        services who is the spouse of a member who died on 
        active duty during the one-year period ending on that 
        date, except that the payment of the allowance must 
        terminate within 365 days after the date of the 
        member's death.

SEC. 606. PAYMENT OF FULL PREMIUM FOR COVERAGE UNDER SERVICEMEMBERS' 
                    GROUP LIFE INSURANCE PROGRAM DURING SERVICE IN 
                    OPERATION ENDURING FREEDOM OR OPERATION IRAQI 
                    FREEDOM.

    (a) Enhanced Allowance To Cover SGLI Deductions.--
Subsection (a)(1) of section 437 of title 37, United States 
Code, is amended by striking ``for the first $150,000'' and all 
that follows through ``of such title'' and inserting ``for the 
amount of Servicemembers' Group Life Insurance coverage held by 
the member under section 1967 of such title''.
    (b) Conforming Amendments.--Such section is further 
amended--
            (1) in subsection (a)--
                    (A) by striking ``(1)'' before ``in the 
                case of''; and
                    (B) by striking paragraph (2);
            (2) by striking subsection (b); and
            (3) by redesignating subsection (c) as subsection 
        (b) and in paragraph (2) of that subsection by striking 
        ``coverage amount specified in subsection (a)(1) or in 
        effect pursuant to subsection (b),'' and inserting 
        ``maximum coverage amount available for such 
        insurance,''.
    (c) Clerical Amendments.--The heading for such section, and 
the item relating to such section in the table of sections at 
the beginning of chapter 7 of such title, are each amended by 
striking the fourth and fifth words.
    (d) Effective Date.--The amendments made by this section 
shall take effect on the first day of the first month beginning 
on or after the date of the enactment of this Act and shall 
apply with respect to service by members of the Armed Forces in 
the theater of operations for Operation Enduring Freedom or 
Operation Iraqi Freedom for months beginning on or after that 
date.

SEC. 607. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON 
                    COMPENSATION FOR CORRESPONDENCE COURSES.

    Section 206(d) of title 37, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(3) The prohibition in paragraph (1), including the 
prohibition as it relates to a member of the National Guard 
while not in Federal service, applies to--
            ``(A) any work or study performed on or after 
        September 7, 1962, unless that work or study is 
        specifically covered by the exception in paragraph (2); 
        and
            ``(B) any claim based on that work or study arising 
        after that date.''.

SEC. 608. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT SAVINGS 
                    PLAN FOR INITIAL ENLISTEES IN THE ARMY.

    (a) Extension.--Subsection (a) of section 606 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3287; 37 U.S.C. 211 note) is amended by 
striking ``During fiscal year 2006'' and inserting ``During the 
period beginning on January 6, 2006, and ending on December 31, 
2008''.
    (b) Report Date.--Subsection (d)(1) of such section is 
amended by striking ``February 1, 2007'' and inserting 
``February 1, 2008''.

           Subtitle B--Bonuses and Special and Incentive Pays

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

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) 
of title 37, United States Code, is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2007''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--
Section 308c(i) of such title is amended by striking ``December 
31, 2006'' and inserting ``December 31, 2007''.
    (c) Special Pay for Enlisted Members Assigned to Certain 
High Priority Units.--Section 308d(c) of such title is amended 
by striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (d) Ready Reserve Enlistment Bonus for Persons Without 
Prior Service.--Section 308g(f)(2) of such title is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for 
Persons With Prior Service.--Section 308h(e) of such title is 
amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (f) Selected Reserve Enlistment Bonus for Persons With 
Prior Service.--Section 308i(f) of such title is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 
2130a(a)(1) of title 10, United States Code, is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (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, 
2007'' and inserting ``January 1, 2008''.
    (c) Accession Bonus for Registered Nurses.--Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking ``December 31, 2006'' and inserting ``December 31, 
2007''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (e) Special Pay for Selected Reserve Health Professionals 
in Critically Short Wartime Specialties.--Section 302g(e) of 
such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (f) Accession Bonus for Dental Officers.--Section 
302h(a)(1) of such title is amended by striking ``December 31, 
2006'' and inserting ``December 31, 2007''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.

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

    (a) Special Pay for Nuclear-Qualified Officers Extending 
Period of Active Service.--Section 312(e) of title 37, United 
States Code, is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
title 37, United States Code, is amended by striking ``December 
31, 2006'' and inserting ``December 31, 2007''.
    (b) Assignment Incentive Pay.--Section 307a(g) of such 
title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) 
of such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (d) Enlistment Bonus.--Section 309(e) of such title is 
amended by striking ``December 31, 2006'' and inserting 
``December 31, 2007''.
    (e) Retention Bonus for Members With Critical Military 
Skills or Assigned to High Priority Units.--Section 323(i) of 
such title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (f) Accession Bonus for New Officers in Critical Skills.--
Section 324(g) of such title is amended by striking ``December 
31, 2006'' and inserting ``December 31, 2007''.
    (g) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such 
title is amended by striking ``December 31, 2006'' and 
inserting ``December 31, 2007''.
    (h) Incentive Bonus for Transfer Between the Armed 
Forces.--Section 327(h) of such title is amended by striking 
``December 31, 2006'' and inserting ``December 31, 2009''.

SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFICERS FOR ADDITIONAL 
                    SPECIAL PAY.

    (a) Repeal of Internship and Residency Exception.--Section 
302b(a)(4) of title 37, United States Code, is amended by 
striking the first sentence and inserting the following new 
sentence: ``An officer who is entitled to variable special pay 
under paragraph (2) or (3) is also entitled to additional 
special pay for any 12-month period during which an agreement 
executed under subsection (b) is in effect with respect to the 
officer.''.
    (b) Effective Date.--The amendment made by this section 
shall take effect on October 1, 2006.

SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPECIAL PAY FOR SELECTED 
                    RESERVE HEALTH CARE PROFESSIONALS IN CRITICALLY 
                    SHORT WARTIME SPECIALTIES.

    (a) Increase.--Section 302g(a) of title 37, United States 
Code, is amended by striking ``$10,000'' and inserting 
``$25,000''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2006, and shall apply to 
agreements entered into or revised under section 302g of title 
37, United States Code, on or after that date.

SEC. 617. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES FOR 
                    CERTAIN OFFICERS IN HEALTH CARE SPECIALITIES.

    (a) Increase in Maximum Amount of Accession Bonus for 
Dental Officers.--Section 302h(a)(2) of title 37, United States 
Code, is amended by striking ``$30,000'' and inserting 
``$200,000''.
    (b) Accession Bonus for Medical Officers in Critically 
Short Wartime Specialties.--Chapter 5 of title 37, United 
States Code, is amended by inserting after section 302j the 
following new section:

``Sec. 302k. Special pay: accession bonus for medical officers in 
                    critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a 
graduate of an accredited school of medicine or osteopathy in a 
specialty designated by regulations as a critically short 
wartime specialty and who executes a written agreement 
described in subsection (d) to accept a commission as an 
officer of the armed forces and remain on active duty for a 
period of not less than four consecutive years may, upon the 
acceptance of the agreement by the Secretary concerned, be paid 
an accession bonus in the amount determined by the Secretary 
concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus 
under subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may 
not be paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to 
        accept an appointment as an officer, received financial 
        assistance from the Department of Defense to pursue a 
        course of study in medicine or osteopathy; or
            ``(2) the Secretary concerned determines that the 
        person is not qualified to become and remain certified 
        as a doctor or osteopath in a specialty designated by 
        regulations as a critically short wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection 
(a) shall provide that, consistent with the needs of the armed 
force concerned, the person executing the agreement will be 
assigned to duty, for the period of obligated service covered 
by the agreement, as an officer of the Medical Corps of the 
Army or the Navy or as an officer of the Air Force designated 
as a medical officer in a specialty designated by regulations 
as a critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an 
agreement under subsection (a) is not commissioned as an 
officer of the armed forces, does not become licensed as a 
doctor or osteopath, as the case may be, or does not complete 
the period of active duty in a specialty specified in the 
agreement, shall be subject to the repayment provisions of 
section 303a(e) of this title.
    ``(f) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2007.''.
    (c) Accession Bonus for Dental Specialist Officers in 
Critically Short Wartime Specialties.--Such chapter is further 
amended by inserting after section 302k, as added by subsection 
(b), the following new section:

``Sec. 302l. Special pay: accession bonus for dental specialist 
                    officers in critically short wartime specialties

    ``(a) Accession Bonus Authorized.--A person who is a 
graduate of an accredited dental school in a specialty 
designated by regulations as a critically short wartime 
specialty and who executes a written agreement described in 
subsection (d) to accept a commission as an officer of the 
armed forces and remain on active duty for a period of not less 
than four consecutive years may, upon the acceptance of the 
agreement by the Secretary concerned, be paid an accession 
bonus in the amount determined by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus 
under subsection (a) may not exceed $400,000.
    ``(c) Limitation on Eligibility for Bonus.--A person may 
not be paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to 
        accept an appointment as an officer, received financial 
        assistance from the Department of Defense to pursue a 
        course of study in dentistry; or
            ``(2) the Secretary concerned determines that the 
        person is not qualified to become and remain certified 
        as a dentist in a specialty designated by regulations 
        as a critically short wartime specialty.
    ``(d) Agreement.--The agreement referred to in subsection 
(a) shall provide that, consistent with the needs of the armed 
force concerned, the person executing the agreement will be 
assigned to duty, for the period of obligated service covered 
by the agreement, as an officer of the Dental Corps of the Army 
or the Navy or as an officer of the Air Force designated as a 
dental officer in a specialty designated by regulations as a 
critically short wartime specialty.
    ``(e) Repayment.--A person who, after executing an 
agreement under subsection (a) is not commissioned as an 
officer of the armed forces, does not become licensed as a 
dentist, or does not complete the period of active duty in a 
specialty specified in the agreement, shall be subject to the 
repayment provisions of section 303a(e) of this title.
    ``(f) Coordination With Other Accession Bonus Authority.--A 
person eligible to execute an agreement under both subsection 
(a) and section 302h of this title shall elect which authority 
to execute the agreement under. A person may not execute an 
agreement under both subsection (a) and such section 302h.
    ``(g) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2007.''.
    (d) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 302j the following new items:

``302k. Special pay: accession bonus for medical officers in critically 
          short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
          critically short wartime specialties.''.

    (e) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2006, and shall apply to 
agreements--
            (1) entered into or revised under section 302h of 
        title 37, United States Code, on or after that date; or
            (2) entered into under section 302k or 302l of such 
        title, as added by subsections (b) and (c), on or after 
        that date.

SEC. 618. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF NUCLEAR OFFICER 
                    INCENTIVE PAY.

    (a) Lump Sum Payment Option.--Subsection (a) of section 312 
of title 37, United States Code, is amended in the matter after 
paragraph (3)--
            (1) by striking ``in equal annual installments'' 
        and inserting ``in a single lump-sum or in annual 
        installments of equal or different amounts''; and
            (2) by striking ``with the number of installments 
        being equal to the number of years covered by the 
        contract plus one'' and inserting ``and, if the special 
        pay will be paid in annual installments, the number of 
        installments may not exceed the number of years covered 
        by the agreement plus one''.
    (b) Stylistic and Conforming Amendments.--Such section is 
further amended--
            (1) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively;
            (2) in subsection (a)--
                    (A) by striking ``an officer'' in the 
                matter before paragraph (1) and inserting ``the 
                Secretary may pay special pay under subsection 
                (b) to an officer'';
                    (B) by striking the comma at the end of 
                paragraph (3) and inserting a period;
                    (C) by striking ``may, upon'' and all that 
                follows through ``The Secretary of the Navy 
                shall'' and inserting the following:
    ``(b) Payment Amount; Payment Options.--(1) The total 
amount paid to an officer under an agreement under subsection 
(a) or (e)(1) may not exceed $30,000 for each year of the 
active-service agreement. Amounts paid under the agreement are 
in addition to all other compensation to which the officer is 
entitled.
    ``(2) The Secretary shall'';
                    (D) by striking ``Upon acceptance of the 
                agreement by the Secretary or his designee'' 
                and inserting the following:
    ``(3) Upon acceptance of an agreement under subsection (a) 
or (e)(1) by the Secretary''; and
                    (E) by striking ``The Secretary (or his 
                designee)'' and inserting the following:
    ``(4) The Secretary'';
            (3) in subsection (c), as redesignated by paragraph 
        (1), by striking ``subsection (a) or subsection 
        (d)(1)'' and inserting ``subsection (b) or (e)(1)''; 
        and
            (4) in the first sentence of subsection (e)(1), as 
        redesignated by paragraph (1)--
                    (A) by striking ``such subsection'' and 
                inserting ``subsection (b)''; and
                    (B) by striking ``that subsection'' and 
                inserting ``this subsection''.
    (c) Stylistic Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting ``Special Pay 
        Authorized; Eligibility.--'' after ``(a)'';
            (2) in subsection (c), as redesignated by 
        subsection (b)(1), by inserting ``Repayment.--'' after 
        ``(c)'';
            (3) in subsection (d), as redesignated by 
        subsection (b)(1), by inserting ``Relation to Service 
        Obligation.--'' after ``(d)'';
            (4) in subsection (e), as redesignated by 
        subsection (b)(1), by inserting ``New Agreement.--'' 
        after ``(e)''; and
            (5) in subsection (f), as redesignated by 
        subsection (b)(1), by inserting ``Duration of 
        Authority.--'' after ``(f)''.

SEC. 619. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR CAREER ACCESSION BONUS.

    (a) Increase.--Section 312b(a)(1) of title 37, United 
States Code, is amended by striking ``$20,000'' and inserting 
``$30,000''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2006, and shall apply to 
agreements entered into or revised under section 312b of title 
37, United States Code, on or after that date.

SEC. 620. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE BONUS FOR TRANSFER 
                    BETWEEN ARMED FORCES.

    (a) Increase.--Section 327(d)(1) of title 37, United States 
Code, is amended by striking ``$2,500'' and inserting 
``$10,000''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 2006, and shall apply to 
agreements entered into or revised under section 327 of title 
37, United States Code, on or after that date.

SEC. 621. ADDITIONAL AUTHORITIES AND INCENTIVES TO ENCOURAGE RETIRED 
                    MEMBERS AND RESERVE COMPONENT MEMBERS TO VOLUNTEER 
                    TO SERVE ON ACTIVE DUTY IN HIGH-DEMAND, LOW-DENSITY 
                    ASSIGNMENTS.

    (a) Authority To Offer Incentive Bonus.--Chapter 5 of title 
37, United States Code, is amended by adding at the end the 
following new section:

``Sec. 329. Incentive bonus: retired members and reserve component 
                    members volunteering for high-demand, low-density 
                    assignments

    ``(a) Incentive Bonus Authorized.--The Secretary of Defense 
may pay a bonus under this section to a retired member or 
former member of the Army, Navy, Air Force, or Marine Corps or 
to a member of a reserve component of the Army, Navy, Air 
Force, or Marine Corps (who is not otherwise serving on active 
duty) who executes a written agreement to serve on active duty 
for a period specified in the agreement in an assignment 
intended to alleviate the need for members in a high-demand, 
low-density military capability or in any other specialty 
designated by the Secretary as critical to meet wartime or 
peacetime requirements.
    ``(b) Maximum Amount of Bonus.--A bonus under subsection 
(a) and any incentive developed under subsection (d) may not 
exceed $50,000.
    ``(c) Methods of Payment.--At the election of the Secretary 
of Defense, a bonus under subsection (a) and any incentive 
developed under subsection (d) shall be paid or provided--
            ``(1) when the member commences service on active 
        duty; or
            ``(2) in annual installments in such amounts as may 
        be determined by the Secretary.
    ``(d) Development of Additional Incentives.--(1) The 
Secretary of Defense may develop and provide to members 
referred to in subsection (a) additional incentives to 
encourage such members to return to active duty in assignments 
intended to alleviate the need for members in a high-demand, 
low-density military capability or in other specialties 
designated by the Secretary as critical to meet wartime or 
peacetime requirements.
    ``(2) The provision of any incentive developed under this 
subsection shall be subject to an agreement, as required for 
bonuses under subsection (a).
    ``(3) Not later than 30 days before first offering any 
incentive developed under this subsection, the Secretary shall 
submit to the congressional defense committees a report that 
contains a description of that incentive and an explanation why 
a bonus under subsection (a) or other pay and allowances are 
not sufficient to alleviate the high-demand, low-density 
military capability or otherwise fill critical military 
specialties.
    ``(4) In this subsection, the term `congressional defense 
committees' has the meaning given that term in section 
101(a)(16) of title 10.
    ``(e) Relationship to Other Pay and Allowances.--A bonus or 
other incentive paid or provided to a member under this section 
is in addition to any other pay and allowances to which the 
member is entitled.
    ``(f) Prohibition on Promotions.--The written agreement 
required by subsections (a) and (d) shall specify that a member 
who is paid or receives a bonus or other incentive under this 
section is not eligible for promotion while serving in the 
assignment for which the bonus or other incentive is provided.
    ``(g) Repayment.--A member who does not complete the period 
of active duty specified in the agreement executed under 
subsection (a) or (d) shall be subject to the repayment 
provisions of section 303a(e) of this title.
    ``(h) High-Demand, Low-Density Military Capability.--In 
this section, the term `high-demand, low-density military 
capability' means a combat, combat support or service support 
capability, unit, system, or occupational specialty that the 
Secretary of Defense determines has funding, equipment, or 
personnel levels that are substantially below the levels 
required to fully meet or sustain actual or expected 
operational requirements set by regional commanders.
    ``(i) Regulations.--The Secretary of Defense may prescribe 
such regulations as the Secretary considers necessary to carry 
out this section.
    ``(j) Termination of Authority.--No agreement under 
subsection (a) or (d) may be entered into after December 31, 
2010.''.
    (b) Temporary Authority to Order Retired Members to Active 
Duty in High-Demand, Low-Density Military Capability.--Section 
688a of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking the first sentence and 
                inserting the following new sentence: ``The 
                Secretary of a military department may order to 
                active duty a retired member who agrees to 
                serve on active duty in an assignment intended 
                to alleviate a high-demand, low-density 
                military capability or in any other specialty 
                designated by the Secretary as critical to meet 
                wartime or peacetime requirements.''; and
                    (B) in the second sentence, by striking 
                ``officer'' both places it appears and 
                inserting ``member'';
            (2) in subsection (b), by striking ``an officer'' 
        and inserting ``a member'';
            (3) in subsection (c), by striking ``500 officers'' 
        and inserting ``1,000 members'';
            (4) in subsection (d), by striking ``officer'' and 
        inserting ``member'';
            (5) in subsection (e), by striking ``Officers'' and 
        inserting ``Retired members'';
            (6) in subsection (f)--
                    (A) by striking ``An officer'' and 
                inserting ``A retired member''; and
                    (B) by striking ``September 30, 2008'' and 
                inserting ``December 31, 2010''; and
            (7) by adding at the end the following new 
        subsection:
    ``(g) High-Demand, Low-Density Military Capability 
Defined.--In this section, the term `high-demand, low-density 
military capability' means a combat, combat support or service 
support capability, unit, system, or occupational specialty 
that the Secretary of Defense determines has funding, 
equipment, or personnel levels that are substantially below the 
levels required to fully meet or sustain actual or expected 
operational requirements set by regional commanders.''.
    (c) Exclusion From Active-Duty List.--Section 641 of title 
10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(6) Officers appointed pursuant to an agreement 
        under section 329 of title 37.''.
    (d) Clerical Amendments.--
            (1) Title 37.--The table of sections at the 
        beginning of chapter 5 of title 37, United States Code, 
        is amended by adding at the end the following new item:

``329. Incentive bonus: retired members and reserve component members 
          volunteering for high-demand, low-density assignments.''.

            (2) Title 10.--(A) The heading of section 688a of 
        title 10, United States Code, is amended to read as 
        follows:

``Sec. 688a. Retired members: temporary authority to order to active 
                    duty in high-demand, low-density assignments''.

            (B) The table of sections at the beginning of 
        chapter 39 of such title is amended by striking the 
        item relating to section 688a and inserting the 
        following new item:

``688a. Retired members: temporary authority to order to active duty in 
          high-demand, low-density assignments.''.

    (e) Effective Date.--No agreement may be entered into under 
section 329 of title 37, United States Code, as added by 
subsection (a), before October 1, 2006.
    (f) Limitation on Fiscal Year 2007 Obligations.--During 
fiscal year 2007, obligations incurred under section 329 of 
title 37, United States Code, as added by subsection (a), to 
provide bonuses or other incentives to retired members and 
former members of the Army, Navy, Air Force, or Marine Corps or 
to members of the reserve components of the Army, Navy, Air 
Force, and Marine Corps may not exceed $5,000,000.

SEC. 622. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES APPOINTED AS 
                    COMMISSIONED OFFICERS AFTER COMPLETING OFFICER 
                    CANDIDATE SCHOOL.

    (a) Accession Bonus Authorized.--
            (1) In general.--Chapter 5 of title 37, United 
        States Code, is amended by inserting after section 329, 
        as added by section 621 of this Act, the following new 
        section:

``Sec. 330. Special pay: accession bonus for officer candidates

    ``(a) Accession Bonus Authorized.--Under regulations 
prescribed by the Secretary concerned, a person who executes a 
written agreement described in subsection (c) may be paid an 
accession bonus under this section upon acceptance of the 
agreement by the Secretary concerned.
    ``(b) Amount of Bonus.--The amount of an accession bonus 
under subsection (a) may not exceed $8,000.
    ``(c) Agreement.--A written agreement referred to in 
subsection (a) is a written agreement by a person--
            ``(1) to complete officer candidate school;
            ``(2) to accept a commission or appointment as an 
        officer of the armed forces; and
            ``(3) to serve on active duty as a commissioned 
        officer for a period specified in the agreement.
    ``(d) Payment Method.--Upon acceptance of a written 
agreement under subsection (a) by the Secretary concerned, the 
total amount of the accession bonus payable under the agreement 
becomes fixed. The agreement shall specify whether the 
accession bonus will be paid in a lump sum or installments.
    ``(e) Repayment.--A person who, having received all or part 
of the bonus under a written agreement under subsection (a), 
does not complete the total period of active duty as a 
commissioned officer as specified in such agreement shall be 
subject to the repayment provisions of section 303a(e) of this 
title.
    ``(f) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2007.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by inserting 
        after the item relating to section 329, as added by 
        section 621, the following new item:

``330. Special pay: accession bonus for officer candidates.''.

            (3) Effective date.--The amendments made by this 
        subsection shall take effect on October 1, 2006.
    (b) Authority for Payment of Bonus Under Earlier 
Agreements.--
            (1) Authority.--The Secretary of the Army may pay a 
        bonus to any person who, during the period beginning on 
        April 1, 2005, and ending on April 6, 2006, executed an 
        agreement to enlist for the purpose of attending 
        officer candidate school and receive a bonus under 
        section 309 of title 37, United States Code, and who 
        has completed the terms of the agreement required for 
        payment of the bonus.
            (2) Amount of bonus.--The amount of the bonus 
        payable to a person under this subsection may not 
        exceed $8,000.
            (3) Relation to enlistment bonus.--The bonus 
        payable under this subsection is in addition to a bonus 
        payable under section 309 of title 37, United States 
        Code, or any other provision of law.

SEC. 623. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE 
                    TARGETED SHAPING OF THE ARMED FORCES.

    (a) Voluntary Separation Pay and Benefits.--
            (1) Increase in maximum amount of pay.--Subsection 
        (f) of section 1175a of title 10, United States Code, 
        is amended by striking ``two times'' and inserting 
        ``four times''.
            (2) Extension of authority.--Subsection (k)(1) of 
        such section is amended by striking ``December 31, 
        2008'' and inserting ``December 31, 2012''.
            (3) Repeal of limitation on applicability.--
        Subsection (b) of section 643 of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-
        163; 119 Stat. 3310; 10 U.S.C. 1175a note) is repealed.
    (b) Enhanced Authority for Early Discharges.--
            (1) Renewal of authority.--Subsection (a) of 
        section 638a of title 10, United States Code, is 
        amended by inserting ``and for the purpose of 
        subsection (b)(4) during the period beginning on 
        October 1, 2006, and ending on December 31, 2012,'' 
        after ``December 31, 2001,''.
            (2) Relaxation of limitation on selective early 
        discharge.--Subsection (d)(2) of such section is 
        amended--
                    (A) in subparagraph (A), by inserting 
                before the semicolon the following: ``, except 
                that during the period beginning on October 1, 
                2006, and ending on December 31, 2012, such 
                number may be more than 30 percent of the 
                officers considered in each competitive 
                category, but may not be more than 30 percent 
                of the number of officers considered in each 
                grade''; and
                    (B) in subparagraph (B), by inserting 
                before the period the following: ``, except 
                that during the period beginning on October 1, 
                2006, and ending on December 31, 2012, such 
                number may be more than 30 percent of the 
                officers considered in each competitive 
                category, but may not be more than 30 percent 
                of the number of officers considered in each 
                grade''.

SEC. 624. ENHANCEMENT OF BONUS TO ENCOURAGE CERTAIN PERSONS TO REFER 
                    OTHER PERSONS FOR ENLISTMENT IN THE ARMY.

    (a) Individuals Eligible for Bonus.--Subsection (a) of 
section 645 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310) is 
amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) Authority.--The Secretary'';
            (2) by striking ``a member of the Army, whether in 
        the regular component of the Army or in the Army 
        National Guard or Army Reserve,'' and inserting ``an 
        individual referred to in paragraph (2)''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(2) Individuals eligible for bonus.--Subject to 
        subsection (c), the following individuals are eligible 
        for a referral bonus under this section:
                    ``(A) A member in the regular component of 
                the Army.
                    ``(B) A member of the Army National Guard.
                    ``(C) A member of the Army Reserve.
                    ``(D) A member of the Army in a retired 
                status, including a member under 60 years of 
                age who, but for age, would be eligible for 
                retired pay.
                    ``(E) A civilian employee of the Department 
                of the Army.''.
    (b) Certain Referrals Ineligible.--Subsection (c) of such 
section is amended by adding at the end the following new 
paragraph:
            ``(3) Junior reserve officers' training corps 
        instructors.--A member of the Army detailed under 
        subsection (c)(1) of section 2031 of title 10, United 
        States Code, to serve as an administrator or instructor 
        in the Junior Reserve Officers' Training Corps program 
        or a retired member of the Army employed as an 
        administrator or instructor in the program under 
        subsection (d) of such section may not be paid a bonus 
        under subsection (a).''.
    (c) Amount of Bonus.--Subsection (d) of such section is 
amended to read as follows:
    ``(d) Amount of Bonus.--The amount of the bonus payable for 
a referral under subsection (a) may not exceed $2,000. The 
amount shall be payable in two lump sums as provided in 
subsection (e).''.
    (d) Payment of Bonus.--Subsection (e) of such section is 
amended to read as follows:
    ``(e) Payment.--A bonus payable for a referral of a person 
under subsection (a) shall be paid as follows:
            ``(1) Not more than $1,000 shall be paid upon the 
        commencement of basic training by the person referred.
            ``(2) Not more than $1,000 shall be paid upon the 
        completion of basic training and individual advanced 
        training by the person referred.''.
    (e) Coordination With Receipt of Retired Pay.--Such section 
is further amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the following 
        new subsection (g):
    ``(g) Coordination With Receipt of Retired Pay.--A bonus 
paid under this section to a member of the Army in a retired 
status is in addition to any compensation to which the member 
is entitled under title 10, 37, or 38, United States Code, or 
any other provision of law.''.
    (f) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to bonuses payable under section 645 
of the National Defense Authorization Act for Fiscal Year 2006, 
as amended by this section, on or after that date.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR TRANSPORTATION OF 
                    FAMILY MEMBERS INCIDENT TO ILLNESS OR INJURY OF 
                    MEMBERS.

    Section 411h(b)(1) of title 37, United States Code, is 
amended--
            (1) by striking ``and'' at the end of subparagraph 
        (C);
            (2) by striking the period at the end of 
        subparagraph (D) and inserting ``; and''; and
            (3) by adding at the end the following new 
        subparagraph:
            ``(E) a person related to the member as described 
        in subparagraph (A), (B), (C), or (D) who is also a 
        member of the uniformed services.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. RETIRED PAY OF GENERAL AND FLAG OFFICERS TO BE BASED ON RATES 
                    OF BASIC PAY PROVIDED BY LAW.

    (a) Determination of Retired Pay Base.--Chapter 71 of title 
10, United States Code, is amended by inserting after section 
1407 the following new section:

``Sec. 1407a. Retired pay base: officers retired in general or flag 
                    officer grades

    ``(a) Rates of Basic Pay to Be Used in Determination.--In a 
case in which the determination under section 1406 or 1407 of 
this title of the retired pay base applicable to the 
computation of the retired pay of a covered general or flag 
officer involves a rate of basic pay payable to that officer 
for any period that was subject to a reduction under section 
203(a)(2) of title 37 for such period, such retired-pay-base 
determination shall be made using the rate of basic pay for 
such period provided by law, rather than such rate as so 
reduced.
    ``(b) Covered General and Flag Officers.--In this section, 
the term `covered general or flag officer' means a member or 
former member who after September 30, 2006, is retired in a 
general officer grade or flag officer grade.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 1407 the following new item:

``1407a.  Retired pay base: officers retired in general or flag officer 
          grades.''.

SEC. 642. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM PERCENTAGE 
                    TO CERTAIN SERVICE OF MEMBERS OF THE ARMED FORCES 
                    IN EXCESS OF 30 YEARS.

    (a) In General.--Paragraph (3) of section 1409(b) of title 
10, United States Code, is amended to read as follows:
            ``(3) 30 years of service.--
                    ``(A) Retirement before january 1, 2007.--
                In the case of a member who retires before 
                January 1, 2007, with more than 30 years of 
                creditable service, the percentage to be used 
                under subsection (a) is 75 percent.
                    ``(B) Retirement after december 31, 2006.--
                In the case of a member who retires after 
                December 31, 2006, with more than 30 years of 
                creditable service, the percentage to be used 
                under subsection (a) is the sum of--
                            ``(i) 75 percent; and
                            ``(ii) the product (stated as a 
                        percentage) of--
                                    ``(I) 2\1/2\; and
                                    ``(II) the member's years 
                                of creditable service (as 
                                defined in subsection (c)) in 
                                excess of 30 years of 
                                creditable service, under 
                                conditions authorized for 
                                purposes of this subparagraph 
                                during a period designated by 
                                the Secretary of Defense for 
                                purposes of this 
                                subparagraph.''.
    (b) Retired Pay for Non-Regular Service.--Section 12739(c) 
of such title is amended--
            (1) by striking ``The total amount'' and inserting 
        ``(1) Except as provided in paragraph (2), the total 
        amount''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(2) In the case of a person who retires after 
        December 31, 2006, with more than 30 years of service 
        credited to that person under section 12733 of this 
        title, the total amount of the monthly retired pay 
        computed under subsections (a) and (b) may not exceed 
        the sum of--
                    ``(A) 75 percent of the retired pay base 
                upon which the computation is based; and
                    ``(B) the product of--
                            ``(i) the retired pay base upon 
                        which the computation is based; and
                            ``(ii) 2\1/2\ percent of the years 
                        of service credited to that person 
                        under section 12733 of this title, for 
                        service under conditions authorized for 
                        purposes of this paragraph during a 
                        period designated by the Secretary of 
                        Defense for purposes of this 
                        paragraph.''.

SEC. 643. MILITARY SURVIVOR BENEFIT PLAN BENEFICIARIES UNDER INSURABLE 
                    INTEREST COVERAGE.

    (a) Authority To Elect New Beneficiary.--Section 1448(b)(1) 
of title 10, United States Code, is amended--
            (1) by inserting ``or under subparagraph (G) of 
        this paragraph'' in the second sentence of subparagraph 
        (E) before the period at the end; and
            (2) by adding at the end the following new 
        subparagraph:
                    ``(G) Election of new beneficiary upon 
                death of previous beneficiary.--
                            ``(i) Authority for election.--If 
                        the reason for discontinuation in the 
                        Plan is the death of the beneficiary, 
                        the participant in the Plan may elect a 
                        new beneficiary. Any such beneficiary 
                        must be a natural person with an 
                        insurable interest in the participant. 
                        Such an election may be made only 
                        during the 180-day period beginning on 
                        the date of the death of the previous 
                        beneficiary.
                            ``(ii) Procedures.--Such an 
                        election shall be in writing, signed by 
                        the participant, and made in such form 
                        and manner as the Secretary concerned 
                        may prescribe. Such an election shall 
                        be effective the first day of the first 
                        month following the month in which the 
                        election is received by the Secretary.
                            ``(iii) Vitiation of election by 
                        participant who dies within two years 
                        of election.--If a person providing an 
                        annuity under a election under clause 
                        (i) dies before the end of the two-year 
                        period beginning on the effective date 
                        of the election--
                                    ``(I) the election is 
                                vitiated; and
                                    ``(II) the amount by which 
                                the person's retired pay was 
                                reduced under section 1452 of 
                                this title that is attributable 
                                to the election shall be paid 
                                in a lump sum to the person who 
                                would have been the deceased 
                                person's beneficiary under the 
                                vitiated election if the 
                                deceased person had died after 
                                the end of such two-year 
                                period.''.
    (b) Change in Premium for Coverage of New Beneficiary.--
Section 1452(c) of such title is amended by adding at the end 
the following new paragraph:
            ``(5) Rule for designation of new insurable 
        interest beneficiary following death of original 
        beneficiary.--The Secretary of Defense shall prescribe 
        in regulations premiums which a participant making an 
        election under section 1448(b)(1)(G) of this title 
        shall be required to pay for participating in the Plan 
        pursuant to that election. The total amount of the 
        premiums to be paid by a participant under the 
        regulations shall be equal to the sum of the following:
                    ``(A) The total additional amount by which 
                the retired pay of the participant would have 
                been reduced before the effective date of the 
                election if the original beneficiary (i) had 
                not died and had been covered under the Plan 
                through the date of the election, and (ii) had 
                been the same number of years younger than the 
                participant (if any) as the new beneficiary 
                designated under the election.
                    ``(B) Interest on the amounts by which the 
                retired pay of the participant would have been 
                so reduced, computed from the dates on which 
                the retired pay would have been so reduced at 
                such rate or rates and according to such 
                methodology as the Secretary of Defense 
                determines reasonable.
                    ``(C) Any additional amount that the 
                Secretary determines necessary to protect the 
                actuarial soundness of the Department of 
                Defense Military Retirement Fund against any 
                increased risk for the fund that is associated 
                with the election.''.
    (c) Transition.--
            (1) Transition period.--In the case of a 
        participant in the Survivor Benefit Plan who made a 
        covered insurable-interest election (as defined in 
        paragraph (2)) and whose designated beneficiary under 
        that election dies before the date of the enactment of 
        this Act or during the 18-month period beginning on 
        such date, the time period applicable for purposes of 
        the limitation in the third sentence of subparagraph 
        (G)(i) of section 1448(b)(1) of title 10, United States 
        Code, as added by subsection (a), shall be the two-year 
        period beginning on the date of the enactment of this 
        Act (rather than the 180-day period specified in that 
        sentence).
            (2) Covered insurable-interest elections.--For 
        purposes of paragraph (1), a covered insurable-interest 
        election is an election under section 1448(b)(1) of 
        title 10, United States Code, made before the date of 
        the enactment of this Act, or during the 18-month 
        period beginning on such date, by a participant in the 
        Survivor Benefit Plan to provide an annuity under that 
        plan to a natural person with an insurable interest in 
        that person.
            (3) Survivor benefit plan.--For purposes of this 
        subsection, the term ``Survivor Benefit Plan'' means 
        the program under subchapter II of chapter 73 of title 
        10, United States Code.

SEC. 644. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF AUTHORITY FOR 
                    OPTIONAL ANNUITIES FOR DEPENDENTS UNDER THE 
                    SURVIVOR BENEFIT PLAN.

    (a) In General.--Section 1448(d)(2)(B) of title 10, United 
States Code, is amended by striking ``who dies after November 
23, 2003'' and inserting ``who dies after October 7, 2001''.
    (b) Applicability.--Any annuity payable to a dependent 
child under subchapter II of chapter 73 of title 10, United 
States Code, by reason of the amendment made by subsection (a) 
shall be payable only for months beginning on or after the date 
of the enactment of this Act.

SEC. 645. STUDY OF TRAINING COSTS, MANNING, OPERATIONS TEMPO, AND OTHER 
                    FACTORS THAT AFFECT RETENTION OF MEMBERS OF THE 
                    ARMED FORCES WITH SPECIAL OPERATIONS DESIGNATIONS.

    (a) Report Required.--Not later than August 1, 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 on factors that affect 
retention of members of the Armed Forces who have a special 
operations forces designation.
    (b) Elements.--The report under subsection (a) shall 
include the following:
            (1) Information on the cost of training of members 
        of the Armed Forces who have a special operations 
        forces designation, with such information displayed 
        separately and shown as aggregate costs of training for 
        such members at the 4-year, 8-year, 12-year, 16-year, 
        and 20-year points of service.
            (2) The average cost of special operations-unique 
        training, both predeployment and during deployment, for 
        the number of members of the Armed Forces who have a 
        special operations forces designation who have been 
        deployed at least twice to areas in which they were 
        eligible for hostile fire pay.
            (3) For each component of the United States Special 
        Operations Command, an estimate of when the assigned 
        strength of that component will be under 90 percent of 
        the authorized strength of that component, taking into 
        account anticipated growth planned for in the most 
        recent Quadrennial Defense Review.
            (4) The percentage of members of the Armed Forces 
        with a special operations forces designation who have 
        accumulated over 48 months of hostile fire pay and the 
        percentage who have accumulated over 60 months of such 
        pay.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN MERCHANDISE SOLD AT 
                    COMMISSARY STORES.

    (a) Merchandise Procured From Exchanges.--Subsection (c)(3) 
of section 2484 of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) by striking ``Subsections'' and inserting 
        ``Except as provided in subparagraph (B), 
        subsections''; and
            (3) by adding at the end the following new 
        subparagraph:
    ``(B) When a military exchange is the vendor of tobacco 
products or other merchandise authorized for sale in a 
commissary store under paragraph (1), any revenue above the 
cost of procuring the merchandise shall be allocated as if the 
revenue were a uniform sales price surcharge described in 
subsection (d).''.
    (b) Merchandise Treated as Noncommissary Store Inventory.--
Subsection (g) of such section is amended--
            (1) by inserting ``(1)'' before 
        ``Notwithstanding'';
            (2) by striking ``Subsections'' and inserting 
        ``Except as provided in paragraph (2), subsections''; 
        and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) When tobacco products are authorized for sale in a 
commissary store as noncommissary store inventory, any revenue 
above the cost of procuring the tobacco products shall be 
allocated as if the revenue were a uniform sales price 
surcharge described in subsection (d).''.

SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF DEFENSE 
                    PROPERTY FOR PROTECTION OF MORALE, WELFARE, AND 
                    RECREATION ACTIVITIES AND REVENUE.

    (a) Additional Condition on Use of Lease Authority.--
Subsection (b) section 2667 of title 10, United States Code, is 
amended--
            (1) in paragraph (4), by striking ``and'' at the 
        end;
            (2) in paragraph (5), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(6) except as otherwise provided in subsection 
        (d), shall require the lessee to provide the covered 
        entities specified in paragraph (1) of that subsection 
        the right to establish and operate a community support 
        facility or provide community support services, or seek 
        equitable compensation for morale, welfare, and 
        recreation programs of the Department of Defense in 
        lieu of the operation of such a facility or the 
        provision of such services, if the Secretary determines 
        that the lessee will provide merchandise or services in 
        direct competition with covered entities through the 
        lease.''.
    (b) Application of Condition; Waiver.--Such section is 
further amended--
            (1) by redesignating subsections (d) through (i) as 
        subsections (e) through (j), respectively; and
            (2) by inserting after subsection (c) the following 
        new subsection (d):
    ``(d) Community Support Facilities and Community Support 
Services Under Lease; Waiver.--(1) In this subsection and 
subsection (b)(6), the term `covered entity' means each of the 
following:
            ``(A) The Army and Air Force Exchange Service.
            ``(B) The Navy Exchange Service Command.
            ``(C) The Marine Corps exchanges.
            ``(D) The Defense Commissary Agency.
            ``(E) The revenue-generating nonappropriated fund 
        activities of the Department of Defense conducted for 
        the morale, welfare, and recreation of members of the 
        armed forces.
    ``(2) The Secretary of a military department may waive the 
requirement in subsection (b)(6) with respect to a lease if--
            ``(A) the lease is entered into under subsection 
        (g); or
            ``(B) the Secretary determines that the waiver is 
        in the best interests of the Government.
    ``(3) The Secretary of the military department concerned 
shall provide to the congressional defense committees written 
notice of each waiver under paragraph (2), including the 
reasons for the waiver.
    ``(4) The covered entities shall exercise the right 
provided in subsection (b)(6) with respect to a lease, if at 
all, not later than 90 days after receiving notice from the 
Secretary of the military department concerned regarding the 
opportunity to exercise such right with respect to the lease. 
The Secretary may, at the discretion of the Secretary, extend 
the period under this paragraph for the exercise of the right 
with respect to a lease for such additional period as the 
Secretary considers appropriate.
    ``(5) The Secretary of Defense shall prescribe in 
regulations uniform procedures and criteria for the evaluation 
of proposals for enhanced use leases involving the operation of 
community support facilities or the provision of community 
support services by either a lessee under this section or a 
covered entity.
    ``(6) The Secretary of the military department concerned 
shall provide written notification to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives regarding all leases under this 
section that include the operation of a community support 
facility or the provision of community support services, 
regardless of whether the facility will be operated by a 
covered entity or the lessee or the services will be provided 
by a covered entity or the lessee.''.
    (c) Definitions.--Subsection (i) of such section, as 
redesignated by subsection (b)(1) of this section, is amended 
to read as follows:
    ``(i) Definitions.--In this section:
            ``(1) The term `community support facility' 
        includes an ancillary supporting facility (as that term 
        is defined in section 2871(1) of this title).
            ``(2) The term `community support services' 
        includes revenue-generating food, recreational, lodging 
        support services, and resale operations and other 
        retail facilities and services intended to support a 
        community.
            ``(3) The term `military installation' has the 
        meaning given such term in section 2687(e)(1) of this 
        title.''.
    (d) Stylistic, Technical, and Conforming Amendments.--Such 
section is further amended--
            (1) in subsection (a), by inserting ``Lease 
        Authority.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Conditions on 
        Leases.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Types of In-
        Kind Consideration.--'' after ``(c)'';
            (4) in subsection (e), as redesignated by 
        subsection (b)(1) of this section--
                    (A) by inserting ``Deposit and Use of 
                Proceeds.--'' after ``(e)''; and
                    (B) in paragraph (5), by striking 
                ``subsection (f)'' and inserting ``subsection 
                (g)'';
            (5) in subsection (f), as redesignated by 
        subsection (b)(1) of this section, by inserting 
        ``Treatment of Lessee Interest in Property.--'' after 
        ``(f)'';
            (6) in subsection (g), as redesignated by 
        subsection (b)(1) of this section--
                    (A) by inserting ``Special Rules for Base 
                Closure and Realignment Property.--'' after 
                ``(g)''; and
                    (B) in paragraph (1), by striking 
                ``subsection (a)(3)'' and inserting 
                ``subsection (a)(2)'';
            (7) in subsection (h), as redesignated by 
        subsection (b)(1) of this section, by inserting 
        ``Competitive Procedures for Selection of Certain 
        Lessees; Exception.--'' after ``(h)'' and
            (8) in subsection (j), as redesignated by 
        subsection (b)(1) of this section, by inserting 
        ``Exclusion of Certain Lands.--'' after ``(j)''.

SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING COMMERCIAL 
                    INSURANCE FOR COMMISSARY AND EXCHANGE FACILITIES 
                    AND FACILITIES OF OTHER MORALE, WELFARE, AND 
                    RECREATION PROGRAMS AND NONAPPROPRIATED FUND 
                    INSTRUMENTALITIES.

    (a) Report Required.--Not later than July 31, 2007, the 
Secretary of Defense shall submit to Congress a report 
evaluating the cost effectiveness of the Defense Commissary 
Agency and the nonappropriated fund activities specified in 
subsection (b) purchasing commercial insurance to protect 
financial interests in facilities operated by the Defense 
Commissary Agency or those nonappropriated fund activities.
    (b) Covered Nonappropriated Fund Activities.--The report 
shall apply with respect to--
            (1) the Army and Air Force Exchange Service;
            (2) the Navy Exchange Service Command;
            (3) the Marine Corps exchanges; and
            (4) any nonappropriated fund activity of the 
        Department of Defense for the morale, welfare, and 
        recreation of members of the Armed Forces.

SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED PERSONS TO 
                    MORALE, WELFARE, AND RECREATION FACILITIES AND 
                    ACTIVITIES.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study regarding the current capability of morale, welfare, 
and recreation facilities and activities operated by 
nonappropriated fund instrumentalities of the Department of 
Defense to provide access to and accommodate disabled persons 
who are otherwise eligible to use such facilities or 
participate in such activities and the legal requirements 
regarding such access and accommodation applicable to these 
morale, welfare, and recreation facilities and activities, with 
specific attention to the applicability of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794).
    (b) Elements of Study.--In conducting the study, the 
Secretary of Defense shall address at a minimum the following:
            (1) The current plans of the Secretary of Defense 
        and the Secretaries of the military departments to 
        improve the access and accommodation of disabled 
        persons to morale, welfare, and recreation facilities 
        and activities operated by nonappropriated fund 
        instrumentalities of the Department of Defense, 
        including plans to make available additional golf carts 
        at military golf courses that are accessible for 
        disabled persons authorized to use such courses, and 
        whether any portion of these plans require 
        congressional authorization or funding.
            (2) The timing and cost of making these morale, 
        welfare, and recreation facilities and activities fully 
        accessible to disabled persons.
            (3) The expected utilization rates of these morale, 
        welfare, and recreation facilities and activities by 
        disabled persons, if the facilities and activities were 
        fully accessible to disabled persons.
            (4) Any legal requirements applicable to providing 
        golf carts at military golf courses that are accessible 
        for disabled persons authorized to use such courses and 
        the current availability of accessible golf carts at 
        such courses.
    (c) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report containing the results of the 
study and any related findings, conclusions, and 
recommendations that the Secretary considers to be appropriate 
concerning the access of disabled persons to morale, welfare, 
and recreation facilities and activities, and specifically the 
Secretary's conclusions on making accessible golf carts 
available at all military golf courses for use by disabled 
persons authorized to use such courses.

                       Subtitle F--Other Matters

SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED TO 
                    SERVICEMEMBERS AND DEPENDENTS.

    (a) Terms of Consumer Credit.--Chapter 49 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 987. Terms of consumer credit extended to members and 
                    dependents: limitations

    ``(a) Interest.--A creditor who extends consumer credit to 
a covered member of the armed forces or a dependent of such a 
member shall not require the member or dependent to pay 
interest with respect to the extension of such credit, except 
as--
            ``(1) agreed to under the terms of the credit 
        agreement or promissory note;
            ``(2) authorized by applicable State or Federal 
        law; and
            ``(3) not specifically prohibited by this section.
    ``(b) Annual Percentage Rate.--A creditor described in 
subsection (a) may not impose an annual percentage rate of 
interest greater than 36 percent with respect to the consumer 
credit extended to a covered member or a dependent of a covered 
member.
    ``(c) Mandatory Loan Disclosures.--
            ``(1) Information required.--With respect to any 
        extension of consumer credit (including any consumer 
        credit originated or extended through the internet) to 
        a covered member or a dependent of a covered member, a 
        creditor shall provide to the member or dependent the 
        following information orally and in writing before the 
        issuance of the credit:
                    ``(A) A statement of the annual percentage 
                rate of interest applicable to the extension of 
                credit.
                    ``(B) Any disclosures required under the 
                Truth in Lending Act (15 U.S.C. 1601 et seq.).
                    ``(C) A clear description of the payment 
                obligations of the member or dependent, as 
                applicable.
            ``(2) Terms.--Such disclosures shall be presented 
        in accordance with terms prescribed by the regulations 
        issued by the Board of Governors of the Federal Reserve 
        System to implement the Truth in Lending Act (15 U.S.C. 
        1601 et seq.).
    ``(d) Preemption.--
            ``(1) Inconsistent laws.--Except as provided in 
        subsection (f)(2), this section preempts any State or 
        Federal law, rule, or regulation, including any State 
        usury law, to the extent that such law, rule, or 
        regulation is inconsistent with this section, except 
        that this section shall not preempt any such law, rule, 
        or regulation that provides protection to a covered 
        member or a dependent of such a member in addition to 
        the protection provided by this section.
            ``(2) Different treatment under state law of 
        members and dependents prohibited.--States shall not--
                    ``(A) authorize creditors to charge covered 
                members and their dependents annual percentage 
                rates of interest for loans higher than the 
                legal limit for residents of the State; or
                    ``(B) permit violation or waiver of any 
                State consumer lending protections for the 
                benefit of residents of the State on the basis 
                of nonresident or military status of a covered 
                member or dependent of such a member, 
                regardless of the member's or dependent's 
                domicile or permanent home of record.
    ``(e) Limitations.--It shall be unlawful for any creditor 
to extend consumer credit to a covered member or a dependent of 
such a member with respect to which--
            ``(1) the creditor rolls over, renews, repays, 
        refinances, or consolidates any consumer credit 
        extended to the borrower by the same creditor with the 
        proceeds of other credit extended to the same covered 
        member or a dependent;
            ``(2) the borrower is required to waive the 
        borrower's right to legal recourse under any otherwise 
        applicable provision of State or Federal law, including 
        any provision of the Servicemembers Civil Relief Act;
            ``(3) the creditor requires the borrower to submit 
        to arbitration or imposes onerous legal notice 
        provisions in the case of a dispute;
            ``(4) the creditor demands unreasonable notice from 
        the borrower as a condition for legal action;
            ``(5) the creditor uses a check or other method of 
        access to a deposit, savings, or other financial 
        account maintained by the borrower, or the title of a 
        vehicle as security for the obligation;
            ``(6) the creditor requires as a condition for the 
        extension of credit that the borrower establish an 
        allotment to repay an obligation; or
            ``(7) the borrower is prohibited from prepaying the 
        loan or is charged a penalty or fee for prepaying all 
        or part of the loan.
    ``(f) Penalties and Remedies.--
            ``(1) Misdemeanor.--A creditor who knowingly 
        violates this section shall be fined as provided in 
        title 18, or imprisoned for not more than one year, or 
        both.
            ``(2) Preservation of other remedies.--The remedies 
        and rights provided under this section are in addition 
        to and do not preclude any remedy otherwise available 
        under law to the person claiming relief under this 
        section, including any award for consequential and 
        punitive damages.
            ``(3) Contract void.--Any credit agreement, 
        promissory note, or other contract prohibited under 
        this section is void from the inception of such 
        contract.
            ``(4) Arbitration.--Notwithstanding section 2 of 
        title 9, or any other Federal or State law, rule, or 
        regulation, no agreement to arbitrate any dispute 
        involving the extension of consumer credit shall be 
        enforceable against any covered member or dependent of 
        such a member, or any person who was a covered member 
        or dependent of that member when the agreement was 
        made.
    ``(g) Servicemembers Civil Relief Act Protections 
Unaffected.--Nothing in this section may be construed to limit 
or otherwise affect the applicability of section 207 of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 527).
    ``(h) Regulations.--(1) The Secretary of Defense shall 
prescribe regulations to carry out this section.
    ``(2) Such regulations shall establish the following:
            ``(A) Disclosures required of any creditor that 
        extends consumer credit to a covered member or 
        dependent of such a member.
            ``(B) The method for calculating the applicable 
        annual percentage rate of interest on such obligations, 
        in accordance with the limit established under this 
        section.
            ``(C) A maximum allowable amount of all fees, and 
        the types of fees, associated with any such extension 
        of credit, to be expressed and disclosed to the 
        borrower as a total amount and as a percentage of the 
        principal amount of the obligation, at the time at 
        which the transaction is entered into.
            ``(D) Definitions of `creditor' under paragraph (5) 
        and `consumer credit' under paragraph (6) of subsection 
        (i), consistent with the provisions of this section.
            ``(E) Such other criteria or limitations as the 
        Secretary of Defense determines appropriate, consistent 
        with the provisions of this section.
    ``(3) In prescribing regulations under this subsection, the 
Secretary of Defense shall consult with the following:
            ``(A) The Federal Trade Commission.
            ``(B) The Board of Governors of the Federal Reserve 
        System.
            ``(C) The Office of the Comptroller of the 
        Currency.
            ``(D) The Federal Deposit Insurance Corporation.
            ``(E) The Office of Thrift Supervision.
            ``(F) The National Credit Union Administration
            ``(G) The Treasury Department.
    ``(i) Definitions.--In this section:
            ``(1) Covered member.--The term `covered member' 
        means a member of the armed forces who is--
                    ``(A) on active duty under a call or order 
                that does not specify a period of 30 days or 
                less; or
                    ``(B) on active Guard and Reserve Duty.
            ``(2) Dependent.--The term `dependent', with 
        respect to a covered member, means--
                    ``(A) the member's spouse;
                    ``(B) the member's child (as defined in 
                section 101(4) of title 38); or
                    ``(C) an individual for whom the member 
                provided more than one-half of the individual's 
                support for 180 days immediately preceding an 
                extension of consumer credit covered by this 
                section.
            ``(3) Interest.--The term `interest' includes all 
        cost elements associated with the extension of credit, 
        including fees, service charges, renewal charges, 
        credit insurance premiums, any ancillary product sold 
        with any extension of credit to a servicemember or the 
        servicemember's dependent, as applicable, and any other 
        charge or premium with respect to the extension of 
        consumer credit.
            ``(4) Annual percentage rate.--The term `annual 
        percentage rate' has the same meaning as in section 107 
        of the Truth and Lending Act (15 U.S.C. 1606), as 
        implemented by regulations of the Board of Governors of 
        the Federal Reserve System. For purposes of this 
        section, such term includes all fees and charges, 
        including charges and fees for single premium credit 
        insurance and other ancillary products sold in 
        connection with the credit transaction, and such fees 
        and charges shall be included in the calculation of the 
        annual percentage rate.
            ``(5) Creditor.--The term `creditor' means a 
        person--
                    ``(A) who--
                            ``(i) is engaged in the business of 
                        extending consumer credit; and
                            ``(ii) meets such additional 
                        criteria as are specified for such 
                        purpose in regulations prescribed under 
                        this section; or
                    ``(B) who is an assignee of a person 
                described in subparagraph (A) with respect to 
                any consumer credit extended.
            ``(6) Consumer credit.--The term `consumer credit' 
        has the meaning provided for such term in regulations 
        prescribed under this section, except that such term 
        does not include (A) a residential mortgage, or (B) a 
        loan procured in the course of purchasing a car or 
        other personal property, when that loan is offered for 
        the express purpose of financing the purchase and is 
        secured by the car or personal property procured.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such title is amended by adding at the end the 
following new item:

``987. Terms of consumer credit extended to members and dependents: 
          limitations.''.

    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph 
        (2), section 987 of title 10, United States Code, as 
        added by subsection (a), shall take effect on October 
        1, 2007, or on such earlier date as may be prescribed 
        by the Secretary of Defense, and shall apply with 
        respect to extensions of consumer credit on or after 
        such effective date.
            (2) Authority to prescribe regulations.--Subsection 
        (h) of such section shall take effect on the date of 
        the enactment of this Act.
            (3) Publication of earlier effective date.--If the 
        Secretary of Defense prescribes an effective date for 
        section 987 of title 10, United States Code, as added 
        by subsection (a), earlier than October 1, 2007, the 
        Secretary shall publish that date in the Federal 
        Register. Such publication shall be made not less than 
        90 days before that earlier effective date.
    (d) Interim Regulations.--The Secretary of Defense may 
prescribe interim regulations as necessary to carry out such 
section. For the purpose of prescribing such interim 
regulations, the Secretary is excepted from compliance with the 
notice-and-comment requirements of section 553 of title 5, 
United States Code. All interim rules prescribed under the 
authority of this subsection that are not earlier superseded by 
final rules shall expire no later than 270 days after the 
effective date of section 987 of title 10, United States Code, 
as added by this section.

SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT OF 
                    PAY AND ALLOWANCES AND TRAVEL AND TRANSPORTATION 
                    ALLOWANCES.

    (a) Maximum Waiver Amount; Time for Exercise of 
Authority.--Section 2774 of title 10, United States Code, is 
amended--
            (1) in subsection (a)(2)(A), by striking ``$1,500'' 
        and inserting ``$10,000''; and
            (2) in subsection (b)(2), by striking ``three 
        years'' and inserting ``five years''.
    (b) Conforming Amendments Regarding National Guard.--
Section 716 of title 32, United States Code, is amended--
            (1) in subsection (a)(2)(A), by striking ``$1,500'' 
        and inserting ``$10,000''; and
            (2) in subsection (b)(2), by striking ``three 
        years'' and inserting ``five years''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on March 1, 2007.

SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES REGARDING 
                    DEBTS OR ERRONEOUS PAYMENTS PENDING A DECISION TO 
                    WAIVE, REMIT, OR CANCEL.

    (a) Exception.--Section 2780(b) of title 10, United States 
Code, is amended--
            (1) by striking ``The Secretary'' and inserting 
        ``(1) Except as provided in paragraph (2), the 
        Secretary of Defense''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) No disclosure shall be made under paragraph (1) with 
respect to an indebtedness while a decision regarding waiver of 
collection of the indebtedness is pending under section 2774 of 
this title or section 716 of title 32, or while a decision 
regarding remission or cancellation of the indebtedness is 
pending under section 4837, 6161, or 9837 of this title, unless 
the Secretary concerned (as defined in section 101(5) of title 
37) determines that disclosure under that paragraph pending 
such decision is in the best interests of the United States.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this 
        section shall take effect on March 1, 2007.
            (2) Application to prior actions.--Paragraph (2) of 
        section 2780(b) of title 10, United States Code, as 
        added by subsection (a), shall not be construed to 
        apply to or invalidate any action taken under such 
        section before March 1, 2007.
    (c) Report.--Not later than March 1, 2007, the Secretary of 
Defense shall submit to the congressional defense committees a 
report on the requirement in section 2780(b) of title 10, 
United States Code, to disclose to consumer reporting agencies 
in accordance with section 3711 of title 31, United States 
Code, information concerning certain indebtedness owed to the 
United States. The report shall include the following:
            (1) The total number of members of the Armed Forces 
        whose indebtedness has been disclosed to consumer 
        reporting agencies under section 2780(b), United States 
        Code, during the period beginning on January 1, 2003, 
        and ending on June 30, 2006.
            (2) The circumstances under which a decision to 
        recover the indebtedness was made, rather than a 
        decision to waive, remit, or cancel the indebtedness 
        under the provisions of law referred to in paragraph 
        (2) of such section, as added by subsection (a), and 
        the title of the person who made the decision.
            (3) The cost of contracts for collection services 
        to recover indebtedness owed to the United States that 
        is delinquent.
            (4) An evaluation of whether or not such contracts, 
        and the practice of disclosing to consumer reporting 
        agencies the identity of members of the Armed Forces 
        who owe a delinquent debt to the United States, has 
        been effective in reducing indebtedness to the United 
        States.
            (5) Such recommendations as the Secretary considers 
        appropriate regarding the continuing disclosure of such 
        information with respect to members of the Armed 
        Forces.

SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT OR CANCEL 
                    INDEBTEDNESS OF MEMBERS AND FORMER MEMBERS OF THE 
                    ARMED FORCES INCURRED ON ACTIVE DUTY.

    (a) Department of the Army.--
            (1) Coverage of all members and former members.--
        Subsection (a) of section 4837 of title 10, United 
        States Code, is amended by striking ``of a member'' and 
        all that follows through ``on active duty'' and 
        inserting ``of a person to the United States or any 
        instrumentality of the United States incurred while the 
        person was serving on active duty as a member of the 
        Army''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--
        Paragraph (3) of section 683(a) of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-
        163; 119 Stat. 3322; 10 U.S.C. 4837 note) is repealed.
    (b) Department of the Navy.--
            (1) Coverage of all members and former members.--
        Section 6161 of title 10, United States Code, is 
        amended by striking ``of a member'' and all that 
        follows through ``on active duty'' and inserting ``of a 
        person to the United States or any instrumentality of 
        the United States incurred while the person was serving 
        on active duty as a member of the naval service''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--
        Paragraph (3) of section 683(b) of the National Defense 
        Authorization Act for Fiscal Year 2006 (119 Stat. 3323; 
        10 U.S.C. 6161 note) is repealed.
    (c) Department of the Air Force.--
            (1) Coverage of all members and former members.--
        Subsection (a) of section 9837 of title 10, United 
        States Code, is amended by striking ``of a member'' and 
        all that follows through ``on active duty'' and 
        inserting ``of a person to the United States or any 
        instrumentality of the United States incurred while the 
        person was serving on active duty as a member of the 
        Air Force''.
            (2) Repeal of limitation on time for exercise of 
        authority.--Such section is further amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and 
                (d) as subsections (b) and (c), respectively.
            (3) Repeal of termination of modified authority.--
        Paragraph (3) of section 683(c) of the National Defense 
        Authorization Act for Fiscal Year 2006 (119 Stat. 3324; 
        10 U.S.C. 9837 note) is repealed.
    (d) Deadline for Regulations.--The Secretary of Defense 
shall prescribe the regulations required for purposes of 
sections 4837, 6161, and 9837 of title 10, United States Code, 
as amended by this section, not later than March 1, 2007.
    (e) Clarifying and Editorial Amendments.--
            (1) Secretary of the army.--Subsection (a) of 
        section 4837 of title 10, United States Code, as 
        amended by subsection (a)(1), is further amended--
                    (A) by striking ``If the'' and all that 
                follows through ``States, the Secretary'' and 
                inserting ``The Secretary of the Army''; and
                    (B) by inserting before the period at the 
                end ``, but only if the Secretary considers 
                such action to be in the best interest of the 
                United States''.
            (2) Secretary of the navy.--Subsection (a) of 
        section 6161 of such title, as amended by subsection 
        (b)(1), is further amended--
                    (A) by striking ``If the'' and all that 
                follows through ``States, the Secretary'' and 
                inserting ``The Secretary of the Navy''; and
                    (B) by inserting before the period at the 
                end ``, but only if the Secretary considers 
                such action to be in the best interest of the 
                United States''.
            (3) Secretary of the air force.--Subsection (a) of 
        section 9837 of such title, as amended by subsection 
        (c)(1), is further amended--
                    (A) by striking ``If the'' and all that 
                follows through ``States, the Secretary'' and 
                inserting ``The Secretary of the Air Force''; 
                and
                    (B) by inserting before the period at the 
                end ``, but only if the Secretary considers 
                such action to be in the best interest of the 
                United States''.

SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO MEMBERS OF THE 
                    UNIFORMED SERVICES.

    (a) Phased Recovery Required; Maximum Monthly 
Installment.--Subsection (c) of section 1007 of title 37, 
United States Code, is amended by adding at the end the 
following new paragraph:
    ``(3) If the indebtedness of a member of the uniformed 
services to the United States is due to the overpayment of pay 
or allowances to the member through no fault of the member, the 
amount of the overpayment shall be recovered in monthly 
installments. The amount deducted from the pay of the member 
for a month to recover the overpayment amount may not exceed 20 
percent of the member's pay for that month unless the member 
requests or consents to collection of the overpayment at an 
accelerated rate.''.
    (b) Recovery Delay for Injured Members.--Such subsection is 
further amended by inserting after paragraph (3), as added by 
subsection (a), the following new paragraph:
    ``(4) If a member of the uniformed services is injured or 
wounded under the circumstances described in section 
310(a)(2)(C) of this title or, while in the line of duty, 
incurs a wound, injury, or illness in a combat operation or 
combat zone designated by the Secretary of Defense, any 
overpayment of pay or allowances made to the member while the 
member recovers from the wound, injury, or illness may not be 
deducted from the member's pay until--
            ``(A) the end of the 90-day period beginning on the 
        date on which the member is notified of the 
        overpayment; or
            ``(B) such earlier date as may be requested or 
        agreed to by the member.''.
    (c) Conforming Amendments.--Such subsection is further 
amended--
            (1) by inserting ``(1)'' before ``Under 
        regulations'';
            (2) by striking ``his pay'' both places it appears 
        and inserting ``the member's pay'';
            (3) by striking ``However, after'' and inserting 
        the following:
    ``(2) After''; and
            (4) by inserting ``by a member of the uniformed 
        services'' after ``actually received''.

SEC. 675. JOINT FAMILY SUPPORT ASSISTANCE PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry 
out a joint family support assistance program for the purpose 
of providing to families of members of the Armed Forces the 
following types of assistance:
            (1) Financial and material assistance.
            (2) Mobile support services.
            (3) Sponsorship of volunteers and family support 
        professionals for the delivery of support services.
            (4) Coordination of family assistance programs and 
        activities provided by Military OneSource, Military 
        Family Life Consultants, counselors, the Department of 
        Defense, other Federal agencies, State and local 
        agencies, and non-profit entities.
            (5) Facilitation of discussion on military family 
        assistance programs, activities, and initiatives 
        between and among the organizations, agencies, and 
        entities referred to in paragraph (4).
            (6) Such other assistance that the Secretary 
        considers appropriate.
    (b) Locations.--The Secretary of Defense shall carry out 
the program in not more than six areas of the United States 
selected by the Secretary. Up to three of the areas selected 
for the program shall be areas that are geographically isolated 
from military installations.
    (c) Resources and Volunteers.--The Secretary of Defense 
shall provide personnel and other resources of the Department 
of Defense necessary for the implementation and operation of 
the program and may accept and utilize the services of non-
Government volunteers and non-profit entities under the 
program.
    (d) Procedures.--The Secretary of Defense shall establish 
procedures for the operation of the program and for the 
provision of assistance to families of members of the Armed 
Forces under the program.
    (e) Relation to Family Support Centers.--The program is not 
intended to operate in lieu of existing family support centers, 
but is instead intended to augment the activities of the family 
support centers.
    (f) Implementation Plan.--
            (1) Plan required.--Not later than 90 days after 
        the date on which funds are first obligated for the 
        program, the Secretary of Defense shall submit to the 
        congressional defense committees a report setting forth 
        a plan for the implementation of the program.
            (2) Elements.--The plan required under paragraph 
        (1) shall include the following:
                    (A) A description of the actions taken to 
                select the areas in which the program will be 
                conducted.
                    (B) A description of the procedures 
                established under subsection (d).
                    (C) A review of proposed actions to be 
                taken under the program to improve coordination 
                of family assistance program and activities 
                between and among the Department of Defense, 
                other Federal agencies, State and local 
                agencies, and non-profit entities.
    (g) Report.--
            (1) Report required.--Not later than 270 days after 
        the date on which funds are first obligated for the 
        program, the Secretary of Defense shall submit to the 
        congressional defense committees a report on the 
        program.
            (2) Elements.--The report shall include the 
        following:
                    (A) A description of the program, including 
                the areas in which the program is conducted, 
                the procedures established under subsection (d) 
                for operation of the program, and the 
                assistance provided through the program for 
                families of members of the Armed Forces.
                    (B) An assessment of the effectiveness of 
                the program in providing assistance to families 
                of members of the Armed Forces.
                    (C) An assessment of the advisability of 
                extending the program or making it permanent.
    (h) Duration.--The authority to carry out the program shall 
expire at the end of the three-year period beginning on the 
date on which funds are first obligated for the program.

SEC. 676. SPECIAL WORKING GROUP ON TRANSITION TO CIVILIAN EMPLOYMENT OF 
                    NATIONAL GUARD AND RESERVE MEMBERS RETURNING FROM 
                    DEPLOYMENT IN OPERATION IRAQI FREEDOM OR OPERATION 
                    ENDURING FREEDOM.

    (a) Working Group Required.--The Secretary of Defense shall 
establish within the Department of Defense a working group to 
identify and assess the needs of members of the National Guard 
and Reserve returning from deployment in Operation Iraqi 
Freedom or Operation Enduring Freedom in making the transition 
to civilian employment on their return from such deployment.
    (b) Members.--
            (1) Appointment.--Subject to paragraph (2), the 
        Secretary of Defense shall appoint the members of the 
        working group. The Secretary of Defense shall attempt 
        to achieve a balance of members on the working group 
        from among employees of the following agencies:
                    (A) The Department of Defense.
                    (B) The Department of Veterans Affairs.
                    (C) The Department of Labor.
            (2) Concurrence.--The appointment of employees of 
        the Department of Veterans Affairs and the Department 
        of Labor under paragraph (1) shall be subject to the 
        concurrence of the Secretary of Veterans Affairs and 
        the Secretary of Labor, respectively.
    (c) Responsibilities.--The working group shall--
            (1) identify and assess the needs of members of the 
        National Guard and Reserve returning from deployment in 
        Operation Iraqi Freedom or Operation Enduring Freedom 
        in making the transition to civilian employment on 
        their return from deployment, including the needs of--
                    (A) members who were self-employed before 
                deployment and seek to return to such 
                employment after deployment;
                    (B) members who were students before 
                deployment and seek to return to school or 
                commence employment after deployment;
                    (C) members who have experienced multiple 
                recent deployments; and
                    (D) members who have been wounded or 
                injured during deployment;
            (2) identify and assess the extent to which such 
        members receive promotions on their return from 
        deployment in Operation Iraqi Freedom or Operation 
        Enduring Freedom or experience constructive termination 
        by their employers as a result of such deployment; and
            (3) develop recommendations on means of improving 
        assistance to such members in meeting the needs 
        identified in paragraph (1) on their return from 
        deployment in Operation Iraqi Freedom or Operation 
        Enduring Freedom.
    (d) Consultation.--In carrying out its responsibilities 
under subsection (c), the working group shall consult with the 
following:
            (1) Employees of the Small Business Administration.
            (2) Representatives of employers that employ, and 
        associations of employers whose members employ, members 
        of the National Guard and Reserve deployed in Operation 
        Iraqi Freedom or Operation Enduring Freedom.
            (3) Representatives of employee assistance 
        organizations.
            (4) Representatives of organizations that assist 
        wounded or injured members of the National Guard and 
        Reserves in finding or sustaining employment.
            (5) Representatives of such other public or private 
        organizations and entities as the working group 
        considers appropriate.
    (e) Report.--
            (1) In general.--Not later than one year after the 
        date of the enactment of this Act, the working group 
        established under subsection (a) shall submit to the 
        Secretary of Defense and Congress a report on its 
        activities under subsection (c).
            (2) Elements.--The report shall include the 
        following:
                    (A) The results of the identifications and 
                assessments required under subsection (c).
                    (B) The recommendations developed under 
                subsection (c)(3), including recommendations on 
                the following:
                            (i) The provision of outreach and 
                        training to employers, employment 
                        assistance organizations, and 
                        associations of employers on the 
                        employment and transition needs of 
                        members of the National Guard and 
                        Reserve returning from deployment in 
                        Operation Iraqi Freedom or Operation 
                        Enduring Freedom.
                            (ii) The provision of outreach and 
                        training to employers, employment 
                        assistance organizations, and 
                        associations of employers on the needs 
                        of family members of such members.
                            (iii) The improvement of 
                        collaboration between the pubic and 
                        private sectors in order to ensure the 
                        successful transition of such members 
                        into civilian employment upon their 
                        return from such deployment.
            (3) Availability to public.--The Secretary shall 
        take appropriate actions to make the report available 
        to the public, including through the Internet website 
        of the Department of Defense.
    (f) Termination.--The working group shall terminate on the 
date that is two years after the date of the enactment of this 
Act.
    (g) Employment Assistance Organization Defined.--In this 
section, the term ``employment assistance organization'' means 
an organization or entity, whether public or private, that 
provides assistance to individuals in finding or retaining 
employment, including organizations and entities under military 
career support programs.

SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY EVACUATED FROM A 
                    COMBAT ZONE FOR INPATIENT CARE.

    (a) Audit Required.--The Secretary of the Army shall 
conduct a complete audit of the pay accounts of each member of 
the Army wounded or injured in a combat zone who was evacuated 
from a theater of operations for inpatient care during the 
period beginning on May 1, 2005, and ending on April 30, 2006.
    (b) Report on Results of Audit.--
            (1) Report required.--Not later than 120 days after 
        the date of the enactment of this Act, the Secretary 
        shall submit to the congressional defense committees a 
        report on the audit conducted under subsection (a).
            (2) Identification of members.--The report shall 
        include a list of each member of the Army described in 
        subsection (a) identified, in a manner that protects 
        the privacy of the members, by--
                    (A) the date of the wound or injury that is 
                the basis for the inclusion of the member on 
                the list; and
                    (B) the grade of the member and unit 
                designation as of that date.
            (3) Additional report elements.--For each member 
        included on the list prepared under paragraph (2), the 
        report shall include the following:
                    (A) A statement of any underpayment of each 
                of any pay, allowance, or other monetary 
                benefit to which the member was entitled during 
                the period beginning on the date on which the 
                wound or injury was incurred and ending on 
                April 30, 2006, including basic pay, hazardous 
                duty pay, imminent danger pay, basic allowance 
                for housing, basic allowance for subsistence, 
                any family separation allowance, any tax 
                exclusion for combat duty, and any other pay, 
                allowance, or monetary benefit to which such 
                member was entitled during such period.
                    (B) A statement of any disbursements made 
                to correct underpayments made to the member, as 
                identified under subparagraph (A).
                    (C) A statement of any debts to the United 
                States collected or pending collection from the 
                member.
                    (D) A statement of any reimbursements or 
                debt relief granted to the member for a debt 
                identified under subparagraph (C).
                    (E) If the members has applied to the 
                United States for a relief of debt--
                            (i) a description of the nature of 
                        the debt for which relief was applied; 
                        and
                            (ii) a description of the 
                        disposition of the application, 
                        including--
                                    (I) if relief was granted, 
                                the date of disbursement of 
                                relief; and
                                    (II) if relief was denied, 
                                the reasons for the denial of 
                                relief.
                    (F) A report of any referral of the member 
                to a collection or credit agency.
            (4) Form of report.--The report shall be submitted 
        in unclassified form, but may include a classified 
        annex.

SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT INCENTIVE 
                    PAY.

    Not later than 60 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to Congress a 
report--
            (1) specifying the number of members of the Army 
        National Guard and the Army Reserve adversely affected 
        by the disparate treatment afforded to members who 
        previously served under a call or order to active duty 
        under section 12304 of title 10, United States Code, in 
        determining eligibility for assignment incentive pay; 
        and
            (2) containing proposed remedies or courses of 
        action to correct this disparity, including allowing 
        time served during a call or order to active duty under 
        such section 12304 to count toward the time needed to 
        qualify for assignment incentive pay.

SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD WAR II 
                    VETERANS WHO SURVIVED BATAAN DEATH MARCH.

    (a) Call for Appropriate Compensation.--It is the sense of 
Congress that--
            (1) there should be paid to each living Bataan 
        Death March survivor an appropriate amount of 
        compensation in recognition of their captivity during 
        World War II; and
            (2) in the case of a Bataan Death March survivor 
        who is deceased, but who has an unremarried surviving 
        spouse, such compensation should be paid to that 
        surviving spouse.
    (b) Bataan Death March Survivor.--In this section, the term 
``Bataan Death March survivor'' means an individual who as a 
member of the Armed Forces during World War II was captured on 
the peninsula of Bataan or island of Corregidor in the 
territory of the Philippines by Japanese forces and 
participated in and survived the Bataan Death March.

                   TITLE VII--HEALTH CARE PROVISIONS

                Subtitle A--TRICARE Program Improvements

Sec. 701. TRICARE coverage for forensic examination following sexual 
          assault or domestic violence.
Sec. 702. Authorization of anesthesia and other costs for dental care 
          for children and certain other patients.
Sec. 703. Improvements to descriptions of cancer screening for women.
Sec. 704. Prohibition on increases in certain health care costs for 
          members of the uniformed services.
Sec. 705. Demonstration project on coverage of selected over-the-counter 
          drugs under the pharmacy benefits program.
Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE 
          program.
Sec. 707. Relationship between the TRICARE program and employer-
          sponsored group health care plans.
Sec. 708. Temporary prohibition on increase in copayments under retail 
          pharmacy system of pharmacy benefits program.

                     Subtitle B--Studies and Reports

Sec. 711. Department of Defense task force on the future of military 
          health care.
Sec. 712. Study relating to chiropractic health care services.
Sec. 713. Comptroller General audits of Department of Defense health 
          care costs and cost-saving measures.
Sec. 714. Transfer of custody of the Air Force Health Study assets to 
          Medical Follow-up Agency.
Sec. 715. Study on allowing dependents of activated members of reserve 
          components to retain civilian health care coverage.
Sec. 716. Study of health effects of exposure to depleted uranium.
Sec. 717. Report and plan on services to military dependent children 
          with autism.
Sec. 718. Comptroller General study on Department of Defense pharmacy 
          benefits program.
Sec. 719. Review of Department of Defense medical quality improvement 
          program.
Sec. 720. Report on distribution of hemostatic agents for use in the 
          field.
Sec. 721. Longitudinal study on traumatic brain injury incurred by 
          members of the Armed Forces in Operation Iraqi Freedom and 
          Operation Enduring Freedom.

            Subtitle C--Planning, Programming, and Management

Sec. 731. Standardization of claims processing under TRICARE program and 
          Medicare program.
Sec. 732. Requirements for support of military treatment facilities by 
          civilian contractors under TRICARE.
Sec. 733. Standards and tracking of access to health care services for 
          wounded, injured, or ill servicemembers returning to the 
          United States from a combat zone.
Sec. 734. Disease and chronic care management.
Sec. 735. Additional elements of assessment of Department of Defense 
          task force on mental health relating to mental health of 
          members who were deployed in Operation Iraqi Freedom and 
          Operation Enduring Freedom.
Sec. 736. Additional authorized option periods for extension of current 
          contracts under TRICARE.
Sec. 737. Military vaccination matters.
Sec. 738. Enhanced mental health screening and services for members of 
          the Armed Forces.

                        Subtitle D--Other Matters

Sec. 741. Pilot projects on early diagnosis and treatment of post 
          traumatic stress disorder and other mental health conditions.
Sec. 742. Requirement to certify and report on conversion of military 
          medical and dental positions to civilian medical and dental 
          positions.
Sec. 743. Three-year extension of joint incentives program on sharing of 
          health care resources by the Department of Defense and 
          Department of Veterans Affairs.
Sec. 744. Training curricula for family caregivers on care and 
          assistance for members and former members of the Armed Forces 
          with traumatic brain injury.
Sec. 745. Recognition of Representative Lane Evans upon his retirement 
          from the House of Representatives.

                Subtitle A--TRICARE Program Improvements

SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOLLOWING SEXUAL 
                    ASSAULT OR DOMESTIC VIOLENCE.

    Section 1079(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(17) Forensic examinations following a sexual 
        assault or domestic violence may be provided.''.

SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR DENTAL CARE 
                    FOR CHILDREN AND CERTAIN OTHER PATIENTS.

    Paragraph (1) of section 1079(a) of title 10, United States 
Code, is amended to read as follows:
            ``(1) With respect to dental care--
                    ``(A) except as provided in subparagraph 
                (B), only that care required as a necessary 
                adjunct to medical or surgical treatment may be 
                provided; and
                    ``(B) in connection with dental treatment 
                for patients with developmental, mental, or 
                physical disabilities or for pediatric patients 
                age 5 or under, only institutional and 
                anesthesia services may be provided.''.

SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING FOR WOMEN.

    (a) Terms Related to Primary and Preventive Health Care 
Services for Women.--Section 1074d of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following new sentence: ``The services described in 
        paragraphs (1) and (2) of subsection (b) shall be 
        provided under such procedures and at such intervals as 
        the Secretary of Defense shall prescribe.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking 
                ``Papanicolaou tests (pap smear)'' and 
                inserting ``Cervical cancer screening''; and
                    (B) in paragraph (2), by striking ``Breast 
                examinations and mammography'' and inserting 
                ``Breast cancer screening''.
    (b) Terms Related to Contracts for Medical Care for Spouses 
and Children.--Section 1079(a)(2) of such title is amended--
            (1) in the matter preceding subparagraph (A), by 
        striking ``the schedule of pap smears and mammograms'' 
        and inserting ``the schedule and method of cervical 
        cancer screenings and breast cancer screenings''; and
            (2) in subparagraph (B), by striking ``pap smears 
        and mammograms'' and inserting ``cervical and breast 
        cancer screenings''.

SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS FOR 
                    MEMBERS OF THE UNIFORMED SERVICES.

    (a) Prohibition on Increase in Charges Under Contracts for 
Medical Care.--Section 1097(e) of title 10, United States Code, 
is amended by adding at the end the following: ``A premium, 
deductible, copayment, or other charge prescribed by the 
Secretary under this subsection may not be increased during the 
period beginning on April 1, 2006, and ending on September 30, 
2007.''.
    (b) Prohibition on Increase in Charges for Inpatient 
Care.--Section 1086(b)(3) of title 10, United States Code, is 
amended by inserting after ``charges for inpatient care'' the 
following: ``, except that in no case may the charges for 
inpatient care for a patient exceed $535 per day during the 
period beginning on April 1, 2006, and ending on September 30, 
2007.''.
    (c) Prohibition on Increase in Premiums Under TRICARE 
Coverage for Certain Members in the Selected Reserve.--Section 
1076d(d)(3) of title 10, United States Code, is amended by 
adding at the end the following: ``During the period beginning 
on April 1, 2006, and ending on September 30, 2007, the monthly 
amount of the premium may not be increased above the amount in 
effect for the month of March 2006.''.
    (d) Prohibition on Increase in Premiums Under TRICARE 
Coverage for Members of the Ready Reserve.--Section 1076b(e)(3) 
of title 10, United States Code, is amended by adding at the 
end the following: ``During the period beginning on April 1, 
2006, and ending on September 30, 2007, the monthly amount of a 
premium under paragraph (2) may not be increased above the 
amount in effect for the first month health care is provided 
under this section as amended by Public Law 109-163.''.

SEC. 705. DEMONSTRATION PROJECT ON COVERAGE OF SELECTED OVER-THE-
                    COUNTER DRUGS UNDER THE PHARMACY BENEFITS PROGRAM.

    (a) Requirement To Conduct Demonstration.--The Secretary of 
Defense shall conduct a demonstration project under section 
1092 of title 10, United States Code, to allow particular over-
the-counter drugs to be included on the uniform formulary under 
section 1074g of such title.
    (b) Elements of Demonstration Project.--
            (1) Inclusion of certain over-the-counter drugs.--
        (A) As part of the demonstration project, the Secretary 
        shall modify uniform formulary specifications under 
        section 1074g(a) of such title to include an over-the-
        counter drug (referred to in this section as an ``OTC 
        drug'') on the uniform formulary if the Pharmacy and 
        Therapeutics Committee finds that the OTC drug is cost-
        effective and therapeutically equivalent to a 
        prescription drug. If the Pharmacy and Therapeutics 
        Committee makes such a finding, the OTC drug shall be 
        considered to be in the same therapeutic class of 
        pharmaceutical agents as the prescription drug.
            (B) An OTC drug shall be made available to a 
        beneficiary through the demonstration project, but only 
        if--
                    (i) the beneficiary has a prescription for 
                a drug requiring a prescription; and
                    (ii) pursuant to subparagraph (A), the OTC 
                drug--
                            (I) is on the uniform formulary; 
                        and
                            (II) has been determined to be 
                        therapeutically equivalent to the 
                        prescription drug.
            (2) Conduct through military facilities, retail 
        pharmacies, or mail order program.--The Secretary shall 
        conduct the demonstration project through at least two 
        of the means described in subparagraph (E) of section 
        1074g(a)(2)(E) of such title through which OTC drugs 
        are provided and may conduct the demonstration project 
        throughout the entire pharmacy benefits program or at a 
        limited number of sites. If the project is conducted at 
        a limited number of sites, the number of sites shall be 
        not less than five in each TRICARE region for each of 
        the two means described in such subparagraph.
            (3) Period of demonstration.--The Secretary shall 
        provide for conducting the demonstration project for a 
        period of time necessary to evaluate the feasibility 
        and cost effectiveness of the demonstration. Such 
        period shall be at least as long as the period covered 
        by pharmacy contracts in existence on the date of the 
        enactment of this Act (including any extensions of the 
        contracts), or five years, whichever is shorter.
            (4) Implementation deadline.--Implementation of the 
        demonstration project shall begin not later than May 1, 
        2007.
    (c) Evaluation of Demonstration Project.--The Secretary 
shall evaluate the demonstration project for the following:
            (1) The costs and benefits of providing OTC drugs 
        under the pharmacy benefits program in each of the 
        means chosen by the Secretary to conduct the 
        demonstration project.
            (2) The clinical effectiveness of providing OTC 
        drugs under the pharmacy benefits program.
            (3) Customer satisfaction with the demonstration 
        project.
    (d) Report.--Not later than two years after implementation 
of the demonstration project begins, the Secretary shall submit 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on the demonstration project. The 
report shall contain--
            (1) the evaluation required by subsection (c);
            (2) recommendations for improving the provision of 
        OTC drugs under the pharmacy benefits program; and
            (3) recommendations on whether permanent authority 
        should be provided to cover OTC drugs under the 
        pharmacy benefits program.
    (e) Continuation of Demonstration Project.--If the 
Secretary recommends in the report under subsection (d) that 
permanent authority should be provided, the Secretary may 
continue the demonstration project for up to one year after 
submitting the report.
    (f) Definitions.--In this section:
            (1) The term ``drug'' means a drug, including a 
        biological product, within the meaning of section 
        1074g(f)(2) of title 10, United States Code.
            (2) The term ``OTC drug'' has the meaning indicated 
        for such term in subsection (b)(1)(A).
            (3) The term ``over-the-counter drug'' means a drug 
        that is not subject to section 503(b) of the Federal 
        Food, Drug, and Cosmetic Act.
            (4) The term ``prescription drug'' means a drug 
        that is subject to section 503(b) of the Federal Food, 
        Drug, and Cosmetic Act.

SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS UNDER 
                    TRICARE PROGRAM.

    (a) General Eligibility.--Subsection (a) of section 1076d 
of title 10, United States Code, is amended--
            (1) by striking ``(a) Eligibility.--A member'' and 
        inserting ``(a) Eligibility.--(1) Except as provided in 
        paragraph (2), a member'';
            (2) by striking ``after the member completes'' and 
        all that follows through ``one or more whole years 
        following such date''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(2) Paragraph (1) does not apply to a member who is 
enrolled, or is eligible to enroll, in a health benefits plan 
under chapter 89 of title 5.''.
    (b) Condition for Termination of Eligibility.--Subsection 
(b) of such section is amended--
            (1) by striking ``(b) Period of Coverage.--(1) 
        TRICARE Standard'' and all that follows through ``(4) 
        Eligibility'' and inserting ``(b) Termination of 
        Eligibility Upon Termination of Service.--
        Eligibility''; and
            (2) by striking paragraph (5).
    (c) Conforming Amendments.--
            (1) Such section is further amended--
                    (A) by striking subsection (e);
                    (B) by redesignating subsection (g) as 
                subsection (e) and transferring such subsection 
                within such section so as to appear following 
                subsection (d); and
                    (C) by striking paragraph (3) of subsection 
                (f).
            (2) The heading for such section is amended to read 
        as follows:

``Sec. 1076d. TRICARE program: TRICARE standard coverage for members of 
                    the Selected Reserve''.

    (d) Repeal of Obsolete Provision.--Effective October 1, 
2007, section 1076b of title 10, United States Code, is 
repealed.
    (e) Clerical Amendments.--Effective October 1, 2007, the 
table of sections at the beginning of chapter 55 of title 10, 
United States Code, is amended--
            (1) by striking the item relating to section 1076b; 
        and
            (2) by striking the item relating to section 1076d 
        and inserting the following:

``1076d. TRICARE program: TRICARE Standard coverage for members of the 
          Selected Reserve.''.

    (f) Savings Provision.--Enrollments in TRICARE Standard 
that are in effect on the day before the date of the enactment 
of this Act under section 1076d of title 10, United States 
Code, as in effect on such day, shall be continued until 
terminated after such day under such section 1076d as amended 
by this section.
    (g) Effective Date.--The Secretary of Defense shall ensure 
that health care under TRICARE Standard is provided under 
section 1076d of title 10, United States Code, as amended by 
this section, beginning not later than October 1, 2007.

SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-
                    SPONSORED GROUP HEALTH CARE PLANS.

    (a) In General.--Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1097b the following 
new section:

``Sec. 1097c. TRICARE program: relationship with employer-sponsored 
                    group health plans

    ``(a) Prohibition on Financial Incentives Not to Enroll in 
a Group Health Plan.--(1) Except as provided in this 
subsection, the provisions of section 1862(b)(3)(C) of the 
Social Security Act shall apply with respect to financial or 
other incentives for a TRICARE-eligible employee not to enroll 
(or to terminate enrollment) under a health plan which would 
(in the case of such enrollment) be a primary plan under 
sections 1079(j)(1) and 1086(g) of this title in the same 
manner as such section 1862(b)(3)(C) applies to financial or 
other incentives for an individual entitled to benefits under 
title XVIII of the Social Security Act not to enroll (or to 
terminate enrollment) under a group health plan or a large 
group health plan which would (in the case of enrollment) be a 
primary plan (as defined in section 1862(b)(2)(A) of such Act).
    ``(2)(A) The Secretary of Defense may by regulation adopt 
such additional exceptions to the prohibition referenced and 
applied under paragraph (1) as the Secretary deems appropriate 
and such paragraph (1) shall be implemented taking into account 
the adoption of such exceptions.
    ``(B) The Secretary of Defense and the Secretary of Health 
and Human Services are authorized to enter into agreements for 
carrying out this subsection. Any such agreement shall provide 
that any expenses incurred by the Secretary of Health and Human 
Services pertaining to carrying out this subsection shall be 
reimbursed by the Secretary of Defense.
    ``(C) Authorities of the Inspector General of the 
Department of Defense shall be available for oversight and 
investigations of responsibilities of employers and other 
entities under this subsection.
    ``(D) Information obtained under section 1095(k) of this 
title may be used in carrying out this subsection in the same 
manner as information obtained under section 1862(b)(5) of the 
Social Security may be used in carrying out section 1862(b) of 
such Act.
    ``(E) Any amounts collected in carrying out paragraph (1) 
shall be handled in accordance with section 1079a of this 
title.
    ``(b) Election of Tricare-Eligible Employees To Participate 
in Group Health Plan.--A TRICARE-eligible employee shall have 
the opportunity to elect to participate in the group health 
plan offered by the employer of the employee and receive 
primary coverage for health care services under the plan in the 
same manner and to the same extent as similarly situated 
employees of such employer who are not TRICARE-eligible 
employees.
    ``(c) Inapplicability to Certain Employers.--The provisions 
of this section do not apply to any employer who has fewer than 
20 employees.
    ``(d) Retention of Eligibility for Coverage Under 
Tricare.--Nothing in this section, including an election made 
by a TRICARE-eligible employee under subsection (b), shall be 
construed to affect, modify, or terminate the eligibility of a 
TRICARE-eligible employee or spouse of such employee for health 
care or dental services under this chapter in accordance with 
the other provisions of this chapter.
    ``(e) Outreach.--The Secretary of Defense shall, in 
coordination with the other administering Secretaries, conduct 
outreach to inform covered beneficiaries who are entitled to 
health care benefits under the TRICARE program of the rights 
and responsibilities of such beneficiaries and employers under 
this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `employer' includes a State or unit 
        of local government.
            ``(2) The term `group health plan' means a group 
        health plan (as that term is defined in section 
        5000(b)(1) of the Internal Revenue Code of 1986 without 
        regard to section 5000(d) of the Internal Revenue Code 
        of 1986).
            ``(3) The term `TRICARE-eligible employee' means a 
        covered beneficiary under section 1086 of this title 
        entitled to health care benefits under the TRICARE 
        program.
    ``(g) Effective Date.--This section shall take effect on 
January 1, 2008.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter 55 of such title is amended by inserting 
after the item relating to section 1097b the following new 
item:

``1097c. TRICARE program: relationship with employer-sponsored group 
          health plans.''.

SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL 
                    PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    (a) Temporary Prohibition.--During the period beginning on 
October 1, 2006, and ending on September 30, 2007, the cost 
sharing requirements established under paragraph (6) of section 
1074g of title 10, United States Code, for pharmaceutical 
agents available through retail pharmacies covered by paragraph 
(2)(E)(ii) of such section may not exceed amounts as follows:
            (1) In the case of generic agents, $3.
            (2) In the case of formulary agents, $9.
            (3) In the case of nonformulary agents, $22.
    (b) Transfer of Funds.--The Secretary of Defense shall 
transfer $186,000,000 from the unobligated balances of the 
National Defense Stockpile Transaction Fund to the Department 
of Defense Medicare-Eligible Retiree Health Care Fund.

                    Subtitle B--Studies and Reports

SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE OF MILITARY 
                    HEALTH CARE.

    (a) Requirement To Establish.--The Secretary of Defense 
shall establish within the Department of Defense a task force 
to examine matters relating to the future of military health 
care.
    (b) Composition.--
            (1) Members.--The task force shall consist of not 
        more than 14 members appointed by the Secretary of 
        Defense from among individuals described in paragraph 
        (2) who have demonstrated expertise in the area of 
        health care programs and costs.
            (2) Range of members.--The individuals appointed to 
        the task force shall include--
                    (A) at least one member of each of the 
                Medical Departments of the Army, Navy, and Air 
                Force;
                    (B) a number of persons from outside the 
                Department of Defense equal to the total number 
                of personnel from within the Department of 
                Defense (whether members of the Armed Forces or 
                civilian personnel) who are appointed to the 
                task force;
                    (C) persons who have experience in--
                            (i) health care actuarial 
                        forecasting;
                            (ii) health care program and budget 
                        development;
                            (iii) health care information 
                        technology;
                            (iv) health care performance 
                        measurement;
                            (v) health care quality improvement 
                        including evidence-based medicine; and
                            (vi) women's health;
                    (D) the senior medical advisor to the 
                Chairman of the Joint Chiefs of Staff;
                    (E) the Director of Defense Procurement and 
                Acquisition Policy in the Office of the Under 
                Secretary of Defense for Acquisition, 
                Technology, and Logistics;
                    (F) at least one member from the Defense 
                Business Board;
                    (G) at least one representative from an 
                organization that advocates on behalf of active 
                duty and retired members of the Armed Forces 
                who has experience in health care; and
                    (H) at least one member from the Institute 
                of Medicine.
            (3) Individuals appointed outside the department of 
        defense.--
                    (A) Individuals appointed to the task force 
                from outside the Department of Defense may 
                include officers or employees of other 
                departments or agencies of the Federal 
                Government, officers or employees of State and 
                local governments, or individuals from the 
                private sector.
                    (B) Individuals appointed to the task force 
                from outside the Department of Defense shall 
                include--
                            (i) an officer or employee of the 
                        Department of Veterans Affairs; and
                            (ii) an officer or employee of the 
                        Department of Health and Human 
                        Services.
            (4) Deadline for appointment.--All appointments of 
        individuals to the task force shall be made not later 
        than 90 days after the date of the enactment of this 
        Act.
            (5) Co-chairs of task force.--There shall be two 
        co-chairs of the task force. One of the co-chairs shall 
        be designated by the Secretary of Defense at the time 
        of appointment from among the Department of Defense 
        personnel appointed to the task force. The other co-
        chair shall be selected from among the members 
        appointed from outside the Department of Defense by 
        members so appointed.
    (c) Assessment and Recommendations on the Future of 
Military Health Care.--
            (1) In general.--Not later than 12 months after the 
        date on which all members of the task force have been 
        appointed, the task force shall submit to the Secretary 
        a report containing an assessment of, and 
        recommendations for, sustaining the military health 
        care services being provided to members of the Armed 
        Forces, retirees, and their families.
            (2) Utilization of other efforts.--In preparing the 
        report, the task force shall take into consideration 
        the findings and recommendations included in the 
        Healthcare for Military Retirees Task Group of the 
        Defense Business Board, previous Government 
        Accountability Office reports, studies and reviews by 
        the Assistant Secretary of Defense for Health Affairs, 
        and any other studies or research conducted by 
        organizations regarding program and organizational 
        improvements to the military health care system.
            (3) Elements.--The assessment and recommendations 
        (including recommendations for legislative or 
        administrative action) shall include measures to 
        address the following:
                    (A) Wellness initiatives and disease 
                management programs of the Department of 
                Defense, including health risk tracking and the 
                use of rewards for wellness.
                    (B) Education programs focused on 
                prevention awareness and patient-initiated 
                health care.
                    (C) The ability to account for the true and 
                accurate cost of health care in the military 
                health system.
                    (D) Alternative health care initiatives to 
                manage patient behavior and costs, including 
                options and costs and benefits of a universal 
                enrollment system for all TRICARE users.
                    (E) The appropriate command and control 
                structure within the Department of Defense and 
                the Armed Forces to manage the military health 
                system.
                    (F) The adequacy of the military health 
                care procurement system, including methods to 
                streamline existing procurement activities.
                    (G) The appropriate mix of military and 
                civilian personnel to meet future readiness and 
                high-quality health care service requirements.
                    (H) The beneficiary and Government cost 
                sharing structure required to sustain military 
                health benefits over the long term.
                    (I) Programs focused on managing the health 
                care needs of Medicare-eligible military 
                beneficiaries.
                    (J) Efficient and cost effective contracts 
                for health care support and staffing services, 
                including performance-based requirements for 
                health care provider reimbursement.
    (d) Administrative Matters.--
            (1) Compensation.--Each member of the task force 
        who is a member of the Armed Forces or a civilian 
        officer or employee of the United States shall serve 
        without compensation (other than compensation to which 
        entitled as a member of the Armed Forces or an officer 
        or employee of the United States, as the case may be). 
        Other members of the task force shall be treated for 
        purposes of section 3161 of title 5, United States 
        Code, as having been appointed under subsection (b) of 
        such section.
            (2) Oversight.--The Under Secretary of Defense for 
        Personnel and Readiness shall oversee the activities of 
        the task force.
            (3) Administrative support.--The Washington 
        Headquarters Services of the Department of Defense 
        shall provide the task force with personnel, 
        facilities, and other administrative support as 
        necessary for the performance of the duties of the task 
        force.
            (4) Access to facilities.--The Under Secretary of 
        Defense for Personnel and Readiness shall, in 
        coordination with the Secretaries of the military 
        departments, ensure appropriate access by the task 
        force to military installations and facilities for 
        purposes of the discharge of the duties of the task 
        force.
    (e) Reports.--
            (1) Interim report.--Not later than May 31, 2007, 
        the task force shall submit to the Secretary of Defense 
        and the Committees on Armed Services of the Senate and 
        the House of Representatives an interim report on the 
        activities of the task force. At a minimum, the report 
        shall include interim findings and recommendations 
        regarding subsection (c)(3)(H), particularly with 
        regard to cost sharing under the pharmacy benefits 
        program.
            (2) Final report.--(A) The task force shall submit 
        to the Secretary of Defense a final report on its 
        activities under this section. The report shall 
        include--
                    (i) a description of the activities of the 
                task force;
                    (ii) the assessment and recommendations 
                required by subsection (c); and
                    (iii) such other matters relating to the 
                activities of the task force that the task 
                force considers appropriate.
            (B) Not later than 90 days after receipt of the 
        report under subparagraph (A), the Secretary shall 
        transmit the report to the Committees on Armed Services 
        of the Senate and the House of Representatives. The 
        Secretary may include in the transmittal such comments 
        on the report as the Secretary considers appropriate
    (f) Termination.--The task force shall terminate 90 days 
after the date on which the final report of the task force is 
transmitted to Congress under subsection (e)(2).

SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE SERVICES.

    (a) Study Required.--
            (1) Groups covered.--The Secretary of Defense shall 
        conduct a study of providing chiropractic health care 
        services and benefits to the following groups:
                    (A) All members of the uniformed services 
                on active duty and entitled to care under 
                section 1074(a) of title 10, United States 
                Code.
                    (B) All members described in subparagraph 
                (A) and their eligible dependents, and all 
                members of the Selected Reserves and their 
                eligible dependents.
                    (C) All members or former members of the 
                uniformed services who are entitled to retired 
                or retainer pay or equivalent pay and their 
                eligible dependents.
            (2) Matters examined.--
                    (A) For each group listed in subparagraphs 
                (A), (B), and (C) of paragraph (1), the study 
                shall examine the following with respect to 
                chiropractic health care services and benefits:
                            (i) The cost of providing such 
                        services and benefits.
                            (ii) The feasibility of providing 
                        such services and benefits.
                            (iii) An assessment of the health 
                        care benefits of providing such 
                        services and benefits.
                            (iv) An estimate of the potential 
                        cost savings of providing such services 
                        and benefits in lieu of other medical 
                        services.
                            (v) The identification of existing 
                        and planned health care infrastructure, 
                        including personnel, equipment, and 
                        facilities, to accommodate the 
                        provision of chiropractic health care 
                        services.
                    (B) For the members of the group listed in 
                subparagraph (A) of paragraph (1), the study 
                shall also examine the effects of providing 
                chiropractic health care services and 
                benefits--
                            (i) on the readiness of such 
                        members; and
                            (ii) on the acceleration of the 
                        return to duty of such members 
                        following an identified injury or other 
                        malady that can be appropriately 
                        treated with chiropractic health care 
                        services.
            (3) Space available costs.--The study shall also 
        include a detailed analysis of the projected costs of 
        providing chiropractic health care services on a space 
        available basis in the military treatment facilities 
        currently providing chiropractic care under section 702 
        of the Floyd D. Spence National Defense Authorization 
        Act of Fiscal Year 2001 (as enacted by Public Law 106-
        398; 10 U.S.C. 1092 note).
            (4) Eligible dependent defined.--In this section, 
        the term ``eligible dependent'' has the meaning given 
        that term in section 1076a(k) of title 10, United 
        States Code.
    (b) Report Required.--Not later than March 31, 2008, the 
Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on the study required under subsection (a) .

SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF DEFENSE HEALTH 
                    CARE COSTS AND COST-SAVING MEASURES.

    (a) General Audit Required.--
            (1) In general.--The Comptroller General of the 
        United States, in cooperation with the Director of the 
        Congressional Budget Office, shall conduct an audit of 
        the Department of Defense initiative to manage future 
        medical benefits available through the Department known 
        as ``Sustain the Benefit''.
            (2) Elements.--The audit required by paragraph (1) 
        shall examine the following:
                    (A) The basis for the calculation by the 
                Department of Defense of the portion of the 
                costs of health care benefits provided by the 
                Department to beneficiaries that were paid by 
                such beneficiaries in each of 1995 and 2005, 
                including--
                            (i) a comparison of the cost to the 
                        Department of providing such benefits 
                        in each of 1995 and 2005;
                            (ii) the explanation for any 
                        increases in the costs of the 
                        Department of providing such benefits 
                        between 1995 and 2005; and
                            (iii) a comparison of the amounts 
                        paid, by category of beneficiaries, for 
                        health care benefits in 1995 with the 
                        amounts paid, by category of 
                        beneficiaries, for such benefits in 
                        2005.
                    (B) The calculations and assumptions 
                utilized by the Department in estimating the 
                savings anticipated through the implementation 
                of proposed increases in cost-sharing for 
                health care benefits beginning in 2007.
                    (C) The average annual rate of increase, 
                based on inflation, of medical costs for the 
                Department under the Defense Health Program.
                    (D) The annual rate of growth in the cost 
                of the Defense Health Program that is 
                attributable to inflation in the cost of 
                medical services over the last five years and 
                how such rate of growth compares with annual 
                rates of increases in health care premiums 
                under the Federal Employee Health Benefit 
                Program and other health care programs as well 
                as rates of growth of other health care cost 
                indices over that time.
                    (E) The assumptions utilized by the 
                Department in estimating savings associated 
                with adjustments in copayments for 
                pharmaceuticals.
                    (F) The costs of the administration of the 
                Defense Health Program and the TRICARE program 
                for all categories of beneficiaries.
    (b) Audit of Tricare Reserve Select Program.--
            (1) In general.--In addition to the audit required 
        by subsection (a), the Comptroller General shall 
        conduct an audit of the costs of the Department of 
        Defense in implementing the TRICARE Reserve Select 
        Program.
            (2) Elements.--The audit required by paragraph (1) 
        shall include an examination of the following:
                    (A) A comparison of the annual premium 
                amounts established by the Department of 
                Defense for the TRICARE Reserve Select Program 
                with the actual costs of the Department in 
                providing benefits under that program in fiscal 
                years 2004 and 2005.
                    (B) The rate of inflation of health care 
                costs of the Department during fiscal years 
                2004 and 2005, and a comparison of that rate of 
                inflation with the annual increase in premiums 
                under the TRICARE Reserve Select Program in 
                January 2006.
                    (C) A comparison of the financial and 
                health-care utilization assumptions utilized by 
                the Department in establishing premiums under 
                the TRICARE Reserve Select Program with actual 
                experiences under that program in the first 
                year of the implementation of that program.
            (3) Tricare reserve select program defined.--In 
        this section, the term ``TRICARE Reserve Select 
        Program'' means the program carried out under section 
        1076d of title 10, United States Code.
    (c) Use of Independent Experts.--Notwithstanding any other 
provision of law, in conducting the audits required by this 
section, the Comptroller General may engage the services of 
appropriate independent experts, including actuaries.
    (d) Report.--Not later than June 1, 2007, the Comptroller 
General shall submit to the congressional defense committees a 
report on the audits conducted under this section. The report 
shall include--
            (1) the findings of the Comptroller General as a 
        result of the audits; and
            (2) such recommendations as the Comptroller General 
        considers appropriate in light of such findings to 
        ensure maximum efficiency in the administration of the 
        health care benefits programs of the Department of 
        Defense.

SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY ASSETS TO 
                    MEDICAL FOLLOW-UP AGENCY.

    (a) Transfer.--
            (1) Notification of participants.--The Secretary of 
        the Air Force shall notify the participants of the Air 
        Force Health Study that the study as currently 
        constituted is ending as of September 30, 2006. In 
        consultation with the Medical Follow-up Agency (in this 
        section referred to as the ``Agency'') of the Institute 
        of Medicine of the National Academy of Sciences, the 
        Secretary of the Air Force shall request the written 
        consent of the participants to transfer their data and 
        biological specimens to the Agency during fiscal year 
        2007 and written consent for the Agency to maintain the 
        data and specimens and make them available for 
        additional studies.
            (2) Completion of transfer.--Custodianship of the 
        Air Force Health Study shall be completely transferred 
        to the Agency on or before September 30, 2007. Assets 
        to be transferred shall include electronic data files 
        and biological specimens of all the study participants.
            (3) Copies to archives.--The Air Force shall send 
        paper copies of all study documents to the National 
        Archives.
    (b) Report on Transfer.--
            (1) Requirement.--Not later than 30 days after 
        completion of the transfer of the assets of the Air 
        Force Health Study under subsection (a), the Secretary 
        of the Air Force shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the transfer.
            (2) Matters covered.--At a minimum, the report 
        shall include information on the number of study 
        participants whose data and biological specimens were 
        not transferred, the efforts that were taken to contact 
        such participants, and the reasons why the transfer of 
        their data and specimens did not occur.
    (c) Disposition of Assets Not Transferred.--The Secretary 
of the Air Force may not destroy any data or biological 
specimens not transferred under subsection (a) until the 
expiration of the one-year period following submission of the 
report under subsection (b).
    (d) Funding.--
            (1) Costs of transfer.--The Secretary of Defense 
        shall make available to the Air Force $850,000 for 
        preparation, transfer of the assets of the Air Force 
        Health Study, and shipment of data and specimens to the 
        Medical Follow-up Agency and the National Archives 
        during fiscal year 2007 from amounts available from the 
        Department of Defense for that fiscal year. The 
        Secretary of Defense is authorized to transfer the 
        freezers and other physical assets assigned to the Air 
        Force Health Study to the Agency without charge.
            (2) Costs of collaboration.--The Secretary of 
        Defense may reimburse the National Academy of Sciences 
        up to $200,000 for costs of the Medical Follow-up 
        Agency to collaborate with the Air Force in the 
        transfer and receipt of the assets of the Air Force 
        Health Study to the Agency during fiscal year 2007 from 
        amounts available from the Department of Defense for 
        that fiscal year.

SEC. 715. STUDY ON ALLOWING DEPENDENTS OF ACTIVATED MEMBERS OF RESERVE 
                    COMPONENTS TO RETAIN CIVILIAN HEALTH CARE COVERAGE.

    (a) Study Requirement.--The Secretary of Defense shall 
conduct a study on the feasibility of allowing family members 
of members of the reserve components of the Armed Forces who 
are called or ordered to active duty in support of a 
contingency operation to continue health care coverage under a 
civilian health care program and provide reimbursement for such 
health care.
    (b) Elements.--The study required by subsection (a) shall 
include the following:
            (1) An assessment of the number of military 
        dependents with special health care needs (such as 
        ongoing chemotherapy or physical therapy) who would 
        benefit from continued coverage under the member's 
        civilian health care plan instead of enrolling in the 
        TRICARE program.
            (2) An assessment of the feasibility of providing 
        reimbursement to the member or the sponsor of the 
        civilian health coverage.
            (3) A recommendation on the appropriate rate of 
        reimbursement for members or sponsors of civilian 
        health coverage.
            (4) The feasibility of including dependents who do 
        not have access to health care providers that accept 
        payment under the TRICARE program.
    (c) Report Required.--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 the House of Representatives a report on the study required 
under subsection (a).

SEC. 716. STUDY OF HEALTH EFFECTS OF EXPOSURE TO DEPLETED URANIUM.

    (a) Study.--The Secretary of Defense, in consultation with 
the Secretary for Veterans Affairs and the Secretary of Health 
and Human Services, shall conduct a comprehensive study of the 
health effects of exposure to depleted uranium munitions on 
uranium-exposed soldiers and on children of uranium-exposed 
soldiers who were born after the exposure of the uranium-
exposed soldiers to depleted uranium.
    (b) Uranium-Exposed Soldiers.--In this section, the term 
``uranium-exposed soldiers'' means a member or former member of 
the Armed Forces who handled, came in contact with, or had the 
likelihood of contact with depleted uranium munitions while on 
active duty, including members and former members who--
            (1) were exposed to smoke from fires resulting from 
        the burning of vehicles containing depleted uranium 
        munitions or fires at depots at which depleted uranium 
        munitions were stored;
            (2) worked within environments containing depleted 
        uranium dust or residues from depleted uranium 
        munitions;
            (3) were within a structure or vehicle while it was 
        struck by a depleted uranium munition;
            (4) climbed on or entered equipment or structures 
        struck by a depleted uranium munition; or
            (5) were medical personnel who provided initial 
        treatment to members of the Armed Forces described in 
        paragraph (1), (2), (3), or (4).
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the results of the study described in 
subsection (a).

SEC. 717. REPORT AND PLAN ON SERVICES TO MILITARY DEPENDENT CHILDREN 
                    WITH AUTISM.

    (a) Plan Required.--The Secretary of Defense shall, within 
180 days after the date of the enactment of this Act, develop a 
plan to provide services to military dependent children with 
autism pursuant to the authority for an extended health care 
services program in subsections (d) and (e) of section 1079 of 
title 10, United States Code. Such plan shall include--
            (1) requirements for the education, training, and 
        supervision of individuals providing services for 
        military dependent children with autism;
            (2) standards for identifying and measuring the 
        availability, distribution, and training of individuals 
        of various levels of expertise to provide such 
        services; and
            (3) procedures to ensure that such services are in 
        addition to other publicly provided services to such 
        children.
    (b) Participation of Affected Families.--In developing the 
plan required under subsection (a), the Secretary shall ensure 
the involvement and participation of affected military families 
or their representatives.
    (c) Report Required.--Not later than 30 days after 
completion of the plan required under subsection (a), the 
Secretary shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the 
plan. The report may include any additional information the 
Secretary considers relevant.

SEC. 718. COMPTROLLER GENERAL STUDY ON DEPARTMENT OF DEFENSE PHARMACY 
                    BENEFITS PROGRAM.

    (a) In General.--The Comptroller General of the United 
States shall conduct a study of the Department of Defense 
pharmacy benefits program required by section 1074g of title 
10, United States Code.
    (b) Elements.--The study required by subsection (a) shall 
include an examination of the following:
            (1) The cost of the Department of Defense pharmacy 
        benefits program since the inception of the program.
            (2) The relative costs of various options under the 
        program.
            (3) The copayment structure under the program.
            (4) The effectiveness of the rebate system under 
        the program as a way of passing on discounts received 
        by the Federal Government in the purchase of 
        pharmaceutical agents.
            (5) The uniform formulary under the program, 
        including the success of the formulary in achieving 
        savings anticipated through use of the formulary.
            (6) Various alternative means of purchasing 
        pharmaceutical agents more efficiently for availability 
        under the program.
            (7) The composition and decision-making processes 
        of the Pharmacy and Therapeutics Committee.
            (8) The composition of the Beneficiary Advisory 
        Panel and its history as an advisory panel under the 
        program (including the frequency of the acceptance of 
        its recommendations by the Secretary of Defense).
            (9) Quality assurance mechanisms under the program.
            (10) The role of the program in support of the 
        disease and chronic care management programs of the 
        Department of Defense.
            (11) Mechanisms for customer service and customer 
        feedback under the program.
            (12) Beneficiary satisfaction with the program.
    (c) Report.--Not later than nine months after the date of 
the enactment of this Act, the Comptroller General shall submit 
to the congressional defense committees a report on the study 
required by subsection (a). The report shall include such 
recommendations as the Comptroller General considers 
appropriate for legislative or administrative action to improve 
the Department of Defense pharmacy benefits program in light of 
the study.

SEC. 719. REVIEW OF DEPARTMENT OF DEFENSE MEDICAL QUALITY IMPROVEMENT 
                    PROGRAM.

    (a) Report Required.--
            (1) In general.--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 the House of Representatives 
        a report on actions taken in response to the 
        recommendations of the July 2001 report of the 
        Department of Defense Healthcare Quality Initiatives 
        Review Panel.
            (2) Matters covered.--The report shall address the 
        status of actions concerning each of the Panel's 
        general and specific recommendations, including the 
        amount of resources allocated by fiscal year to 
        implement each recommendation. In any instance in which 
        no action has been taken, justification for such 
        inaction shall be provided in the report.
    (b) Review Required.--
            (1) In general.--The Secretary of Defense shall 
        enter into a contract with the Institute of Medicine of 
        the National Academy of Sciences, or another similarly 
        qualified independent academic medical organization, 
        for the purpose of conducting an independent review of 
        the Department of Defense medical quality improvement 
        program.
            (2) Elements.--The review required pursuant to 
        paragraph (1) shall include the following:
                    (A) An assessment of the methods used by 
                the Department of Defense to monitor medical 
                quality in services provided in military 
                hospitals and clinics and in services provided 
                in civilian hospitals and providers under the 
                military health care system.
                    (B) An assessment of the transparency and 
                public reporting mechanisms of the Department 
                on medical quality.
                    (C) An assessment of how the Department 
                incorporates medical quality into performance 
                measures for military and civilian health care 
                providers within the military health care 
                system.
                    (D) An assessment of the patient safety 
                programs of the Department.
                    (E) A description of the extent to which 
                the Department seeks to address particular 
                medical errors, and an assessment of the 
                adequacy of such efforts.
                    (F) An assessment of accountability within 
                the military health care system for preventable 
                negative outcomes involving negligence.
                    (G) An assessment of the performance of the 
                health care safety and quality measures of the 
                Department.
                    (H) An assessment of the collaboration of 
                the Department with national initiatives to 
                develop evidence-based quality measures and 
                intervention strategies, especially the 
                initiatives of the Agency for Health Care 
                Research and Quality within the Department of 
                Health and Human Services.
                    (I) A comparison of the methods, 
                mechanisms, and programs and activities 
                referred to in subparagraphs (A) through (G) 
                with similar methods, mechanisms, programs, and 
                activities used in other public and private 
                health care systems and organizations.
            (3) Report.--
                    (A) In general.--Not later than one year 
                after the date of the enactment of this Act, 
                the Secretary shall submit to the Committees on 
                Armed Services of the Senate and the House of 
                Representatives a report on the review required 
                pursuant to paragraph (1).
                    (B) Elements.--The report required by 
                subparagraph (A) shall include the following:
                            (i) The results of the review 
                        required pursuant to paragraph (1).
                            (ii) A discussion of recent 
                        highlights in the accomplishments of 
                        the Department of Defense medical 
                        quality assurance program.
                            (iii) Such recommendations for 
                        legislative or administrative action as 
                        the Secretary considers appropriate for 
                        the improvement of the program.

SEC. 720. REPORT ON DISTRIBUTION OF HEMOSTATIC AGENTS FOR USE IN THE 
                    FIELD.

    Not later than 60 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the distribution 
of hemostatic agents to members of the Armed Forces serving in 
Iraq and Afghanistan, including a description of any 
distribution problems and attempts to resolve such problems.

SEC. 721. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY INCURRED BY 
                    MEMBERS OF THE ARMED FORCES IN OPERATION IRAQI 
                    FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Study Required.--The Secretary of Defense shall conduct 
a longitudinal study on the effects of traumatic brain injury 
incurred by members of the Armed Forces serving in Operation 
Iraqi Freedom or Operation Enduring Freedom on the members who 
incur such an injury and their families.
    (b) Duration.--The study required by subsection (a) shall 
be conducted for a period of 15 years.
    (c) Elements.--The study required by subsection (a) shall 
specifically address the following:
            (1) The long-term physical and mental health 
        effects of traumatic brain injuries incurred by members 
        of the Armed Forces during service in Operation Iraqi 
        Freedom or Operation Enduring Freedom.
            (2) The health care, mental health care, and 
        rehabilitation needs of such members for such injuries 
        after the completion of inpatient treatment through the 
        Department of Defense, the Department of Veterans 
        Affairs, or both.
            (3) The type and availability of long-term care 
        rehabilitation programs and services within and outside 
        the Department of Defense and the Department of 
        Veterans Affairs for such members for such injuries, 
        including community-based programs and services and in-
        home programs and services.
            (4) The effect on family members of a member 
        incurring such an injury.
    (d) Consultation.--The Secretary of Defense shall conduct 
the study required by subsection (a) and prepare the reports 
required by subsection (e) in consultation with the Secretary 
of Veterans Affairs.
    (e) Periodic and Final Reports.--After the third, seventh, 
eleventh, and fifteenth years of the study required by 
subsection (a), the Secretary of Defense shall submit to 
Congress a comprehensive report on the results of the study 
during the preceding years. Each report shall include the 
following:
            (1) Current information on the cumulative outcomes 
        of the study.
            (2) Such recommendations as the Secretary of 
        Defense and the Secretary of Veterans Affairs jointly 
        consider appropriate based on the outcomes of the 
        study, including recommendations for legislative, 
        programmatic, or administrative action to improve long-
        term care and rehabilitation programs and services for 
        members of the Armed Forces with traumatic brain 
        injuries.

           Subtitle C--Planning, Programming, and Management

SEC. 731. STANDARDIZATION OF CLAIMS PROCESSING UNDER TRICARE PROGRAM 
                    AND MEDICARE PROGRAM.

    (a) In General.--Effective beginning with the next contract 
option period for managed care support contracts under the 
TRICARE program, the claims processing requirements under the 
TRICARE program on the matters described in subsection (b) 
shall be identical to the claims processing requirements under 
the Medicare program on such matters.
    (b) Covered Matters.--The matters described in this 
subsection are as follows:
            (1) The utilization of single or multiple provider 
        identification numbers for purposes of the payment of 
        health care claims by Department of Defense 
        contractors.
            (2) The documentation required to substantiate 
        medical necessity for items and services that are 
        covered under both the TRICARE program and the Medicare 
        program.
    (c) Report on Collection of Amounts Owed.--Not later than 
March 1, 2007, the Secretary of Defense shall submit to the 
congressional defense committees a report setting forth a 
detailed description of the following:
            (1) All TRICARE policies and directives concerning 
        collection of amounts owed to the United States 
        pursuant to section 1095 of title 10, United States 
        Code, from third party payers, including--
                    (A) collection by military treatment 
                facilities from third-party payers; and
                    (B) collection by contractors providing 
                managed care support under the TRICARE program 
                from other insurers in cases of private 
                insurance liability for health care costs of a 
                TRICARE beneficiary.
            (2) An estimate of the outstanding amounts owed 
        from third party payers in each of fiscal years 2002, 
        2003, and 2004.
            (3) The amounts collected from third party payers 
        in each of fiscal years 2002, 2003, and 2004.
            (4) A plan of action to streamline the business 
        practices that underlie the policies and directives 
        described in paragraph (1).
            (5) A plan of action to accelerate and increase the 
        collections or recoupments of amounts owed from third 
        party payers.
    (d) Annual Reports on Claims Processing Standardization.--
            (1) In general.--Not later than October 1, 2007, 
        and annually thereafter, the Secretary of Defense shall 
        submit to the congressional defense committees a report 
        setting forth a complete list of the claims processing 
        requirements under the TRICARE program that differ from 
        claims processing requirements under the Medicare 
        program.
            (2) Elements.--Each report under paragraph (1) 
        shall include, for each claims processing requirement 
        listed in such report, a business case that justifies 
        maintaining such requirement under the TRICARE program 
        as a different claims processing requirement than that 
        required under the Medicare program.
    (e) Definitions.--In this section:
            (1) The term ``Medicare program'' means the program 
        under title XVIII of the Social Security Act (42 U.S.C. 
        1395 et seq.).
            (2) The term ``TRICARE program'' has the meaning 
        given that term in section 1072(7) of title 10, United 
        States Code.

SEC. 732. REQUIREMENTS FOR SUPPORT OF MILITARY TREATMENT FACILITIES BY 
                    CIVILIAN CONTRACTORS UNDER TRICARE.

    (a) Annual Integrated Regional Requirements on Support.--
The Regional Director of each region under the TRICARE program 
shall develop each year integrated, comprehensive requirements 
for the support of military treatment facilities in such region 
that is provided by contract civilian health care and 
administrative personnel under the TRICARE program.
    (b) Purposes.--The purposes of the requirements established 
under subsection (a) shall be as follows:
            (1) To ensure consistent standards of quality in 
        the support of military treatment facilities by 
        contract civilian health care personnel under the 
        TRICARE program.
            (2) To identify targeted, actionable opportunities 
        throughout each region of the TRICARE program for the 
        most efficient and cost effective delivery of health 
        care and support of military treatment facilities.
            (3) To ensure the most effective use of various 
        available contracting methods in securing support of 
        military treatment facilities by civilian health care 
        personnel under the TRICARE program, including 
        resource-sharing and clinical support agreements, 
        direct contracting, and venture capital investments.
    (c) Facilitation and Enhancement of Contractor Support.--
            (1) In general.--The Secretary of Defense shall 
        take appropriate actions to facilitate and enhance the 
        support of military treatment facilities under the 
        TRICARE program in order to assure maximum quality and 
        productivity.
            (2) Actions.--In taking actions under paragraph 
        (1), the Secretary shall--
                    (A) require consistent standards of quality 
                for contract civilian health care personnel 
                providing support of military treatment 
                facilities under the TRICARE program, 
                including--
                            (i) consistent credentialing 
                        requirements among military treatment 
                        facilities;
                            (ii) consistent performance 
                        standards for private sector companies 
                        providing health care staffing services 
                        to military treatment facilities and 
                        clinics, including, at a minimum, those 
                        standards established for accreditation 
                        of health care staffing firms by the 
                        Joint Commission on the Accreditation 
                        of Health Care Organizations Health 
                        Care Staffing Standards; and
                            (iii) additional standards 
                        covering--
                                    (I) financial stability;
                                    (II) medical management;
                                    (III) continuity of 
                                operations;
                                    (IV) training;
                                    (V) employee retention;
                                    (VI) access to contractor 
                                data; and
                                    (VII) fraud prevention;
                    (B) ensure the availability of adequate and 
                sustainable funding support for projects which 
                produce a return on investment to the military 
                treatment facilities;
                    (C) ensure that a portion of any return on 
                investment is returned to the military 
                treatment facility to which such savings are 
                attributable;
                    (D) remove financial disincentives for 
                military treatment facilities and civilian 
                contractors to initiate and sustain agreements 
                for the support of military treatment 
                facilities by such contractors under the 
                TRICARE program;
                    (E) provide for a consistent methodology 
                across all regions of the TRICARE program for 
                developing cost benefit analyses of agreements 
                for the support of military treatment 
                facilities by civilian contractors under the 
                TRICARE program based on actual cost and 
                utilization data within each region of the 
                TRICARE program; and
                    (F) provide for a system for monitoring the 
                performance of significant projects for support 
                of military treatment facilities by a civilian 
                contractor under the TRICARE program.
    (d) Reports to Congress.--
            (1) Annual reports required.--Not later than 
        February 1, 2008, and each year thereafter, the 
        Secretary, in coordination with the military 
        departments, shall submit to the Committees on Armed 
        Services of the Senate and the House of Representatives 
        a report on the support of military treatment 
        facilities by civilian contractors under the TRICARE 
        program during the preceding fiscal year.
            (2) Elements.--Each report shall set forth, for the 
        fiscal year covered by such report, the following:
                    (A) The level of support of military health 
                treatment facilities that is provided by 
                contract civilian health care personnel under 
                the TRICARE program in each region of the 
                TRICARE program.
                    (B) An assessment of the compliance of such 
                support with regional requirements under 
                subsection (a).
                    (C) The number and type of agreements for 
                the support of military treatment facilities by 
                contract civilian health care personnel.
                    (D) The standards of quality in effect 
                under the requirements under subsection (a).
                    (E) The savings anticipated, and any 
                savings achieved, as a result of the 
                implementation of the requirements under 
                subsection (a).
                    (F) An assessment of the compliance of 
                contracts for health care staffing services for 
                Department of Defense facilities with the 
                requirements of subsection (c)(2)(A).
    (e) Effective Date.--This section shall take effect on 
October 1, 2006.

SEC. 733. STANDARDS AND TRACKING OF ACCESS TO HEALTH CARE SERVICES FOR 
                    WOUNDED, INJURED, OR ILL SERVICEMEMBERS RETURNING 
                    TO THE UNITED STATES FROM A COMBAT ZONE.

    (a) Report on Uniform Standards for Access.--Not later than 
90 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 the House of Representatives a 
report on uniform standards for the access of wounded, injured, 
or ill members of the Armed Forces to health care services in 
the United States following return from a combat zone.
    (b) Matters Covered.--The report required by subsection (a) 
shall describe in detail policies with respect to the 
following:
            (1) The access of wounded, injured, or ill members 
        of the Armed Forces to emergency care.
            (2) The access of such members to surgical 
        services.
            (3) Waiting times for referrals and consultations 
        of such members by medical personnel, dental personnel, 
        mental health specialists, and rehabilitative service 
        specialists, including personnel and specialists with 
        expertise in prosthetics and in the treatment of head, 
        vision, and spinal cord injuries.
            (4) Waiting times of such members for acute care 
        and for routine follow-up care.
    (c) Referral to Providers Outside Military Health Care 
System.--The Secretary shall require that health care services 
and rehabilitation needs of members described in subsection (a) 
be met through whatever means or mechanisms possible, including 
through the referral of members described in that subsection to 
health care providers outside the military health care system.
    (d) Uniform System for Tracking of Performance.--The 
Secretary shall establish a uniform system for tracking the 
performance of the military health care system in meeting the 
requirements for access of wounded, injured, or ill members of 
the Armed Forces to health care services described in 
subsection (a).
    (e) Reports.--
            (1) Tracking system.--Not later than 180 days after 
        the date of the enactment of this Act, the Secretary 
        shall submit to the Committees on Armed Services of the 
        Senate and the House of Representatives a report on the 
        system established under subsection (d).
            (2) Access.--Not later than October 1, 2006, and 
        each quarter thereafter during fiscal year 2007, the 
        Secretary shall submit to such committees a report on 
        the performance of the health care system in meeting 
        the access standards described in the report required 
        by subsection (a).

SEC. 734. DISEASE AND CHRONIC CARE MANAGEMENT.

    (a) Program Design and Development Required.--Not later 
than October 1, 2007, the Secretary of Defense shall design and 
develop a fully integrated program on disease and chronic care 
management for the military health care system that provides, 
to the extent practicable, uniform policies and practices on 
disease management and chronic care management throughout that 
system, including both military hospitals and clinics and 
civilian healthcare providers within the TRICARE network.
    (b) Purposes of Program.--The purposes of the program 
required by subsection (a) are as follows:
            (1) To facilitate the improvement of the health 
        status of individuals under care in the military health 
        care system.
            (2) To ensure the availability of effective health 
        care services in that system for individuals with 
        diseases and other chronic conditions.
            (3) To ensure the proper allocation of health care 
        resources for individuals who need care for disease or 
        other chronic conditions.
    (c) Elements of Program Design.--The program design 
required by subsection (a) shall meet the following 
requirements:
            (1) Based on uniform policies prescribed by the 
        Secretary, the program shall, at a minimum, address the 
        following chronic diseases and conditions:
                    (A) Diabetes.
                    (B) Cancer.
                    (C) Heart disease.
                    (D) Asthma.
                    (E) Chronic obstructive pulmonary disorder.
                    (F) Depression and anxiety disorders.
            (2) The program shall meet nationally recognized 
        accreditation standards for disease and chronic care 
        management.
            (3) The program shall include specific outcome 
        measures and objectives on disease and chronic care 
        management.
            (4) The program shall include strategies for 
        disease and chronic care management for all 
        beneficiaries, including beneficiaries eligible for 
        benefits under the Medicare program under title XVIII 
        of the Social Security Act (42 U.S.C. 1395 et seq.), 
        for whom the TRICARE program is not the primary payer 
        for health care benefits.
            (5) Activities under the program shall conform to 
        applicable laws and regulations relating to the 
        confidentiality of health care information.
    (d) Implementation Plan Required.--Not later than February 
1, 2008, the Secretary of Defense, in coordination with the 
Secretaries of the military departments, shall develop an 
implementation plan for the disease and chronic care management 
program. In order to facilitate the carrying out of the 
program, the plan developed by the Secretary shall--
            (1) require a comprehensive analysis of the disease 
        and chronic care management opportunities within each 
        region of the TRICARE program, including within 
        military treatment facilities and through contractors 
        under the TRICARE program;
            (2) ensure continuous, adequate funding of disease 
        and chronic care management activities throughout the 
        military health care system in order to achieve maximum 
        health outcomes and cost avoidance;
            (3) eliminate, to the extent practicable, any 
        financial disincentives to sustained investment by 
        military hospitals and health care services contractors 
        of the Department of Defense in the disease and chronic 
        care management activities of the Department;
            (4) ensure that appropriate clinical and claims 
        data, including pharmacy utilization data, is available 
        for use in implementing the program;
            (5) ensure outreach to eligible beneficiaries who, 
        on the basis of their clinical conditions, are 
        candidates for the program utilizing print and 
        electronic media, telephone, and personal interaction; 
        and
            (6) provide a system for monitoring improvements in 
        health status and clinical outcomes under the program 
        and savings associated with the program.
    (e) Report.--
            (1) In general.--Not later than March 1, 2008, the 
        Secretary of Defense shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the design, development, 
        and implementation of the program on disease and 
        chronic care management required by this section.
            (2) Report elements.--The report required by 
        paragraph (1) shall include the following:
                    (A) A description of the design and 
                development of the program required by 
                subsection (a).
                    (B) A description of the implementation 
                plan required by subsection (d).
                    (C) A description and assessment of 
                improvements in health status and clinical 
                outcomes that are anticipated as a result of 
                implementation of the program.
                    (D) A description of the savings and return 
                on investment associated with the program.
                    (E) A description of an investment strategy 
                to assure the sustainment of the disease and 
                chronic care management programs of the 
                Department of Defense.

SEC. 735. ADDITIONAL ELEMENTS OF ASSESSMENT OF DEPARTMENT OF DEFENSE 
                    TASK FORCE ON MENTAL HEALTH RELATING TO MENTAL 
                    HEALTH OF MEMBERS WHO WERE DEPLOYED IN OPERATION 
                    IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    Section 723(c) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3348) is 
amended by adding at the end the following new paragraph:
            ``(4) Mental health needs of members who were 
        deployed in oif or oef.--As part of the assessment 
        required by paragraph (1) of the efficacy of mental 
        health services provided to members of the Armed Forces 
        by the Department of Defense, the task force shall 
        consider the specific needs with respect to mental 
        health of members who were deployed in Operation Iraqi 
        Freedom or Operation Enduring Freedom upon their return 
        from such deployment, including the following:
                    ``(A) An identification of mental health 
                conditions and disorders (including Post 
                Traumatic Stress Disorder, suicide attempts, 
                and suicide) occurring among members who have 
                undergone multiple deployments in Operation 
                Iraqi Freedom or Operation Enduring Freedom.
                    ``(B) An evaluation of the availability to 
                members of assessments under the Mental Health 
                Self-Assessment Program of the Department of 
                Defense to ensure the long-term availability of 
                the diagnostic mechanisms of the assessment to 
                detect mental health conditions that may emerge 
                in such members over time.
                    ``(C) The availability of programs and 
                services under the Mental Health Self-
                Assessment Program to address the mental health 
                of dependent children of members who were 
                deployed in Operation Iraqi Freedom or 
                Operation Enduring Freedom.
                    ``(D) Recommendations on mechanisms for 
                improving the mental health services available 
                to members who were deployed in Operation Iraqi 
                Freedom or Operation Enduring Freedom, 
                including members who have undergone multiple 
                deployments.''.

SEC. 736. ADDITIONAL AUTHORIZED OPTION PERIODS FOR EXTENSION OF CURRENT 
                    CONTRACTS UNDER TRICARE.

    (a) Additional Number of Authorized Periods.--
            (1) In general.--The Secretary of Defense, after 
        consulting with the other administering Secretaries, 
        may extend any contract for the delivery of health care 
        entered into under section 1097 of title 10, United 
        States Code, that is in force on the date of the 
        enactment of this Act by one year, and upon expiration 
        of such extension by one additional year, if the 
        Secretary determines that such extension--
                    (A) is in the best interests of the 
                Department of Defense and covered 
                beneficiaries;
                    (B) is cost effective; and
                    (C) will--
                            (i) facilitate the effective 
                        administration of the TRICARE program; 
                        or
                            (ii) ensure continuity in the 
                        delivery of health care under the 
                        TRICARE program.
            (2) Limitation on number of extensions.--The total 
        number of one-year extensions of a contract that may be 
        granted under paragraph (1) may not exceed two 
        extensions.
            (3) Notice and wait.--The Secretary may not 
        commence the exercise of the authority in paragraph (1) 
        with respect to a contract covered by that paragraph 
        until 30 days after the date on which the Secretary 
        submits to the Committees on Armed Services of the 
        Senate and House of Representatives a report setting 
        forth the following:
                    (A) The minimum level of performance, 
                including beneficiary satisfaction and cost, by 
                the incumbent contractor under the contract 
                that will be required by the Secretary in order 
                to be eligible for an extension authorized by 
                such paragraph.
                    (B) The justification for such extension 
                based on each of the criteria in paragraph (1).
                    (C) The justification for such extension 
                based on a cost-benefit analysis.
            (4) Definitions.--In this subsection, the terms 
        ``administering Secretaries'', ``covered beneficiary'', 
        and ``TRICARE program'' have the meaning given such 
        terms in section 1072 of title 10, United States Code.
    (b) Report on Contracting Mechanisms for Health Care 
Service Support Contracts.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary shall submit 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on contracting mechanisms under 
consideration for future contracts for health care service 
support under section 1097 of title 10, United States Code. The 
report shall include an assessment of the advantages and 
disadvantages for the Department of Defense (including the 
potential for stimulating competition and the effect on health 
care beneficiaries of the Department) of providing in such 
contracts for a single term of 5 years, with a single optional 
period of extension of an additional 5 years if performance 
under such contract is rated as ``excellent''.

SEC. 737. MILITARY VACCINATION MATTERS.

    (a) Additional Element for Comptroller General Study and 
Report on Vaccine Healthcare Centers.--Section 736(b) of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3356) is amended by adding at the end 
the following new paragraph:
            ``(10) The feasibility and advisability of 
        transferring direct responsibility for the Centers from 
        the Army Medical Command to the Under Secretary of 
        Defense for Personnel and Readiness and the Deputy 
        Assistant Secretary of Defense for Force Health 
        Protection and Readiness.''.
    (b) Limitation on Restructuring of Vaccine Healthcare 
Centers.--The Secretary of Defense may not downsize or 
otherwise restructure the Vaccine Healthcare Centers of the 
Department of Defense during fiscal year 2007. The Secretary 
shall ensure that the Secretary of each military department 
shall, from amounts allocated during fiscal year 2007 from the 
Defense Health Program, fund and maintain the Vaccine 
Healthcare Center of the military department concerned.

SEC. 738. ENHANCED MENTAL HEALTH SCREENING AND SERVICES FOR MEMBERS OF 
                    THE ARMED FORCES.

    (a) Additional Required Elements for Predeployment and 
Postdeployment Medical Examinations.--Subsection (b) of section 
1074f of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The system''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The predeployment and postdeployment medical 
examination of a member of the armed forces required under 
paragraph (1) shall include the following:
            ``(A) An assessment of the current treatment of the 
        member and any use of psychotropic medications by the 
        member for a mental health condition or disorder.
            ``(B) An assessment of traumatic brain injury.''.
    (b) Criteria for Referral for Further Evaluations.--Such 
section is further amended by adding at the end the following:
    ``(e) Criteria for Referral for Further Evaluations.--The 
system described in subsection (a) shall include--
            ``(1) development of clinical practice guidelines 
        to be utilized by healthcare providers in determining 
        whether to refer a member of the armed forces for 
        further evaluation relating to mental health (including 
        traumatic brain injury);
            ``(2) mechanisms to ensure that healthcare 
        providers are trained in the application of such 
        clinical practice guidelines; and
            ``(3) mechanisms for oversight to ensure that 
        healthcare providers apply such guidelines 
        consistently.''.
    (c) Minimum Mental Health Standards for Deployment.--Such 
section is further amended by adding at the end the following:
    ``(f) Minimum Mental Health Standards for Deployment.--(1) 
The Secretary of Defense shall prescribe in regulations minimum 
standards for mental health for the eligibility of a member of 
the armed forces for deployment to a combat operation or 
contingency operation.
    ``(2) The standards required by paragraph (1) shall include 
the following:
            ``(A) A specification of the mental health 
        conditions, treatment for such conditions, and receipt 
        of psychotropic medications for such conditions that 
        preclude deployment of a member of the armed forces to 
        a combat operation or contingency operation, or to a 
        specified type of such operation.
            ``(B) Guidelines for the deployability and 
        treatment of members of the armed forces diagnosed with 
        a severe mental illness or post traumatic stress 
        disorder.
    ``(3) The Secretary shall take appropriate actions to 
ensure the utilization of the standards prescribed under 
paragraph (1) in the making of determinations regarding the 
deployability of members of the armed forces to a combat 
operation or continency operation.''.
    (d) Quality Assurance.--Subsection (d) of such section is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new 
        paragraphs:
    ``(2) The quality assurance program established under 
paragraph (1) shall also include the following elements:
            ``(A) The types of healthcare providers conducting 
        postdeployment health assessments.
            ``(B) The training received by such providers 
        applicable to the conduct of such assessments, 
        including training on assessments and referrals 
        relating to mental health.
            ``(C) The guidance available to such providers on 
        how to apply the clinical practice guidelines developed 
        under subsection (e)(1) in determining whether to make 
        a referral for further evaluation of a member of the 
        armed forces relating to mental health.
            ``(D) The effectiveness of the tracking mechanisms 
        required under this section in ensuring that members 
        who receive referrals for further evaluations relating 
        to mental health receive such evaluations and obtain 
        such care and services as are warranted.
            ``(E) Programs established for monitoring the 
        mental health of each member who, after deployment to a 
        combat operation or contingency operations, is known--
                    ``(i) to have a mental health condition or 
                disorder; or
                    ``(ii) to be receiving treatment, including 
                psychotropic medications, for a mental health 
                condition or disorder.''.
    (e) Comptroller General Reports on Implementation of 
Requirements.--
            (1) Study on implementation.--The Comptroller 
        General of the United States shall carry out a study of 
        the implementation of the requirements of the 
        amendments made by this section.
            (2) Reports.--Not later than March 1, 2008, the 
        Comptroller General shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the study carried out under 
        paragraph (1).
    (f) Implementation.--The Secretary of Defense shall 
implement the requirements of the amendments made by this 
section not later than six months after the date of the 
enactment of this Act.
    (g) Report Required.--The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the actions taken to implement 
the requirements of the amendments made by this section not 
later than June 1, 2007.

                       Subtitle D--Other Matters

SEC. 741. PILOT PROJECTS ON EARLY DIAGNOSIS AND TREATMENT OF POST 
                    TRAUMATIC STRESS DISORDER AND OTHER MENTAL HEALTH 
                    CONDITIONS.

    (a) Pilot Projects Required.--The Secretary of Defense 
shall carry out not less than three pilot projects to evaluate 
the efficacy of various approaches to improving the capability 
of the military and civilian health care systems to provide 
early diagnosis and treatment of post traumatic stress disorder 
and other mental health conditions.
    (b) Duration.--Any pilot project carried out under this 
section shall begin not later than October 1, 2007, and cease 
on September 30, 2008.
    (c) Pilot Project Requirements.--
            (1) Diagnostic and treatment approaches.--One of 
        the pilot projects under this section shall be designed 
        to evaluate effective diagnostic and treatment 
        approaches for use by primary care providers in the 
        military health care system in order to improve the 
        capability of such providers to diagnose and treat post 
        traumatic stress disorder.
            (2) National guard or reserve members.--
                    (A) One of the pilot projects under this 
                section shall be focused on members of the 
                National Guard or Reserves who are located more 
                than 40 miles from a military medical facility 
                and who are served primarily by civilian 
                community health resources.
                    (B) The pilot project described in 
                subparagraph (A) shall be designed to develop 
                educational materials and other tools for use 
                by members of the National Guard or Reserves 
                who come into contact with other members of the 
                National Guard or Reserves who may suffer from 
                post traumatic stress disorder in order to 
                encourage and facilitate early reporting and 
                referral for treatment.
            (3) Outreach.--One of the pilot projects under this 
        section shall be designed to provide outreach to the 
        family members of the members of the Armed Forces on 
        post traumatic stress disorder and other mental health 
        conditions.
    (d) Evaluation of Pilot Projects.--The Secretary shall 
evaluate each pilot project carried out under this section in 
order to assess the effectiveness of the approaches taken under 
such pilot project--
            (1) to improve the capability of the military and 
        civilian health care systems to provide early diagnosis 
        and treatment of post traumatic stress disorder and 
        other mental health conditions among members of the 
        regular components of the Armed Forces, and among 
        members of the National Guard and Reserves, who have 
        returned from deployment; and
            (2) to provide outreach to the family members of 
        the members of the Armed Forces described in paragraph 
        (1) on post traumatic stress disorder and other mental 
        health conditions among such members of the Armed 
        Forces.
    (e) Report to Congress.--
            (1) Report required.--Not later than December 31, 
        2008, the Secretary shall submit to the congressional 
        defense committees a report on the pilot projects 
        carried out under this section.
            (2) Elements.--The report required by paragraph (1) 
        shall include the following:
                    (A) A description of each pilot project 
                carried out under this section.
                    (B) An assessment of the effectiveness of 
                the approaches taken under each pilot project 
                to improve the capability of the military and 
                civilian health care systems to provide early 
                diagnosis and treatment of post traumatic 
                stress disorder and other mental health 
                conditions among members of the Armed Forces.
                    (C) Any recommendations for legislative or 
                administrative action that the Secretary 
                considers appropriate in light of the pilot 
                projects, including recommendations on--
                            (i) the training of health care 
                        providers in the military and civilian 
                        health care systems on early diagnosis 
                        and treatment of post traumatic stress 
                        disorder and other mental health 
                        conditions; and
                            (ii) the provision of outreach on 
                        post traumatic stress disorder and 
                        other mental health conditions to 
                        members of the National Guard and 
                        Reserves who have returned from 
                        deployment.
                    (D) A plan, in light of the pilot projects, 
                for the improvement of the health care services 
                provided to members of the Armed Forces in 
                order to better assure the early diagnosis and 
                treatment of post traumatic stress disorder and 
                other mental health conditions among members of 
                the Armed Forces, including a specific plan for 
                outreach on post traumatic stress disorder and 
                other mental health conditions to members of 
                the National Guard and Reserves who have 
                returned from deployment in order to facilitate 
                and enhance the early diagnosis and treatment 
                of post traumatic stress disorder and other 
                mental health conditions among such members of 
                the National Guard and Reserves.

SEC. 742. REQUIREMENT TO CERTIFY AND REPORT ON CONVERSION OF MILITARY 
                    MEDICAL AND DENTAL POSITIONS TO CIVILIAN MEDICAL 
                    AND DENTAL POSITIONS.

    (a) Prohibition on Conversions.--
            (1) Submission of certification.--The Secretary of 
        a military department may not convert any military 
        medical or dental position to a civilian medical or 
        dental position in a fiscal year until the Secretary 
        submits to the congressional defense committees with 
        respect to that fiscal year a certification that the 
        conversions within that department will not increase 
        cost or decrease quality of care or access to care.
            (2) Report on certification.--Each certification 
        under paragraph (1) shall include a written report 
        setting forth the following:
                    (A) The methodology used by the Secretary 
                in making the determinations necessary for the 
                certification.
                    (B) The number of military medical or 
                dental positions, by grade or band and 
                specialty, planned for conversion to civilian 
                medical or dental positions.
                    (C) The results of a market survey in each 
                affected area of the availability of civilian 
                medical and dental care providers in such area 
                in order to determine whether the civilian 
                medical and dental care providers available in 
                such area are adequate to fill the civilian 
                positions created by the conversion of military 
                medical and dental positions to civilian 
                positions in such area.
                    (D) An analysis, by affected area, showing 
                the extent to which access to health care and 
                cost of health care will be affected in both 
                the direct care and purchased care systems, 
                including an assessment of the effect of any 
                increased shifts in patient load from the 
                direct care to the purchased care system, or 
                any delays in receipt of care in either the 
                direct or purchased care system because of the 
                planned conversions.
                    (E) The extent to which military medical 
                and dental positions planned for conversion to 
                civilian medical or dental positions will 
                affect recruiting and retention of uniformed 
                medical and dental personnel.
                    (F) A comparison of the full costs for the 
                military medical and dental positions planned 
                for conversion with the estimated full costs 
                for civilian medical and dental positions, 
                including expenses such as recruiting, salary, 
                benefits, training, and any other costs the 
                Department identifies.
                    (G) An assessment showing that the military 
                medical or dental positions planned for 
                conversion are in excess of the military 
                medical and dental positions needed to meet 
                medical and dental readiness requirements of 
                the uniformed services, as determined jointly 
                by all the uniformed services.
                    (H) An identification of each medical and 
                dental position scheduled to be converted to a 
                civilian position in the subsequent fiscal 
                year, including the location of each position 
                scheduled for conversion, the estimated cost of 
                such conversion, and whether or not civilian 
                personnel are available in the location for 
                filling a converted military medical or dental 
                position.
            (3) Submission deadline.--A certification and 
        report with respect to any fiscal year after fiscal 
        year 2007 shall be submitted at the same time the 
        budget of the President for such fiscal year is 
        submitted to Congress pursuant to section 1105(a) of 
        title 31, United States Code.
    (b) Requirement for Comptroller General Review.--Not later 
than 120 days after the submission of the budget of the 
President for a fiscal year, the Comptroller General shall 
submit to the congressional defense committees a report on any 
certifications and reports submitted with respect to that 
fiscal year under subsection (a).
    (c) Requirement To Resubmit Certification and Report 
Required by Public Law 109-163.--The Secretary of each military 
department shall resubmit the certification and report required 
by section 744(a) of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3360; 10 U.S.C. 
129c note). Such resubmissions shall address in their entirety 
the elements required by section 744(a)(2) of such Act.
    (d) Special Requirements for Fiscal Year 2007 
Certification.--
            (1) List of 2007 planned conversions.--The report 
        required by paragraph (2) of subsection (a) with 
        respect to fiscal year 2007 shall contain, in addition 
        to the elements required by that paragraph, a list of 
        each military medical or dental position scheduled to 
        be converted to a civilian medical or dental position 
        in fiscal year 2007.
            (2) Resubmission required first.--The certification 
        and report required by subsection (a) with respect to 
        fiscal year 2007 may not be submitted prior to the 
        resubmission required by subsection (c).
            (3) Prohibition on conversions during fiscal year 
        2007.--No conversions of a military medical or dental 
        position may occur during fiscal year 2007 prior to 
        both the resubmission required by subsection (c) and 
        the submission of the certification and report required 
        by subsection (a).
    (e) Report on Fiscal Year 2008 Conversion.--Not later than 
90 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 
that identifies the military medical or dental positions 
scheduled to be converted to civilian medical or dental 
positions in fiscal year 2008. Such report shall include the 
location of the positions scheduled for conversion, the 
estimated cost of such conversion, and whether or not civilian 
personnel are available in the location for filling the 
proposed converted military medical or dental position.
    (f) Definitions.--In this section:
            (1) The term ``military medical or dental 
        position'' means a position for the performance of 
        health care functions within the Armed Forces held by a 
        member of the Armed Forces.
            (2) The term ``civilian medical or dental 
        position'' means a position for the performance of 
        health care functions within the Department of Defense 
        held by an employee of the Department or of a 
        contractor of the Department.
            (3) The term ``affected area'' means an area in 
        which military medical or dental positions were 
        converted to civilian medical or dental positions 
        before October 1, 2004, or in which such conversions 
        are scheduled to occur in the future.
            (4) The term ``uniformed services'' has the meaning 
        given that term in section 1072(1) of title 10, United 
        States Code.
            (5) The term ``conversion'', with respect to a 
        military medical or dental position, means a change, 
        effective as of the date of the documentation by the 
        Department of Defense making the change, of the 
        position to a civilian medical or dental position.

SEC. 743. THREE-YEAR EXTENSION OF JOINT INCENTIVES PROGRAM ON SHARING 
                    OF HEALTH CARE RESOURCES BY THE DEPARTMENT OF 
                    DEFENSE AND DEPARTMENT OF VETERANS AFFAIRS.

    Section 8111(d)(3) of title 38, United States Code, is 
amended by striking ``September 30, 2007'' and inserting 
``September 30, 2010''.

SEC. 744. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE AND 
                    ASSISTANCE FOR MEMBERS AND FORMER MEMBERS OF THE 
                    ARMED FORCES WITH TRAUMATIC BRAIN INJURY.

    (a) Traumatic Brain Injury Family Caregiver Panel.--
            (1) Establishment.--The Secretary of Defense shall 
        establish a panel within the Department of Defense, to 
        be known as the ``Traumatic Brain Injury Family 
        Caregiver Panel'', to develop coordinated, uniform, and 
        consistent training curricula to be used in training 
        family members in the provision of care and assistance 
        to members and former members of the Armed Forces with 
        traumatic brain injuries.
            (2) Members.--The Traumatic Brain Injury Family 
        Caregiver Panel shall consist of 15 members appointed 
        by the Secretary of Defense from among the following:
                    (A) Physicians, nurses, rehabilitation 
                therapists, and other individuals with an 
                expertise in caring for and assisting 
                individuals with traumatic brain injury, 
                including persons who specialize in caring for 
                and assisting individuals with traumatic brain 
                injury incurred in combat.
                    (B) Representatives of family caregivers or 
                family caregiver associations.
                    (C) Health and medical personnel of the 
                Department of Defense and the Department of 
                Veterans Affairs with expertise in traumatic 
                brain injury and personnel and readiness 
                representatives of the Department of Defense 
                with expertise in traumatic brain injury.
                    (D) Psychologists or other individuals with 
                expertise in the mental health treatment and 
                care of individuals with traumatic brain 
                injury.
                    (E) Experts in the development of training 
                curricula.
                    (F) Family members of members of the Armed 
                Forces with traumatic brain injury.
                    (G) Such other individuals the Secretary 
                considers appropriate.
            (3) Consultation.--In establishing the Traumatic 
        Brain Injury Family Caregiver Panel and appointing the 
        members of the Panel, the Secretary of Defense shall 
        consult with the Secretary of Veterans Affairs.
    (b) Development of Curricula.--
            (1) Development.--The Traumatic Brain Injury Family 
        Caregiver Panel shall develop training curricula to be 
        used by family members of members and former members of 
        the Armed Forces on techniques, strategies, and skills 
        for care and assistance for such members and former 
        members with traumatic brain injury.
            (2) Scope of curricula.--The curricula shall--
                    (A) be based on empirical research and 
                validated techniques; and
                    (B) shall provide for training that permits 
                recipients to tailor caregiving to the unique 
                circumstances of the member or former member of 
                the Armed Forces receiving care.
            (3) Particular requirements.--In developing the 
        curricula, the Traumatic Brain Injury Family Caregiver 
        Panel shall--
                    (A) specify appropriate training 
                commensurate with the severity of traumatic 
                brain injury; and
                    (B) identify appropriate care and 
                assistance to be provided for the degree of 
                severity of traumatic brain injury for 
                caregivers of various levels of skill and 
                capability.
            (4) Use of existing materials.--In developing the 
        curricula, the Traumatic Brain Injury Family Caregiver 
        Panel shall use and enhance any existing training 
        curricula, materials, and resources applicable to such 
        curricula as the Panel considers appropriate.
            (5) Deadline for development.--The Traumatic Brain 
        Injury Family Caregiver Panel shall develop the 
        curricula not later than one year after the date of the 
        enactment of this Act.
    (c) Dissemination of Curricula.--
            (1) Dissemination mechanisms.--The Secretary of 
        Defense shall develop mechanisms for the dissemination 
        of the curricula developed under subsection (b)--
                    (A) to health care professionals who treat 
                or otherwise work with members and former 
                members of the Armed Forces with traumatic 
                brain injury;
                    (B) to family members affected by the 
                traumatic brain injury of such members and 
                former members; and
                    (C) to other care or support personnel who 
                may provide service to members or former 
                members affected by traumatic brain injury.
            (2) Use of existing mechanisms.--In developing such 
        mechanisms, the Secretary may use and enhance existing 
        mechanisms, including the Military Severely Injured 
        Center (authorized under section 564 of this Act) and 
        the programs for service to severely injured members 
        established by the military departments.
    (d) Report.--Not later than one year after the development 
of the curricula required by subsection (b), the Secretary of 
Defense and the Secretary of Veterans Affairs shall submit to 
the Committees on Armed Services and Veterans' Affairs of the 
Senate and the House of Representatives a report on the 
following:
            (1) The actions undertaken under this section.
            (2) Recommendations for the improvement or updating 
        of training curriculum developed and provided under 
        this section.

SEC. 745. RECOGNITION OF REPRESENTATIVE LANE EVANS UPON HIS RETIREMENT 
                    FROM THE HOUSE OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Lane Evans was elected to the 
        House of Representatives in 1982 and is completing his 
        12th term representing the people of Illinois' 17th 
        Congressional district.
            (2) As a member of the Committee on Armed Services 
        of the House of Representatives since 1988, 
        Representative Evans has worked to bring common sense 
        priorities to defense spending and strengthen the 
        military's conventional readiness.
            (3) Representative Evans has served as the ranking 
        member of the Committee on Veterans' Affairs of the 
        House of Representatives since 1997 and has been a 
        tireless advocate for military veterans, ensuring that 
        veterans receive the medical care they need and 
        advocating for individuals suffering from post-
        traumatic stress disorder and Gulf War Syndrome.
            (5) Drawing on his own experience as a member of 
        the Marine Corps, Representative Evans has tirelessly 
        fought for both current members of the Armed Forces and 
        veterans and has been a leader in legislative efforts 
        to assist members exposed to Agent Orange.
            (4) Representative Evans' efforts to improve the 
        transition of individuals from military service to the 
        care of the Department of Veterans Affairs will 
        continue to benefit generations of veterans long into 
        the future.
            (6) Representative Evans is credited with bringing 
        new services to veterans living in his Congressional 
        district, including outpatient clinics in the Quad 
        Cities and Quincy and the Quad-Cities Vet Center.
            (7) Representative Evans has worked with local 
        leaders to promote the Rock Island Arsenal and has seen 
        it win new jobs and missions through his support.
    (b) Recognition.--Congress recognizes and commends 
Representative Lane Evans for his 24 years of service to 
benefit the people of Illinois, members of the Armed Forces and 
their families, veterans, and the United States.

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

  Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Sec. 801. Requirements management certification training program.
Sec. 802. Additional requirements relating to technical data rights.
Sec. 803. Study and report on revisions to Selected Acquisition Report 
          requirements.
Sec. 804. Biannual updates on implementation of acquisition reform in 
          the Department of Defense.
Sec. 805. Additional certification requirements for major defense 
          acquisition programs before proceeding to Milestone B.
Sec. 806. Original baseline estimate for major defense acquisition 
          programs.
Sec. 807. Lead system integrators.

              Subtitle B--Acquisition Policy and Management

Sec. 811. Time-certain development for Department of Defense information 
          technology business systems.
Sec. 812. Pilot program on time-certain development in acquisition of 
          major weapon systems.
Sec. 813. Establishment of Panel on Contracting Integrity.
Sec. 814. Linking of award and incentive fees to acquisition outcomes.
Sec. 815. Report on defense instruction relating to contractor personnel 
          authorized to accompany Armed Forces.
Sec. 816. Major automated information system programs.
Sec. 817. Internal controls for procurements on behalf of the Department 
          of Defense by certain non-defense agencies.
Sec. 818. Determination of contract type for development programs.
Sec. 819. Three-year extension of requirement for reports on commercial 
          price trend analyses of the Department of Defense.
Sec. 820. Government performance of critical acquisition functions.

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

Sec. 831. One-year extension of special temporary contract closeout 
          authority.
Sec. 832. Limitation on contracts for the acquisition of certain 
          services.
Sec. 833. Use of Federal supply schedules by State and local governments 
          for goods and services for recovery from natural disasters, 
          terrorism, or nuclear, biological, chemical, or radiological 
          attack.
Sec. 834. Waivers to extend task order contracts for advisory and 
          assistance services.

      Subtitle D--United States Defense Industrial Base Provisions

Sec. 841. Assessment and annual report of United States defense 
          industrial base capabilities and acquisitions of articles, 
          materials, and supplies manufactured outside the United 
          States.
Sec. 842. Protection of strategic materials critical to national 
          security.
Sec. 843. Strategic Materials Protection Board.

                        Subtitle E--Other Matters

Sec. 851. Report on former Department of Defense officials employed by 
          contractors of the Department of Defense.
Sec. 852. Report and regulations on excessive pass-through charges.
Sec. 853. Program manager empowerment and accountability.
Sec. 854. Joint policies on requirements definition, contingency program 
          management, and contingency contracting.
Sec. 855. Clarification of authority to carry out certain prototype 
          projects.
Sec. 856. Contracting with employers of persons with disabilities.
Sec. 857. Enhanced access for small business.
Sec. 858. Procurement goal for Hispanic-serving institutions.

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

SEC. 801. REQUIREMENTS MANAGEMENT CERTIFICATION TRAINING PROGRAM.

    (a) Training Program.--
            (1) Requirement.--The Under Secretary of Defense 
        for Acquisition, Technology, and Logistics, in 
        consultation with the Defense Acquisition University, 
        shall develop a training program to certify military 
        and civilian personnel of the Department of Defense 
        with responsibility for generating requirements for 
        major defense acquisition programs (as defined in 
        section 2430(a) of title 10, United States Code).
            (2) Competency and other requirements.--The Under 
        Secretary shall establish competency requirements for 
        the personnel undergoing the training program. The 
        Under Secretary shall define the target population for 
        such training program by identifying which military and 
        civilian personnel should have responsibility for 
        generating requirements. The Under Secretary also may 
        establish other training programs for personnel not 
        subject to chapter 87 of title 10, United States Code, 
        who contribute significantly to other types of 
        acquisitions by the Department of Defense.
    (b) Applicability.--Effective on and after September 30, 
2008, a member of the Armed Forces or an employee of the 
Department of Defense with authority to generate requirements 
for a major defense acquisition program may not continue to 
participate in the requirements generation process unless the 
member or employee successfully completes the certification 
training program developed under this section.
    (c) Reports.--The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives an interim report, not later than March 1, 
2007, and a final report, not later than March 1, 2008, on the 
implementation of the training program required under this 
section.

SEC. 802. ADDITIONAL REQUIREMENTS RELATING TO TECHNICAL DATA RIGHTS.

    (a) Additional Requirements Relating to Technical Data 
Rights.--Section 2320 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) The Secretary of Defense shall require program 
managers for major weapon systems and subsystems of major 
weapon systems to assess the long-term technical data needs of 
such systems and subsystems and establish corresponding 
acquisition strategies that provide for technical data rights 
needed to sustain such systems and subsystems over their life 
cycle. Such strategies may include the development of 
maintenance capabilities within the Department of Defense or 
competition for contracts for sustainment of such systems or 
subsystems. Assessments and corresponding acquisition 
strategies developed under this section with respect to a 
weapon system or subsystem shall--
            ``(1) be developed before issuance of a contract 
        solicitation for the weapon system or subsystem;
            ``(2) address the merits of including a priced 
        contract option for the future delivery of technical 
        data that were not acquired upon initial contract 
        award;
            ``(3) address the potential for changes in the 
        sustainment plan over the life cycle of the weapon 
        system or subsystem; and
            ``(4) apply to weapon systems and subsystems that 
        are to be supported by performance-based logistics 
        arrangements as well as to weapons systems and 
        subsystems that are to be supported by other 
        sustainment approaches.''.
    (b) Modification of Presumption of Development Exclusively 
at Private Expense.--Section 2321(f) of title 10, United States 
Code, is amended--
            (1) by striking ``Expense for Commercial Items 
        Contracts.--In'' and inserting ``Expense.--(1) Except 
        as provided in paragraph (2), in''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) In the case of a challenge to a use or release 
restriction that is asserted with respect to technical data of 
a contractor or subcontractor (whether or not under a contract 
for commercial items) for a major system or a subsystem or 
component thereof on the basis that the major system, subsystem 
or component was developed exclusively at private expense, the 
challenge to the use or release restriction shall be sustained 
unless information provided by the contractor or subcontractor 
demonstrates that the item was developed exclusively at private 
expense.''.
    (c) Regulations.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall 
revise regulations under section 2320 of title 10, United 
States Code, to implement subsection (e) of such section (as 
added by this section), including incorporating policy changes 
developed under such subsection into Department of Defense 
Directive 5000.1 and Department of Defense Instruction 5000.2.

SEC. 803. STUDY AND REPORT ON REVISIONS TO SELECTED ACQUISITION REPORT 
                    REQUIREMENTS.

    (a) Study Requirement.--The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, 
Technology, and Logistics in coordination with the service 
acquisition executives of each military department, shall 
conduct a study on revisions to requirements relating to 
Selected Acquisition Reports, as set forth in section 2432 of 
title 10, United States Code.
    (b) Matters Covered.--The study required under subsection 
(a) shall--
            (1) focus on incorporating into the Selected 
        Acquisition Report those elements of program progress 
        that the Department of Defense considers most relevant 
        to evaluating the performance and progress of major 
        defense acquisition programs, with particular reference 
        to the cost estimates and program schedule established 
        when a major defense acquisition program receives 
        Milestone B approval;
            (2) address the need to ensure that data provided 
        through the Selected Acquisition Report is consistent 
        with data provided through internal Department of 
        Defense reporting systems for management purposes; and
            (3) include any recommendations to add to, modify, 
        or delete elements of the Selected Acquisition Report, 
        consistent with the findings of the study.
    (c) Report.--Not later than March 1, 2007, the Secretary 
shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the results of the 
study, including such recommendations as the Secretary 
considers appropriate.

SEC. 804. BIANNUAL UPDATES ON IMPLEMENTATION OF ACQUISITION REFORM IN 
                    THE DEPARTMENT OF DEFENSE.

    (a) Biannual Updates Requirement.--Not later than January 1 
and July 1 of each year, beginning with January 1, 2007, the 
Secretary of Defense shall provide to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report containing an update on the implementation of plans to 
reform the acquisition system in the Department of Defense.
    (b) Matters Covered.--Each report provided under subsection 
(a) shall cover the implementation of reforms of the processes 
for acquisition, including generation of requirements, award of 
contracts, and financial management. At a minimum, the reports 
shall take into account the recommendations made by the 
following:
            (1) The Defense Acquisition Performance Assessment 
        Panel.
            (2) The Defense Science Board Summer Study on 
        Transformation, issued in February 2006.
            (3) The Beyond Goldwater-Nichols Study of the 
        Center for Strategic and International Studies.
            (4) The Quadrennial Defense Review, issued February 
        6, 2006.
    (c) Recommendations.--Each report submitted under 
subsection (a) shall include such recommendations as the 
Secretary considers appropriate, and implementation plans for 
the recommendations.
    (d) Termination of Report Requirement.--The requirement to 
submit reports under subsection (a) shall terminate on December 
31, 2008.

SEC. 805. ADDITIONAL CERTIFICATION REQUIREMENTS FOR MAJOR DEFENSE 
                    ACQUISITION PROGRAMS BEFORE PROCEEDING TO MILESTONE 
                    B.

    (a) Additional Certification Requirements.--Subsection (a) 
of section 2366a of title 10, United States Code, is amended--
            (1) by redesignating paragraph (7) as paragraph 
        (10);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) by inserting before paragraph (2) (as so 
        redesignated) the following new paragraph (1):
            ``(1) appropriate market research has been 
        conducted prior to technology development to reduce 
        duplication of existing technology and products;'';
            (4) in paragraph (7) (as so redesignated), by 
        striking ``and'' at the end; and
            (5) by inserting after such paragraph (7) the 
        following new paragraphs:
            ``(8) reasonable cost and schedule estimates have 
        been developed to execute the product development and 
        production plan under the program;
            ``(9) funding is available to execute the product 
        development and production plan under the program, 
        through the period covered by the future-years defense 
        program submitted during the fiscal year in which the 
        certification is made, consistent with the estimates 
        described in paragraph (8) for the program; and''.
    (b) Waiver for National Security.--Subsection (c) of such 
section is amended by striking ``(5), or (6)'' and inserting 
``(5), (6), (7), (8), or (9)''.

SEC. 806. ORIGINAL BASELINE ESTIMATE FOR MAJOR DEFENSE ACQUISITION 
                    PROGRAMS.

    Section 2435(d)(1) of title 10, United States Code, is 
amended by inserting after ``with respect to the program under 
subsection (a)'' the following: ``prepared before the program 
enters system development and demonstration, or at program 
initiation, whichever occurs later''.

SEC. 807. LEAD SYSTEM INTEGRATORS.

    (a) Limitations on Contractors Acting as Lead System 
Integrators.--
            (1) In general.--Chapter 141 of title 10, United 
        States Code, is amended by adding at the end the 
        following new section:

``Sec. 2410p. Contracts: limitations on lead system integrators

    ``(a) In General.--Except as provided in subsection (b), no 
entity performing lead system integrator functions in the 
acquisition of a major system by the Department of Defense may 
have any direct financial interest in the development or 
construction of any individual system or element of any system 
of systems.
    ``(b) Exception.--An entity described in subsection (a) may 
have a direct financial interest in the development or 
construction of an individual system or element of a system of 
systems if--
            ``(1) the Secretary of Defense certifies to the 
        Committees on Armed Services of the Senate and the 
        House of Representatives that--
                    ``(A) the entity was selected by the 
                Department of Defense as a contractor to 
                develop or construct the system or element 
                concerned through the use of competitive 
                procedures; and
                    ``(B) the Department took appropriate steps 
                to prevent any organizational conflict of 
                interest in the selection process; or
            ``(2) the entity was selected by a subcontractor to 
        serve as a lower-tier subcontractor, through a process 
        over which the entity exercised no control.
    ``(c) Construction.--Nothing in this section shall be 
construed to preclude an entity described in subsection (a) 
from performing work necessary to integrate two or more 
individual systems or elements of a system of systems with each 
other.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 141 of such title is amended 
        by adding at the end the following new item:

``2410p. Contracts: limitations on lead system integrators''.

            (3) Effective date.--Section 2410p of title 10, 
        United States Code, as added by paragraph (1), shall 
        apply with respect to contracts entered into after 
        December 31, 2006.
    (b) Update of Regulations on Lead System Integrators.--Not 
later than December 31, 2006, the Secretary of Defense shall 
update the acquisition regulations of the Department of Defense 
in order to specify fully in such regulations the matters with 
respect to lead system integrators set forth in section 805(b) 
of the National Defense Authorization Act for Fiscal Year 2006 
(Public Law 109-163; 119 Stat. 3372) and the amendments made by 
subsection (a).
    (c) Additional Report Requirements.--The Secretary of 
Defense shall include in the report required by section 805 of 
such Act--
            (1) a precise and comprehensive definition of the 
        term ``lead system integrator'', as that term is used 
        in such section; and
            (2) a specification of various types of contracts 
        and fee structures that are appropriate for use by lead 
        system integrators in the production, fielding, and 
        sustainment of complex systems.

             Subtitle B--Acquisition Policy and Management

SEC. 811. TIME-CERTAIN DEVELOPMENT FOR DEPARTMENT OF DEFENSE 
                    INFORMATION TECHNOLOGY BUSINESS SYSTEMS.

    (a) Milestone A Limitation.--The Department of Defense 
executive or entity that is the milestone decision authority 
for an information system described in subsection (c) may not 
provide Milestone A approval for the system unless, as part of 
the decision process for such approval, that authority 
determines that the system will achieve initial operational 
capability within a specified period of time not exceeding five 
years.
    (b) Initial Operational Capability Limitation.--If an 
information system described in subsection (c), having received 
Milestone A approval, has not achieved initial operational 
capability within five years after the date of such approval, 
the system shall be deemed to have undergone a critical change 
in program requiring the evaluation and report required by 
section 2445c(d) of title 10, United States Code (as added by 
section 816 of this Act).
    (c) Covered Systems.--An information system described in 
this subsection is any Department of Defense information 
technology business system that is not a national security 
system, as defined in 3542(b)(2) of title 44, United States 
Code.
    (d) Definitions.--In this section:
            (1) Milestone decision authority.--The term 
        ``milestone decision authority'' has the meaning given 
        that term in Department of Defense Instruction 5000.2, 
        dated May 12, 2003.
            (2) Milestone a.--The term ``Milestone A'' has the 
        meaning given that term in Department of Defense 
        Instruction 5000.2, dated May 12, 2003.

SEC. 812. PILOT PROGRAM ON TIME-CERTAIN DEVELOPMENT IN ACQUISITION OF 
                    MAJOR WEAPON SYSTEMS.

    (a) Pilot Program Authorized.--The Secretary of Defense may 
carry out a pilot program on the use of time-certain 
development in the acquisition of major weapon systems.
    (b) Purpose of Pilot Program.--The purpose of the pilot 
program authorized by subsection (a) is to assess the 
feasibility and advisability of utilizing time-certain 
development in the acquisition of major weapon systems in order 
to deliver new capabilities to the warfighter more rapidly 
through--
            (1) disciplined decision-making;
            (2) emphasis on technological maturity; and
            (3) appropriate trade-offs between--
                    (A) cost and system performance; and
                    (B) program schedule.
    (c) Inclusion of Systems in Pilot Program.--
            (1) In general.--The Secretary of Defense may 
        include a major weapon system in the pilot program only 
        if--
                    (A) the major weapon system meets the 
                criteria under paragraph (2) in accordance with 
                that paragraph; and
                    (B) the Milestone Decision Authority 
                nominates such program to the Secretary of 
                Defense for inclusion in the program.
            (2) Criteria.--For purposes of paragraph (1) a 
        major weapon system meets the criteria under this 
        paragraph only if the Milestone Decision Authority 
        determines, in consultation with the service 
        acquisition executive for the military department 
        carrying out the acquisition program for the system and 
        one or more combatant commanders responsible for 
        fielding the system, that--
                    (A) the certification requirements of 
                section 2366a of title 10, United States Code 
                (as amended by section 805 of this Act), have 
                been met, and no waivers have been granted from 
                such requirements;
                    (B) a preliminary design has been reviewed 
                using systems engineering, and the system, as 
                so designed, will meet battlefield needs 
                identified by the relevant combatant commanders 
                after appropriate requirements analysis;
                    (C) a representative model or prototype of 
                the system, or key subsystems, has been 
                demonstrated in a relevant environment, such as 
                a well-simulated operational environment;
                    (D) an independent cost estimate has been 
                conducted and used as the basis for funding 
                requirements for the acquisition program for 
                the system;
                    (E) the budget of the military department 
                responsible for carrying out the acquisition 
                program for the system provides the funding 
                necessary to execute the product development 
                and production plan consistent with the 
                requirements identified pursuant to 
                subparagraph (D);
                    (F) an appropriately qualified program 
                manager has entered into a performance 
                agreement with the Milestone Decision Authority 
                that establishes expected parameters for the 
                cost, schedule, and performance of the 
                acquisition program for the system, consistent 
                with a business case for such acquisition 
                program;
                    (G) the service acquisition executive and 
                the program manager have developed a strategy 
                to ensure stability in program management 
                until, at a minimum, the delivery of the 
                initial operational capability under the 
                acquisition program for the system has 
                occurred;
                    (H) the service acquisition executive, the 
                relevant combatant commanders, and the program 
                manager have agreed that no additional 
                requirements that would be inconsistent with 
                the agreed-upon program schedule will be added 
                during the development phase of the acquisition 
                program for the system; and
                    (I) a planned initial operational 
                capability will be delivered to the relevant 
                combatant commanders within a defined period of 
                time as prescribed in regulations by the 
                Secretary of Defense.
            (3) Timing of decision.--The decision whether to 
        include a major weapon system in the pilot program 
        shall be made at the time of milestone approval for the 
        acquisition program for the system.
    (d) Limitation on Number of Weapons Systems in Pilot 
Program.--The number of major weapon systems included in the 
pilot program at any time may not exceed six major weapon 
systems.
    (e) Limitation on Cost of Weapons Systems in Pilot 
Program.--The Secretary of Defense may include a major weapon 
system in the pilot program only if, at the time a major weapon 
system is proposed for inclusion, the total cost for system 
design and development of the weapon system, as set forth in 
the cost estimate referred to in subsection (c)(2)(D), does not 
exceed $1,000,000,000 during the period covered by the current 
future-years defense program.
    (f) Special Funding Authority.--
            (1) Authority for reserve account.--Notwithstanding 
        any other provision of law, the Secretary of Defense 
        may establish a special reserve account utilizing funds 
        made available for the major weapon systems included in 
        the pilot program.
            (2) Elements.--The special reserve account may 
        include--
                    (A) funds made available for any major 
                weapon system included in the pilot program to 
                cover termination liability;
                    (B) funds made available for any major 
                weapon system included in the pilot program for 
                award fees that may be earned by contractors; 
                and
                    (C) funds appropriated to the special 
                reserve account.
            (3) Availability of funds.--Funds in the special 
        reserve account may be used, in accordance with 
        guidance issued by the Secretary for purposes of this 
        section, for the following purposes:
                    (A) To cover termination liability for any 
                major weapon system included in the pilot 
                program.
                    (B) To pay award fees that are earned by 
                any contractor for a major weapon system 
                included in the pilot program.
                    (C) To address unforeseen contingencies 
                that could prevent a major weapon system 
                included in the pilot program from meeting 
                critical schedule or performance requirements.
            (4) Reports on use of funds.--Not later than 30 
        days after the use of funds in the special reserve 
        account for the purpose specified in paragraph (3)(C), 
        the Secretary shall submit to the congressional defense 
        committees a report on the use of funds in the account 
        for such purpose. The report shall set forth the 
        purposes for which the funds were used and the reasons 
        for the use of the funds for such purposes.
            (5) Relationship to appropriations.--Nothing in 
        this subsection may be construed as extending any 
        period of time for which appropriated funds are made 
        available.
    (g) Administration of Pilot Program.--The Secretary of 
Defense shall prescribe policies and procedures on the 
administration of the pilot program. Such policies and 
procedures shall--
            (1) provide for the use of program status reports 
        based on earned value data to track progress on a major 
        weapon system under the pilot program against baseline 
        estimates applicable to such system at each systems 
        engineering technical review point; and
            (2) grant authority, to the maximum extent 
        practicable, to the program manager for the acquisition 
        program for a major weapon system to make key program 
        decisions and trade-offs, subject to management reviews 
        only if cost or schedule deviations exceed the 
        baselines for such acquisition program by 10 percent or 
        more.
    (h) Removal of Weapons Systems From Pilot Program.--The 
Secretary of Defense shall remove a major weapon system from 
the pilot program if--
            (1) the weapon system receives Milestone C 
        approval; or
            (2) the Secretary determines that the weapon system 
        is no longer in substantial compliance with the 
        criteria in subsection (c)(2) or is otherwise no longer 
        appropriate for inclusion in the pilot program.
    (i) Expiration of Authority to Include Additional Systems 
in Pilot Program.--
            (1) Expiration.--A major weapon system may not be 
        included in the pilot program after September 30, 2012.
            (2) Retention of systems.--A major weapon system 
        included in the pilot program before the date specified 
        in paragraph (1) in accordance with the requirements of 
        this section may remain in the pilot program after that 
        date.
    (j) Annual Report.--
            (1) In general.--Not later than one year after 
        including the first major weapon system in the pilot 
        program, and annually thereafter, the Secretary shall 
        submit to the congressional defense committees a report 
        on the pilot program, and the major weapon systems 
        included in the pilot program, during the one-year 
        period ending on the date of such report.
            (2) Elements.--Each report under this subsection 
        shall include--
                    (A) a description of progress under the 
                pilot program, and on each major weapon system 
                included in the pilot program, during the 
                period covered by such report;
                    (B) a description of the use of all funds 
                in the special reserve account established 
                under subsection (f); and
                    (C) such other matters as the Secretary 
                considers appropriate.
    (k) Major Weapon System Defined.--In this section, the term 
``major weapon system'' means a weapon system that is treatable 
as a major system under section 2302(5) of title 10, United 
States Code.

SEC. 813. ESTABLISHMENT OF PANEL ON CONTRACTING INTEGRITY.

    (a) Establishment.--
            (1) In general.--The Secretary of Defense shall 
        establish a panel to be known as the ``Panel on 
        Contracting Integrity''.
            (2) Composition.--The panel shall be composed of 
        the following:
                    (A) A representative of the Under Secretary 
                of Defense for Acquisition, Technology, and 
                Logistics, who shall be the chairman of the 
                panel.
                    (B) A representative of the service 
                acquisition executive of each military 
                department.
                    (C) A representative of the Inspector 
                General of the Department of Defense.
                    (D) A representative of the Inspector 
                General of each military department.
                    (E) A representative of each Defense Agency 
                involved with contracting, as determined 
                appropriate by the Secretary of Defense.
                    (F) Such other representatives as may be 
                determined appropriate by the Secretary of 
                Defense.
    (b) Duties.--In addition to other matters assigned to it by 
the Secretary of Defense, the panel shall--
            (1) conduct reviews of progress made by the 
        Department of Defense to eliminate areas of 
        vulnerability of the defense contracting system that 
        allow fraud, waste, and abuse to occur;
            (2) review the report by the Comptroller General 
        required by section 841 of the National Defense 
        Authorization Act for Fiscal Year 2006 (Public Law 109-
        163; 119 Stat. 3389), relating to areas of 
        vulnerability of Department of Defense contracts to 
        fraud, waste, and abuse; and
            (3) recommend changes in law, regulations, and 
        policy that it determines necessary to eliminate such 
        areas of vulnerability.
    (c) Meetings.--The panel shall meet as determined necessary 
by the Secretary of Defense but not less often than once every 
six months.
    (d) Report.--
            (1) Requirement.--The panel shall prepare and 
        submit to the Secretary of Defense and the 
        congressional defense committees an annual report on 
        its activities. The report shall be submitted not later 
        than December 31 of each year and contain a summary of 
        the panel's findings and recommendations for the year 
        covered by the report.
            (2) First report.--The first report under this 
        subsection shall be submitted not later than December 
        31, 2007, and shall contain an examination of the 
        current structure in the Department of Defense for 
        contracting integrity and recommendations for any 
        changes needed to the system of administrative 
        safeguards and disciplinary actions to ensure 
        accountability at the appropriate level for any 
        violations of appropriate standards of behavior in 
        contracting.
            (3) Interim reports.--The panel may submit such 
        interim reports to the congressional defense committees 
        as the Secretary of Defense considers appropriate.
    (e) Termination.--The panel shall terminate on December 31, 
2009.

SEC. 814. LINKING OF AWARD AND INCENTIVE FEES TO ACQUISITION OUTCOMES.

    (a) Guidance on Linking of Award and Incentive Fees to 
Acquisition Outcomes.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
issue guidance, with detailed implementation instructions 
(including definitions), for the Department of Defense on the 
appropriate use of award and incentive fees in Department of 
Defense acquisition programs.
    (b) Elements.--The guidance under subsection (a) shall--
            (1) ensure that all new contracts using award fees 
        link such fees to acquisition outcomes (which shall be 
        defined in terms of program cost, schedule, and 
        performance);
            (2) establish standards for identifying the 
        appropriate level of officials authorized to approve 
        the use of award and incentive fees in new contracts;
            (3) provide guidance on the circumstances in which 
        contractor performance may be judged to be 
        ``excellent'' or ``superior'' and the percentage of the 
        available award fee which contractors should be paid 
        for such performance;
            (4) establish standards for determining the 
        percentage of the available award fee, if any, which 
        contractors should be paid for performance that is 
        judged to be ``acceptable'', ``average'', ``expected'', 
        ``good'', or ``satisfactory'';
            (5) ensure that no award fee may be paid for 
        contractor performance that is judged to be below 
        satisfactory performance or performance that does not 
        meet the basic requirements of the contract;
            (6) provide specific direction on the 
        circumstances, if any, in which it may be appropriate 
        to roll over award fees that are not earned in one 
        award fee period to a subsequent award fee period or 
        periods;
            (7) ensure consistent use of guidelines and 
        definitions relating to award and incentive fees across 
        the military departments and Defense Agencies;
            (8) ensure that the Department of Defense--
                    (A) collects relevant data on award and 
                incentive fees paid to contractors; and
                    (B) has mechanisms in place to evaluate 
                such data on a regular basis;
            (9) include performance measures to evaluate the 
        effectiveness of award and incentive fees as a tool for 
        improving contractor performance and achieving desired 
        program outcomes; and
            (10) provide mechanisms for sharing proven 
        incentive strategies for the acquisition of different 
        types of products and services among contracting and 
        program management officials.
    (c) Assessment of Independent Evaluation Mechanisms.--
            (1) In general.--The Secretary of Defense shall 
        select a federally funded research and development 
        center to assess various mechanisms that could be used 
        to ensure an independent evaluation of contractor 
        performance for the purpose of making determinations 
        applicable to the judging and payment of award fees.
            (2) Considerations.--The assessment conducted 
        pursuant to paragraph (1) shall include consideration 
        of the advantages and disadvantages of a system in 
        which award fees are--
                    (A) held in a separate fund or funds of the 
                Department of Defense; and
                    (B) allocated to a specific program only 
                upon a determination by an independent board, 
                charged with comparing contractor performance 
                across programs, that such fees have been 
                earned by the contractor for such program.
            (3) Report.--The Secretary shall submit to the 
        congressional defense committees a report on the 
        assessment conducted pursuant to paragraph (1) not 
        later than one year after the date of the enactment of 
        this Act.

SEC. 815. REPORT ON DEFENSE INSTRUCTION RELATING TO CONTRACTOR 
                    PERSONNEL AUTHORIZED TO ACCOMPANY ARMED FORCES.

    (a) Report on Implementation of Instruction.--The Secretary 
of Defense shall submit to Congress a report on the Department 
of Defense instruction described in subsection (c).
    (b) Matters Covered.--The report shall include the 
following:
            (1) Information on the status of the implementation 
        of the instruction.
            (2) A discussion of how the instruction is being 
        applied to--
                    (A) contracts in existence on the date the 
                instruction was issued, including contracts 
                with respect to which an option to extend is 
                exercised after such date;
                    (B) task orders issued under such contracts 
                after the date referred to in subparagraph (A); 
                and
                    (C) contracts entered into after the date 
                referred to in subparagraph (A).
            (3) An analysis of the effectiveness of the 
        instruction.
            (4) A review of compliance with the instruction.
    (c) Instruction Described.--The instruction referred to in 
this section is Department of Defense Instruction Number 
3020.14, titled ``Contractor Personnel Authorized to Accompany 
the United States Armed Forces''.

SEC. 816. MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS.

    (a) Reports and Information on Program Cost and 
Performance.--
            (1) In general.--Part IV of subtitle A of title 10, 
        United States Code, is amended by inserting after 
        chapter 144 the following new chapter:

      ``CHAPTER 144A--MAJOR AUTOMATED INFORMATION SYSTEM PROGRAMS

``Sec.
``2445a. Major automated information system program defined.
``2445b. Cost, schedule, and performance information.
``2445c. Reports: quarterly reports; reports on program changes.
``2445d. Construction with other reporting requirements.

``Sec. 2445a. Major automated information system program defined

    ``(a) In General.--In this chapter, the term `major 
automated information system program' means a Department of 
Defense program for the acquisition of an automated information 
system (either as a product or a service) if--
            ``(1) the program is designated by the Secretary of 
        Defense, or a designee of the Secretary, as a major 
        automated information system program; or
            ``(2) the dollar value of the program is estimated 
        to exceed--
                    ``(A) $32,000,000 in fiscal year 2000 
                constant dollars for all program costs in a 
                single fiscal year;
                    ``(B) $126,000,000 in fiscal year 2000 
                constant dollars for all program acquisition 
                costs for the entire program; or
                    ``(C) $378,000,000 in fiscal year 2000 
                constant dollars for the total life-cycle costs 
                of the program (including operation and 
                maintenance costs).
    ``(b) Adjustment.--The Secretary of Defense may adjust the 
amounts (and base fiscal year) set forth in subsection (a) on 
the basis of Department of Defense escalation rates. An 
adjustment under this subsection shall be effective after the 
Secretary transmits a written notification of the adjustment to 
the congressional defense committees.
    ``(c) Increments.--In the event any increment of a major 
automated information system program separately meets the 
requirements for treatment as a major automated information 
system program, the provisions of this chapter shall apply to 
such increment as well as to the overall major automated 
information system program of which such increment is a part.

``Sec. 2445b. Cost, schedule, and performance information

    ``(a) Submittal of Cost, Schedule, and Performance 
Information.--The Secretary of Defense shall submit to Congress 
each calendar year, not later than 45 days after the President 
submits to Congress the budget for a fiscal year under section 
1105 of title 31, budget justification documents regarding 
cost, schedule, and performance for each major automated 
information system program for which funds are requested by the 
President in the budget.
    ``(b) Elements.--The documents submitted under subsection 
(a) with respect to a major automated information system 
program shall include detailed and summarized information with 
respect to the automated information system to be acquired 
under the program, and shall specifically include each of the 
following:
            ``(1) The development schedule, including major 
        milestones.
            ``(2) The implementation schedule, including 
        estimates of milestone dates, initial operational 
        capability, and full operational capability.
            ``(3) Estimates of development costs and full life-
        cycle costs.
            ``(4) A summary of key performance parameters.
    ``(c) Baseline.--(1) For purposes of this chapter, the 
initial submittal to Congress of the documents required by 
subsection (a) with respect to a major automated information 
system program shall constitute the original estimate or 
information originally submitted on such program for purposes 
of the reports and determinations on program changes in section 
2445c of this title.
    ``(2) An adjustment or revision of the original estimate or 
information originally submitted on a program may be treated as 
the original estimate or information originally submitted on 
the program if the adjustment or revision is the result of a 
critical change in the program covered by section 2445c(d) of 
this title.
    ``(3) In the event of an adjustment or revision to the 
original estimate or information originally submitted on a 
program under paragraph (2), the Secretary of Defense shall 
include in the next budget justification documents submitted 
under subsection (a) after such adjustment or revision a 
notification to the congressional defense committees of such 
adjustment or revision, together with the reasons for such 
adjustment or revision.

``Sec. 2445c. Reports: quarterly reports; reports on program changes

    ``(a) Quarterly Reports by Program Managers.--The program 
manager of a major automated information system program shall, 
on a quarterly basis, submit to the senior Department of 
Defense official responsible for the program a written report 
identifying any variance in the projected development schedule, 
implementation schedule, life-cycle costs, or key performance 
parameters for the major automated information system to be 
acquired under the program from such information as originally 
submitted to Congress under section 2445b of this title.
    ``(b) Senior Officials Responsible for Programs.--For 
purposes of this section, the senior Department of Defense 
official responsible for a major automated information system 
program is--
            ``(1) in the case of an automated information 
        system to be acquired for a military department, the 
        senior acquisition executive for the military 
        department; or
            ``(2) in the case of any other automated 
        information system to be acquired for the Department of 
        Defense or any component of the Department of Defense, 
        the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
    ``(c) Report on Significant Changes in Program.--
            ``(1) In general.--If, based on a quarterly report 
        submitted by the program manager of a major automated 
        information system program pursuant to subsection (a), 
        the senior Department of Defense official responsible 
        for the program makes a determination described in 
        paragraph (2), the official shall, not later than 45 
        days after receiving such report, notify the 
        congressional defense committees in writing of such 
        determination.
            ``(2) Covered determination.--A determination 
        described in this paragraph with respect to a major 
        automated information system program is a determination 
        that--
                    ``(A) there has been a schedule change that 
                will cause a delay of more than six months but 
                less than a year in any program schedule 
                milestone or significant event from the 
                schedule originally submitted to Congress under 
                paragraph (1) or (2) of section 2445b(b) of 
                this title;
                    ``(B) the estimated program development 
                cost or full life-cycle cost for the program 
                has increased by at least 15 percent, but less 
                than 25 percent, over the original estimate 
                submitted to Congress under paragraph (3) of 
                section 2445b(b) of this title; or
                    ``(C) there has been a significant, adverse 
                change in the expected performance of the major 
                automated information system to be acquired 
                under the program from the parameters 
                originally submitted to Congress under 
                paragraph (4) of section 2445b(b) of this 
                title.
    ``(d) Report on Critical Changes in Program.--
            ``(1) In general.--If, based on a quarterly report 
        submitted by the program manager of a major automated 
        information system program pursuant to subsection (a), 
        the senior Department of Defense official responsible 
        for the program makes a determination described in 
        paragraph (2), the official shall, not later than 60 
        days after receiving such report--
                    ``(A) carry out an evaluation of the 
                program under subsection (e); and
                    ``(B) submit, through the Secretary of 
                Defense, to the congressional defense 
                committees a report meeting the requirements of 
                subsection (f).
            ``(2) Covered determination.--A determination 
        described in this paragraph with respect to a major 
        automated information system program is a determination 
        that--
                    ``(A) the system failed to achieve initial 
                operational capability within five years of 
                milestone A approval;
                    ``(B) there has been a schedule change that 
                will cause a delay of one year or more in any 
                program schedule milestone or significant event 
                from the schedule originally submitted to 
                Congress under paragraph (1) or (2) of section 
                2445b(b) of this title;
                    ``(C) the estimated program development 
                cost or full life-cycle cost for the program 
                has increased by 25 percent or more over the 
                original estimate submitted to Congress under 
                paragraph (3) of section 2445b(b) of this 
                title; or
                    ``(D) there has been a change in the 
                expected performance of the major automated 
                information system to be acquired under the 
                program that will undermine the ability of the 
                system to perform the functions anticipated at 
                the time information on the program was 
                originally submitted to Congress under section 
                2445b(b) of this title.
    ``(e) Program Evaluation.--The evaluation of a major 
automated information system program conducted under this 
subsection for purposes of subsection (d)(1)(A) shall include 
an assessment of--
            ``(1) the projected cost and schedule for 
        completing the program if current requirements are not 
        modified;
            ``(2) the projected cost and schedule for 
        completing the program based on reasonable modification 
        of such requirements; and
            ``(3) the rough order of magnitude of the cost and 
        schedule for any reasonable alternative system or 
        capability.
    ``(f) Report on Critical Program Changes.--A report on a 
major automated information system program conducted under this 
subsection for purposes of subsection (d)(1)(B) shall include a 
written certification (with supporting explanation) stating 
that--
            ``(1) the automated information system to be 
        acquired under the program is essential to the national 
        security or to the efficient management of the 
        Department of Defense;
            ``(2) there is no alternative to the system which 
        will provide equal or greater capability at less cost;
            ``(3) the new estimates of the costs, schedule, and 
        performance parameters with respect to the program and 
        system are reasonable; and
            ``(4) the management structure for the program is 
        adequate to manage and control program costs.
    ``(g) Prohibition on Obligation of Funds.--(1) If the 
determination of a critical change to a program is made by the 
senior Department official responsible for the program under 
subsection (d)(2) and a report is not submitted to Congress 
within the 60-day period provided by subsection (d)(1), 
appropriated funds may not be obligated for any major contract 
under the program.
    ``(2) The prohibition on the obligation of funds for a 
program under paragraph (1) shall cease to apply on the date on 
which Congress has received a report in compliance with the 
requirements of subsection (d)(2).

``Sec. 2445d. Construction with other reporting requirements

    ``In the case of a major automated information system 
program covered by this chapter that is also treatable as a 
major defense acquisition program for which reports would be 
required under chapter 144 of this title, no reports on the 
program are required under such chapter if the requirements of 
this chapter with respect to the program are met.''.
            (2) Clerical amendments.--The tables of chapters 
        the beginning of subtitle A of such title, and of part 
        IV of subtitle A of such title, are each amended by 
        inserting after the item relating to chapter 144 the 
        following new item:

``144A. Major Automated Information System Programs.............2445a''.

    (b) Report on Reporting Requirements Applicable to Major 
Automated Information System Programs.--Not later than 180 days 
after the date of enactment of this Act, the Secretary of 
Defense shall submit to the congressional defense committees a 
report setting forth the reporting requirements applicable to 
major automated information system programs as of the date of 
the report, including a specification of such reporting 
requirements considered by the Secretary to be duplicative or 
redundant.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection 
        (a) shall take effect on January 1, 2008, and shall 
        apply with respect to any major automated information 
        system program for which amounts are requested in the 
        budget of the President (as submitted to Congress under 
        section 1105 of title 31, United States Code) for a 
        fiscal year after fiscal year 2008, regardless of 
        whether the acquisition of the automated information 
        system to be acquired under the program was initiated 
        before, on, or after January 1, 2008.
            (2) Report requirement.--Subsection (b) shall take 
        effect on the date of the enactment of this Act.

SEC. 817. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE 
                    DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE 
                    AGENCIES.

    (a) Inspector General Reviews and Determinations.--
            (1) In general.--For each covered non-defense 
        agency, the Inspector General of the Department of 
        Defense and the Inspector General of such non-defense 
        agency shall, not later than March 15, 2007, jointly--
                    (A) review--
                            (i) the procurement policies, 
                        procedures, and internal controls of 
                        such non-defense agency that are 
                        applicable to the procurement of 
                        property and services on behalf of the 
                        Department by such non-defense agency; 
                        and
                            (ii) the administration of those 
                        policies, procedures, and internal 
                        controls; and
                    (B) determine in writing whether--
                            (i) such non-defense agency is 
                        compliant with defense procurement 
                        requirements;
                            (ii) such non-defense agency is not 
                        compliant with defense procurement 
                        requirements, but has a program or 
                        initiative to significantly improve 
                        compliance with defense procurement 
                        requirements;
                            (iii) neither of the conclusions 
                        stated in clauses (i) and (ii) is 
                        correct in the case of such non-defense 
                        agency; or
                            (iv) such non-defense agency is not 
                        compliant with defense procurement 
                        requirements to such an extent that the 
                        interests of the Department of Defense 
                        are at risk in procurements conducted 
                        by such non-defense agency.
            (2) Actions following certain determinations.--If 
        the Inspectors General determine under paragraph (1) 
        that a conclusion stated in clause (ii), (iii), or (iv) 
        of subparagraph (B) of that paragraph is correct in the 
        case of a covered non-defense agency, such Inspectors 
        General shall, not later than June 15, 2008, jointly--
                    (A) conduct a second review, as described 
                in subparagraph (A) of that paragraph, 
                regarding such non-defense agency's procurement 
                of property or services on behalf of the 
                Department of Defense in fiscal year 2007; and
                    (B) determine in writing whether such non-
                defense agency is or is not compliant with 
                defense procurement requirements.
    (b) Compliance With Defense Procurement Requirements.--For 
the purposes of this section, a covered non-defense agency is 
compliant with defense procurement requirements if such non-
defense agency's procurement policies, procedures, and internal 
controls applicable to the procurement of products and services 
on behalf of the Department of Defense, and the manner in which 
they are administered, are adequate to ensure such non-defense 
agency's compliance with the requirements of laws and 
regulations that apply to procurements of property and services 
made directly by the Department of Defense.
    (c) Memoranda of Understanding Between Inspectors 
General.--
            (1) In general.--Not later than 60 days after the 
        date of the enactment of this Act, the Inspector 
        General of the Department of Defense and the Inspector 
        General of each covered non-defense agency shall enter 
        into a memorandum of understanding with each other to 
        carry out the reviews and make the determinations 
        required by this section.
            (2) Scope of memoranda.--The Inspector General of 
        the Department of Defense and the Inspector General of 
        a covered non-defense agency may by mutual agreement 
        conduct separate reviews of the procurement of property 
        and services on behalf of the Department of Defense 
        that are conducted by separate business units, or under 
        separate governmentwide acquisition contracts, of such 
        non-defense agency. In any case where such separate 
        reviews are conducted, the Inspectors General shall 
        make separate determinations under paragraph (1) or (2) 
        of subsection (a), as applicable, with respect to each 
        such separate review.
    (d) Limitations on Procurements on Behalf of Department of 
Defense.--
            (1) Limitation during review period.--After March 
        15, 2007, and before June 16, 2008, no official of the 
        Department of Defense may, except as provided in 
        subsection (e) or (f), order, purchase, or otherwise 
        procure property or services in an amount in excess of 
        $100,000 through a covered non-defense agency for which 
        a determination described in clause (iii) or (iv) of 
        paragraph (1)(B) of subsection (a) has been made under 
        subsection (a).
            (2) Limitation after review period.--After June 15, 
        2008, no official of the Department of Defense may, 
        except as provided in subsection (e) or (f), order, 
        purchase, or otherwise procure property or services in 
        an amount in excess of $100,000 through a covered non-
        defense agency that, having been subject to review 
        under this section, has not been determined under this 
        section as being compliant with defense procurement 
        requirements.
            (3) Limitation following failure to reach mou.--
        Commencing on the date that is 60 days after the date 
        of the enactment of this Act, if a memorandum of 
        understanding between the Inspector General of the 
        Department of Defense and the Inspector General of a 
        covered non-defense agency cannot be attained causing 
        the review required by this section to not be 
        performed, no official of the Department of Defense, 
        except as provided in subsection (e) or (f), may order, 
        purchase or otherwise procure property or services in 
        an amount in excess of $100,000 through such non-
        defense agency.
    (e) Exception From Applicability of Limitations.--
            (1) Exception.--No limitation applies under 
        subsection (d) with respect to the procurement of 
        property and services on behalf of the Department of 
        Defense by a covered non-defense agency during any 
        period that there is in effect a determination of the 
        Under Secretary of Defense for Acquisition, Technology, 
        and Logistics, made in writing, that it is necessary in 
        the interest of the Department of Defense to continue 
        to procure property and services through such non-
        defense agency.
            (2) Applicability of determination.--A written 
        determination with respect to a covered non-defense 
        agency under paragraph (1) is in effect for the period, 
        not in excess of one year, that the Under Secretary 
        shall specify in the written determination. The Under 
        Secretary may extend from time to time, for up to one 
        year at a time, the period for which the written 
        determination remains in effect.
    (f) Termination of Applicability of Limitations.--
Subsection (d) shall cease to apply to a covered non-defense 
agency on the date on which the Inspector General of the 
Department of Defense and the Inspector General of such non-
defense agency jointly--
            (1) determine that such non-defense agency is 
        compliant with defense procurement requirements; and
            (2) notify the Secretary of Defense of that 
        determination.
    (g) Identification of Procurements Made During a Particular 
Fiscal Year.--For the purposes of subsection (a), a procurement 
shall be treated as being made during a particular fiscal year 
to the extent that funds are obligated by the Department of 
Defense for that procurement in that fiscal year.
    (h) Resolution of Disagreements.--If the Inspector General 
of the Department of Defense and the Inspector General of a 
covered non-defense agency are unable to agree on a joint 
determination under subsection (a) or (f), a determination by 
the Inspector General of the Department of Defense under such 
subsection shall be conclusive for the purposes of this 
section.
    (i) Definitions.--In this section:
            (1) The term ``covered non-defense agency'' means 
        each of the following:
                    (A) The Department of Veterans Affairs.
                    (B) The National Institutes of Health.
            (2) The term ``governmentwide acquisition 
        contract'', with respect to a covered non-defense 
        agency, means a task or delivery order contract that--
                    (A) is entered into by the non-defense 
                agency; and
                    (B) may be used as the contract under which 
                property or services are procured for one or 
                more other departments or agencies of the 
                Federal Government.

SEC. 818. DETERMINATION OF CONTRACT TYPE FOR DEVELOPMENT PROGRAMS.

    (a) Repeal of Superseded Requirements.--Section 807 of the 
National Defense Authorization Act, Fiscal Year 1989 (10 U.S.C. 
2304 note) is repealed.
    (b) Modification of Regulations.--Not later than 120 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall modify the regulations of the Department of 
Defense regarding the determination of contract type for 
development programs.
    (c) Elements.--As modified under subsection (b), the 
regulations shall require the Milestone Decision Authority for 
a major defense acquisition program to select the contract type 
for a development program at the time of a decision on 
Milestone B approval (or Key Decision Point B approval in the 
case of a space program) that is consistent with the level of 
program risk for the program. The Milestone Decision Authority 
may select--
            (1) a fixed-price type contract (including a fixed 
        price incentive contract); or
            (2) a cost type contract.
    (d) Conditions With Respect to Authorization of Cost Type 
Contract.--As modified under subsection (b), the regulations 
shall provide that the Milestone Decision Authority may 
authorize the use of a cost type contract under subsection (c) 
for a development program only upon a written determination 
that--
            (1) the program is so complex and technically 
        challenging that it would not be practicable to reduce 
        program risk to a level that would permit the use of a 
        fixed-price type contract; and
            (2) the complexity and technical challenge of the 
        program is not the result of a failure to meet the 
        requirements established in section 2366a of title 10, 
        United States Code.
    (e) Justification for Selection of Contract Type.--As 
modified under subsection (b), the regulations shall require 
the Milestone Decision Authority to document the basis for the 
contract type selected for a program. The documentation shall 
include an explanation of the level of program risk for the 
program and, if the Milestone Decision Authority determines 
that the level of program risk is high, the steps that have 
been taken to reduce program risk and reasons for proceeding 
with Milestone B approval despite the high level of program 
risk.

SEC. 819. THREE-YEAR EXTENSION OF REQUIREMENT FOR REPORTS ON COMMERCIAL 
                    PRICE TREND ANALYSES OF THE DEPARTMENT OF DEFENSE.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (10 U.S.C. 2306a note) 
is amended by striking ``2006'' and inserting ``2009''.

SEC. 820. GOVERNMENT PERFORMANCE OF CRITICAL ACQUISITION FUNCTIONS.

    (a) Goal.--It shall be the goal of the Department of 
Defense and each of the military departments to ensure that, 
within five years after the date of the enactment of this Act, 
for each major defense acquisition program and each major 
automated information system program, each of the following 
positions is performed by a properly qualified member of the 
Armed Forces or full-time employee of the Department of 
Defense:
            (1) Program manager.
            (2) Deputy program manager.
            (3) Chief engineer.
            (4) Systems engineer.
            (5) Cost estimator.
    (b) Plan of Action.--Not later than six months after the 
date of enactment of this Act, the Secretary of Defense shall 
develop and begin implementation of a plan of action for 
recruiting, training, and ensuring appropriate career 
development of military and civilian personnel to achieve the 
objective established in subsection (a). The plan of action 
required by this subsection shall include specific, measurable 
interim milestones.
    (c) Reports.--Not later than one year after the date of the 
enactment of this Act and each year thereafter, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the progress made by the Department of Defense and 
the military departments toward achieving the goal established 
in subsection (a).
    (d) Definitions.--In this section:
            (1) The term ``major defense acquisition program'' 
        has the meaning given such term in section 2430(a) of 
        title 10, United States Code.
            (2) The term ``major automated information system 
        program'' has the meaning given such term in section 
        2445a(a) of title 10, United States Code (as added by 
        section 816 of this Act).

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

SEC. 831. ONE-YEAR EXTENSION OF SPECIAL TEMPORARY CONTRACT CLOSEOUT 
                    AUTHORITY.

    Section 804(d) of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1542) is 
amended by striking ``September 30, 2006'' and inserting 
``September 30, 2007''.

SEC. 832. LIMITATION ON CONTRACTS FOR THE ACQUISITION OF CERTAIN 
                    SERVICES.

    (a) Limitation.--Except as provided in subsection (b), the 
Secretary of Defense may not enter into a service contract to 
acquire a military flight simulator.
    (b) Waiver.--The Secretary of Defense may waive subsection 
(a) with respect to a contract if the Secretary--
            (1) determines that a waiver is necessary for 
        national security purposes; and
            (2) provides to the congressional defense 
        committees an economic analysis as described in 
        subsection (c) at least 30 days before the waiver takes 
        effect.
    (c) Economic Analysis.--The economic analysis provided 
under subsection (b) shall include, at a minimum, the 
following:
            (1) A clear explanation of the need for the 
        contract.
            (2) An examination of at least two alternatives for 
        fulfilling the requirements that the contract is meant 
        to fulfill, including the following with respect to 
        each alternative:
                    (A) A rationale for including the 
                alternative.
                    (B) A cost estimate of the alternative and 
                an analysis of the quality of each cost 
                estimate.
                    (C) A discussion of the benefits to be 
                realized from the alternative.
                    (D) A best value determination of each 
                alternative and a detailed explanation of the 
                life-cycle cost calculations used in the 
                determination.
    (d) Definitions.--In this section:
            (1) The term ``military flight simulator'' means 
        any major system to simulate the form, fit, and 
        function of a military aircraft that has no commonly 
        available commercial variant.
            (2) The term ``service contract'' means any 
        contract entered into by the Department of Defense the 
        principal purpose of which is to furnish services in 
        the United States through the use of service employees.
            (3) The term ``service employees'' has the meaning 
        provided in section 8(b) of the Service Contract Act of 
        1965 (41 U.S.C. 357(b)).

SEC. 833. USE OF FEDERAL SUPPLY SCHEDULES BY STATE AND LOCAL 
                    GOVERNMENTS FOR GOODS AND SERVICES FOR RECOVERY 
                    FROM NATURAL DISASTERS, TERRORISM, OR NUCLEAR, 
                    BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

    (a) Authority To Use Supply Schedules for Certain Goods and 
Services.--Section 502 of title 40, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Use of Supply Schedules for Certain Goods and 
Services.--
            ``(1) In general.--The Administrator may provide 
        for the use by State or local governments of Federal 
        supply schedules of the General Services Administration 
        for goods or services that are to be used to facilitate 
        recovery from a major disaster declared by the 
        President under the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
        or to facilitate recovery from terrorism or nuclear, 
        biological, chemical, or radiological attack.
            ``(2) Determination by secretary of homeland 
        security.--The Secretary of Homeland Security shall 
        determine which goods and services qualify as goods and 
        services described in paragraph (1) before the 
        Administrator provides for the use of the Federal 
        supply schedule relating to such goods and services.
            ``(3) Voluntary use.--In the case of the use by a 
        State or local government of a Federal supply schedule 
        pursuant to paragraph (1), participation by a firm that 
        sells to the Federal Government through the supply 
        schedule shall be voluntary with respect to a sale to 
        the State or local government through such supply 
        schedule.
            ``(4) Definitions.--The definitions in subsection 
        (c)(3) shall apply for purposes of this subsection.''.
    (b) Procedures.--Not later than 30 days after the date of 
the enactment of this Act, the Administrator of General 
Services shall establish procedures to implement subsection (d) 
of section 502 of title 40, United States Code (as added by 
subsection (a)).

SEC. 834. WAIVERS TO EXTEND TASK ORDER CONTRACTS FOR ADVISORY AND 
                    ASSISTANCE SERVICES.

     (a) Defense Contracts.--
            (1) Waiver authority.--The head of an agency may 
        issue a waiver to extend a task order contract entered 
        into under section 2304b of title 10, United States 
        Code, for a period not exceeding 10 years, through five 
        one-year options, if the head of the agency determines 
        in writing--
                    (A) that the contract provides engineering 
                or technical services of such a unique and 
                substantial technical nature that award of a 
                new contract would be harmful to the continuity 
                of the program for which the services are 
                performed;
                    (B) that award of a new contract would 
                create a large disruption in services provided 
                to the Department of Defense; and
                    (C) that the Department of Defense would, 
                through award of a new contract, endure program 
                risk during critical program stages due to loss 
                of program corporate knowledge of ongoing 
                program activities.
            (2) Delegation.--The authority of the head of an 
        agency under paragraph (1) may be delegated only to the 
        senior procurement executive of the agency.
            (3) Report.--Not later than April 1, 2007, the 
        Secretary of Defense shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on advisory and assistance 
        services. The report shall include the following 
        information:
                    (A) The methods used by the Department of 
                Defense to identify a contract as an advisory 
                and assistance services contract, as defined in 
                section 2304b of title 10, United States Code.
                    (B) The number of such contracts awarded by 
                the Department during the five-year period 
                preceding the date of the enactment of this 
                Act.
                    (C) The average annual expenditures by the 
                Department for such contracts.
                    (D) The average length of such contracts.
                    (E) The number of such contracts recompeted 
                and awarded to the previous award winner.
            (4) Prohibition on use of authority by department 
        of defense if report not submitted.--The head of an 
        agency may not issue a waiver under paragraph (1) if 
        the report required by paragraph (3) is not submitted 
        by the date set forth in that paragraph.
    (b) Civilian Agency Contracts.--
            (1) Waiver authority.--The head of an executive 
        agency may issue a waiver to extend a task order 
        contract entered into under section 303I of the Federal 
        Property and Administrative Services Act of 1949 (41 
        U.S.C. 253i) for a period not exceeding 10 years, 
        through five one-year options, if the head of the 
        agency determines in writing--
                    (A) that the contract provides engineering 
                or technical services of such a unique and 
                substantial technical nature that award of a 
                new contract would be harmful to the continuity 
                of the program for which the services are 
                performed;
                    (B) that award of a new contract would 
                create a large disruption in services provided 
                to the executive agency; and
                    (C) that the executive agency would, 
                through award of a new contract, endure program 
                risk during critical program stages due to loss 
                of program corporate knowledge of ongoing 
                program activities.
            (2) Delegation.--The authority of the head of an 
        executive agency under paragraph (1) may be delegated 
        only to the Chief Acquisition Officer of the agency (or 
        the senior procurement executive in the case of an 
        agency for which a Chief Acquisition Officer has not 
        been appointed or designated under section 16(a) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 
        414(a))).
            (3) Report.--Not later than April 1, 2007, the 
        Administrator for Federal Procurement Policy shall 
        submit to the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Government Reform of the House of Representatives a 
        report on advisory and assistance services. The report 
        shall include the following information:
                    (A) The methods used by executive agencies 
                to identify a contract as an advisory and 
                assistance services contract, as defined in 
                section 303I(i) of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 
                253i(i)).
                    (B) The number of such contracts awarded by 
                each executive agency during the five-year 
                period preceding the date of the enactment of 
                this Act.
                    (C) The average annual expenditures by each 
                executive agency for such contracts.
                    (D) The average length of such contracts.
                    (E) The number of such contracts recompeted 
                and awarded to the previous award winner.
            (4) Prohibition on use of authority by executive 
        agencies if report not submitted.--The head of an 
        executive agency may not issue a waiver under paragraph 
        (1) if the report required by paragraph (3) is not 
        submitted by the date set forth in that paragraph.
    (c) Termination of Authority.--A waiver may not be issued 
under this section after December 31, 2011.
    (d) Comptroller General Review.--
            (1) Report requirement.--Not later than one year 
        after the date of the enactment of this Act, the 
        Comptroller General shall submit to the committees 
        described in paragraph (3) a report on the use of 
        advisory and assistance services contracts by the 
        Federal Government.
            (2) Defense and civilian agency contracts 
        covered.--The report shall cover both of the following:
                    (A) Advisory and assistance services 
                contracts as defined in section 2304b of title 
                10, United States Code.
                    (B) Advisory and assistance services 
                contracts as defined in section 303I(i) of the 
                Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 253i(i)).
            (3) Matters covered.--The report shall address the 
        following issues:
                    (A) The extent to which executive agencies 
                and elements of the Department of Defense 
                require advisory and assistance services for 
                periods of greater than five years.
                    (B) The extent to which such advisory and 
                assistance services are provided by the same 
                contractors under recurring contracts.
                    (C) The rationale for contracting for 
                advisory and assistance services that will be 
                needed on a continuing basis, rather than 
                performing the services inside the Federal 
                Government.
                    (D) The contract types and oversight 
                mechanisms used by the Federal Government in 
                contracts for advisory and assistance services 
                and the extent to which such contract types and 
                oversight mechanisms are adequate to protect 
                the interests of the Government and taxpayers.
                    (E) The actions taken by the Federal 
                Government to prevent organizational conflicts 
                of interest and improper personal services 
                contracts in its contracts for advisory and 
                assistance services.
            (4) Committees.--The committees described in this 
        paragraph are the following:
                    (A) The Committees on Armed Services and on 
                Homeland Security and Governmental Affairs of 
                the Senate.
                    (B) The Committees on Armed Services and on 
                Government Reform of the House of 
                Representatives.

      Subtitle D--United States Defense Industrial Base Provisions

SEC. 841. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE 
                    INDUSTRIAL BASE CAPABILITIES AND ACQUISITIONS OF 
                    ARTICLES, MATERIALS, AND SUPPLIES MANUFACTURED 
                    OUTSIDE THE UNITED STATES.

    Section 812 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1542) is 
amended--
            (1) by amending the heading to read as follows:

``SEC. 812. ASSESSMENT AND ANNUAL REPORT OF UNITED STATES DEFENSE 
                    INDUSTRIAL BASE CAPABILITIES AND ACQUISITIONS OF 
                    ARTICLES, MATERIALS, AND SUPPLIES MANUFACTURED 
                    OUTSIDE THE UNITED STATES.'';

            (2) by adding at the end of subsection (c)(2)(A) 
        the following new clauses:
            ``(v) The dollar value of any articles, materials, 
        or supplies purchased that were manufactured outside of 
        the United States.
            ``(vi) An itemized list of all waivers granted with 
        respect to such articles, materials, or supplies under 
        the Buy American Act (41 U.S.C. 10a et seq.).
            ``(vii) A summary of--
                    ``(I) the total procurement funds expended 
                on articles, materials, and supplies 
                manufactured inside the United States; and
                    ``(II) the total procurement funds expended 
                on articles, materials, and supplies 
                manufactured outside the United States.''; and
            (3) by adding at the end the following new 
        subsections:
    ``(d) Public Availability.--The Secretary of Defense shall 
make the report submitted under subsection (c) publicly 
available to the maximum extent practicable.
    ``(e) Applicability.--This section shall not apply to 
acquisitions made by an agency, or component thereof, that is 
an element of the intelligence community as set forth in or 
designated under section 3(4) of the National Security Act of 
1947 (50 U.S.C. 401a(4)).''.

SEC. 842. PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL 
                    SECURITY.

    (a) Requirement to Buy From American Sources.--
            (1) In general.--Subchapter V of chapter 148 of 
        title 10, United States Code, is amended by inserting 
        after section 2533a the following new section:

``Sec. 2533b. Requirement to buy strategic materials critical to 
                    national security from American sources; exceptions

    ``(a) Requirement.--Except as provided in subsections (b) 
through (j), funds appropriated or otherwise available to the 
Department of Defense may not be used for procurement of--
            ``(1) the following types of end items, or 
        components thereof, containing a specialty metal not 
        melted or produced in the United States: aircraft, 
        missile and space systems, ships, tank and automotive 
        items, weapon systems, or ammunition; or
            ``(2) a specialty metal that is not melted or 
        produced in the United States and that is to be 
        purchased directly by the Department of Defense or a 
        prime contractor of the Department.
    ``(b) Availability Exception.--(1) Subsection (a) does not 
apply to the extent that the Secretary of Defense or the 
Secretary of the military department concerned determines that 
compliant specialty metal of satisfactory quality and 
sufficient quantity, and in the required form, cannot be 
procured as and when needed. For purposes of the preceding 
sentence, the term `compliant specialty metal' means specialty 
metal melted or produced in the United States.
    ``(2) This subsection applies to prime contracts and 
subcontracts at any tier under such contracts.
    ``(c) Exception for Certain Procurements.--Subsection (a) 
does not apply to the following:
            ``(1) Procurements outside the United States in 
        support of combat operations or in support of 
        contingency operations.
            ``(2) Procurements for which the use of procedures 
        other than competitive procedures has been approved on 
        the basis of section 2304(c)(2) of this title, relating 
        to unusual and compelling urgency of need.
    ``(d) Exception Relating to Agreements With Foreign 
Governments.--Subsection (a)(1) does not preclude the 
procurement of a specialty metal if--
            ``(1) the procurement is necessary--
                    ``(A) to comply with agreements with 
                foreign governments requiring the United States 
                to purchase supplies from foreign sources for 
                the purposes of offsetting sales made by the 
                United States Government or United States firms 
                under approved programs serving defense 
                requirements; or
                    ``(B) in furtherance of agreements with 
                foreign governments in which both such 
                governments agree to remove barriers to 
                purchases of supplies produced in the other 
                country or services performed by sources of the 
                other country; and
            ``(2) any such agreement with a foreign government 
        complies, where applicable, with the requirements of 
        section 36 of the Arms Export Control Act (22 U.S.C. 
        2776) and with section 2457 of this title.
    ``(e) Exception for Commissaries, Exchanges, and Other 
Nonappropriated Fund Instrumentalities.--Subsection (a) does 
not apply to items purchased for resale purposes in 
commissaries, exchanges, and nonappropriated fund 
instrumentalities operated by the Department of Defense.
    ``(f) Exception for Small Purchases.--Subsection (a) does 
not apply to procurements in amounts not greater than the 
simplified acquisition threshold referred to in section 2304(g) 
of this title.
    ``(g) Exception for Purchases of Electronic Components.--
Subsection (a) does not apply to procurements of commercially 
available electronic components whose specialty metal content 
is de minimis in value compared to the overall value of the 
lowest level electronic component produced that contains such 
specialty metal.
    ``(h) Applicability to Procurements of Commercial Items.--
This section applies to procurements of commercial items 
notwithstanding section 34 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 430).
    ``(i) Specialty Metal Defined.--In this section, the term 
`specialty metal' means any of the following:
            ``(1) Steel--
                    ``(A) with a maximum alloy content 
                exceeding one or more of the following limits: 
                manganese, 1.65 percent; silicon, 0.60 percent; 
                or copper, 0.60 percent; or
                    ``(B) containing more than 0.25 percent of 
                any of the following elements: aluminum, 
                chromium, cobalt, columbium, molybdenum, 
                nickel, titanium, tungsten, or vanadium.
            ``(2) Metal alloys consisting of nickel, iron-
        nickel, and cobalt base alloys containing a total of 
        other alloying metals (except iron) in excess of 10 
        percent.
            ``(3) Titanium and titanium alloys.
            ``(4) Zirconium and zirconium base alloys.
    ``(j) Additional Definitions.--In this section:
            ``(1) The term `United States' includes possessions 
        of the United States.
            ``(2) The term `component' has the meaning provided 
        in section 4 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403).''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such subchapter is amended by adding 
        at the end the following new item:

``2533b. Requirement to buy strategic materials critical to national 
          security from American sources; exceptions.''.

            (3) Conforming amendments.--Section 2533a of title 
        10, United States Code, is amended--
                    (A) by striking paragraph (2) of subsection 
                (b) and redesignating paragraph (3) of such 
                subsection as paragraph (2);
                    (B) in subsection (c), by striking ``or 
                specialty metals (including stainless steel 
                flatware)''; and
                    (C) in subsection (e)--
                            (i) by striking ``Specialty Metals 
                        and'' in the heading; and
                            (ii) by striking ``specialty metals 
                        or''.
            (4) Effective dates.--
                    (A) Section 2533b of title 10, United 
                States Code, as added by paragraph (1), shall 
                apply with respect to contracts entered into 
                after the date occurring 30 days after the date 
                of the enactment of this Act.
                    (B) The amendments made by paragraph (3) 
                shall take effect on the date occurring 30 days 
                after the date of the enactment of this Act.
    (b) One-Time Waiver of Specialty Metals Domestic Source 
Requirement.--
            (1) Authority.--The Secretary of Defense or the 
        Secretary of a military department may accept specialty 
        metals if such metals were incorporated into items 
        produced, manufactured, or assembled in the United 
        States before the date of the enactment of this Act 
        with respect to which the contracting officer for the 
        contract determines that the contractor is not in 
        compliance with section 2533b of title 10, United 
        States Code (as added by subsection (a)(1)), if--
                    (A) the contracting officer for the 
                contract determines in writing that--
                            (i) it would not be practical or 
                        economical to remove or replace the 
                        specialty metals incorporated in such 
                        items or to substitute items containing 
                        compliant materials;
                            (ii) the prime contractor and 
                        subcontractor responsible for providing 
                        items containing non-compliant 
                        materials have in place an effective 
                        plan to ensure compliance with section 
                        2533b of title 10, United States Code 
                        (as so added), with regard to items 
                        containing specialty metals if such 
                        metals were incorporated into items 
                        produced, manufactured, or assembled in 
                        the United States after the date of the 
                        enactment of this Act; and
                            (iii) the non-compliance is not 
                        knowing or willful; and
                    (B) the Under Secretary of Defense for 
                Acquisition, Technology, and Logistics or the 
                service acquisition executive of the military 
                department concerned approves the 
                determination.
            (2) Notice.--Not later than 15 days after a 
        contracting officer makes a determination under 
        paragraph (1)(A) with respect to a contract, the 
        contracting officer shall post a notice on 
        FedBizOpps.gov that a waiver has been granted for the 
        contract under this subsection.
            (3) Definition.--In this subsection, the term 
        ``FedBizOpps.gov'' means the website maintained by the 
        General Services Administration known as FedBizOpps.gov 
        (or any successor site).
            (4) Termination of authority.--A contracting 
        officer may exercise the authority under this 
        subsection only with respect to the delivery of items 
        the final acceptance of which takes place after the 
        date of the enactment of this Act and before September 
        30, 2010.

SEC. 843. STRATEGIC MATERIALS PROTECTION BOARD.

    (a) In General.--Chapter 7 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 187. Strategic Materials Protection Board

    ``(a) Establishment.--(1) The Secretary of Defense shall 
establish a Strategic Materials Protection Board.
    ``(2) The Board shall be composed of representatives of the 
following:
            ``(A) The Secretary of Defense, who shall be the 
        chairman of the Board.
            ``(B) The Under Secretary of Defense for 
        Acquisition, Technology, and Logistics.
            ``(C) The Under Secretary of Defense for 
        Intelligence.
            ``(D) The Secretary of the Army.
            ``(E) The Secretary of the Navy.
            ``(F) The Secretary of the Air Force.
    ``(b) Duties.--In addition to other matters assigned to it 
by the Secretary of Defense, the Board shall--
            ``(1) determine the need to provide a long term 
        domestic supply of materials designated as critical to 
        national security to ensure that national defense needs 
        are met;
            ``(2) analyze the risk associated with each 
        material designated as critical to national security 
        and the effect on national defense that the 
        nonavailability of such material from a domestic source 
        would have;
            ``(3) recommend a strategy to the President to 
        ensure the domestic availability of materials 
        designated as critical to national security;
            ``(4) recommend such other strategies to the 
        President as the Board considers appropriate to 
        strengthen the industrial base with respect to 
        materials critical to national security; and
            ``(5) publish not less frequently than once every 
        two years in the Federal Register recommendations 
        regarding materials critical to national security, 
        including a list of specialty metals, if any, 
        recommended for addition to, or removal from, the 
        definition of `specialty metal' for purposes of section 
        2533b of this title.
    ``(c) Meetings.--The Board shall meet as determined 
necessary by the Secretary of Defense but not less frequently 
than once every two years to make recommendations regarding 
materials critical to national security as described in 
subsection (b)(5).
    ``(d) Reports.--After each meeting of the Board, the Board 
shall prepare and submit to Congress a report containing the 
results of the meeting and such recommendations as the Board 
determines appropriate.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``187. Strategic Materials Protection Board.''.

    (c) First Meeting of Board.--The first meeting of the 
Strategic Materials Protection Board, established by section 
187 of title 10, United States Code (as added by subsection 
(a)) shall be not later than 180 days after the date of the 
enactment of this Act.

                       Subtitle E--Other Matters

SEC. 851. REPORT ON FORMER DEPARTMENT OF DEFENSE OFFICIALS EMPLOYED BY 
                    CONTRACTORS OF THE DEPARTMENT OF DEFENSE.

    (a) Report Required.--Not later than December 1, 2007, the 
Comptroller General shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on 
the employment of former officials of the Department of Defense 
by major defense contractors during the most recent calendar 
year for which, in the judgment of the Comptroller General, 
data are reasonably available. The report shall assess the 
extent to which former officials of the Department of Defense 
who served in acquisition-related positions were provided 
compensation by major defense contractors during such calendar 
year.
    (b) Objectives of Report.--The objectives of the report 
required by subsection (a) shall be to determine the 
effectiveness of existing statutes and regulations governing 
the employment of former Department of Defense officials by 
defense contractors, including section 207 of title 18, United 
States Code, and section 27 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 423). At a minimum, the 
report shall assess the extent to which such former officials 
who receive compensation from defense contractors have been 
assigned by those contractors to work on--
            (1) Department of Defense contracts or programs for 
        which such former officials personally had program 
        oversight responsibility or decision-making authority 
        when they served in the Department of Defense; or
            (2) Department of Defense contracts or programs 
        which are the responsibility of the agency, office, or 
        command in which such former officials served in the 
        Department of Defense.
    (c) Confidentiality Requirement.--The report required by 
subsection (a) shall not include the names of specific former 
Department of Defense officials who receive compensation from 
defense contractors or information from which such individuals 
could be identified.
    (d) Access to Information.--In accordance with the contract 
clause required pursuant to section 2313(c) of title 10, United 
States Code, a major defense contractor shall provide the 
Comptroller General access to information requested by the 
Comptroller General for the purpose of this review regarding 
former officials of the Department of Defense who have received 
compensation from the contractor during the relevant calendar 
year.
    (e) Definitions.--In this section:
            (1) Major defense contractor.--The term ``major 
        defense contractor'' includes any company that received 
        more than $500,000,000 in contract awards from the 
        Department of Defense in fiscal year 2005.
            (2) Former department of defense official.--The 
        term ``former Department of Defense official'' means 
        either of the following:
                    (A) A former Department of Defense 
                employee.
                    (B) A former or retired member of the Armed 
                Forces.

SEC. 852. REPORT AND REGULATIONS ON EXCESSIVE PASS-THROUGH CHARGES.

    (a) Comptroller General Report on Excessive Pass-Through 
Charges.--
            (1) In general.--Not later than 180 days after the 
        date of the enactment of this Act, the Comptroller 
        General shall issue a report on pass-through charges on 
        contracts or subcontracts (or task or delivery orders) 
        that are entered into for or on behalf of the 
        Department of Defense.
            (2) Matters covered.--The report issued under this 
        subsection--
                    (A) shall assess the extent to which the 
                Department of Defense has paid excessive pass-
                through charges to contractors who provided 
                little or no value to the performance of the 
                contract;
                    (B) shall assess the extent to which the 
                Department has been particularly vulnerable to 
                excessive pass-through charges on any specific 
                category of contracts or by any specific 
                category of contractors (including any category 
                of small business); and
                    (C) shall determine the extent to which any 
                prohibition on excessive pass-through charges 
                would be inconsistent with existing commercial 
                practices for any specific category of 
                contracts or have an unjustified adverse effect 
                on any specific category of contractors 
                (including any category of small business).
    (b) Regulations Required.--
            (1) In general.--Not later than May 1, 2007, the 
        Secretary of Defense shall prescribe regulations to 
        ensure that pass-through charges on contracts or 
        subcontracts (or task or delivery orders) that are 
        entered into for or on behalf of the Department of 
        Defense are not excessive in relation to the cost of 
        work performed by the relevant contractor or 
        subcontractor.
            (2) Scope of regulations.--The regulations 
        prescribed under this subsection--
                    (A) shall not apply to any firm, fixed-
                price contract or subcontract (or task or 
                delivery order) that is--
                            (i) awarded on the basis of 
                        adequate price competition; or
                            (ii) for the acquisition of a 
                        commercial item, as defined in section 
                        4(12) of the Office of Federal 
                        Procurement Policy Act (41 U.S.C. 
                        403(12)); and
                    (B) may include such additional exceptions 
                as the Secretary determines to be necessary in 
                the interest of the national defense.
            (3) Definition.--In this section, the term 
        ``excessive pass-through charge'', with respect to a 
        contractor or subcontractor that adds no, or 
        negligible, value to a contract or subcontract, means a 
        charge to the Government by the contractor or 
        subcontractor that is for overhead or profit on work 
        performed by a lower-tier contractor or subcontractor 
        (other than charges for the direct costs of managing 
        lower-tier contracts and subcontracts and overhead and 
        profit based on such direct costs).
            (4) Report.--Not later than one year after the date 
        of the enactment of this Act, the Secretary of Defense 
        shall submit to the congressional defense committees a 
        report on the steps taken to implement the requirements 
        of this subsection, including--
                    (A) any standards for determining when no, 
                or negligible, value has been added to a 
                contract by a contractor or subcontractor;
                    (B) any procedures established for 
                preventing excessive pass-through charges; and
                    (C) any exceptions determined by the 
                Secretary to be necessary in the interest of 
                the national defense.
            (5) Effective date.--The regulations prescribed 
        under this subsection shall apply to contracts awarded 
        for or on behalf of the Department of Defense on or 
        after May 1, 2007.

SEC. 853. PROGRAM MANAGER EMPOWERMENT AND ACCOUNTABILITY.

    (a) Strategy.--The Secretary of Defense shall develop a 
comprehensive strategy for enhancing the role of Department of 
Defense program managers in developing and carrying out defense 
acquisition programs.
    (b) Matters To Be Addressed.--The strategy required by this 
section shall address, at a minimum--
            (1) enhanced training and educational opportunities 
        for program managers;
            (2) increased emphasis on the mentoring of current 
        and future program managers by experienced senior 
        executives and program managers within the Department;
            (3) improved career paths and career opportunities 
        for program managers;
            (4) additional incentives for the recruitment and 
        retention of highly qualified individuals to serve as 
        program managers;
            (5) improved resources and support (including 
        systems engineering expertise, cost estimating 
        expertise, and software development expertise) for 
        program managers;
            (6) improved means of collecting and disseminating 
        best practices and lessons learned to enhance program 
        management throughout the Department;
            (7) common templates and tools to support improved 
        data gathering and analysis for program management and 
        oversight purposes;
            (8) increased accountability of program managers 
        for the results of defense acquisition programs; and
            (9) enhanced monetary and nonmonetary awards for 
        successful accomplishment of program objectives by 
        program managers.
    (c) Guidance on Tenure and Accountability of Program 
Managers Before Milestone B.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall revise Department of Defense guidance for major defense 
acquisition programs to address the qualifications, resources, 
responsibilities, tenure, and accountability of program 
managers for the program development period (before Milestone B 
approval (or Key Decision Point B approval in the case of a 
space program)).
    (d) Guidance on Tenure and Accountability of Program 
Managers After Milestone B.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of Defense shall 
revise Department of Defense guidance for major defense 
acquisition programs to address the qualifications, resources, 
responsibilities, tenure and accountability of program managers 
for the program execution period (from Milestone B approval (or 
Key Decision Point B approval in the case of a space program) 
until the delivery of the first production units of a program). 
The guidance issued pursuant to this subsection shall address, 
at a minimum--
            (1) the need for a performance agreement between a 
        program manager and the milestone decision authority 
        for the program, setting forth expected parameters for 
        cost, schedule, and performance, and appropriate 
        commitments by the program manager and the milestone 
        decision authority to ensure that such parameters are 
        met;
            (2) authorities available to the program manager, 
        including, to the extent appropriate, the authority to 
        object to the addition of new program requirements that 
        would be inconsistent with the parameters established 
        at Milestone B (or Key Decision Point B in the case of 
        a space program) and reflected in the performance 
        agreement; and
            (3) the extent to which a program manager for such 
        period should continue in the position without 
        interruption until the delivery of the first production 
        units of the program.
    (e) Reports.--
            (1) Report by secretary of defense.--Not later than 
        270 days after the date of enactment of this Act, the 
        Secretary of Defense shall submit to the congressional 
        defense committees a report on the strategy developed 
        pursuant to subsection (a) and the guidance issued 
        pursuant to subsections (b) and (c).
            (2) Report by comptroller general.--Not later than 
        one year after the date of enactment of this Act, the 
        Comptroller General shall submit to the congressional 
        defense committees a report on the actions taken by the 
        Secretary of Defense to implement the requirements of 
        this section.

SEC. 854. JOINT POLICIES ON REQUIREMENTS DEFINITION, CONTINGENCY 
                    PROGRAM MANAGEMENT, AND CONTINGENCY CONTRACTING.

    (a) In General.--
            (1) Joint policy requirement.--Chapter 137 of title 
        10, United States Code, is amended by adding at the end 
        the following new section:

``Sec. 2333. Joint policies on requirements definition, contingency 
                    program management, and contingency contracting

    ``(a) Joint Policy Requirement.--The Secretary of Defense, 
in consultation with the Chairman of the Joint Chiefs of Staff, 
shall develop joint policies for requirements definition, 
contingency program management, and contingency contracting 
during combat operations and post-conflict operations.
    ``(b) Requirements Definition Matters Covered.--The joint 
policy for requirements definition required by subsection (a) 
shall, at a minimum, provide for the following:
            ``(1) The assignment of a senior commissioned 
        officer or civilian member of the senior executive 
        service, with appropriate experience and qualifications 
        related to the definition of requirements to be 
        satisfied through acquisition contracts (such as for 
        delivery of products or services, performance of work, 
        or accomplishment of a project), to act as head of 
        requirements definition and coordination during combat 
        operations, post-conflict operations, and contingency 
        operations, if required, including leading a 
        requirements review board involving all organizations 
        concerned.
            ``(2) An organizational approach to requirements 
        definition and coordination during combat operations, 
        post-conflict operations, and contingency operations 
        that is designed to ensure that requirements are 
        defined in a way that effectively implements United 
        States Government and Department of Defense objectives, 
        policies, and decisions regarding the allocation of 
        resources, coordination of interagency efforts in the 
        theater of operations, and alignment of requirements 
        with the proper use of funds.
    ``(c) Contingency Program Management Matters Covered.--The 
joint policy for contingency program management required by 
subsection (a) shall, at a minimum, provide for the following:
            ``(1) The assignment of a senior commissioned 
        officer or civilian member of the senior executive 
        service, with appropriate program management experience 
        and qualifications, to act as head of program 
        management during combat operations, post-conflict 
        operations, and contingency operations, including 
        stabilization and reconstruction operations involving 
        multiple United States Government agencies and 
        international organizations, if required.
            ``(2) A preplanned organizational approach to 
        program management during combat operations, post-
        conflict operations, and contingency operations that is 
        designed to ensure that the Department of Defense is 
        prepared to conduct such program management.
            ``(3) Identification of a deployable cadre of 
        experts, with the appropriate tools and authority, and 
        trained in processes under paragraph (6).
            ``(4) Utilization of the hiring and appointment 
        authorities necessary for the rapid deployment of 
        personnel to ensure the availability of key personnel 
        for sufficient lengths of time to provide for 
        continuing program and project management.
            ``(5) A requirement to provide training (including 
        training under a program to be created by the Defense 
        Acquisition University) to program management personnel 
        in--
                    ``(A) the use of laws, regulations, 
                policies, and directives related to program 
                management in combat or contingency 
                environments;
                    ``(B) the integration of cost, schedule, 
                and performance objectives into practical 
                acquisition strategies aligned with available 
                resources and subject to effective oversight; 
                and
                    ``(C) procedures of the Department of 
                Defense related to funding mechanisms and 
                contingency contract management.
            ``(6) Appropriate steps to ensure that training is 
        maintained for such personnel even when they are not 
        deployed in a contingency operation.
            ``(7) Such steps as may be needed to ensure 
        jointness and cross-service coordination in the area of 
        program management during contingency operations.
    ``(d) Contingency Contracting Matters Covered.--(1) The 
joint policy for contingency contracting required by subsection 
(a) shall, at a minimum, provide for the following:
            ``(A) The designation of a senior commissioned 
        officer or civilian member of the senior executive 
        service in each military department with the 
        responsibility for administering the policy.
            ``(B) The assignment of a senior commissioned 
        officer with appropriate acquisition experience and 
        qualifications to act as head of contingency 
        contracting during combat operations, post-conflict 
        operations, and contingency operations, who shall 
        report directly to the commander of the combatant 
        command in whose area of responsibility the operations 
        occur.
            ``(C) A sourcing approach to contingency 
        contracting that is designed to ensure that each 
        military department is prepared to conduct contingency 
        contracting during combat operations, post-conflict 
        operations, and contingency operations, including 
        stabilization and reconstruction operations involving 
        interagency organizations, if required.
            ``(D) A requirement to provide training (including 
        training under a program to be created by the Defense 
        Acquisition University) to contingency contracting 
        personnel in--
                    ``(i) the use of law, regulations, 
                policies, and directives related to contingency 
                contracting operations;
                    ``(ii) the appropriate use of rapid 
                acquisition methods, including the use of 
                exceptions to competition requirements under 
                section 2304 of this title, sealed bidding, 
                letter contracts, indefinite delivery 
                indefinite quantity task orders, set asides 
                under section 8(a) of the Small Business Act 
                (15 U.S.C. 637(a)), undefinitized contract 
                actions, and other tools available to expedite 
                the delivery of goods and services during 
                combat operations or post-conflict operations;
                    ``(iii) the appropriate use of rapid 
                acquisition authority, commanders' emergency 
                response program funds, and other tools unique 
                to contingency contracting; and
                    ``(iv) instruction on the necessity for the 
                prompt transition from the use of rapid 
                acquisition authority to the use of full and 
                open competition and other methods of 
                contracting that maximize transparency in the 
                acquisition process.
            ``(E) Appropriate steps to ensure that training is 
        maintained for such personnel even when they are not 
        deployed in a contingency operation.
            ``(F) Such steps as may be needed to ensure 
        jointness and cross-service coordination in the area of 
        contingency contracting.
    ``(2) To the extent practicable, the joint policy for 
contingency contracting required by subsection (a) should be 
taken into account in the development of interagency plans for 
stabilization and reconstruction operations, consistent with 
the report submitted by the President under section 1035 of 
this Act on interagency operating procedures for the planning 
and conduct of stabilization and reconstruction operations.
    ``(e) Definitions.--In this section:
            ``(1) Contingency contracting personnel.--The term 
        `contingency contracting personnel' means members of 
        the armed forces and civilian employees of the 
        Department of Defense who are members of the defense 
        acquisition workforce and, as part of their duties, are 
        assigned to provide support to contingency operations 
        (whether deployed or not).
            ``(2) Contingency contracting.--The term 
        `contingency contracting' means all stages of the 
        process of acquiring property or services by the 
        Department of Defense during a contingency operation.
            ``(3) Contingency operation.--The term `contingency 
        operation' has the meaning provided in section 101(13) 
        of this title.
            ``(4) Acquisition support agencies.--The term 
        `acquisition support agencies' means Defense Agencies 
        and Department of Defense Field Activities that carry 
        out and provide support for acquisition-related 
        activities.
            ``(5) Contingency program management.--The term 
        `contingency program management' means the process of 
        planning, organizing, staffing, controlling, and 
        leading the combined efforts of participating civilian 
        and military personnel and organizations for the 
        management of a specific defense acquisition program or 
        programs during combat operations, post-conflict 
        operations, and contingency operations.
            ``(6) Requirements definition.--The term 
        `requirements definition' means the process of 
        translating policy objectives and mission needs into 
        specific requirements, the description of which will be 
        the basis for awarding acquisition contracts for 
        projects to be accomplished, work to be performed, or 
        products to be delivered.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by adding at 
        the end the following new item:

``2333. Joint policies on requirements definition, contingency 
          contracting, and program management.''.

    (b) Deadline for Development of Joint Policies.--The 
Secretary of Defense shall develop the joint policies required 
under section 2333 of title 10, United States Code, as added by 
subsection (a), not later than 18 months after the date of 
enactment of this Act.
    (c) Reports.--
            (1) Interim report.--
                    (A) Requirement.--Not later than 365 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 
                the House of Representatives an interim report 
                on requirements definition, contingency 
                contracting, and program management.
                    (B) Matters covered.--The report shall 
                include discussions of the following:
                            (i) Progress in the development of 
                        the joint policies under section 2333 
                        of title 10, United States Code.
                            (ii) The ability of the Armed 
                        Forces to support requirements 
                        definition, contingency contracting, 
                        and program management.
                            (iii) The ability of commanders of 
                        combatant commands to request 
                        requirements definition, contingency 
                        contracting, or program management 
                        support, and the ability of the 
                        military departments and the 
                        acquisition support agencies to respond 
                        to such requests and provide such 
                        support, including the availability of 
                        rapid acquisition personnel for such 
                        support.
                            (iv) The ability of the current 
                        civilian and military acquisition 
                        workforce to deploy to combat theaters 
                        of operations and to conduct 
                        requirements definition, contingency 
                        contracting, or program management 
                        activities during combat and during 
                        post-conflict, reconstruction, or other 
                        contingency operations.
                            (v) The effect of different periods 
                        of deployment on continuity in the 
                        acquisition process.
            (2) Final report.--Not later than 18 months after 
        the date of the enactment of this Act, the Secretary of 
        Defense shall submit to the committees referred to in 
        paragraph (1)(A) a final report on requirements 
        definition, contingency contracting, and program 
        management, containing a discussion of the 
        implementation of the joint policies developed under 
        section 2333 of title 10, United States Code (as so 
        added), including updated discussions of the matters 
        covered in the interim report. In addition, the report 
        should include a discussion of the actions taken to 
        ensure that the joint policies will be adequately 
        resourced at the time of execution.

SEC. 855. CLARIFICATION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
                    PROJECTS.

    Section 845(a) of the National Defense Authorization Act 
for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) in paragraph (2)(A), by inserting ``or, for the 
        Defense Advanced Projects Agency or the Missile Defense 
        Agency, the director of the agency'' after ``(41 U.S.C. 
        414(c))''; and
            (2) in paragraph (3), by inserting ``or director of 
        the Defense Advanced Projects Agency or Missile Defense 
        Agency'' after ``executive''.

SEC. 856. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    (a) Inapplicability of Certain Laws.--
            (1) Inapplicability of the randolph-sheppard act to 
        contracts and subcontracts for military dining facility 
        support services covered by javits-wagner-o'day act.--
        The Randolph-Sheppard Act (20 U.S.C. 107 et seq.) does 
        not apply to full food services, mess attendant 
        services, or services supporting the operation of a 
        military dining facility that, as of the date of the 
        enactment of this Act, were services on the procurement 
        list established under section 2 of the Javits-Wagner-
        O'Day Act (41 U.S.C. 47).
            (2) Inapplicability of the javits-wagner-o'day act 
        to contracts for the operation of a military dining 
        facility.--(A) The Javits-Wagner-O'Day Act (41 U.S.C. 
        46 et seq.) does not apply at the prime contract level 
        to any contract entered into by the Department of 
        Defense as of the date of the enactment of this Act 
        with a State licensing agency under the Randolph-
        Sheppard Act (20 U.S.C. 107 et seq.) for the operation 
        of a military dining facility.
            (B) The Javits-Wagner-O'Day Act shall apply to any 
        subcontract entered into by a Department of Defense 
        contractor for full food services, mess attendant 
        services, and other services supporting the operation 
        of a military dining facility.
            (3) Repeal of superseded law.--Subsections (a) and 
        (b) of section 853 of the Ronald W. Reagan National 
        Defense Authorization Act for Fiscal Year 2005 (Public 
        Law 108-375; 118 Stat. 2021) are repealed.
    (b) Review and Report by Comptroller General of Randolph-
Sheppard and Javits-Wagner-O'Day Contracts.--
            (1) In general.--The Comptroller General shall 
        conduct a review of a representative sample of food 
        service contracts described in paragraph (2) and 
        determine in writing the following:
                    (A) Differences in operational procedures 
                and administration of contracts awarded by the 
                Department of Defense under the Randolph-
                Sheppard Act (20 U.S.C. 107 et seq.) and the 
                Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) 
                on a State-by-State basis with regard to the 
                relationship between State licensing agencies 
                and blind vendors.
                    (B) Differences in competition, source 
                selection, and management processes and 
                procedures for contracts awarded by the 
                Department under the Randolph-Sheppard Act and 
                the Javits-Wagner-O'Day Act, including a review 
                of the average total cost of contract awards 
                and compensation packages to all beneficiaries.
                    (C) Precise methods used to determine 
                whether a price is fair and reasonable under 
                contracts awarded by the Department under the 
                Randolph-Sheppard Act and the Javits-Wagner-
                O'Day Act, as required under the Federal 
                Acquisition Regulation and the Defense Federal 
                Acquisition Regulation Supplement.
            (2) Contracts covered.--For purposes of the review 
        under paragraph (1), a food service contract described 
        in this paragraph is a contract--
                    (A) for full food services, mess attendant 
                services, or services supporting the operation 
                of all or any part of a military dining 
                facility;
                    (B) that was awarded under either the 
                Randolph-Sheppard Act or the Javits-Wagner-
                O'Day Act; and
                    (C) that is in effect on the date of the 
                enactment of this Act.
            (3) Report.--Not later than March 1, 2007, the 
        Comptroller General shall submit to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives a report on the review conducted under 
        this subsection, with such findings and recommendations 
        as the Comptroller General considers appropriate.
    (c) Requirements for Inspectors General of Department of 
Defense and Department of Education.--
            (1) Review of management procedures.--Not later 
        than March 1, 2007, the Inspector General of the 
        Department of Defense and the Inspector General of the 
        Department of Education shall jointly review the 
        management procedures under both the Randolph-Sheppard 
        Act (20 U.S.C. 107 et seq.) and the Javits-Wagner-O'Day 
        Act (41 U.S.C. 46 et seq.). In carrying out this 
        paragraph, the Inspectors General shall each have 
        access to the following:
                    (A) Memoranda on program management and the 
                basis for contract award under the programs.
                    (B) Guidance sent to State agencies on 
                administration of the programs.
                    (C) Names of participating vendors, as well 
                as qualifying experience and educational 
                background of such vendors.
            (2) Memorandum of understanding between inspectors 
        general.--Not later than 60 days after the date of the 
        enactment of this Act, the Inspector General of the 
        Department of Defense and the Inspector General of the 
        Department of Education shall enter into a memorandum 
        of understanding with each other to carry out paragraph 
        (1).
            (3) Report.--Not later than one year after the date 
        of enactment of this Act, the Inspector General of the 
        Department of Defense and the Inspector General of the 
        Department of Education shall jointly submit to the 
        Committees on Armed Services of the Senate and the 
        House of Representatives a report on the review 
        required by paragraph (1). The report shall include--
                    (A) findings of the Inspectors General 
                regarding the management procedures reviewed; 
                and
                    (B) such other information and 
                recommendations as the Inspectors General 
                consider appropriate.
    (d) Definitions.--In this section:
            (1) The term ``State licensing agency'' means any 
        agency designated by the Secretary of Education under 
        section 2(a)(5) of the Randolph-Sheppard Act (20 U.S.C. 
        107a(a)(5)).
            (2) The term ``military dining facility'' means a 
        facility owned, operated, leased, or wholly controlled 
        by the Department of Defense and used to provide dining 
        services to members of the Armed Forces, including a 
        cafeteria, military mess hall, military troop dining 
        facility, or any similar dining facility operated for 
        the purpose of providing meals to members of the Armed 
        Forces.

SEC. 857. ENHANCED ACCESS FOR SMALL BUSINESS.

    Section 9(a) of the Contract Disputes Act of 1978 (41 
U.S.C. 608) is amended by striking the period at the end of the 
first sentence and inserting the following: ``or, in the case 
of a small business concern (as defined in the Small Business 
Act and regulations under that Act), $150,000 or less.''.

SEC. 858. PROCUREMENT GOAL FOR HISPANIC-SERVING INSTITUTIONS.

    Section 2323 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and'' at the end of 
                subparagraph (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) Hispanic-serving institutions (as 
                defined in section 502(a) of the Higher 
                Education Act of 1965 (20 U.S.C. 1101a(a)).'';
            (2) in subsection (a)(2)--
                    (A) by inserting after ``historically Black 
                colleges and universities'' the following: ``, 
                Hispanic-serving institutions,''; and
                    (B) by inserting after ``such colleges and 
                universities'' the following: ``and 
                institutions'';
            (3) in subsection (c)(1), by inserting after 
        ``historically Black colleges and universities'' the 
        following: ``, Hispanic-serving institutions,''; and
            (4) in subsection (c)(3), by inserting after 
        ``historically Black colleges and universities'' the 
        following: ``, to Hispanic-serving institutions,''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Increase in authorized number of Assistant Secretaries of 
          Defense.
Sec. 902. Modifications to the Combatant Commander Initiative Fund.
Sec. 903. Addition to membership of specified council.
Sec. 904. Consolidation and standardization of authorities relating to 
          Department of Defense Regional Centers for Security Studies.
Sec. 905. Oversight by Office of Under Secretary of Defense for 
          Acquisition, Technology, and Logistics of exercise of 
          acquisition authority by combatant commanders and heads of 
          Defense Agencies.
Sec. 906. Standardization of statutory references to ``national security 
          system'' within laws applicable to Department of Defense.
Sec. 907. Correction of reference to predecessor of Defense Information 
          Systems Agency.

                      Subtitle B--Space Activities

Sec. 911. Designation of successor organizations for the disestablished 
          Interagency Global Positioning Executive Board.
Sec. 912.  Extension of authority for pilot program for provision of 
          space surveillance network services to non-United States 
          Government entities.
Sec. 913. Operationally responsive space.
Sec. 914. Independent review and assessment of Department of Defense 
          organization and management for national security in space.

              Subtitle C--Chemical Demilitarization Program

Sec. 921. Sense of Congress on completion of destruction of United 
          States chemical weapons stockpile.
Sec. 922. Comptroller General review of cost-benefit analysis of off-
          site versus on-site treatment and disposal of hydrolysate 
          derived from neutralization of VX nerve gas at Newport 
          Chemical Depot, Indiana.
Sec. 923. Incentives clauses in chemical demilitarization contracts.
Sec. 924. Chemical demilitarization program contracting authority.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Four-year extension of authority of Secretary of Defense to 
          engage in commercial activities as security for intelligence 
          collection activities.
Sec. 932. Annual reports on intelligence oversight activities of the 
          Department of Defense.
Sec. 933. Collection by National Security Agency of service charges for 
          certification or validation of information assurance products.

                        Subtitle E--Other Matters

Sec. 941. Department of Defense policy on unmanned systems.
Sec. 942. Executive Schedule level IV for Deputy Under Secretary of 
          Defense for Logistics and Materiel Readiness.
Sec. 943. Study and report on reform of Defense Travel System.
Sec. 944. Administration of pilot project on Civilian Linguist Reserve 
          Corps.
Sec. 945. Improvement of authorities on the National Security Education 
          Program.
Sec. 946. Report on the posture of United States Special Operations 
          Command to conduct the global war on terrorism.

              Subtitle A--Department of Defense Management

SEC. 901. INCREASE IN AUTHORIZED NUMBER OF ASSISTANT SECRETARIES OF 
                    DEFENSE.

    (a) Increase.--Section 138(a) of title 10, United States 
Code, is amended by striking ``nine'' and inserting ``ten''.
    (b) Conforming Amendment.--Section 5315 of title 5, United 
States Code, is amended by striking ``(9)'' after ``Assistant 
Secretaries of Defense'' and inserting ``(10)''.

SEC. 902. MODIFICATIONS TO THE COMBATANT COMMANDER INITIATIVE FUND.

    (a) Addition to Authorized Activities.--Subsection (b)(6) 
of section 166a of title 10, United States Code is amended by 
striking ``civil assistance'' and inserting ``civic assistance, 
to include urgent and unanticipated humanitarian relief and 
reconstruction assistance''.
    (b) Additional Priority Consideration.--Subsection (c) of 
such section 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) the provision of funds to be used for urgent 
        and unanticipated humanitarian relief and 
        reconstruction assistance, particularly in a foreign 
        country where the armed forces are engaged in a 
        contingency operation.''.

SEC. 903. ADDITION TO MEMBERSHIP OF SPECIFIED COUNCIL.

    Section 179(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
            ``(5) The commander of the United States Strategic 
        Command.''.

SEC. 904. CONSOLIDATION AND STANDARDIZATION OF AUTHORITIES RELATING TO 
                    DEPARTMENT OF DEFENSE REGIONAL CENTERS FOR SECURITY 
                    STUDIES.

    (a) Basic Authorities for Regional Centers.--
            (1) In general.--Section 184 of title 10, United 
        States Code, is amended to read as follows:

``Sec. 184. Regional Centers for Security Studies

    ``(a) In General.--The Secretary of Defense shall 
administer the Department of Defense Regional Centers for 
Security Studies in accordance with this section as 
international venues for bilateral and multilateral research, 
communication, and exchange of ideas involving military and 
civilian participants.
    ``(b) Regional Centers Specified.--(1) A Department of 
Defense Regional Center for Security Studies is a Department of 
Defense institution that--
            ``(A) is operated, and designated as such, by the 
        Secretary of Defense for the study of security issues 
        relating to a specified geographic region of the world; 
        and
            ``(B) serves as a forum for bilateral and 
        multilateral research, communication, and exchange of 
        ideas involving military and civilian participants.
    ``(2) The Department of Defense Regional Centers for 
Security Studies are the following:
            ``(A) The George C. Marshall European Center for 
        Security Studies, established in 1993 and located in 
        Garmisch-Partenkirchen, Germany.
            ``(B) The Asia-Pacific Center for Security Studies, 
        established in 1995 and located in Honolulu, Hawaii.
            ``(C) The Center for Hemispheric Defense Studies, 
        established in 1997 and located in Washington, D.C.
            ``(D) The Africa Center for Strategic Studies, 
        established in 1999 and located in Washington, D.C.
            ``(E) The Near East South Asia Center for Strategic 
        Studies, established in 2000 and located in Washington, 
        D.C.
    ``(3) No institution or element of the Department of 
Defense may be designated as a Department of Defense Regional 
Center for Security Studies for purposes of this section, other 
than the institutions specified in paragraph (2), except as 
specifically provided by law after the date of the enactment of 
this section.
    ``(c) Regulations.--The administration of the Regional 
Centers under this section shall be carried out under 
regulations prescribed by the Secretary.
    ``(d) Participation.--Participants in activities of the 
Regional Centers may include United States and foreign 
military, civilian, and nongovernmental personnel.
    ``(e) Employment and Compensation of Faculty.--At each 
Regional Center, the Secretary may, subject to the availability 
of appropriations--
            ``(1) employ a Director, a Deputy Director, and as 
        many civilians as professors, instructors, and 
        lecturers as the Secretary considers necessary; and
            ``(2) prescribe the compensation of such persons, 
        in accordance with Federal guidelines.
    ``(f) Payment of Costs.--(1) Participation in activities of 
a Regional Center shall be on a reimbursable basis (or by 
payment in advance), except in a case in which reimbursement is 
waived in accordance with paragraph (3).
    ``(2) For a foreign national participant, payment of costs 
may be made by the participant, the participant's own 
government, by a Department or agency of the United States 
other than the Department of Defense, or by a gift or donation 
on behalf of one or more Regional Centers accepted under 
section 2611 of this title on behalf of the participant's 
government.
    ``(3) The Secretary of Defense may waive reimbursement of 
the costs of activities of the Regional Centers for foreign 
military officers and foreign defense and security civilian 
government officials from a developing country if the Secretary 
determines that attendance of such personnel without 
reimbursement is in the national security interest of the 
United States. Costs for which reimbursement is waived pursuant 
to this paragraph shall be paid from appropriations available 
to the Regional Centers.
    ``(4) Funds accepted for the payment of costs shall be 
credited to the appropriation then currently available to the 
Department of Defense for the Regional Center that incurred the 
costs. Funds so credited shall be merged with the appropriation 
to which credited and shall be available to that Regional 
Center for the same purposes and same period as the 
appropriation with which merged.
    ``(5) Funds available for the payment of personnel expenses 
under the Latin American cooperation authority set forth in 
section 1050 of this title are also available for the costs of 
the operation of the Center for Hemispheric Defense Studies.
    ``(g) Support to Other Agencies.--The Director of a 
Regional Center may enter into agreements with the Secretaries 
of the military departments, the heads of the Defense Agencies, 
and, with the concurrence of the Secretary of Defense, the 
heads of other Federal departments and agencies for the 
provision of services by that Regional Center under this 
section. Any such participating department and agency shall 
transfer to the Regional Center funds to pay the full costs of 
the services received.
    ``(h) Annual Report.--Not later than February 1 of each 
year, 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 
operation of the Regional Centers for security studies during 
the preceding fiscal year. The annual report shall include, for 
each Regional Center, the following information:
            ``(1) The status and objectives of the center.
            ``(2) The budget of the center, including the costs 
        of operating the center.
            ``(3) A description of the extent of the 
        international participation in the programs of the 
        center, including the costs incurred by the United 
        States for the participation of each foreign nation.
            ``(4) A description of the foreign gifts and 
        donations, if any, accepted under section 2611 of this 
        title.''.
            (2) Clerical amendment.--The item relating to such 
        section in the table of sections at the beginning of 
        chapter 7 of such title is amended to read as follows:

``184. Regional Centers for Security Studies.''.

    (b) Conforming Amendments.--
            (1) Employment and compensation authority for 
        civilian faculty.--Section 1595 of title 10, United 
        States Code, is amended--
                    (A) in subsection (c)--
                            (i) by striking paragraphs (3) and 
                        (5); and
                            (ii) by redesignating paragraphs 
                        (4) and (6) as paragraphs (3) and (4), 
                        respectively; and
                    (B) by striking subsection (e).
            (2) Status of center for hemispheric defense 
        studies.--Section 2165 of title 10, United States Code, 
        is amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (6); and
                            (ii) by redesignating paragraph (7) 
                        as paragraph (6); and
                    (B) by striking subsection (c).

SEC. 905. OVERSIGHT BY OFFICE OF UNDER SECRETARY OF DEFENSE FOR 
                    ACQUISITION, TECHNOLOGY, AND LOGISTICS OF EXERCISE 
                    OF ACQUISITION AUTHORITY BY COMBATANT COMMANDERS 
                    AND HEADS OF DEFENSE AGENCIES.

    (a) Designation of Official for Oversight.--The Secretary 
of Defense shall designate a senior acquisition official within 
the Office of the Under Secretary of Defense for Acquisition, 
Technology, and Logistics to oversee the exercise of 
acquisition authority by--
            (1) any commander of a combatant command who is 
        authorized by section 166b, 167, or 167a of title 10, 
        United States Code, to exercise acquisition authority; 
        and
            (2) any head of a Defense Agency who is designated 
        by the Secretary of Defense to exercise acquisition 
        authority.
    (b) Guidance.--
            (1) In general.--The senior acquisition official 
        designated under subsection (a) shall develop guidance 
        to ensure that the use of acquisition authority by 
        commanders of combatant commands and the heads of 
        Defense Agencies--
                    (A) is in compliance with department-wide 
                acquisition policy; and
                    (B) is coordinated with and mutually 
                supportive of acquisition programs of the 
                military departments.
            (2) Urgent requirements.--Guidance developed under 
        paragraph (1) shall take into account the need to 
        fulfill the urgent requirements of the commanders of 
        combatant commands and the heads of Defense Agencies 
        and to ensure that those requirements are addressed 
        expeditiously.
    (c) Consultation.--The senior acquisition official 
designated under subsection (a) shall on a regular basis 
consult on matters related to requirements and acquisition with 
the commanders of combatant commands and the heads of Defense 
Agencies referred to in that subsection.
    (d) Deadline for Designation.--The Secretary of Defense 
shall make the designation required by subsection (a) not later 
than 180 days after the date of the enactment of this Act.

SEC. 906. STANDARDIZATION OF STATUTORY REFERENCES TO ``NATIONAL 
                    SECURITY SYSTEM'' WITHIN LAWS APPLICABLE TO 
                    DEPARTMENT OF DEFENSE.

    (a) Defense Business Systems.--Section 2222(j)(6) of title 
10, United States Code, is amended by striking ``in section 
2315 of this title'' and inserting ``in section 3542(b)(2) of 
title 44''.
    (b) Chief Information Officer Responsibilities.--Section 
2223(c)(3) of such title is amended by striking ``section 11103 
of title 40'' and inserting ``section 3542(b)(2) of title 44''.
    (c) Procurement of Automatic Data Processing Equipment and 
Services.--The text of section 2315 of such title is amended to 
read as follows:
    ``For purposes of subtitle III of title 40, the term 
`national security system', with respect to a 
telecommunications and information system operated by the 
Department of Defense, has the meaning given that term by 
section 3542(b)(2) of title 44.''.

SEC. 907. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE INFORMATION 
                    SYSTEMS AGENCY.

    Paragraph (1) of section 193(f) of title 10, United States 
Code, is amended to read as follows:
            ``(1) The Defense Information Systems Agency.''.

                      Subtitle B--Space Activities

SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE DISESTABLISHED 
                    INTERAGENCY GLOBAL POSITIONING EXECUTIVE BOARD.

    (a) Successor Organizations.--Section 8 of the Commercial 
Space Transportation Competitiveness Act of 2000 (10 U.S.C. 
2281 note) is amended by striking ``by Congress'' and all that 
follows and inserting ``for the functions and activities of the 
following organizations established pursuant to the United 
States Space-Based Position, Navigation, and Timing Policy 
issued December 8, 2004 (and any successor organization, to the 
extent the successor organization performs the functions of the 
specified organization):
            ``(1) The interagency committee known as the 
        National Space-Based Positioning, Navigation, and 
        Timing Executive Committee.
            ``(2) The support office for the committee 
        specified in paragraph (1) known as the National Space-
        Based Positioning, Navigation, and Timing Coordination 
        Office.
            ``(3) The Federal advisory committee known as the 
        National Space-Based Positioning, Navigation, and 
        Timing Advisory Board.''.
    (b) Clarification.--Such section is further amended by 
striking ``interagency funding'' and inserting ``multi-agency 
funding''.

SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR PROVISION OF 
                    SPACE SURVEILLANCE NETWORK SERVICES TO NON-UNITED 
                    STATES GOVERNMENT ENTITIES.

    Section 2274(i) of title 10, United States Code, is amended 
by striking ``shall be conducted'' and all that follows and 
inserting ``may be conducted through September 30, 2009.''.

SEC. 913. OPERATIONALLY RESPONSIVE SPACE.

    (a) United States Policy on Operationally Responsive 
Space.--It is the policy of the United States to demonstrate, 
acquire, and deploy an effective capability for operationally 
responsive space to support military users and operations from 
space, which shall consist of--
            (1) responsive satellite payloads and busses built 
        to common technical standards;
            (2) low-cost space launch vehicles and supporting 
        range operations that facilitate the timely launch and 
        on-orbit operations of satellites;
            (3) responsive command and control capabilities; 
        and
            (4) concepts of operations, tactics, techniques, 
        and procedures that permit the use of responsive space 
        assets for combat and military operations other than 
        war.
    (b) Operationally Responsive Space Program Office.--
            (1) Establishment of office.--Section 2273a of 
        title 10, United States Code, is amended to read as 
        follows:

``Sec. 2273a. Operationally Responsive Space Program Office

    ``(a) Establishment.--The Secretary of Defense shall 
establish within the Department of Defense an office to be 
known as the Operationally Responsive Space Program Office (in 
this section referred to as the `Office').
    ``(b) Head of Office.--The head of the Office shall be--
            ``(1) the Department of Defense Executive Agent for 
        Space; or
            ``(2) the designee of the Secretary of Defense, who 
        shall report to the Department of Defense Executive 
        Agent for Space.
    ``(c) Mission.--The mission of the Office shall be--
            ``(1) to contribute to the development of low-cost, 
        rapid reaction payloads, busses, spacelift, and launch 
        control capabilities in order to fulfill joint military 
        operational requirements for on-demand space support 
        and reconstitution; and
            ``(2) to coordinate and execute operationally 
        responsive space efforts across the Department of 
        Defense with respect to planning, acquisition, and 
        operations.
    ``(d) Elements.--The Secretary of Defense shall select the 
elements of the Department of Defense to be included in the 
Office so as to contribute to the development of capabilities 
for operationally responsive space and to achieve a balanced 
representation of the military departments in the Office to 
ensure proper acknowledgment of joint considerations in the 
activities of the Office, except that the Office shall include 
the following:
            ``(1) A science and technology element that shall 
        pursue innovative approaches to the development of 
        capabilities for operationally responsive space through 
        basic and applied research focused on (but not limited 
        to) payloads, bus, and launch equipment.
            ``(2) An acquisition element that shall undertake 
        the acquisition of systems necessary to integrate, 
        sustain, and launch assets for operationally responsive 
        space.
            ``(3) An operations element that shall--
                    ``(A) sustain and maintain assets for 
                operationally responsive space prior to launch;
                    ``(B) integrate and launch such assets; and
                    ``(C) operate such assets in orbit.
            ``(4) A combatant command support element that 
        shall serve as the primary intermediary between the 
        military departments and the combatant commands in 
        order to--
                    ``(A) ascertain the needs of the commanders 
                of the combatant commands; and
                    ``(B) integrate operationally responsive 
                space capabilities into--
                            ``(i) operations plans of the 
                        combatant commands;
                            ``(ii) techniques, tactics, and 
                        procedures of the military departments; 
                        and
                            ``(iii) military exercises, 
                        demonstrations, and war games.
            ``(5) Such other elements as the Secretary of 
        Defense may consider necessary.
    ``(e) Acquisition Authority.--The acquisition activities of 
the Office shall be subject to the following:
            ``(1) The Department of Defense Executive Agent for 
        Space shall be the senior acquisition executive of the 
        Office.
            ``(2) The Joint Capabilities Integration and 
        Development System process shall not apply to 
        acquisitions by the Office for operational 
        experimentation.
            ``(3) The commander of the United States Strategic 
        Command, or the designee of the commander, shall--
                    ``(A) validate all system requirements for 
                systems to be acquired by the Office; and
                    ``(B) participate in the approval of any 
                acquisition program initiated by the Office.
            ``(4) To the maximum extent practicable, the 
        procurement unit cost of a launch vehicle procured by 
        the Office for launch to low earth orbit should not 
        exceed $20,000,000 (in constant dollars).
            ``(5) To the maximum extent practicable, the 
        procurement unit cost of an integrated satellite 
        procured by the Office should not exceed $40,000,000 
        (in constant dollars).
    ``(f) Required Program Element.--(1) The Secretary of 
Defense shall ensure that, within budget program elements for 
space programs of the Department of Defense, that--
            ``(A) there is a separate, dedicated program 
        element for operationally responsive space;
            ``(B) to the extent applicable, relevant program 
        elements should be consolidated into the program 
        element required by subparagraph (A); and
            ``(C) the Office executes its responsibilities 
        through this program element.
    ``(2) The Office shall manage the program element required 
by paragraph (1)(A).''.
            (2) Clerical amendment.--The item relating to that 
        section in the table of sections at the beginning of 
        chapter 135 of such title is amended to read as 
        follows:

``2273a. Operationally Responsive Space Program Office.''.

    (c) Plan for Operationally Responsive Space.--
            (1) Plan required.--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 setting forth a plan for the 
        acquisition by the Department of Defense of 
        capabilities for operationally responsive space to 
        support military users and military operations.
            (2) Elements.--The plan required by paragraph (1) 
        shall include the following:
                    (A) An identification of the roles and 
                missions of each military department, Defense 
                Agency, and other component or element of the 
                Department of Defense for the fulfillment of 
                the mission of the Department with respect to 
                operationally responsive space.
                    (B) An identification of the capabilities 
                required by the Department to fulfill such 
                mission during the period covered by the 
                current future-years defense program submitted 
                to Congress pursuant to section 221 of title 
                10, United States Code, and an additional 10-
                year period.
                    (C) A description of the chain of command 
                and reporting structure of the Operationally 
                Responsive Space Program Office established 
                under section 2273a of title 10, United States 
                Code, as amended by subsection (b).
                    (D) A description of the classification of 
                information required for the Operationally 
                Responsive Space Program Office in order to 
                ensure that the Office carries out its 
                responsibilities under such section 2273a in a 
                proper and efficient manner.
                    (E) A description of the acquisition 
                policies and procedures applicable to the 
                Operationally Responsive Space Program Office, 
                including a description of any legislative or 
                administrative action necessary to provide the 
                Office additional acquisition authority to 
                carry out its responsibilities.
                    (F) A schedule for the implementation of 
                the plan and the establishment of the 
                Operationally Responsive Space Program Office.
                    (G) The funding and personnel required to 
                implement the plan over the course of the 
                current future-years defense program.
                    (H) A description of any additional 
                authorities and programmatic, organizational, 
                or other changes necessary to ensure that the 
                Operationally Responsive Space Program Office 
                can successfully carry out its 
                responsibilities.
    (d) Repeal of Superseded Law.--Section 913 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3408; 10 U.S.C. 2273a note) is repealed.

SEC. 914. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT OF DEFENSE 
                    ORGANIZATION AND MANAGEMENT FOR NATIONAL SECURITY 
                    IN SPACE.

    (a) Independent Review and Assessment Required.--The 
Secretary of Defense shall select an appropriate entity outside 
the Department of Defense to conduct an independent review and 
assessment of the organization and management of the Department 
of Defense for national security in space. In selecting the 
entity to conduct the review and assessment, the Secretary 
shall consult with the chairman and ranking minority member of 
the Committee on Armed Services of the Senate and the chairman 
and ranking minority member of the Committee on Armed Services 
of the House of Representatives.
    (b) Elements.--The review and assessment required by this 
section shall address the following:
            (1) The requirements of the Department of Defense 
        for national security space capabilities, as identified 
        by the Department, and the efforts of the Department to 
        fulfill such requirements.
            (2) The actions that could be taken by the 
        Department to modify the organization and management of 
        the Department over the near-term, medium-term, and 
        long-term in order to strengthen United States national 
        security in space, and the ability of the Department to 
        implement its requirements and carry out the future 
        space missions, including the following:
                    (A) Actions to improve or enhance current 
                interagency coordination processes regarding 
                the operation of national security space 
                assets, including improvements or enhancements 
                in interoperability and communications.
                    (B) Actions to improve or enhance the 
                relationship between the intelligence aspects 
                of national security space (so-called ``black 
                space'') and the non-intelligence aspects of 
                national security space (so-called ``white 
                space'').
                    (C) Actions to improve or enhance the 
                manner in which military space issues are 
                addressed by professional military education 
                institutions.
                    (D) Actions to create a specialized career 
                field for military space acquisition personnel, 
                to include an emphasis on long-term 
                assignments, that could help develop and 
                maintain a professional space acquisition cadre 
                with technical expertise and institutional 
                knowledge.
    (c) Liaison.--The Secretary of Defense shall designate at 
least one senior civilian employee of the Department of 
Defense, and at least one general or flag officer, to serve as 
liaison between the Department, the Armed Forces, and the 
entity conducting the review and assessment under this section.
    (d) Report.--Not later than one year after the date of the 
enactment of this Act, the entity conducting the review and 
assessment under this section shall submit to the Secretary of 
Defense and the congressional defense committees a report 
containing--
            (1) the results of the review and assessment; and
            (2) recommendations on the best means by which the 
        Department may improve its organization and management 
        for national security in space.

             Subtitle C--Chemical Demilitarization Program

SEC. 921. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED 
                    STATES CHEMICAL WEAPONS STOCKPILE.

    (a) Findings.--Congress makes the following findings:
            (1) The Convention on the Prohibition of the 
        Development, Production, Stockpiling and Use of 
        Chemical Weapons and on Their Destruction, done at 
        Paris on January 13, 1993 (commonly referred to as the 
        ``Chemical Weapons Convention''), requires that 
        destruction of the entire United States chemical 
        weapons stockpile be completed by no later than the 
        extended deadline of April 29, 2012.
            (2) On April 10, 2006, the Department of Defense 
        notified Congress that the United States would not meet 
        even the extended deadline under the Chemical Weapons 
        Convention for destruction of the United States 
        chemical weapons stockpile.
            (3) Destroying existing chemical weapons is a 
        homeland security imperative and an arms control 
        priority and is required by United States law.
            (4) The elimination and nonproliferation of 
        chemical weapons of mass destruction is of utmost 
        importance to the national security of the United 
        States.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States is committed to making every 
        effort to safely dispose of its entire chemical weapons 
        stockpile by the Chemical Weapons Convention extended 
        deadline of April 29, 2012, or as soon thereafter as 
        possible, and will carry out all of its other 
        obligations under that Convention;
            (2) to prevent further delays in completing the 
        destruction of the United States chemical weapons 
        stockpile, the Secretary of Defense should prepare a 
        comprehensive schedule for the safe destruction of such 
        stockpile and should annually submit that schedule (as 
        currently in effect) to the congressional defense 
        committees, either separately or as part of another 
        required report, until such destruction is completed;
            (3) the Secretary of Defense should make every 
        effort to ensure adequate funding to complete the 
        elimination of the United States chemical weapons 
        stockpile in the shortest time possible, consistent 
        with the requirement to protect public health, safety, 
        and the environment; and
            (4) when selecting a site for the treatment or 
        disposal of neutralized chemical agent at a location 
        remote from the location where the agent is stored, the 
        Secretary of Defense should propose a credible process 
        that seeks to gain the support of affected communities.

SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANALYSIS OF OFF-
                    SITE VERSUS ON-SITE TREATMENT AND DISPOSAL OF 
                    HYDROLYSATE DERIVED FROM NEUTRALIZATION OF VX NERVE 
                    GAS AT NEWPORT CHEMICAL DEPOT, INDIANA.

    (a) Review Required.--Not later than December 1, 2006, the 
Comptroller General shall submit to Congress a report 
containing a review of the cost-benefit analysis prepared by 
the Secretary of the Army entitled ``Cost-Benefit Analysis of 
Off-Site Versus On-Site Treatment and Disposal of Newport 
Caustic Hydrolysate'' and dated April 24, 2006.
    (b) Content of Review.--In conducting the review under 
subsection (a), the Comptroller General shall consider and 
assess at a minimum the following matters:
            (1) The adequacy of the rationale contained in the 
        cost-benefit analysis referred to in subsection (a) in 
        dismissing five of the eight technologies for 
        hydrolysate treatment directed for consideration on 
        page 116 of the Report of the Committee on Armed 
        Services of the House of Representatives on H.R. 1815 
        (House Report 109-89).
            (2) The rationale for the failure of the Secretary 
        of the Army to consider other technical solutions, such 
        as constructing a wastewater disposal system at the 
        Newport Chemical Depot.
            (3) The adequacy of the cost-benefit analysis 
        presented for the three technologies considered.
    (c) Limitation on Transport Pending Report.--The Secretary 
of the Army may not transport neutralized bulk nerve agent 
(other than those small quantities necessary for laboratory 
evaluation of the disposal process) from the Newport Chemical 
Depot to the State of New Jersey until the earlier of--
            (1) the end of the 60-day period beginning on the 
        date on which the report required by subsection (a) is 
        submitted; or
            (2) February 1, 2007.

SEC. 923. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION CONTRACTS.

    (a) In General.--
            (1) Authority to include clauses in contracts.--The 
        Secretary of Defense may, for the purpose specified in 
        paragraph (2), authorize the inclusion of an incentives 
        clause in any contract for the destruction of the 
        United States stockpile of lethal chemical agents and 
        munitions carried out pursuant to section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521).
            (2) Purpose.--The purpose of a clause referred to 
        in paragraph (1) is to provide the contractor for a 
        chemical demilitarization facility an incentive to 
        accelerate the safe elimination of the United States 
        chemical weapons stockpile and to reduce the total cost 
        of the Chemical Demilitarization Program by providing 
        incentive payments for the early completion of 
        destruction operations and the closure of such 
        facility.
    (b) Incentives Clauses.--
            (1) In general.--An incentives clause under this 
        section shall permit the contractor for the chemical 
        demilitarization facility concerned the opportunity to 
        earn incentive payments for the completion of 
        destruction operations and facility closure activities 
        within target incentive ranges specified in such 
        clause.
            (2) Limitation on incentive payments.--The maximum 
        incentive payment under an incentives clause with 
        respect to a chemical demilitarization facility may not 
        exceed amounts as follows:
                    (A) In the case of an incentive payment for 
                the completion of destruction operations within 
                the target incentive range specified in such 
                clause, $110,000,000.
                    (B) In the case of an incentive payment for 
                the completion of facility closure activities 
                within the target incentive range specified in 
                such clause, $55,000,000.
            (3) Target ranges.--An incentives clause in a 
        contract under this section shall specify the target 
        incentive ranges of costs for completion of destruction 
        operations and facility closure activities, 
        respectively, as jointly agreed upon by the contracting 
        officer and the contractor concerned. An incentives 
        clause shall require a proportionate reduction in the 
        maximum incentive payment amounts in the event that the 
        contractor exceeds an agreed-upon target cost if such 
        excess costs are the responsibility of the contractor.
            (4) Calculation of incentive payments.--The amount 
        of the incentive payment earned by a contractor for a 
        chemical demilitarization facility under an incentives 
        clause under this section shall be based upon a 
        determination by the Secretary on how early in the 
        target incentive range specified in such clause 
        destruction operations or facility closure activities, 
        as the case may be, are completed.
            (5) Consistency with existing obligations.--The 
        provisions of any incentives clause under this section 
        shall be consistent with the obligation of the 
        Secretary of Defense under section 1412(c)(1)(A) of the 
        Department of Defense Authorization Act, 1986, to 
        provide for maximum protection for the environment, the 
        general public, and the personnel who are involved in 
        the destruction of the lethal chemical agents and 
        munitions.
            (6) Additional terms and conditions.--In 
        negotiating the inclusion of an incentives clause in a 
        contract under this section, the Secretary may include 
        in such clause such additional terms and conditions as 
        the Secretary considers appropriate.
    (c) Additional Limitation on Payments.--
            (1) Payment conditional on performance.--No payment 
        may be made under an incentives clause under this 
        section unless the Secretary determines that the 
        contractor concerned has satisfactorily performed its 
        duties under such incentives clause.
            (2) Payment contingent on appropriations.--An 
        incentives clause under this section shall specify that 
        the obligation of the Government to make payment under 
        such incentives clause is subject to the availability 
        of appropriations for that purpose. Amounts 
        appropriated for Chemical Agents and Munitions 
        Destruction, Defense, shall be available for payments 
        under incentives clauses under this section.

SEC. 924. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING AUTHORITY.

    (a) Multiyear Contracting Authority.--The Secretary of 
Defense may carry out responsibilities under section 1412(a) of 
the Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521(a)) through multiyear contracts entered into before the 
date of the enactment of this Act.
    (b) Availability of Funds.--Contracts entered into under 
subsection (a) shall be funded through annual appropriations 
for the destruction of chemical agents and munitions.

                Subtitle D--Intelligence-Related Matters

SEC. 931. FOUR-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF DEFENSE TO 
                    ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
                    INTELLIGENCE COLLECTION ACTIVITIES.

    Section 431(a) of title 10, United States Code, is amended 
by striking ``December 31, 2006'' and inserting ``December 31, 
2010''.

SEC. 932. ANNUAL REPORTS ON INTELLIGENCE OVERSIGHT ACTIVITIES OF THE 
                    DEPARTMENT OF DEFENSE.

    (a) In General.--Subchapter I of chapter 21 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 427. Intelligence oversight activities of Department of Defense: 
                    annual reports

    ``(a) Annual Reports Required.--(1) Not later than March 1 
of each year, the Secretary of Defense shall submit--
            ``(A) to the congressional committees specified in 
        subparagraph (A) of paragraph (2) a report on the 
        intelligence oversight activities of the Department of 
        Defense during the previous calendar year insofar as 
        such oversight activities relate to tactical 
        intelligence and intelligence-related activities of the 
        Department; and
            ``(B) to the congressional committees specified in 
        subparagraph (B) of paragraph (2) a report on the 
        intelligence oversight activities of the Department of 
        Defense during the previous calendar year insofar as 
        such oversight activities relate to intelligence and 
        intelligence-related activities of the Department other 
        than those specified in subparagraph (A).
    ``(2)(A) The committees specified in this subparagraph are 
the following:
            ``(i) The Committee on Armed Services and the 
        Committee on Appropriations of the Senate.
            ``(ii) The Permanent Select Committee on 
        Intelligence, the Committee on Armed Services, and the 
        Committee on Appropriations of the House of 
        Representatives.
    ``(B) The committees specified in this subparagraph are the 
following:
            ``(i) The Select Committee on Intelligence, the 
        Committee on Armed Services, and the Committee on 
        Appropriations of the Senate.
            ``(ii) The Permanent Select Committee on 
        Intelligence and the Committee on Appropriations of the 
        House of Representatives.
    ``(b) Elements.--Each report under subsection (a) shall 
include, for the calendar year covered by such report and with 
respect to oversight activities subject to coverage in that 
report, the following:
            ``(1) A description of any violation of law or of 
        any Executive order or Presidential directive 
        (including Executive order No. 12333) that comes to the 
        attention of any General Counsel or Inspector General 
        within the Department of Defense, or the Under 
        Secretary of Defense for Intelligence, and a 
        description of the actions taken by such official with 
        respect to such activity.
            ``(2) A description of the results of intelligence 
        oversight inspections undertaken by each of the 
        following:
                    ``(A) The Office of the Secretary of 
                Defense.
                    ``(B) Each military department.
                    ``(C) Each combat support agency.
                    ``(D) Each field operating agency.
            ``(3) A description of any changes made in any 
        program for the intelligence oversight activities of 
        the Department of Defense, including any training 
        program.
            ``(4) A description of any changes made in any 
        published directive or policy memoranda on the 
        intelligence or intelligence-related activities of--
                    ``(A) any military department;
                    ``(B) any combat support agency; or
                    ``(C) any field operating agency.
    ``(c) Definitions.--In this section:
            ``(1) The term `intelligence oversight activities 
        of the Department of Defense' refers to any activity 
        undertaken by an agency, element, or component of the 
        Department of Defense to ensure compliance with regard 
        to requirements or instructions on the intelligence and 
        intelligence-related activities of the Department under 
        law or any Executive order or Presidential directive 
        (including Executive Order No. 12333).
            ``(2) The term `combat support agency' has the 
        meaning given that term in section 193(f) of this 
        title.
            ``(3) The term `field operating agency' means a 
        specialized subdivision of the Department of Defense 
        that carries out activities under the operational 
        control of the Department.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by adding at the end 
the following new item:

``427. Intelligence oversight activities of Department of Defense: 
          annual reports.''.

SEC. 933. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE CHARGES FOR 
                    CERTIFICATION OR VALIDATION OF INFORMATION 
                    ASSURANCE PRODUCTS.

    The National Security Agency Act of 1959 (50 U.S.C. 402 
note) is amended by adding at the end the following new 
section:
    ``Sec. 20. (a) The Director may collect charges for 
evaluating, certifying, or validating information assurance 
products under the National Information Assurance Program or 
successor program.
    ``(b) The charges collected under subsection (a) shall be 
established through a public rulemaking process in accordance 
with Office of Management and Budget Circular No. A-25.
    ``(c) Charges collected under subsection (a) shall not 
exceed the direct costs of the program referred to in that 
subsection.
    ``(d) The appropriation or fund bearing the cost of the 
service for which charges are collected under the program 
referred to in subsection (a) may be reimbursed, or the 
Director may require advance payment subject to such adjustment 
on completion of the work as may be agreed upon.
    ``(e) Amounts collected under this section shall be 
credited to the account or accounts from which costs associated 
with such amounts have been or will be incurred, to reimburse 
or offset the direct costs of the program referred to in 
subsection (a).''.

                       Subtitle E--Other Matters

SEC. 941. DEPARTMENT OF DEFENSE POLICY ON UNMANNED SYSTEMS.

    (a) Policy Required.--The Secretary of Defense shall 
develop a policy, to be applicable throughout the Department of 
Defense, on research, development, test and evaluation, 
procurement, and operation of unmanned systems.
    (b) Elements.--The policy required by subsection (a) shall 
include or address the following:
            (1) An identification of missions and mission 
        requirements, including mission requirements for the 
        military departments and joint mission requirements, 
        for which unmanned systems may replace manned systems.
            (2) A preference for unmanned systems in 
        acquisition programs for new systems, including a 
        requirement under any such program for the development 
        of a manned system for a certification that an unmanned 
        system is incapable of meeting program requirements.
            (3) An assessment of the circumstances under which 
        it would be appropriate to pursue joint development and 
        procurement of unmanned systems and components of 
        unmanned systems.
            (4) The transition of unmanned systems unique to 
        one military department to joint systems, when 
        appropriate.
            (5) An organizational structure for effective 
        management, coordination, and budgeting for the 
        development and procurement of unmanned systems, 
        including an assessment of the feasibility and 
        advisability of designating a single department or 
        other element of the Department of Defense to act as 
        executive agent for the Department on unmanned systems.
            (6) The integration of unmanned and manned systems 
        to enhance support of the missions identified in 
        paragraph (1).
            (7) Such other matters that the Secretary of 
        Defense considers to be appropriate.
    (c) Consultation.--The Secretary of Defense shall develop 
the policy required by subsection (a) in consultation with the 
Chairman of the Joint Chiefs of Staff.
    (d) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall submit to the 
congressional defense committees a report containing--
            (1) the policy required by subsection (a); and
            (2) an implementation plan for the policy that 
        includes--
                    (A) a strategy and schedules for the 
                replacement of manned systems with unmanned 
                systems in the performance of the missions 
                identified in the policy pursuant to subsection 
                (b)(1);
                    (B) establishment of programs to address 
                technical, operational, and production 
                challenges, and gaps in capabilities, with 
                respect to unmanned systems; and
                    (C) an assessment of progress towards 
                meeting the goals identified for the subset of 
                unmanned air and ground systems established in 
                section 220 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-38).
    (e) Unmanned Systems Defined.--In this section, the term 
``unmanned systems'' consists of unmanned aerial systems, 
unmanned ground systems, and unmanned maritime systems.

SEC. 942. EXECUTIVE SCHEDULE LEVEL IV FOR DEPUTY UNDER SECRETARY OF 
                    DEFENSE FOR LOGISTICS AND MATERIEL READINESS.

    (a) Executive Schedule Level IV.--Section 5315 of title 5, 
United States Code, is amended by inserting after the item 
relating to the Deputy Under Secretary of Defense for Personnel 
and Readiness the following new item:
            ``Deputy Under Secretary of Defense for Logistics 
        and Materiel Readiness.''.
    (b) Conforming Amendment.--Section 5314 of title 5, United 
States Code, is amended by striking the item relating to the 
Deputy Under Secretary of Defense for Logistics and Materiel 
Readiness.
    (c) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to individuals appointed as Deputy 
Under Secretary of Defense for Logistics and Materiel Readiness 
on or after that date.

SEC. 943. STUDY AND REPORT ON REFORM OF DEFENSE TRAVEL SYSTEM.

    (a) Independent Study of System.--
            (1) Study required.--Not later than 180 days after 
        the date of the enactment of this Act, the Secretary of 
        Defense shall submit to the congressional defense 
        committees the results and recommendations of an 
        independent study of the Defense Travel System 
        conducted to determine the most cost-effect method of 
        meeting Department of Defense travel requirements. The 
        study shall be conducted by an entity outside the 
        Department of Defense.
            (2) Elements of study.--At a minimum, the study 
        required by this subsection shall address the 
        following:
                    (A) The feasibility of separating the 
                financial infrastructure of the Defense Travel 
                System, including voucher processing, 
                accounting, disbursing, debt collection, 
                management accountability, and archival 
                functions, from the travel reservation process.
                    (B) The feasibility of converting the 
                travel reservation process to a fee-for-
                services system or authorizing the use of 
                multiple travel reservation processes, all of 
                which processes would use the financial 
                infrastructure of the Defense Travel System.
                    (C) The feasibility of making the use of 
                the financial infrastructure of the Defense 
                Travel System mandatory for all Department of 
                Defense travel transactions.
    (b) Implementation Plans.--Not later than 60 days after the 
Secretary of Defense receives the independent study required by 
subsection (a), the Secretary shall submit to the congressional 
defense committees a report describing the actions, if any, 
that the Secretary intends to take to implement the 
recommendations contained in the study. If the Secretary does 
not intend to implement any of the recommendations, the 
Secretary shall explain the basis for this decision.
    (c) Conditions on New Contract or Expenditures for Defense 
Travel System.--Except to continue operations to provide 
current services and to perform the functions described in 
paragraphs (1) through (3), the Secretary of Defense may not 
initiate a new contract for the Defense Travel System or expend 
funds for the Defense Travel System until each of the following 
occurs:
            (1) The Secretary submits the report required by 
        subsection (b).
            (2) The Secretary develops firm, fixed requirements 
        for the Defense Travel System.
            (3) The Secretary develops a schedule to phase out 
        the legacy travel systems made redundant by 
        implementation of the Defense Travel System.

SEC. 944. ADMINISTRATION OF PILOT PROJECT ON CIVILIAN LINGUIST RESERVE 
                    CORPS.

    (a) Transfer of Administration to Secretary of Defense.--
            (1) In general.--Administration of the pilot 
        project on the establishment of a Civilian Linguist 
        Reserve Corps required by section 613 of the 
        Intelligence Authorization Act for Fiscal Year 2005 
        (Public Law 108-487; 118 Stat. 3959; 50 U.S.C. 403-1b 
        note) is hereby transferred from the Director of 
        National Intelligence to the Secretary of Defense.
            (2) Conforming amendments.--Section 613 of the 
        Intelligence Authorization Act for Fiscal Year 2005 is 
        amended--
                    (A) by striking ``Director of National 
                Intelligence'' each place it appears and 
                inserting ``Secretary of Defense''; and
                    (B) by striking ``Director'' each place it 
                appears and inserting ``Secretary''.
    (b) Coordination With Director of National Intelligence in 
Administration.--Subsection (a) of such section is further 
amended--
            (1) by inserting ``(1)'' after ``Pilot Project.--
        ''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Secretary shall conduct the pilot project in 
coordination with the Director of National Intelligence.''.
    (c) Discharge of Project Through National Security 
Education Program.--Subsection (a) of such section is further 
amended by adding at the end the following new paragraph:
    ``(3) The Secretary shall conduct the pilot project through 
the National Security Education Program.''.
    (d) Duration of Project.--Subsection (c) of such section is 
amended by striking ``three-year period'' and inserting ``five-
year period''.
    (e) Repeal of Superseded Authorization.--Such section is 
further amended by striking subsection (f).

SEC. 945. IMPROVEMENT OF AUTHORITIES ON THE NATIONAL SECURITY EDUCATION 
                    PROGRAM.

    (a) Expansion of Employment Creditable Under Service 
Agreements.--Paragraph (2) of subsection (b) of section 802 of 
the David L. Boren National Security Education Act of 1991 (50 
U.S.C. 1902) is amended to read as follows:
            ``(2)(A) will (in accordance with regulations 
        prescribed by the Secretary of Defense in coordination 
        with the heads of the other Federal departments and 
        agencies concerned) begin work not later than three 
        years after the recipient's completion of degree study 
        during which scholarship assistance was provided under 
        the program--
                            ``(i) for not less than one year in 
                        a position certified by the Secretary 
                        of Defense, in coordination with the 
                        Director of National Intelligence, the 
                        Secretary of Homeland Security, and the 
                        Secretary of State (as appropriate), as 
                        contributing to the national security 
                        of the United States in the Department 
                        of Defense, any element of the 
                        intelligence community, the Department 
                        of Homeland Security, or the Department 
                        of State; or
                            ``(ii) for not less than one year 
                        in a position in a Federal agency or 
                        office that is identified by the 
                        Secretary of Defense under subsection 
                        (g) as having national security 
                        responsibilities if the recipient 
                        demonstrates to the Secretary that no 
                        position is available in the 
                        departments and agencies covered by 
                        clause (i); or
                    ``(B) will (in accordance with such 
                regulations) begin work not later than two 
                years after the recipient's completion or 
                termination of study for which fellowship 
                assistance was provided under the program--
                            ``(i) for not less than one year in 
                        a position certified by the Secretary 
                        of Defense, in coordination with the 
                        Director of National Intelligence, the 
                        Secretary of Homeland Security, and the 
                        Secretary of State (as appropriate), as 
                        contributing to the national security 
                        of the United States in the Department 
                        of Defense, any element of the 
                        intelligence community, the Department 
                        of Homeland Security, or the Department 
                        of State; or
                            ``(ii) for not less than one year 
                        in a position in a Federal agency or 
                        office that is identified by the 
                        Secretary of Defense under subsection 
                        (g) as having national security 
                        responsibilities if the recipient 
                        demonstrates to the Secretary that no 
                        position is available in the 
                        departments and agencies covered by 
                        clause (i); and''.
    (b) Temporary Employment and Retention of Certain 
Participants.--Such section is further amended--
            (1) by redesignating subsections (h) and (i) as 
        subsections (i) and (j), respectively; and
            (2) by inserting after subsection (g) the following 
        new subsection (h):
    ``(h) Temporary Employment and Retention of Certain 
Participants.--
            ``(1) In general.--The Secretary of Defense may--
                    ``(A) appoint or retain a person provided 
                scholarship or fellowship assistance under the 
                program in a position in the Department of 
                Defense on an interim basis during the period 
                of the person's pursuit of a degree under the 
                program and for a period not to exceed two 
                years after completion of the degree, but only 
                if, in the case of the period after completion 
                of the degree, there is an active investigation 
                to provide security clearance to the person for 
                an appropriate permanent position in the 
                Department of Defense under subsection (b)(2); 
                and
                    ``(B) if there is no appropriate permanent 
                position available for the person after the end 
                of the periods described in subparagraph (A), 
                separate the person from employment with the 
                Department without regard to any other 
                provision of law, in which event the service 
                agreement of the person under subsection (b) 
                shall terminate.
            ``(2) Treatment of certain service.--The period of 
        service of a person covered by paragraph (1) in a 
        position on an interim basis under that paragraph 
        shall, after completion of the degree, be treated as a 
        period of service for purposes of satisfying the 
        obligated service requirements of the person under the 
        service agreement of the person under subsection 
        (b).''.
    (c) Plan for Improving Program.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of 
Defense shall submit to Congress a plan for improving the 
recruitment, placement, and retention within the Department of 
Defense of individuals who receive scholarships or fellowships 
under the David L. Boren National Security Education Act of 
1991 (50 U.S.C. 1901 et seq.) in order to facilitate the 
purposes of that Act in meeting the requirements of the 
Department in acquiring individuals with critical foreign 
language skills and individuals who are regional experts.

SEC. 946. REPORT ON THE POSTURE OF UNITED STATES SPECIAL OPERATIONS 
                    COMMAND TO CONDUCT THE GLOBAL WAR ON TERRORISM.

    (a) Findings.--Congress makes the following findings:
            (1) The 2006 Quadrennial Defense Review recommends 
        an increase in the size of the United States Special 
        Operations Command as a fundamental part of the efforts 
        of the Department of Defense to fight the global war on 
        terrorism.
            (2) Special operations forces conducting all nine 
        of their statutory activities, as specified in section 
        167(j) of title 10, United States Code, play a crucial 
        role in the global war on terrorism, and the Department 
        of Defense should take a balanced approach to the 
        expansion of the force structure of that command to 
        provide additional capability in both the active and 
        reserve components.
            (3) Special operations forces are engaged in 
        operations across the globe and in extreme and varied 
        operational environments which require specialized 
        training to successfully operate in those environments.
            (4) Due to the global and long-term nature of the 
        global war on terrorism, the Secretary of Defense 
        should assess whether the United States Special 
        Operations Command has the appropriate force structure 
        and training focus required for successful operations 
        in the global war on terrorism.
    (b) Report on Posture of SOCOM to Conduct the Global War on 
Terrorism.--Not later than six months after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report assessing the 
posture of the United States Special Operations Command to 
conduct the global war on terrorism. The Secretary shall 
include in the report the following:
            (1) The Secretary's assessment of whether the 
        United States Special Operations Command is 
        appropriately manned, resourced, and equipped to 
        successfully meet the long-term requirements of the 
        global war on terrorism.
            (2) The Secretary's assessment whether the 
        expansion of that command as recommended in the 2006 
        Quadrennial Defense Review provides an appropriate 
        balance between active and reserve component 
        capabilities.
            (3) The Secretary's assessment of whether United 
        States Special Operations Command has sufficient Army 
        Special Forces to meet the 2006 Quadrennial Defense 
        Review objective of building allied and partner nation 
        capacity through security assistance and other training 
        missions such as the Joint Combined Exchange Training 
        program.
            (4) A detailed statement of the efforts of the 
        commander of the United States Special Operations 
        Command to provide special operations forces personnel 
        with specialized environmental training in preparation 
        for operations across the globe and in extreme and 
        varied operational environments such as mountain, 
        jungle, or desert environments.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. Authorization of additional emergency supplemental 
          appropriations for fiscal year 2006.
Sec. 1003. Reduction in certain authorizations due to savings relating 
          to lower inflation.
Sec. 1004. Increase in fiscal year 2006 general transfer authority.
Sec. 1005. United States contribution to NATO common-funded budgets in 
          fiscal year 2007.
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates.
Sec. 1007. Modification of date of submittal of OMB/CBO report on 
          scoring of outlays.
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and 
          Iraq.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Aircraft carrier force structure.
Sec. 1012. Sense of Congress on naming the CVN-78 aircraft carrier as 
          the U.S.S. Gerald R. Ford.
Sec. 1013. Transfer of naval vessels to foreign nations based upon 
          vessel class.
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign 
          shipyards.
Sec. 1015. Report on options for future lease arrangement for Guam 
          Shipyard.
Sec. 1016. Assessments of naval vessel construction efficiencies and of 
          effectiveness of special contractor incentives.
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul, 
          repair, and maintenance of vessels in the United States.
Sec. 1018. Riding gang member requirements.
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government 
          of Greece.

                   Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority of Department of Defense to provide 
          additional support for counterdrug activities of other 
          governmental agencies.
Sec. 1022. Extension and expansion of Department of Defense authority to 
          provide support for counter-drug activities of certain foreign 
          governments.
Sec. 1023. Extension of authority to support unified counterdrug and 
          counterterrorism campaign in Colombia.
Sec. 1024. Continuation of reporting requirement regarding Department of 
          Defense expenditures to support foreign counterdrug 
          activities.
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan 
          and South and Central Asian regions.
Sec. 1026. Report on United States support for Operation Bahamas, Turks 
          & Caicos.

         Subtitle D--Force Structure and Defense Policy Matters

Sec. 1031. Improvements to Quadrennial Defense Review.
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial 
          Defense Review Report.
Sec. 1033. Report on feasibility of establishing a regional combatant 
          command for Africa.
Sec. 1034. Determination of Department of Defense intratheater and 
          intertheater airlift requirements and sealift mobility 
          requirements.
Sec. 1035. Presidential report on improving interagency support for 
          United States 21st century national security missions and 
          interagency operations in support of stability, security, 
          transition, and reconstruction operations.

                           Subtitle E--Reports

Sec. 1041. Additional element in annual report on chemical and 
          biological warfare defense.
Sec. 1042. Report on biodefense human capital requirements in support of 
          biosafety laboratories.
Sec. 1043. Report on technologies for neutralizing or defeating threats 
          to military rotary-wing aircraft from portable air defense 
          systems and rocket-propelled grenades.
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the 
          National Airspace System.
Sec. 1045. Report on incentives to encourage certain members and former 
          members of the Armed Forces to serve in the Bureau of Customs 
          and Border Protection.
Sec. 1046. Repeal of certain report requirements.
Sec. 1047. Requirement for identification of recently enacted recurring 
          reporting requirements applicable to the Department of 
          Defense.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

Sec. 1051. Acceptance and retention of reimbursement from non-Federal 
          sources to defray Department of Defense costs of conferences.
Sec. 1052. Increased flexibility in use of funds for Joint Staff 
          exercises.
Sec. 1053. Prohibition on parking of funds.
Sec. 1054. Modification of authorities relating to the Special Inspector 
          General for Iraq Reconstruction.

                 Subtitle G--Matters Involving Detainees

Sec. 1061. Provision of information to Congress on certain criminal 
          investigations and prosecutions involving detainees.

                        Subtitle H--Other Matters

Sec. 1071. Technical and clerical amendments.
Sec. 1072. Revision to authorities relating to Commission on the 
          Implementation of the New Strategic Posture of the United 
          States.
Sec. 1073. Revised deadline for submission of final report of EMP 
          Commission.
Sec. 1074. Extension of returning worker exemption to H-2B numerical 
          limitation.
Sec. 1075. Patent term extensions for the badges of the American Legion, 
          the American Legion Women's Auxiliary, and the Sons of the 
          American Legion.
Sec. 1076. Use of the Armed Forces in major public emergencies.
Sec. 1077. Increased hunting and fishing opportunities for members of 
          the Armed Forces, retired members, and disabled veterans.

                     Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--
            (1) Authority.--Upon determination by the Secretary 
        of Defense that such action is necessary in the 
        national interest, the Secretary may transfer amounts 
        of authorizations made available to the Department of 
        Defense in this division for fiscal year 2007 between 
        any such authorizations for that fiscal year (or any 
        subdivisions thereof). Amounts of authorizations so 
        transferred shall be merged with and be available for 
        the same purposes as the authorization to which 
        transferred.
            (2) Limitation.--The total amount of authorizations 
        that the Secretary may transfer under the authority of 
        this section may not exceed $4,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL 
                    APPROPRIATIONS FOR FISCAL YEAR 2006.

    (a) Iraq, Afghanistan, and the Global War on Terror.--
Amounts authorized to be appropriated to the Department of 
Defense for fiscal year 2006 in the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) are 
hereby adjusted, with respect to any such authorized amount, by 
the amount by which appropriations pursuant to such 
authorization are increased by a supplemental appropriation, or 
decreased by a rescission, or both, or are increased by a 
transfer of funds, pursuant to title I of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006 (Public Law 109-234).
    (b) Hurricane Disaster Relief and Recovery.--Amounts 
authorized to be appropriated to the Department of Defense for 
fiscal year 2006 in the National Defense Authorization Act for 
Fiscal Year 2006 are hereby adjusted, with respect to any such 
authorized amount, by the amount by which appropriations 
pursuant to such authorization are increased by a supplemental 
appropriation, or decreased by a rescission, or both, or are 
increased by a transfer of funds, pursuant to title II of the 
Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Hurricane Recovery, 2006.
    (c) Border Security.--Amounts authorized to be appropriated 
to the Department of Defense for fiscal year 2006 in the 
National Defense Authorization Act for Fiscal Year 2006 are 
hereby adjusted, with respect to any such authorized amount, by 
the amount by which appropriations pursuant to such 
authorization are increased by a supplemental appropriation, or 
decreased by a rescission, or both, or are increased by a 
transfer of funds, pursuant to title V of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006.

SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS RELATING 
                    TO LOWER INFLATION.

    (a) Reduction.--The aggregate amount authorized to be 
appropriated by titles I, II, and III is the amount equal to 
the sum of all the amounts authorized to be appropriated by 
such titles reduced by $757,051,000.
    (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 a 
review of the inflation assumptions used in the preparation of 
the budget of the President for fiscal year 2007, as submitted 
to Congress pursuant to section 1005 of title 31, United States 
Code.
    (c) Allocation of Reduction.--The Secretary of Defense 
shall allocate the reduction required by subsection (a) among 
the amounts authorized to be appropriated for accounts in 
titles I, II, and III to reflect the extent to which net 
savings from lower-than-expected inflation are allocable to 
amounts authorized to be appropriated to such accounts.

SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER AUTHORITY.

    Section 1001(a)(2) of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3418) 
is amended by striking ``$3,500,000,000'' and inserting 
``$5,000,000,000''.

SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
                    FISCAL YEAR 2007.

    (a) Fiscal Year 2007 Limitation.--The total amount 
contributed by the Secretary of Defense in fiscal year 2007 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 2006, of funds appropriated for 
        fiscal years before fiscal year 2007 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), 
        $797,000 for the Civil Budget.
            (2) Of the amount provided in section 301(1), 
        $310,277,000 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. 1006. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST RATES.

    (a) Secretary of Defense Report.--
            (1) Report on budgeting for fuel cost 
        fluctuations.--Not later than February 15, 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 on 
        the fuel rate and cost projection used in the annual 
        Department of Defense budget presentation.
            (2) Matters To be included.--In the report under 
        paragraph (1), the Secretary shall--
                    (A) identify alternative approaches for 
                selecting fuel rates that would produce more 
                realistic estimates of amounts required to be 
                appropriated or otherwise made available for 
                the Department of Defense to accommodate fuel 
                rate fluctuations;
                    (B) discuss the advantages and 
                disadvantages of each approach identified 
                pursuant to subparagraph (A); and
                    (C) identify the Secretary's preferred 
                approach among the alternative identified 
                pursuant to subparagraph (A) and provide the 
                Secretary's rationale for preferring that 
                approach.
            (3) Identification of alternative approaches.--In 
        identifying alternative approaches pursuant to 
        paragraph (2)(A), the Secretary shall examine--
                    (A) approaches used by other Federal 
                departments and agencies; and
                    (B) the feasibility of using private 
                economic forecasting.
    (b) Comptroller General Review and Report.--The Comptroller 
General shall review the report under subsection (a), including 
the basis for the Secretary's conclusions stated in the report, 
and shall submit, not later than March 15, 2007, to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report 
containing the results of that review.

SEC. 1007. MODIFICATION OF DATE OF SUBMITTAL OF OMB/CBO REPORT ON 
                    SCORING OF OUTLAYS.

    Section 226(a) of title 10, United States Code, is amended 
by striking ``January 15 of each year'' and inserting ``April 1 
of each year''.

SEC. 1008. BUDGETING FOR ONGOING MILITARY OPERATIONS IN AFGHANISTAN AND 
                    IRAQ.

    The President's budget submitted to Congress pursuant to 
section 1105(a) of title 31, United States Code, for each 
fiscal year after fiscal year 2007 shall include--
            (1) a request for the appropriation of funds for 
        such fiscal year for ongoing military operations in 
        Afghanistan and Iraq;
            (2) an estimate of all funds expected to be 
        required in that fiscal year for such operations; and
            (3) a detailed justification of the funds 
        requested.

          Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. AIRCRAFT CARRIER FORCE STRUCTURE.

    (a) Reduction in Minimum Number of Operational Aircraft 
Carriers Required by Law.--Section 5062(b) of title 10, United 
States Code, is amended by striking ``12'' and inserting 
``11''.
    (b) Required Certification Before Retirement of U.S.S. John 
F. Kennedy.--The Secretary of the Navy may not retire the 
U.S.S. John F. Kennedy (CV-67) from operational status unless 
the Secretary of Defense first submits to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives the Secretary's 
certification that the Secretary has received--
            (1) a formal notice from the Secretary of Homeland 
        Security that the Department of Homeland Security does 
        not desire to maintain and operate that vessel; and
            (2) a formal notice from the North Atlantic Treaty 
        Organization that the North Atlantic Treaty 
        Organization does not desire to maintain and operate 
        that vessel.
    (c) Conditions on Status of U.S.S. John F. Kennedy if 
Retired.--Upon the retirement from operational status of the 
U.S.S. John F. Kennedy (CV-67), the Secretary of the Navy--
            (1) while the vessel is in the custody and control 
        of the Navy, shall maintain that vessel in a state of 
        preservation (including configuration control, 
        dehumidification, cathodic protection, and maintenance 
        of spares) that would allow for reactivation of that 
        vessel in the event that the vessel was needed in 
        response to a national emergency; and
            (2) if the vessel is transferred from the custody 
        and control of the Navy, shall require as a condition 
        of such transfer that--
                    (A) if the President declares a national 
                emergency pursuant to the National Emergencies 
                Act (50 U.S.C. 1601 et seq.), the transferee 
                shall, upon request of the Secretary of 
                Defense, return the vessel to the United 
                States; and
                    (B) in such a case (unless the transferee 
                is otherwise notified by the Secretary), title 
                to the vessel shall revert immediately to the 
                United States.

SEC. 1012. SENSE OF CONGRESS ON NAMING THE CVN-78 AIRCRAFT CARRIER AS 
                    THE U.S.S. GERALD R. FORD.

    (a) Findings.--Congress makes the following findings:
            (1) Gerald R. Ford has served his country with 
        honor and distinction for the past 64 years, and 
        continues to serve.
            (2) Gerald R. Ford was commissioned in the Naval 
        Reserve in 1942 and served valiantly at sea on the 
        U.S.S. Monterey (CVL-26) during World War II, taking 
        part in major operations in the Pacific, including at 
        Makin Island, Kwajalein, Truk, Saipan, and the 
        Philippine Sea.
            (3) Gerald R. Ford received 9 engagement stars and 
        2 bronze stars for his service in the Navy during World 
        War II.
            (4) Gerald R. Ford was first elected to the House 
        of Representatives in 1948.
            (5) During 25 years of service in the House of 
        Representatives, Gerald R. Ford distinguished himself 
        by an exemplary record for character, decency, and 
        trustworthiness.
            (6) Throughout his service in the House of 
        Representatives, Gerald R. Ford was an ardent proponent 
        of strong national defense and international leadership 
        by the United States.
            (7) From 1965 to 1973, Gerald R. Ford served as 
        minority leader of the House of Representatives, 
        raising the standard for bipartisanship in his tireless 
        fight for freedom, hope, and justice.
            (8) In 1973, Gerald R. Ford was appointed by 
        President Nixon to the office of Vice President of the 
        United States under the 25th Amendment to the 
        Constitution, having been confirmed by overwhelming 
        majorities in both Houses of Congress.
            (9) On August 9, 1974, Gerald R. Ford became the 
        38th President of the United States, taking office 
        during one of the most challenging periods in the 
        history of the United States.
            (10) As President from August 9, 1974, to January 
        20, 1977, Gerald R. Ford restored the faith of the 
        people of the United States in the office of the 
        President through his steady leadership, courage, and 
        ultimate integrity.
            (11) As President, Gerald R. Ford helped restore 
        the prestige of the United States in the world 
        community by working to achieve peace in the Middle 
        East, preserve detente with the Soviet Union, and set 
        new limits on the spread of nuclear weapons.
            (12) As President, Gerald R. Ford served as 
        Commander in Chief of the Armed Forces with great 
        dignity, supporting a strong Navy and a global military 
        presence for the United States and honoring the members 
        of the Armed Forces.
            (13) Since leaving the office of President, Gerald 
        R. Ford has been an international ambassador of 
        American goodwill, a noted scholar and lecturer, a 
        strong supporter of human rights, and a promoter of 
        higher education.
            (14) Gerald R. Ford was awarded the Medal of 
        Freedom and the Congressional Gold Medal in 1999 in 
        recognition of his contribution to the Nation.
            (15) As President, Gerald R. Ford bore the weight 
        of a constitutional crisis and guided the Nation on a 
        path of healing and restored hope, earning forever the 
        enduring respect and gratitude of the Nation.
    (b) Naming of CVN-78 Aircraft Carrier.--It is the sense of 
Congress that the nuclear-powered aircraft carrier of the Navy 
designated as CVN-78 should be named the U.S.S. Gerald R. Ford.

SEC. 1013. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED UPON 
                    VESSEL CLASS.

    Section 7307(a) of title 10, United States Code, is 
amended--
            (1) by striking ``disposition of that vessel is 
        approved'' and inserting ``disposal of that vessel, or 
        of a vessel of the class of that vessel, is 
        authorized''; and
            (2) by adding at the end the following new 
        sentences: ``In the case of an authorization by law for 
        the disposal of such a vessel that names a specific 
        vessel as being authorized for such disposal, the 
        Secretary of Defense may substitute another vessel of 
        the same class, if the vessel substituted has virtually 
        identical capabilities as the named vessel. In the case 
        of an authorization by law for the disposal of vessels 
        of a specified class, the Secretary may dispose of 
        vessels of that class pursuant to that authorization 
        only in the number of such vessels specified in that 
        law as being authorized for disposal.''.

SEC. 1014. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN FOREIGN 
                    SHIPYARDS.

    Section 7310(a) of title 10, United States Code, is 
amended--
            (1) by inserting ``or Guam'' in the subsection 
        heading after ``United States''; and
            (2) by inserting ``or Guam'' after ``in the United 
        States''.

SEC. 1015. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT FOR GUAM 
                    SHIPYARD.

    (a) Report Required.--Not later than December 15, 2006, the 
Secretary of the Navy shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Service of 
the House of Representatives a report describing the options 
available with respect to the Guam Shipyard in Santa Rita, 
Guam.
    (b) Contents of Report.--The report required under 
subsection (a) shall include the following:
            (1) An evaluation of the performance of the 
        entities that, as of the date of the enactment of this 
        Act, are the lessee and operators of the Guam Shipyard 
        under the terms of the lease in effect on the date of 
        the enactment of this Act.
            (2) An evaluation of each of the following options 
        with respect to the Guam Shipyard lease:
                    (A) Terminating the remaining term of the 
                lease and issuing a new 25 year lease with the 
                same entity.
                    (B) Terminating the remaining term of the 
                lease with respect to the approximately 73 
                acres within the Guam Shipyard that are 
                required for mission requirements and leaving 
                the remaining term of the lease in effect with 
                respect to the approximately 27 acres within 
                the Facility that are not required for mission 
                requirements.
                    (C) Terminating the remaining term of the 
                lease and negotiating a new use arrangement 
                with a different lessee or operator. The new 
                use arrangement options shall include:
                            (i) Government-owned and 
                        government-operated facility.
                            (ii) Government-owned and 
                        contractor-operated facility.
                            (iii) Government-leased property 
                        for contractor-owned and contractor-
                        operated facility.
    (c) Options for New Use Arrangements.--In evaluating the 
options under subsection (b)(2)(C), the Secretary of the Navy 
shall include an evaluation of each of the following:
            (1) The anticipated future military vessel repair 
        and workload on Guam in relation to the 2006 
        Quadrennial Defense Review, issued on February 6, 2006, 
        pursuant to section 118 of title 10, United States 
        Code.
            (2) The anticipated military vessel repair and 
        workload attributable to vessels comprising the 
        Maritime Prepositioning Ship Squadron Three.
            (3) The anticipated military vessel repair and 
        workload due to a change in section 7310 of title 10, 
        United States Code, that would designate Guam as a 
        United States homeport facility.
            (4) The expected workload if the submarine tender 
        the U.S.S. Frank Cable (AS-40) is decommissioned.
            (5) The estimated reacquisition costs of 
        transferred Government property.
            (6) Costs to improve floating dry dock mooring 
        certification and required nuclear certification for 
        the floating dry dock designated as AFDB-8 to conduct 
        the following maintenance:
                    (A) Dry-docking selected restricted 
                availabilities and mid-term availability for 
                attack submarines.
                    (B) Dry-docking phased maintenance 
                availabilities for amphibious vessels, 
                including to amphibious assault ships, dock 
                landing ships, and amphibious transport dock 
                ships.
                    (C) Dry-docking phased maintenance 
                availabilities for surface combatants, 
                including cruisers, destroyers, and frigates.
            (7) Commercial opportunities for development to 
        expand commercial ship repair and general industrial 
        services, given anti-terrorism force protection 
        requirements at the current facility.
            (8) Estimates from three contractors for the 
        maintenance and repair costs associated with executing 
        a multiship, multioption contract that would generate a 
        minimum 60,000 manday commitment for the Department of 
        the Navy and Military Sealift Command vessels.
            (9) A projection of the maintenance and repair 
        costs associated with executing a minimum 60,000 
        mandays for the Department of the Navy and Military 
        Sealift Command vessels as a Government-owned and 
        Government-operated Navy ship repair facility.
    (d) Input From Contractors.--In evaluating the options 
under clauses (ii) and (iii) of subsection (b)(2)(C) for the 
purposes of paragraphs (1), (2), and (3) of subsection (c), the 
Secretary of the Navy shall seek input from at least three 
contractors on the viability of operations based on the 
projected workload fiscal years 2008 through 2013.
    (e) Recommendations.--The Secretary of the Navy shall 
include in the report required under subsection (a) the 
following:
            (1) The recommendations of the Secretary with 
        respect to continuation of the existing Guam Shipyard 
        lease based on evaluations conducted pursuant to 
        subsection (b)(1).
            (2) The option under subsection (b)(2) that the 
        Secretary recommends for fiscal year 2008.
    (f) GAO Report.--Not later than March 1, 2007, 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 evaluating the report 
submitted by the Secretary of the Navy under subsection (a). 
The report shall include the option under subsection (b)(2) 
that the Secretary recommends for fiscal year 2008.

SEC. 1016. ASSESSMENTS OF NAVAL VESSEL CONSTRUCTION EFFICIENCIES AND OF 
                    EFFECTIVENESS OF SPECIAL CONTRACTOR INCENTIVES.

    (a) Assessment Required.--The Secretary of the Navy shall 
conduct an assessment of each of the aspects of naval vessel 
construction specified in subsection (b) in order to 
determine--
            (1) what inefficiencies exist in those aspects of 
        naval vessel construction;
            (2) what innovative design and production 
        technologies, processes, and performance incentives are 
        warranted to alleviate the inefficiencies so 
        identified; and
            (3) what action the Secretary intends to take to 
        facilitate the adoption by the shipbuilding industry of 
        the technologies, processes, and performance incentives 
        identified under paragraph (2).
    (b) Aspects To Be Assessed.--Subsection (a) applies with 
respect to the following aspects of naval vessel construction:
            (1) Program design, engineering, and production 
        engineering.
            (2) Organization and operating systems.
            (3) Steelwork production.
            (4) Ship construction and outfitting.
            (5) Combat systems development, integration, and 
        installation.
    (c) Consideration of Prior Assessments.--In making the 
assessments required by subsection (a), the Secretary shall 
take into consideration the results of--
            (1) the study of the cost effectiveness of the ship 
        construction program of the Navy required by section 
        1014 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (Public Law 108-
        375; 118 Stat. 2041);
            (2) the assessment of the United States naval 
        shipbuilding industry required by section 254 of the 
        National Defense Authorization Act for Fiscal Year 2006 
        (Public Law 109-163; 119 Stat. 3180); and
            (3) any prior assessment performed by or on behalf 
        of the Department of Defense.
    (d) Special Contractor Incentives.--In addition to the 
assessments under subsection (a), the Secretary shall conduct 
an assessment of the effectiveness of the use in naval vessel 
construction contracts of special contract incentives for 
investment by the contractor in facilities and process 
improvement projects. Such assessment shall include the 
following:
            (1) A description of the intent of the use of such 
        incentives in naval vessel construction contracts.
            (2) A description of the process and criteria used 
        by the Secretary for evaluation of proposed projects to 
        receive such incentives in naval vessel construction 
        contracts and for the selection among such proposed 
        projects for inclusion of incentives in such contracts.
            (3) For each facility or process improvement 
        project for which funds were provided in a naval vessel 
        construction contract during the five-year period 
        ending on the date of the enactment of this Act 
        (including the facility or process improvement project 
        contract incentives incorporated in the Virginia-class 
        submarine construction contract and in the CVN-21 
        construction contract)--
                    (A) a description of the facility or 
                process improvement project proposed by the 
                contractor;
                    (B) the amount expended (or to be expended) 
                by the United States for the project under the 
                contract; and
                    (C) the estimated or actual return on 
                investment for the amounts referred to in 
                subparagraph (B).
            (4) The plans of the Secretary of the Navy to use 
        similar contract incentives in ongoing and future 
        shipbuilding programs.
            (5) Any recommendation by the Secretary for the 
        enactment of legislation that might increase the 
        effectiveness of, or expand the use of, such contract 
        incentives.
    (e) Report.--Not later than April 1, 2007, the Secretary of 
the Navy shall submit to the congressional defense committees a 
report on--
            (1) the Secretary's assessments of naval vessel 
        construction efficiencies under subsection (a), 
        addressing each of the matters specified in that 
        subsection; and
            (2) the Secretary's assessment of the effectiveness 
        of special incentives for contractor investment in 
        facilities and process improvement projects under 
        subsection (d).

SEC. 1017. OBTAINING CARRIAGE BY VESSEL: CRITERION REGARDING OVERHAUL, 
                    REPAIR, AND MAINTENANCE OF VESSELS IN THE UNITED 
                    STATES.

    (a) Acquisition Policy.--In order to maintain the national 
defense industrial base, the Secretary of Defense shall issue 
an acquisition policy that establishes, as a criterion required 
to be considered in obtaining carriage by vessel of cargo for 
the Department of Defense, the extent to which an offeror of 
such carriage had overhaul, repair, and maintenance work for 
covered vessels of the offeror performed in shipyards located 
in the United States.
    (b) Covered Vessels.--A vessel is a covered vessel of an 
offeror under this section if the vessel is--
            (1) owned, operated, or controlled by the offeror; 
        and
            (2) qualified to engage in the carriage of cargo in 
        the coastwise or non-contiguous trade under section 27 
        of the Merchant Marine Act, 1920 (46 U.S.C. 883), 
        section 12106 of title 46, United States Code, and 
        section 2 of the Shipping Act, 1916 (46 U.S.C. App. 
        802).
    (c) Application of Policy.--The acquisition policy shall 
include rules providing for application of the policy to 
covered vessels as expeditiously as is practicable based on the 
nature of carriage obtained, and by no later than June 1, 2007.
    (d) Regulations.--
            (1) In general.--The Secretary shall prescribe 
        regulations as necessary to carry out the acquisition 
        policy and submit such regulations to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives, by not later than June 1, 2007.
            (2) Interim regulations.--
                    (A) In general.--The Secretary may 
                prescribe interim regulations as necessary to 
                carry out the acquisition policy. For this 
                purpose, the Secretary is excepted from 
                compliance with the notice and comment 
                requirements of section 553 of title 5, United 
                States Code.
                    (B) Submission to congress.--Upon the 
                issuance of interim regulations under this 
                paragraph, the Secretary shall submit to the 
                Committees on Armed Services of the Senate and 
                the House of Representatives the interim 
                regulations and a description of the 
                acquisition policy developed (or being 
                developed) under subsection (a).
                    (C) Expiration.--All interim regulations 
                prescribed under the authority of this 
                paragraph that are not earlier superseded by 
                final regulations shall expire no later than 
                June 1, 2007.
    (e) Annual Report.--The Secretary, acting through the 
United States Transportation Command, shall annually submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report regarding overhaul, repair, and 
maintenance performed on covered vessels of each offeror of 
carriage to which the acquisition policy applies.
    (f) Definitions.--In this section:
            (1) Foreign shipyard.--The term ``foreign 
        shipyard'' means a shipyard that is not located in the 
        United States.
            (2) United states.--The term ``United States'' 
        means--
                    (A) any State of the United States; and
                    (B) Guam.

SEC. 1018. RIDING GANG MEMBER REQUIREMENTS.

    (a) Requirement for Charters and Contracts.--
            (1) In general.--The Secretary of Defense may not 
        award, renew, extend, or exercise an option to extend 
        any charter of a vessel documented under chapter 121 of 
        title 46, United States Code, for the Department of 
        Defense, or any contract for the carriage of cargo by a 
        vessel documented under that chapter for the Department 
        of Defense, unless the charter or contract, 
        respectively, includes provisions that allow riding 
        gang members to perform work on the vessel during the 
        effective period of the charter or contract only under 
        terms, conditions, restrictions, and requirements that, 
        except as provided in paragraphs (2) and (3), are 
        substantially the same as those that apply under 
        section 8106 of title 46, United States Code, as in 
        effect immediately before the enactment of this Act, 
        with respect to a vessel referred to in that section.
            (2) Limitation.--For purposes of paragraph (1) of 
        this subsection, subsections (a)(1)(A)(ii), (c), and 
        (d) of section 8106 of title 46, United States Code, 
        shall not apply with respect to a charter or contract 
        referred to in paragraph (1).
            (3) Merchant mariner's document required.--The 
        Secretary of Defense shall include in the provisions 
        required under paragraph (1) a requirement that each 
        riding gang member who performs work on the vessel must 
        hold a merchant mariner's document issued under chapter 
        73 of title 46, United States Code.
            (4) Riding gang member defined.--In this subsection 
        the term ``riding gang member'' has the meaning that 
        term has in section 8106 of title 46, United States 
        Code, as in effect immediately before the enactment of 
        this Act.
    (b) Exemptions by Secretary of Defense.--
            (1) In general.--The Secretary of Defense may issue 
        regulations that exempt from the charter or contract 
        provisions required under subsection (a) any individual 
        who is on a vessel for purposes other than engaging in 
        the operation or maintenance of the vessel, including 
        an individual who is--
                    (A) one of the personnel who accompany, 
                supervise, guard, and maintain unit equipment 
                aboard a ship, commonly referred to as 
                supercargo personnel;
                    (B) one of the force protection personnel 
                of the vessel;
                    (C) a specialized repair technician; or
                    (D) otherwise required by the Secretary of 
                Defense to be aboard the vessel.
            (2) Background check.--Such regulations shall 
        include a requirement that any individual who is exempt 
        under the regulations must pass a background check 
        before going aboard the vessel, unless the individual 
        holds a merchant mariner's document issued under 
        chapter 73 of title 46, United States Code.
            (3) Exempted individual not treated as in addition 
        to the crew.--An individual exempted under paragraph 
        (1) shall not be counted as an individual in addition 
        to the crew for the purposes of section 3304 of title 
        46, United States Code.

SEC. 1019. AUTHORITY TO TRANSFER SS ARTHUR M. HUDDELL TO THE GOVERNMENT 
                    OF GREECE.

    (a) Authority To Transfer.--The President is authorized to 
transfer the ex-Liberty ship SS Arthur M. Huddell to the 
Government of Greece in accordance with such terms and 
conditions as the President may determine.
    (b) Additional Equipment.--The President is authorized to 
convey additional equipment from other obsolete vessels of the 
National Defense Reserve Fleet to assist the Government of 
Greece in using the vessel referred to in subsection (a) as a 
museum exhibit.
    (c) Repair and Refurbishment in United States Shipyard.--To 
the maximum extent practicable, the President shall require, as 
a condition of the transfer of the vessel referred to in 
subsection (a), that the Government of Greece have such repair 
or refurbishment of the vessel as is needed performed at a 
shipyard located in the United States.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY OF DEPARTMENT OF DEFENSE TO PROVIDE 
                    ADDITIONAL SUPPORT FOR COUNTERDRUG ACTIVITIES OF 
                    OTHER GOVERNMENTAL AGENCIES.

    Section 1004(a) of the National Defense Authorization Act 
for Fiscal Year 1991 (10 U.S.C. 374 note) is amended by 
striking ``through 2006'' and inserting ``through 2011''.

SEC. 1022. EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE AUTHORITY 
                    TO PROVIDE SUPPORT FOR COUNTER-DRUG ACTIVITIES OF 
                    CERTAIN FOREIGN GOVERNMENTS.

    (a) Extension of Authority.--Paragraph (2) of subsection 
(a) of section 1033 of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881), as 
amended by section 1021 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136: 117 Stat. 1593), 
is amended by striking ``September 30, 2006'' and inserting 
``September 30, 2008''.
    (b) Additional Governments Eligible To Receive Support.--
Subsection (b) of such section is amended by adding at the end 
the following new paragraphs:
            ``(10) The Government of Azerbaijan.
            ``(11) The Government of Kazakhstan.
            ``(12) The Government of Kyrgyzstan.
            ``(13) The Government of Armenia.
            ``(14) The Government of Guatemala.
            ``(15) The Government of Belize.
            ``(16) The Government of Panama.''.
    (c) Types of Support.--Subsection (c) of such section is 
amended--
            (1) in paragraph (2), by inserting ``, vehicles, 
        and, subject to section 484(a) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2291c(a)), aircraft'' 
        after ``patrol boats''; and
            (2) by adding at the end the following new 
        paragraphs:
            ``(4) The transfer of detection, interception, 
        monitoring, and testing equipment.
            ``(5) For the Government of Afghanistan only, 
        individual and crew-served weapons of 50 caliber or 
        less and ammunition for such weapons for counter-
        narcotics security forces.''.
    (d) Maximum Annual Amount of Support.--Subsection (e)(2) of 
such section is amended--
            (1) by striking ``or $40,000,000'' and inserting 
        ``$40,000,000''; and
            (2) by inserting before the period at the end the 
        following: ``, or $60,000,000 during either of the 
        fiscal years 2007 and 2008''.

SEC. 1023. EXTENSION OF AUTHORITY TO SUPPORT UNIFIED COUNTERDRUG AND 
                    COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

    Section 1021 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 2042) is amended--
            (1) in subsection (a)(1), by striking ``and 2006'' 
        and inserting ``through 2008''; and
            (2) in subsection (c), by striking ``and 2006'' and 
        inserting ``through 2008''.

SEC. 1024. CONTINUATION OF REPORTING REQUIREMENT REGARDING DEPARTMENT 
                    OF DEFENSE EXPENDITURES TO SUPPORT FOREIGN 
                    COUNTERDRUG ACTIVITIES.

    (a) Two-Year Extension of Reporting Requirement.--Section 
1022 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-255), as amended by section 1022 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107; 115 Stat. 1215) and section 1021 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163; 119 Stat. 3426), is further amended by striking ``Not 
later than April 15, 2006,'' and inserting ``(a) Reports 
Required.--Not later than April 15, 2006, February 15, 2007, 
and February 15, 2008,''.
    (b) Additional Information to Be Included.--Such section is 
further amended--
            (1) by designating the second sentence as 
        subsection (b) and striking ``The report'' and 
        inserting ``Information to Be Provided.--Each report 
        under this section''; and
            (2) in paragraph (2), by inserting before the 
        period at the end the following: ``and the amount of 
        funds provided for each type of counterdrug activity 
        assisted''.
    (c) Form and Submission of Reports.--Such section is 
further amended--
            (1) in subsection (a), as designated by subsection 
        (a) of this section, by striking ``the congressional 
        defense committees'' and inserting ``the congressional 
        committees specified in subsection (d)''; and
            (2) by adding at the end the following new 
        subsections:
    ``(c) Form of Reports.--Each report under this section 
shall be submitted in both classified and unclassified form.
    ``(d) Specified Committees.--The congressional committees 
specified in this subsection are the following:
            ``(1) The Committee on Armed Services, the 
        Committee on Foreign Relations, and the Committee on 
        Appropriations of the Senate.
            ``(2) The Committee on Armed Services, the 
        Committee on International Relations, and the Committee 
        on Appropriations of the House of Representatives.''.

SEC. 1025. REPORT ON INTERAGENCY COUNTER-NARCOTICS PLAN FOR AFGHANISTAN 
                    AND SOUTH AND CENTRAL ASIAN REGIONS.

    (a) Report Required.--Not later than December 31, 2006, the 
Secretary of Defense shall submit to the congressional defense 
committees a report updating the interagency counter-narcotics 
implementation plan for Afghanistan and the South and Central 
Asian regions, including Turkmenistan, Uzbekistan, Tajikistan, 
Kyrgyzstan, Kazakhstan, Iran, Armenia, Azerbaijan, Pakistan, 
India, and China.
    (b) Consultation.--The report under this section shall be 
prepared in consultation with the Secretary of State, the 
Administrator of the Agency for International Development, and 
the Director of the Drug Enforcement Administration.
    (c) Matters To Be Included.--The report shall include the 
following for each foreign government covered by the report:
            (1) A consideration of what activities should be 
        reallocated among the United States and the foreign 
        government based on the capabilities of each department 
        and agency involved.
            (2) Any measures necessary to clarify the legal 
        authority required to complete the mission.
            (3) The measures necessary for the United States to 
        successfully complete its counter-narcotics efforts in 
        Afghanistan and the South and Central Asian regions, 
        including an assessment of whether sufficient personnel 
        and other resources, including infrastructure and 
        development initiatives, are being made available by 
        the United States and the foreign government.
            (4) Current and proposed United States funding to 
        support counter-narcotics activities of the foreign 
        government.

SEC. 1026. REPORT ON UNITED STATES SUPPORT FOR OPERATION BAHAMAS, TURKS 
                    & CAICOS.

    (a) Findings.--Congress makes the following findings:
            (1) In 1982 the United States Government created 
        Operation Bahamas, Turks & Caicos (OPBAT) to counter 
        the smuggling of cocaine into the United States.
            (2) According to the Drug Enforcement Agency, an 
        estimated 80 percent of the cocaine entering the United 
        States in the 1980s came through the Bahamas, whereas, 
        according to the Office of National Drug Control 
        Policy, only an estimated 10 percent comes through the 
        Bahamas today.
            (3) According to the Drug Enforcement Agency, more 
        than 80,000 kilograms of cocaine and nearly 700,000 
        pounds of marijuana have been seized in Operation 
        Bahamas, Turks & Caicos since 1986, with a combined 
        street value of approximately two billion dollars.
            (4) The Army has provided military airlift to law 
        enforcement officials under Operation Bahamas, Turks & 
        Caicos to create an effective, reliable, and immediate 
        response capability for drug interdiction. This support 
        is largely responsible for the decline in cocaine 
        shipments to the United States through the Bahamas.
            (5) The Bahamas is an island nation composed of 
        approximately 700 islands and keys, which makes 
        aviation assets the best and most efficient method of 
        transporting law enforcement agents and interdicting 
        smugglers.
            (6) It is in the interests of the United States to 
        maintain the results of the successful Operation 
        Bahamas, Turks & Caicos program and prevent drug 
        smugglers from rebuilding their operations through the 
        Bahamas.
    (b) Report on United States Government Support for OPBAT.--
            (1) Report on decision to withdraw.--Not later than 
        30 days before implementing a decision to withdraw 
        Department of Defense helicopters from Operation 
        Bahamas, Turks & Caicos, the Secretary of Defense shall 
        submit to the Congress a report outlining the plan for 
        the coordination of the Operation Bahamas, Turks & 
        Caicos mission, at the same level of effectiveness, 
        using other United States Government assets.
            (2) Consultation.--The Secretary of Defense shall 
        consult with the Secretary of State, the Attorney 
        General, and the Secretary of Homeland Security, and 
        with other appropriate officials of the United States 
        Government, in preparing the report under paragraph 
        (1).
            (3) Elements.--The report under paragraph (1) on 
        the withdrawal of equipment referred to in that 
        paragraph shall include the following:
                    (A) An explanation of the military 
                justification for the withdrawal of the 
                equipment.
                    (B) An assessment of the availability of 
                other options (including other Government 
                helicopters) to provide the capability being 
                provided by the equipment to be withdrawn.
                    (C) An explanation of how each option 
                specified under subparagraph (B) will provide 
                the capability currently provided by the 
                equipment to be withdrawn.
                    (D) An assessment of the potential use of 
                unmanned aerial vehicles in Operation Bahamas, 
                Turks & Caicos, including the capabilities of 
                such vehicles and any advantages or 
                disadvantages associated with the use of such 
                vehicles in that operation, and a 
                recommendation on whether or not to deploy such 
                vehicles in that operation.

         Subtitle D--Force Structure and Defense Policy Matters

SEC. 1031. IMPROVEMENTS TO QUADRENNIAL DEFENSE REVIEW.

    (a) Findings.--Congress finds that the comprehensive 
examination of the defense program and policies of the United 
States that is undertaken by the Security Defense every four 
years pursuant to section 118 of title 10, United States Code, 
known as the Quadrennial Defense Review, is--
            (1) vital in laying out the strategic military 
        planning and threat objectives of the Department of 
        Defense; and
            (2) critical to identifying the correct mix of 
        military planning assumptions, defense capabilities, 
        and strategic focuses for the Armed Forces.
    (b) Sense of Congress.--It is the sense of Congress that 
the Quadrennial Defense Review is intended to provide more than 
an overview of global threats and the general strategic 
orientation of the Department of Defense.
    (c) Conduct of Review.--Subsection (b) of section 118 of 
title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph 
        (2);
            (2) by striking the period at the end of paragraph 
        (3) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(4) to make recommendations that are not 
        constrained to comply with the budget submitted to 
        Congress by the President pursuant to section 1105 of 
        title 31.''.
    (d) Additional Elements in Report to Congress.--Subsection 
(d) of such section is amended--
            (1) in paragraph (1), by inserting ``, the 
        strategic planning guidance,'' after ``United States'';
            (2) by redesignating paragraphs (9) through (15) as 
        paragraphs (10), (11), (12), (13), (14), (15), and 
        (17), respectively;
            (3) by inserting after paragraph (8) the following 
        new paragraph (9):
            ``(9) The specific capabilities, including the 
        general number and type of specific military platforms, 
        needed to achieve the strategic and warfighting 
        objectives identified in the review.''; and
            (4) by inserting after paragraph (15), as 
        redesignated by paragraph (2), the following new 
        paragraph:
            ``(16) The homeland defense and support to civil 
        authority missions of the active and reserve 
        components, including the organization and capabilities 
        required for the active and reserve components to 
        discharge each such mission.''.
    (e) CJCS Review.--Subsection (e)(1) of such section is 
amended by inserting before the period at the end the 
following: ``and a description of the capabilities needed to 
address such risk''.
    (f) Independent Assessment.--Such section is further 
amended by adding at the end the following new subsection:
    ``(f) Independent Panel Assessment.--(1) Not later than six 
months before the date on which the report on a Quadrennial 
Defense Review is to be submitted under subsection (d), the 
Secretary of Defense shall establish a panel to conduct an 
assessment of the quadrennial defense review.
    ``(2) Not later than three months after the date on which 
the report on a quadrennial defense review is submitted under 
subsection (d) to the congressional committees named in that 
subsection, the panel appointed under paragraph (1) shall 
submit to those committees an assessment of the review, 
including the recommendations of the review, the stated and 
implied assumptions incorporated in the review, and the 
vulnerabilities of the strategy and force structure underlying 
the review. The assessment of the panel shall include analyses 
of the trends, asymmetries, and concepts of operations that 
characterize the military balance with potential adversaries, 
focusing on the strategic approaches of possible opposing 
forces.''.

SEC. 1032. QUARTERLY REPORTS ON IMPLEMENTATION OF 2006 QUADRENNIAL 
                    DEFENSE REVIEW REPORT.

    (a) Reports Required.--Not later than 30 days after the end 
of each fiscal-year quarter, 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 implementation of recommendations described in 
the Department of Defense 2006 Quadrennial Defense Review 
Report.
    (b) Contents of Reports.--Each quarterly report under 
subsection (a) shall, at a minimum--
            (1) describe the processes and procedures 
        established by the Secretary of Defense to examine the 
        various recommendations referred to in subsection (a);
            (2) discuss implementation plans and strategies for 
        each area highlighted by the Quadrennial Defense Review 
        Report;
            (3) provide relevant information about the status 
        of such implementation; and
            (4) indicate changes in the Secretary's assessment 
        of the defense strategies or capabilities required 
        since the publication of the 2006 Quadrennial Defense 
        Review Report.
    (c) Initial Report.--The first report under subsection (a) 
shall be submitted not later than January 31, 2007.
    (d) Expiration of Requirement.--The reporting requirement 
in subsection (a) shall terminate upon the earlier of the 
following:
            (1) The date of the publication of the next 
        Quadrennial Defense Review Report after the date of the 
        enactment of this Act pursuant to section 118 of title 
        10, United States Code.
            (2) The date of transmission of a written 
        notification by the Secretary of Defense to the 
        Committee on Armed Services of the Senate and the 
        Committee on Armed Services of the House of 
        Representatives that implementation of the 
        recommendations of the 2006 Quadrennial Defense Review 
        is complete.

SEC. 1033. REPORT ON FEASIBILITY OF ESTABLISHING A REGIONAL COMBATANT 
                    COMMAND FOR AFRICA.

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report on the establishment under chapter 6 
of title 10, United States Code, of a new unified combatant 
command with a geographic area of responsibility consisting of 
the African continent and adjacent waters.
    (b) Content.--The report under subsection (a) shall 
include--
            (1) a study on the feasibility and advisability of 
        establishing a combatant command for Africa as 
        described in subsection (a);
            (2) an assessment of the benefits and problems 
        associated with establishing such a command; and
            (3) an estimate of the costs, time, and resources 
        needed to establish such a command.

SEC. 1034. DETERMINATION OF DEPARTMENT OF DEFENSE INTRATHEATER AND 
                    INTERTHEATER AIRLIFT REQUIREMENTS AND SEALIFT 
                    MOBILITY REQUIREMENTS.

    (a) Determination of Requirements.--The Secretary of 
Defense, as part of the 2006 Mobility Capabilities Study, shall 
determine Department of Defense mobility requirements as 
follows:
            (1) The Secretary shall determine intratheater and 
        intertheater airlift mobility requirements (stated in 
        terms of million ton miles per day) and sealift 
        mobility requirements (stated in terms of tons) 
        necessary to support warfighting objectives of the 
        commanders of the combatant commands for each scenario 
        that was modeled in the 2005 Mobility Capabilities 
        Study and each scenario that is modeled in the 2006 
        Mobility Capabilities Study.
            (2) The Secretary shall determine intratheater and 
        intertheater airlift mobility requirements (stated in 
        terms of million ton miles per day) and sealift 
        mobility requirements (stated in terms of tons) for 
        executing the National Military Strategy with a low 
        acceptable level of risk, with a medium acceptable 
        level of risk, and with a high acceptable level of 
        risk, for each of the following:
                    (A) Two overlapping ``swift defeat'' 
                campaigns.
                    (B) The Global War on Terrorism.
                    (C) Baseline security posture operations.
                    (D) Homeland defense and civil support 
                operations.
                    (E) Special operations missions.
                    (F) Global long-range strike missions.
                    (G) Strategic nuclear missions.
    (b) Report.--Not later than February 1, 2007, the Secretary 
of Defense shall submit to the congressional defense committees 
a report providing the mobility requirements determined 
pursuant to subsection (a). As part of the report, the 
Secretary shall--
            (1) set forth each mobility requirement specified 
        in paragraph (1) or (2) of subsection (a); and
            (2) compare those defined mobility requirements to 
        the Department of Defense's mobility capability program 
        of record for intertheater and intratheater airlift and 
        sealift.
    (c) Mobility Capabilities Studies.--For purposes of this 
section:
            (1) 2006 mobility capabilities study.--The term 
        ``2006 Mobility Capabilities Study'' means the studies 
        conducted by the Secretary of Defense and the Joint 
        Staff during 2006 as a follow-on to the 2005 Mobility 
        Capabilities Study.
            (2) 2005 mobility capabilities study.--The term 
        ``2005 Mobility Capabilities Study'' means the 
        comprehensive Mobility Capabilities Study completed in 
        December 2005 and conducted through the Office of 
        Program Analysis and Evaluation of the Department of 
        Defense to assess mobility needs for all aspects of the 
        National Defense Strategy.

SEC. 1035. PRESIDENTIAL REPORT ON IMPROVING INTERAGENCY SUPPORT FOR 
                    UNITED STATES 21ST CENTURY NATIONAL SECURITY 
                    MISSIONS AND INTERAGENCY OPERATIONS IN SUPPORT OF 
                    STABILITY, SECURITY, TRANSITION, AND RECONSTRUCTION 
                    OPERATIONS.

    (a) Report Required.--Not later than April 1, 2007, the 
President shall submit to Congress a report on building 
interagency capacity and enhancing the integration of civilian 
capabilities of the executive branch with the capabilities of 
the Armed Forces to enhance the achievement of United States 
national security goals and objectives.
    (b) Report Elements.--The report under subsection (a) shall 
include the following:
            (1) An assessment of the capacity and capabilities 
        required within the civilian agencies of the United 
        States Government to achieve the full range of United 
        States national security goals and objectives, to 
        defend United States national security interests, and, 
        in particular, to coordinate with the Armed Forces 
        where deployed, including capacity and capabilities in 
        at least the following areas:
                    (A) Organizations and organizational 
                structures, including a description of the 
                roles, responsibilities, and authorities;
                    (B) Planning and assessment capabilities;
                    (C) Information sharing policies, 
                practices, and systems;
                    (D) Leadership issues, including command 
                and control of forces and personnel in the 
                field;
                    (E) Personnel policies and systems, 
                including those pertaining to recruiting, 
                retention, training, education, promotion, 
                awards, employment, deployment, and retirement; 
                and
                    (F) Acquisition authorities, including 
                identifying any economies of scale that could 
                be gained by improved coordination of 
                acquisition activities and replicating ``best 
                practices'', as appropriate.
            (2) The criteria and considerations used to 
        evaluate progress in each of the areas specified in 
        paragraph (1) towards building interagency capacity and 
        capabilities and integrating such capabilities across 
        the United States Government to enhance the achievement 
        of United States national security goals and 
        objectives.
            (3) Recommendations for specific legislative 
        proposals that would build interagency capacity by--
                    (A) addressing statutory or budgetary 
                impediments, if any, to the improvement of 
                interagency cooperation and coordination in 
                order to carry out the full range of national 
                security missions (including stability, 
                security, transition, and reconstruction 
                operations); and
                    (B) providing means to enhance the 
                integration of civilian capabilities with the 
                capabilities of deployed elements of the Armed 
                Forces for each of those national security 
                missions.
    (c) Additional Report Elements.--The report under 
subsection (a) shall include a portion dedicated to efforts to 
address the near-term need to strengthen interagency operations 
in support of stability, security, transition, and 
reconstruction operations, including a plan to establish 
interagency operating procedures for the departments and 
agencies of the United States Government for the planning and 
conduct of stability, security, transition, and reconstruction 
operations. Such plan shall include the following:
            (1) A delineation of the roles, responsibilities, 
        and authorities of the departments and agencies of the 
        United States Government for stability, security, 
        transition, and reconstruction operations.
            (2) A description of operational processes for 
        setting policy direction for stability, security, 
        transition, and reconstruction operations in order to 
        guide--
                    (A) operational planning and funding 
                decisions of those departments and agencies;
                    (B) integration of civilian and military 
                planning efforts;
                    (C) integration of programs and activities 
                into an implementation plan;
                    (D) oversight of policy implementation;
                    (E) provision of guidance to field-level 
                personnel on program direction and priorities; 
                and
                    (F) monitoring of field implementation of 
                assistance programs.
            (3) A description of available capabilities and 
        resources of each department and agency of the United 
        States Government that could be used in support of 
        stability, security, transition, and reconstruction 
        operations and identification of additional resources 
        needed to support the conduct of such operations.
            (4) A description of how the capabilities and 
        resources of the departments and agencies of the United 
        States Government will be coordinated to support 
        stability, security, transition, and reconstruction 
        operations.
            (5) A description of existing, or planned, 
        protocols between departments and agencies of the 
        United States Government on the utilization and 
        allocation of assets in field operations that support 
        stability, security, transition, and reconstruction 
        operations.
            (6) Recommendations for improving interagency 
        training, education, and simulation exercises in order 
        to adequately prepare civilian and military personnel 
        in the departments and agencies of the United States 
        Government to perform stability, security, transition, 
        and reconstruction operations.
            (7) Guidance for the implementation of the plan.
    (d) Form of Report.--To the maximum extent practicable, the 
report shall be unclassified, with a classified annex, if 
necessary.

                          Subtitle E--Reports

SEC. 1041. ADDITIONAL ELEMENT IN ANNUAL REPORT ON CHEMICAL AND 
                    BIOLOGICAL WARFARE DEFENSE.

    Section 1703(b) of the National Defense Authorization Act 
for Fiscal Year 1994 (50 U.S.C. 1523(b)) is amended by adding 
at the end the following new paragraph:
            ``(10) A description of the coordination and 
        integration of the program of the Defense Advanced 
        Research Projects Agency (DARPA) on basic and applied 
        research and advanced technology development on 
        chemical and biological warfare defense technologies 
        and systems under section 1701(c)(2) with the overall 
        program of the Department of Defense on chemical and 
        biological warfare defense, including--
                    ``(A) an assessment of the degree to which 
                the DARPA program is coordinated and integrated 
                with, and supports the objectives and 
                requirements of, the overall program of the 
                Department of Defense; and
                    ``(B) the means by which the Department 
                determines the level of such coordination and 
                support.''.

SEC. 1042. REPORT ON BIODEFENSE HUMAN CAPITAL REQUIREMENTS IN SUPPORT 
                    OF BIOSAFETY LABORATORIES.

    (a) Study Required.--The Secretary of Defense shall conduct 
a study to determine the Department of Defense human capital 
requirements for pending capital programs to construct 
biodefense laboratories at Biosafety Level (BSL) 3 and 
Biosafety Level 4 or to expand current biodefense laboratories 
to such biosafety levels.
    (b) Elements.--In conducting the study, the Secretary shall 
address the following:
            (1) The number of trained research and support 
        staff, by discipline and qualification level, including 
        researchers, laboratory technicians, animal handlers, 
        facility managers, facility or equipment maintainers, 
        biosecurity personnel (including biosafety, physical, 
        and electronic security personnel), and other safety 
        personnel required--
                    (A) for existing biodefense laboratories at 
                Biosafety Level 3 and Biosafety Level 4; and
                    (B) to manage biodefense research efforts 
                to combat bioterrorism at the biodefense 
                laboratories described in subsection (a).
            (2) Plans to recruit and retain skilled personnel, 
        in numbers sufficient to meet requirements described in 
        paragraph (1)(B).
            (3) A forecast of the training required to provide 
        the personnel described by paragraph (1)(B) in time to 
        meet the scheduled openings of the biodefense 
        laboratories described in subsection (a), including--
                    (A) the types of training required;
                    (B) the length of training required; and
                    (C) the training sources.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to the 
Committees on Armed Services of the Senate and House of 
Representatives a report setting forth the results of the study 
conducted under this section.

SEC. 1043. REPORT ON TECHNOLOGIES FOR NEUTRALIZING OR DEFEATING THREATS 
                    TO MILITARY ROTARY-WING AIRCRAFT FROM PORTABLE AIR 
                    DEFENSE SYSTEMS AND ROCKET-PROPELLED GRENADES.

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on technologies for neutralizing or defeating threats to 
military rotary-wing aircraft posed by portable air defense 
systems and rocket-propelled grenades that are being 
researched, developed, employed, or considered by the United 
States Government or the North Atlantic Treaty Organization.
    (b) Content.--The report under subsection (a) shall include 
the following:
            (1) An assessment of the expected value and utility 
        of the technologies referred to in subsection (a), 
        particularly with respect to--
                    (A) the saving of lives;
                    (B) the ability to reduce the vulnerability 
                of aircraft; and
                    (C) the enhancement of the ability of 
                aircraft and their crews to accomplish assigned 
                missions.
            (2) An assessment of the potential costs of 
        developing and deploying such technologies.
            (3) A description of efforts undertaken to develop 
        such technologies, including--
                    (A) nonlethal countermeasures;
                    (B) lasers and other systems designed to 
                dazzle, impede, or obscure threatening weapons 
                or their users;
                    (C) direct fire response systems;
                    (D) directed energy weapons; and
                    (E) passive and active systems.
            (4) A description of any impediment to the 
        development of such technologies, such as legal 
        restrictions under the law of war, treaty restrictions 
        under the Protocol on Blinding Lasers, and political 
        obstacles such as the reluctance of other allied 
        countries to pursue such technologies.

SEC. 1044. REPORTS ON EXPANDED USE OF UNMANNED AERIAL VEHICLES IN THE 
                    NATIONAL AIRSPACE SYSTEM.

    (a) Findings.--Congress makes the following findings:
            (1) Unmanned aerial vehicles (UAVs) serve 
        Department of Defense intelligence, surveillance, 
        reconnaissance, and combat missions.
            (2) Operational reliability of unmanned aerial 
        systems continues to improve, and development and 
        fielding of so-called sense-and-avoid technology should 
        continue in order to provide unmanned aerial systems 
        with an appropriate level of safety.
            (3) Unmanned aerial vehicles have the potential to 
        support the Nation's homeland defense mission, border 
        security mission, and natural disaster recovery 
        efforts.
    (b) Reports.--
            (1) DOD report.--Not later than one year after the 
        date of the enactment of this Act, the Secretary of 
        Defense shall submit to the relevant congressional 
        committees a report on the actions of the Department of 
        Defense to develop standards for the testing and 
        operation of unmanned aerial vehicles in the National 
        Airspace System.
            (2) FAA report.--Not later than one year after the 
        date of the enactment of this Act, the Administrator of 
        the Federal Aviation Administration shall submit to the 
        relevant congressional committees a report on progress 
        in developing a policy for testing and a plan for 
        achieving wider access by unmanned aerial vehicles that 
        are appropriately equipped to operate in the National 
        Airspace System
            (3) Relevant congressional committee.--For the 
        purposes of this subsection, the relevant congressional 
        committees are the following:
                    (A) The Committee on Armed Services, the 
                Committee on Commerce, the Committee on Science 
                and Transportation, and the Committee on 
                Homeland Security and Governmental Affairs of 
                the Senate.
                    (B) The Committee on Armed Services, the 
                Committee on Energy and Commerce, the Committee 
                on Government Reform, and the Committee on 
                Transportation and Infrastructure of the House 
                of Representatives.

SEC. 1045. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS AND FORMER 
                    MEMBERS OF THE ARMED FORCES TO SERVE IN THE BUREAU 
                    OF CUSTOMS AND BORDER PROTECTION.

    (a) Report Required.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Homeland 
Security and the Secretary of Defense shall jointly submit to 
the congressional committees specified in subsection (e) a 
report assessing the desirability and feasibility of offering 
incentives to members and former members of the Armed Forces 
described in subsection (b) for the purpose of encouraging such 
members to serve in the Bureau of Customs and Border Protection 
of the Department of Homeland Security.
    (b) Covered Members and Former Members.--The members and 
former members of the Armed Forces to be covered by the report 
under subsection (a) are the following:
            (1) Members of the reserve components of the Armed 
        Forces.
            (2) Former members of the Armed Forces within two 
        years of separation from service in the Armed Forces.
    (c) Requirements and Limitations.--
            (1) Nature of incentives.--In considering 
        incentives for purposes of the report required by 
        subsection (a), the Secretaries shall consider such 
        incentives as the Secretaries jointly consider 
        appropriate, whether or not such incentives are 
        monetary or otherwise and whether or not such 
        incentives are authorized by current law or 
        regulations.
            (2) Targeting of incentives.--In assessing any 
        incentive for purposes of the report, the Secretaries 
        shall give particular attention to the utility of such 
        incentive in--
                    (A) encouraging service in the Bureau of 
                Customs and Border Protection after service in 
                the Armed Forces by members and former members 
                of the Armed Forces described in subsection (b) 
                who provided border patrol or border security 
                assistance to the Bureau as part of their 
                duties as members of the Armed Forces; and
                    (B) leveraging military training and 
                experience by accelerating training, or 
                allowing credit to be applied to related areas 
                of training, required for service with the 
                Bureau of Customs and Border Protection.
            (3) Payment.--In assessing incentives for purposes 
        of the report, the Secretaries shall assume that any 
        costs of such incentives shall be borne by the 
        Department of Homeland Security.
    (d) Elements.--The report required by subsection (a) shall 
include the following:
            (1) A description of various monetary and non-
        monetary incentives considered for purposes of the 
        report.
            (2) An assessment of the desirability and 
        feasibility of utilizing any such incentive for the 
        purpose specified in subsection (a), including an 
        assessment of the particular utility of such incentive 
        in encouraging service in the Bureau of Customs and 
        Border Protection after service in the Armed Forces by 
        members and former members of the Armed Forces 
        described in subsection (c)(2)(A).
            (3) Any other matters that the Secretaries jointly 
        consider appropriate.
    (e) Submission of Report.--The report required by 
subsection (a) shall be submitted to--
            (1) the Committee on Armed Services, the Committee 
        on Homeland Security and Governmental Affairs, and the 
        Committee on Appropriations of the Senate; and
            (2) the Committee on Armed Services, the Committee 
        on Homeland Security, and the Committee on 
        Appropriations of the House of Representatives.

SEC. 1046. REPEAL OF CERTAIN REPORT REQUIREMENTS.

    (a) Annual Report on Aviation Career Incentive Pay.--
Section 301a of title 37, United States Code, is amended by 
striking subsection (f).
    (b) Annual Report on Effects of Certain Initiatives on 
Recruitment and Retention.--
            (1) Repeal.--Section 1015 of title 37, United 
        States Code, is repealed.
            (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 19 of such title is amended by 
        striking the item relating to section 1015.
    (c) Secretary of Defense Recommendation on Need for Defense 
Impact Review Process.--Section 1041 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1217) is repealed.
    (d) Report on Pilot Program To Enhance Military Recruiting 
by Improving Military Awareness of School Counselors and 
Educators.--Section 564 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-133; 10 U.S.C. 503 note)) 
is amended by striking subsection (c).
    (e) Annual Report on Medical Informatics.--Section 723(d) 
of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 10 U.S.C. 1071 note) is amended--
            (1) by striking paragraph (5); and
            (2) by redesignating paragraphs (6) and (7) as 
        paragraphs (5) and (6), respectively.

SEC. 1047. REQUIREMENT FOR IDENTIFICATION OF RECENTLY ENACTED RECURRING 
                    REPORTING REQUIREMENTS APPLICABLE TO THE DEPARTMENT 
                    OF DEFENSE.

    (a) Identification and Submittal to Congressional 
Committees.--
            (1) In general.--Not later than March 1, 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 listing of 
        each provision of law specified in paragraph (2).
            (2) Covered provisions of law.--Paragraph (1) 
        applies with respect to any provision of law enacted on 
        or after November 24, 2003 (the date of the enactment 
        of the National Defense Authorization Act for Fiscal 
        Year 2004 (Public Law 108-136)), and before February 1, 
        2007, that requires the submission by the Secretary of 
        Defense or any other official of the Department of 
        Defense of annual, semiannual, or other periodic 
        reports to one or more of the congressional defense 
        committees
    (b) Additional Matter To Be Submitted.--The Secretary of 
Defense shall include with the listing submitted under 
subsection (a) the following:
            (1) With respect to each provision of law covered 
        by that subsection, a description of the report 
        requirement under that provision.
            (2) For each such report requirement--
                    (A) an assessment by the Secretary--
                            (i) of the burden imposed on the 
                        Department of Defense by the 
                        preparation of the report; and
                            (ii) of the utility of such report 
                        from the perspective of the Department 
                        of Defense; and
                    (B) a recommendation on the advisability of 
                repealing or modifying the requirement for the 
                submittal of such report.
    (c) Definition.--In this section, the term ``report'' has 
the meaning given that term in section 480(c) of title 10, 
United States Code.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

SEC. 1051. ACCEPTANCE AND RETENTION OF REIMBURSEMENT FROM NON-FEDERAL 
                    SOURCES TO DEFRAY DEPARTMENT OF DEFENSE COSTS OF 
                    CONFERENCES.

    (a) In General.--Subchapter II of chapter 134 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2262. Department of Defense conferences: collection of fees to 
                    cover Department of Defense costs

    ``(a) Authority to Collect Fees.--(1) The Secretary of 
Defense may collect fees from any individual or commercial 
participant in a conference, seminar, exhibition, symposium, or 
similar meeting conducted by the Department of Defense (in this 
section referred to collectively as a `conference').
    ``(2) The Secretary may provide for the collection of fees 
under this section directly or by contract. The fees may be 
collected in advance of a conference.
    ``(b) Uses of Collected Fees.--Amounts collected under 
subsection (a) with respect to a conference shall be credited 
to the appropriation or account from which the costs of the 
conference are paid and shall be available to pay the costs of 
the Department of Defense with respect to the conference or to 
reimburse the Department for costs incurred with respect to the 
conference.
    ``(c) Treatment of Excess Amounts.--In the event the total 
amount of fees collected under subsection (a) with respect to a 
conference exceeds the actual costs of the Department of 
Defense with respect to the conference, the amount of such 
excess shall be deposited into the Treasury as miscellaneous 
receipts.
    ``(d) Annual Reports.--(1) Not later than 45 days after the 
President submits to Congress the budget for a fiscal year 
under section 1105 of title 31, the Secretary of Defense shall 
submit to the congressional defense committees a budget 
justification document summarizing the use of the fee-
collection authority provided by this section.
    ``(2) Each report shall include the following:
            ``(A) A list of all conferences conducted during 
        the preceding two calendar years for which fees were 
        collected under this section.
            ``(B) For each conference included on the list 
        under subparagraph (A):
                    ``(i) The estimated costs of the Department 
                for the conference.
                    ``(ii) The actual costs of the Department 
                for the conference, including a separate 
                statement of the amount of any conference 
                coordinator fees associated with the 
                conference.
                    ``(iii) The amount of fees collected under 
                this section for the conference.
            ``(C) An estimate of the number of conferences to 
        be conducted during the calendar year in which the 
        report is submitted for which the Department will 
        collect fees under this section.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of subchapter II of chapter 134 of such title is 
amended by adding at the end the following new item:

``2262. Department of Defense conferences: collection of fees to cover 
          Department of Defense costs.''.

SEC. 1052. INCREASED FLEXIBILITY IN USE OF FUNDS FOR JOINT STAFF 
                    EXERCISES.

    (a) In General.--Amounts available to the Chairman of the 
Joint Chiefs of Staff for joint staff exercises may be 
available for any expenses as follows:
            (1) Expenses of the Armed Forces in connection with 
        such exercises, including expense relating to self-
        deploying watercraft under the jurisdiction of a 
        military department.
            (2) Expenses relating to the costs of port support 
        activities in connection with such exercises, including 
        transportation and port handling.
            (3) Expenses relating to the breakout and operation 
        of prepositioned watercraft and lighterage for joint 
        logistics and over the shore exercises in connection 
        with such exercises.
    (b) Supplement Not Supplant.--Any amounts made available by 
the Chairman of the Joint Chiefs of Staff under subsection (a) 
for expenses covered by that subsection are in addition to any 
other amounts available under law for such expenses.

SEC. 1053. PROHIBITION ON PARKING OF FUNDS.

    (a) Prohibition.--
            (1) In general.--Chapter 165 of title 10, United 
        States Code, is amended by inserting after section 
        2773a the following new section:

``Sec. 2773b. Parking of funds: prohibition; penalties

    ``(a) Prohibition.--An officer or employee of the 
Department of Defense may not direct the designation of funds 
for a particular purpose in the budget of the President, as 
submitted to Congress pursuant to section 1105 of title 31, or 
the supporting documents of the Department of Defense component 
of such budget, with the knowledge or intent that such funds, 
if made available to the Department, will not be used for the 
purpose for which they are designated.
    ``(b) Penalties.--The direction of the designation of funds 
in violation of the prohibition in subsection (a) shall be 
treated for purposes of chapter 13 of title 31 as a violation 
of section 1341(a)(1)(A) of such title.''.
            (2) 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 2773a 
        the following new item:

``2773b. Parking of funds: prohibition; penalties.''.

    (b) Effective Date.--
            (1) In general.--The amendments made by subsection 
        (a) shall take effect on the date that is 31 days after 
        the date of the enactment of this Act.
            (2) Modification of certain policies and 
        regulations.--Not later than 30 days after the date of 
        the enactment of this Act, the Secretary of Defense 
        shall modify the policies and regulations of the 
        Department of Defense regarding the preparation and 
        submittal to Congress of budget materials for the 
        Department of Defense to take into account section 
        2773b of title 10, United States Code, as added by 
        subsection (a).

SEC. 1054. MODIFICATION OF AUTHORITIES RELATING TO THE SPECIAL 
                    INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION.

    (a) Duties.--For purposes of carrying out the duties of the 
Special Inspector General for Iraq Reconstruction under section 
3001(f) of the Emergency Supplemental Appropriations Act for 
Defense and for the Reconstruction of Iraq and Afghanistan, 
2004 (Public Law 108-106; 117 Stat. 1235 et seq.; 5 U.S.C. 
App., note to section 8G of Public Law 95-452), any United 
States funds appropriated or otherwise made available for 
fiscal year 2006 for the reconstruction of Iraq, irrespective 
of the designation of such funds, shall be deemed to be amounts 
appropriated or otherwise made available to the Iraq Relief and 
Reconstruction Fund.
    (b) Termination.--Section 3001(o) of the Emergency 
Supplemental Appropriations Act for Defense and for the 
Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of 
Public Law 95-452) is amended to read as follows:
    ``(o) Termination.--The Office of the Inspector General 
shall terminate on October 1, 2007, with transition operations 
authorized to continue through December 31, 2007.''.

                Subtitle G--Matters Involving Detainees

SEC. 1061. PROVISION OF INFORMATION TO CONGRESS ON CERTAIN CRIMINAL 
                    INVESTIGATIONS AND PROSECUTIONS INVOLVING 
                    DETAINEES.

    (a) Annual Report.--Subsection (c) of section 1093 of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108-375; 118 Stat. 2070) is amended--
            (1) in paragraph (1), by inserting ``, or any 
        prosecution on account of,'' after ``Notice of any 
        investigation into''; and
            (2) by adding at the end the following new 
        paragraph:
            ``(3) For each investigation or prosecution 
        described in paragraph (1) with respect to which notice 
        is included in the report--
                    ``(A) a detailed and comprehensive 
                description of such investigation or 
                prosecution and any resulting judicial or 
                nonjudicial punishment or other disciplinary 
                action; and
                    ``(B) if the individual receiving the 
                punishment or disciplinary action is a member 
                of the Armed Forces, the grade of that 
                individual (i) as of the time of the incident 
                resulting in the investigation or prosecution, 
                (ii) as of the beginning of the investigation 
                or prosecution, and (iii) as of the submission 
                of the report.''.
    (b) Timely Submission of Covered Information.--Such section 
is further amended by adding at the end the following new 
subsection:
    ``(f) Additional Reporting.--In addition to the annual 
report under subsection (c), the Secretary of Defense shall 
submit to the committees named in that subsection regular and 
timely reports on the matters described in paragraphs (1) and 
(3) of that subsection.''.

                       Subtitle H--Other Matters

SEC. 1071. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) Section 115 is amended--
                    (A) by striking the second subsection (i) 
                (added by section 512(b) of Public Law 108-375 
                (118 Stat. 1880)); and
                    (B) by adding at the end of subsection (i) 
                the following new paragraph:
            ``(13) Members of the National Guard on full-time 
        National Guard duty involuntarily and performing 
        homeland defense activities under chapter 9 of title 
        32.''.
            (2) Sections 133(c)(1), 2225(f)(1), 2302c(b), 
        2304(f)(1)(B)(iii), 2359a(i), and 2382(c)(3)(A) are 
        amended by striking ``section 16(3) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 414(3))'' and 
        inserting ``section 16(c) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(c))''.
            (3) Section 426(a)(1)(B) is amended by striking 
        ``coordiation'' and inserting ``coordination''.
            (4) Section 843(b)(2) is amended--
                    (A) in subparagraph (B)(iii), by striking 
                ``article 126'' and inserting ``article 125''; 
                and
                    (B) in subparagraph (C), by striking 
                ``under chapter 110 or 117, or under section 
                1591, of title 18'' and inserting ``under 
                chapter 110 or 117 of title 18 or under section 
                1591 of that title''.
            (5) Section 1107a(a) is amended--
                    (A) by redesignating subparagraphs (A) and 
                (B) as paragraphs (1) and (2), respectively; 
                and
                    (B) in paragraph (2), as so redesignated, 
                by striking ``subparagraph (A)'' and inserting 
                ``paragraph (1)''.
            (6) Section 1217(a) is amended by striking ``the 
        date of'' and all that follows and inserting ``October 
        28, 2004.''.
            (7) Section 1406(i)(3)(B)(vi) is amended by 
        striking ``Advisor for'' and inserting ``Advisor to''.
            (8) Section 1448(d)(6)(A) is amended by striking 
        the second comma after ``November 23, 2003''.
            (9) Section 2006(b)(1) is amended--
                    (A) by inserting ``of this title'' after 
                ``and 1607''; and
                    (B) by striking ``of this title'' before 
                the period at the end.
            (10) Section 2103a(b) is amended in the subsection 
        heading by striking ``Eligibilty'' and inserting 
        ``Eligibility''.
            (11) Section 2105 is amended by adding a period at 
        the end of the last sentence.
            (12) The item relating to section 2152 in the table 
        of sections at the beginning of chapter 107 is amended 
        to read as follows:

``2152. Joint professional military education: general requirements.''.

            (13) The heading for section 2155, and the item 
        relating to that section in the table of sections at 
        the beginning of chapter 107, are amended by 
        capitalizing the first letter of the fifth word.
            (14) Section 2155(a) is amended in the subsection 
        heading by inserting ``Phase'' after ``Education''.
            (15) Section 2157 is amended by striking ``phase 
        II'' in paragraph (1) and inserting ``Phase II''.
            (16) Section 2216(b)(1) is amended by striking 
        ``subsections'' and inserting ``subsection''.
            (17) The heading for section 2440 is amended so 
        that the first letter of each word after the first is 
        lower case.
            (18) The item relating to section 2481 in the table 
        of sections at the beginning of subchapter I of chapter 
        147 is amended by adding a period at the end.
            (19)(A) The second section 2613 (added by section 
        1051(a) of Public Law 108-375 (118 Stat. 2053)) is 
        redesignated as section 2614 and is amended by 
        redesignating the second subsection (c) as subsection 
        (d).
            (B) The item relating to such section in the table 
        of sections at the beginning of chapter 155 is revised 
        to reflect the redesignation of such section by 
        subparagraph (A).
            (20) Section 2613(b) is amended by striking ``In 
        the'' and inserting ``In this''.
            (21) Section 2692(b)(9) is amended by striking 
        ``materiel'' and inserting ``material''.
            (22) Section 2694a(c) is amended in the subsection 
        heading by striking ``Revisionary'' and inserting 
        ``Reversionary''.
            (23) Section 2703(h) is amended by striking 
        ``subsection'' in the first sentence and inserting 
        ``section''.
            (24) Section 2722(c)(2) is amended by striking 
        ``section 921'' and inserting ``section 921(a)''.
            (25) Section 2784a(a)(2) is amended by striking 
        ``care'' and inserting ``card''.
            (26) Section 2831(f)(2) is amended by striking 
        ``enviromental'' and inserting ``environmental''.
            (27) Section 3911(b) is amended--
                    (A) in paragraph (1), by striking the 
                second comma after ``paragraph (2)''; and
                    (B) in paragraph (2), by striking ``the 
                date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2006'' and 
                inserting ``January 6, 2006,''.
            (28) Section 4342(a)(9) is amended by striking 
        ``cadet'' and inserting ``cadets''.
            (29) Section 4544(d) is amended in the subsection 
        heading by striking ``Arangement'' and inserting 
        ``Arrangement''.
            (30) Section 4687(c) is amended by striking 
        ``section 921(10)'' and inserting ``section 
        921(a)(10)''.
            (31) The item relating to section 6086 in the table 
        of sections at the beginning of chapter 557 is amended 
        by striking the semicolon and inserting a colon.
            (32) The table of sections at the beginning of 
        chapter 561 is amended--
                    (A) in the item relating to section 6154, 
                by striking the semicolon and inserting a 
                colon; and
                    (B) by striking the item relating to 
                section 6161 and inserting the following:

``6161. Settlement of accounts: remission or cancellation of 
          indebtedness of members.''.

            (33) Section 6323(a)(2) is amended--
                    (A) in subparagraph (A), by striking the 
                second comma after ``subparagraph (B)''; and
                    (B) in subparagraph (B), by striking ``the 
                date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2006'' and 
                inserting ``January 6, 2006,''.
            (34) The item relating to section 6965 in the table 
        of sections at the beginning of chapter 603 is amended 
        by striking the semicolon and inserting a colon.
            (35) The item relating to section 7081 in the table 
        of sections at the beginning of chapter 607 is amended 
        by striking the first semicolon and inserting a colon.
            (36) Section 7306b(b)(1) is amended by striking 
        ``section 2(14)'' and inserting ``section 3(14)''.
            (37) Section 8911(b) is amended--
                    (A) in paragraph (1), by striking the 
                second comma after ``paragraph (2)''; and
                    (B) in paragraph (2), by striking ``the 
                date of the enactment of the National Defense 
                Authorization Act for Fiscal Year 2006'' and 
                inserting ``January 6, 2006,''.
            (38) Section 9342(a)(9) is amended by striking 
        ``cadet'' and inserting ``cadets''.
            (39) Section 9355(c)(1) is amended by striking 
        ``board'' and inserting ``Board''.
            (40) Section 12731(a)(3) is amended by striking 
        ``before the end of the 180-day period beginning on the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2005'' and inserting 
        ``before April 25, 2005''.
            (41) Section 12741 is amended by striking ``under 
        subsection (b)'' in subsections (c) and (d) and 
        inserting ``under subsection (a)''.
            (42) Section 18233(f)(2) is amended by striking the 
        comma after ``purchase''.
    (b) Title 32, United States Code.--Title 32, United States 
Code, is amended as follows:
            (1) Section 902 is amended by striking ``(a)'' 
        before ``The Secretary''.
            (2) Section 908(b)(1) is amended by striking 
        ``subsection (i)'' and inserting ``subsection 
        (i)(13)''.
    (c) Title 37, United States Code.--Title 37, United States 
Code, is amended as follows:
            (1) Section 210(c)(6) is amended by striking 
        ``Advisor for'' and inserting ``Advisor to''.
            (2) Section 301(f)(2)(C) is amended by striking the 
        comma after ``the term''.
            (3) Section 308g(f) is amended by striking the 
        second period at the end.
            (4) Section 308j is amended by striking subsection 
        (g) and inserting the following new subsection:
    ``(g) Repayment.--A person who enters into an agreement 
under this section and receives all or part of the bonus under 
the agreement, but who does not accept a commission or an 
appointment as an officer or does not commence to participate 
or does not satisfactorily participate in the Selected Reserve 
for the total period of service specified in the agreement, 
shall be subject to the repayment provisions of section 303a(e) 
of this title.''.
            (5) The table of sections at the beginning of 
        chapter 7 is amended--
                    (A) by striking the item relating to 
                section 407 and inserting the following:

``407. Travel and transportation allowances: dislocation allowance.''; 
          and

                    (B) by striking the item relating to 
                section 425 and inserting the following:

``425. United States Navy Band; United States Marine Corps Band: 
          allowances while on concert tour.''.

            (6) Section 402a(b)(3)(B) is amended by striking 
        ``section 310 of this section'' and inserting ``section 
        310 of this title''.
            (7) Section 414(c) is amended by striking ``, or 
        the Senior Enlisted Advisor for the Chairman of the 
        Joint Chiefs of Staff'' before the period at the end.
            (8) The heading of section 1010 is amended to read 
        as follows:

``Sec. 1010. Commissioned officers: promotions; effective date for pay 
                    and allowances''.

    (d) Public Law 109-272.--Effective as of August 14, 2006, 
and as if included therein as enacted, section 2(a) of Public 
Law 109-272 (120 Stat. 770; 16 U.S.C. 431 note) is amended by 
striking ``division E'' and inserting ``division J''.
    (e) National Defense Authorization Act for Fiscal Year 
2006.--Effective as of January 6, 2006, and as if included 
therein as enacted, the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163) is amended as follows:
            (1) Section 341(e) (119 Stat. 3199) is amended by 
        striking ``(a)(1)(E)'' and inserting ``(a)(1)(F)''.
            (2) Section 545(b) (119 Stat. 3254) is amended by 
        striking ``title''.
            (3) Section 606(a) (119 Stat. 3287; 37 U.S.C. 211 
        note) is amended by striking ``title 10'' and inserting 
        ``title 37''.
            (5) Section 608(b) (119 Stat. 3289) is amended--
                    (A) in paragraph (1), by striking ``the 
                first sentence'' and inserting ``the second 
                sentence''; and
                    (B) in paragraph (2), by striking ``the 
                second sentence'' and inserting ``the third 
                sentence''.
            (6) Section 685(a) (119 Stat. 3325) is amended by 
        striking ``Advisor for'' both places it appears and 
        inserting ``Advisor to''.
            (7) Section 687(a)(2) (119 Stat. 3327) is amended 
        by striking ``subsection (a)'' and inserting 
        ``subsection (e)''.
            (8) Section 687(b)(15) (119 Stat. 3330) is 
        amended--
                    (A) by striking ``Subsection (d)'' and 
                inserting ``Subsection (e)''; and
                    (B) in the matter inserted by that section, 
                by striking ``(d) Repayment.--'' and inserting 
                ``(e) Repayment.--''.
            (9) Section 740(c) (119 Stat. 3359; 10 U.S.C. 1073 
        note) is amended by inserting ``include'' after 
        ``shall''.
    (f) Reconciliation of Duplicate Enactments.--
            (1) In executing to section 2554 of title 10, 
        United States Code, the identical amendments made by 
        section 8126(c)(2) of Public Law 109-148 (119 Stat. 
        2729) and section 1058(c) of Public Law 109-163 (119 
        Stat. 3443), such amendments shall be executed so as to 
        appear only once in the law as amended.
            (2) In executing to section 109 of the Housing and 
        Community Development Act of 1974 the identical 
        amendments made by section 8126(d) of Public Law 109-
        148 (119 Stat. 2730) and section 1058(d) of Public Law 
        109-163 (119 Stat. 3443), such amendments shall be 
        executed so as to appear only once in the law as 
        amended.
            (3) Section 8126 of Public Law 109-148 (119 Stat. 
        2728) is repealed.
    (g) Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005.--Effective as of October 28, 2004, and as if 
included therein as enacted, the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375) is amended as follows:
            (1) Section 416 is amended--
                    (A) in subsection (a)(1) (118 Stat. 1866), 
                by inserting ``the second place it appears'' 
                before the semicolon at the end; and
                    (B) in subsection (g)(1) (118 Stat. 1868), 
                by inserting open quotation marks before ``(1) 
                Reserve''.
            (2) Subsections (a)(2), (b)(2), and (c)(2) of 
        section 544 (118 Stat. 1906) are amended by striking 
        ``such title'' and inserting ``such chapter''.
            (3) Section 554(1) (118 Stat. 1913) is amended by 
        inserting ``of'' in the quoted matter after ``a 
        period''.
            (4) Section 593(a) (118 Stat. 1934; 10 U.S.C. 503 
        note) is amended in the subsection heading by striking 
        ``Screeing'' and inserting ``Screening''.
            (5) Section 645 (118 Stat. 1962; 10 U.S.C. 1448 
        note) is amended by redesignating the last subsection 
        (relating to definitions) as subsection (j).
            (6) Section 651(a)(5)(C) (118 Stat. 1966) is 
        amended by striking ``subsection (f)'' and inserting 
        ``subsection (e)''.
            (7) Section 726(b)(1) (118 Stat. 1992) is amended 
        by striking ``(1)'' in the second quoted matter.
            (8) Section 731 (118 Stat. 1993; 10 U.S.C. 1074 
        note) is amended by striking ``this title'' each place 
        it appears in subsections (a), (b)(3)(C), and (c)(1)(A) 
        and inserting ``this subtitle''.
            (9) Section 733(b)(2) (118 Stat. 1998; 10 U.S.C. 
        1074f note) is amended by striking ``section 1301'' and 
        inserting ``section 731(b)''.
            (10) Section 801(b)(2)(A) (118 Stat. 2004) is 
        amended--
                    (A) by striking ``(7), (8), and (9)'' and 
                inserting ``(7) and (8)''; and
                    (B) by striking ``(8), (9), and (10)'' and 
                inserting ``(8) and (9)''.
            (11) Section 818(b) (118 Stat. 2016) is amended by 
        inserting ``of subsection (b)'' after ``Paragraph 
        (3)''.
            (12) Section 1103(a)(1) (118 Stat. 2072) is amended 
        by inserting ``basic'' after ``rates of'' in the first 
        quoted matter.
            (13) Section 1203(e)(2)(B) (118 Stat. 2079) is 
        amended by inserting ``office'' after ``and field'' in 
        the first quoted matter.
    (h) Bob Stump National Defense Authorization Act for Fiscal 
Year 2003.--Section 806(d) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 note) is 
amended in the subsection heading by striking ``Statues'' and 
inserting ``Statutes''.
    (i) Coordination With Other Amendments.--For purposes of 
applying amendments made by provisions of this Act other than 
provisions of this section, this section shall be treated as 
having been enacted immediately before the other provisions of 
this Act.

SEC. 1072. REVISION TO AUTHORITIES RELATING TO COMMISSION ON THE 
                    IMPLEMENTATION OF THE NEW STRATEGIC POSTURE OF THE 
                    UNITED STATES.

    Section 1051 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3431) is 
amended--
            (1) in subsection (c)(1), by striking ``June 30, 
        2007'' and inserting ``September 30, 2007''; and
            (2) in subsection (f), by striking ``July 30, 
        2007'' and inserting ``November 30, 2007''.

SEC. 1073. REVISED DEADLINE FOR SUBMISSION OF FINAL REPORT OF EMP 
                    COMMISSION.

    Section 1403(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-346), as amended by section 
1052(f) of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3434), is amended by 
striking ``June 30, 2007'' and inserting ``September 30, 
2007''.

SEC. 1074. EXTENSION OF RETURNING WORKER EXEMPTION TO H-2B NUMERICAL 
                    LIMITATION.

    (a) In General.--Section 214(g)(9) of the Immigration and 
Nationality Act (8 U.S.C. 1184(g)(9)) is amended--
            (1) by amending the first sentence of subparagraph 
        (A) to read as follows: ``Subject to subparagraphs (B) 
        and (C), an alien who has already been counted toward 
        the numerical limitation of paragraph (1)(B) during 
        fiscal year 2004, 2005, or 2006 shall not again be 
        counted toward such limitation during fiscal year 
        2007.''; and
            (2) in subparagraph (B), by striking ``referred to 
        in subparagraph (A)'' and inserting ``to admit or 
        otherwise provide status under section 
        101(a)(15)(H)(ii)(b)''.
    (b) Deletion of Prior Sunset Provision.--Section 402(b)(1) 
of the Save Our Small and Seasonal Businesses Act of 2005 
(title IV of division B of Public Law 109-13; 119 Stat. 318; 8 
U.S.C. 1184 note) is amended by striking ``2004,'' and all that 
follows through the period at the end and inserting ``2004.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 2006. If this section is 
enacted after October 1, 2006, the amendments made by this 
section shall take effect as if enacted on such date.

SEC. 1075. PATENT TERM EXTENSIONS FOR THE BADGES OF THE AMERICAN 
                    LEGION, THE AMERICAN LEGION WOMEN'S AUXILIARY, AND 
                    THE SONS OF THE AMERICAN LEGION.

    (a) Patent Term Extension for the Badge of the American 
Legion.--The term of the design patent numbered 54,296 (for the 
badge of the American Legion) is renewed and extended for a 
period of 14 years beginning on the date of enactment of this 
Act, with all the rights and privileges pertaining to such 
patent.
    (b) Patent Term Extension for the Badge of the American 
Legion Women's Auxiliary.--The term of the design patent 
numbered 55,398 (for the badge of the American Legion Women's 
Auxiliary) is renewed and extended for a period of 14 years 
beginning on the date of enactment of this Act, with all the 
rights and privileges pertaining to such patent.
    (c) Patent Term Extension for the Badge of the Sons of the 
American Legion.--The term of the design patent numbered 92,187 
(for the badge of the Sons of the American Legion) is renewed 
and extended for a period of 14 years beginning on the date of 
enactment of this Act, with all the rights and privileges 
pertaining to such patent.

SEC. 1076. USE OF THE ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.

    (a) Use of the Armed Forces Authorized.--
            (1) In general.--Section 333 of title 10, United 
        States Code, is amended to read as follows:

``Sec. 333. Major public emergencies; interference with State and 
                    Federal law

    ``(a) Use of Armed Forces in Major Public Emergencies.--(1) 
The President may employ the armed forces, including the 
National Guard in Federal service, to--
            ``(A) restore public order and enforce the laws of 
        the United States when, as a result of a natural 
        disaster, epidemic, or other serious public health 
        emergency, terrorist attack or incident, or other 
        condition in any State or possession of the United 
        States, the President determines that--
                    ``(i) domestic violence has occurred to 
                such an extent that the constituted authorities 
                of the State or possession are incapable of 
                maintaining public order; and
                    ``(ii) such violence results in a condition 
                described in paragraph (2); or
            ``(B) suppress, in a State, any insurrection, 
        domestic violence, unlawful combination, or conspiracy 
        if such insurrection, violation, combination, or 
        conspiracy results in a condition described in 
        paragraph (2).
    ``(2) A condition described in this paragraph is a 
condition that--
            ``(A) so hinders the execution of the laws of a 
        State or possession, as applicable, and of the United 
        States within that State or possession, that any part 
        or class of its people is deprived of a right, 
        privilege, immunity, or protection named in the 
        Constitution and secured by law, and the constituted 
        authorities of that State or possession are unable, 
        fail, or refuse to protect that right, privilege, or 
        immunity, or to give that protection; or
            ``(B) opposes or obstructs the execution of the 
        laws of the United States or impedes the course of 
        justice under those laws.
    ``(3) In any situation covered by paragraph (1)(B), the 
State shall be considered to have denied the equal protection 
of the laws secured by the Constitution.
    ``(b) Notice to Congress.--The President shall notify 
Congress of the determination to exercise the authority in 
subsection (a)(1)(A) as soon as practicable after the 
determination and every 14 days thereafter during the duration 
of the exercise of that authority.''.
            (2) Proclamation to disperse.--Section 334 of such 
        title is amended by inserting ``or those obstructing 
        the enforcement of the laws'' after ``insurgents''.
            (3) Heading amendment.--The heading of chapter 15 
        of such title is amended to read as follows:

    ``CHAPTER 15--ENFORCEMENT OF THE LAWS TO RESTORE PUBLIC ORDER''.

            (4) Clerical amendments.--(A) The tables of 
        chapters at the beginning of subtitle A of title 10, 
        United States Code, and at the beginning of part I of 
        such subtitle, are each amended by striking the item 
        relating to chapter 15 and inserting the following new 
        item:

``15 Enforcement of the Laws to Restore Public Order..............331''.

            (B) The table of sections at the beginning of 
        chapter 15 of such title is amended by striking the 
        item relating to sections 333 and inserting the 
        following new item:

``333. Major public emergencies; interference with State and Federal 
          law.''.

    (b) Provision of Supplies, Services, and Equipment.--
            (1) In general.--Chapter 152 of such title is 
        amended by adding at the end the following new section:

``Sec. 2567. Supplies, services, and equipment: provision in major 
                    public emergencies

    ``(a) Provision Authorized.--In any situation in which the 
President determines to exercise the authority in section 
333(a)(1)(A) of this title, the President may direct the 
Secretary of Defense to provide supplies, services, and 
equipment to persons affected by the situation.
    ``(b) Covered Supplies, Services, and Equipment.--The 
supplies, services, and equipment provided under this section 
may include food, water, utilities, bedding, transportation, 
tentage, search and rescue, medical care, minor repairs, the 
removal of debris, and other assistance necessary for the 
immediate preservation of life and property.
    ``(c) Limitations.--(1) Supplies, services, and equipment 
may be provided under this section--
            ``(A) only to the extent that the constituted 
        authorities of the State or possession concerned are 
        unable to provide such supplies, services, and 
        equipment, as the case may be; and
            ``(B) only until such authorities, or other 
        departments or agencies of the United States charged 
        with the provision of such supplies, services, and 
        equipment, are able to provide such supplies, services, 
        and equipment.
    ``(2) The Secretary may provide supplies, services, and 
equipment under this section only to the extent that the 
Secretary determines that doing so will not interfere with 
military preparedness or ongoing military operations or 
functions.
    ``(d) Inapplicability of Certain Authorities.--The 
provision of supplies, services, or equipment under this 
section shall not be subject to the provisions of section 
403(c) of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170b(c)).''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by adding at 
        the end the following new item:

``2567. Supplies, services, and equipment: provision in major public 
          emergencies''.

    (c) Conforming Amendment.--Section 12304(c)(1) of such 
title is amended by striking ``No unit'' and all that follows 
through ``subsection (b),'' and inserting ``Except to perform 
any of the functions authorized by chapter 15 or section 12406 
of this title or by subsection (b), no unit or member of a 
reserve component may be ordered to active duty under this 
section''.

SEC. 1077. INCREASED HUNTING AND FISHING OPPORTUNITIES FOR MEMBERS OF 
                    THE ARMED FORCES, RETIRED MEMBERS, AND DISABLED 
                    VETERANS.

    (a) Access for Members, Retired Members, and Disabled 
Veterans.--Consistent with section 2671 of title 10, United 
States Code, and using such funds as are made available for 
this purpose, the Secretary of Defense shall ensure that 
members of the Armed Forces, retired members, disabled 
veterans, and persons assisting disabled veterans are able to 
utilize lands under the jurisdiction of the Department of 
Defense that are available for hunting or fishing.
    (b) Assessment.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary shall submit to 
Congress a report containing the results of an assessment of 
those lands under the jurisdiction of the Department of Defense 
and suitable for hunting or fishing and describing the actions 
necessary--
            (1) to further increase the acreage made available 
        to members of the Armed Forces, retired members, 
        disabled veterans, and persons assisting disabled 
        veterans for hunting and fishing; and
            (2) to make that acreage more accessible to 
        disabled veterans.
    (c) Recreational Activities on Santa Rosa Island.--The 
Secretary of the Interior shall immediately cease the plan, 
approved in the settlement agreement for case number 96-7412 
WJR and case number 97-4098 WJR, to exterminate the deer and 
elk on Santa Rosa Island, Channel Islands, California, by 
helicopter and shall not exterminate or nearly exterminate the 
deer and elk.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Accrual of annual leave for members of the uniformed services 
          performing dual employment.
Sec. 1102. Strategy for improving the senior management, functional, and 
          technical workforce of the Department of Defense.
Sec. 1103. Three-year extension of authority for experimental personnel 
          management program for scientific and technical personnel.
Sec. 1104. Reports on members of the Armed Forces and civilian employees 
          of the Department of Defense serving in the legislative 
          branch.
Sec. 1105. Extension of authority to waive annual limitation on total 
          compensation paid to Federal civilian employees.

SEC. 1101. ACCRUAL OF ANNUAL LEAVE FOR MEMBERS OF THE UNIFORMED 
                    SERVICES PERFORMING DUAL EMPLOYMENT.

    Section 5534a of title 5, United States Code, is amended by 
adding at the end the following new sentence: ``Such a member 
also is entitled to accrue annual leave with pay in the manner 
specified in section 6303(a) of this title for a retired member 
of a uniformed service.''.

SEC. 1102. STRATEGY FOR IMPROVING THE SENIOR MANAGEMENT, FUNCTIONAL, 
                    AND TECHNICAL WORKFORCE OF THE DEPARTMENT OF 
                    DEFENSE.

    (a) Inclusion in 2007 Strategic Human Capital Plan.--The 
Secretary of Defense shall include in the March 1, 2007, 
strategic human capital plan required by section 1122(c) of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163; 119 Stat. 3453; 10 U.S.C. prec. 1580 note) a 
strategic plan to shape and improve the senior management, 
functional, and technical workforce (including scientists and 
engineers) of the Department of Defense.
    (b) Scope of Plan.--The strategic plan required by 
subsection (a) shall cover, at a minimum, the following 
categories of Department of Defense civilian personnel:
            (1) Appointees in the Senior Executive Service 
        under section 3131 of title 5, United States Code.
            (2) Persons serving in positions described in 
        section 5376(a) of title 5, United States Code.
            (3) Highly qualified experts appointed pursuant to 
        section 9903 of title 5, United States Code.
            (4) Scientists and engineers appointed pursuant to 
        section 342(b) of the National Defense Authorization 
        Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
        2721), as amended by section 1114 of the Floyd D. 
        Spence National Defense Authorization Act for Fiscal 
        Year 2001 (as enacted into by law by Public Law 106-398 
        (114 Stat. 1654A-315)).
            (5) Scientists and engineers appointed pursuant to 
        section 1101 of the Strom Thurmond National Defense 
        Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 
        note).
            (6) Persons serving in the Defense Intelligence 
        Senior Executive Service under section 1606 of title 
        10, United States Code.
            (7) Persons serving in Intelligence Senior Level 
        positions under section 1607 of title 10, United States 
        Code.
    (c) Contents of Plan.--The strategic plan required by 
subsection (a) shall include--
            (1) an assessment of--
                    (A) the needs of the Department of Defense 
                for senior management, functional, and 
                technical personnel (including scientists and 
                engineers) in light of recent trends and 
                projected changes in the mission and 
                organization of the Department and in light of 
                staff support needed to accomplish that 
                mission;
                    (B) the capability of the existing civilian 
                employee workforce of the Department to meet 
                requirements relating to the mission of the 
                Department, including the impact on that 
                capability of projected trends in the senior 
                management, functional, and technical personnel 
                workforce of the Department based on expected 
                losses due to retirement and other attrition; 
                and
                    (C) gaps in the existing or projected 
                civilian employee workforce of the Department 
                that should be addressed to ensure that the 
                Department has continued access to the senior 
                management, functional, and technical personnel 
                (including scientists and engineers) it needs; 
                and
            (2) a plan of action for developing and reshaping 
        the senior management, functional, and technical 
        workforce of the Department to address the gaps 
        identified under paragraph (1)(C), including--
                    (A) any legislative or administrative 
                action that may be needed to adjust the 
                requirements applicable to any category of 
                civilian personnel identified in subsection (b) 
                or to establish a new category of senior 
                management or technical personnel;
                    (B) any changes in the number of personnel 
                authorized in any category of personnel 
                identified in subsection (b) that may be needed 
                to address such gaps and effectively meet the 
                needs of the Department;
                    (C) any changes in the rates or methods of 
                pay for any category of personnel identified in 
                subsection (b) that may be needed to address 
                inequities and ensure that the Department has 
                full access to appropriately qualified 
                personnel to address such gaps and meet the 
                needs of the Department;
                    (D) specific recruiting and retention 
                goals, including the program objectives of the 
                Department to be achieved through such goals;
                    (E) specific strategies for developing, 
                training, deploying, compensating, motivating, 
                and designing career paths and career 
                opportunities for the senior management, 
                functional, and technical workforce of the 
                Department, including the program objectives of 
                the Department to be achieved through such 
                strategies; and
                    (F) specific steps that the Department has 
                taken or plans to take to ensure that the 
                senior management, functional, and technical 
                workforce of the Department is managed in 
                compliance with the requirements of section 129 
                of title 10, United States Code.

SEC. 1103. THREE-YEAR EXTENSION OF AUTHORITY FOR EXPERIMENTAL PERSONNEL 
                    MANAGEMENT PROGRAM FOR SCIENTIFIC AND TECHNICAL 
                    PERSONNEL.

    Section 1101(e)(1) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note) is 
amended by striking ``September 30, 2008'' and inserting 
``September 30, 2011''.

SEC. 1104. REPORTS ON MEMBERS OF THE ARMED FORCES AND CIVILIAN 
                    EMPLOYEES OF THE DEPARTMENT OF DEFENSE SERVING IN 
                    THE LEGISLATIVE BRANCH.

    (a) Quarterly Reports on Details and Fellowships of Long 
Duration.--Not later than 120 days after the date of the 
enactment of this Act, and quarterly thereafter, the Secretary 
of Defense shall submit to the congressional defense committees 
a report on the members of the Armed Forces and civilian 
employees of the Department of Defense who, as of the date of 
such report, have served continuously in the Legislative Branch 
for more than 12 consecutive months in one or a combination of 
covered legislative details or fellowships.
    (b) Reports on Certain Military Details and Fellowships.--
If a member of the Armed Forces is assigned to a covered 
legislative detail or fellowship as the last tour of duty of 
such member before retirement or separation from the Armed 
Forces in contravention of the regulations of the Department of 
Defense, the Secretary shall submit to the congressional 
defense committees a report on the assignment of such member to 
such covered legislative detail or fellowship. The report shall 
include a rationale for the waiver of the regulations of the 
Department in order to permit the detail or fellowship.
    (c) Report Elements.--Each report under subsection (a) or 
(b) shall set forth, for each member of the Armed Forces or 
civilian employee of the Department of Defense covered by such 
report, the following:
            (1) The name of such member or employee.
            (2) In the case of a member, the Armed Force of 
        such member.
            (3) The committee or member of Congress to which 
        such member or employee is detailed or assigned.
            (4) A general description of the projects or tasks 
        undertaken or to be undertaken, as applicable, by such 
        member or employee as a detailee, fellow, or both.
            (5) The anticipated termination date of the current 
        detail or fellowship of such member or employee.
    (d) Covered Legislative Detail or Fellowship Defined.--In 
this section, the term ``covered legislative detail or 
fellowship'' means the following:
            (1) A detail under the provisions of Department of 
        Defense Directive 1000.17.
            (2) A legislative fellowship (including a 
        legislative fellowship under the provisions of 
        Department of Defense Directive 1322.6).

SEC. 1105. EXTENSION OF AUTHORITY TO WAIVE ANNUAL LIMITATION ON TOTAL 
                    COMPENSATION PAID TO FEDERAL CIVILIAN EMPLOYEES.

    Section 1105 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3450) is 
amended--
            (1) in subsection (a), by inserting ``and 2007'' 
        after ``2006''; and
            (2) in subsection (b)--
                    (A) by striking ``$200,000'' in the 
                heading; and
                    (B) by striking ``a calendar year'' and 
                inserting ``2006 and $212,100 in 2007''.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                   Subtitle A--Assistance and Training

Sec. 1201. Logistic support for allied forces participating in combined 
          operations.
Sec. 1202. Temporary authority to use acquisition and cross-servicing 
          agreements to lend certain military equipment to foreign 
          forces in Iraq and Afghanistan for personnel protection and 
          survivability.
Sec. 1203. Recodification and revision to law relating to Department of 
          Defense humanitarian demining assistance.
Sec. 1204. Enhancements to Regional Defense Combating Terrorism 
          Fellowship Program.
Sec. 1205. Participation of the Department of Defense in multinational 
          military centers of excellence.
Sec. 1206. Modification and extension of authorities relating to program 
          to build the capacity of foreign military forces.
Sec. 1207. Authority for distribution to certain foreign personnel of 
          education and training materials and information technology to 
          enhance military interoperability.

      Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. North Korea.
Sec. 1212. Report on participation of multinational partners in the 
          United Nations Command in the Republic of Korea.
Sec. 1213. Intelligence on Iran.
Sec. 1214. Sense of Congress on United States policy on the nuclear 
          programs of Iran.

                        Subtitle C--Other Matters

Sec. 1221. Exclusion of petroleum, oil, and lubricants from limitations 
          on annual amount of liabilities the United States may accrue 
          under acquisition and cross-servicing agreements.
Sec. 1222. Modification of limitations on assistance under the American 
          Servicemembers' Protection Act of 2002.
Sec. 1223. Humanitarian support for Iraqi children in urgent need of 
          medical care.
Sec. 1224. Sense of Congress opposing the granting of amnesty by the 
          government of Iraq to persons known to have attacked, killed, 
          or wounded members of the United States Armed Forces in Iraq.
Sec. 1225. Annual reports on United States contributions to the United 
          Nations.
Sec. 1226. Comprehensive regional strategy and annual reports on 
          Somalia.
Sec. 1227. Report on the implementation of the Darfur Peace Agreement.
Sec. 1228. Sense of Congress concerning cooperation with Russia on 
          issues pertaining to missile defense.
Sec. 1229. Sense of Congress calling for convening of a summit for a 
          comprehensive political agreement for Iraq.
Sec. 1230. Sense of Congress on the commendable actions of the Armed 
          Forces in Iraq.
Sec. 1231. Annual report on foreign sales of significant military 
          equipment manufactured in the United States.

                  Subtitle A--Assistance and Training

SEC. 1201. LOGISTIC SUPPORT FOR ALLIED FORCES PARTICIPATING IN COMBINED 
                    OPERATIONS.

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

``Sec. 127c. Allied forces participating in combined operations: 
                    authority to provide logistic support, supplies, 
                    and services

    ``(a) Authority.--Subject to subsections (b) and (c), the 
Secretary of Defense may provide logistic support, supplies, 
and services to allied forces participating in a combined 
operation with the armed forces. Provision of such support, 
supplies, and services to the forces of an allied nation may be 
made only with the concurrence of the Secretary of State.
    ``(b) Limitations.--(1) The authority provided by 
subsection (a) may be used only in accordance with the Arms 
Export Control Act and other export control laws of the United 
States.
    ``(2) The authority provided by subsection (a) may be used 
only for a combined operation--
            ``(A) that is carried out during active hostilities 
        or as part of a contingency operation or a noncombat 
        operation (including an operation in support of the 
        provision of humanitarian or foreign disaster 
        assistance, a country stabilization operation, or a 
        peacekeeping operation under chapter VI or VII of the 
        Charter of the United Nations); and
            ``(B) in a case in which the Secretary of Defense 
        determines that the allied forces to be provided 
        logistic support, supplies, and services--
                    ``(i) are essential to the success of the 
                combined operation; and
                    ``(ii) would not be able to participate in 
                the combined operation but for the provision of 
                such logistic support, supplies, and services 
                by the Secretary.
    ``(c) Limitations on Value.--(1) Except as provided in 
paragraph (2), the value of logistic support, supplies, and 
services provided under this section in any fiscal year may not 
exceed $100,000,000.
    ``(2) In addition to any logistic support, supplies, and 
services provided under subsection (a) that are covered by 
paragraph (1), the value of logistic support, supplies, and 
services provided under this section solely for the purposes of 
enhancing the interoperability of the logistical support 
systems of military forces participating in combined operation 
of the United States in order to facilitate such operations may 
not, in any fiscal year, exceed $5,000,000.
    ``(d) Annual Report.--(1) Not later than December 31 each 
year, the Secretary of Defense shall submit to the Committee on 
Armed Services and the Committee on Foreign Relations of the 
Senate and the Committee on Armed Services and the Committee on 
International Relations of the House of Representatives a 
report on the use of the authority provided by subsection (a) 
during the preceding fiscal year.
    ``(2) Each report under paragraph (1) shall be prepared in 
coordination with the Secretary of State.
    ``(3) Each report under paragraph (1) shall include, for 
the fiscal year covered by the report, the following:
            ``(A) Each nation provided logistic support, 
        supplies, and services through the use of the authority 
        provided by subsection (a).
            ``(B) For each such nation, a description of the 
        type and value of logistic support, supplies, and 
        services so provided.
    ``(e) Definition.--In this section, the term `logistic 
support, supplies, and services' has the meaning given that 
term in section 2350(1) 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 127b the following new item:
``127c. Allied forces participating in combined operations: authority to 
          provide logistic support, supplies, and services.''.

SEC. 1202. TEMPORARY AUTHORITY TO USE ACQUISITION AND CROSS-SERVICING 
                    AGREEMENTS TO LEND CERTAIN MILITARY EQUIPMENT TO 
                    FOREIGN FORCES IN IRAQ AND AFGHANISTAN FOR 
                    PERSONNEL PROTECTION AND SURVIVABILITY.

    (a) Authority.--
            (1) In general.--Subject to paragraphs (2), (3), 
        and (4), the Secretary of Defense may treat covered 
        military equipment as logistic support, supplies, and 
        services under subchapter I of chapter 138 of title 10, 
        United States Code, for the purpose of providing for 
        the use of such equipment by military forces of a 
        nation participating in combined operations with the 
        United States in Iraq or Afghanistan.
            (2) Required determinations.--Equipment may be 
        provided to the military forces of a nation under the 
        authority of this section only upon--
                    (A) a determination by the Secretary of 
                Defense that the United States forces in the 
                combined operation have no unfilled 
                requirements for that equipment; and
                    (B) a determination by the Secretary of 
                Defense, with the concurrence of the Secretary 
                of State, that it is in the national security 
                interest of the United States to provide for 
                the use of such equipment by the military 
                forces of that nation under this section.
            (3) Limitation on use of equipment.--Equipment 
        provided to the military forces of a nation under the 
        authority of this section may be used by those forces 
        only in Iraq or Afghanistan and only for personnel 
        protection or to aid in the personnel survivability of 
        those forces.
            (4) Limitation on duration of provision of 
        equipment.--Equipment provided to the military forces 
        of a nation under the authority of this section may be 
        used by the military forces of that nation for not 
        longer than one year.
    (b) Semiannual Reports to Congressional Committees.--
            (1) Use of authority during first six months of 
        fiscal year.--If the authority provided in subsection 
        (a) is exercised during the first six months of a 
        fiscal year, the Secretary of Defense shall submit to 
        the specified congressional committees a report on that 
        exercise of such authority not later than the following 
        April 30.
            (2) Use of authority during second six months of 
        fiscal year.--If the authority provided in subsection 
        (a) is exercised during the second six months of a 
        fiscal year, the Secretary of Defense shall submit to 
        the specified congressional committees a report on that 
        exercise of such authority not later than the following 
        October 30.
            (3) Content.--Each report under paragraph (1) or 
        (2) shall include, with respect to each exercise of the 
        authority provided in subsection (a) during the period 
        covered by the report, the following:
                    (A) A description of the basis for the 
                determination of the Secretary of Defense that 
                it is in the national security interests of the 
                United States to provide for the use of covered 
                military equipment in the manner authorized in 
                subsection (a).
                    (B) Identification of each foreign force 
                that receives such equipment.
                    (C) A description of the type, quantity, 
                and value of the equipment provided to each 
                foreign force that receives such equipment.
                    (D) A description of the terms and duration 
                of the provision of the equipment to each 
                foreign force that receives such equipment.
            (4) Coordination.--Each report under paragraph (1) 
        or (2) shall be prepared in coordination with the 
        Secretary of State.
    (c) Limitations on Provision of Military Equipment.--The 
provision of military equipment under this section is subject 
to the provisions of the Arms Export Control Act (22 U.S.C. 
2751 et seq.) and of any other export control process under 
laws relating to the transfer of military equipment and 
technology to foreign nations.
    (d) Definitions.--In this section:
            (1) The term ``covered military equipment'' means 
        items designated as significant military equipment in 
        categories I, II, III, VII, XI, and XIII of the United 
        States Munitions List under section 38(a)(1) of the 
        Arms Export Control Act (22 U.S.C. 2778(a)(1)).
            (2) The term ``specified congressional committees'' 
        means--
                    (A) the Committee on Armed Services and the 
                Committee on Foreign Relations of the Senate; 
                and
                    (B) the Committee on Armed Services and the 
                Committee on International Relations of the 
                House of Representatives.
    (e) Expiration.--The authority to provide military 
equipment to the military forces of a foreign nation under this 
section expires on September 30, 2008.

SEC. 1203. RECODIFICATION AND REVISION TO LAW RELATING TO DEPARTMENT OF 
                    DEFENSE HUMANITARIAN DEMINING ASSISTANCE.

    (a) Repeal.--Section 401 of title 10, United States Code, 
is amended--
            (1) in subsection (a), by striking paragraph (4);
            (2) in subsection (b)--
                    (A) by striking ``(1)'' after ``(b)''; and
                    (B) by striking paragraph (2);
            (3) in subsection (c), by striking paragraphs (2) 
        and (3); and
            (4) in subsection (e), by striking paragraph (5).
    (b) Recodification and Revision.--
            (1) In general.--Chapter 20 of such title is 
        amended by adding at the end the following new section:

``Sec. 407. Humanitarian demining assistance: authority; limitations

    ``(a) Authority.--(1) Under regulations prescribed by the 
Secretary of Defense, the Secretary of a military department 
may carry out humanitarian demining assistance in a country if 
the Secretary concerned determines that the assistance will 
promote either--
            ``(A) the security interests of both the United 
        States and the country in which the activities are to 
        be carried out; or
            ``(B) the specific operational readiness skills of 
        the members of the armed forces who participate in the 
        activities.
    ``(2) Humanitarian demining assistance under this section 
shall complement, and may not duplicate, any other form of 
social or economic assistance which may be provided to the 
country concerned by any other department or agency of the 
United States.
    ``(3) The Secretary of Defense shall ensure that no member 
of the armed forces, while providing humanitarian demining 
assistance under this section--
            ``(A) engages in the physical detection, lifting, 
        or destroying of landmines or other explosive remnants 
        of war (unless the member does so for the concurrent 
        purpose of supporting a United States military 
        operation); or
            ``(B) provides such assistance as part of a 
        military operation that does not involve the armed 
        forces.
    ``(b) Limitations.--(1) Humanitarian demining assistance 
may not be provided under this section unless the Secretary of 
State specifically approves the provision of such assistance.
    ``(2) Any authority provided under any other provision of 
law to provide humanitarian demining assistance to a foreign 
country shall be carried out in accordance with, and subject 
to, the limitations prescribed in this section.
    ``(c) Expenses.--(1) Expenses incurred as a direct result 
of providing humanitarian demining assistance under this 
section to a foreign country shall be paid for out of funds 
specifically appropriated for the purpose of the provision by 
the Department of Defense of overseas humanitarian assistance.
    ``(2) Expenses covered by paragraph (1) include the 
following:
            ``(A) Travel, transportation, and subsistence 
        expenses of Department of Defense personnel providing 
        such assistance.
            ``(B) The cost of any equipment, services, or 
        supplies acquired for the purpose of carrying out or 
        supporting humanitarian demining activities, including 
        any nonlethal, individual, or small-team equipment or 
        supplies for clearing landmines or other explosive 
        remnants of war that are to be transferred or otherwise 
        furnished to a foreign country in furtherance of the 
        provision of assistance under this section.
    ``(3) The cost of equipment, services, and supplies 
provided in any fiscal year under this section may not exceed 
$10,000,000.
    ``(d) Annual Report.--The Secretary of Defense shall 
include in the annual report under section 401 of this title a 
separate discussion of activities carried out under this 
section during the preceding fiscal year, including--
            ``(1) a list of the countries in which humanitarian 
        demining assistance was carried out during the 
        preceding fiscal year;
            ``(2) the type and description of humanitarian 
        demining assistance carried out in each country during 
        the preceding fiscal year, as specified in paragraph 
        (1);
            ``(3) a list of countries in which humanitarian 
        demining assistance could not be carried out during the 
        preceding fiscal year due to insufficient numbers of 
        Department of Defense personnel to carry out such 
        activities; and
            ``(4) the amount expended in carrying out such 
        assistance in each such country during the preceding 
        fiscal year.
    ``(e) Humanitarian Demining Assistance Defined.--In this 
section, the term `humanitarian demining assistance', as it 
relates to training and support, means detection and clearance 
of landmines and other explosive remnants of war, including 
activities related to the furnishing of education, training, 
and technical assistance with respect to the detection and 
clearance of landmines and other explosive remnants of war.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of such chapter is amended by adding at 
        the end the following new item:

``407. Humanitarian demining assistance: authority; limitations.''.

SEC. 1204. ENHANCEMENTS TO REGIONAL DEFENSE COMBATING TERRORISM 
                    FELLOWSHIP PROGRAM.

    (a) Authorized Purposes.--Subsection (a) of section 2249c 
of title 10, United States Code, is amended by striking 
``associated with'' and all that follows and inserting: 
``associated with the education and training of foreign 
military officers, ministry of defense officials, or security 
officials at military or civilian educational institutions, 
regional centers, conferences, seminars, or other training 
programs conducted under the Regional Defense Combating 
Terrorism Fellowship Program. Costs for which payment may be 
made under this section include the costs of transportation and 
travel and subsistence costs.''.
    (b) Annual Limitation on Amount Obligated.--Subsection (b) 
of such section is amended by striking ``$20,000,000'' and 
inserting ``$25,000,000''.
    (c) Obligation of Funds Across Fiscal Years.--Subsection 
(b) of such section is further amended by adding at the end the 
following new sentence: ``Amounts available under the authority 
in subsection (a) for a fiscal year may be used for programs 
that begin in such fiscal year but end in the next fiscal 
year.''.
    (d) Clerical Amendments.--
            (1) Reference to program.--Subsection (c)(3) of 
        such section is amended by striking ``Regional Defense 
        Counterterrorism Fellowship Program'' and inserting 
        ``program referred to in subsection (a)''.
            (2) Section heading.--The heading of such section 
        is amended to read as follows:

``Sec. 2249c. Regional Defense Combating Terrorism Fellowship Program: 
                    authority to use appropriated funds for costs 
                    associated with education and training of foreign 
                    officials''.

            (3) Table of sections.--The item relating to such 
        section in the table of sections at the beginning of 
        subchapter I of chapter 134 of such title is amended to 
        read as follows

``2249c.  Regional Defense Combating Terrorism Fellowship Program: 
          authority to use appropriated funds for costs associated with 
          education and training of foreign officials.''.

SEC. 1205. PARTICIPATION OF THE DEPARTMENT OF DEFENSE IN MULTINATIONAL 
                    MILITARY CENTERS OF EXCELLENCE.

    (a) Participation Authorized.--During fiscal year 2007, the 
Secretary of Defense may, with the concurrence of the Secretary 
of State, authorize the participation of members of the Armed 
Forces and Department of Defense civilian personnel in any 
multinational military center of excellence hosted by any 
nation or combination of nations referred to in subsection (b) 
for purposes of--
            (1) enhancing the ability of military forces and 
        civilian personnel of the nations participating in such 
        center to engage in joint exercises or coalition or 
        international military operations; or
            (2) improving interoperability between the Armed 
        Forces of the United States and the military forces of 
        friendly foreign nations.
    (b) Covered Nations.--The nations referred to in this 
subsection are the following:
            (1) The United States.
            (2) Any member nation of the North Atlantic Treaty 
        Organization (NATO).
            (3) Any major non-NATO ally.
            (4) Any other friendly foreign nation identified by 
        the Secretary of Defense, with the concurrence of the 
        Secretary of State, for purposes of this section.
    (c) Definitions.--In this section:
            (1) Multinational military center of excellence.--
        The term ``multinational military center of 
        excellence'' means an entity sponsored by one or more 
        nations that is accredited and approved by the Military 
        Committee of the North Atlantic Treaty Organization 
        (NATO) as offering recognized expertise and experience 
        to personnel participating in the activities of such 
        entity for the benefit of NATO by providing such 
        personnel opportunities to--
                    (A) enhance education and training;
                    (B) improve interoperability and 
                capabilities;
                    (C) assist in the development of doctrine; 
                and
                    (D) validate concepts through 
                experimentation.
            (2) Major non-nato ally.--The term ``major non-NATO 
        ally'' means a country (other than a member nation of 
        the North Atlantic Treaty Organization) that is 
        designated as a major non-NATO ally pursuant to section 
        517 of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2321k).
    (d) Memorandum of Understanding.--
            (1) Requirement.--The participation of members of 
        the Armed Forces or Department of Defense civilian 
        personnel in a multinational military center of 
        excellence under subsection (a) shall be in accordance 
        with the terms of one or more memoranda of 
        understanding entered into by the Secretary of Defense, 
        with the concurrence of the Secretary of State, and the 
        foreign nation or nations concerned.
            (2) Scope.--If Department of Defense facilities, 
        equipment, or funds are used to support a multinational 
        military center of excellence under subsection (a), the 
        memoranda of understanding under paragraph (1) with 
        respect to that center shall provide details of any 
        cost-sharing arrangement or other funding arrangement.
    (e) Availability of Appropriated Funds.--
            (1) Availability.--Funds appropriated to the 
        Department of Defense for operation and maintenance are 
        available as follows:
                    (A) To pay the United States share of the 
                operating expenses of any multinational 
                military center of excellence in which the 
                United States participates under this section.
                    (B) To pay the costs of the participation 
                of members of the Armed Forces and Department 
                of Defense civilian personnel in multinational 
                military centers of excellence under this 
                section, including the costs of expenses of 
                such participants.
            (2) Limitation on amount.--The amount available 
        under paragraph (1)(A) in fiscal year 2007 for the 
        expenses referred to in that paragraph may not exceed 
        $3,000,000.
            (3) Limitation on use of funds.--No funds may be 
        used under this section to fund the pay or salaries of 
        members of the Armed Forces and Department of Defense 
        civilian personnel who participate in multinational 
        military centers of excellence under this section.
    (f) Use of Department of Defense Facilities and 
Equipment.--Facilities and equipment of the Department of 
Defense may be used for purposes of the support of 
multinational military centers of excellence under this section 
that are hosted by the Department.
    (g) Report on Use of Authority.--
            (1) Report required.--Not later than October 31, 
        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 on the use of the authority in 
        this section during fiscal year 2007.
            (2) Elements.--The report required by paragraph (1) 
        shall include the following:
                    (A) A detailed description of the 
                participation of the Department of Defense, and 
                of members of the Armed Forces and civilian 
                personnel of the Department, in multinational 
                military centers of excellence under the 
                authority of this section during fiscal year 
                2007.
                    (B) For each multinational military center 
                of excellence in which the Department of 
                Defense, or members of the Armed Forces or 
                civilian personnel of the Department, so 
                participated--
                            (i) a description of such 
                        multinational military center of 
                        excellence;
                            (ii) a description of the 
                        activities participated in by the 
                        Department, or by members of the Armed 
                        Forces or civilian personnel of the 
                        Department; and
                            (iii) a statement of the costs of 
                        the Department for such participation, 
                        including--
                                    (I) a statement of the 
                                United States share of the 
                                expenses of such center and a 
                                statement of the percentage of 
                                the United States share of the 
                                expenses of such center to the 
                                total expenses of such center; 
                                and
                                    (II) a statement of the 
                                amount of such costs (including 
                                a separate statement of the 
                                amount of costs paid for under 
                                the authority of this section 
                                by category of costs).

SEC. 1206. MODIFICATION AND EXTENSION OF AUTHORITIES RELATING TO 
                    PROGRAM TO BUILD THE CAPACITY OF FOREIGN MILITARY 
                    FORCES.

    (a) Program Implementation Vested in Secretary of 
Defense.--
            (1) Authority.--Subsection (a) of section 1206 of 
        the National Defense Authorization Act for Fiscal Year 
        2006 (Public Law 109-163; 119 Stat. 3456) is amended by 
        striking by ``The President may direct the Secretary of 
        Defense to'' and inserting ``The Secretary of Defense, 
        with the concurrence of the Secretary of State, may''.
            (2) Conforming amendments.--Such section is further 
        amended--
                    (A) in subsection (b), by striking 
                ``directed by the President'' in paragraphs (1) 
                and (2);
                    (B) in subsection (c)--
                            (i) in paragraph (1), by striking 
                        ``directed by the President''; and
                            (ii) in paragraphs (2) and (3), by 
                        striking ``The President'' and 
                        inserting ``The Secretary of Defense'';
                    (C) in subsection (d), by striking 
                ``directed by the President'' both places it 
                appears; and
                    (D) in subsection (e)(2), by striking ``as 
                directed by the President''.
    (b) Funding.--Subsection (c)(1) of such section is further 
amended--
            (1) by striking ``$200,000,000'' and inserting 
        ``$300,000,000''; and
            (2) by striking ``defense-wide''.
    (c) Notification to Congress.--Paragraph (1) of subsection 
(e) of such section is amended to read as follows:
            ``(1) Notification.--Whenever the Secretary of 
        Defense decides, with the concurrence of the Secretary 
        of State, to conduct or support a program authorized 
        under subsection (a), the Secretary of Defense shall 
        submit to Congress a notification in writing of that 
        decision. Any such notification shall be prepared in 
        coordination with the Secretary of State.''.
    (d) One-Year Extension of Program Authority.--Subsection 
(g) of such section is amended to read as follows:
    ``(g) Termination of Program.--The authority provided under 
subsection (a) terminates at the close of September 30, 2008. 
Any program directed before that date may be completed, but 
only using funds available for fiscal year 2006, 2007, or 
2008.''.

SEC. 1207. AUTHORITY FOR DISTRIBUTION TO CERTAIN FOREIGN PERSONNEL OF 
                    EDUCATION AND TRAINING MATERIALS AND INFORMATION 
                    TECHNOLOGY TO ENHANCE MILITARY INTEROPERABILITY.

    (a) Distribution Authorized.--To enhance interoperability 
between the Armed Forces and military forces of friendly 
foreign countries, the Secretary of Defense may--
            (1) provide to personnel referred to in subsection 
        (b) electronically-distributed learning content for the 
        education and training of such personnel for the 
        development and enhancement of allied and friendly 
        military capabilities for multinational operations, 
        including joint exercises and coalition operations; and
            (2) provide information technology, including 
        computer software developed for such purpose, but only 
        to the extent necessary to support the use of such 
        learning content for the education and training of such 
        personnel.
    (b) Authorized Recipients.--The personnel to whom learning 
content and information technology may be provided under 
subsection (a) are military and civilian personnel of a 
friendly foreign government, with the permission of that 
government.
    (c) Education and Training.--Any education and training 
provided under subsection (a) shall include the following:
            (1) Internet-based education and training.
            (2) Advanced distributed learning and similar 
        Internet learning tools, as well as distributed 
        training and computer assisted exercises.
    (d) Secretary of State Concurrence in Certain Activities.--
In the case of any activity proposed to be undertaken under 
this section that is not authorized by another provision of 
law, the Secretary of Defense may undertake such activity only 
with the concurrence of the Secretary of State.
    (e) Applicability of Export Control Regimes.--The provision 
of learning content and information technology under this 
section shall be subject to the provisions of the Arms Export 
Control Act (22 U.S.C. 2751 et seq.) and any other export 
control regime under law relating to the transfer of military 
technology to foreign nations.
    (f) Secretary of Defense Guidance.--
            (1) Guidance required.--The Secretary of Defense 
        shall develop and issue guidance on the procedures for 
        the use of the authority provided in this section.
            (2) Submittal to congressional committees.--Not 
        later than 30 days after issuing the guidance required 
        by paragraph (1), the Secretary shall submit to the 
        Committees on Armed Services of the Senate and House of 
        Representatives a report setting forth such guidance.
            (3) Modification.--If the Secretary modifies the 
        guidance issued under paragraph (1), the Secretary 
        shall submit to the committees named in paragraph (2) a 
        report setting forth the modified guidance not later 
        than 30 days after the date of such modification.
    (g) Annual Report.--
            (1) Report required.--Not later than October 31 of 
        2007 and 2008, the Secretary of Defense shall submit to 
        the committees named in subsection (f)(1) a report on 
        the exercise of the authority provided in this section 
        during the preceding fiscal year.
            (2) Elements.--Each report under paragraph (1) 
        shall include, for the fiscal year covered by such 
        report, the following:
                    (A) A statement of the recipients of 
                learning content and information technology 
                provided under this section.
                    (B) A description of the type, quantity, 
                and value of the learning content and 
                information technology provided under this 
                section.
    (h) Termination.--The authority provided in this section 
shall expire on September 30, 2008.

     Subtitle B--Nonproliferation Matters and Countries of Concern

SEC. 1211. NORTH KOREA.

    (a) Coordinator of Policy on North Korea.--
            (1) Appointment required.--Not later than 60 days 
        after the date of the enactment of this Act, the 
        President shall appoint a senior presidential 
        coordinator of United States policy on North Korea.
            (2) Designation.--The individual appointed under 
        paragraph (1) may be known as the ``North Korea Policy 
        Coordinator'' (in this subsection referred to as the 
        ``Coordinator)''.
            (3) Duties.--The Coordinator shall--
                    (A) conduct a full and complete interagency 
                review of United States policy toward North 
                Korea;
                    (B) consult with foreign governments, 
                including the parties to the Six Party Talks on 
                the denuclearization of the Korean peninsula; 
                and
                    (C) provide policy direction and leadership 
                for negotiations with North Korea relating to 
                nuclear weapons, ballistic missiles, and other 
                security matters.
            (4) Report.--Not later than 90 days after the date 
        of the appointment of an individual as Coordinator 
        under paragraph (1), the Coordinator shall submit to 
        the President and Congress an unclassified report, with 
        a classified annex if necessary, on the actions 
        undertaken under paragraph (3). The report shall set 
        forth--
                    (A) the results of the review under 
                paragraph (3)(A); and
                    (B) any other matter on North Korea that 
                the Coordinator considers appropriate.
            (5) Termination.--The position under this 
        subsection shall terminate no later than December 31, 
        2011.
    (b) Semiannual Reports on Nuclear and Missile Programs of 
North Korea.--
            (1) Reports required.--Not later than 90 days after 
        the date of the enactment of this Act, and every 180 
        days thereafter for fiscal years 2007 and 2008, the 
        President shall transmit to Congress an unclassified 
        report, with a classified annex as appropriate, on the 
        nuclear program and the missile program of North Korea.
            (2) Matters to be included.--Each report under 
        paragraph (1) shall include the following:
                    (A) The most current national intelligence 
                estimate on the nuclear program and the missile 
                program of North Korea and, consistent with the 
                protection of intelligence sources and methods, 
                an unclassified summary of the key judgments in 
                that estimate.
                    (B) The most current unclassified United 
                States Government assessment, stated as a range 
                if necessary, of--
                            (i) the number of nuclear weapons 
                        possessed by North Korea; and
                            (ii) the amount of nuclear material 
                        suitable for weapons use produced by 
                        North Korea by plutonium reprocessing 
                        and uranium enrichment.
                    (C) Any other matter relating to the 
                nuclear program or missile program of North 
                Korea that the President considers appropriate.

SEC. 1212. REPORT ON PARTICIPATION OF MULTINATIONAL PARTNERS IN THE 
                    UNITED NATIONS COMMAND IN THE REPUBLIC OF KOREA.

    (a) Report Required.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense, in 
coordination with the Secretary of State, shall submit to the 
appropriate committees of Congress a report on participation of 
multinational partners in the United Nations Command in the 
Republic of Korea.
    (b) Elements.--The report required by subsection (a) shall 
include the following:
            (1) A list of the nations that are current members 
        of the United Nations Command in the Republic of Korea, 
        together with a detailed description of the role and 
        participation of each such member nation in the 
        responsibilities and activities of the United Nations 
        Command.
            (2) A detailed description of efforts being 
        undertaken by the United States to encourage enhanced 
        participation in the responsibilities and activities of 
        the United Nations Command in the Republic of Korea by 
        such member nations.
            (3) A discussion of how members of the United 
        Nations Command in the Republic of Korea might be 
        persuaded to increase their contribution of military 
        forces stationed in the Republic and an assessment of 
        how United States political-military requirements in 
        the Republic of Korea might be affected by such 
        increases.
            (4) An assessment of how the contribution of 
        additional military forces by a member of the United 
        Nations Command might affect that member's approach to 
        facilitating a diplomatic resolution of the nuclear 
        challenge posed by the Democratic People's Republic of 
        Korea.
    (c) Form.--The report required by subsection (a) shall be 
submitted in unclassified form, but may include a classified 
annex.
    (d) Appropriate Committees of Congress Defined.--In this 
section, the term ``appropriate committees of Congress'' 
means--
            (1) the Committees on Armed Services and Foreign 
        Relations of the Senate; and
            (2) the Committees on Armed Services and 
        International Relations of the House of 
        Representatives.

SEC. 1213. INTELLIGENCE ON IRAN.

    (a) Submittal to Congress of Updated National Intelligence 
Estimate on Iran.--
            (1) Submittal required.--The Director of National 
        Intelligence shall submit to Congress an updated, 
        comprehensive National Intelligence Estimate on Iran. 
        Such National Intelligence Estimate shall be submitted 
        as soon as is practicable, but not later than the end 
        of the 90-day period beginning on the date of the 
        enactment of this Act.
            (2) Notice regarding submittal.--If before the end 
        of the 90-day period specified in paragraph (1) the 
        Director determines that the National Intelligence 
        Estimate required by that paragraph cannot be submitted 
        by the end of that period as required by that 
        paragraph, the Director shall (before the end of that 
        period) submit to Congress a report setting forth--
                    (A) the reasons why the National 
                Intelligence Estimate cannot be submitted by 
                the end of such 90-day period; and
                    (B) an estimated date for the submittal of 
                the National Intelligence Estimate.
            (3) Form.--The National Intelligence Estimate under 
        paragraph (1) shall be submitted in classified form. 
        Consistent with the protection of intelligence sources 
        and methods, an unclassified summary of the key 
        judgments of the National Intelligence Estimate should 
        be submitted.
    (b) Presidential Report on Policy Objectives and United 
States Strategy Regarding Iran.--
            (1) Report required.--As soon as is practicable, 
        but not later than 90 days after the date of the 
        enactment of this Act, the President shall submit to 
        Congress a report on--
                    (A) the objectives of United States policy 
                on Iran; and
                    (B) the strategy for achieving those 
                objectives.
            (2) Form.--The report under paragraph (1) shall be 
        submitted in unclassified form with a classified annex, 
        as appropriate.
            (3) Elements.--The report submitted under paragraph 
        (1) shall--
                    (A) address the role of diplomacy, 
                incentives, sanctions, other punitive measures 
                and incentives, and other programs and 
                activities relating to Iran for which funds are 
                provided by Congress; and
                    (B) summarize United States contingency 
                planning regarding the range of possible United 
                States military actions in support of United 
                States policy objectives with respect to Iran.

SEC. 1214. SENSE OF CONGRESS ON UNITED STATES POLICY ON THE NUCLEAR 
                    PROGRAMS OF IRAN.

    Congress--
            (1) endorses the policy of the United States to 
        achieve a successful diplomatic outcome, in 
        coordination with leading members of the international 
        community, with respect to the threat posed by the 
        efforts of the Iranian regime to acquire a capability 
        to produce nuclear weapons;
            (2) calls on Iran to--
                    (A) suspend fully and verifiably its 
                enrichment and reprocessing activities, as 
                required by the International Atomic Energy 
                Agency (IAEA); and
                    (B) work with the international community 
                to achieve a negotiated outcome to the concerns 
                regarding its nuclear program;
            (3) in the event Iran fails to comply with United 
        Nations Security Council Resolution 1696 (July 31, 
        2006), urges the Security Council to work for the 
        adoption of appropriate measures under Article 41 of 
        Chapter VII of the Charter of the United Nations; and
            (4) urges the President and the Secretary of State 
        to keep Congress fully and currently informed regarding 
        the progress of this vital diplomatic initiative.

                       Subtitle C--Other Matters

SEC. 1221. EXCLUSION OF PETROLEUM, OIL, AND LUBRICANTS FROM LIMITATIONS 
                    ON ANNUAL AMOUNT OF LIABILITIES THE UNITED STATES 
                    MAY ACCRUE UNDER ACQUISITION AND CROSS-SERVICING 
                    AGREEMENTS.

    (a) Exclusion.--Section 2347 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking ``(other than 
        petroleum, oils, and lubricants)'' in paragraphs (1) 
        and (2); and
            (2) by adding at the end the following new 
        subsection:
    ``(d) The amount of any sale, purchase, or exchange of 
petroleum, oils, or lubricants by the United States under this 
subchapter in any fiscal year shall be excluded in any 
computation for the purposes of subsection (a) or (b) of the 
amount of reimbursable liabilities or reimbursable credits that 
the United States accrues under this subchapter in that fiscal 
year.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect beginning with fiscal year 2007.
    (c) Reports.--Not later than October 31 of 2007 and 2008, 
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 exercise during 
the preceding fiscal year of the authority provided in 
subchapter I of chapter 138 of title 10, United States Code, 
with respect to the sale, purchase, or exchange of petroleum, 
oil, or lubricants. Each report shall identify each country 
involved in a sale, purchase, or exchange of petroleum, oil, or 
lubricants with the United States and include a description, by 
country, of the type, quantity, and value of the petroleum, 
oil, and lubricants that were sold, purchased, or exchanged by 
the United States.

SEC. 1222. MODIFICATION OF LIMITATIONS ON ASSISTANCE UNDER THE AMERICAN 
                    SERVICEMEMBERS' PROTECTION ACT OF 2002.

    Section 2013(13)(A) of the American Servicemembers' 
Protection Act of 2002 (22 U.S.C. 7432(13)(A)) is amended by 
striking ``or 5''.

SEC. 1223. HUMANITARIAN SUPPORT FOR IRAQI CHILDREN IN URGENT NEED OF 
                    MEDICAL CARE.

    (a) Findings.--Congress makes the following findings:
            (1) The Secretary of Defense has discretionary 
        authority to permit space-available travel on military 
        aircraft for various reasons, including humanitarian 
        purposes.
            (2) Recently, 110 Iraqi children journeyed 22 hours 
        by bus from Baghdad, Iraq, to Amman, Jordan, for 
        urgently needed oral/facial surgery. While traveling, 
        armed insurgents stopped and boarded the children's 
        bus, raising serious questions about the safety of 
        further travel by ground.
            (3) Pursuant to the Secretary's discretionary 
        authority referred to in paragraph (1), the Secretary 
        authorized the Iraqi children to travel on military 
        aircraft for their return trip from Amman to Baghdad.
            (4) The Secretary is to be commended for his 
        initiative in providing for the safe return of these 
        children to Iraq by military aircraft.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense should continue to provide space-
available travel on military aircraft for humanitarian reasons 
to Iraqi children who would otherwise have no means available 
to seek urgently needed medical care such as that provided by a 
humanitarian organization in Amman, Jordan.

SEC. 1224. SENSE OF CONGRESS OPPOSING THE GRANTING OF AMNESTY BY THE 
                    GOVERNMENT OF IRAQ TO PERSONS KNOWN TO HAVE 
                    ATTACKED, KILLED, OR WOUNDED MEMBERS OF THE UNITED 
                    STATES ARMED FORCES IN IRAQ.

    (a) Findings.--Congress makes the following findings:
            (1) The Armed Forces of the United States and 
        coalition military forces are serving heroically in 
        Iraq to provide all the people of Iraq a better future.
            (2) The Armed Forces of the United States and 
        coalition military forces have served bravely in Iraq 
        since the beginning of military operations in March of 
        2003.
            (3) As of June 15, 2006, more than 2,500 members of 
        the Armed Forces of the United States and members of 
        coalition military forces have been killed and more 
        than 18,000 have been injured in operations to bring 
        peace and stability to all the people of Iraq.
    (b) Sense of Congress.--
            (1) Iraqi sovereignty.--It is the sense of Congress 
        that the goal of the United States and of the coalition 
        partners of the United States has been to empower the 
        Iraqi people and, in doing so, to recognize their 
        freedom to exercise full sovereignty.
            (2) Amnesty.--Recognizing the sovereignty of the 
        Iraqi people as referred to in paragraph (1), it is 
        further the sense of Congress that the Government of 
        Iraq, consistent with that sovereignty, should not 
        grant amnesty to persons known to have attacked, 
        killed, or wounded members of the Armed Forces of the 
        United States.

SEC. 1225. ANNUAL REPORTS ON UNITED STATES CONTRIBUTIONS TO THE UNITED 
                    NATIONS.

    (a) Annual Report.--Not later than 90 days after the date 
of the enactment of this Act and annually thereafter until 
December 31, 2010, the President shall submit to Congress a 
report listing all assessed and voluntary contributions of the 
United States Government for the preceding fiscal year to the 
United Nations and United Nations affiliated agencies and 
related bodies.
    (b) Contents.--Each report required under subsection (a) 
shall set forth, for the fiscal year covered by such report, 
the following:
            (1) The total amount of all assessed and voluntary 
        contributions of the United States Government to the 
        United Nations and United Nations affiliated agencies 
        and related bodies.
            (2) The approximate percentage of United States 
        Government contributions to each United Nations 
        affiliated agency or body in such fiscal year when 
        compared with all contributions to such agency or body 
        from any source in such fiscal year.
            (3) For each such contribution--
                    (A) the amount of such contribution;
                    (B) a description of such contribution 
                (including whether assessed or voluntary);
                    (C) the department or agency of the United 
                States Government responsible for such 
                contribution;
                    (D) the purpose of such contribution; and
                    (E) the United Nations or United Nations 
                affiliated agency or related body receiving 
                such contribution.

SEC. 1226. COMPREHENSIVE REGIONAL STRATEGY AND ANNUAL REPORTS ON 
                    SOMALIA.

    (a) Sense of Congress.--It is the sense of Congress that 
the United States should--
            (1) support--
                    (A) the establishment of a functional, 
                legitimate, and unified national government in 
                Somalia;
                    (B) humanitarian assistance to the people 
                of Somalia;
                    (C) efforts to prevent Somalia from 
                becoming a safe haven for terrorists and 
                terrorist activities; and
                    (D) regional stability;
            (2) broaden and integrate its strategic approach 
        toward Somalia within the context of United States 
        policy and activities in the countries of the Horn of 
        Africa and other relevant countries on the Arabian 
        Peninsula; and
            (3) coordinate and carry out all diplomatic, 
        humanitarian, counterterrorism, and security-related 
        activities in Somalia within the framework of an 
        interagency process.
    (b) Comprehensive Regional Strategy.--
            (1) In general.--Not later than 90 days after the 
        date of the enactment of this Act, the President shall 
        submit to the appropriate congressional committees a 
        report on a comprehensive regional strategy toward 
        Somalia within the context of United States policy and 
        activities in the countries of the Horn of Africa and 
        other relevant countries on the Arabian Peninsula.
            (2) Components.--The comprehensive regional 
        strategy described in the report shall include the 
        following components:
                    (A) A clearly stated policy towards Somalia 
                that will help establish a functional, 
                legitimate, and unified national government in 
                Somalia that is capable of maintaining the rule 
                of law and preventing Somalia from becoming a 
                safe haven for terrorists.
                    (B) A description of the type and form of 
                bilateral, regional, and multilateral efforts 
                to coordinate and strengthen diplomatic 
                engagement with Somalia.
                    (C) A description of an integrated 
                political, humanitarian, intelligence, and 
                military approach to counter transnational 
                security threats in Somalia and throughout the 
                countries of the Horn of Africa.
                    (D) A description of an interagency 
                framework involving the Federal agencies and 
                departments of the United States to plan, 
                coordinate, and execute United States policy 
                and activities in Somalia and throughout the 
                countries of the Horn of Africa and to oversee 
                policy and program implementation.
                    (E) Guidance on the manner in which the 
                comprehensive regional strategy will be 
                implemented.
    (c) Annual Reports.--Not later than April 1, 2007, and 
annually thereafter until April 1, 2010, the President shall 
submit to the appropriate congressional committees a report on 
the status of the implementation of the comprehensive regional 
strategy toward Somalia required under subsection (b).
    (d) Form.--Each report under this section, including the 
comprehensive regional strategy, shall be submitted in 
unclassified form, but may include a classified annex, as 
appropriate.
    (e) Appropriate Congressional Committees Defined.--In this 
section, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Armed Services, the Committee 
        on International Relations, and the Permanent Select 
        Committee on Intelligence of the House of 
        Representatives; and
            (2) the Committee on Armed Services, the Committee 
        on Foreign Relations, and the Select Committee on 
        Intelligence of the Senate.

SEC. 1227. REPORT ON THE IMPLEMENTATION OF THE DARFUR PEACE AGREEMENT.

    (a) Requirement for Reports.--Not later than 90 days after 
the date of the enactment of this Act and every six months 
thereafter until December 31, 2011, the Secretary of Defense, 
in coordination with the Secretary of State, shall submit to 
the appropriate congressional committees a report on the 
implementation of the Darfur Peace Agreement of May 5, 2006, 
and the contributions of the Department of Defense to the North 
Atlantic Treaty Organization in support of the African Union 
Mission in Sudan (AMIS).
    (b) Contents.--Each report under subsection (a) shall 
include--
            (1) a description of major violations of the Darfur 
        Peace Agreement and major delays in implementing the 
        Agreement, including violations and delays relating to 
        the demobilization and disarmament of the Janjaweed, 
        the voluntary safe return of internally displaced 
        persons and refugees, and security and access for 
        humanitarian supply routes;
            (2) an assessment of the extent to which the 
        Ceasefire Commission and the AMIS are able to monitor 
        the implementation of the Darfur Peace Agreement and an 
        assessment of efforts to impede the monitoring 
        activities of the Ceasefire Commission and AMIS;
            (3) a list of contributions made by the Department 
        of Defense in support of NATO assistance to AMIS and 
        the United Nations peacekeeping operation authorized 
        for Darfur;
            (4) a description of the activities carried out by 
        United States Armed Forces in support of NATO 
        assistance to AMIS and the United Nations peacekeeping 
        operation authorized for Darfur;
            (5) the amount of funds expended by the Department 
        of Defense in support of NATO assistance to AMIS; and
            (6) a description of the efforts by the United 
        States to obtain troop contributions from other 
        countries to serve in the United Nations peacekeeping 
        operation authorized for Darfur.
     (c) Form and Availability of Reports.--
            (1) Form.--Reports submitted under this section 
        shall be in an unclassified form and may include a 
        classified annex.
            (2) Availability.--The unclassified portion of such 
        reports shall be made available to the public.
    (d) Appropriate Congressional Committees Defined.--In this 
section, the term ``appropriate committees of Congress'' 
means--
            (1) the Committee on Armed Services and the 
        Committee on International Relations of the House of 
        Representatives; and
            (2) the Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.

SEC. 1228. SENSE OF CONGRESS CONCERNING COOPERATION WITH RUSSIA ON 
                    ISSUES PERTAINING TO MISSILE DEFENSE.

    It is the sense of Congress that--
            (1) cooperation between the United States and 
        Russia with regard to missile defense is in the 
        interest of the United States;
            (2) there does not exist strong enough engagement 
        between the United States and Russia with respect to 
        missile defense cooperation;
            (3) the United States should explore innovative and 
        nontraditional means of cooperation with Russia on 
        issues pertaining to missile defense; and
            (4) as part of such an effort, the Secretary of 
        Defense should consider the possibilities for United 
        States-Russian cooperation with respect to missile 
        defense through--
                    (A) the testing of specific elements of the 
                detection and tracking equipment of the Missile 
                Defense Agency of the United States Department 
                of Defense through the use of Russian target 
                missiles; and
                    (B) the provision of early warning radar to 
                the Missile Defense Agency by the use of 
                Russian radar data.

SEC. 1229. SENSE OF CONGRESS CALLING FOR CONVENING OF A SUMMIT FOR A 
                    COMPREHENSIVE POLITICAL AGREEMENT FOR IRAQ.

    (a) In General.--It is the sense of Congress that the 
President should continue working with the Government of Iraq 
and the United Nations to convene a summit as soon as possible 
after the enactment of this Act for the purpose of reaching a 
comprehensive political agreement for Iraq--
            (1) that promotes the Government of Iraq's National 
        Reconciliation and Dialogue Plan of June 25, 2006, 
        which is designed to focus on many of the fundamental 
        questions dividing Iraqis; and
            (2) that address the issues of--
                    (A) federalism;
                    (B) the equitable distribution of oil 
                revenues;
                    (C) the demobilization and reintegration of 
                armed militias;
                    (D) the inducement of the armed opposition 
                to lay down their arms and join the political 
                process;, and
                    (E) the building of a renewed international 
                partnership with Iraq aimed at encouraging the 
                economic recovery and reconstruction of Iraq.
    (b) Summit Participants.--A summit convened for the purpose 
stated in subsection (a) should include the following 
participants (as well as other appropriate participants):
            (1) Representatives of Iraq's neighbors.
            (2) Representatives of the Arab League.
            (3) The Secretary General of the North Atlantic 
        Treaty Organization.
            (4) Representatives of the European Union.
            (5) Leaders of the governments of each permanent 
        member of the United Nations Security Council.

SEC. 1230. SENSE OF CONGRESS ON THE COMMENDABLE ACTIONS OF THE ARMED 
                    FORCES IN IRAQ.

    (a) Findings.--Congress makes the following findings:
            (1) On June 7, 2006, the United States Armed Forces 
        carried out an air strike near the City of Baquba, 
        northeast of Baghdad, Iraq, that resulted in the death 
        of Ahmad Fadeel al-Nazal al-Khalayleh, better known as 
        Abu Musab al-Zarqawi, the leader of the al-Qaeda in 
        Iraq terrorist organization and the most wanted 
        terrorist in Iraq.
            (2) Zarqawi, as the operational commander of al-
        Qaeda in Iraq, led a brutal campaign of suicide 
        bombings, car bombings, assassinations, and abductions 
        that caused the deaths of many members of the United 
        States Armed Forces, civilian officials of the United 
        States Government, thousands of innocent Iraqi 
        civilians, and innocent civilians of other nations.
            (3) Zarqawi publicly swore his allegiance to Osama 
        bin Laden and al-Qaeda in 2004, and changed the name of 
        his terrorist organization from the ``Monotheism and 
        Holy War Group'' to ``al-Qaeda in Iraq''.
            (4) In an audiotape broadcast in December 2004, 
        Osama bin Laden, the leader of al-Qaeda's worldwide 
        terrorist organization, called Zarqawi ``the prince of 
        al-Qaeda in Iraq''.
            (5) Three perpetrators confessed to being paid by 
        Zarqawi to carry out the October 2002 assassination of 
        the United States diplomat, Lawrence Foley, in Amman, 
        Jordan.
            (6) The Monotheism and Holy War Group claimed 
        responsibility for--
                    (A) the August 2003 suicide attack that 
                destroyed the United Nations headquarters in 
                Baghdad and killed the United Nations envoy to 
                Iraq, Sergio Vieira de Mello, along with 21 
                other people; and
                    (B) the suicide attack on the Imam Ali 
                Mosque in Najaf that occurred less than two 
                weeks later, which killed at least 85 people, 
                including the Ayatollah Sayed Mohammed Baqr al-
                Hakim, and wounded dozens more.
            (7) Zarqawi is believed to have personally beheaded 
        American hostage Nicholas Berg in May 2004.
            (8) In May 2004, Zarqawi was implicated in a car 
        bombing that killed Izzadine Salim, the rotating 
        president of the Iraqi Governing Council.
            (9) In November 2005, al-Qaeda in Iraq attacked 
        three hotels in Amman, Jordan, killing at least 67 
        innocent civilians.
            (10) Zarqawi and his terrorist organization were 
        directly responsible for numerous other brutal 
        terrorist attacks against the American and coalition 
        forces, Iraqi security forces and recruits, and 
        innocent Iraqi civilians.
            (11) Zarqawi sought to turn Iraq into a safe haven 
        for al-Qaeda.
            (12) To achieve that end, Zarqawi stated his 
        opposition to the democratically elected government of 
        Iraq and worked to divide the Iraqi people, foment 
        sectarian violence, and incite a civil war in Iraq.
            (13) The members of the United States Armed Forces, 
        the intelligence community, and other Federal agencies, 
        along with coalition partners and the Iraqi Security 
        Forces, should be commended for their courage and 
        extraordinary efforts to track down the most wanted 
        terrorist in Iraq and to secure a free and prosperous 
        future for the people of Iraq.
    (b) Sense of Congress.--It is the sense of Congress that 
Congress--
            (1) commends the United States Armed Forces, the 
        intelligence community, and other Federal agencies, 
        along with coalition partners, for the actions taken 
        through June 7, 2006, that resulted in the death of Abu 
        Musab al-Zarqawi, the leader of the al-Qaeda in Iraq 
        terrorist organization and the most wanted terrorist in 
        Iraq;
            (2) commends the United States Armed Forces, the 
        intelligence community, and other agencies for the 
        action referred to in paragraph (1) and their exemplary 
        performance in striving to bring freedom, democracy, 
        and security to the people of Iraq;
            (3) commends the coalition partners of the United 
        States, the new government of Iraq, and members of the 
        Iraqi Security Forces for their invaluable assistance 
        in the operation referred to in paragraph (1) and their 
        extraordinary efforts to secure a free and prosperous 
        Iraq;
            (4) commends United States civilian and military 
        leadership for their continuing efforts to eliminate 
        the leadership of al-Qaeda in Iraq, and also commends 
        the new government of Iraq, led by Prime Minister Nouri 
        al-Maliki, for its contribution to that achievement;
            (5) recognizes that the death of Abu Musab al-
        Zarqawi is a victory for American and coalition forces 
        in the global war on terror and a blow to the al-Qaeda 
        terrorist organization;
            (6) commends Iraqi Prime Minister Nouri al-Maliki 
        on the finalization of the new Iraqi cabinet;
            (7) urges the democratically elected government in 
        Iraq to use this opportunity to defeat the terrorist 
        enemy, to put an end to ethnic and sectarian violence, 
        and to achieve a free, prosperous, and secure future 
        for Iraq; and
            (8) affirms that the Congress will continue to 
        support the United States Armed Forces, the 
        democratically elected unity government of Iraq, and 
        the people of Iraq in their quest to secure a free, 
        prosperous, and democratic Iraq.

SEC. 1231. ANNUAL REPORT ON FOREIGN SALES OF SIGNIFICANT MILITARY 
                    EQUIPMENT MANUFACTURED IN THE UNITED STATES.

    (a) Report Required.--Not later than March 31 of each year, 
the Secretary of Defense shall submit to the congressional 
defense committees a report on foreign military sales and 
direct sales to foreign entities of significant military 
equipment manufactured in the United States during the 
preceding calendar year.
    (b) Contents.--Each report required by subsection (a) shall 
indicate, for each sale of significant military equipment in 
excess of $2,000,000--
            (1) the nature of the equipment and the dollar 
        value of the sale;
            (2) the country to which the equipment was sold; 
        and
            (3) the manufacturer of the equipment and the State 
        in which the equipment was manufactured.
    (c) Public Availability.--The Secretary of Defense shall 
make each report required by subsection (a) publicly available 
to the maximum extent practicable.
    (d) Significant Military Equipment Defined.--In this 
section, the term ``significant military equipment'' has the 
meaning given the term in section 47(9) of the Arms Export 
Control Act (22 U.S.C. 2794(9) note).

  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. Extension of temporary authority to waive limitation on 
          funding for chemical weapons destruction facility in Russia.
Sec. 1304. National Academy of Sciences study of prevention of 
          proliferation of biological weapons.

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 2007 Cooperative Threat Reduction Funds 
Defined.--As used in this title, the term ``fiscal year 2007 
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 $372,128,000 
authorized to be appropriated to the Department of Defense for 
fiscal year 2007 in section 301(19) for Cooperative Threat 
Reduction programs, the following amounts may be obligated for 
the purposes specified:
            (1) For strategic offensive arms elimination in 
        Russia, $76,985,000.
            (2) For nuclear weapons storage security in Russia, 
        $87,100,000.
            (3) For nuclear weapons transportation security in 
        Russia, $33,000,000.
            (4) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $37,486,000.
            (5) For biological weapons proliferation prevention 
        in the former Soviet Union, $68,357,000.
            (6) For chemical weapons destruction in Russia, 
        $42,700,000.
            (7) For defense and military contacts, $8,000,000.
            (8) For activities designated as Other Assessments/
        Administrative Support, $18,500,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2007 Cooperative Threat Reduction 
funds may be obligated or expended for a purpose other than a 
purpose listed in paragraphs (1) through (8) of subsection (a) 
until 30 days after the date that the Secretary of Defense 
submits to Congress a report on the purpose for which the funds 
will be obligated or expended and the amount of funds to be 
obligated or expended. Nothing in the preceding sentence shall 
be construed as authorizing the obligation or expenditure of 
fiscal year 2007 Cooperative Threat Reduction funds for a 
purpose for which the obligation or expenditure of such funds 
is specifically prohibited under this title or any other 
provision of law.
    (c) Limited Authority to Vary Individual Amounts.--
            (1) In general.--Subject to 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 2007 for a purpose listed 
        in any of the paragraphs in subsection (a) in excess of 
        the specific amount authorized for that purpose.
            (2) Notice-and-wait required.--An obligation of 
        funds for a purpose stated in 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) Restriction.--The Secretary may not, under the 
        authority provided in paragraph (1), obligate amounts 
        for a purpose stated in any of paragraphs (6) through 
        (8) of subsection (a) in excess of 125 percent of the 
        specific amount authorized for such purpose.

SEC. 1303. EXTENSION OF TEMPORARY AUTHORITY TO WAIVE LIMITATION ON 
                    FUNDING FOR CHEMICAL WEAPONS DESTRUCTION FACILITY 
                    IN RUSSIA.

    Section 1303 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 2094; 22 U.S.C. 5952 note) is amended--
            (1) in subsection (a), by striking ``shall not 
        apply for a calendar year for which the President 
        submits to Congress a written certification'' and 
        inserting the following: ``shall not apply for a 
        calendar year to the chemical weapons destruction 
        facility that is (as of 2006) under construction at 
        Shchuch'ye in the Russian Federation, if the President 
        submits to Congress a written certification, for the 
        calendar year concerned,''; and
            (2) in subsection (b), by striking ``shall expire'' 
        and all that follows through the period at the end and 
        inserting ``is not effective for calendar years after 
        calendar year 2011.''.

SEC. 1304. NATIONAL ACADEMY OF SCIENCES STUDY OF PREVENTION OF 
                    PROLIFERATION OF BIOLOGICAL WEAPONS.

    (a) Study Required.--Not later than 60 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
enter into an arrangement with the National Academy of Sciences 
under which the Academy shall carry out a study to identify 
areas for further cooperation with Russia and other states of 
the former Soviet Union under the Cooperative Threat Reduction 
(CTR) program of the Department of Defense in the specific area 
of prevention of proliferation biological weapons.
    (b) Matters To Be Included in Study.--The Secretary shall 
provide for the study under subsection (a) to include the 
following:
            (1) A brief review of any ongoing or previously 
        completed United States Government program (whether 
        conducted through the Cooperative Threat Reduction 
        program or otherwise) in the area of prevention of 
        proliferation of biological weapons.
            (2) An identification of further cooperative work 
        between the United States Government and foreign 
        governments, including technical scientific 
        cooperation, that could effectively be pursued in the 
        area of prevention of proliferation of biological 
        weapons and the objectives that such work would be 
        designed to achieve.
            (3) An identification of any obstacles to designing 
        and implementing a nonproliferation program (whether 
        conducted through the Cooperative Threat Reduction 
        program or otherwise) that could successfully 
        accomplish the objectives identified pursuant to 
        paragraph (2), together with recommendations for 
        overcoming such obstacles, including recommendations in 
        the area of coordination among relevant United States 
        Government departments and agencies.
    (c) Report.--
            (1) Secretary of defense report.--Not later than 
        December 31, 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 on the study carried out under 
        subsection (a).
            (2) Matters To be included.--The report under 
        paragraph (1) shall include the following:
                    (A) The results of the study carried out 
                under subsection (a), including any report 
                received from the National Academy of Sciences 
                on such study.
                    (B) An assessment of the study by the 
                Secretary.
                    (C) an action plan for implementing the 
                recommendations from the study, if any, that 
                the Secretary has decided to pursue.
            (3) Form of submittal.--The report under paragraph 
        (1) shall be submitted in unclassified form, but may 
        include a classified annex.
    (d) Funding.--Of the amounts made available pursuant to the 
authorization of appropriations in section 301(19) for 
Cooperative Threat Reduction programs, not more than $150,000 
shall be available to carry out this section.

  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

Sec. 1401. Enhancement to authority to pay rewards for assistance in 
          combating terrorism.
Sec. 1402. Quarterly reports on Department of Defense response to threat 
          posed by improvised explosive devices.
Sec. 1403. Requirement that all military wheeled vehicles used in Iraq 
          and Afghanistan outside of secure military operating bases be 
          protected by Improvised Explosive Device (IED) jammers.
Sec. 1404. Report on assessment process of Chairman of the Joint Chiefs 
          of Staff relating to Global War on Terrorism.
Sec. 1405. Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel.
Sec. 1406. Database of emergency response capabilities.

SEC. 1401. ENHANCEMENT TO AUTHORITY TO PAY REWARDS FOR ASSISTANCE IN 
                    COMBATING TERRORISM.

    (a) Increase in Delegation Limitation.--Paragraph (2) of 
section 127b(c) of title 10, United States Code, is amended by 
striking ``$2,500'' and inserting ``$10,000''.
    (b) Expansion of Senior Officers to Whom Combatant 
Commander Authority May Be Delegated.--Such paragraph is 
further amended--
            (1) by inserting after ``deputy commander'' the 
        following: ``, or to the commander of a command 
        directly subordinate to that commander,''; and
            (2) by adding at the end the following new 
        sentence: ``Such a delegation may be made to the 
        commander of a command directly subordinate to the 
        commander of a combatant command only with the approval 
        of the Secretary of Defense, the Deputy Secretary of 
        Defense, or an Under Secretary of Defense to whom 
        authority has been delegated under subparagraph 
        (1)(A).''.

SEC. 1402. QUARTERLY REPORTS ON DEPARTMENT OF DEFENSE RESPONSE TO 
                    THREAT POSED BY IMPROVISED EXPLOSIVE DEVICES.

     (a) Reports Required.--
            (1) Initial 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--
                    (A) regarding the status of the threat 
                posed to United States and allied forces in 
                Iraq and Afghanistan by improvised explosive 
                devices; and
                    (B) describing efforts being undertaken by 
                the Department of Defense to defeat that 
                threat.
            (2) Supplemental quarterly reports.--After the 
        submission of the report under paragraph (1), the 
        Secretary shall submit to Congress a supplemental 
        report, not later than 30 days after the end of each 
        calendar-year quarter, to account for every reported 
        incident involving the detonation or discovery of an 
        improvised explosive device during the preceding 
        quarter that involved United States or allied forces in 
        Iraq and Afghanistan.
            (3) Classification of reports.--Reports under this 
        section shall be transmitted in an unclassified manner 
        with a classified annex, if necessary.
    (b) Joint IED Defeat Organization and Related Offices.--
Each report under subsection (a) shall provide the following 
information regarding the joint entity in the Office of the 
Secretary of Defense known as the ``Joint IED Defeat 
Organization'' and those portions of all other organizational 
elements within the Department of Defense that are focused on 
countering improvised explosive devices:
            (1) The number of Department of Defense personnel 
        assigned to the Joint IED Defeat Organization and each 
        other organizational element.
            (2) The major locations to which such personnel are 
        assigned and the organizational structure of those 
        elements.
            (3) The projected budget of the Joint IED Defeat 
        Organization and those other elements relating to the 
        counter-IED mission.
            (4) The level of funding required for 
        administrative costs relating to the counter-IED 
        mission.
    (c) Existing Threat and Countermeasures.--Each report under 
subsection (a) shall include the following information 
regarding the threat posed by improvised explosive devices and 
the countermeasures employed to defeat those threats:
            (1) The number of improvised explosive devices 
        being encountered by United States and allied military 
        personnel, including general trends in tactics and 
        technology used by the enemy.
            (2) Passive countermeasures employed and the 
        success rate of each such countermeasure.
            (3) Active countermeasures employed and the success 
        rate of each such countermeasure.
            (4) Any evidence of assistance to the enemy by 
        foreign countries or other entities not directly 
        involved in fighting United States and allied forces in 
        Iraq and Afghanistan.
            (5) A summary of data collected and reports 
        generated by the Department of Defense on efforts to 
        counter improvised explosive devices in Iraq and 
        Afghanistan and other fronts in the Global War on 
        Terrorism.
    (d) Research, Development, Test, and Evaluation of New 
Countermeasures.--Each report under subsection (a) shall 
include the following information regarding research, 
development, test, and evaluation activities relating to new 
active and passive countermeasures and any impediments to those 
activities:
            (1) The status of any effort within the Department 
        of Defense to conduct research, development, test, and 
        evaluation of passive and active countermeasures and to 
        accelerate the introduction of those countermeasures 
        into deployed units.
            (2) Impediments to introduction of new passive and 
        active countermeasures.
    (e) Interdiction Efforts.--
            (1) Description of interdiction efforts.--Each 
        report under subsection (a) shall identify those 
        portions of any office within the Department of Defense 
        (in addition to those discussed pursuant to subsection 
        (b)) that are focused on interdiction of improvised 
        explosive devices, together with the personnel and 
        funding requirements for that office (as specified in 
        subsection (b)) and the success of the interdiction 
        efforts of that office.
            (2) Interdiction defined.--For purposes of this 
        subsection, the term ``interdiction'' includes--
                    (A) the development of intelligence 
                regarding persons and locations involved in the 
                manufacture or deployment of improvised 
                explosive devices; and
                    (B) subsequent action against those persons 
                or locations, including efforts to prevent 
                emplacement of improvised explosive devices.

SEC. 1403. REQUIREMENT THAT ALL MILITARY WHEELED VEHICLES USED IN IRAQ 
                    AND AFGHANISTAN OUTSIDE OF SECURE MILITARY 
                    OPERATING BASES BE PROTECTED BY IMPROVISED 
                    EXPLOSIVE DEVICE (IED) JAMMERS.

    (a) Requirement.--The Secretary of Defense shall take such 
steps as necessary to ensure that by the end of fiscal year 
2007 all United States military wheeled vehicles used in Iraq 
and Afghanistan outside of secure military operating bases are 
protected by Improvised Explosive Device (IED) jammers.
    (b) Funding.--The Secretary shall carry out subsection (a) 
using funds provided pursuant to authorizations of 
appropriations in title XV.
    (c) Report.--Not later than December 15, 2006, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the cost and timeline to complete 
compliance with the requirement in subsection (a) that by the 
end of fiscal year 2007 each vehicle described in that 
subsection be protected by an Improvised Explosive Device 
jammer.

SEC. 1404. REPORT ON ASSESSMENT PROCESS OF CHAIRMAN OF THE JOINT CHIEFS 
                    OF STAFF RELATING TO GLOBAL WAR ON TERRORISM.

    Not later than March 1, 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 on the findings of the semiannual 
assessment process relating to the Global War on Terrorism that 
is described in the annex to the National Military Strategic 
Plan for the War on Terrorism, issued by the Secretary of 
Defense on February 1, 2006, that is designated as the 
Implementation and Assessment Annex (Annex R).

SEC. 1405. TREATMENT UNDER FREEDOM OF INFORMATION ACT OF CERTAIN 
                    CONFIDENTIAL INFORMATION SHARED WITH STATE AND 
                    LOCAL PERSONNEL.

    (a) In General.--Chapter 3 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 130d. Treatment under Freedom of Information Act of certain 
                    confidential information shared with State and 
                    local personnel

    ``Confidential business information and other sensitive but 
unclassified homeland security information in the possession of 
the Department of Defense that is shared, pursuant to section 
892 of the Homeland Security Act of 2002 (6 U.S.C. 482), with 
State and local personnel (as defined in such section) shall 
not be subject to disclosure under section 552 of title 5 by 
virtue of the sharing of such information with such 
personnel.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``130d. Treatment under Freedom of Information Act of certain 
          confidential information shared with State and local 
          personnel.''.

SEC. 1406. DATABASE OF EMERGENCY RESPONSE CAPABILITIES.

    The Secretary of Defense shall maintain a database of 
emergency response capabilities that includes the following:
            (1) The types of emergency response capabilities 
        that each State's National Guard, as reported by the 
        States, may be able to provide in response to a 
        domestic natural or manmade disaster, both to their 
        home States and under State-to-State mutual assistance 
        agreements.
            (2) The types of emergency response capabilities 
        that the Department of Defense may be able to provide 
        in support of the National Response Plan's Emergency 
        Support Functions, and identification of the units that 
        provide these capabilities.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Defense-wide activities procurement.
Sec. 1506. Research, development, test, and evaluation.
Sec. 1507. Operation and maintenance.
Sec. 1508. Defense Health Program.
Sec. 1509. Classified programs.
Sec. 1510. Military personnel.
Sec. 1511. Treatment as additional authorizations.
Sec. 1512. Transfer authority.
Sec. 1513. Availability of funds.
Sec. 1514. Joint Improvised Explosive Device Defeat Fund.
Sec. 1515. Iraq Freedom Fund.
Sec. 1516. Iraq Security Forces Fund.
Sec. 1517. Afghanistan Security Forces Fund.
Sec. 1518. Submittal to Congress of Department of Defense supplemental 
          and cost of war execution reports.
Sec. 1519. Limitation on availability of funds for certain purposes 
          relating to Iraq.
Sec. 1520. Intelligence Community Management Account.

SEC. 1501. PURPOSE.

    The purpose of this title is to authorize estimated future 
emergency supplemental appropriations for the Department of 
Defense for fiscal year 2007 to provide funds for additional 
costs due to Operation Iraqi Freedom and Operation Enduring 
Freedom.

SEC. 1502. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for procurement accounts of the Army in amounts as 
follows:
            (1) For aircraft procurement, $1,524,300,000
            (2) For ammunition procurement, $48,591,000.
            (3) For weapons and tracked combat vehicles 
        procurement, $3,022,836,000.
            (4) For other procurement, $4,636,810,000.
            (5) For missile procurement, $3,200,000.

SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Navy.--Funds are hereby authorized to be appropriated 
for fiscal year 2007 for procurement accounts for the Navy in 
amounts as follows:
            (1) For aircraft procurement, $389,465,000
            (2) For weapons procurement, $109,400,000.
            (3) For other procurement, $14,600,000.
    (b) Marine Corps.--Funds are hereby authorized to be 
appropriated for fiscal year 2007 for the procurement account 
for the Marine Corps in the amount of $4,397,926,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby 
authorized to be appropriated for fiscal year 2007 for the 
procurement account for ammunition for the Navy and the Marine 
Corps in the amount of $151,439,000.

SEC. 1504. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for procurement accounts for the Air Force in amounts 
as follows:
            (1) For aircraft procurement, $2,174,000,000.
            (2) For other procurement, $5,650,000.

SEC. 1505. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the procurement account for Defense-wide in the 
amount of $127,600,000.

SEC. 1506. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the use of the Department of Defense for 
research, development, test, and evaluation as follows:
            (1) For the Army, $2,639,000.
            (2) For the Navy, $7,856,000.

SEC. 1507. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007 for the use of the Armed Forces for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $28,045,387,000.
            (2) For the Navy, $2,007,948,000.
            (3) For the Marine Corps, $2,257,089,000.
            (4) For the Air Force, $2,478,906,000.
            (5) For Defense-wide activities, $1,544,614,000.
            (6) For the Army National Guard, $221,500,000.
            (7) For the Air National Guard, $2,000,000.
            (8) For the Army Reserve, $500,000.

SEC. 1508. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2007 for expenses, not 
otherwise provided for, the Defense Health Program, in the 
amount of $869,200,000 for operation and maintenance.

SEC. 1509. CLASSIFIED PROGRAMS.

    Funds are hereby authorized to be appropriated to the 
Department of Defense for fiscal year 2007 for classified 
programs, in the amount of $2,500,000,000.

SEC. 1510. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel accounts for 
fiscal year 2007 a total of $8,106,979,000.

SEC. 1511. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

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

SEC. 1512. TRANSFER AUTHORITY.

    (a) Authority to Transfer Authorizations.--
            (1) Authority.--Upon determination by the Secretary 
        of Defense that such action is necessary in the 
        national interest, the Secretary may transfer amounts 
        of authorizations made available to the Department of 
        Defense in this title for fiscal year 2007 between any 
        such authorizations for that fiscal year (or any 
        subdivisions thereof). Amounts of authorizations so 
        transferred shall be merged with and be available for 
        the same purposes as the authorization to which 
        transferred.
            (2) Limitation.--The total amount of authorizations 
        that the Secretary may transfer under the authority of 
        this section may not exceed $2,500,000,000. The 
        transfer authority provided in this section is in 
        addition to any other transfer authority available to 
        the Secretary of Defense.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred;
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress; 
        and
            (3) may not be combined with the authority under 
        section 1001.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--A transfer may be made under the 
authority of this section only after the Secretary of Defense--
            (1) consults with the chairmen and ranking members 
        of the congressional defense committees with respect to 
        the proposed transfer; and
            (2) after such consultation, notifies those 
        committees in writing of the proposed transfer not less 
        than five days before the transfer is made.

SEC. 1513. AVAILABILITY OF FUNDS.

    Funds in this title shall be made available for obligation 
to the Army, Navy, Marine Corps, Air Force, and Defense-wide 
components by the end of the second quarter of fiscal year 
2007.

SEC. 1514. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

    (a) Authorization of Appropriation.--Funds are hereby 
authorized for fiscal year 2007 for the Joint Improvised 
Explosive Device Defeat Fund in the amount of $2,100,000,000.
    (b) Use of Funds.--Funds appropriated pursuant to 
subsection (a) shall be available to the Secretary of Defense 
for the purpose of allowing the Director of the Joint 
Improvised Explosive Device Defeat Organization to investigate, 
develop, and provide equipment, supplies, services, training, 
facilities, personnel, and funds to assist United States forces 
in the defeat of improvised explosive devices.
    (c) Transfer Authority.--
            (1) Transfers authorized.--Amounts authorized to be 
        appropriated by subsection (a) may be transferred from 
        the Joint Improvised Explosive Device Defeat Fund to 
        any of the following accounts and funds of the 
        Department of Defense to accomplish the purposes 
        provided in subsection (b):
                    (A) Military personnel accounts.
                    (B) Operation and maintenance accounts.
                    (C) Procurement accounts.
                    (D) Research, development, test, and 
                evaluation accounts.
                    (E) Defense working capital funds.
            (2) Additional transfer authority.--The transfer 
        authority provided by paragraph (1) is in addition to 
        any other transfer authority available to the 
        Department of Defense.
            (3) Transfers back to the fund.--Upon determination 
        that all or part of the funds transferred from the 
        Joint Improvised Explosive Device Defeat Fund under 
        paragraph (1) are not necessary for the purpose 
        provided, such funds may be transferred back to the 
        Joint Improvised Explosive Device Defeat Fund.
            (4) Prior notice to congressional committees.--
        Funds may not be obligated from the Joint Improvised 
        Explosive Device Defeat Fund, or transferred under the 
        authority provided in paragraph (1), until five days 
        after the date on which the Secretary of Defense 
        notifies the congressional defense committees in 
        writing of the details of the proposed obligation or 
        transfer.
            (5) Effect on authorization amounts.--A transfer of 
        an amount to an account under the authority in 
        paragraph (1) shall be deemed to increase the amount 
        authorized for such account by an amount equal to the 
        amount transferred.
    (d) Management Plan.--
            (1) Plan required.--Not later than 60 days after 
        the date of the enactment of this Act, the Secretary 
        shall submit to the congressional defense committees a 
        plan for the intended management and use of the Joint 
        Improvised Explosive Device Defeat Fund.
            (2) Matter To be included.--The plan required by 
        paragraph (1) shall include an update of the plan 
        required in the paragraph under the heading ``Joint 
        Improvised Explosive Device Defeat Fund'' in chapter 2 
        of title I of the Emergency Supplemental Appropriations 
        Act for Defense, the Global War on Terror, and 
        Hurricane Recovery, 2006 (Public Law 109-234; 120 Stat. 
        424), including identification of--
                    (A) year-to-date transfers and obligations; 
                and
                    (B) projected transfers and obligations 
                through September 30, 2007.
    (e) Quarterly Reports.--Not later than 30 days after the 
end of each fiscal-year quarter, the Secretary shall submit to 
the congressional defense committees a report summarizing the 
detail of any obligation or transfer of funds from the Joint 
Improvised Explosive Device Defeat Fund plan required by 
subsection (d).
    (f) Duration of Authority.--Amounts appropriated to the 
Fund are available for obligation or transfer from the Fund 
until September 30, 2009.

SEC. 1515. IRAQ FREEDOM FUND.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal year 2007 for the Iraq Freedom Fund in 
the amount of $50,000,000.
    (b) Transfer.--
            (1) Transfer authorized.--Subject to paragraph (2), 
        amounts authorized to be appropriated by subsection (a) 
        may be transferred from the Iraq Freedom Fund to any 
        accounts as follows:
                    (A) Operation and maintenance accounts of 
                the Armed Forces.
                    (B) Military personnel accounts.
                    (C) Research, development, test, and 
                evaluation accounts of the Department of 
                Defense.
                    (D) Procurement accounts of the Department 
                of Defense.
                    (E) Accounts providing funding for 
                classified programs.
                    (F) The operating expenses account of the 
                Coast Guard.
            (2) Notice to congress.--A transfer may not be made 
        under the authority in paragraph (1) until five days 
        after the date on which the Secretary of Defense 
        notifies the congressional defense committees in 
        writing of the transfer.
            (3) Treatment of transferred funds.--Amounts 
        transferred to an account under the authority in 
        paragraph (1) shall be merged with amounts in such 
        account and shall be made available for the same 
        purposes, and subject to the same conditions and 
        limitations, as amounts in such account.
            (4) Effect on authorization amounts.--A transfer of 
        an amount to an account under the authority in 
        paragraph (1) shall be deemed to increase the amount 
        authorized for such account by an amount equal to the 
        amount transferred.

SEC. 1516. IRAQ SECURITY FORCES FUND.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal year 2007 for the Iraq 
Security Forces Fund in the amount of $1,734,000,000.
    (b) Use of Funds.--
            (1) In general.--Funds appropriated pursuant to 
        subsection (a) shall be available to the Secretary of 
        Defense for the purpose of allowing the Commander, 
        Multi-National Security Transition Command--Iraq, to 
        provide assistance to the security forces of Iraq.
            (2) Types of assistance authorized.--Assistance 
        provided under this section may include the provision 
        of equipment, supplies, services, training, facility 
        and infrastructure repair, renovation, and 
        construction, and funding.
            (3) Secretary of state concurrence.--Assistance may 
        be provided under this section only with the 
        concurrence of the Secretary of State.
    (c) Authority in Addition to Other Authorities.--The 
authority to provide assistance under this section is in 
addition to any other authority to provide assistance to 
foreign nations.
    (d) Transfer Authority.--
            (1) Transfers authorized.--Subject to paragraph 
        (2), amounts authorized to be appropriated by 
        subsection (a) may be transferred from the Iraq 
        Security Forces Fund to any of the following accounts 
        and funds of the Department of Defense to accomplish 
        the purposes provided in subsection (b):
                    (A) Military personnel accounts.
                    (B) Operation and maintenance accounts.
                    (C) Procurement accounts.
                    (D) Research, development, test, and 
                evaluation accounts.
                    (E) Defense working capital funds.
                    (F) Overseas Humanitarian, Disaster, and 
                Civic Aid account.
            (2) Additional authority.--The transfer authority 
        provided by paragraph (1) is in addition to any other 
        transfer authority available to the Department of 
        Defense.
            (3) Transfers back to the fund.--Upon determination 
        that all or part of the funds transferred from the Iraq 
        Security Forces Fund under paragraph (1) are not 
        necessary for the purpose provided, such funds may be 
        transferred back to the Iraq Security Forces Fund.
            (4) Prior notice to congressional committees.--
        Funds may not be obligated from the Iraq Security 
        Forces Fund, or transferred under the authority 
        provided in paragraph (1), until five days after the 
        date on which the Secretary of Defense notifies the 
        congressional defense committees in writing of the 
        details of the proposed obligation or transfer.
            (5) Effect on authorization amounts.--A transfer of 
        an amount to an account under the authority in 
        paragraph (1) shall be deemed to increase the amount 
        authorized for such account by an amount equal to the 
        amount transferred.
    (e) Contributions.--
            (1) Authority to accept contributions.--
        Contributions of funds for the purposes provided in 
        subsection (b) from any person, foreign government, or 
        international organization may be credited to the Iraq 
        Security Forces Fund and used for the purposes provided 
        in subsection (b).
            (2) Limitation.--The Secretary may not accept a 
        contribution under this subsection if the acceptance of 
        the contribution would compromise or appear to 
        compromise the integrity of any program of the 
        Department of Defense.
            (3) Notification.--The Secretary shall notify the 
        congressional defense committees in writing upon the 
        receipt and upon the transfer of any contribution. Such 
        notice shall delineate the sources and amounts of the 
        funds received and the specific use of such 
        contributions.
    (f) Quarterly Reports.--Not later than 30 days after the 
end of each fiscal-year quarter, the Secretary shall submit to 
the congressional defense committees a report summarizing the 
details of any obligation or transfer of funds from the Iraq 
Security Forces Fund during the preceding quarter.
    (g) Duration of Authority.--Amounts appropriated or 
contributed to the Fund are available for obligation or 
transfer from the Iraq Security Forces Fund until September 30, 
2008.

SEC. 1517. AFGHANISTAN SECURITY FORCES FUND.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal year 2007 for the 
Afghanistan Security Forces Fund in the amount of 
$1,446,300,000.
    (b) Use of Funds.--
            (1) In general.--Funds appropriated pursuant to 
        subsection (a) shall be available to the Secretary of 
        Defense for the purpose of allowing the Commander, 
        Office of Security Cooperation--Afghanistan, to provide 
        assistance to the security forces of Afghanistan.
            (2) Types of assistance authorized.--Assistance 
        provided under this section may include the provision 
        of equipment, supplies, services, training, facility 
        and infrastructure repair, renovation, and 
        construction, and funding.
            (3) Secretary of state concurrence.--Assistance may 
        be provided under this section only with the 
        concurrence of the Secretary of State.
    (c) Authority in Addition to Other Authorities.--The 
authority to provide assistance under this section is in 
addition to any other authority to provide assistance to 
foreign nations.
    (d) Transfer Authority.--
            (1) Transfers authorized.--Subject to paragraph 
        (2), amounts authorized to be appropriated by 
        subsection (a) may be transferred from the Afghanistan 
        Security Forces Fund to any of the following accounts 
        and funds of the Department of Defense to accomplish 
        the purposes provided in subsection (b):
                    (A) Military personnel accounts.
                    (B) Operation and maintenance accounts.
                    (C) Procurement accounts.
                    (D) Research, development, test, and 
                evaluation accounts.
                    (E) Defense working capital funds.
                    (F) Overseas Humanitarian, Disaster, and 
                Civic Aid account.
            (2) Additional authority.--The transfer authority 
        provided by paragraph (1) is in addition to any other 
        transfer authority available to the Department of 
        Defense.
            (3) Transfers back to the fund.--Upon determination 
        that all or part of the funds transferred from the 
        Afghanistan Security Forces Fund under paragraph (1) 
        are not necessary for the purpose provided, such funds 
        may be transferred back to the Afghanistan Security 
        Forces Fund.
            (4) Prior notice to congressional committees.--
        Funds may not be obligated from the Afghanistan 
        Security Forces Fund, or transferred under the 
        authority provided in paragraph (1), until five days 
        after the date on which the Secretary of Defense 
        notifies the congressional defense committees in 
        writing of the details of the proposed obligation or 
        transfer.
            (5) Effect on authorization amounts.--A transfer of 
        an amount to an account under the authority in 
        paragraph (1) shall be deemed to increase the amount 
        authorized for such account by an amount equal to the 
        amount transferred.
    (e) Contributions.--
            (1) Authority to accept contributions.--
        Contributions of funds for the purposes provided in 
        subsection (b) from any person, foreign government, or 
        international organization may be credited to the 
        Afghanistan Security Forces Fund and used for the 
        purposes provided in subsection (b).
            (2) Limitation.--The Secretary may not accept a 
        contribution under this subsection if the acceptance of 
        the contribution would compromise or appear to 
        compromise the integrity of any program of the 
        Department of Defense.
            (3) Notification.--The Secretary shall notify the 
        congressional defense committees in writing upon the 
        receipt and upon the transfer of any contribution. Such 
        notice shall delineate the sources and amounts of the 
        funds received and the specific use of such 
        contributions.
    (f) Quarterly Reports.--Not later than 30 days after the 
end of each fiscal-year quarter, the Secretary shall submit to 
the congressional defense committees a report summarizing the 
details of any obligation or transfer of funds from the 
Afghanistan Security Forces Fund during the preceding quarter.
    (g) Duration of Authority.--Amounts appropriated or 
contributed to the Fund are available for obligation or 
transfer from the Afghanistan Security Forces Fund until 
September 30, 2008.

SEC. 1518. SUBMITTAL TO CONGRESS OF DEPARTMENT OF DEFENSE SUPPLEMENTAL 
                    AND COST OF WAR EXECUTION REPORTS.

    Section 1221(c) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3462; 10 
U.S.C. 113 note) is amended--
            (1) in the subsection caption by inserting 
        ``Congress and'' after ``Submission to''; and
            (2) by inserting ``the congressional defense 
        committees and'' before ``the Comptroller General''.

SEC. 1519. LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN PURPOSES 
                    RELATING TO IRAQ.

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

SEC. 1520. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

    There is hereby authorized to be appropriated for the 
Intelligence Community Management Account for fiscal year 2007 
a total of $19,265,000.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2007''.

SEC. 2002. RECOGNITION OF REPRESENTATIVE JOEL HEFLEY UPON HIS 
                    RETIREMENT FROM THE HOUSE OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Joel Hefley was elected to 
        represent Colorado's 5th Congressional district in 1986 
        and has served in the House of Representatives since 
        that time with distinction, class, integrity, and 
        honor.
            (2) Representative Hefley has served on the 
        Committee on Armed Services of the House of 
        Representatives for 18 years, including service as 
        Chairman of the Subcommittee on Military Installations 
        and Facilities from 1995 through 2000 and, since 2001, 
        as Chairman of the Subcommittee on Readiness.
            (3) Representative Hefley's colleagues know him to 
        be a fair and effective lawmaker who works for the 
        national interest while never forgetting his Western 
        roots.
            (4) Representative Hefley's efforts on the 
        Committee on Armed Services have been instrumental to 
        the military value of, and quality of life at, 
        installations in the State of Colorado, including Fort 
        Carson, Cheyenne Mountain, Peterson Air Force Base, 
        Schriever Air Force Base, Buckley Air Force Base, and 
        the United States Air Force Academy.
            (5) Representative Hefley was a leader in efforts 
        to retain and expand Fort Carson as an essential part 
        of the national defense system during the Defense Base 
        Closure and Realignment process.
            (6) Representative Hefley has consistently 
        advocated for providing members of the Armed Forces and 
        their families with quality, safe, and affordable 
        housing and supportive communities.
            (7) As a primary architect of the Military Housing 
        Privatization Initiative, Representative Hefley helped 
        lead congressional efforts to establish this initiative 
        to eliminate inadequate housing on military 
        installations, and the first pilot program was located 
        at Fort Carson.
            (8) Representative Hefley's leadership on the 
        Military Housing Privatization Initiative has allowed 
        for the privatization of more than 121,000 units of 
        military family housing, which brought meaningful 
        improvements to living conditions for thousands of 
        members of the Armed Forces and their spouses and 
        children at installations throughout the United States.
    (b) Recognition.--Congress recognizes and commends 
Representative Joel Hefley for his 20 years of service to 
benefit the people of Colorado, members of the Armed Forces and 
their families, veterans, and the United States.

                            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. 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 or locations inside the United States, and in the 
amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Alabama...................................  Redstone Arsenal..................................       $24,300,000
Alaska....................................  Fort Richardson...................................       $72,300,000
                                            Fort Wainwright...................................        $8,800,000
California................................  Fort Irwin........................................       $18,200,000
Colorado..................................  Fort Carson.......................................       $30,800,000
Georgia...................................  Fort Gillem.......................................       $15,000,000
                                            Fort Stewart/Hunter Army Air Field................       $95,300,000
Hawaii....................................  Schofield Barracks................................       $54,500,000
Kansas....................................  Fort Leavenworth..................................       $23,200,000
                                            Fort Riley........................................       $47,400,000
Kentucky..................................  Blue Grass Army Depot.............................        $3,500,000
                                            Fort Campbell.....................................      $135,300,000
Louisiana.................................  Fort Polk.........................................       $15,900,000
Maryland..................................  Aberdeen Proving Ground...........................        $8,800,000
                                            Fort Detrick......................................       $12,400,000
Michigan..................................  Detroit Arsenal...................................       $18,500,000
Missouri..................................  Fort Leonard Wood.................................       $34,500,000
New Jersey................................  Picatinny Arsenal.................................        $9,900,000
New York..................................  Fort Drum.........................................      $218,600,000
North Carolina............................  Fort Bragg........................................       $96,900,000
                                            Sunny Point Military Ocean Terminal...............       $46,000,000
Oklahoma..................................  McAlester Army Ammunition Plant...................        $3,050,000
Pennsylvania..............................  Letterkenny Depot.................................        $7,500,000
Texas.....................................  Corpus Christi Army Depot.........................       $12,200,000
                                            Fort Bliss........................................        $8,200,000
                                            Fort Hood.........................................       $93,000,000
                                            Red River Depot...................................        $6,000,000
Utah......................................  Dugway Proving Ground.............................       $14,400,000
Virginia..................................  Fort Belvoir......................................       $27,000,000
                                            Fort Lee..........................................        $4,150,000
Washington................................  Fort Lewis........................................      $502,600,000
----------------------------------------------------------------------------------------------------------------

    (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 or locations outside the United States, and in 
the amounts, set forth in the following table:

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Grafenwoehr..............    $157,632,000
                               Vilseck..................     $19,000,000
Italy........................  Vicenza..................    $223,000,000
Japan........................  Camp Hansen..............      $7,150,000
Korea........................  Camp Humphreys...........     $61,600,000
                               Yongpyong................      $7,400,000
Romania......................  Babadag Range............     $34,800,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may construct 
or acquire family housing units (including land acquisition and 
supporting facilities) at the installations or locations, in 
the number of units, and in the amounts set forth in the 
following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                       Installation or Location             Units              Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Richardson................  162..................     $70,000,000
                                          Fort Wainwright................  234..................    $132,000,000
Arizona.................................  Fort Huachuca..................  119..................     $32,000,000
Arkansas................................  Pine Bluff Arsensal............  10...................      $2,900,000
Wisconsin...............................  Fort McCoy.....................  13...................      $4,900,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(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 $16,332,000.

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)(5)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $320,659,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 2006, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Army in the total amount of $3,518,450,000 as 
follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $1,362,200,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $510,582,000.
            (3) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $23,930,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $219,830,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $578,791,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $675,617,000.
            (6) For the construction of increment 2 of a 
        barracks complex at Fort Drum, New York, authorized by 
        section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of 
        Public Law 109-163; 119 Stat. 3485), $16,500,000.
            (7) For the construction of increment 2 of a 
        barracks complex for the 2nd Brigade at Fort Bragg, 
        North Carolina, authorized by section 2101(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 
        3485), $31,000,000.
            (8) For the construction of increment 2 of a 
        barracks complex for the 3nd Brigade at Fort Bragg, 
        North Carolina, authorized by section 2101(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 
        3485), $50,000,000.
            (9) For the construction of increment 2 of a 
        barracks complex for divisional artillery at Fort 
        Bragg, North Carolina, authorized by section 2101(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3485), $37,000,000.
            (10) For the construction of increment 2 of a 
        defense access road at Fort Belvoir, Virginia, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3486), 
        $13,000,000.
    (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 the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a).
            (2) $306,000,000 (the balance of the amount 
        authorized under section 2101(a) for construction of a 
        brigade complex for Fort Lewis, Washington).

                            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 
          2004, 2005, and 2006 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 or 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....................        $5,966,000
California................................  Marine Corps Air Station, Camp Pendleton..........        $6,412,000
                                            Marine Corps Air Station, Miramar.................        $2,968,000
                                            Marine Corps Base, Camp Pendleton.................      $106,142,000
                                            Marine Corps Base, Twentynine Palms...............       $27,217,000
                                            Naval Air Station, North Island...................       $21,535,000
                                            Naval Support Activity, Monterey..................        $7,380,000
Connecticut...............................  Naval Submarine Base, New London..................        $9,580,000
Florida...................................  Cape Canaveral....................................        $9,900,000
                                            Naval Air Station, Pensacola......................       $13,486,000
Georgia...................................  Marine Corps Logistics Base, Albany...............       $70,540,000
                                            Navy/Naval Submarine Base, Kings Bay..............       $20,282,000
Hawaii....................................  Naval Base, Pearl Harbor..........................       $48,338,000
                                            Naval Magazine, Pearl Harbor......................        $6,010,000
                                            Naval Shipyard, Pearl Harbor......................       $22,000,000
Indiana...................................  Naval Support Activity, Crane.....................        $6,730,000
Maine.....................................  Portsmouth Naval Shipyard.........................        $9,650,000
Maryland..................................  Naval Air Station, Patuxent River.................       $16,316,000
                                            NMIC/Naval Support Activity, Suitland.............       $67,939,000
Mississippi...............................  Naval Air Station, Meridian.......................        $5,870,000
Nevada....................................  Naval Air Station, Fallon.........................        $7,730,000
North Carolina............................  Marine Corps Air Station, Cherry Point............        $2,790,000
                                            Marine Corps Air Station, New River...............       $21,500,000
                                            Marine Corps Base, Camp Lejeune...................      $160,904,000
Rhode Island..............................  Naval Station, Newport............................        $3,308,000
South Carolina............................  Marine Corps Air Station, Beaufort................       $25,575,000
Virginia..................................  Marine Corps Base, Quantico.......................       $30,628,000
                                            Naval Shipyard, Norfolk...........................       $34,952,000
                                            Naval Special Weapons Center, Dahlgren............        $9,850,000
                                            Naval Station, Norfolk............................       $12,062,000
                                            Naval Support Activity, Norfolk...................       $41,712,000
Washington................................  Naval Air Station, Whidbey Island.................       $67,303,000
                                            Naval Base, Kitsap................................       $17,617,000
----------------------------------------------------------------------------------------------------------------

    (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 
installations or locations outside the United States, and in 
the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Diego Garcia.................  Diego Garcia.............     $37,473,000
Italy........................  Naval Air Station,            $13,051,000
                                Sigonella.
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(3), the Secretary of the Navy may acquire real property 
and carry out military construction projects for unspecified 
installations or locations in the amount set forth in the 
following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location                     Project               Amount
------------------------------------------------------------------------
                               Helicopter Support            $12,185,000
                                Facility.
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2204(a)(6)(A), the Secretary of the Navy may construct 
or acquire family housing units (including land acquisition and 
supporting facilities) at the installations, in the number of 
units, and in the amounts set forth in the following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                Location                           Installation                    Units              Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Marine Corps Log. Base, Barstow  74...................     $27,851,000
Guam....................................   Naval Station/Base, Guam......  176..................     $98,174,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(6)(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 
$2,785,000.

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)(6)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $180,146,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 2006, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Navy in the total amount of $2,109,367,000, 
as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $832,982,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $50,524,000.
            (3) For military construction projects at 
        unspecified worldwide locations authorized by section 
        2201(c), $12,185,000.
            (4) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $8,939,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $70,861,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $308,956,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $509,126,000.
            (7) For the construction of increment 2 of a 
        reclamation and conveyance project for Marine Corps 
        Base, Camp Pendleton, California, authorized by section 
        2201(a) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 
        119 Stat. 3490), as amended by section 2205(c) of this 
        Act, $33,290,000.
            (8) For the construction of increment 2 of a 
        helicopter hangar replacement at Naval Air Station, 
        Jacksonville, Florida, authorized by section 2201(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3489), $43,250,000.
            (9) For the construction of increment 2 of recruit 
        training barracks infrastructure upgrades at Recruit 
        Training Command, Great Lakes, Illinois, authorized by 
        section 2201(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of 
        Public Law 109-163; 119 Stat. 3490), $23,589,000.
            (10) For the construction of increment 2 of a field 
        house at the United States Naval Academy, Annapolis, 
        Maryland, authorized by section 2201(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), 
        $26,685,000.
            (11) For the construction of increment 2 of the 
        replacement of Ship Repair Pier 3 at Naval Support 
        Activity, Norfolk Naval Shipyard, Virginia, authorized 
        by section 2201(a) of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of 
        Public Law 109-163; 119 Stat. 3490), $30,939,000.
            (12) For the construction of increment 2 of an 
        addition to Hockmuth Hall, Marine Corps Base, Quantico, 
        Virginia, authorized by section 2201(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), 
        $10,159,000.
            (13) For the construction of increment 2 of wharf 
        upgrades at Naval Station Guam, Marianas Islands, 
        authorized by section 2201(b) of the Military 
        Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), 
        $29,772,000.
            (14) For the construction of increment 2 of wharf 
        upgrades at Yokosuka, Japan, authorized by section 
        2201(b) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 
        119 Stat. 3490), $44,360,000.
            (15) For the construction of increment 2 of 
        bachelor quarters at Naval Station, Everett, 
        Washington, authorized by section 2201(a) of the 
        Military Construction Authorization Act of Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 
        3490), $20,917,000.
            (16) For the construction of increment 3 of the 
        limited area production and storage complex at 
        Strategic Weapons Facility Pacific, Bangor, Washington, 
        authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2005 
        (division B of Public Law 108-375; 118 Stat. 2105), as 
        amended by section 2206 of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of 
        Public Law 109-163; 119 Stat. 3493, $14,274,000.
            (17) For the construction of the next increment of 
        the outlaying landing field facilities at Washington 
        County, North Carolina, authorized by section 2201(a) 
        of the Military Construction Authorization Act for 
        Fiscal Year 2004 (division B of Public Law 108-136; 117 
        Stat. 1704), as amended by section 2205(a) of this Act, 
        $7,926,000.
            (18) For the construction of increment 4 of pier 11 
        replacement at Naval Station, Norfolk, Virginia, 
        authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 
        (division B of Public Law 108-136; 117 Stat. 1704), 
        $30,633,000.
    (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 the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1), (2), and (3) of subsection (a).
            (2) $56,159,000 (the balance of the amount 
        authorized under section 2201(a) for construction of an 
        addition to the National Maritime Intelligence Center, 
        Suitland, Maryland).
            (3) $31,153,000 (the balance of the amount 
        authorized under section 2201(a) to recapitalize Hangar 
        5 at Naval Air Station, Whidbey Island, Washington).

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2004, 2005, AND 2006 PROJECTS.

    (a) Fiscal Year 2004 Inside the United States Project.--
            (1) Modification.--The table in section 2201(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 2004 (division B of Public Law 108-136; 117 Stat. 
        1704), as amended by section 2205 of the Military 
        Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3492), is 
        amended--
                    (A) at the end of the items relating to 
                North Carolina, by inserting a new item 
                entitled ``Navy Outlying Landing Field, 
                Washington County'' in the amount of 
                ``$193,260,000'';
                    (B) by striking the item relating to 
                Various Locations, CONUS; and
                    (C) by striking the amount identified as 
                the total in the amount column and inserting 
                ``$1,489,424,000''.
            (2) Conforming amendments.--Section 2204(b)(6) of 
        that Act (117 Stat. 1706) is amended--
                    (A) by striking ``$28,750,000'' and 
                inserting ``$165,650,000''; and
                    (B) by striking ``outlying landing field 
                facilities, various locations in the 
                continental United States'' and inserting ``an 
                outlying landing field in Washington County, 
                North Carolina''.
    (b) Fiscal Year 2005 Inside the United States Project.--
            (1) Modification.--The table in section 2201(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 2005 (division B of Public Law 108-375; 118 Stat. 
        2105), as amended by section 2206 of the Military 
        Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3493), is 
        amended--
                    (A) by striking the item relating to Navy 
                Outlying Landing Field, Washington County, 
                North Carolina; and
                    (B) by striking the amount identified as 
                the total in the amount column and inserting 
                ``$825,479,000''.
            (2) Conforming amendments.--Section 2204 of that 
        Act (118 Stat. 2107), as amended by section 2206 of the 
        Military Construction Authorization Act for Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 
        3493), is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking 
                        ``$752,927,000'' and inserting 
                        ``722,927,000''; and
                            (ii) by adding at the end the 
                        following new paragraph:
            ``(10) For the construction of increment 2 of the 
        Navy outlying landing field in Washington County, North 
        Carolina, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 
        (division B of Public Law 108-136; 117 Stat. 1704), as 
        amended by section 2205(a) of the Military Construction 
        Authorization Act for Fiscal Year 2007, $30,000,000.''; 
        and
                    (B) in subsection (b), by striking 
                paragraph (3).
    (c) Fiscal Year 2006 Inside the United States Project.--
            (1) Modification.--The table in section 2201(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3489) is amended in the item related to Marine Corps 
        Base, Camp Pendleton, California, by striking 
        ``$90,437,000'' in the amount column and inserting 
        ``$86,006,000''.
            (2) Conforming amendments.--Section 2204(b)(2) of 
        that Act (119 Stat. 3492) is amended by striking 
        ``$37,721,000'' and inserting ``$33,290,000''.

                         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. Modification of authority to carry out certain fiscal year 
          2006 project.

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 or locations inside the United States, and in the 
amounts, set forth in the following table:

                                       Air Force: Inside the United States
----------------------------------------------------------------------------------------------------------------
                    State                                 Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Alaska......................................  Eielson Air Force Base..........................       $38,300,000
                                              Elmendorf Air Force Base........................       $68,100,000
Arizona.....................................  Davis-Monthan Air Force Base....................       $11,800,000
Arkansas....................................  Little Rock Air Force Base......................        $9,800,000
California..................................  Beale Air Force Base............................       $28,000,000
                                              Travis Air Force Base...........................       $85,800,000
Colorado....................................  Buckley Air Force Base..........................       $10,700,000
                                              Peterson Air Force Base.........................        $4,900,000
                                              Schriever Air Force Base........................       $21,000,000
Delaware....................................  Dover Air Force Base............................       $30,400,000
Florida.....................................  Eglin Air Force Base............................       $30,350,000
                                              Hurlburt Field..................................       $32,950,000
                                              MacDill Air Force Base..........................       $71,000,000
                                              Tyndall Air Force Base..........................        $8,200,000
Georgia.....................................  Robins Air Force Base...........................       $59,600,000
Hawaii......................................  Hickam Air Force Base...........................       $28,538,000
Illinois....................................  Scott Air Force Base............................       $28,200,000
Kansas......................................  McConnell Air Force Base........................        $3,875,000
Kentucky....................................  Fort Knox.......................................        $3,500,000
Maryland....................................  Andrews Air Force Base..........................       $29,000,000
Massachusetts...............................  Hanscom Air Force Base..........................       $12,400,000
Missouri....................................  Whiteman Air Force Base.........................        $3,800,000
Montana.....................................  Malmstrom Air Force Base........................        $5,700,000
Nevada......................................  Indian Springs Auxiliary Field..................       $49,923,000
New Jersey..................................  McGuire Air Force Base..........................       $28,500,000
New Mexico..................................  Kirtland Air Force Base.........................       $11,400,000
North Dakota................................  Minot Air Force Base............................        $9,000,000
Oklahoma....................................  Altus Air Force Base............................        $9,500,000
                                               Tinker Air Force Base..........................        $5,700,000
South Carolina..............................  Charleston Air Force Base.......................       $10,200,000
                                              Shaw Air Force Base.............................       $31,500,000
South Dakota................................   Ellsworth Air Force Base.......................        $3,000,000
Texas.......................................  Fort Bliss......................................        $8,500,000
                                              Lackland Air Force Base.........................       $13,200,000
                                              Laughlin Air Force Base.........................       $12,600,000
                                              Sheppard Air Force Base.........................        $7,000,000
Utah........................................  Hill Air Force Base.............................       $63,400,000
Virginia....................................  Langley Air Force Base..........................       $57,700,000
Washington..................................  Fairchild Air Force Base........................        $4,250,000
Wyoming.....................................  Francis E. Warren Air Force Base................       $11,000,000
----------------------------------------------------------------------------------------------------------------

    (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 or locations outside the United States, and in 
the amounts, set forth in the following table:

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $53,150,000
Guam.........................  Andersen Air Base........     $65,300,000
Korea........................  Kunsan Air Base..........     $37,360,000
                               Osan Air Base............      $2,156,000
------------------------------------------------------------------------

    (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 
unspecified installations or locations in the amount set forth 
in the following table:

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Classified.........  Classified Project 1.....      $3,377,000
                               Classified Project 2.....      $4,600,000
                               Classified Project 3.....      $1,700,000
------------------------------------------------------------------------

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 or 
locations, in the number of units, and in the amounts set forth 
in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                   Installation or Location             Units             Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base...........  129................     $87,414,000
Idaho...................................  Mountain Home Air Force Base.....  457................    $107,800,000
Missouri................................  Whiteman Air Force Base..........  116................     $39,270,000
Montana.................................  Malmstrom Air Force Base.........  493................    $140,252,000
North Carolina..........................  Seymour Johnson Air Force Base...  56.................     $22,956,000
North Dakota............................  Minot Air Force Base.............  575................    $170,188,000
Texas...................................  Dyess Air Force Base.............  199................     $49,215,000
Germany.................................  Ramstein Air Base................  101................     $59,488,000
                                          Spangdahlem Air Base.............  60.................     $39,294,000
United Kingdom..........................  Royal Air Force Lakenheath.......  74.................     $35,282,000
----------------------------------------------------------------------------------------------------------------

    (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 
$13,202,000.

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 $403,777,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) Authorization of Appropriations.--Funds are hereby 
authorized to be appropriated for fiscal years beginning after 
September 30, 2006, for military construction, land 
acquisition, and military family housing functions of the 
Department of the Air Force in the total amount of 
$3,231,442,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $962,286,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $157,966,000.
            (3) For military construction projects at 
        unspecified worldwide locations authorized by section 
        2301(c), $9,677,000.
            (4) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $15,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $79,004,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $1,168,138,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $755,071,000.
            (7) For the construction of increment 2 of the C-17 
        maintenance complex at Elmendorf Air Force Base, 
        Alaska, authorized by section 2301(a) of the Military 
        Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3494), 
        $30,000,000.
            (8) For the construction of increment 2 of the main 
        base runway at Edwards Air Force Base, California, 
        authorized by section 2301(a) of the Military 
        Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3494), 
        $31,000,000.
            (9) For the construction of increment 2 of the 
        CENTCOM Joint Intelligence Center at MacDill Air Force 
        Base, Florida, authorized by section 2301(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 
        3494), as amended by section 2305 of this Act, 
        $23,300,000.
    (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 2301 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1), (2), and 
(3) of subsection (a).

SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2006 PROJECT.

    (a) Modification of Inside the United States Project.--The 
table in section 2301(a) of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163; 119 Stat. 3494) is amended in the item relating to 
MacDill Air Force Base, Florida, by striking ``$107,200,000'' 
in the amount column and inserting ``$101,500,000''.
    (b) Conforming Amendment.--Section 2304(b)(4) of that Act 
(119 Stat. 3496) is amended by striking ``$29,000,000'' and 
inserting ``$23,300,000''.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Family housing.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorized base closure and realignment activities funded 
          through Department of Defense Base Closure Account 2005.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out certain fiscal year 
          2006 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 
2405(a)(1), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations or locations inside the United States, and in the 
amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Kentucky.....................................  Fort Knox........................................     $18,108,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Arizona......................................  Marine Corps Air Station, Yuma...................      $8,715,000
California...................................  Beale Air Force Base.............................      $9,000,000
Pennsylvania.................................  Defense Distribution Depot, New Cumberland.......      $8,900,000
Viginia......................................  Fort Belvoir.....................................      $5,500,000
Washington...................................  Naval Air Station, Whidbey Island................     $26,000,000
----------------------------------------------------------------------------------------------------------------


                                           Special Operations Command
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Marine Corps Base, Camp Pendleton................     $24,400,000
Colorado.....................................  Fort Carson......................................     $26,100,000
Florida......................................  Hurlburt Field...................................     $14,482,000
                                               MacDill Air Force Base...........................     $27,300,000
Kentucky.....................................  Fort Campbell....................................     $24,500,000
Mississippi..................................  Stennis Space Center.............................     $10,200,000
North Carolina...............................  Fort Bragg.......................................     $51,768,000
                                               Marine Corps Base, Camp Lejeune..................     $51,600,000
                                               Pope Air Force Base..............................     $15,276,000
Virginia.....................................  Naval Air Base, Little Creek.....................     $22,000,000
----------------------------------------------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Alaska.......................................  Fort Richardson..................................     $37,200,000
California...................................  Fort Irwin.......................................      $6,050,000
Florida......................................  MacDill Air Force Base...........................     $92,000,000
                                               Naval Hospital, Jacksonville.....................     $16,000,000
Hawaii.......................................  Naval Base, Pearl Harbor.........................      $7,700,000
Illinois.....................................  Naval Hospital, Great Lakes......................     $20,000,000
Maryland.....................................  Fort Detrick.....................................    $550,000,000
New York.....................................  Fort Drum........................................      $9,700,000
Texas........................................  Fort Hood........................................     $18,000,000
----------------------------------------------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations or locations outside the United States, and in 
the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Italy.........................................  Vicenza.........................................     $47,210,000
Korea.........................................  Osan Air Base...................................      $4,589,000
Spain.........................................  Naval Station, Rota.............................     $23,048,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
           Country or Possession                           Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Japan......................................  Okinawa............................................      $5,000,000
Wake Island................................  Wake Island........................................      $2,600,000
----------------------------------------------------------------------------------------------------------------


                                             Missile Defense Agency
----------------------------------------------------------------------------------------------------------------
           Country or Possession                           Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Kwajalein..................................  Kwajalein Atoll....................................      $7,592,000
----------------------------------------------------------------------------------------------------------------


                       Special Operations Command
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Qatar........................  Al Udeid AB..............     $44,500,000
------------------------------------------------------------------------


                       TRICARE Management Activity
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Italy........................  Vicenza..................     $52,000,000
------------------------------------------------------------------------

SEC. 2402. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts 
appropriated pursuant to the authorization of appropriations in 
section 2405(a)(9)(A), the Secretary of Defense may construct 
or acquire family housing units (including land acquisition and 
supporting facilities) at the location, in the number of units, 
and in the amount set forth in the following table:

                                    Defense Logistics Agency: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                               Location                     Units              Amount
----------------------------------------------------------------------------------------------------------------
Virginia................................  Defense Supply Center, Richmond  25...................      $7,840,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(9)(A), the Secretary of Defense 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 
$200,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(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 $55,000,000.

SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED 
                    THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
                    2005.

    (a) Authorized Activities.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2405(a)(8), the Secretary of Defense may carry out base closure 
and realignment activities, including real property acquisition 
and military construction projects, 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) and 
funded through the Department of Defense Base Closure Account 
2005 established by section 2906A of such Act, in the amount of 
$5,902,723,000.
    (b) Conforming Amendments to Fiscal Year 2006 
Authorizations.--
            (1) Authorized activities.--Title XXIV of the 
        Military Construction Authorization Act for Fiscal Year 
        2006 (division B of Public Law 109-163; 119 Stat. 3496) 
        is amended by adding at the end the following new 
        section:

``SEC. 2404. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED 
                    THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 
                    2005.

    ``Using amounts appropriated pursuant to the authorization 
of appropriations in section 2403(a)(7), the Secretary of 
Defense may carry out base closure and realignment activities, 
including real property acquisition and military construction 
projects, 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) and funded through the Department 
of Defense Base Closure Account 2005 established by section 
2906A of such Act, in the amount of $2,035,466,000.''.
            (2) Authorization of appropriations and 
        limitations.--Section 2403 of that Act (119 Stat. 3499) 
        is amended--
                    (A) in subsection (a)(7)--
                            (i) by striking ``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)'' and inserting 
                        ``authorized by section 2404 of this 
                        Act''; and
                            (ii) by striking ``section 2906 of 
                        such Act'' and inserting ``section 
                        2906A 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)'';
                    (B) by redesignating subsection (c) as 
                subsection (d); and
                    (C) by inserting after subsection (b) the 
                following new subsection (c):
    ``(c) Limitation on Total Cost of Base Closure and 
Realignment Activities.--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 base closure and realignment activities, including real 
property acquisition and military construction projects, 
carried out under section 2404 of this Act may not exceed the 
sum of the following:
            ``(1) The total amount authorized to be 
        appropriated under subsection (a)(7).
            ``(2) $531,000,000 (the balance of the amount 
        authorized under section 2404 for base closure and 
        realignment activities).''.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2006, 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 
$7,163,431,000, as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $533,099,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(b), 
        $170,789,000.
            (3) For unspecified minor military construction 
        projects under section 2805 of title 10, United States 
        Code, $21,672,000.
            (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, $172,950,000.
            (6) For energy conservation projects authorized by 
        section 2403 of this Act, $55,000,000.
            (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) and funded through the 
        Department of Defense Base Closure Account 1990 
        established by section 2906 of such Act, $191,220,000.
            (8) For base closure and realignment activities 
        authorized by section 2404 of this Act and funded 
        through the Department of Defense Base Closure Account 
        2005 established by section 2906A 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), 
        $5,236,223,000.
            (9) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $8,808,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 
                of title 10, United States Code), $48,506,000.
                    (C) For credit to the Department of Defense 
                Family Housing Improvement Fund established by 
                section 2883(a)(1) of title 10, United States 
                Code, $2,500,000.
            (10) For the construction of increment 2 of the 
        regional security operations center at Augusta, 
        Georgia, authorized by section 2401(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3497), as 
        amended by section 7016 of Public Law 109-234 (120 
        Stat. 485), $77,118,000.
            (11) For the construction of increment 2 of the 
        regional security operations center at Kunia, Hawaii, 
        authorized by section 2401(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3497), as 
        amended by section 7017 of Public Law 109-234 (120 
        Stat. 485), $47,016,000.
            (12) For the construction of increment 2 of the 
        classified material conversion facility at Fort Meade, 
        Maryland, authorized by section 2401(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3497), 
        $11,151,000.
            (13) For the construction of increment 2 of an 
        operations building, Royal Air Force Menwith Hill 
        Station, United Kingdom, authorized by section 2401(b) 
        of the Military Construction Authorization Act of 
        Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3498), as amended by section 2406 of this Act, 
        $46,386,000.
            (14) For the construction of the second increment 
        of certain base closure and realignment activities 
        authorized by section 2404 of the Military Construction 
        Authorization Act of Fiscal Year 2006 (division B of 
        Public Law 109-163; 119 Stat. 3500), as added by 
        section 2404(b) of this Act, $390,000,000.
            (15) For the construction of increment 7 of a 
        munitions 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 of 2002 (division B of Public Law 
        107-107; 115 Stat. 1298), and section 2405 of the 
        Military Construction Authorization Act for Fiscal Year 
        2003 (division B of Public Law 107-314; 116 Stat. 
        2698), $99,157,000.
            (16) For the construction of increment 8 of a 
        munitions 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 the Military Construction Authorization 
        Act for Fiscal Year 2003 (division B of Public Law 107-
        314; 116 Stat. 2698), $41,836,000.
    (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 the sum of the 
following:
            (1) The total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a).
            (2) $46,400,000 (the balance of the amount 
        authorized under section 2401(a) for construction of a 
        health clinic at MacDill Air Force Base, Florida).
            (3) $521,000,000 (the balance of the amount 
        authorized under section 2401(a) for stage 1 of the 
        replacement of the Army Medical Research Institute of 
        Infectious Diseases at Fort Detrick, Maryland).
    (c) Limitation on Total Cost of Base Closure and 
Realignment Activities.--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 base closure and realignment activities, including real 
property acquisition and military construction projects, 
carried out under section 2404(a) of this Act may not exceed 
the sum of the following:
            (1) The total amount authorized to be appropriated 
        under subsection (a)(8).
            (2) $666,500,000 (the balance of the amount 
        authorized under section 2404(a) for base closure and 
        realignment activities).
    (d) Congressional Notification Regarding Base Closure and 
Realignment Activities.--Not later than 14 days after the date 
on which funds appropriated pursuant to the authorization of 
appropriations in subsection (a)(8) are first obligated for a 
particular program, project, or activity, the Secretary of 
Defense shall submit to the congressional defense committees a 
report describing the program, project, or activity.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    2006 PROJECT.

    (a) Modification of Outside the United States National 
Security Agency Project.--The table relating to the National 
Security Agency in section 2401(b) of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163; 119 Stat. 3498) is amended in the item relating to 
Menwith Hill, United Kingdom, by striking ``$86,354,000'' in 
the amount column and inserting ``$91,383,000''.
    (b) Conforming Amendments.--Section 2403(b)(5) of that Act 
(119 Stat. 3500) is amended by striking ``$44,657,000'' and 
inserting ``$49,686,000''.

   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.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 2006, 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 
$200,985,000.

            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.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 2006, 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), in the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $561,375,000; and
                    (B) for the Army Reserve, $190,617,000.
            (2) For the Department of the Navy, for the Navy 
        Reserve and Marine Corps Reserve, $49,998,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $294,283,000; and
                    (B) for the Air Force Reserve, $56,836,000.

        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 2004 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2003 
          projects.
Sec. 2704.  Effective date.

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, 2009; or
            (2) the date of the enactment of an Act authorizing 
        funds for military construction for fiscal year 2010.
    (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, 2009; or
            (2) the date of the enactment of an Act authorizing 
        funds for fiscal year 2010 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, or contributions to the North Atlantic 
        Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2004 
                    PROJECTS.

    (a) Extension and Renewal.--Notwithstanding section 2701 of 
the Military Construction Authorization Act for Fiscal Year 
2004 (division B of Public Law 108-136; 117 Stat. 1716), 
authorizations set forth in the tables in subsection (b), as 
provided in section 2101, 2301, 2302, 2401, or 2601 of that Act 
shall remain in effect until October 1, 2007, or the date of 
the enactment of an Act authorizing funds for military 
construction for fiscal year 2008, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

             Army: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Aviano Air Base, Italy.........  Joint deployment            $15,500,000
                                  facility.
Fort Wainwright, Alaska........  Training range complex.     $47,000,000
------------------------------------------------------------------------


           Air Force: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Eglin Air Force Base, Florida..  Family housing (279         $32,166,000
                                  units).
Hickam Air Force Base, Hawaii..  Parking ramp...........     $10,102,000
Travis Air Force Base,           Family housing (56          $12,723,000
 California.                      units).
------------------------------------------------------------------------


          Defense Wide: Extension of 2004 Project Authorization
------------------------------------------------------------------------
     Installation or Location        Agency and Project       Amount
------------------------------------------------------------------------
Hickam Air Force Base, Hawaii....  DLA hydrant fuel          $14,100,000
                                    system.
------------------------------------------------------------------------


      Army National Guard: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Albuquerque, New Mexico..........  Readiness center.....      $2,533,000
Fort Indiantown Gap, Pennsylvania  Training range.......     $15,338,000
Gary, Indiana....................  Aviation support          $15,581,000
                                    facility.
------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2003 
                    PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 2003 
(division B of Public Law 107-314; 116 Stat. 2700), 
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 2006 (division B of Public Law 109-163; 119 Stat. 3502), 
shall remain in effect until October 1, 2007, or the date of 
the enactment of an Act authorizing funds for military 
construction for fiscal year 2008, whichever is later.
    (b) Tables.--The table referred to in subsection (a) is as 
follows:

           Air Force: Extension of 2003 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Eglin Air Force Base, Florida..  Family housing (134         $15,906,000
                                  units).
Eglin Air Force Base, Florida..  Family housing office..        $597,000
Randolph Air Force Base, Texas.  Housing maintenance            $447,000
                                  facility.
------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act 
shall take effect on the later of--
            (1) October 1, 2006; or
            (2) the date of the enactment of this Act.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Increase in maximum annual amount authorized to be obligated 
          for emergency military construction.
Sec. 2802. One-year extension of temporary, limited authority to use 
          operation and maintenance funds for construction projects 
          outside the United States.
Sec. 2803. Repeal of requirement to determine availability of suitable 
          alternative housing for acquisition in lieu of construction of 
          new family housing.
Sec. 2804. Authority to continue to occupy leased family housing for 
          United States Southern Command personnel.
Sec. 2805. Consideration of alternative and more efficient uses for 
          general officer and flag officer quarters in excess of 6,000 
          square feet.
Sec. 2806. Modification of notification requirements related to cost 
          variation authority.
Sec. 2807. Consideration of local comparability of floor areas in 
          construction, acquisition, and improvement of military 
          unaccompanied housing.
Sec. 2808. Certification required for military construction projects for 
          facilities designed to provide training in urban operations.
Sec. 2809. Authority to carry out military construction projects in 
          connection with industrial facility investment program.
Sec. 2810. Repeal of special requirement for military construction 
          contracts on Guam.
Sec. 2811. Temporary expansion of authority to convey property at 
          military installations to support military construction.
Sec. 2812. Pilot projects for acquisition or construction of military 
          unaccompanied housing.

         Subtitle B--Real Property and Facilities Administration

Sec. 2821. Congressional notice requirements, in advance of acquisition 
          of land by condemnation for military purposes.
Sec. 2822. Consolidation of Department of Defense authorities regarding 
          granting of easements for rights-of-way.
Sec. 2823. Authority to grant restrictive easements for conservation 
          purposes in connection with land conveyances.
Sec. 2824. Maximum term of leases for structures and real property 
          relating to structures in foreign countries needed for 
          purposes other than family housing.
Sec. 2825. Consolidation of laws relating to transfer of Department of 
          Defense real property within the Department of Defense and to 
          other Federal agencies.
Sec. 2826. Defense access road program.
Sec. 2827. Reports on Army operational ranges.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Modification of deposit requirements in connection with lease 
          proceeds received at military installations approved for 
          closure or realignment after January 1, 2005.
Sec. 2832. Report on Air Force and Air National Guard bases affected by 
          2005 round of defense base closure and realignment.

                      Subtitle D--Land Conveyances

Sec. 2841. Conveyance of easement, Pine Bluff Arsenal, Arkansas.
Sec. 2842. Modification of land transfer authority, Potomac Annex, 
          District of Columbia.
Sec. 2843. Land conveyance, Naval Air Station, Barbers Point, Hawaii.
Sec. 2844. Land conveyances, Omaha, Nebraska.
Sec. 2845. Land conveyance, Hopkinton, New Hampshire.
Sec. 2846. Land conveyance, North Hills Army Reserve Center, Allison 
          Park, Pennsylvania.
Sec. 2847. Transfer of jurisdiction, Fort Jackson, South Carolina.
Sec. 2848. Sense of Congress regarding land conveyance involving Army 
          Reserve Center, Marshall, Texas.
Sec. 2849. Modifications to land conveyance authority, Engineering 
          Proving Ground, Fort Belvoir, Virginia.
Sec. 2850. Land conveyance, Radford Army Ammunition Plant, New River 
          Unit, Virginia.

                       Subtitle E--Energy Security

Sec. 2851. Consolidation and enhancement of laws to improve Department 
          of Defense energy efficiency and conservation.
Sec. 2852. Department of Defense goal regarding use of renewable energy 
          to meet electricity needs.
Sec. 2853. Congressional notification of cancellation ceiling for 
          Department of Defense energy savings performance contracts.
Sec. 2854. Use of energy efficiency products in new construction.

                        Subtitle F--Other Matters

Sec. 2861. Availability of research and technical assistance under 
          Defense Economic Adjustment Program.
Sec. 2862. Availability of community planning assistance relating to 
          encroachment of civilian communities on military facilities 
          used for training by the Armed Forces.
Sec. 2863. Prohibitions against making certain military airfields or 
          facilities available for use by civil aircraft.
Sec. 2864. Modification of certain transportation projects.
Sec. 2865. Availability of funds for South County Commuter Rail project, 
          Providence, Rhode Island.
Sec. 2866. Fox Point Hurricane Barrier, Providence, Rhode Island.
Sec. 2867. Federal funding for fixed guideway projects.
Sec. 2868. Feasibility study regarding use of General Services 
          Administration property for Fort Belvoir, Virginia, 
          realignment.

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

SEC. 2801. INCREASE IN MAXIMUM ANNUAL AMOUNT AUTHORIZED TO BE OBLIGATED 
                    FOR EMERGENCY MILITARY CONSTRUCTION.

    Section 2803(c)(1) of title 10, United States Code, is 
amended by striking ``$45,000,000'' and inserting 
``$50,000,000''.

SEC. 2802. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY TO USE 
                    OPERATION AND MAINTENANCE FUNDS FOR CONSTRUCTION 
                    PROJECTS OUTSIDE THE UNITED STATES.

    Section 2808(a) of the Military Construction Authorization 
Act for Fiscal Year 2004 (division B of Public Law 108-136; 117 
Stat. 1723), as amended by section 2810 of the Military 
Construction Authorization Act for Fiscal Year 2005 (division B 
of Public Law 108-375; 118 Stat. 2128) and section 2809 of the 
Military Construction Authorization Act for Fiscal Year 2006 
(division B of Public Law 109-163; 119 Stat. 3508), is further 
amended by striking ``and 2006'' and inserting ``through 
2007''.

SEC. 2803. REPEAL OF REQUIREMENT TO DETERMINE AVAILABILITY OF SUITABLE 
                    ALTERNATIVE HOUSING FOR ACQUISITION IN LIEU OF 
                    CONSTRUCTION OF NEW FAMILY HOUSING.

    (a) In General.--Section 2823 of title 10, United States 
Code, is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of subchapter II of chapter 169 of such title is 
amended by striking the item relating to section 2823.

SEC. 2804. AUTHORITY TO CONTINUE TO OCCUPY LEASED FAMILY HOUSING FOR 
                    UNITED STATES SOUTHERN COMMAND PERSONNEL.

    Section 2828(b)(4) of title 10, United States Code, is 
amended by adding at the end the following new subparagraph:
    ``(D) Until September 30, 2008, the Secretary of the Army 
may authorize family members of a member of the armed forces on 
active duty who is assigned to a family-member-restricted area 
and who, before such assignment, was occupying a housing unit 
leased under this paragraph, to remain in the leased housing 
unit until the member completes the assignment. Costs incurred 
for the leased housing unit during the assignment shall be 
included in the costs subject to the limitation under 
subparagraph (B).''.

SEC. 2805. CONSIDERATION OF ALTERNATIVE AND MORE EFFICIENT USES FOR 
                    GENERAL OFFICER AND FLAG OFFICER QUARTERS IN EXCESS 
                    OF 6,000 SQUARE FEET.

    (a) Reporting Requirements.--Subsection (e)(1) of section 
2831 of title 10, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the 
        end of the subparagraph;
            (2) in subparagraph (B)--
                    (A) by striking ``so identified'' and 
                inserting ``identified under subparagraph 
                (A)''; and
                    (B) by striking the period at the end of 
                the subparagraph and inserting a semicolon; and
            (3) by adding at the end the following new 
        subparagraphs:
            ``(C) identifying each family housing unit in 
        excess of 6,000 square feet used, or intended for use, 
        as quarters for a general officer or flag officer;
            ``(D) for each family housing unit identified under 
        subparagraph (C), specifying any alternative and more 
        efficient use to which the unit could be converted 
        (which would include any costs necessary to convert the 
        unit) and containing an explanation of the reasons why 
        the unit is not being converted to the alternative use; 
        and
            ``(E) for each family housing unit identified under 
        subparagraph (C) for which costs under subparagraph (A) 
        or new construction costs are anticipated to exceed 
        $100,000 in the next fiscal year, specifying any 
        alternative use to which the unit could be converted 
        (which would include any costs necessary to convert the 
        unit) and an estimate of the costs to demolish and 
        rebuild the unit to private sector standards.''.
    (b) Stylistic Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting 
        ``Establishment.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Credits to 
        Account.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Availability 
        of Amounts in Account.--'' after ``(c)''; and
            (4) in subsection (d), by inserting ``Use of 
        Account.--'' after ``(d)''; and
            (5) in the heading of subsection (e), by striking 
        ``Cost of'';

SEC. 2806. MODIFICATION OF NOTIFICATION REQUIREMENTS RELATED TO COST 
                    VARIATION AUTHORITY.

    Section 2853(c) of title 10, United States Code, is amended 
by striking ``if--'' and paragraphs (1), (2), and (3) and 
inserting the following: ``if the variation in cost or 
reduction in the scope of work is approved by the Secretary 
concerned and--
            ``(1) in the case of a cost increase or a reduction 
        in the scope of work--
                    ``(A) the Secretary concerned notifies the 
                appropriate committees of Congress in writing 
                of the cost increase or reduction in scope and 
                the reasons therefor, including a description 
                of the funds proposed to be used to finance any 
                increased costs; and
                    ``(B) a period of 21 days has elapsed after 
                the date on which the notification is received 
                by the committees or, if over sooner, a period 
                of 14 days has elapsed after the date on which 
                a copy of the notification is provided in an 
                electronic medium pursuant to section 480 of 
                this title; or
            ``(2) in the case of a cost decrease, the Secretary 
        concerned notifies the appropriate committees of 
        Congress in writing not later than 14 days after the 
        date funds are obligated in connection with the 
        military construction project or military family 
        housing project.''.

SEC. 2807. CONSIDERATION OF LOCAL COMPARABILITY OF FLOOR AREAS IN 
                    CONSTRUCTION, ACQUISITION, AND IMPROVEMENT OF 
                    MILITARY UNACCOMPANIED HOUSING.

    (a) Comparability of Floor Areas.--
            (1) In general.--Section 2856 of title 10, United 
        States Code, is amended to read as follows:

``Sec. 2856. Military unaccompanied housing: local comparability of 
                    floor areas

    ``In the construction, acquisition, and improvement of 
military unaccompanied housing, the Secretary concerned shall 
ensure that the floor areas of such housing in a particular 
locality (as designated by the Secretary concerned for purposes 
of this section) do not exceed the floor areas of similar 
housing in the private sector in that locality.''.
            (2) Clerical amendment.--The table of sections at 
        the beginning of subchapter III of chapter 169 of such 
        title is amended by striking the item relating to 
        section 2856 and inserting the following new item:

``2856. Military unaccompanied housing: local comparability of floor 
          areas.''.

    (b) Conforming Amendments Regarding Alternative Acquisition 
and Improvement Authority.--Section 2880(b) of such title is 
amended--
            (1) by striking ``(1) Section 2826'' and inserting 
        ``Sections 2826 and 2856'';
            (2) by inserting ``or military unaccompanied 
        housing'' after ``military family housing''; and
            (3) by striking paragraph (2).

SEC. 2808. CERTIFICATION REQUIRED FOR MILITARY CONSTRUCTION PROJECTS 
                    FOR FACILITIES DESIGNED TO PROVIDE TRAINING IN 
                    URBAN OPERATIONS.

    (a) Certification Required.--Section 2859 of title 10, 
United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Certification Required for Military Construction 
Projects Designed To Provide Training in Urban Operations.--(1) 
Except as provided in paragraph (3), the Secretary concerned 
may not carry out a military construction project to construct 
a facility designed to provide training in urban operations for 
members of the armed forces or personnel of the Department of 
Defense or other Federal agencies until--
            ``(A) the Secretary of Defense approves a strategy 
        for training and facility construction for operations 
        in urban terrain; and
            ``(B) the Under Secretary of Defense for Personnel 
        and Readiness evaluates the project and certifies to 
        the appropriate committees of Congress that the 
        project--
                    ``(i) is consistent with the strategy; and
                    ``(ii) incorporates the appropriate 
                capabilities for joint and interagency use in 
                accordance with the strategy.
    ``(2) The Under Secretary of Defense for Personnel and 
Readiness shall conduct the evaluation required by paragraph 
(1)(B) in consultation with the Commander of the United States 
Joint Forces Command.
    ``(3) This subsection shall not apply with respect to a 
military construction project carried out under the authority 
of section 2803, 2804, or 2808 of this title or section 2808 of 
the Military Construction Authorization Act for Fiscal Year 
2004 (division B of Public Law 108-136; 117 Stat. 1723).''.
    (b) Clerical Amendments.--
            (1) Section heading.--The heading of such section 
        is amended to read as follows:

``Sec. 2859. Construction requirements related to antiterrorism and 
                    force protection or urban-training operations''.

            (2) Table of sections.--The table of sections at 
        the beginning of subchapter III of chapter 169 of such 
        title is amended by striking the item relating to 
        section 2859 and inserting the following new item:

``2859. Construction requirements related to antiterrorism and force 
          protection or urban-training operations.''.
    (c) Effective Date.--Subsection (d) of section 2859 of 
title 10, United States Code, as added by subsection (a), shall 
apply with respect to military construction projects described 
in such subsection (d) for which funds are first provided for 
fiscal year 2007 or thereafter.

SEC. 2809. AUTHORITY TO CARRY OUT MILITARY CONSTRUCTION PROJECTS IN 
                    CONNECTION WITH INDUSTRIAL FACILITY INVESTMENT 
                    PROGRAM.

    (a) Authority.--Subchapter III of chapter 169 of title 10, 
United States Code, is amended by inserting after section 2860 
the following new section:

``Sec. 2861. Military construction projects in connection with 
                    industrial facility investment program

    ``(a) Authority.--The Secretary of Defense may carry out a 
military construction project, not previously authorized, for 
the purpose of carrying out activities under section 2474(a)(2) 
of this title, using funds appropriated or otherwise made 
available for that purpose in military construction accounts.
    ``(b) Crediting of Funds to Capital Budget.--Funds 
appropriated or otherwise made available in a fiscal year for 
the purpose of carrying out a military construction project 
with respect to a covered depot (as defined in subsection (e) 
of section 2476 of this title) may be credited to the amount 
required by subsection (a) of such section to be invested in 
the capital budgets of the covered depots in that fiscal year.
    ``(c) Notice and Wait Requirement.--When a decision is made 
to carry out a project under subsection (a), the Secretary of 
Defense shall notify in writing the appropriate committees of 
Congress of that decision and the savings estimated to be 
realized from the project. The project may then be carried out 
only after the end of the 21-day period beginning on the date 
the notification is received by such committees or, if earlier, 
the end of the 14-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium 
pursuant to section 480 of this title.
    ``(d) Annual Report.--Not later than December 31 of each 
year, the Secretary shall submit to Congress a report 
describing actions taken under this section and the savings 
realized from such actions during the fiscal year ending in the 
year in which the report is submitted.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such subchapter is amended by inserting after the 
item relating to section 2860 the following new item:

``2861. Military construction projects in connection with industrial 
          facility investment program.''.

SEC. 2810. REPEAL OF SPECIAL REQUIREMENT FOR MILITARY CONSTRUCTION 
                    CONTRACTS ON GUAM.

    (a) Repeal.--Section 2864 of title 10, United States Code, 
is repealed.
    (b) Clerical Amendment.--The table of sections at the 
beginning of subchapter III of chapter 169 of such title is 
amended by striking the item relating to section 2864.

SEC. 2811. TEMPORARY EXPANSION OF AUTHORITY TO CONVEY PROPERTY AT 
                    MILITARY INSTALLATIONS TO SUPPORT MILITARY 
                    CONSTRUCTION.

    (a) Temporary Inclusion of All Military Installations.--
Subsection (a) of section 2869 of title 10, United States Code, 
is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' before ``The Secretary 
        concerned'';
            (3) by striking ``located on a military 
        installation that is closed or realigned under a base 
        closure law'' and inserting ``described in paragraph 
        (2)''; and
            (4) by adding at the end the following new 
        paragraphs:
    ``(2) Paragraph (1) applies with respect to real property 
under the jurisdiction of the Secretary concerned that--
            ``(A) is located on a military installation that is 
        closed or realigned under a base closure law; or
            ``(B) is located on a military installation not 
        covered by subparagraph (A) and is determined to be 
        excess to the needs of the Department of Defense.
    ``(3) Subparagraph (B) of paragraph (2) shall apply only 
during the period beginning on the date of the enactment of the 
John Warner National Defense Authorization Act for Fiscal Year 
2007 and ending on September 30, 2008. Any conveyance of real 
property described in such subparagraph for which the Secretary 
concerned has provided the advance public notice required by 
subsection (d)(1) before the expiration date may be completed 
after that date.''.
    (b) Use of Authority to Support Agreements to Limit 
Encroachments.--Subparagraph (A) of paragraph (1) of subsection 
(a) of such section, as redesignated and amended by subsection 
(a), is further amended by striking ``land acquisition'' and 
inserting ``land acquisition, including the acquisition of all 
right, title, and interest or a lesser interest in real 
property under an agreement entered into under section 2684a of 
this title to limit encroachments and other constraints on 
military training, testing, and operations''.
    (c) Advance Notice of Use of Authority; Content of 
Notice.--Subsection (d) of such section is amended--
            (1) in paragraph (1), by striking ``closed or 
        realigned under the base closure laws is to be 
        conveyed'' and inserting ``is proposed for 
        conveyance'';
            (2) by striking paragraph (2) and inserting the 
        following new paragraph:
    ``(2) The Secretary concerned may not enter into an 
agreement under subsection (a) for the conveyance of real 
property until--
            ``(A) the Secretary submits to Congress notice of 
        the conveyance, including--
                    ``(i) a description of the real property to 
                be conveyed by the Secretary under the 
                agreement;
                    ``(ii) a description of the military 
                construction project, land acquisition, 
                military family housing, or military 
                unaccompanied housing to be carried out under 
                the agreement in exchange for the conveyance of 
                the property; and
                    ``(iii) the amount of any payment to be 
                made under subsection (b) or under section 
                2684a(d) of this title to equalize the fair 
                market values of the property to be conveyed 
                and the military construction project, land 
                acquisition, military family housing, or 
                military unaccompanied housing to be carried 
                out under the agreement in exchange for the 
                conveyance of the property; and
            ``(B) the waiting period applicable to that notice 
        under paragraph (3) expires.
    ``(3) If the notice submitted under paragraph (2) deals 
with the conveyance of real property located on a military 
installation that is closed or realigned under a base closure 
law or the conveyance of real property under an agreement 
entered into under section 2684a of this title, the Secretary 
concerned may enter into the agreement under subsection (a) for 
the conveyance of the property after a period of 21 days has 
elapsed from the date of receipt of the notice or, if over 
sooner, a period of 14 days has elapsed from the date on which 
a copy of the notice is provided in an electronic medium 
pursuant to section 480 of this title. In the case of other 
real property to be conveyed under subsection (a), the 
Secretary concerned may enter into the agreement only after a 
period of 60 days has elapsed from the date of receipt of the 
notice or, if over sooner, a period of 45 days has elapsed from 
the date on which the electronic copy is provided.''.
    (d) Deposit and Use of Funds.--Subsection (e) of such 
section is amended to read as follows:
    ``(e) Deposit and Use of Funds.--(1) Except as provided in 
paragraph (2), the Secretary concerned may deposit funds 
received under subsection (b) in the Department of Defense 
housing funds established under section 2883(a) of this title.
    ``(2) During the period specified in paragraph (3) of 
subsection (a), the Secretary concerned shall deposit funds 
received under subsection (b) in the appropriation `Foreign 
Currency Fluctuations, Construction, Defense'.
    ``(3) The funds deposited under paragraph (2) shall be 
available, in such amounts as provided in appropriation Acts, 
for the purpose of paying increased costs of overseas military 
construction and family housing construction or improvement 
associated with unfavorable fluctuations in currency exchange 
rates. The use of such funds for this purpose does not relieve 
the Secretary concerned from the duty to provide advance notice 
to Congress under section 2853(c) of this title whenever the 
Secretary approves an increase in the cost of an overseas 
project under such section.''.
    (e) Annual Reports; Effect of Failure to Submit.--
Subsection (f) of such section is amended--
            (1) by redesignating paragraphs (1), (2), and (3) 
        as subparagraphs (A), (B), and (C), respectively;
            (2) in subparagraph (C), as so redesignated, by 
        inserting before the period at the end the following: 
        ``and of excess real property at military 
        installations'';
            (3) by striking ``(f)'' and all that follows 
        through ``the following:'' and inserting the following:
    ``(f) Annual Reports; Effect of Failure to Submit.--(1) Not 
later than March 15 of each year, the Secretary of Defense 
shall submit to Congress a report detailing the following:''; 
and
            (4) by adding at the end the following new 
        paragraph:
    ``(2) If the report for a year is not submitted to Congress 
by the date specified in paragraph (1), the Secretary concerned 
may not enter into an agreement under subsection (a) after that 
date for the conveyance of real property until the date on 
which the report is finally submitted.''.
    (f) Clerical Amendments.--
            (1) Section heading.--The heading of such section 
        is amended to read as follows:

``Sec. 2869. Conveyance of property at military installations to 
                    support military construction or limit 
                    encroachment''.

            (2) Table of sections.--The table of sections at 
        the beginning of subchapter III of chapter 169 of such 
        title is amended by striking the item relating to 
        section 2869 and inserting the following new item:

``2869. Conveyance of property at military installations to support 
          military construction or limit encroachment.''.
    (g) Conforming Amendments to Authority to Limit 
Encroachments.--Subsection (d)(3) of section 2684a of such 
title is amended--
            (1) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D), respectively;
            (2) in subparagraph (C), as so redesignated, by 
        striking ``in the sharing of acquisition costs of real 
        property, or an interest in real property, under 
        paragraph (1)(B)'' and inserting ``under subparagraph 
        (A), either through the contribution of funds or excess 
        real property, or both,''; and
            (3) by inserting after subparagraph (A) the 
        following new subparagraph (B):
    ``(B) In lieu of or in addition to making a monetary 
contribution toward the cost of acquiring a parcel of real 
property, or an interest therein, pursuant to an agreement 
under this section, the Secretary concerned may convey, using 
the authority provided by section 2869 of this title, real 
property described in paragraph (2) of subsection (a) of such 
section, subject to the limitation in paragraph (3) of such 
subsection.''.

SEC. 2812. PILOT PROJECTS FOR ACQUISITION OR CONSTRUCTION OF MILITARY 
                    UNACCOMPANIED HOUSING.

    (a) Reduction of Applicable Notification Periods.--Section 
2881a of title 10, United States Code, is amended by striking 
``90 days'' both places it appears and inserting ``30 days''.
    (b) Extension of Authority.--Subsection (f) of such section 
is amended by striking ``2007'' and inserting ``2009''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2821. CONGRESSIONAL NOTICE REQUIREMENTS, IN ADVANCE OF ACQUISITION 
                    OF LAND BY CONDEMNATION FOR MILITARY PURPOSES.

    (a) Sense of Congress.--It is the sense of Congress that 
the Secretary of Defense, when acquiring land for military 
purposes, should--
            (1) make every effort to acquire the land by means 
        of purchases from willing sellers; and
            (2) employ condemnation, eminent domain, or seizure 
        procedures only as a measure of last resort in cases of 
        compelling national security requirements or at the 
        request of the seller.
    (b) Advance Notice of Use of Condemnation; Exceptions.--
Section 2663 of title 10, United States Code, is amended--
            (1) in subsection (a)(1), ``The Secretary'' and 
        inserting ``Subject to subsection (f), the Secretary''; 
        and
            (2) by adding at the end the following new 
        subsections:
    ``(f) Advance Notice of Use of Condemnation.--(1) Before 
commencing any legal proceeding to acquire any interest in land 
under subsection (a), including acquisition for temporary use, 
by condemnation, eminent domain, or seizure, the Secretary of 
the military department concerned shall--
            ``(A) pursue, to the maximum extent practicable, 
        all other available options for the acquisition or use 
        of the land, such as the purchase of an easement or the 
        execution of a land exchange; and
            ``(B) submit to the congressional defense 
        committees a report containing--
                    ``(i) a description of the land to be 
                acquired;
                    ``(ii) a certification that negotiations 
                with the owner or owners of the land occurred, 
                and that the Secretary tendered consideration 
                in an amount equal to the fair market value of 
                the land, as determined by the Secretary; and
                    ``(iii) an explanation of the other 
                approaches considered for acquiring use of the 
                land, the reasons for the acquisition of the 
                land, and the reasons why alternative 
                acquisition strategies are inadequate.
    ``(2) The Secretary concerned may have proceedings brought 
in the name of the United States to acquire the land after the 
end of the 21-day period beginning on the date on which the 
report is received by the committees or, if over sooner, the 
end of the 14-day period beginning on the date on which a copy 
of the report is provided in an electronic medium pursuant to 
section 480 of this title.
    ``(g) Exception to Advance Notice Requirement.--If the 
Secretary of a military department determines that the use of 
condemnation, eminent domain, or seizure to acquire an interest 
in land is required under subsection (a) to satisfy a 
requirement vital to national security, and that any delay 
would be detrimental to national security or the protection of 
health, safety, or the environment, the Secretary may have 
proceedings brought in the name of the United States to acquire 
the land in advance of submitting the report required by 
subsection (f)(1)(B). However, the Secretary shall submit the 
report not later than seven days after commencement of the 
legal proceedings with respect to the land.''.

SEC. 2822. CONSOLIDATION OF DEPARTMENT OF DEFENSE AUTHORITIES REGARDING 
                    GRANTING OF EASEMENTS FOR RIGHTS-OF-WAY.

    (a) Consolidation.--Subsection (a) of section 2668 of title 
10, United States Code, is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``he'' both places it 
                appears and inserting ``the Secretary''; and
                    (B) by striking ``his control, to a State, 
                Commonwealth, or possession, or political 
                subdivision thereof, or to a citizen, 
                association, partnership, or corporation of a 
                State, Commonwealth, or possession,'' and 
                inserting ``the Secretary's control'';
            (2) in paragraph (2), by striking ``oil pipe 
        lines'' and inserting ``gas, water, sewer, and oil pipe 
        lines''; and
            (3) in paragraph (13), by striking ``he considers 
        advisable, except a purpose covered by section 2669 of 
        this title'' and inserting ``the Secretary considers 
        advisable''.
    (b) Stylistic Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting ``Authorized 
        Types of Easements.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Limitation on 
        Size of Easement.--'' after ``(b)'';
            (3) in subsection (c), by inserting 
        ``Termination.--'' after ``(c)'';
            (4) in subsection (d), by inserting ``Notice to 
        Department of the Interior.--'' after ``(d)''; and
            (5) in subsection (e), by inserting ``Disposition 
        of Consideration.--'' after ``(e)''.
    (c) Conforming Repeal.--Section 2669 of such title is 
repealed.
    (d) Clerical Amendment.--The table of sections at the 
beginning of chapter 159 of such title is amended by striking 
the item related to section 2669.

SEC. 2823. AUTHORITY TO GRANT RESTRICTIVE EASEMENTS FOR CONSERVATION 
                    PURPOSES IN CONNECTION WITH LAND CONVEYANCES.

    (a) Restrictive Easements.--Chapter 159 of title 10, United 
States Code, is amended by inserting after section 2668 the 
following new section:

``Sec. 2668a. Easements: granting restrictive easements in connection 
                    with land conveyances

    ``(a) Authority To Include Restrictive Easement.--In 
connection with the conveyance of real property by the 
Secretary concerned under any provision of law, the Secretary 
concerned may grant an easement to an entity specified in 
subsection (b) restricting future uses of the conveyed real 
property for a conservation purpose consistent with section 
170(h)(4)(A)(iv) of the Internal Revenue Code of 1986 (26 
U.S.C. 170(h)(4)(A)(iv)).
    ``(b) Authorized Recipients.--An easement under subsection 
(a) may be granted only to--
            ``(1) a State or local government; or
            ``(2) a qualified organization, as that term is 
        defined in section 170(h) of the Internal Revenue Code 
        of 1986 (26 U.S.C. 170(h)).
    ``(c) Limitations on Use of Easement Authority.--An 
easement under subsection (a) may not be granted unless--
            ``(1) the proposed recipient of the easement 
        consents to the receipt of the easement;
            ``(2) the Secretary concerned determines that the 
        easement is in the public interest and the conservation 
        purpose to be promoted by the easement cannot be 
        effectively achieved through the application of State 
        law by the State or a local government without the 
        grant of restrictive easements;
            ``(3) the jurisdiction that encompasses the 
        property to be subject to the easement authorizes the 
        grant of restrictive easements; and
            ``(4) the Secretary can give or assign to a third 
        party the responsibility for monitoring and enforcing 
        easements granted under this section.
    ``(d) Consideration.--Easements granted under this section 
shall be without consideration from the recipient.
    ``(e) Acreage Limitation.--No easement granted under this 
section may include more land than is necessary for the 
easement.
    ``(f) Terms and Conditions.--The grant of an easement under 
this section shall be subject to such additional terms and 
conditions as the Secretary concerned considers appropriate to 
protect the interests 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 2668 the following new item:

``2668a. Easements: granting restrictive easements in connection with 
          land conveyances.''.

SEC. 2824. MAXIMUM TERM OF LEASES FOR STRUCTURES AND REAL PROPERTY 
                    RELATING TO STRUCTURES IN FOREIGN COUNTRIES NEEDED 
                    FOR PURPOSES OTHER THAN FAMILY HOUSING.

    Section 2675(a) of title 10, United States Code, is amended 
by striking ``five years'' and inserting ``10 years''.

SEC. 2825. CONSOLIDATION OF LAWS RELATING TO TRANSFER OF DEPARTMENT OF 
                    DEFENSE REAL PROPERTY WITHIN THE DEPARTMENT OF 
                    DEFENSE AND TO OTHER FEDERAL AGENCIES.

    (a) Inclusion of Transfer Authority Between Armed Forces.--
Section 2696 of title 10, United States Code, is amended--
            (1) by redesignating subsections (a) and (b) as 
        subsections (b) and (c), respectively; and
            (2) by inserting before subsection (b), as so 
        redesignated, the following new subsection:
    ``(a) Transfers Between Armed Forces.--If either of the 
Secretaries concerned requests it and the other approves, real 
property may be transferred, without compensation, from one 
armed force to another. Section 2571(d) of this title shall 
apply to the transfer of real property under this 
subsection.''.
    (b) Inclusion of Department of Justice Program To Screen 
and Convey of Property for Correctional Facilities.--The text 
of section 2693 of such title is amended--
            (1) by redesignating paragraphs (1), (2), and (3) 
        of subsection (a) as subparagraphs (A), (B), and (C), 
        respectively;
            (2) by redesignating paragraphs (1) and (2) of 
        subsection (b) as subparagraphs (A) and (B), 
        respectively, and in such subparagraph (B), as so 
        redesignated, by striking ``this section'' and 
        inserting ``paragraph (1)'';
            (3) by striking ``(a) Except as provided in 
        subsection (b)'' and inserting ``(f) Screening and 
        Conveyance of Property for Correctional Facilities 
        Purposes.--(1) Except as provided in paragraph (2)'';
            (4) by striking ``(b) The provisions of this 
        section'' and inserting ``(2) Paragraph (1)''; and
            (5) by transferring the text, as so redesignated 
        and amended, to appear as a new subsection (f) at the 
        end of section 2696 of such title.
    (c) Conforming Amendments.--
            (1) Conforming amendment to authority on 
        interchange of property and services.--Section 2571(a) 
        of such title is amended by striking ``and real 
        estate''.
            (2) Repeal of superseded authority on screening and 
        transfer for correctional purposes.--Section 2693 of 
        such title is repealed.
            (3) Conforming amendments to consolidated 
        authority.--Section 2696 of such title is amended--
                    (A) in subsection (b), as redesignated by 
                subsection (a)(1), by striking ``Screening 
                Requirement.--'' and inserting ``Screening 
                Requirements for Additional Federal Use.--'';
                    (B) in subsection (c)(1), as redesignated 
                by subsection (a)(1), by striking ``subsection 
                (a)'' in the first sentence and inserting 
                ``subsection (b)'';
                    (C) in subsection (d), by striking 
                ``subsection (b)(1)'' and inserting 
                ``subsection (c)(1)''; and
                    (D) in subsection (e), by striking ``this 
                section'' and inserting ``subsection (b)''.
    (d) Clerical Amendments.--
            (1) Section 2571.--(A) The heading of section 2571 
        of such title is amended to read as follows:

``Sec. 2571. Interchange of supplies and services''.

            (B) The table of sections at the beginning of 
        chapter 153 of such title is amended by striking the 
        item relating to section 2571 and inserting the 
        following new item:

``2571. Interchange of supplies and services.''.

            (2) Sections 2693 and 2696.--(A) The heading of 
        section 2696 of such title is amended to read as 
        follows:

``Sec. 2696. Real property: transfer between armed forces and screening 
                    requirements for other Federal use''.

            (B) The table of sections at the beginning of 
        chapter 159 of such title is amended--
                    (i) by striking the item relating to 
                section 2693; and
                    (ii) by striking the item relating to 
                section 2696 and inserting the following new 
                item:

``2696. Real property: transfer between armed forces and screening 
          requirements for other Federal use.''.

SEC. 2826. DEFENSE ACCESS ROAD PROGRAM.

    Section 2837 of the Military Construction Authorization Act 
for Fiscal Year 2006 (division B of Public Law 109-163; 119 
Stat. 3522) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``and transit systems'' 
                after ``that roads''; and
                    (B) by striking ``that is'' and inserting 
                ``that are''; and
            (2) in subsection (b)--
                    (A) by striking ``and'' at the end of 
                paragraph (1); and
                    (B) by striking paragraph (2) and inserting 
                the following new paragraphs:
            ``(2) to determine whether the existing surface 
        transportation infrastructure, including roads and 
        transit at each installation identified under paragraph 
        (1) is adequate to support the increased traffic 
        associated with the increase in the number of defense 
        personnel described in that paragraph; and
            ``(3) to determine whether the defense access road 
        program adequately considers the complete range of 
        surface transportation options, including roads and 
        other means of transit, necessary to support the 
        national defense.''.

SEC. 2827. REPORTS ON ARMY OPERATIONAL RANGES.

    (a) Report on Pinon Canyon Maneuver Site.--
            (1) Report required.--Not later than November 30, 
        2006, the Secretary of the Army shall submit to the 
        congressional defense committees a report containing an 
        analysis of any potential expansion of the Pinon Canyon 
        Maneuver Site at Fort Carson, Colorado.
            (2) Elements of report.--The report required under 
        paragraph (1) shall include the following:
                    (A) A description of the current and 
                projected military requirements of the Army for 
                training at the Pinon Canyon Maneuver Site.
                    (B) An analysis of the reasons for any 
                changes in those requirements, including the 
                extent to which the changes are the result of--
                            (i) an increase in military 
                        personnel using the Pinon Canyon 
                        Maneuver Site due to decisions made as 
                        part of the 2005 round of defense base 
                        closure and realignment under 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);
                            (ii) the conversion of Army 
                        brigades to a modular format;
                            (iii) the Integrated Global 
                        Presence and Basing Strategy;
                            (iv) high operational tempos; or
                            (v) surge requirements.
                    (C) A proposed plan for addressing those 
                requirements, including a description of any 
                proposed expansion of the existing Pinon Canyon 
                Maneuver Site by acquiring privately held land 
                surrounding the site and an analysis of 
                alternative approaches that would not require 
                expansion.
            (3) Additional elements.--If the expansion of the 
        Pinon Canyon Maneuver Site is recommended in the plan 
        required by paragraph (2)(C), the report shall also 
        include the following:
                    (A) An assessment of the economic impact on 
                local communities of expanding the Pinon Canyon 
                Maneuver Site by acquiring privately held land 
                surrounding the site.
                    (B) An assessment of the environmental 
                impact of expanding the Pinon Canyon Maneuver 
                Site.
                    (C) An estimate of the costs associated 
                with the potential expansion, including land 
                acquisition, range improvements, installation 
                of utilities, environmental restoration, and 
                other environmental activities in connection 
                with the acquisition.
                    (D) An assessment of options for 
                compensating local communities for the loss of 
                property tax revenue as a result of the 
                expansion of Pinon Canyon Maneuver Site.
                    (E) An assessment of whether the 
                acquisition of additional land at the Pinon 
                Canyon Maneuver Site can be carried out by the 
                Secretary solely through transactions, 
                including land exchanges and the lease or 
                purchase of easements, with willing sellers of 
                the privately held land.
    (b) Limitation on Real Property Acquisition Pending 
Report.--The Secretary of the Army may not carry out any 
acquisition of real property to expand the Pinon Canyon 
Maneuver Site until at least 30 days after the date on which 
the Secretary submits the report required under subsection (a).
    (c) Report on Potential Expansion of Army Operational 
Ranges.--
            (1) Report required.--Not later than February 1, 
        2007, the Secretary of the Army shall submit to the 
        congressional defense committees a report containing an 
        assessment of the Army operational ranges used to 
        support range activities.
            (2) Content.--The report required under paragraph 
        (1) shall include the following information:
                    (A) The size, description, and mission-
                essential tasks supported by each Army 
                operational range during fiscal year 2003.
                    (B) A description of the projected changes 
                in Army operational range requirements, 
                including the size, characteristics, and 
                attributes for mission-essential activities at 
                each range and the extent to which any changes 
                in requirements are a result of--
                            (i) decisions made as part of the 
                        2005 round of defense base closure and 
                        realignment under 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);
                            (ii) the conversion of Army 
                        brigades to a modular format;
                            (iii) the Integrated Global 
                        Presence and Basing Strategy;
                            (iv) high operational tempos; or
                            (v) surge requirements.
                    (C) The projected deficit or surplus of 
                land at each Army operational range, and a 
                description of the Army's plan to address that 
                projected deficit or surplus of land as well as 
                the upgrade of range attributes at each 
                existing Army operational range.
                    (D) A description of the Army's 
                prioritization process and investment strategy 
                to address the potential expansion or upgrade 
                of Army operational ranges.
                    (E) An analysis of alternatives to the 
                expansion of Army operational ranges, including 
                an assessment of the joint use of operational 
                ranges under the jurisdiction, custody, or 
                control of the Secretary of another military 
                department.
            (3) Definitions.--In this subsection:
                    (A) The term ``Army operational range'' has 
                the meaning given the term ``operational 
                range'' in section 101(e)(3) of title 10, 
                United States Code, except that the term is 
                limited to operational ranges under the 
                jurisdiction, custody, or control of the 
                Secretary of the Army.
                    (B) The term ``range activities'' has the 
                meaning given that term in section 101(e)(2) of 
                such title.

                Subtitle C--Base Closure and Realignment

SEC. 2831. MODIFICATION OF DEPOSIT REQUIREMENTS IN CONNECTION WITH 
                    LEASE PROCEEDS RECEIVED AT MILITARY INSTALLATIONS 
                    APPROVED FOR CLOSURE OR REALIGNMENT AFTER JANUARY 
                    1, 2005.

    Section 2667(d) of title 10, United States Code, is 
amended--
            (1) in paragraph (1)(B)(ii), by striking 
        ``paragraph (4) or (5)'' and inserting ``paragraph (4), 
        (5), or (6)'';
            (2) in paragraph (5), by inserting after ``lease 
        under subsection (f)'' the following: ``at a military 
        installation approved for closure or realignment under 
        a base closure law before January 1, 2005,''; and
            (3) by adding at the end the following new 
        paragraph:
    ``(6) Money rentals received by the United States from a 
lease under subsection (f) at a military installation approved 
for closure or realignment under a base closure law on or after 
January 1, 2005, shall be deposited into the account 
established under section 2906A(a) 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).''.

SEC. 2832. REPORT ON AIR FORCE AND AIR NATIONAL GUARD BASES AFFECTED BY 
                    2005 ROUND OF DEFENSE BASE CLOSURE AND REALIGNMENT.

    (a) Report.--Not later than January 1, 2007, the Secretary 
of the Air Force shall submit to Congress a report on planning 
by the Department of the Air Force for future roles and 
missions for each Air Force and Air National Guard installation 
that--
            (1) will have the number of aircraft, weapon 
        systems, or functions assigned to the installation 
        reduced or eliminated as a result of decisions made as 
        part of the 2005 round of defense base closure and 
        realignment under 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); or
            (2) will serve as a receiving location for the 
        realignment of aircraft, weapons systems, or functions 
        as a result of such decisions.
    (b) Elements of Report.--The report required under 
subsection (a) shall include the following:
            (1) An assessment of the capabilities, 
        characteristics, and capacity of the facilities, other 
        infrastructure, and personnel at each installation 
        described in subsection (a).
            (2) A description of the planning process used by 
        the Department of the Air Force to determine future 
        roles and missions at each installation described in 
        subsection (a), including an analysis of alternatives 
        for installations to support each future role or 
        mission.
            (3) A description of the future roles and missions 
        under consideration for each Air Force and Air National 
        Guard installation, including installations described 
        in subsection (a), and an explanation of the criteria 
        and decision-making process to make final decisions 
        about future roles and missions for each installation.
            (4) A timeline for decisions on the final 
        determination of future roles and missions for each 
        installation described in subsection (a).

                      Subtitle D--Land Conveyances

SEC. 2841. CONVEYANCE OF EASEMENT, PINE BLUFF ARSENAL, ARKANSAS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to Jefferson County, Arkansas 
(in this section referred to as the ``County''), all right, 
title, and interest of the United States in and to an easement 
that was acquired by the United States in 1942 for the benefit 
of Pine Bluff Arsenal, Arkansas, and encumbers the real 
property described in subsection (c) if the Secretary 
determines that the conveyance and subsequent use of the 
easement will not adversely impact the mission of Pine Bluff 
Arsenal. The conveyance shall include all appurtenances to the 
easement and any improvements thereon constructed by the United 
States.
    (b) Purpose of Conveyance.--The conveyance authorized by 
subsection (a) is for the sole purpose of permitting the County 
to construct, maintain, and operate a railroad over, upon, and 
across the real property encumbered by the easement.
    (c) Description of Property Encumbered by Easement.--The 
real property encumbered by the easement is situated in 
Jefferson County, Arkansas, consists of approximately 38.18 
acres, and is described as PBR Tract No. 22, 23, 24, 25, 26, 
27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 38-A and 39 and 
includes the real property described in a Warranty Deed from 
C.C. Neal and Pearlee Neal dated August 14, 1942. If the 
Secretary determines that an additional survey is necessary to 
better determine the legal description of the real property 
encumbered by the easement, a survey satisfactory to the 
Secretary shall be conducted.
    (d) Further Transfer, Assignments, or Permits.--Subject to 
subsection (b), the County may make such further transfer or 
assignments, grant such permits, or make such other 
arrangements with regard to the easement conveyed under 
subsection (a) as the County considers beneficial and 
appropriate for the interests of the County.
    (e) Payment of Costs of Conveyances.--
            (1) Payment required.--The Secretary shall require 
        the County to cover costs to be incurred by the 
        Secretary, or to reimburse the Secretary for costs 
        incurred by the Secretary, to carry out a conveyance 
        under subsection (a), including survey costs, related 
        to the conveyance. If amounts are collected from the 
        County in advance of the Secretary incurring the actual 
        costs, and the amount collected exceeds the costs 
        actually incurred by the Secretary to carry out the 
        conveyance, the Secretary shall refund the excess 
        amount to the County.
            (2) Treatment of amounts received.--Amounts 
        received under paragraph (1) as reimbursement for costs 
        incurred by the Secretary to carry out a conveyance 
        under subsection (a) 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.
    (f) Additional Term 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. 2842. MODIFICATION OF LAND TRANSFER AUTHORITY, POTOMAC ANNEX, 
                    DISTRICT OF COLUMBIA.

    Section 2831(a) of the National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2795) is 
amended by striking ``consisting of approximately 3 acres'' and 
inserting ``consisting of approximately 4 acres and containing 
two buildings, known as building 6 and building 7''.

SEC. 2843. LAND CONVEYANCE, NAVAL AIR STATION, BARBERS POINT, HAWAII.

    (a) Conveyance of Property.--Not later than September 30, 
2008, the Secretary of the Navy shall enter into a binding 
agreement to convey, by sale, lease, or a combination thereof, 
to any public or private person or entity outside the 
Department of Defense certain parcels of real property, 
including any improvements thereon, consisting of approximately 
499 acres located at the former Naval Air Station, Barbers 
Point, Oahu, Hawaii, that are subject to the Ford Island Master 
Development Agreement developed pursuant to section 2814(a)(2) 
of title 10, United States Code, for the purpose of promoting 
the beneficial development of the real property.
    (b) Use of Existing Authority.--To implement subsection 
(a), the Secretary may utilize the special conveyance and lease 
authorities provided to the Secretary by subsections (b) and 
(c) of section 2814 of title 10, United States Code, for the 
purpose of developing or facilitating the development of Ford 
Island, Hawaii.
    (c) Description of Property.--The exact acreage and legal 
description of 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 
a conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2844. LAND CONVEYANCES, OMAHA, NEBRASKA.

    (a) Conveyances Authorized.--
            (1) Army conveyance.--The Secretary of the Army may 
        convey to the Metropolitan Community College Area, a 
        public community college located in Omaha, Nebraska (in 
        this section referred to as the ``College'') all right, 
        title, and interest of the United States in and to 
        three parcels of real property under the control of the 
        Army Reserve, including any improvements thereon, 
        consisting of approximately 5.42 acres on the Fort 
        Omaha campus at the College, for educational purposes.
            (2) Navy conveyance.--The Secretary of the Navy may 
        convey to the College all right, title, and interest of 
        the United States in and to a parcel of real property 
        under the control of the Navy Reserve and Marine Corps 
        Reserve, including any improvements thereon, consisting 
        of approximately 6.57 acres on the Fort Omaha campus at 
        the College, for educational purposes.
    (b) Consideration.--
            (1) In general.--As consideration for each 
        conveyance under subsection (a), the College shall 
        provide the United States, whether by cash payment, in-
        kind consideration, or a combination thereof, an amount 
        that is not less than the fair market value of the 
        conveyed property, as determined pursuant to an 
        appraisal acceptable to the Secretary concerned.
            (2) Reduced tuition rates.--The Secretary concerned 
        may accept as in-kind consideration under paragraph (1) 
        reduced tuition rates for military personnel at the 
        College.
    (c) Payment of Costs of Conveyances.--
            (1) Payment required.--The Secretary concerned 
        shall require the College to cover costs to be incurred 
        by the Secretary, or to reimburse the Secretary for 
        costs incurred by the Secretary, to carry out a 
        conveyance under subsection (a), including survey 
        costs, related to the conveyance. If amounts are 
        collected from the College in advance of the Secretary 
        incurring the actual costs, and the amount collected 
        exceeds the costs actually incurred by the Secretary to 
        carry out the conveyance, the Secretary shall refund 
        the excess amount to the College.
            (2) Treatment of amounts received.--Amounts 
        received under paragraph (1) as reimbursement for costs 
        incurred by the Secretary concerned to carry out a 
        conveyance under subsection (a) 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 surveys satisfactory to 
the Secretary concerned.
    (e) Additional Terms and Conditions.--The Secretary 
concerned 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. 2845. LAND CONVEYANCE, HOPKINTON, NEW HAMPSHIRE.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the Town of Hopkinton, New Hampshire (in this section 
referred to as the ``Town''), all right, title, and interest of 
the United States in and to a parcel of real property, 
including any improvements thereon, consisting of approximately 
90 acres located at a site in Hopkinton, New Hampshire, known 
as the ``Kast Hill'' property for the purpose of permitting the 
Town to use the existing sand and gravel resources on the 
property and to ensure perpetual conservation of the property.
    (b) Consideration.--
            (1) In general.--As consideration for the 
        conveyance under subsection (a), the Town shall, 
        subject to paragraph (2), provide to the United States, 
        whether by cash payment, in-kind consideration, or a 
        combination thereof, an amount that is not less than 
        the fair market value of the conveyed property, as 
        determined pursuant to an appraisal acceptable to the 
        Secretary.
            (2) Waiver of payment of consideration.--The 
        Secretary may waive the requirement for consideration 
        under paragraph (1) if the Secretary determines that 
        the Town will not use the existing sand and gravel 
        resources to generate revenue.
    (c) Reversionary Interest.--If the Secretary determines at 
any time that the real 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 all or any portion of the property 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.
    (d) Prohibition on Reconveyance of Land.--The Town may not 
reconvey any of the land acquired from the United States under 
subsection (a) without the prior approval of the Secretary.
    (e) Payment of Costs of Conveyance.--
            (1) Payment required.--The Secretary shall require 
        the Town to cover costs to be incurred by the 
        Secretary, or to reimburse the Secretary for costs 
        incurred by the Secretary, to carry out the conveyance 
        under subsection (a), including survey costs, costs 
        related to environmental documentation, and other 
        administrative costs related to the conveyance. If 
        amounts are collected from the Town in advance of the 
        Secretary incurring the actual costs, and the amount 
        collected exceeds the costs actually incurred by the 
        Secretary to carry out the conveyance, the Secretary 
        shall refund the excess amount to the Town.
            (2) Treatment of amounts received.--Amounts 
        received as reimbursement under paragraph (1) 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.
    (f) 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.
    (g) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance of real property under subsection (a) as the 
Secretary consider appropriate to protect the interests of the 
United States.

SEC. 2846. LAND CONVEYANCE, NORTH HILLS ARMY RESERVE CENTER, ALLISON 
                    PARK, PENNSYLVANIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the North Allegheny School District (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 consisting of approximately 11.15 acres and containing 
the North Hills Army Reserve Center in Allison Park, 
Pennsylvania, for the purpose of permitting the School District 
to use the property for educational and recreational purposes 
and for parking facilities related thereto.
    (b) Consideration.--The Secretary may waive any requirement 
for consideration in connection with the conveyance under 
subsection (a) if the Secretary determines that, were the 
conveyance of the property to be made under subchapter III of 
chapter 5 of title 40, United States Code, for the same purpose 
specified in subsection (a), the conveyance could be made 
without consideration.
    (c) Reversionary Interest.--If the Secretary determines at 
any time that the real 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 all or any portion of the property 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.
    (d) Payment of Costs of Conveyance.--
            (1) Payment required.--The Secretary shall require 
        the School District to cover costs to be incurred by 
        the Secretary, or to reimburse the Secretary for costs 
        incurred by the Secretary, to carry out the conveyance 
        under subsection (a), including survey costs, costs 
        related to environmental documentation, and other 
        administrative costs related to the conveyance. If 
        amounts are collected from the School District in 
        advance of the Secretary incurring the actual costs, 
        and the amount collected exceeds the costs actually 
        incurred by the Secretary to carry out the conveyance, 
        the Secretary shall refund the excess amount to the 
        School District.
            (2) Treatment of amounts received.--Amounts 
        received as reimbursement under paragraph (1) 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.
    (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.
    (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. 2847. TRANSFER OF JURISDICTION, FORT JACKSON, SOUTH CAROLINA.

    (a) Transfer Authorized.--The Secretary of the Army may 
transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of Veterans Affairs a parcel of 
real property, including any improvements thereon, consisting 
of approximately 600 acres and comprising a portion of Fort 
Jackson, South Carolina.
    (b) Use of Land.--The Secretary of Veterans Affairs shall 
establish on the real property transferred under subsection (a) 
a national cemetery under chapter 24 of title 38, United States 
Code.
    (c) Legal Description.--The exact acreage and legal 
description of the real property to be transferred under this 
section shall be determined by a survey satisfactory to the 
Secretary of the Army. The cost of the survey shall be borne by 
the Secretary of Veterans Affairs.
    (d) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the transfer under this section as the 
Secretary of the Army considers appropriate to protect the 
interests of the United States.

SEC. 2848. SENSE OF CONGRESS REGARDING LAND CONVEYANCE INVOLVING ARMY 
                    RESERVE CENTER, MARSHALL, TEXAS.

    It is the sense of Congress that the Secretary of the Army 
should consider the feasibility of conveying the Army Reserve 
Center at 1209 Pinecrest Drive East in Marshall, Texas, to the 
Marshall-Harrison County Veterans Association for the purpose 
of assisting the efforts of the Association in erecting a 
veterans memorial, creating a park, and establishing a museum 
recognizing and honoring the sacrifices and accomplishments of 
veterans of the Armed Forces.

SEC. 2849. MODIFICATIONS TO LAND CONVEYANCE AUTHORITY, ENGINEERING 
                    PROVING GROUND, FORT BELVOIR, VIRGINIA.

    (a) Construction of Security Barrier.--Section 2836 of the 
Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat. 1314), as amended 
by section 2846 of the Military Construction Authorization Act 
for Fiscal Year 2006 (division B of Public Law 109-163; 119 
Stat. 3527), is further amended--
            (1) in subsection (b)(4), by striking 
        ``$3,880,000'' and inserting ``$4,880,000''; and
            (2) in subsection (d)--
                    (A) in paragraph (1), by inserting after 
                ``Virginia,'' the following: ``and the 
                construction of a security barrier, as 
                applicable,''; and
                    (B) in paragraph (2), by inserting after 
                ``Building 191'' the following: ``and the 
                construction of a security barrier, as 
                applicable''.
    (b) Authority to Enter Into Alternative Agreement for 
Design and Construction of Fairfax County Parkway Portion.--
Such section 2836 is further amended--
            (1) in subsection (b)--
                    (A) by amending paragraph (1) to read as 
                follows:
            ``(1) except as provided in subsection (f), design 
        and construct, at its expense and for public benefit, 
        the portion of the Fairfax County Parkway through the 
        Engineer Proving Ground (in this section referred to as 
        the `Parkway portion');''; and
                    (B) in paragraph (2), by inserting after 
                ``C514'' the following: ``, RW-214 (in this 
                section referred to as `Parkway project')'';
            (2) by redesignating subsection (f) as subsection 
        (g);
            (3) by inserting after subsection (e) the following 
        new subsection:
    ``(f) Alternate Agreement for Construction of Road.--(1) 
The Secretary of the Army may, in connection with the 
conveyance authorized under subsection (a), enter into an 
agreement with the Commonwealth providing for the design and 
construction by the Department of the Army or the United States 
Department of Transportation of the Parkway portion and other 
portions of the Fairfax County Parkway off the Engineer Proving 
Ground that are necessary to complete the Parkway project (in 
this subsection referred to as the `alternate agreement') if 
the Secretary determines that the alternate agreement is in the 
best interests of the United States to support the permanent 
relocation of additional military and civilian personnel at 
Fort Belvoir pursuant to decisions made as part of the 2005 
round of defense base closure and realignment under 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).
    ``(2) If the Secretary of Defense certifies that the 
Parkway portion is important to the national defense pursuant 
to section 210 of title 23, United States Code, the Secretary 
of the Army may enter into an agreement with the Secretary of 
Transportation to carry out the alternate agreement under the 
Defense Access Road Program.
    ``(3) The Commonwealth shall pay to the Secretary of the 
Army the costs of the design and construction of the Parkway 
portion and any other portions of the Fairfax County Parkway 
off the Engineer Proving Ground designed and constructed under 
the alternate agreement. The Secretary shall apply such payment 
to the design and construction provided for in the alternate 
agreement.
    ``(4) Using the authorities available to the Secretary 
under chapter 160 of title 10, United States Code, and funds 
deposited in the Environmental Restoration Account, Army, 
established by section 2703(a) of such title and appropriated 
for this purpose, the Secretary may carry out environmental 
restoration activities on real property under the jurisdiction 
of the Secretary in support of the construction of the Parkway 
portion.
    ``(5) The alternate agreement shall be subject to the 
following conditions:
            ``(A) The Commonwealth shall acquire and retain all 
        necessary right, title, and interest in any real 
        property not under the jurisdiction of the Secretary 
        that is necessary for construction of the Parkway 
        portion or for construction of any other portions of 
        the Fairfax County Parkway off the Engineer Proving 
        Ground that will be constructed under the alternate 
        agreement, and shall grant to the United States all 
        necessary access to and use of such property for such 
        construction.
            ``(B) The Secretary shall receive consideration 
        from the Commonwealth as required in subsections 
        (b)(2), (b)(3), and (b)(4) and shall carry out the 
        acceptance and disposition of funds in accordance with 
        subsection (d).
    ``(6) The design of the Parkway portion under the alternate 
agreement shall be subject to the approval of the Secretary and 
the Commonwealth in accordance with the Virginia Department of 
Transportation Approved Plan, dated June 15, 2004, Project 
#R000-029-249, PE-108, C-514, RW-214. For each phase of the 
design and construction of the Parkway portion under the 
alternate agreement, the Secretary may--
            ``(A) accept funds from the Commonwealth; or
            ``(B) transfer funds received from the Commonwealth 
        to the United States Department of Transportation.
    ``(7) Upon completion of the construction of the Parkway 
portion and any other portions of the Fairfax County Parkway 
off the Engineer Proving Ground required under the alternate 
agreement, the Secretary shall carry out the conveyance under 
subsection (a). As a condition of such conveyance carried out 
under the alternate agreement, the Secretary shall receive a 
written commitment, in a form satisfactory to the Secretary, 
that the Commonwealth agrees to accept all responsibility for 
the costs of operation and maintenance of the Parkway portion 
upon conveyance to the Commonwealth of such real property.''; 
and
            (4) in subsection (g), as redesignated by paragraph 
        (2), by inserting ``or the alternate agreement 
        authorized under subsection (f)'' after ``conveyance 
        under subsection (a)''.

SEC. 2850. LAND CONVEYANCE, RADFORD ARMY AMMUNITION PLANT, NEW RIVER 
                    UNIT, VIRGINIA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Commonwealth of Virginia 
on behalf of the Virginia Department of Veterans Services (in 
this section referred to as the ``Commonwealth'') all right, 
title, and interest of the United States in and to a parcel of 
real property, including any improvements thereon, consisting 
of approximately 85 acres at the Radford Army Ammunition Plant, 
New River Unit, Virginia, for the purpose of permitting the 
Commonwealth to establish on the property a cemetery operated 
by the Commonwealth for veterans of the Armed Forces.
    (b) Reversionary Interest.--If the Secretary determines at 
any time that the real 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 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.
    (c) Payment of Costs of Conveyance.--
            (1) Payment required.--The Secretary shall require 
        the Commonwealth to cover costs to be incurred by the 
        Secretary, or to reimburse the Secretary for costs 
        incurred by the Secretary, to carry out the conveyance 
        under subsection (a), including survey costs, costs 
        related to environmental documentation, and other 
        administrative costs related to the conveyance. If 
        amounts are collected from the Commonwealth in advance 
        of the Secretary incurring the actual costs, and the 
        amount collected exceeds the costs actually incurred by 
        the Secretary to carry out the conveyance, the 
        Secretary shall refund the excess amount to the 
        Commonwealth.
            (2) Treatment of amounts received.--Amounts 
        received as reimbursement under paragraph (1) 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 Real 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.

                      Subtitle E--Energy Security

SEC. 2851. CONSOLIDATION AND ENHANCEMENT OF LAWS TO IMPROVE DEPARTMENT 
                    OF DEFENSE ENERGY EFFICIENCY AND CONSERVATION.

    (a) Creation of New Chapter.--
            (1) Reorganization of section 2865 of title 10.--
        Title 10, United States Code, is amended by inserting 
        after chapter 172 the following new chapter:

                     ``CHAPTER 173--ENERGY SECURITY

``Subchapter
``I. Energy Security Activities................................... 2911 
``II. Energy-Related Procurement.................................. 2922 
``III. General Provisions......................................... 2925 

               ``SUBCHAPTER I--ENERGY SECURITY ACTIVITIES

``Sec.
``2911. Energy performance goals and plan for Department of Defense.
``2912. Availability and use of energy cost savings.
``2913. Energy savings contracts and activities.
``2914. Energy conservation construction projects.
``2915. New construction: use of renewable forms of energy and energy 
          efficient products.
``2916. Sale of electricity from alternate energy and cogeneration 
          production facilities.
``2917. Development of geothermal energy on military lands.
``2918. Fuel sources for heating systems; prohibition on converting 
          certain heating facilities.

``Sec. 2911. Energy performance goals and plan for Department of 
                    Defense

    ``(a) Energy Performance Goals.--(1) The Secretary of 
Defense shall submit to the congressional defense committees 
the energy performance goals for the Department of Defense 
regarding transportation systems, support systems, utilities, 
and infrastructure and facilities.
    ``(2) The energy performance goals shall be submitted 
annually not later than the date on which the President submits 
to Congress the budget for the next fiscal year under section 
1105 of title 31 and cover that fiscal year as well as the next 
five, l0, and 20 years. The Secretary shall identify changes to 
the energy performance goals since the previous submission.
    ``(b) Energy Performance Plan.--The Secretary of Defense 
shall develop, and update as necessary, a comprehensive plan to 
help achieve the energy performance goals for the Department of 
Defense.
    ``(c) Special Considerations.--For the purpose of 
developing and implementing the energy performance goals and 
energy performance plan, the Secretary of Defense shall 
consider at a minimum the following:
            ``(1) Opportunities to reduce the current rate of 
        consumption of energy.
            ``(2) Opportunities to reduce the future demand and 
        the requirements for the use of energy.
            ``(3) Opportunities to implement conservation 
        measures to improve the efficient use of energy.
            ``(4) Opportunities to pursue alternative energy 
        initiatives, including the use of alternative fuels in 
        military vehicles and equipment.
            ``(5) Cost effectiveness, cost savings, and net 
        present value of alternatives.
            ``(6) The value of diversification of types and 
        sources of energy used.
            ``(7) The value of economies-of-scale associated 
        with fewer energy types used.
            ``(8) The value of the use of renewable energy 
        sources.
            ``(9) The potential for an action to serve as an 
        incentive for members of the armed forces and civilian 
        personnel to reduce energy consumption or adopt an 
        improved energy performance measure.
    ``(d) Selection of Energy Conservation Measures.--(1) For 
the purpose of implementing the energy performance plan, the 
Secretary of Defense shall provide that the selection of energy 
conservation measures, including energy efficient maintenance, 
shall be limited to those measures that--
            ``(A) are readily available;
            ``(B) demonstrate an economic return on the 
        investment;
            ``(C) are consistent with the energy performance 
        goals and energy performance plan for the Department; 
        and
            ``(D) are supported by the special considerations 
        specified in subsection (c).
    ``(2) In this subsection, the term `energy efficient 
maintenance' includes--
            ``(A) the repair of military vehicles, equipment, 
        or facility and infrastructure systems, such as 
        lighting, heating, or cooling equipment or systems, or 
        industrial processes, by replacement with technology 
        that--
                    ``(i) will achieve energy savings over the 
                life-cycle of the equipment or system being 
                repaired; and
                    ``(ii) will meet the same end needs as the 
                equipment or system being repaired; and
            ``(B) improvements in an operation or maintenance 
        process, such as improved training or improved 
        controls, that result in energy savings.

``Sec. 2912. Availability and use of energy cost savings

    ``(a) Availability.--An amount of the funds appropriated to 
the Department of Defense for a fiscal year that is equal to 
the amount of energy cost savings realized by the Department, 
including financial benefits resulting from shared energy 
savings contracts entered into under section 2913 of this 
title, shall remain available for obligation under subsection 
(b) until expended, without additional authorization or 
appropriation.
    ``(b) Use.--The Secretary of Defense shall provide that the 
amount that remains available for obligation under subsection 
(a) and the funds made available under section 2916(b)(2) of 
this title shall be used as follows:
            ``(1) One-half of the amount shall be used for the 
        implementation of additional energy conservation 
        measures at buildings, facilities, or installations of 
        the Department of Defense or related to vehicles and 
        equipment of the Department, which are designated, in 
        accordance with regulations prescribed by the Secretary 
        of Defense, by the head of the department, agency, or 
        instrumentality that realized the savings referred to 
        in subsection (a).
            ``(2) One-half of the amount shall be used at the 
        installation at which the savings were realized, as 
        determined by the commanding officer of such 
        installation consistent with applicable law and 
        regulations, for--
                    ``(A) improvements to existing military 
                family housing units;
                    ``(B) any unspecified minor construction 
                project that will enhance the quality of life 
                of personnel; or
                    ``(C) any morale, welfare, or recreation 
                facility or service.
    ``(c) Treatment of Certain Financial Incentives.--Financial 
incentives received from gas or electric utilities under 
section 2913 of this title shall be credited to an 
appropriation designated by the Secretary of Defense. Amounts 
so credited shall be merged with the appropriation to which 
credited and shall be available for the same purposes and the 
same period as the appropriation with which merged.
    ``(d) Congressional Notification.--The Secretary of Defense 
shall include in the budget material submitted to Congress in 
connection with the submission of the budget for a fiscal year 
pursuant to section 1105 of title 31 a separate statement of 
the amounts available for obligation under this section in that 
fiscal year.

``Sec. 2913. Energy savings contracts and activities

    ``(a) Shared Energy Savings Contracts.--(1) The Secretary 
of Defense shall develop a simplified method of contracting for 
shared energy savings contract services that will accelerate 
the use of these contracts with respect to military 
installations and will reduce the administrative effort and 
cost on the part of the Department of Defense as well as the 
private sector.
    ``(2) In carrying out paragraph (1), the Secretary of 
Defense may--
            ``(A) request statements of qualifications (as 
        prescribed by the Secretary of Defense), including 
        financial and performance information, from firms 
        engaged in providing shared energy savings contracting;
            ``(B) designate from the statements received, with 
        an update at least annually, those firms that are 
        presumptively qualified to provide shared energy 
        savings services;
            ``(C) select at least three firms from the 
        qualifying list to conduct discussions concerning a 
        particular proposed project, including requesting a 
        technical and price proposal from such selected firms 
        for such project; and
            ``(D) select from such firms the most qualified 
        firm to provide shared energy savings services pursuant 
        to a contractual arrangement that the Secretary 
        determines is fair and reasonable, taking into account 
        the estimated value of the services to be rendered and 
        the scope and nature of the project.
    ``(3) In carrying out paragraph (1), the Secretary may also 
provide for the direct negotiation, by departments, agencies, 
and instrumentalities of the Department of Defense, of 
contracts with shared energy savings contractors that have been 
selected competitively and approved by any gas or electric 
utility serving the department, agency, or instrumentality 
concerned.
    ``(b) Participation in Gas or Electric Utility Programs.--
The Secretary of Defense shall permit and encourage each 
military department, Defense Agency, and other instrumentality 
of the Department of Defense to participate in programs 
conducted by any gas or electric utility for the management of 
energy demand or for energy conservation.
    ``(c) Acceptance of Financial Incentive, Goods, or 
Services.--The Secretary of Defense may authorize any military 
installation to accept any financial incentive, goods, or 
services generally available from a gas or electric utility, to 
adopt technologies and practices that the Secretary determines 
are in the interests of the United States and consistent with 
the energy performance goals for the Department of Defense.
    ``(d) Agreements With Gas or Electric Utilities.--(1) The 
Secretary of Defense may authorize the Secretary of a military 
department having jurisdiction over a military installation to 
enter into agreements with gas or electric utilities to design 
and implement cost-effective demand and conservation incentive 
programs (including energy management services, facilities 
alterations, and the installation and maintenance of energy 
saving devices and technologies by the utilities) to address 
the requirements and circumstances of the installation.
    ``(2) If an agreement under this subsection provides for a 
utility to advance financing costs for the design or 
implementation of a program referred to in that paragraph to be 
repaid by the United States, the cost of such advance may be 
recovered by the utility under terms no less favorable than 
those applicable to its most favored customer.
    ``(3) Subject to the availability of appropriations, 
repayment of costs advanced under paragraph (2) shall be made 
from funds available to a military department for the purchase 
of utility services.
    ``(4) An agreement under this subsection shall provide that 
title to any energy-saving device or technology installed at a 
military installation pursuant to the agreement vest in the 
United States. Such title may vest at such time during the term 
of the agreement, or upon expiration of the agreement, as 
determined to be in the best interests of the United States.

``Sec. 2914. Energy conservation construction projects

    ``(a) Projects Authorized.--The Secretary of Defense may 
carry out a military construction project for energy 
conservation, not previously authorized, using funds 
appropriated or otherwise made available for that purpose.
    ``(b) Congressional Notification.--When a decision is made 
to carry out a project under this section, the Secretary of 
Defense shall notify in writing the appropriate committees of 
Congress of that decision. The project may then be carried out 
only after the end of the 21-day period beginning on the date 
the notification is received by such committees or, if earlier, 
the end of the 14-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium 
pursuant to section 480 of this title.

              ``SUBCHAPTER II--ENERGY-RELATED PROCUREMENT

``Sec.
``2922. Liquid fuels and natural gas: contracts for storage, handling, 
          or distribution.
``2922a. Contracts for energy or fuel for military installations.
``2922b. Procurement of energy systems using renewable forms of energy.
``2922c. Procurement of gasohol as motor vehicle fuel.
``2922d. Procurement of fuel derived from coal, oil shale, and tar 
          sands.
``2922e. Acquisition of certain fuel sources: authority to waive 
          contract procedures; acquisition by exchange; sales authority.
``2922f. Preference for energy efficient electric equipment.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

``Sec.
``2925. Annual report.

``Sec. 2925. Annual report

    ``(a) Report Required.--As part of the annual submission of 
the energy performance goals for the Department of Defense 
under section 2911 of this title, the Secretary of Defense 
shall submit a report containing the following:
            ``(1) A description of the progress made to achieve 
        the goals of the Energy Policy Act of 2005 (Public Law 
        109-58) and the energy performance goals for the 
        Department of Defense during the preceding fiscal year.
            ``(2) A description of the actions taken to 
        implement the energy performance plan in effect under 
        section 2911 of this title and carry out this chapter 
        during the preceding fiscal year.
            ``(3) A description of the energy savings realized 
        from such actions.
            ``(4) An estimate of the types and quantities of 
        energy consumed by the Department of Defense and 
        members of the armed forces and civilian personnel 
        residing or working on military installations during 
        the preceding fiscal year, including a breakdown of 
        energy consumption by user groups and types of energy, 
        energy costs, and the quantities of renewable energy 
        produced or procured by the Department.
            ``(5) A description of the types and amount of 
        financial incentives received under section 2913 of 
        this title during the preceding fiscal year and the 
        appropriation account or accounts to which the 
        incentives were credited.
    ``(b) Initial Report.--In the first report required under 
this section, the Secretary of Defense shall include the 
following:
            ``(1) Such recommendations for changes to this 
        chapter as the Secretary considers appropriate to 
        improve energy performance.
            ``(2) A description of how responsibility over 
        energy performance is distributed within the Department 
        of Defense and a discussion on whether such 
        responsibilities should be consolidated within a single 
        entity.
            ``(3) A discussion of the manner in which the 
        Secretary intends to balance the considerations 
        specified in subsection (c) of section 2911 of this 
        title in developing and implementing the energy 
        performance goals and energy performance plan.
            ``(4) A discussion of the extent to which non-
        direct energy costs are considered in making research 
        and development, procurement, and construction 
        decisions.''.
            (2) Conforming repeal.--Section 2865 of title 10, 
        United States Code, is repealed.
    (b) Inclusion of Additional Energy-Related Sections.--
            (1) Transfer and redesignation of chapter 159 and 
        169 provisions.--Sections 2857, 2867, 2689, and 2690 of 
        title 10, United States Code, are--
                    (A) transferred to chapter 173 of such 
                title, as added by subsection (a)(1);
                    (B) inserted after section 2914; and
                    (C) redesignated as sections 2915, 2916, 
                2917, and 2918, respectively.
            (2) Transfer and redesignation of chapter 141 
        provisions.--Sections 2388, 2394, 2394a, 2398, 2398a, 
        2404, and 2410c of such title are--
                    (A) transferred to chapter 173 of such 
                title, as added by subsection (a)(1);
                    (B) inserted after the table of sections of 
                subchapter II of such chapter; and
                    (C) redesignated as sections 2922, 2922a, 
                2922b, 2922c, 2922d, 2922e, and 2922f, 
                respectively.
            (3) Conforming amendments.--Chapter 173 of such 
        title, as added by subsection (a)(1), is amended--
                    (A) in section 2915 (former section 2857), 
                as transferred and redesignated by paragraph 
                (1)--
                            (i) in subsection (a), by striking 
                        ``would be practical and economically 
                        feasible'' and inserting ``is 
                        consistent with the energy performance 
                        goals and energy performance plan for 
                        the Department of Defense developed 
                        under section 2911 of this title and 
                        supported by the special considerations 
                        specified in subsection (c) of such 
                        section''; and
                            (ii) in subsection (b), by striking 
                        ``in those cases in which use of such 
                        forms of energy has the potential for 
                        reduced energy costs'';
                    (B) in subsection (b)(2) of section 2916 
                (former section 2867), as transferred and 
                redesignated by paragraph (1), by striking 
                ``section 2865(a) of this title'' and inserting 
                ``section 2911(b) of this title'';
                    (C) in subsection (a)(1) of section 2922a 
                (former section 2394), as transferred and 
                redesignated by paragraph (2), by striking 
                ``section 2689 of this title'' and inserting 
                ``section 2917 of this title'';
                    (D) in section 2922b (former section 
                2394a), as transferred and redesignated by 
                paragraph (2)--
                            (i) in subsection (a)--
                                    (I) by striking ``possible 
                                and will be cost effective, 
                                reliable, and otherwise 
                                suited'' and inserting 
                                ``possible, suited''; and
                                    (II) by striking ``his 
                                jurisdiction'' and inserting 
                                ``the jurisdiction of the 
                                Secretary, consistent with the 
                                energy performance goals and 
                                energy performance plan for the 
                                Department of Defense developed 
                                under section 2911 of this 
                                title, and supported by the 
                                special considerations 
                                specified in subsection (c) of 
                                such section'';
                            (ii) in subsection (b)--
                                    (I) by striking ``cost 
                                effective and''; and
                                    (II) by striking ``section 
                                2857 of this title'' and 
                                inserting ``section 2915 of 
                                this title''; and
                            (iii) by striking subsection (c); 
                        and
                    (E) in subsection (a) of section 2922f 
                (former section 2410c), as transferred and 
                redesignated by paragraph (2)--
                            (i) by striking ``When cost 
                        effective, in'' and inserting ``In''; 
                        and
                            (ii) by striking ``procurement, as 
                        the case may be.'' and inserting 
                        ``procurement, if providing such a 
                        preference is consistent with the 
                        energy performance goals and energy 
                        performance plan for the Department of 
                        Defense developed under section 2911 of 
                        this title and supported by the special 
                        considerations specified in subsection 
                        (c) of such section.''.
            (4) Applicability of chapter 169 definitions.--
        Section 2801(c) of such title is amended by inserting 
        ``and chapter 173 of this title'' after ``chapter'' in 
        the matter preceding paragraph (1).
    (c) Clerical Amendments.--
            (1) Reference to new chapter.--The tables of 
        chapters at the beginning of subtitle A of title 10, 
        United States Code, and at the beginning of part IV of 
        such subtitle, are each amended by inserting after the 
        item relating to chapter 172 the following new item:

``173. Energy Security...........................................2911''.

            (2) Chapter 141.--The table of sections at the 
        beginning of chapter 141 of such title is amended by 
        striking the items relating to sections 2388, 2394, 
        2394a, 2398, 2398a, 2404, and 2410c.
            (3) Chapter 159.--The table of sections at the 
        beginning of chapter 159 of such title is amended by 
        striking the items relating to sections 2689 and 2690.
            (4) Chapter 169.--The table of sections at the 
        beginning of subchapter III of chapter 169 of such 
        title is amended by striking the items relating to 
        sections 2857, 2865, and 2867.
    (d) Conforming Amendment to Water Conservation Authority.--
Subsection (b) of section 2866 of title 10, United States Code, 
is amended to read as follows:
    ``(b) Use of Financial Incentives and Water Cost Savings.--
(1) Financial incentives received from utilities for management 
of water demand or water conservation under subsection (a)(2) 
shall be credited to an appropriation designated by the 
Secretary of Defense. Amounts so credited shall be merged with 
the appropriation to which credited and shall be available for 
the same purposes and the same period as the appropriation with 
which merged.
    ``(2) Water cost savings realized under subsection (a)(3) 
shall be used as follows:
            ``(A) One-half of the amount shall be used for 
        water conservation activities at such buildings, 
        facilities, or installations of the Department of 
        Defense as may be designated (in accordance with 
        regulations prescribed by the Secretary of Defense) by 
        the head of the department, agency, or instrumentality 
        that realized the water cost savings.
            ``(B) One-half of the amount shall be used at the 
        installation at which the savings were realized, as 
        determined by the commanding officer of such 
        installation consistent with applicable law and 
        regulations, for--
                    ``(i) improvements to existing military 
                family housing units;
                    ``(ii) any unspecified minor construction 
                project that will enhance the quality of life 
                of personnel; or
                    ``(iii) any morale, welfare, or recreation 
                facility or service.
    ``(3) The Secretary of Defense shall include in the budget 
material submitted to Congress in connection with the 
submission of the budget for a fiscal year pursuant to section 
1105 of title 31 a separate statement of the amounts available 
for obligation under this subsection in that fiscal year.''.

SEC. 2852. DEPARTMENT OF DEFENSE GOAL REGARDING USE OF RENEWABLE ENERGY 
                    TO MEET ELECTRICITY NEEDS.

    Section 2911 of title 10, United States Code, as added by 
section 2851 of this Act, is amended by adding at the end the 
following new subsection:
    ``(e) Goal Regarding Use of Renewable Energy To Meet 
Electricity Needs.--It shall be the goal of the Department of 
Defense--
            ``(1) to produce or procure not less than 25 
        percent of the total quantity of electric energy it 
        consumes within its facilities and in its activities 
        during fiscal year 2025 and each fiscal year thereafter 
        from renewable energy sources (as defined in section 
        203(b) of the Energy Policy Act of 2005 (42 U.S.C. 
        15852(b))); and
            ``(2) to produce or procure electric energy from 
        renewable energy sources whenever the use of such 
        renewable energy sources is consistent with the energy 
        performance goals and energy performance plan for the 
        Department and supported by the special considerations 
        specified in subsection (c).''.

SEC. 2853. CONGRESSIONAL NOTIFICATION OF CANCELLATION CEILING FOR 
                    DEPARTMENT OF DEFENSE ENERGY SAVINGS PERFORMANCE 
                    CONTRACTS.

    Section 2913 of title 10, United States Code, as added by 
section 2851 of this Act, is amended by adding at the end the 
following new subsection:
    ``(e) Congressional Notification of Cancellation Ceiling 
for Energy Savings Performance Contracts.--When a decision is 
made to award an energy savings performance contract that 
contains a clause setting forth a cancellation ceiling in 
excess of $7,000,000, the Secretary of Defense shall submit to 
the appropriate committees of Congress written notification of 
the proposed contract and of the proposed cancellation ceiling 
for the contract. The notification shall include the 
justification for the proposed cancellation ceiling. The 
contract may then be awarded only after the end of the 30-day 
period beginning on the date the notification is received by 
such committees or, if earlier, the end of the 15-day period 
beginning on the date on which a copy of the notification is 
provided in an electronic medium pursuant to section 480 of 
this title.''.

SEC. 2854. USE OF ENERGY EFFICIENCY PRODUCTS IN NEW CONSTRUCTION.

    (a) Use of Energy Efficient Products.--Section 2915 of 
title 10, United States Code, as transferred, redesignated, and 
amended by section 2851(b) of this Act, is amended by adding at 
the end the following new subsection:
    ``(e) Use of Energy Efficiency Products in New 
Construction.--(1) The Secretary of Defense shall ensure, to 
the maximum extent practicable, that energy efficient products 
meeting the requirements of the Department of Defense are used 
in new facility construction by or for the Department carried 
out under chapter 169 of this title if such products are 
readily available and their use is consistent with the energy 
performance goals and energy performance plan for the 
Department developed under section 2911 of this title and 
supported by the special considerations specified in subsection 
(c) of such section.
    ``(2) In determining the energy efficiency of products, the 
Secretary shall consider products that--
            ``(A) meet or exceed Energy Star specifications; or
            ``(B) are listed on the Federal Energy Management 
        Program Product Energy Efficiency Recommendations 
        product list of the Department of Energy.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) by striking the section heading and inserting 
        the following:

``Sec. 2915. New construction: use of renewable forms of energy and 
                    energy efficient products'';

            (2) in subsection (a), by inserting ``Use of 
        Renewable Forms of Energy Encouraged.--'' after 
        ``(a)'';
            (3) in subsection (b), by inserting ``Consideration 
        During Design Phase of Projects.--'' after ``(b)'';
            (4) in subsection (c), by inserting ``Determination 
        of Cost Effectiveness.--'' after ``(c)''; and
            (5) in subsection (d), by inserting ``Exception to 
        Square Feet and Cost Per Square Foot Limitations.--'' 
        after ``(d)''.

                       Subtitle F--Other Matters

SEC. 2861. AVAILABILITY OF RESEARCH AND TECHNICAL ASSISTANCE UNDER 
                    DEFENSE ECONOMIC ADJUSTMENT PROGRAM.

    Section 2391 of title 10, United States Code, is amended by 
inserting after subsection (b) the following new subsection:
    ``(c) Research and Technical Assistance.--The Secretary of 
Defense may make grants to, or conclude cooperative agreements 
or enter into contracts with, another Federal agency, a State 
or local government, or any private entity to conduct research 
and provide technical assistance in support of activities under 
this section or Executive Order 12788 (57 Fed. Reg. 2213), as 
amended by section 33 of Executive Order 13286 (68 Fed. Reg. 
10625) and Executive Order 13378 (70 Fed. Reg. 28413).''.

SEC. 2862. AVAILABILITY OF COMMUNITY PLANNING ASSISTANCE RELATING TO 
                    ENCROACHMENT OF CIVILIAN COMMUNITIES ON MILITARY 
                    FACILITIES USED FOR TRAINING BY THE ARMED FORCES.

    Section 2391(d)(1) of title 10, United States Code, is 
amended by adding at the end the following new sentence: ``For 
purposes of subsection (b)(1)(D), the term `military 
installation' includes a military facility owned and operated 
by any of the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, American Samoa, Guam, or the 
Virgin Islands, even though the facility is not under the 
jurisdiction of the Department of Defense, if the Secretary of 
Defense determines that the military facility is subject to 
significant use for training by the armed forces.''.

SEC. 2863. PROHIBITIONS AGAINST MAKING CERTAIN MILITARY AIRFIELDS OR 
                    FACILITIES AVAILABLE FOR USE BY CIVIL AIRCRAFT.

    (a) Prohibitions.--With respect to each military 
installation specified in subsection (b), the Secretary of 
Defense and the Secretary of the Navy may not enter into an 
agreement, or authorize any other person to enter into an 
agreement, that would--
            (1) authorize civil aircraft to regularly use an 
        airfield or any other property at the installation; or
            (2) convey any real property at the installation, 
        including any airfield at the installation, for the 
        purpose of permitting the use of the property by civil 
        aircraft.
    (b) Covered Installations.--The prohibitions in subsection 
(a) apply with respect to the following military installations:
            (1) Marine Corps Air Station, Camp Pendleton, 
        California.
            (2) Marine Corps Air Station, Miramar, California.
            (3) Marine Corps Base, Camp Pendleton, California.
            (4) Naval Air Station, North Island, California.
    (c) Repeal of Existing Limited Prohibition.--Section 2894 
of the Military Construction Authorization Act for Fiscal Year 
1996 (division B of Public Law 104-106; 110 Stat. 592) is 
repealed.

SEC. 2864. MODIFICATION OF CERTAIN TRANSPORTATION PROJECTS.

    (a) High Priority Projects.--The table in section 1702 of 
the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (Public Law 109-59; 119 Stat. 
1256) is amended--
            (1) in the item designated as project 4333 (119 
        Stat. 1422), by striking ``Plan and construct, land 
        acquisition, Detroit West Riverfront Greenway'' in the 
        project description column and inserting ``Detroit 
        Riverfront Conservancy, Riverfront walkway, greenway, 
        and adjacent land planning, construction, and land 
        acquisition from Gabriel Richard Park at the Douglas 
        MacArthur Bridge to Riverside Park at the Ambassador 
        Bridge, Detroit''; and
            (2) in the item designated as project 4651 (119 
        Stat. 1434), by striking ``Grading, paving'' and all 
        that follows through ``Airport'' in the project 
        description column and inserting ``Grading, paving, 
        roads, and the transfer of rail-to-truck for the 
        intermodal facility at Rickenbacker Airport, Columbus, 
        Ohio''.
    (b) Transportation Improvement Project.--The table in 
section 1934(c) of such Act (119 Stat. 1485) is amended in the 
item designated as project 196 (119 Stat. 1495) by striking 
``Detroit Riverfront Conservancy'' and all that follows through 
``Detroit'' in the project description column and inserting 
``Detroit Riverfront Conservancy, Riverfront walkway, greenway, 
and adjacent land planning, construction, and land acquisition 
from Gabriel Richard Park at the Douglas MacArthur Bridge to 
Riverside Park at the Ambassador Bridge, Detroit''.

SEC. 2865. AVAILABILITY OF FUNDS FOR SOUTH COUNTY COMMUTER RAIL 
                    PROJECT, PROVIDENCE, RHODE ISLAND.

    Funds available for the South County Commuter Rail project, 
Providence, Rhode Island, authorized by paragraphs (34) and 
(35) of section 3043(d) of the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (Public 
Law 109-59; 119 Stat. 1650) shall be available for the purchase 
of commuter rail equipment for the South County Commuter Rail 
project upon the receipt by the Rhode Island Department of 
Transportation of an approved environmental assessment for the 
South County Commuter Rail project.

SEC. 2866. FOX POINT HURRICANE BARRIER, PROVIDENCE, RHODE ISLAND.

    (a) Assumption of Responsibility for Barrier.--Not later 
than two years after the date of the enactment of this Act, the 
Secretary of the Army, acting through the Chief of Engineers, 
shall assume responsibility for the annual operation and 
maintenance of the Fox Point Hurricane Barrier in Providence, 
Rhode Island.
    (b) Identification and Conveyance of Required Structures.--
The City of Providence, Rhode Island, in coordination with the 
Secretary, shall identify any land and structures required for 
the continued operation and maintenance, repair, replacement, 
rehabilitation, and structural integrity of the Fox Point 
Hurricane Barrier. The City shall convey to the Secretary, by 
quitclaim deed and without consideration, all right, title, and 
interest of the City in and to the land and structures so 
identified.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary such funds as are necessary 
for each fiscal year for the operation and maintenance, 
including repair, replacement, and rehabilitation, of the Fox 
Point Hurricane Barrier.

SEC. 2867. FEDERAL FUNDING FOR FIXED GUIDEWAY PROJECTS.

    The Federal Transit Administration's Dear Colleague letter 
dated April 29, 2005 (C-05-05), which requires fixed guideway 
projects to achieve a ``medium'' cost-effectiveness rating for 
the Federal Transit Administration to recommend such projects 
for funding, shall not apply to the Northstar Corridor Commuter 
Rail Project in Minnesota.

SEC. 2868. FEASIBILITY STUDY REGARDING USE OF GENERAL SERVICES 
                    ADMINISTRATION PROPERTY FOR FORT BELVOIR, VIRGINIA, 
                    REALIGNMENT.

    (a) Feasibility Study.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the Army 
shall submit to Congress a report evaluating the costs, 
benefits, feasibility, and suitability of locating support 
functions for Fort Belvoir and the Engineering Proving Grounds, 
Virginia, on property currently occupied by General Services 
Administration warehouses in Springfield, Virginia.
    (b) Consultation.--The Secretary of the Army shall carry 
out this section in consultation with the Administrator of 
General Services.

 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 cleanup.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Plan for transformation of National Nuclear Security 
          Administration nuclear weapons complex.
Sec. 3112. Extension of Facilities and Infrastructure Recapitalization 
          Program.
Sec. 3113. Utilization of contributions to Global Threat Reduction 
          Initiative.
Sec. 3114. Utilization of contributions to Second Line of Defense 
          program.
Sec. 3115. Two-year extension of authority for appointment of certain 
          scientific, engineering, and technical personnel.
Sec. 3116. National Academy of Sciences study of quantification of 
          margins and uncertainty methodology for assessing and 
          certifying the safety and reliability of the nuclear 
          stockpile.
Sec. 3117. Consolidation of counterintelligence programs of Department 
          of Energy and National Nuclear Security Administration.
Sec. 3118. Notice-and-wait requirement applicable to certain third-party 
          financing arrangements.
Sec. 3119. Extension of deadline for transfer of lands to Los Alamos 
          County, New Mexico, and of lands in trust for the Pueblo of 
          San Ildefonso.
Sec. 3120. Limitations on availability of funds for Waste Treatment and 
          Immobilization Plant.
Sec. 3121. Report on Russian Surplus Fissile Materials Disposition 
          Program.
Sec. 3122. Limitation on availability of funds for construction of MOX 
          Fuel Fabrication Facility.
Sec. 3123. Education of future nuclear engineers.
Sec. 3124. Technical correction related to authorization of 
          appropriations for fiscal year 2006.

         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 2007 for the activities of the National Nuclear 
Security Administration in carrying out programs necessary for 
national security in the amount of $9,300,811,000, to be 
allocated as follows:
            (1) For weapons activities, $6,417,676,000.
            (2) For defense nuclear nonproliferation 
        activities, $1,701,426,000.
            (3) For naval reactors, $795,133,000.
            (4) For the Office of the Administrator for Nuclear 
        Security, $386,576,000.
    (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 the 
following new plant projects:
            (1) For weapons activities:
            Project 07-D-140, project engineering and design, 
        various locations, $4,977,000.
            Project 07-D-220, Radioactive Liquid Waste 
        Treatment Facility upgrade, Los Alamos National 
        Laboratory, Los Alamos, New Mexico, $14,828,000.
             Project 07-D-253, Technical Area 1 Heating Systems 
        Modernization, Sandia National Laboratories, 
        Albuquerque, New Mexico, $14,500,000.
            (2) For defense nuclear nonproliferation 
        activities:
            Project 07-SC-05, Physical Sciences Facility, 
        Pacific Northwest National Laboratory, Richland, 
        Washington, $4,220,000.
            (3) For naval reactors:
            Project 07-D-190, project engineering and design, 
        Materials Research Technology Complex, Bettis Atomic 
        Power Laboratory, West Mifflin, Pennsylvania, 
        $1,485,000.

SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2007 for defense 
environmental cleanup activities in carrying out programs 
necessary for national security in the amount of 
$5,435,312,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2007 for other defense 
activities in carrying out programs necessary for national 
security in the amount of $717,788,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2007 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 $358,080,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY 
                    ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

    (a) Plan Required.--Subtitle A of title XLII of the Atomic 
Energy Defense Act (division D of Public Law 107-314) is 
amended by inserting after section 4213 (50 U.S.C. 2533) the 
following new section:

``SEC. 4214. PLAN FOR TRANSFORMATION OF NATIONAL NUCLEAR SECURITY 
                    ADMINISTRATION NUCLEAR WEAPONS COMPLEX.

    ``(a) Plan Required.--The Secretary of Energy shall develop 
a plan to transform the nuclear weapons complex so as to 
achieve a responsive infrastructure by 2030. The plan shall be 
designed to accomplish the following objectives:
            ``(1) To maintain the safety, reliability, and 
        security of the United States nuclear weapons 
        stockpile.
            ``(2) To continue Stockpile Life Extension Programs 
        that the Nuclear Weapons Council considers necessary.
            ``(3) To prepare to produce replacement warheads 
        under the Reliable Replacement Warhead program at a 
        rate necessary to meet future stockpile requirements, 
        commencing with a first production unit in 2012 and 
        achieving steady-state production using modern 
        manufacturing processes by 2025.
            ``(4) To eliminate, within the nuclear weapons 
        complex, duplication of production capability except to 
        the extent required to ensure the safety, reliability, 
        and security of the stockpile.
            ``(5) To maintain the current philosophy within the 
        national security laboratories of peer review of 
        nuclear weapons designs while eliminating duplication 
        of laboratory capabilities except to the extent 
        required to ensure the safety, reliability, and 
        security of the stockpile.
            ``(6) To maintain the national security mission, 
        and in particular the science-based Stockpile 
        Stewardship Program, as the primary mission of the 
        national security laboratories while optimizing the 
        work-for-others activities of those laboratories to 
        support other national security objectives in fields 
        such as defense, intelligence, and homeland security.
            ``(7) To consolidate to the maximum extent 
        practicable, and to provide for the ultimate 
        disposition of, special nuclear material throughout the 
        nuclear weapons complex, with the ultimate goal of 
        eliminating Category I and II special nuclear material 
        from the national security laboratories no later than 
        March 1, 2012, so as to further reduce the footprint of 
        the nuclear weapons complex, reduce security costs, and 
        reduce transportation costs for special nuclear 
        material. This objective does not preclude the 
        retention of Category I and II special nuclear 
        materials at a national security laboratory if the 
        transformation plan required by this subsection 
        envisions a pit production capability (including 
        interim pit production) at a national security 
        laboratory.
            ``(8) To employ a risk-based approach to ensure 
        compliance with Design Basis Threat security 
        requirements.
            ``(9) To expeditiously dismantle inactive nuclear 
        weapons to reduce the size of the stockpile to the 
        lowest level required by the Nuclear Weapons Council.
            ``(10) To operate the nuclear weapons complex in a 
        more cost-effective manner.
    ``(b) Report.--Not later than February 1, 2007, the 
Secretary of Energy shall submit to the congressional defense 
committees a report on the transformation plan required by 
subsection (a). The report shall address each of the objectives 
required by subsection (c) and also include each of the 
following:
            ``(1) A comprehensive list of the capabilities, 
        facilities, and project staffing that the National 
        Nuclear Security Administration will need to have in 
        place at the nuclear weapons complex as of 2030 to meet 
        the requirements of the transformation plan.
            ``(2) A comprehensive list of the capabilities and 
        facilities that the National Nuclear Security 
        Administration currently has in place at the nuclear 
        weapons complex that will not be needed as of 2030 to 
        meet the requirements of the transformation plan.
            ``(3) A plan for implementing the transformation 
        plan, including a schedule with incremental milestones.
    ``(c) Consultation.--The Secretary of Energy shall develop 
the transformation plan required by subsection (a) in 
consultation with the Secretary of Defense and the Nuclear 
Weapons Council.
    ``(d) Definition.--In this section, 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).''.
    (b) Inclusion in Future-Years Nuclear Security Program.--
Section 3253 of the National Nuclear Security Administration 
Act (50 U.S.C. 2453) is amended in subsection (b) by adding at 
the end the following new paragraph:
            ``(5) A statement of proposed budget authority, 
        estimated expenditures, and proposed appropriations 
        necessary to support the programs required to implement 
        the plan to transform the nuclear weapons complex under 
        section 4214 of the Atomic Energy Defense Act, together 
        with a detailed description of how the funds identified 
        for each program element specified pursuant to 
        paragraph (1) in the budget for the Administration for 
        each fiscal year during that five-fiscal-year period 
        will help ensure that those programs are implemented. 
        The statement shall assume year-to-year funding 
        profiles that account for increases only for projected 
        inflation.''.

SEC. 3112. EXTENSION OF FACILITIES AND INFRASTRUCTURE RECAPITALIZATION 
                    PROGRAM.

    Section 3114 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 50 U.S.C. 2453 note), as 
amended by section 3113 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375; 118 Stat. 2160), is amended--
            (1) in subsection (a)(3)(F), by striking ``2011'' 
        and inserting ``2013''; and
            (2) in subsection (b), by striking ``2011'' and 
        inserting ``2013''.

SEC. 3113. UTILIZATION OF CONTRIBUTIONS TO GLOBAL THREAT REDUCTION 
                    INITIATIVE.

    Section 3132 of the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 2166; 50 U.S.C. 2569) is amended--
            (1) by redesignating subsection (f) as subsection 
        (g); and
            (2) by adding after subsection (e) the following 
        new subsection:
    ``(f) Participation by Other Governments and 
Organizations.--
            ``(1) In general.--The Secretary of Energy may, 
        with the concurrence of the Secretary of State, enter 
        into one or more agreements with any person (including 
        a foreign government, international organization, or 
        multinational entity) that the Secretary of Energy 
        considers appropriate under which the person 
        contributes funds for purposes of the programs 
        described in paragraph (2).
            ``(2) Programs covered.--The programs described in 
        this paragraph are the following international programs 
        within the Global Threat Reduction Initiative:
                    ``(A) The International Radiological Threat 
                Reduction program.
                    ``(B) The Emerging Threats and Gap 
                Materials program.
                    ``(C) The Reduced Enrichment for Research 
                and Test Reactors program.
                    ``(D) The Russian Research Reactor Fuel 
                Return program.
                    ``(E) The Global Research Reactor Security 
                program.
                    ``(F) The Kazakhstan Spent Fuel program.
            ``(3) Retention and use of amounts.--
        Notwithstanding section 3302 of title 31, United States 
        Code, the Secretary of Energy may retain and use 
        amounts contributed under an agreement under paragraph 
        (1) for purposes of the programs described in paragraph 
        (2). Amounts so contributed shall be retained in a 
        separate fund established in the Treasury for such 
        purposes and shall be available for use without further 
        appropriation and without fiscal year limitation.
            ``(4) Return of amounts not used within 5 years.--
        If an amount contributed under an agreement under 
        paragraph (1) is not used under this subsection within 
        5 years after it was contributed, the Secretary of 
        Energy shall return that amount to the person who 
        contributed it.
            ``(5) Notice to congressional defense committees.--
        Not later than 30 days after the receipt of an amount 
        contributed under paragraph (1), the Secretary of 
        Energy shall submit to the congressional defense 
        committees a notice specifying the purpose and value of 
        the contribution and identifying the person who 
        contributed it. The Secretary may not use the amount 
        until 15 days after the notice is submitted.
            ``(6) Annual report.--Not later than October 31 of 
        each year, the Secretary of Energy shall submit to the 
        congressional defense committees a report on the 
        receipt and use of amounts under this subsection during 
        the preceding fiscal year. Each report for a fiscal 
        year shall set forth--
                    ``(A) a statement of any amounts received 
                under this subsection, including, for each such 
                amount, the value of the contribution and the 
                person who contributed it;
                    ``(B) a statement of any amounts used under 
                this subsection, including, for each such 
                amount, the purposes for which the amount was 
                used; and
                    ``(C) a statement of the amounts retained 
                but not used under this subsection, including, 
                for each such amount, the purposes (if known) 
                for which the Secretary intends to use the 
                amount.
            ``(7) Expiration.--The authority to accept, retain, 
        and use contributions under this subsection expires on 
        December 31, 2013.''.

SEC. 3114. UTILIZATION OF CONTRIBUTIONS TO SECOND LINE OF DEFENSE 
                    PROGRAM.

    (a) In General.--The Secretary of Energy may, with the 
concurrence of the Secretary of State, enter into one or more 
agreements with any person (including a foreign government, 
international organization, or multinational entity) that the 
Secretary of Energy considers appropriate under which the 
person contributes funds for purposes of the Second Line of 
Defense program of the National Nuclear Security 
Administration.
    (b) Retention and Use of Amounts.--Notwithstanding section 
3302 of title 31, United States Code, the Secretary of Energy 
may retain and use amounts contributed under an agreement under 
subsection (a) for purposes of the Second Line of Defense 
program. Amounts so contributed shall be retained in a separate 
fund established in the Treasury for such purposes and shall be 
available for use without further appropriation and without 
fiscal year limitation.
    (c) Return of Amounts Not Used Within 5 Years.--If an 
amount contributed under an agreement under subsection (a) is 
not used under this section within 5 years after it was 
contributed, the Secretary of Energy shall return that amount 
to the person who contributed it.
    (d) Notice to Congressional Defense Committees.--Not later 
than 30 days after the receipt of an amount contributed under 
subsection (a), the Secretary of Energy shall submit to the 
congressional defense committees a notice specifying the 
purpose and value of the contribution and identifying the 
person who contributed it. The Secretary may not use the amount 
until 15 days after the notice is submitted.
    (e) Annual Report.--Not later than October 31 of each year, 
the Secretary of Energy shall submit to the congressional 
defense committees a report on the receipt and use of amounts 
under this section during the preceding fiscal year. Each 
report for a fiscal year shall set forth--
            (1) a statement of any amounts received under this 
        section, including, for each such amount, the value of 
        the contribution and the person who contributed it;
            (2) a statement of any amounts used under this 
        section, including, for each such amount, the purposes 
        for which the amount was used; and
            (3) a statement of the amounts retained but not 
        used under this section, including, for each such 
        amount, the purposes (if known) for which the Secretary 
        intends to use the amount.
    (f) Expiration.--The authority to accept, retain, and use 
contributions under this section expires on December 31, 2013.

SEC. 3115. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
                    SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 4601(c)(1) of the Atomic Energy Defense Act (50 
U.S.C. 2701(c)(1)) is amended by striking ``September 30, 
2006'' and inserting ``September 30, 2008''.

SEC. 3116. NATIONAL ACADEMY OF SCIENCES STUDY OF QUANTIFICATION OF 
                    MARGINS AND UNCERTAINTY METHODOLOGY FOR ASSESSING 
                    AND CERTIFYING THE SAFETY AND RELIABILITY OF THE 
                    NUCLEAR STOCKPILE.

    (a) Study Required.--The Secretary of Energy shall, as soon 
as practicable and no later than 120 days after the date of the 
enactment of this Act, enter into an arrangement with the 
National Research Council of the National Academy of Sciences 
for the Council to carry out a study of the quantification of 
margins and uncertainty methodology used by the national 
security laboratories for assessing and certifying the safety 
and reliability of the nuclear stockpile.
    (b) Matters Included.--The study required by subsection (a) 
shall evaluate the following:
            (1) The use of the quantification of margins and 
        uncertainty methodology by the national security 
        laboratories, including underlying assumptions of 
        weapons performance and the ability of modeling and 
        simulation tools to predict nuclear explosive package 
        characteristics.
            (2) The manner in which that methodology is used to 
        conduct the annual assessments of the nuclear weapons 
        stockpile.
            (3) How the use of that methodology compares and 
        contrasts between the national security laboratories.
            (4) Whether the application of the quantification 
        of margins and uncertainty used for annual assessments 
        and certification of the nuclear weapons stockpile can 
        be applied to the planned Reliable Replacement Warhead 
        program so as to carry out the objective of that 
        program to reduce the likelihood of the resumption of 
        underground testing of nuclear weapons.
    (c) Report.--
            (1) In general.--Not later than one year after the 
        date on which the arrangement required by subsection 
        (a) is entered into, the National Research Council 
        shall submit to the Secretary of Energy and the 
        congressional committees specified in paragraph (2) a 
        report on the study that addresses the matters listed 
        in subsection (b) and any other matters considered by 
        the National Research Council to be relevant to the use 
        of the quantification of margins and uncertainty 
        methodology in assessing the current or future nuclear 
        weapons stockpile.
            (2) Specified committees.--The congressional 
        committees referred to in paragraph (1) are the 
        following:
                    (A) The Committee on Armed Services of the 
                Senate.
                    (B) The Committee on Armed Services of the 
                House of Representatives.
    (d) Provision of Information.--The Secretary of Energy 
shall, in a timely manner, make available to the National 
Research Council all information that the National Research 
Council considers necessary to carry out its responsibilities 
under this section.
    (e) Funding.--Of the amounts made available to the 
Department of Energy pursuant to the authorization of 
appropriations in section 3101, $2,000,000 shall be available 
for carrying out the study required by this section.

SEC. 3117. CONSOLIDATION OF COUNTERINTELLIGENCE PROGRAMS OF DEPARTMENT 
                    OF ENERGY AND NATIONAL NUCLEAR SECURITY 
                    ADMINISTRATION.

    (a) Transfer of Functions.--
            (1) In general.--The functions, personnel, funds, 
        assets, and other resources of the Office of Defense 
        Nuclear Counterintelligence of the National Nuclear 
        Security Administration are transferred to the 
        Secretary of Energy, to be administered (except to any 
        extent otherwise directed by the Secretary) by the 
        Director of the Office of Counterintelligence of the 
        Department of Energy.
            (2) Sunset.--Effective September 30, 2010--
                    (A) the functions, personnel, funds, 
                assets, and other resources transferred by 
                paragraph (1) are transferred to the 
                Administrator for Nuclear Security;
                    (B) subsection (e) of section 3220 of the 
                National Nuclear Security Administration Act 
                (50 U.S.C. 2410), as added by this section, is 
                repealed; and
                    (C) section 3233 of the National Nuclear 
                Security Administration Act (50 U.S.C. 2423) is 
                amended--
                            (i) in each of subsections (a) and 
                        (b), by striking ``The Secretary of 
                        Energy shall'' and inserting ``The 
                        Administrator shall''; and
                            (ii) in subsection (b), by striking 
                        ``Office of Counterintelligence of the 
                        Department of Energy'' and inserting 
                        ``Administration''.
    (b) NNSA Counterintelligence Office Abolished.--
            (1) In general.--Section 3232 of the National 
        Nuclear Security Administration Act (50 U.S.C. 2422) is 
        amended--
                    (A) by amending the heading to read as 
                follows:

``SEC. 3232. OFFICE OF DEFENSE NUCLEAR SECURITY.''.

                    (B) by striking subsection (a) and 
                inserting the following new subsection (a):
    ``(a) Establishment.--There is within the Administration an 
Office of Defense Nuclear Security, headed by a Chief appointed 
by the Secretary of Energy. The Administrator shall recommend 
to the Secretary suitable candidates for such position.'';
                    (C) by striking subsection (b); and
                    (D) by redesignating subsection (c) as 
                subsection (b).
            (2) Conforming amendment.--The table of sections at 
        the beginning of the National Nuclear Security 
        Administration Act is amended by striking the item 
        relating to section 3232 and inserting the following 
        new item:

``Sec. 3232. Office of Defense Nuclear Security.''.
    (c) Counterintelligence Programs at NNSA Facilities.--
Section 3233 of the National Nuclear Security Administration 
Act (50 U.S.C. 2423) is amended--
            (1) in each of subsections (a) and (b), by striking 
        ``The Administrator shall'' and inserting ``The 
        Secretary of Energy shall''; and
            (2) in subsection (b), by striking ``Office of 
        Defense Nuclear Counterintelligence'' and inserting 
        ``Office of Counterintelligence of the Department of 
        Energy''.
    (d) Status of NNSA Intelligence and Counterintelligence 
Personnel.--Section 3220 of the National Nuclear Security 
Administration Act (50 U.S.C. 2410) is amended by adding at the 
end the following new subsection:
    ``(e) Status of Intelligence and Counterintelligence 
Personnel.--Notwithstanding the restrictions of subsections (a) 
and (b), each officer or employee of the Administration, or of 
a contractor of the Administration, who is carrying out 
activities related to intelligence or counterintelligence 
shall, in carrying out those activities, be subject to the 
authority, direction, and control of the Secretary of Energy or 
the Secretary's delegate.''.
    (e) NNSA Intelligence and Counterintelligence Liaison.--
Section 3218 of the National Nuclear Security Administration 
Act (50 U.S.C. 2408) is amended in subsection (b)--
            (1) by redesignating paragraph (4) as paragraph 
        (5); and
            (2) by inserting after paragraph (3) the following 
        new paragraph (4):
            ``(4) Liaison with the Department of Energy's 
        Office of Intelligence and Counterintelligence.''.
    (f) Service From Which DOE Intelligence Director and 
Counterintelligence Director Appointed.--Section 215(b)(1) (42 
U.S.C. 7144b(b)(1)) and section 216(b)(1) (42 U.S.C. 
7144c(b)(1)) of the Department of Energy Organization Act are 
each amended by striking ``which shall be a position in the 
Senior Executive Service'' and inserting ``who shall be an 
employee in the Senior Executive Service, the Senior 
Intelligence Service, the Senior National Intelligence Service, 
or any other Service that the Secretary, in coordination with 
the Director of National Intelligence, considers appropriate''.
    (g) Intelligence Executive Committee; Budget for 
Intelligence and Counterintelligence.--Section 214 of the 
Department of Energy Organization Act (42 U.S.C. 7144a) is 
amended--
            (1) by inserting ``(a)'' before ``The Secretary 
        shall be responsible''; and
            (2) by adding at the end the following:
    ``(b)(1) There is within the Department an Intelligence 
Executive Committee. The Committee shall consist of the Deputy 
Secretary of Energy, who shall chair the Committee, and each 
Under Secretary of Energy.
            ``(2) The Committee shall be staffed by the 
        Director of the Office of Intelligence and the Director 
        of the Office of Counterintelligence.
            ``(3) The Secretary shall use the Committee to 
        assist in developing and promulgating the 
        counterintelligence and intelligence policies, 
        requirements, and priorities of the Department.
    ``(c) In the budget justification materials submitted to 
Congress in support of each budget submitted by the President 
to Congress under title 31, United States Code, the amounts 
requested for the Department for intelligence functions and the 
amounts requested for the Department for counterintelligence 
functions shall each be specified in appropriately classified 
individual, dedicated program elements. Within the amounts 
requested for counterintelligence functions, the amounts 
requested for the National Nuclear Security Administration 
shall be specified separately from the amounts requested for 
other elements of the Department.''.
    (h) Report.--Not later than 1 year after the date of the 
enactment of this Act, the Inspector General of the Department 
of Energy shall submit to Congress a report on the 
implementation of this section and of the amendments required 
by this section. The report shall include the Inspector 
General's evaluation of that implementation.

SEC. 3118. NOTICE-AND-WAIT REQUIREMENT APPLICABLE TO CERTAIN THIRD-
                    PARTY FINANCING ARRANGEMENTS.

    Subtitle A of title XLVIII of the Atomic Energy Defense Act 
(50 U.S.C. 2781 et seq.) is amended by adding at the end the 
following new section:

``SEC. 4804. NOTICE-AND-WAIT REQUIREMENT APPLICABLE TO CERTAIN THIRD-
                    PARTY FINANCING ARRANGEMENTS.

    ``(a) Notice-and-Wait Requirement.--The Secretary of Energy 
may not enter into an arrangement described in subsection (b) 
until 30 days after the date on which the Secretary notifies 
the congressional defense committees in writing of the proposed 
arrangement.
    ``(b) Covered Arrangements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), an arrangement referred to in subsection (a) is 
        any alternative financing arrangement, third-party 
        financing arrangement, public-private partnership, 
        privatization arrangement, private capital arrangement, 
        or other financing arrangement that--
                    ``(A) is entered into in connection with a 
                project conducted using funds authorized to be 
                appropriated to the Department of Energy to 
                carry out programs necessary for national 
                security; and
                    ``(B) involves a contractor or Federal 
                agency obtaining and charging to the Department 
                of Energy as an allowable cost under a contract 
                the use of office space, facilities, or other 
                real property assets with a value of at least 
                $5,000,000.
            ``(2) Exception.--An arrangement referred to in 
        subsection (a) does not include an arrangement that--
                    ``(A) involves the Department of Energy or 
                a contractor acquiring or entering into a 
                capital lease for office space, facilities, or 
                other real property assets; or
                    ``(B) is entered into in connection with a 
                capital improvement project undertaken as part 
                of an energy savings performance contract under 
                section 801 of the National Energy Conservation 
                Policy Act (42 U.S.C. 8287).''.

SEC. 3119. EXTENSION OF DEADLINE FOR TRANSFER OF LANDS TO LOS ALAMOS 
                    COUNTY, NEW MEXICO, AND OF LANDS IN TRUST FOR THE 
                    PUEBLO OF SAN ILDEFONSO.

    Section 632 of the Departments of Commerce, Justice, and 
State, the Judiciary, and Related Agencies Appropriations Act, 
1998 (Public Law 105-119; 111 Stat. 2523; 42 U.S.C. 2391 note) 
is amended--
            (1) in subsection (d)(2), by striking ``10 years 
        after the date of enactment of this Act'' and inserting 
        ``November 26, 2012''; and
            (2) in subsection (g)(3)(B), by striking ``the end 
        of the 10-year period beginning on the date of 
        enactment of this Act'' and inserting ``November 26, 
        2012''.

SEC. 3120. LIMITATIONS ON AVAILABILITY OF FUNDS FOR WASTE TREATMENT AND 
                    IMMOBILIZATION PLANT.

    (a) Limitation Relating to Earned Value Management 
System.--
            (1) In general.--Of the amount appropriated or 
        otherwise available for defense environmental cleanup 
        activities and available for the Waste Treatment and 
        Immobilization Plant, not more than 90 percent of that 
        amount may be obligated or expended.
            (2) Termination of limitation.--Paragraph (1) does 
        not apply after the date on which the Secretary of 
        Energy certifies to the congressional defense 
        committees that the Defense Contract Management Agency 
        has recommended for acceptance the earned value 
        management system used to track and report costs of the 
        Waste Treatment and Immobilization Plant.
    (b) Limitation Relating to Seismic Criteria.--
            (1) In general.--Of the amount appropriated or 
        otherwise available for defense environmental cleanup 
        activities and available for the Waste Treatment and 
        Immobilization Plant, none of that amount may be 
        obligated or expended for construction, or for the 
        procurement of critical equipment affected by seismic 
        criteria, relating to the Pretreatment Facility and the 
        High-Level Waste Facility.
            (2) Exception.--Paragraph (1) does not apply to the 
        obligation or expenditure of funds for construction 
        that is necessary for maintenance or for activities 
        related to maintenance.
            (3) Termination of limitation.--Paragraph (1) does 
        not apply after the date on which the Secretary of 
        Energy certifies to the congressional defense 
        committees that the final seismic and ground motion 
        criteria have been approved by the Secretary and that 
        the contracting officer of the Waste Treatment and 
        Immobilization Plant Project has formally directed that 
        the final criteria be used for the final design of the 
        Pretreatment Facility and the High-Level Waste 
        Facility.

SEC. 3121. REPORT ON RUSSIAN SURPLUS FISSILE MATERIALS DISPOSITION 
                    PROGRAM.

    Not later than March 1, 2007, the Secretary of Energy shall 
submit to the congressional defense committees a report on the 
Russian Surplus Fissile Materials Disposition Program (in this 
section referred to as the ``Program''). The report shall 
include--
            (1) a description of the disposition method the 
        Government of Russia has agreed to use under the 
        Program;
            (2) a description of the assistance the United 
        States Government plans to provide under the Program;
            (3) an estimate of the total cost and schedule of 
        such assistance; and
            (4) an explanation of how parallelism is to be 
        defined for purposes of the Program, including 
        projected goals for the disposition of Russian weapons-
        grade plutonium under the 2000 Plutonium Disposition 
        and Management Agreement, and whether such parallelism 
        can be achieved if the United States mixed-oxide (MOX) 
        plutonium disposition program continues on the current 
        planned schedule without further delays.

SEC. 3122. LIMITATION ON AVAILABILITY OF FUNDS FOR CONSTRUCTION OF MOX 
                    FUEL FABRICATION FACILITY.

    Of the amount appropriated under section 3101(a)(2) or 
otherwise available for defense nuclear nonproliferation 
activities for fiscal year 2007, none of that amount may be 
obligated for construction project 99-D-143, the Mixed-Oxide 
(MOX) Fuel Fabrication Facility, until 30 days after the date 
on which the Secretary of Energy provides to the congressional 
defense committees--
            (1) an independent cost estimate for the United 
        States Surplus Fissile Materials Disposition Program 
        and facilities;
            (2) a written certification that the Department of 
        Energy intends to use the MOX Fuel Fabrication Facility 
        for United States plutonium disposition regardless of 
        the future direction of the Russian Surplus Fissile 
        Materials Disposition Program; and
            (3) a corrective action plan for addressing the 
        issues raised by the Inspector General of the 
        Department of Energy in the December 2005 report titled 
        ``The status of the Mixed Oxide Fuel Fabrication 
        Facility''.

SEC. 3123. EDUCATION OF FUTURE NUCLEAR ENGINEERS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense and the Department of 
        Energy depend on the specialized expertise of nuclear 
        engineers who support the development and sustainment 
        of technologies including naval reactors, strategic 
        weapons, and nuclear power plants.
            (2) Experts estimate that over 25 percent of the 
        approximately 58,000 workers in the nuclear power 
        industry in the United States will be eligible to 
        retire within 5 years, representing both a huge loss of 
        institutional memory and a potential national security 
        crisis.
            (3) This shortfall of workers is exacerbated by 
        reductions to the University Reactor Infrastructure and 
        Education Assistance program, which trains civilian 
        nuclear scientists and engineers. The defense and 
        civilian nuclear industries are interdependent on a 
        limited number of educational institutions to produce 
        their workforce. A reduction in nuclear scientists and 
        engineers trained in the civilian sector may result in 
        a further loss of qualified personnel for defense-
        related research and engineering.
            (4) The Department of Defense's successful Science, 
        Math and Research for Transformation (SMART) 
        scholarship-for-service program serves as a good model 
        for a targeted scholarship or fellowship program 
        designed to educate future scientists at the 
        postsecondary and postgraduate levels.
    (b) Report on Education of Future Nuclear Engineers.--
            (1) Study.--The Secretary of Energy shall study the 
        feasibility and merit of establishing a targeted 
        scholarship or fellowship program to educate future 
        nuclear engineers at the postsecondary and postgraduate 
        levels.
            (2) Report required.--The President shall submit to 
        the congressional defense committees, at the same time 
        that the budget for fiscal year 2008 is submitted under 
        section 1105(a) of title 31, United States Code, a 
        report on the study conducted by the Secretary of 
        Energy under paragraph (1).

SEC. 3124. TECHNICAL CORRECTION RELATED TO AUTHORIZATION OF 
                    APPROPRIATIONS FOR FISCAL YEAR 2006.

    Effective as of January 6, 2006, and as if included therein 
as enacted, section 3101(a) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3537) is amended by striking ``$9,196,456'' and inserting 
``$9,196,456,000''.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
2007, $22,260,000 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. 3302. Revisions to required receipt objectives for previously 
          authorized disposals from National Defense Stockpile.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
2007, the National Defense Stockpile Manager may obligate up to 
$52,132,000 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.

SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY 
                    AUTHORIZED DISPOSALS FROM NATIONAL DEFENSE 
                    STOCKPILE.

    (a) Fiscal Year 1999 Disposal Authority.--Section 3303(a) 
of the Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 98d note), as 
amended by section 3302 of the Ronald W. Reagan National 
Defense Authorization Act for Year 2005 (Public Law 108-375; 
118 Stat. 2193) and section 3302 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3545), is amended--
            (1) by striking ``and'' at the end of paragraph 
        (5); and
            (2) by striking the period at the end of paragraph 
        (6) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(7) $1,016,000,000 by the end of fiscal year 
        2014.''.
    (b) Fiscal Year 1998 Disposal Authority.--Section 
3305(a)(5) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 50 U.S.C. 98d note), as amended 
by section 3305 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1390), is 
amended by striking ``2006'' and inserting ``2008''.
    (c) Fiscal Year 1997 Disposal Authority.--Section 3303 of 
the National Defense Authorization Act for Fiscal Year 1997 
(Public Law 104-201; 50 U.S.C. 98d note), as amended by section 
3402(f) of the National Defense Authorization Act for Year 2000 
(Public Law 106-65; 113 Stat. 973) and section 3304(c) of the 
National Defense Authorization Act for 2002 (Public Law 107-
107; 115 Stat. 1390), is amended--
            (1) in subsection (a), by striking paragraph (2) 
        and inserting the following new paragraph (2):
            ``(2) $720,000,000 during the 12-fiscal year period 
        ending September 30, 2008.''; and
            (2) in subsection (b)(2), by striking ``the 10-
        fiscal year period'' and inserting ``the period''.

                 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 $18,810,000 for fiscal year 2007 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 2007.
Sec. 3502. Amendments relating to the Maritime Security Fleet program.
Sec. 3503. Applicability to certain Maritime Administration vessels of 
          limitations on overhaul, repair, and maintenance of vessels in 
          foreign shipyards.
Sec. 3504. Vessel transfer authority.
Sec. 3505. United States Merchant Marine Academy graduates: service 
          requirements.
Sec. 3506. United States Merchant Marine Academy graduates: service 
          obligation performance reporting requirement.
Sec. 3507. Temporary authority to transfer obsolete combatant vessels to 
          Navy for disposal.
Sec. 3508. Qualifying Reserve duty for receipt of student incentive 
          payments.
Sec. 3509. Large passenger ship crew requirements.
Sec. 3510. Miscellaneous Maritime Administration provisions.

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2007.

    Funds are hereby authorized to be appropriated for fiscal 
year 2007, 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, $116,442,000.
            (2) For paying reimbursement under section 3517 of 
        the Maritime Security Act of 2003 (46 U.S.C. 53101 
        note), $19,500,000.
            (3) For assistance to small shipyards and maritime 
        communities under section 3506 of the National Defense 
        Authorization Act for Fiscal Year 2006 (46 U.S.C. App. 
        1249), $15,000,000.
            (4) 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, 
        $25,740,000.
            (5) For administrative expenses related to the 
        implementation of the loan guarantee program under 
        title XI of the Merchant Marine Act, 1936 (46 U.S.C. 
        App. 1271 et seq.), administrative expenses related 
        implementation of the reimbursement program under 
        section 3517 of the Maritime Security Act of 2003 (46 
        U.S.C. 53101 note), and administrative expenses related 
        to the implementation of the small shipyards and 
        maritime communities assistance program under section 
        3506 of the National Defense Authorization Act for 
        Fiscal Year 2006 (46 U.S.C. App. 1249), $3,317,000.

SEC. 3502. AMENDMENTS RELATING TO THE MARITIME SECURITY FLEET PROGRAM.

    (a) Limitation on Transfer of Operating Agreements.--
Section 53105(e) of title 46, United States Code, is amended--
            (1) by inserting ``(1) In general.--'' before the 
        first sentence;
            (2) by moving paragraph (1) (as designated by the 
        amendment made by paragraph (1) of this subsection) so 
        as to appear immediately below the heading for such 
        subsection, and 2 ems to the right; and
            (3) by adding at the end the following:
            ``(2) Limitation.--The Secretary of Defense may not 
        approve under paragraph (1) transfer of an operating 
        agreement to a person that is not a citizen of the 
        United States under section 2 of the Shipping Act, 1916 
        (46 U.S.C. App. 802), unless the Secretary of Defense 
        determines that there is no person who is a citizen 
        under such section and is interested in obtaining the 
        operating agreement for a vessel that is otherwise 
        eligible to be included in the Fleet under section 
        53102(b) and meets the requirements of the Department 
        of Defense.''.
    (b) Maritime Security Fleet Program Tank Vessels.--
            (1) In general.--Section 53103(c)(4) of title 46, 
        United States Code, is amended--
                    (A) in subparagraph (A)(i) by striking 
                ``(i)'' and inserting ``(i)(I)'';
                    (B) in subparagraph (A) by redesignating 
                clause (ii) as subclause (II) of clause (i);
                    (C) in subparagraph (A)(i)(II), as so 
                redesignated, by striking ``53102(b).'' and 
                inserting ``53102(b); or'';
                    (D) by inserting after subparagraph 
                (A)(i)(II), as so redesignated, the following:
                    ``(ii)(I) not later than 9 months after the 
                first date amounts are available to carry out 
                this chapter, the operator of the existing tank 
                vessel enters into an agreement to charter one 
                or more tank vessels to be built in the United 
                States and operated as a documented vessel or 
                documented vessels;
                    ``(II) the combined tonnage of the vessels 
                required to be chartered under subclause (I) is 
                equal to or greater than the tonnage of the 
                existing tank vessel subject to an operating 
                agreement;
                    ``(III) the operator enters into an 
                agreement with the Secretary that is 
                substantially the same as an Emergency 
                Preparedness Agreement under section 53107 of 
                this title, under which the operator shall make 
                available commercial transportation resources 
                as provided in that section;
                    ``(IV) if the person that is the owner or 
                operator of the existing tank vessel owns or 
                operates more than one existing tank vessel 
                subject to an operating agreement, the combined 
                tonnage of those vessels required to be 
                chartered under subclause (I) by that person is 
                equal to or greater than the combined tonnage 
                of all such existing tank vessels owned or 
                operated by such person that are subject to 
                operating agreements.'';
                    (E) in subparagraph (B) by inserting ``with 
                respect to which a binding contract is entered 
                into under subparagraph (A)(i)'' after 
                ``existing tank vessel''; and
                    (F) by adding at the end the following:
            ``(C) For purpose of subparagraph (A)(ii), tonnage 
        shall be measured under section 14502 of this title, or 
        an alternate tonnage measured under section 14302 of 
        this title as prescribed by the Secretary under section 
        14104 of this title.
            ``(D) No payment under this chapter may be made for 
        an existing tank vessel with respect to which an 
        agreement is entered into under subparagraph (A)(ii) 
        for any period occurring--
                    ``(i) after the date that is 5 years after 
                the first date that amounts became available to 
                carry out this chapter, if the vessel or 
                vessels required to be chartered under 
                subparagraph (A)(ii) have not been delivered; 
                or
                    ``(ii) after delivery of the vessel or 
                vessels required to be chartered under such 
                subparagraph, if any of such vessels is not 
                chartered by the operator of the existing tank 
                vessel.''.
            (2) Assistance authority.--Section 3543(a) of the 
        National Defense Authorization Act for Fiscal Year 2004 
        (46 U.S.C. 53101 note) is amended by striking ``shall, 
        to the extent of the availability of appropriations,'' 
        and inserting ``may''.
    (c) Priority in Allocation of Amounts Available for Annual 
Payments.--Section 53106 of title 46, United States Code, is 
amended by adding at the end the following:
    ``(f) Priority in Allocation of Available Amounts.--If the 
amount available for a fiscal year for making payments under 
operating agreements under this chapter is not sufficient to 
pay the full amount authorized under each agreement pursuant to 
this section for such fiscal year, the amount available shall 
be allocated among such agreements in a manner that gives 
priority to payments for vessels that are subject to agreements 
under section 3517 of the Maritime Security Act of 2003 (46 
U.S.C. 53101 note).''.

SEC. 3503. APPLICABILITY TO CERTAIN MARITIME ADMINISTRATION VESSELS OF 
                    LIMITATIONS ON OVERHAUL, REPAIR, AND MAINTENANCE OF 
                    VESSELS IN FOREIGN SHIPYARDS.

    Section 11 of the Merchant Ship Sales Act of 1946 (50 
U.S.C. App. 1744) is amended by inserting after subsection (c) 
the following:
    ``(d) Applicability of Limitations on Overhaul, Repair, and 
Maintenance in Foreign Shipyards.--
            ``(1) Application of limitation.--The provisions of 
        section 7310 of title 10, United States Code, shall 
        apply to vessels specified in subsection (b), and to 
        the Secretary of Transportation with respect to those 
        vessels, in the same manner as those provisions apply 
        to vessels specified in subsection (b) of such section, 
        and to the Secretary of the Navy, respectively.
            ``(2) Covered vessels.--Vessels specified in this 
        paragraph are vessels maintained by the Secretary of 
        Transportation in support of the Department of Defense, 
        including any vessel assigned by the Secretary of 
        Transportation to the Ready Reserve Force that is owned 
        by the United States.''.

SEC. 3504. VESSEL TRANSFER AUTHORITY.

    The Secretary of Transportation may transfer or otherwise 
make available without reimbursement to any other department a 
vessel under the jurisdiction of the Department of 
Transportation, upon request by the Secretary of the department 
that receives the vessel.

SEC. 3505. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: SERVICE 
                    REQUIREMENTS.

    (a) Alternate Service.--Section 1303(e) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1295b(e)) is amended by adding 
at the end the following:
    ``(6)(A) An individual who for the 5-year period following 
graduation from the Academy, serves as a commissioned officer 
on active duty in an armed force of the United States or as a 
commissioned officer of the National Oceanic and Atmospheric 
Administration or the Public Health Service shall be excused 
from the requirements of subparagraphs (C), (D), and (E) of 
paragraph (1).
    ``(B) The Secretary may modify or waive any of the terms 
and conditions set forth in paragraph (1) through the 
imposition of alternative service requirements.''.
    (b) Application.--Paragraph (6) of section 1303(e) of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1295b(e)), as added 
by this section, applies only to an individual who enrolls as a 
cadet at the United States Merchant Marine Academy, and signs 
an agreement under paragraph (1) of that section, after the 
date of the enactment of this Act.

SEC. 3506. UNITED STATES MERCHANT MARINE ACADEMY GRADUATES: SERVICE 
                    OBLIGATION PERFORMANCE REPORTING REQUIREMENT.

    (a) In General.--Section 1303(e) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1295b(e)) is further amended by 
adding at the end the following:
    ``(7)(A) Subject to any otherwise applicable restrictions 
on disclosure in section 552a of title 5, United States Code, 
the Secretary of Defense, the Secretary of the department in 
which the Coast Guard is operating, the Administrator of the 
National Oceanic and Atmospheric Administration, and the 
Surgeon General of the Public Health Service--
            ``(i) shall report the status of obligated service 
        of an individual graduate of the Academy upon request 
        of the Secretary; and
            ``(ii) may, in their discretion, notify the 
        Secretary of any failure of the graduate to perform the 
        graduate's duties, either on active duty or in the 
        Ready Reserve component of their respective service, or 
        as a commissioned officer of the National Oceanic and 
        Atmospheric Administration or the Public Health 
        Service, respectively.
    ``(B) A report or notice under subparagraph (A) shall 
identify any graduate determined to have failed to comply with 
service obligation requirements and provide all required 
information as to why such graduate failed to comply.
    ``(C) Upon receipt of such a report or notice, such 
graduate may be considered to be in default of the graduate's 
service obligations by the Secretary, and subject to all 
remedies the Secretary may have with respect to such a 
default.''.
    (b) Application.--The amendment made by this section does 
not apply with respect to an agreement entered into under 
section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C. 
1295b(e)) before the date of the enactment of this Act.

SEC. 3507. TEMPORARY AUTHORITY TO TRANSFER OBSOLETE COMBATANT VESSELS 
                    TO NAVY FOR DISPOSAL.

    The Secretary of Transportation shall, subject to the 
availability of appropriations and consistent with section 1535 
of title 31, United States Code, popularly known as the Economy 
Act, transfer to the Secretary of the Navy during fiscal year 
2007 for disposal by the Navy, no fewer than 3 combatant 
vessels in the nonretention fleet of the Maritime 
Administration that are acceptable to the Secretary of the 
Navy.

SEC. 3508. QUALIFYING RESERVE DUTY FOR RECEIPT OF STUDENT INCENTIVE 
                    PAYMENTS.

    Section 1304(g)(2) of title XIII of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1295c(g)(2)) is amended to read as 
follows:
    ``(2) Each agreement entered into under paragraph (1) shall 
require the individual to accept enlisted reserve status in the 
United States Naval Reserve (including the Merchant Marine 
Reserve, United States Naval Reserve) or the United States 
Coast Guard Reserve before receiving any student incentive 
payments under this subsection.''.

SEC. 3509. LARGE PASSENGER SHIP CREW REQUIREMENTS.

    Section 8103 of title 46, United States Code, is amended by 
adding at the end the following:
    ``(k) Crew Requirements for Large Passenger Vessels.--
            ``(1) Citizenship and nationality.--Each unlicensed 
        seaman on a large passenger vessel shall be--
                    ``(A) a citizen of the United States;
                    ``(B) an alien lawfully admitted to the 
                United States for permanent residence;
                    ``(C) an alien allowed to be employed in 
                the United States under the Immigration and 
                Nationality Act (8 U.S.C. 1101 et seq.), 
                including an alien crewman described in section 
                101(a)(15)(D)(i) of that Act (8 U.S.C. 
                1101(a)(15)(D)(i)), who meets the requirements 
                of paragraph (3)(A) of this subsection; or
                    ``(D) a foreign national who is enrolled in 
                the United States Merchant Marine Academy.
            ``(2) Percentage limitation for alien seamen.--Not 
        more than 25 percent of the unlicensed seamen on a 
        vessel described in paragraph (1) of this subsection 
        may be aliens referred to in subparagraph (B) or (C) of 
        that paragraph.
            ``(3) Special rules for certain unlicensed 
        seamen.--
                    ``(A) Qualifications.--An unlicensed seaman 
                described in paragraph (1)(C) of this 
                subsection--
                            ``(i) shall have been employed, for 
                        a period of not less than 1 year, on a 
                        passenger vessel under the same common 
                        ownership or control as the vessel 
                        described in paragraph (1) of this 
                        subsection, as certified by the owner 
                        or managing operator of such vessel to 
                        the Secretary;
                            ``(ii) shall have no record of 
                        material disciplinary actions during 
                        such employment, as verified in writing 
                        by the owner or managing operator of 
                        such vessel to the Secretary;
                            ``(iii) shall have successfully 
                        completed a United States Government 
                        security check of the relevant domestic 
                        and international databases, as 
                        appropriate, or any other national 
                        security-related information or 
                        database;
                            ``(iv) shall have successfully 
                        undergone an employer background 
                        check--
                                    ``(I) for which the owner 
                                or managing operator provides a 
                                signed report to the Secretary 
                                that describes the background 
                                checks undertaken that are 
                                reasonably and legally 
                                available to the owner or 
                                managing operator including 
                                personnel file information 
                                obtained from such seaman and 
                                from databases available to the 
                                public with respect to the 
                                seaman;
                                    ``(II) that consisted of a 
                                search of all information 
                                reasonably available to the 
                                owner or managing operator in 
                                the seaman's country of 
                                citizenship and any other 
                                country in which the seaman 
                                receives employment referrals, 
                                or resides;
                                    ``(III) that is kept on the 
                                vessel and available for 
                                inspection by the Secretary; 
                                and
                                    ``(IV) the information 
                                derived from which is made 
                                available to the Secretary upon 
                                request; and
                            ``(v) may not be a citizen or 
                        temporary or permanent resident of a 
                        country designated by the United States 
                        as a sponsor of terrorism or any other 
                        country that the Secretary, in 
                        consultation with the Secretary of 
                        State and the heads of other 
                        appropriate United States agencies, 
                        determines to be a security threat to 
                        the United States.
                    ``(B) Restrictions.--An unlicensed seaman 
                described in paragraph (1)(C) of this 
                subsection--
                            ``(i) may be employed only in the 
                        steward's department of the vessel; and
                            ``(ii) may not perform 
                        watchstanding, automated engine room 
                        duty watch, or vessel navigation 
                        functions.
                    ``(C) Status, documentation, and 
                employment.--An unlicensed seaman described in 
                subparagraph (C) or (D) of paragraph (1) of 
                this subsection--
                            ``(i) is deemed to meet the 
                        nationality requirements necessary to 
                        qualify for a merchant mariners 
                        document notwithstanding the 
                        requirements of part 12 of title 46, 
                        Code of Federal Regulations;
                            ``(ii) is deemed to meet the proof-
                        of-identity requirements necessary to 
                        qualify for a merchant mariners 
                        document, as prescribed under 
                        regulations promulgated by the 
                        Secretary, if the seaman possesses--
                                    ``(I) an unexpired passport 
                                issued by the government of the 
                                country of which the seaman is 
                                a citizen or subject; and
                                    ``(II) an unexpired visa 
                                issued to the seaman, as 
                                described in paragraph (1)(C);
                            ``(iii) shall, if eligible, be 
                        issued a merchant mariners document 
                        with an appropriate annotation 
                        reflecting the restrictions of 
                        subparagraph (B) of this paragraph; and
                            ``(iv) may be employed for a period 
                        of service on board not to exceed 36 
                        months in the aggregate as a 
                        nonimmigrant crewman described in 
                        section 101(a)(15)(D)(i) of the 
                        Immigration and Nationality Act (8 
                        U.S.C. 1101(a)(15)(D)(i)) on vessels 
                        engaged in domestic voyages 
                        notwithstanding the departure 
                        requirements and time limitations of 
                        such section and the regulations and 
                        rules promulgated thereunder.
            ``(4) Merchant mariner's document requirements not 
        affected.--This subsection shall not be construed to 
        affect any requirement under Federal law that an 
        individual must hold a merchant mariner's document.
            ``(5) Definitions.--In this subsection:
                    ``(A) Steward's department.--The term 
                `steward's department' means the department 
                that includes entertainment personnel and all 
                service personnel, including wait staff, 
                housekeeping staff, and galley workers, as 
                defined in the vessel security plan approved by 
                the Secretary pursuant to section 70103(c) of 
                this title.
                    ``(B) Large passenger vessel.--The term 
                `large passenger vessel' means a vessel of more 
                than 70,000 gross tons, as measured under 
                section 14302 of this title, with capacity for 
                at least 2,000 passengers and documented with a 
                coastwise endorsement under chapter 121 of this 
                title.''.

SEC. 3510. MISCELLANEOUS MARITIME ADMINISTRATION PROVISIONS.

    (a) Technical Correction Regarding War Risk Insurance for 
Merchant Marine Vessels.--
            (1) In general.--Section 1208(a) of the Merchant 
        Marine Act, 1936 (46 U.S.C. App. 1288(a)) is amended--
                    (A) by striking ``Upon the request of the 
                Secretary of Transportation, the Secretary of 
                the Treasury may invest or reinvest all or any 
                part of the fund in securities of the United 
                States or in securities guaranteed as to 
                principal and interest by the United States.''; 
                and
                    (B) by inserting after ``to the credit of 
                such fund.'' the following: ``Payments of 
                return premiums, losses, settlements, 
                judgments, and all liabilities incurred by the 
                United States under this title shall be made 
                from such fund through the Fiscal Service of 
                the Department of the Treasury.''.
            (2) Effective date.--The amendments made by 
        paragraph (1) shall be effective as if enacted by 
        section 3502 of the Ronald W. Reagan National Defense 
        Authorization Act for Fiscal Year 2005 (118 Stat. 
        2195).
    (b) Right To Use Maritime Administration Decoration.--
Section 8 of the Merchant Marine Decorations and Medals Act (46 
U.S.C. App. 2007) is amended by inserting ``or the Secretary of 
Transportation,'' after ``Act,''.
    (c) Intermodal Centers.--
            (1) In general.--Notwithstanding section 
        5309(m)(6)(B) of title 49, United States Code, half of 
        the amounts appropriated or made available under 
        subsections (b) and (c) of section 5338 of title 49, 
        United States Code, for capital projects under section 
        5309(m)(6)(B) of that title for fiscal years 2006 
        through 2009 shall be made available and used, in 
        accordance with section 9008(a) of Public Law 109-59, 
        for an intermodal or marine facility comprising a 
        component of the Hawaii Port Infrastructure Expansion 
        Program.
            (2) Supplementary funding.--Any amount made 
        available under paragraph (1) shall be in addition to 
        any amounts authorized to be appropriated under 
        subsections (b) and (c) of section 9008 of Public Law 
        109-59.
    (d) Technical Correction.--
            (1) Correction.--Section 3509 of the National 
        Defense Authorization Act for Fiscal Year 2006 (119 
        Stat. 3557) is amended by striking ``Maritime Education 
        and Training Act of 1980'' and inserting ``Merchant 
        Marine Act, 1936''.
            (2) Effective date.--This subsection shall be 
        effective immediately after section 3509 of the 
        National Defense Authorization Act for Fiscal Year 2006 
        (119 Stat. 3557) takes effect.
      And the Senate agree to the same.

                From the Committee on Armed Services, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Duncan Hunter,
                                   C. Weldon,
                                   Joel Hefley,
                                   J. Saxton,
                                   John M. McHugh,
                                   Terry Everett,
                                   R. Bartlett,
                                   Mac Thornberry,
                                   John N. Hostettler,
                                   Jim Ryun,
                                   Jim Gibbons,
                                   Robin Hayes,
                                   Ken Calvert,
                                   Rob Simmons,
                                   Thelma Drake,
                                   Geoff Davis,
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Gene Taylor,
                                   Neil Abercrombie,
                                   Silvestre Reyes,
                                   Vic Snyder,
                                   Adam Smith,
                                   Loretta Sanchez,
                                   Ellen Tauscher,
                                   R.A. Brady,
                                   Robert E. Andrews,
                From the Permanent Select Committee on 
                Intelligence, for consideration of matters 
                within the jurisdiction of that committee under 
                clause 11 of rule X:
                                   Pete Hoekstra,
                                   Ray LaHood,
                                   Jane Harman,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 571 and 
                572 of the House bill, and secs. 571, 572, 
                1081, and 1104 of the Senate amendment, and 
                modifications committed to conference:
                                   Howard P. McKeon,
                                   John Kline,
                From the Committee on Energy and Commerce, for 
                consideration of secs. 314, 601, 602, 710, 
                3115, 3117, and 3201 of the House bill, and 
                secs. 332-335, 352, 601, 722, 2842, 3115, and 
                3201 of the Senate amendment, and modifications 
                committed to conference:
                                   Joe Barton,
                                   Paul Gillmor,
                From the Committee on Government Reform, for 
                consideration of secs. 343, 721, 811, 823, 824, 
                1103, 1104, and 3115 of the House bill, and 
                secs. 371, 619, 806, 823, 922, 1007, 1043, 
                1054, 1088, 1089, 1101, and 3115 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom Davis,
                                   C. Shays,
                From the Committee on Homeland Security, for 
                consideration of section 1026 of the House 
                bill, and section 1044 of the Senate amendment, 
                and modifications committed to conference:
                                   Peter T. King,
                                   D. Reichert,
                                   Bennie G. Thompson,
                From the Committee on International Relations, 
                for consideration of secs. 1021-1023, 1201-
                1204, 1206, title XIII, sec. 3113 and 3114 of 
                the House bill, and secs. 1014, 1021-1023, 
                1504, 1092, 1201-1208, 1210, 1214, title XIII, 
                secs. 3112 and 3113 of the Senate amendment, 
                and modifications committed to conference:
                                   Henry Hyde,
                                   James Leach,
                                   Tom Lantos,
                From the Committee on Resources, for 
                consideration of secs. 601, 602, and 1036 of 
                the House bill and section 601 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Richard Pombo,
                                   Greg Walden,
                From the Committee on Science, for 
                consideration of secs. 312 and 911 of the House 
                bill, and secs. 333, 874, and 1082 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Sherwood Boehlert,
                                   Mike Sodrel,
                From the Committee on Small Business, for 
                consideration of secs. 874 and 1093 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Donald Manzullo,
                                   Sue W. Kelly,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 312, 
                551, 601, 602, and 2845 of the House bill, and 
                secs. 333, 584, 601, 1042, 1095, 2842, 2851-
                2853, and 2855 of the Senate amendment, and 
                modifications committed to conference:
                                   Don Young,
                                   Frank LoBiondo,
                                   Jim Oberstar
                                           (except sections 1095, 2851, 
                                               2852, 2853 of the Senate 
                                               amendment),
                From the Committee on Veterans' Affairs, for 
                consideration of secs. 666, 682, 683, 687, 721, 
                and 923 of the Senate amendment, and 
                modifications committed to conference:
                                   Steven Buyer,
                                   John Boozman,
                                   Stephanie Herseth,
                                 Managers on the Part of the House.

                                   John W. Warner,
                                   John McCain,
                                   James M. Inhofe,
                                   Pat Roberts,
                                   Jeff Sessions,
                                   Susan M. Collins,
                                   John Ensign,
                                   Jim Talent,
                                   Joe Lieberman,
                                   Jack Reed,
                                   Daniel K. Akaka,
                                   Bill Nelson,
                                   E. Benjamin Nelson,
                                   Mark Dayton,
                                   Evan Bayh,
                                   H.R. Clinton,
                                   Saxby Chambliss,
                                   Lindsey Graham,
                                   John Cornyn,
                                   John Thune,
                                   Carl Levin,
                                   Ted Kennedy,
                                   Robert C. Byrd,
                                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 Senate to the bill (H.R. 5122) to 
authorize appropriations for fiscal year 2007 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 recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate 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 2007 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 $462.8 billion for 
the national defense function.
      The conferees recommend emergency authorization of 
appropriations for the Department of Defense of $70.0 billion 
for the costs associated with ongoing contingency operations in 
Iraq and Afghanistan, of which $23.8 billion is included for 
equipment reset costs for the Army and Marine Corps.
Summary table of authorizations
      The defense authorization act provides authorizations for 
appropriations, but does not generally provide budget 
authority. Budget authority is provided in the appropriations 
act.
      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 in other legislation.
      The following table summarizes authorizations included in 
the bill for fiscal year 2007 and, in addition, summarizes the 
implications of the conference action for the budget authority 
totals for national defense (budget function 050).


            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

Procurement overview
      The budget request included $82,901.0 million in 
Procurement for the Department of Defense.
      The House bill would authorize $84,592.4 million.
      The Senate amendment would authorize $85,722.8 million.
      The conferees agree to authorize $84,153.6 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


                              Budget Items

Aircraft Procurement, Army overview
      The budget request included $3,566.5 million in Aircraft 
Procurement, Army for the Department of Defense.
      The House bill would authorize $3,714.8 million.
      The Senate amendment would authorize $3,457.3 million.
      The conferees agree to authorize $3,451.4 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Missile Procurement, Army overview
      The budget request included $1,350.9 million in Missile 
Procurement, Army for the Department of Defense.
      The House bill would authorize $1,490.9 million.
      The Senate amendment would authorize $1,428.9 million.
      The conferees agree to authorize $1,328.9 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 included $2,301.9 million in 
Procurement of Weapons and Tracked Combat Vehicles, Army for 
the Department of Defense.
      The House bill would authorize $2,335.0 million.
      The Senate amendment would authorize $2,849.7 million.
      The conferees agree to authorize $2,278.6 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Procurement of Ammunition, Army overview
      The budget request included $1,903.1 million in 
Procurement of Ammunition, Army for the Department of Defense.
      The House bill would authorize $1,691.5 million.
      The Senate amendment would authorize $2,036.8 million.
      The conferees agree to authorize $1,984.3 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Other Procurement, Army overview
      The budget request included $7,718.6 million in Other 
Procurement, Army for the Department of Defense.
      The House bill would authorize $6,974.1 million.
      The Senate amendment would authorize $7,729.6 million.
      The conferees agree to authorize $7,687.5 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Aircraft Procurement, Navy overview
      The budget request included $10,868.8 million in Aircraft 
Procurement, Navy for the Department of Defense.
      The House bill would authorize $10,760.7 million.
      The Senate amendment would authorize $10,704.2 million.
      The conferees agree to authorize $10,734.1 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Weapons Procurement, Navy overview
      The budget request included $2,555.0 million in Weapons 
Procurement, Navy for the Department of Defense.
      The House bill would authorize $2,517.0 million.
      The Senate amendment would authorize $2,587.0 million.
      The conferees agree to authorize $2,549.0 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 included $789.9 million in Procurement 
of Ammunition, Navy and Marine Corps for the Department of 
Defense.
      The House bill would authorize $758.8 million.
      The Senate amendment would authorize $809.9 million.
      The conferees agree to authorize $797.9 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Shipbuilding and Conversion, Navy overview
      The budget request included $10,578.6 million in 
Shipbuilding and Conversion, Navy for the Department of 
Defense.
      The House bill would authorize $11,183.2 million.
      The Senate amendment would authorize $12,058.6 million.
      The conferees agree to authorize $11,021.6 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Other Procurement, Navy overview
      The budget request included $4,967.9 million in Other 
Procurement, Navy for the Department of Defense.
      The House bill would authorize $5,042.8 million.
      The Senate amendment would authorize $5,045.5 million.
      The conferees agree to authorize $4,995.0 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Procurement, Marine Corps overview
      The budget request included $1,273.5 million in 
Procurement, Marine Corps for the Department of Defense.
      The House bill would authorize $1,223.8 million.
      The Senate amendment would authorize $1,300.2 million.
      The conferees agree to authorize $1,253.8 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Aircraft Procurement, Air Force overview
      The budget request included $11,479.8 million in Aircraft 
Procurement, Air Force for the Department of Defense.
      The House bill would authorize $13,042.6 million.
      The Senate amendment would authorize $12,004.1 million.
      The conferees agree to authorize of $12,179.2 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Procurement of Ammunition, Air Force overview
      The budget request included $1,072.7 million for 
Procurement of Ammunition, Air Force for the Department of 
Defense.
      The House bill would authorize $1,076.7 million.
      The Senate amendment would authorize $1,076.7 million.
      The conferees agree to authorize $1,072.7 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Missile Procurement, Air Force overview
      The budget request included $4,204.1 million in Missile 
Procurement, Air Force for the Department of Defense.
      The House bill would authorize $4,171.5 million.
      The Senate amendment would authorize $4,219.1 million.
      The conferees agree to authorize $4,171.9 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Other Procurement, Air Force overview
      The budget request included $15,408.1 million in Other 
Procurement, Air Force for the Department of Defense.
      The House bill would authorize $15,434.6 million.
      The Senate amendment would authorize $15,434.6 million.
      The conferees agree to authorize $15,443.3 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Procurement, Defense-wide overview
      The budget request included $2,861.5 million in 
Procurement, Defense-wide for the Department of Defense.
      The House bill would authorize $2,856.5 million.
      The Senate amendment would authorize $2,980.5 million.
      The conferees agree to authorize $2,886.4 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


National Guard and Reserve Equipment
      The budget request included no funding in the National 
Guard and Reserve Equipment account for the Department of 
Defense.
      The House bill would authorize $318.0 million.
      The Senate amendment contained no similar funding.
      The Senate recedes.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Light Cargo Aircraft
      The budget request included $109.2 million in Aircraft 
Procurement, Army (APA) for the procurement of three Future 
Cargo Aircraft (FCA) and $15.8 million in Aircraft Procurement, 
Air Force (APAF) for the Light Cargo Aircraft (LCA).
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $109.2 
million.
      The conferees agree to authorize a decrease of $109.2 
million in APA, and an increase by the same amount in APAF.
      The conferees note that the Army initiated the FCA 
program to support an Army organic, time-sensitive cargo 
mission. The Air Force is also interested in procuring a 
similar type of aircraft and has been in the process of 
establishing a program office for a new intra-theater LCA. 
Since submission of the budget request, the Army and Air Force 
have signed a Memorandum of Understanding (MOU) regarding 
merging the two programs into a new program called the Joint 
Cargo Aircraft (JCA).
      As part of implementing that MOU, the Air Force is 
conducting F-series (functional analysis) studies and an 
independent analysis of alternatives to define the broader 
requirement for the aircraft. The Air Force's LCA would provide 
intra-theater lift mission support for the U.S. Transportation 
Command (USTRANSCOM), which is the distribution process owner 
for the Department of Defense. The conferees note that intra-
theater lift using fixed wing aircraft is performed most 
efficiently when it is coordinated by USTRANSCOM.
      The conferees also note that the Joint Chiefs of Staff 
Intra-theater Lift Capabilities Study Phase 1 and the Air 
Mobility Command's Mobility Roadmap are currently being 
developed. The conferees further agree that, until these 
documents are complete, the right mix and number of intra-
theater aircraft will not be determined. Therefore, it would be 
premature to procure aircraft until the Department completes 
these efforts and presents them to the congressional defense 
committees.

                       Items of Special Interest

Battleship transfer
      The House report accompanying H.R. 5122 (H. Rept. 109-
452) of the National Defense Authorization Act for Fiscal Year 
2007 contained an item of special interest to clarify 
instructions to the Navy regarding the transfer of the 
battleships USS Wisconsin and USS Iowa, included in the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163). The conferees understand that: (1) the Navy will 
require that the USS Wisconsin and USS Iowa be preserved in 
their present condition through continued use of cathodic 
protection, dehumidification, and other methods as needed; (2) 
any alterations to the battleships while in the custody of 
entities within the Commonwealth of Virginia and State of 
California, respectively, could be reverted; and (3) spare 
parts and unique equipment, such as 16-inch gun barrels and 
projectiles, if donated, will include a provision in the 
donation agreement that they can be recalled if the battleships 
are returned to the Navy in the event of a national emergency. 
The conferees agree that these measures would meet the intent 
of the instructions contained in the House report.
Study on replacement of the T-38 training aircraft
      The Senate report accompanying S. 2766 (S. Rept. 109-254) 
of the National Defense Authorization Act for Fiscal Year 2007 
directed the Secretary of the Air Force to conduct a study that 
would determine the suitability of T-45 and Korean built KT-50 
training aircraft to replace the T-38 training aircraft.
      The conferees direct the Secretary to conduct a study 
that would determine the suitability of the T-45, and any other 
appropriate aircraft, to replace the T-38, and to submit a 
report on the results of this study to the congressional 
defense committees by March 15, 2007.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 101-104)
      The House bill contained provisions (secs. 101-104) that 
would authorize the recommended fiscal year 2007 funding levels 
for Procurement Army, Navy, Marine Corps, Air Force, and 
Defense-wide activities.
      The Senate amendment contained similar provisions (secs. 
101-104).
      The conference agreement includes these provisions.

                        Subtitle B-Army Programs

Sense of Congress on future multiyear procurement authority for the 
        Family of Medium Tactical Vehicles (sec. 111)
      The House bill contained a provision (sec. 111) that 
would authorize the Secretary of the Army to enter into a 3-
year multiyear procurement contract, beginning with fiscal year 
2008, for procurement of the Family of Medium Tactical Vehicles 
(FMTV).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of Congress on the use of a multiyear procurement 
contract to extend FMTV procurement beyond the current 5-year 
multiyear contract. The amendment would also recommend that the 
Army incorporate product improvements from lessons learned from 
Operation Enduring Freedom (OEF) and Operation Iraqi Freedom 
(OIF) and from product improvement programs in the area of 
force protection, survivability, reliability, network 
communications situational awareness, and safety.
      The conferees recognize that the current 5-year multiyear 
procurement for FMTV A1R vehicles ends with fiscal year 2007 
funding and calendar year 2008 deliveries. The conferees 
understand that 28,000 trucks have been produced to date, which 
falls short of the Army requirement for 85,000 trucks. The 
Army's Tactical Wheeled Vehicle (TWV) Modernization Strategy 
Report to Congress stated that ``As a risk mitigator, use of 
contract options will be sought to permit extension of current 
production models to avoid any breaks in vehicle supply.'' The 
conferees note that the Army has saved approximately 6-10 
percent on the costs of a 3-year multiyear contract versus 
single year procurement under three successive multiyear 
contracts. The conferees are concerned that single year 
contract awards would be costly because of the outstanding 
requirement and costly given the current savings provided by 
the current multiyear contract.
      Furthermore, the conferees also note that a multiyear 
contract would potentially assure favorable, cost-effective 
prices for a more advanced FMTV configuration that would 
incorporate lessons learned from OEF and OIF, as well as ensure 
stability in the industrial base.
      The conferees expect the Department of the Army to comply 
with all documentation and certifications requirements of 
section 2306(b) of title 10, United States Code.
Multiyear procurement authority for MH-60R helicopter and mission 
        equipment (sec. 112)
      The House bill contained a provision (sec. 112) that 
would authorize the Secretary of the Army, acting as the 
executive agent for the Department of the Navy, to enter into a 
5-year, multiyear procurement contract for 144 MH-60R 
helicopters and associated mission equipment beginning with the 
fiscal year 2007 program year. Further, the provision would 
require that the multiyear procurement contract authority be 
executed in accordance with section 2306b of title 10, United 
States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Secretary of the Army, acting as the executive agent for 
the Department of the Navy, to enter into a multiyear contract, 
beginning with fiscal year 2007, for the procurement of MH-60R 
helicopters. The amendment would also authorize the Secretary 
of the Navy to enter into a multiyear contract for the 
procurement of associated mission equipment for MH-60R 
helicopters.
      The conferees expect the Secretary of the Army and the 
Secretary of the Navy to submit certifications required by 
section 2306b before approving multiyear contracts for MH-60R 
helicopters and associated mission equipment. The conferees 
also understand that the Department of the Army and the 
Department of the Navy intend to procure at least 144 MH-60R 
helicopters and associated mission equipment.
Funding profile for modular force initiative of the Army (sec. 113)
      The House bill contained a provision (sec. 113) that 
would require the Secretary of the Army to include the M1A2 
Abrams SEP tank and Bradley A3 fighting vehicles within the 
Army's modularity funding profile beginning with the 2008 
budget submission, in accordance with the March 2006 Army 
report to Congress entitled ``The Army Modular Initiative.''
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Bridge to Future Networks program (sec. 114)
      The House bill contained a provision (sec. 114) that 
would limit to not more than 70 percent, the amounts authorized 
to be appropriated for the bridge to Future Networks program, 
until the Secretary of the Army submits a report to the 
congressional defense committees on an analysis of the 
integration of the Joint Network Node (JNN) and the Warfighter 
Information Network-Tactical (WIN-T).
      The Senate amendment contained a similar provision (sec. 
111) that would withhold 50 percent of the funds authorized to 
be appropriated for the procurement of the JNN until the 
Secretary provides a report to the congressional defense 
committees on the Army's strategy for the convergence of the 
JNN, WIN-T, and the Mounted Battle Command On-the-Move 
communications programs.
      The Senate recedes with a clarifying amendment.
Comptroller General report on the contract for the Future Combat 
        Systems program (sec. 115)
      The Senate amendment contained a provision (sec. 112) 
that would require the Comptroller General to submit to the 
congressional defense committees a report on the participation 
and activities of the lead systems integrator in the Future 
Combat Systems (FCS) program under the contract of the Army for 
the FCS program.
      The House bill contained no similar provision.
      The House recedes.
Priority for allocation of replacement equipment to operational units 
        based on combat mission deployment schedule (sec. 116)
      The Senate amendment contained a provision (sec. 114) 
that would establish a priority for the distribution of new and 
combat serviceable equipment for active and reserve component 
forces to units scheduled for mission deployment, employment, 
or both regardless of component. Priority for the distribution 
of new and combat serviceable equipment would then be given to 
Army National Guard units in States that have experienced a 
major disaster, as determined under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121-
5206), and may require replacement equipment to respond to 
future emergencies or disasters.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
authority, as provided for in the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375), by directing the Secretary of Defense to ensure that 
priority for the distribution of equipment using the amounts 
authorized to be appropriated for the procurement of 
replacement equipment for the distribution of new and combat 
serviceable equipment, with associated support and test 
equipment, for active and reserve component forces be given to 
operational units based on combat mission deployment schedule 
regardless of component.
      The conferees recognize that National Guard units 
operating in States that have experienced a major disaster, as 
determined under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121-5206), may require 
replacement equipment to respond to future natural and man-made 
disasters. The conferees direct the Secretary of Defense to 
conduct a study on the priority distribution strategy for 
replacing National Guard equipment and to submit a report on 
the results of the study to the congressional defense 
committees no later than April 1, 2007. The conferees expect 
the Department to allocate equipment based on the priorities 
determined by this analysis.

                       Subtitle C--Navy Programs

CVN-21 class aircraft carrier procurement (sec. 121)
      The Senate amendment contained a provision (sec. 121) 
that would authorize the Secretary of the Navy to incrementally 
fund procurement of CVN-21 class aircraft carriers over four 
year periods, commencing with CVN-78 procurement in fiscal year 
2008. The provision would also authorize the Secretary to enter 
into a contract during fiscal year 2007 for advance procurement 
with respect to the CVN-21 class aircraft carriers designated 
CVN-79 and CVN-80.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary to incrementally fund procurement of a CVN-21 
class aircraft carrier designated CVN-78, CVN-79, and CVN-80, 
as applicable, over four year periods, commencing with the 
fiscal year of the contract for construction of the applicable 
aircraft carrier.
Adherence to Navy cost estimates for CVN-21 class of aircraft carriers 
        (sec. 122)
      The House bill contained a provision (sec. 122) that 
would limit the total amount to be obligated or expended from 
funds appropriated or otherwise made available in Shipbuilding 
and Conversion, Navy, or for any other procurement account, for 
the detail design, non-recurring engineering and construction 
of the lead ship of the CVN-21 class aircraft carrier program 
to $10.5 billion. The provision would also limit the total 
amount to be obligated or expended for the construction of the 
follow-on ships of the CVN-21 class aircraft carrier program to 
$8.1 billion. The provision would allow the Secretary of the 
Navy to adjust the limitation amounts for: (1) economic 
inflation; (2) changes in Federal, State, or local laws enacted 
after September 30, 2006; (3) outfitting and post-delivery 
costs; and (4) insertion of new technology. The insertion of 
new technology would be limited to those technologies that 
could be used to either lower life cycle costs or meet an 
emerging threat. The provision would also require the Secretary 
to report any adjustment to the cost limitation with the 
submission of the annual budget request.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would also 
allow the Secretary to make adjustments for amounts of 
increases or decreases to cost attributable to: (1) non-
recurring design and engineering pursuant to achieving 
compliance with the cost limitation; and (2) correction of 
deficiencies that affect safety of ship, safety of personnel, 
or otherwise preclude safe operations and crew certifications.
      The amendment would not provide the Secretary authority 
to adjust the limitation amounts for cost increases 
attributable to congressional actions that impact on the 
shipbuilding program of record. However, the conferees 
understand that such action could have significant impact on 
program cost, and therefore direct that the Secretary include, 
within the annual written notice to the congressional defense 
committees regarding changes to the cost limitations, an 
assessment of any negative impact of congressional action on 
program costs.
      The conferees understand that the CVN-21 class budget 
represents the Navy's risk-balanced assessment of the cost for 
completing design and construction of the future class of 
nuclear powered aircraft carriers. The conferees recognize that 
many uncertainties remain with regard to completion of CVN-21 
design and construction, including innumerable, inestimable 
events which will impact cost during the next 15 years of 
performance on the program. Accordingly, the amendment would 
allow adjustment to the cost limitation for non-recurring 
design and engineering in order to enable the Navy to reduce 
this risk in the execution of the design effort.
      The conferees expect that the Navy will ultimately manage 
program execution within the bounds of the budget estimate. 
Accordingly, the conferees understand that compliance with this 
provision will require procurement cost trade-offs to be 
accomplished, which could reduce the capabilities, system 
performance, safety, crew quality of life, future growth 
margin, or other important factors in the design and 
construction of the CVN-21 class. The conferees believe that 
most of these trade-offs will be within the purview of the 
program office and requirements office. However, the Secretary 
shall notify the Committees on Armed Services of the Senate and 
the House of Representatives not less than 30 days prior to 
implementing any cost-driven reduction which would unacceptably 
impact safety, crew quality of life, or otherwise preclude the 
program from meeting the requirements of the CVN-21 Operational 
Requirements Document. The Secretary's notification shall 
identify the specific characteristic proposed to be reduced and 
the cost avoidance provided by such reduction.
Modification of limitation on total cost of procurement of CVN-77 
        aircraft carrier (sec. 123)
      The Senate amendment contained a provision (sec. 123) 
that would increase the limitation on the total cost of 
procurement for the CVN-77 aircraft carrier to $6.057 billion.
      The House bill contained no similar provision.
      The House recedes.
Construction of first two vessels under the DDG-1000 Next-Generation 
        Destroyer program (sec. 124)
      The Senate amendment contained a provision (sec. 122) 
that would authorize the Secretary of the Navy to enter into a 
contract to fund the detail design and construction of the 
first two DDG-1000 class destroyers in Shipbuilding and 
Conversion, Navy (SCN), with funding split over fiscal years 
2007 and 2008.
      The House bill contained a similar provision (sec. 127).
      The House recedes with a technical amendment.
      The conferees understand that the Secretary has requested 
split funding authority for the two lead ships of the DDG-1000 
class as a one-time program exception to the full funding 
policy in order to support the competitive procurement of the 
follow-on ships of the program. The conferees agree that there 
is sufficient benefit to authorizing this one-time exception 
with the expectation that the Secretary will structure the DDG-
1000 program so that each ship, after the first two ships, is 
procured using the method of full funding in a single year.
Adherence to Navy cost estimates for LHA Replacement amphibious assault 
        ship program (sec. 125)
      The House bill contained a provision (sec. 123) that 
would limit the total amount to be obligated or expended from 
funds appropriated or otherwise made available in Shipbuilding 
and Conversion, Navy, or for any other procurement account, for 
the detail design, non-recurring engineering and construction 
of the lead ship of the LHA Replacement amphibious assault 
ship, LHA-6, to $2.81 billion. The provision would allow the 
Secretary of the Navy to adjust the limitation amounts for: (1) 
economic inflation; (2) changes in Federal, State, or local 
laws enacted after September 30, 2006; (3) outfitting and post-
delivery costs; and (4) insertion of new technology. The 
insertion of new technology would be limited to those 
technologies that could be used to either lower life-cycle 
costs or meet an emerging threat. The provision would require 
the Secretary to report any adjustment to the cost limitation 
with the submission of the annual budget request.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would also 
allow the Secretary to make adjustments for amounts of 
increases or decreases to cost attributable to: (1) non-
recurring design and engineering pursuant to achieving 
compliance with the cost limitation; (2) correction of 
deficiencies that affect safety of ship, safety of personnel, 
or otherwise preclude safe operations and crew certifications; 
and (3) the effect of Hurricane Katrina in August 2005 or other 
force majeure contract modifications.
      The amendment would not provide the Secretary authority 
to adjust the limitation amounts for cost increases 
attributable to congressional actions that impact on the 
shipbuilding program of record. However, the conferees 
understand that such action could have significant impact on 
program cost, and therefore direct that the Secretary include, 
within the annual written notice to the congressional defense 
committees regarding changes to the cost limitations, an 
assessment of any negative impact of congressional action on 
program costs.
      The conferees understand that the LHA-6 budget represents 
the Navy's risk-balanced assessment of the cost for completing 
design and construction of the future LHA Replacement ship. The 
conferees recognize that many uncertainties remain with regard 
to completion of LHA-6 design and construction, including 
innumerable, inestimable events which will impact cost during 
the next 6 years of performance on the program. Accordingly, 
the amendment would allow adjustment to the cost limitation for 
non-recurring design and engineering in order to enable the 
Navy to reduce this risk in the execution of the design effort.
      The conferees expect that the Navy will ultimately manage 
program execution within the bounds of the budget estimate. The 
conferees understand that compliance with this provision will 
require procurement cost trade-offs to be accomplished, which 
could reduce the capabilities, system performance, safety, crew 
quality of life, future growth margin, or other important 
factors in the design and construction of the LHA Replacement 
ship. The conferees believe that most of these trade-offs will 
be within the purview of the program office and requirements 
office. However, the Secretary shall notify the Committees on 
Armed Services of the Senate and the House of Representatives 
not less than 30 days prior to implementing any cost-driven 
reduction which would unacceptably impact safety, crew quality 
of life, or otherwise preclude the program from meeting the 
requirements of the LHA Replacement program Capability 
Development Document. The Secretary's notification shall 
identify the specific characteristic proposed to be reduced and 
the cost avoidance provided by such reduction.
Cost limitation for San Antonio (LPD-17) class amphibious ship program 
        (sec. 126)
      The House bill contained a provision (sec. 124) that 
would limit the total amount to be obligated or expended from 
funds appropriated or otherwise made available for Shipbuilding 
and Conversion, Navy, or for any other procurement account, for 
eight San Antonio class amphibious ships (LPD-18, LPD-19, LPD-
20, LPD-21, LPD-22, LPD-23, LPD-24, and LPD-25) to the cost 
estimates submitted for those ships with the fiscal year 2007 
budget request. The provision would allow the Secretary of the 
Navy to adjust the limitation amounts for economic inflation; 
changes in Federal, State, or local laws enacted after 
September 30, 2006; outfitting and post-delivery costs; and the 
amounts of insertion of new technology. The insertion of new 
technology would be limited to those technologies that could be 
used to either lower life cycle costs or meet an emerging 
threat. The provision would require the Secretary to report any 
adjustment to the cost limitation with the submission of the 
annual budget request.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would raise the 
amounts of the limitation for the LPD-22, LPD-23, LPD-24, and 
LPD-25 San Antonio class amphibious ships to the contract 
ceiling prices for those four ships. The amendment would also 
allow the Secretary to make adjustments for contract cost 
adjustments directly attributed to the effect of Hurricane 
Katrina or other force majeure contract modifications, and for 
amounts of closeout costs associated with completion of the 
LPD-17 class program.
Multiyear procurement authority for V-22 tiltrotor aircraft program 
        (sec. 127)
      The House bill contained a provision (sec. 125) that 
would authorize the Secretary of the Navy, acting as the 
executive agent for the Secretary of the Air Force and the 
Commander, U.S. Special Operations Command (USSOCOM), to enter 
into a multiyear contract, beginning with the fiscal year 2008 
program year, for the procurement of 211 V-22 tiltrotor 
aircraft, of which not more than 185 would be in the MV-22 
configuration and not more than 26 would be in the CV-22 
configuration.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow the 
Secretary of the Navy, acting as the executive agent for the 
Secretary of the Air Force and the Commander, USSOCOM, to enter 
into a multiyear contract, beginning with the fiscal year 2008 
program year, for the procurement of V-22 tiltrotor aircraft.
      The conferees expect that the Secretary of the Navy will 
procure V-22 tiltrotor aircraft at the quantity that was 
requested in the budget.
Alternative technologies for future surface combatants (sec. 128)
      The House bill contained a provision (sec. 128) that 
would express the sense of Congress that the Navy should make 
greater use of alternative technologies, including nuclear 
power, as a means of vessel propulsion for its future fleet of 
surface combatants.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would expand 
the definition of alternative technologies for propulsion of 
future major surface combatants to include integrated power 
systems and fuel cells. The amendment would also require that 
the Secretary of the Navy include integrated power systems, 
fuel cells, and nuclear power as propulsion alternatives to be 
evaluated within the analysis of alternatives for future major 
surface combatant ships.
Sense of Congress regarding the size of the attack submarine force 
        (sec. 129)
      The House bill contained a provision (sec. 121) that 
would amend section 5062 of title 10, United States Code, to 
require the Secretary of Defense to maintain a minimum force 
structure of 48 operational attack submarines.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of Congress that the Secretary of the Navy should 
take all reasonable effort to accelerate the construction of 
Virginia class submarines to maintain the attack submarine 
force structure at not less than 48 submarines and (if the 
number of attack submarines should fall below 48), to minimize 
the period the attack submarine force structure remains below 
48 vessels.
      The conferees are aware that the earliest possible date 
to accelerate Virginia class construction to 2 boats per year 
is 2010, which would require advance procurement funding 
commencing in 2008. Therefore, the conferees direct the 
Secretary to submit a report to the congressional defense 
committees with the fiscal year 2008 budget request that would 
identify the necessary planning and programming required to 
increase Virginia class construction to 2 boats per year 
commencing in fiscal year 2010. The report shall consider 
program cost, shipyard workload impacts, budget implications, 
and other significant factors that would weigh in the decision 
process regarding acceleration of attack submarine 
construction. The report shall also identify the operational 
impact associated with delaying the increase in attack 
submarine construction until 2012 in accordance with the 
program of record.
Quality control in procurement of ship critical safety items and 
        related services (sec. 130)
      The Senate amendment contained a provision (sec. 809) 
that would require the Secretary of Defense to prescribe in 
regulation a quality control policy for the procurement of ship 
critical safety items and the procurement of modifications, 
repair, and overhaul of such items.
      The House bill contained a similar provision (sec. 126).
      The House recedes.
      The conferees agree to extend the date for the submission 
of the Comptroller General's report to the congressional 
defense committees required by the Senate report accompanying 
S. 2766 (S. Rept. 109-254) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 until February 1, 2008.
      The conferees expect the Comptroller General to brief the 
congressional defense committees on the initial findings of the 
report by April 1, 2007.

                     Subtitle D--Air Force Programs

Bomber force structure (sec. 131)
      The House bill contained a provision (sec. 131) that 
would prohibit the Air Force from retiring any B-52 aircraft, 
except for the one B-52 aircraft no longer in use by the 
National Aeronautics and Space Administration for testing. The 
provision would require the Air Force to maintain a minimum of 
44 B-52H combat coded aircraft until the year 2018 or until a 
long-range strike replacement aircraft with equal or greater 
capability than the B-52H model has attained initial 
operational capability.
      The Senate amendment contained similar provisions (secs. 
144-145). Section 144 would allow the Secretary of the Air 
Force to retire up to 18 B-52H bomber aircraft in fiscal year 
2007. Section 145 would prevent the obligation or expenditure 
of funds for the retirement or dismantling of any of the 93 B-
52H bomber aircraft in service in the Air Force as of June 1, 
2006, until the Secretary submits to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on the amount and type of bomber force structure 
required to carry out the National Security Strategy of the 
United States.
      The Senate recedes with an amendment that would authorize 
the Secretary to retire up to 18 B-52H bomber aircraft, but 
maintain not less than 44 combat coded B-52H bomber aircraft, 
beginning 45 days after the Secretary submits to the Committees 
on Armed Services of the Senate and the House of 
Representatives a report prepared by the Institute for Defense 
Analyses on the amount and type of bomber force structure 
required to carry out the National Security Strategy of the 
United States. The amendment would also prohibit retirement of 
more than 18 B-52s until a long-range strike replacement 
aircraft with equal or greater capability has attained initial 
operational capability status or until January 1, 2018, 
whichever occurs first.
      The conferees direct the Secretary to include in the 
report:
      (1) the plans to modernize the Air Force bomber fleets;
      (2) the amount and type of bomber force required in 
executing two overlapping ``swift defeat'' campaigns involving 
both conventional and strategic nuclear missions;
      (3) a justification of the cost and projected savings 
associated with any reductions to the B-52H bomber aircraft 
fleet;
      (4) the life expectancy of each bomber aircraft to remain 
in the bomber force structure; and
      (5) the capabilities of the bomber force structure that 
would be replaced, augmented, or superceded by any new bomber 
aircraft.
      The conferees expect the Secretary to maintain all 
retired B-52H bomber aircraft, retired in fiscal year 2007 or 
later, in a condition known as ``Type-1000 storage'' at the 
Aircraft Maintenance and Regeneration Center.
Strategic airlift force structure (sec. 132)
      The House bill contained a provision (sec. 132) that 
would require the Air Force to maintain a minimum strategic 
airlift force of 299 aircraft beginning in fiscal year 2009, 
and would repeal section 132 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the repeal of any portion of section 132.
Limitation on retirement of U-2 aircraft (sec. 133)
      The House bill contained a provision (sec. 133) that 
would preclude the Department of Defense from retiring U-2 
aircraft in fiscal year 2007. The provision would permit 
retirement after fiscal year 2007 only if the Secretary of 
Defense were able to certify to Congress that the U-2's 
intelligence, surveillance, and reconnaissance (ISR) 
capabilities no longer contribute to mitigating any gaps in ISR 
capabilities identified in the 2006 Quadrennial Defense Review 
report.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Multiyear procurement authority for F-22A Raptor fighter aircraft (sec. 
        134)
      The House bill contained a provision (sec. 134) that 
would authorize the Secretary of the Air Force, beginning in 
program year 2007, to enter into a 3-year multiyear contract 
for procurement of up to 60 F-22A Raptor fighter aircraft. The 
provision would allow the multiyear contract to be entered into 
only after the Secretary of Defense certifies that the 
conditions specified in subsection (a) of section 2306b of 
title 10, United States Code, have been met, subject to a 30-
day congressional notice-and-wait period.
      The Senate amendment contained similar provisions (secs. 
146-147) that would prohibit the use of incremental funding for 
the procurement of F-22A fighter aircraft, authorize the 
Secretary of the Air Force to enter into a multiyear contract 
for the procurement of up to 60 F-22A fighter aircraft and up 
to 120 F119 engines, including not more than 13 spare F119 
engines, beginning with the fiscal year 2007 program year.
      The Senate recedes with an amendment that would:
      (1) prohibit the use of incremental funding for the 
procurement of F-22A fighter aircraft;
      (2) require the Secretary of Defense to certify to the 
congressional defense committees that the multiyear contract is 
in compliance with each of the conditions specified in 
subsection (a) of section 2306b, as well as the certification 
required in subsection (i)(1)(A) of section 2306b;
      (3) require the Secretary, in certifying that the cost 
savings are substantial, to duly consider the historical cost 
savings that led to a decision to proceed with a multiyear 
procurement contract under section 2306b of title 10, United 
States Code, in the case of previous aviation-related multiyear 
contracts authorized by law dating back to fiscal year 1982; 
and
      (4) require the Secretary of Defense to provide a new F-
22A cost analysis, prepared by a federally-funded research and 
development center other than the Institute for Defense 
Analyses, to the congressional defense committees.
      The conferees expect that the Secretary of Defense's 
certification of projected multiyear procurement savings will 
include a consideration of savings, relative to historical 
experience, that are attributable to economic order quantity 
investments, number of units procured, length of the multiyear 
contracts, and cost reduction initiatives.
Limitation on retirement of KC-135E aircraft during fiscal year 2007 
        (sec. 135)
      The House bill contained a provision (sec. 135) that 
would prohibit the Air Force from retiring more than 29 KC-135E 
aircraft during fiscal year 2007. Beginning in fiscal year 
2007, the provision would also require the Secretary to 
maintain all retired KC-135Es, after September 30, 2006, in a 
condition that would allow recall of that aircraft for future 
service in the Air Force Reserve, Guard, or regular forces 
aerial refueling force structure.
      The Senate amendment contained a provision (sec. 143) 
that would authorize the Secretary to retire up to and 
including 29 Air Force KC-135E aircraft.
      The Senate recedes.
      The conferees expect the Secretary to maintain all KC-
135E aircraft, retired in fiscal year 2007 or later, in a 
condition known as ``Type-1000 storage'' at the Aircraft 
Maintenance and Regeneration Center.
Limitation on retirement of F-117A aircraft during fiscal year 2007 
        (sec. 136)
      The House bill contained a provision (sec. 136) that 
would limit the number of F-117A aircraft to be retired by the 
Secretary of the Air Force in fiscal year 2007 to 10 aircraft. 
The provision would also require the Secretary to maintain each 
F-117A aircraft, retired after September 30, 2006, in a 
condition that would allow recall of that aircraft for future 
service.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees expect the Secretary to maintain all F-117A 
aircraft, retired in fiscal year 2007 or later, in a condition 
known as ``Type-1000 storage'' at the Aircraft Maintenance and 
Regeneration Center.
Limitation on retirement of C-130E tactical airlift aircraft (sec. 137)
      The Senate amendment contained a provision (sec. 142) 
that would prohibit the Secretary of the Air Force from 
retiring any C-130E/H tactical airlift aircraft in fiscal year 
2007.
      The House bill contained no similar provision.
      The House recedes with an amendment that would allow the 
Secretary to retire up to 51 C-130E tactical airlift aircraft.
      The conferees expect the Secretary to maintain all C-130E 
aircraft, retired in fiscal year 2007 or later, in a condition 
known as ``Type-1000 storage'' at the Aircraft Maintenance and 
Regeneration Center.
Procurement of Joint Primary Aircraft Training System aircraft after 
        fiscal year 2006 (sec. 138)
      The Senate amendment contained a provision (sec. 141) 
that would require any Joint Primary Aircraft Training System 
aircraft procured after fiscal year 2006 to be procured through 
a contract under part 15 of the Federal Acquisition Regulations 
(FAR), relating to acquisition of items by negotiated contract, 
rather than through a contract under part 12 of the FAR, 
relating to acquisition of commercial items.
      The House bill contained no similar provision.
      The House recedes.
Minuteman III intercontinental ballistic missiles modernization (sec. 
        139)
      The Senate amendment contained a provision (sec. 149) 
that would restrict the Department of Defense from terminating 
any Minuteman III Intercontinental Ballistic Missile (ICBM) 
modernization program or withdraw any Minuteman III ICBM from 
the active force until 30 days after the Secretary of Defense 
submits to the congressional defense committees a report. The 
provision would also make available $5.0 million of the amounts 
available for research, development, test, and evaluation, Air 
Force, for Remote Visual Assessment for security of the silos 
housing ICBMs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would place the 
findings in the statement of managers, and that would reflect 
the conference outcome of the amounts available for Remote 
Visual Assessment in the tables of this report in research, 
development, test, and evaluation, Air Force.
      The conferees make the following findings: (1) In the 
statement of managers accompanying the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163), 
the conferees state that the policy of the United States ``is 
to deploy a force of 500 ICBMs.'' The conferees further note 
``that unanticipated strategic developments may compel the 
United States to make changes to this force structure in the 
future;'' (2) The Quadrennial Defense Review (QDR) Report of 
2006 finds that maintaining a robust nuclear deterrent 
``remains a keystone of United States national power.'' 
However, notwithstanding that finding and without providing any 
specific justification for the recommendation, the QDR 
recommends reducing the number of deployed Minuteman III ICBMs 
from 500 to 450 beginning in fiscal year 2007. The QDR also 
fails to identify what unanticipated strategic developments 
compelled the United States to reduce the ICBM force structure; 
and (3) General James Cartwright, Commander, U.S. Strategic 
Command, testified before the Committee on Armed Services of 
the Senate that the reduction in deployment of Minuteman III 
ICBMs is required so that the 50 missiles withdrawn from the 
deployed force could be used for test assets and spares to 
extend the life of the Minuteman III ICBMs well into the 
future. If spares are not modernized, the Air Force may not 
have sufficient replacement missiles to sustain the force size.

              Subtitle E--Joint and Multi-Service Matters

Clarification of limitation on initiation of new unmanned aerial 
        vehicle systems (sec. 141)
      The conferees agree to include a provision that would 
amend section 142 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-162) to explicitly state that 
the section applies to the procurement of new unmanned aerial 
vehicle (UAV) systems, and to provide clarifying language for 
those systems for which an exception is made, including: any 
UAV system or any component thereof, as described in section 
142, if as of January 6, 2006, the UAV system or any component 
thereof to be procured was otherwise currently under contract 
or had previously been procured by the Department of Defense, 
or funds had been appropriated but not yet obligated for the 
UAV system or any component thereof. The conferees also agree 
to authorize the Undersecretary of Defense for Acquisition, 
Technology, and Logistics (AT&L) to delegate this authority 
within the Office of AT&L.

                   Legislative Provisions Not Adopted

Reports on Army modularity initiative
      The Senate amendment contained a provision (sec. 113) 
that would require the Secretary of the Army to submit a report 
to the congressional defense committees, not later than March 
15, 2007, on specific costs, funding, and equipment 
distribution of the Army's modularity initiative. The provision 
would also require that the Comptroller General conduct an 
annual review of the modularity initiative and the progress 
that the Army is making in the equipping of the active and 
reserve components.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the reporting requirements of 
this provision are incorporated elsewhere in this report.
Funding for the Call for Fire Trainer/Joint Fires and Effects Trainer 
        System
      The House bill contained a provision (sec. 115) that 
would authorize $4.0 million for the procurement of the Call 
for Fire Trainer/Joint Fires and Effects Trainer System for the 
Army.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conference outcome is reflected in the tables of this 
report in Other Procurement, Army, line number 169.
Air Force program
      The House bill contained a provision (sec. 137) that 
would authorize an increase of $6.0 million in section 103 for 
Other Procurement, Air Force for Science Engineering Lab Data 
Integration at Ogden Air Logistics Center, Utah. This would be 
offset by an equal decrease in PE 62301E for Information and 
Communications Technology.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conference outcome is reflected in the tables of this 
report.
Multi-spectral imaging capabilities
      The Senate amendment contained a provision (sec. 148) 
that would: (1) express the sense of the Senate that the Air 
Force should investigate ways to retain the multi-spectral 
imaging capabilities of the Senior Year Electro-optical 
Reconnaissance System (SYERS-2) that would otherwise be lost 
with the retirement of the U-2 aircraft; and (2) require that 
the Secretary of the Air Force provide a plan for migrating 
these multi-spectral capabilities to the Global Hawk unmanned 
aerial vehicle.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees expect the Secretary to develop a plan for 
migrating the multi-spectral imaging capability provided by the 
SYERS-2 capabilities from the U-2 to the Global Hawk, and 
provide the results of that plan to the congressional defense 
committees with the submission of the fiscal year 2008 budget 
request.

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

                              Budget Items

Research, Development, Test, and Evaluation overview
      The budget request included $73,156.0 million in 
Research, Development, Test, and Evaluation for the Department 
of Defense.
      The House bill would authorize $74,054.6 million.
      The Senate amendment would authorize $74,268.1 million.
      The conferees agree to authorize $73,608.0 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Research, Development, Test, and Evaluation, Army overview
      The budget request included $10,855.6 million in 
Research, Development, Test, and Evaluation, Army for the 
Department of Defense.
      The House bill would authorize $10,925.2 million.
      The Senate amendment would authorize $11,167.0 million.
      The conferees agree to authorize $10,876.6 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Research, Development, Test, and Evaluation, Navy overview
      The budget request included $16,912.2 million in 
Research, Development, Test, and Evaluation, Navy for the 
Department of Defense.
      The House bill would authorize $17,377.8 million.
      The Senate amendment would authorize $17,459.8 million.
      The conferees agree to authorize $17,383.9 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Sea Fighter (X-Craft)
      The House bill would authorize $25.7 million in PE 63123N 
for modifications to Sea Fighter to improve the ship's 
survivability, command and control, armament, and other ship 
systems to make Sea Fighter an operationally deployable asset.
      The Senate amendment contained no similar funding.
      The conferees agree to authorize $23.0 million in PE 
63123N for Sea Fighter modifications.
      Of the amount authorized, the conferees direct the 
Secretary of the Navy to utilize the additional funding to: (1) 
improve aviation capabilities; (2) improve damage control and 
firefighting capabilities; (3) improve the quality of and 
increase the capacity of berthing and messing facilities for 12 
additional crew; (4) provide command and control upgrades; (5) 
add weapons (offensive and defensive); and (6) make topside 
changes to reduce radiation hazards. The conferees expect the 
Secretary to utilize Sea Fighter in support of Navy operations 
and to develop and validate operational concepts for littoral 
warfare.
      The conferees are aware that on September 6, 2006, Sea 
Fighter sustained significant damage while operating off of the 
Pacific coast. The conferees expect the Secretary to make all 
repairs necessary to restore Sea Fighter to previous capability 
and make available for operational use.
Research, Development, Test, and Evaluation, Air Force overview
      The budget request included $24,396.8 million in Research 
Development, Test, and Evaluation, Air Force for the Department 
of Defense.
      The House bill would authorize $24,810.0 million.
      The Senate amendment would authorize $23,970.9 million.
      The conferees agree to authorize $24,236.0 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


Transformational satellite communications
      The budget request included $867.0 million in PE 63845F 
for transformational satellite communications (TSAT).
      The House bill would authorize a decrease of $80.0 
million in PE 63845F for TSAT.
      The Senate amendment would authorize a decrease of $70.0 
million in PE 63845F for TSAT.
      The conferees agree to authorize $767.0 million in PE 
63845F for TSAT, a decrease of $100.0 million due to 
unexecutable growth in the program budget.
      While fully supportive of the restructured TSAT program, 
the conferees note that the budget request for fiscal year 2007 
represents a 100 percent increase over fiscal year 2006 
appropriated amount of $429.0 million. The Government 
Accountability Office questions whether the contractors 
associated with the space segment of the TSAT program will be 
able to increase development activities to the requested fiscal 
year 2007 budget level, hence the recommended reduction.
      The conferees direct the Secretary of the Air Force to 
submit a report to the congressional defense committees by 
February 15, 2007, explaining what actions the Air Force has 
taken to address the remaining concerns raised by the TSAT 
Program Review Group and the Government Accountability Office, 
including: (1) the need to significantly refine requirements so 
that program content can be matched to budget constraints, and 
how the Department plans to control requirements to prevent 
problems associated with ``requirements creep''; (2) the need 
to adequately staff the TSAT program office with experienced 
space acquisition professionals; (3) the status of refining key 
performance parameters so they provide specificity and 
validation metrics; and (4) the implications for other 
programs, such as Space Radar and Future Combat System, of a 
less capable initial block of TSAT satellites.
Space Radar
      The budget request included $266.4 million in PE 63858F 
for Space Radar (SR) program.
      The House bill would authorize a decrease of $30.0 
million in PE 63858F.
      The Senate amendment would authorize a decrease of $66.4 
million in PE 63858F.
      The conferees agree to authorize $200.0 million in PE 
63858F, a decrease of $66.4 million, and recommend that the 
remaining funds be directed toward technology development, 
system engineering, and concept definition that assumes a 
single SR system that will meet joint requirements and employ a 
joint concept of operations with the intelligence community. 
The conferees are aware that the SR program is being 
restructured, and may benefit from an incremental, block 
approach similar to that chosen for the Transformational 
Satellite (TSAT) program. The conferees would welcome such an 
approach, however, until further definition of the program is 
provided, the conferees do not believe it is prudent to move 
beyond technology development, systems engineering, and concept 
definition activities. Further definition would include an 
agreed upon joint requirements document.
      Conferees direct the Secretary of Defense and the 
Director of National Intelligence (DNI) to submit a joint 
report to the congressional defense and intelligence committees 
by March 1, 2007, containing the following elements: (1) a 
description of the respective roles and responsibilities of the 
intelligence community and the Department of Defense with 
respect to the development of the SR, including an updated 
Memorandum of Agreement between the Secretary and the DNI; (2) 
the process by which the intelligence community and the 
Department coordinate joint development efforts and 
requirements definition; (3) the plans for achieving a cost-
share agreement between the intelligence community and the 
Department for the development and acquisition of a SR 
capability; and (4) a commitment from the Secretary and the DNI 
that SR will be a single system responsive to the requirements 
of each organization.
      The conferees also direct the Secretary, in consultation 
with the DNI, to submit a report to the congressional defense 
committees by January 1, 2007, addressing the following: (1) 
the scope of the space radar architecture, including the 
system's interactions with other intelligence, surveillance, 
and reconnaissance platforms providing similar capability, as 
well as interactions with TSAT or alternative systems for 
processing and transmitting space radar data to other military 
applications; (2) the concept of operations, including how 
space radar data could be used to support defense and 
intelligence missions, and models for tasking, processing, 
exploitation, and dissemination to end users; (3) the 
acquisition approach that could be pursued by the SR program, 
including the identification of key technologies and their 
expected maturity at the time of program initiation; and (4) 
the schedule for meeting a realistic launch date, potential 
risks to that schedule, and potential risks of not meeting that 
launch date.
Combatant commanders' integrated command and control system
      The budget request included $50.9 million in PE 35906F 
for the combatant commanders' integrated command and control 
system (CCIC2S).
      The House bill would authorize no funds in PE 35906F.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $16.3 million in PE 
35906F for the CCIC2S program, a decrease of $34.6 million.
      The conferees believe that the capability to warn against 
air, missile, and space attacks is critical to our national 
security and homeland defense, and support the necessary 
modernization and integration of the command and control 
systems at Cheyenne Mountain, Colorado for mission execution by 
North American Aerospace Defense Command, U.S. Northern 
Command, and U.S. Strategic Command.
      In a July 2006 report on the CCIC2S program, the 
Government Accountability Office (GAO) found that poor past 
performance, inadequate management and oversight, and changing 
requirements resulted in significant cost overruns and an 
undefined delivery schedule. The report further noted that most 
mission critical capabilities will not be delivered in fiscal 
year 2006, as initially planned. While the missile warning 
mission is partially complete, no work has been completed on 
the space mission and estimated completion dates have not been 
determined. GAO recommended that eight actions be taken to 
improve management and oversight of the project.
      The conferees believe that many of these recommendations 
are being addressed, but remain concerned about the 
Department's prioritization of and commitment to the CCIC2S 
program, as evidenced by its continued reductions in program 
funding. The conferees further believe that continued 
investments in a development program without a defined schedule 
and final cost risks further cost overruns and schedule delays. 
It is therefore prudent to reassess program requirements, cost, 
and schedule; and determine program affordability within the 
context of the Department's priorities, other acquisition 
programs, and long-range investment plans, prior to continuing 
with further development.
      The conferees direct the Secretary of Defense to maintain 
essential operation and maintenance activities, and limit 
developmental activities to the completion of the missile 
warning system. In addition, the conferees direct the Secretary 
of Defense to submit a report by March 1, 2007, to the 
congressional defense committees that addresses all eight of 
the GAO recommended actions including an affordability 
assessment, an economic analysis, and an independent life cycle 
cost estimate.
      The conferees would like to be clear that the reduction 
to the amount requested for the CCIC2S program should not be 
construed as a lack of support for the program, but rather a 
reflection of continuing concerns related to the CCIC2S 
acquisition approach. The conferees expect that future budget 
requests reflect an executable program with a defined schedule 
and commitment of adequate resources.
Research, Development, Test, and Evaluation, Defense-wide overview
      The budget request included $20,809.9 million in 
Research, Development, Test, and Evaluation, Defense-wide for 
the Department of Defense.
      The House bill would authorize $20,760.0 million.
      The Senate amendment would authorize $21,488.9 million.
      The conferees agree to authorize $20,930.0 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


National Defense Education Program
      The budget request included $19.5 million in PE 61120D8Z 
for the National Defense Education Program (NDEP).
    The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $5.0 
million in PE 61120D8Z.
      The conferees agree to authorize $19.5 million in PE 
61120D8Z, specifically for Science, Mathematics, and Research 
for Transformation scholarships and for other authorized NDEP 
activities; but authorize no funding for institutional 
scholarships, fellowships, and traineeships. The conferees 
recommend that the Department provide information on the need 
for this activity along with a request for legislative 
authority to conduct it.
Printed circuit board supply chain
      The budget request included $23.4 million in PE 63712S 
for generic logistics research and development technology 
demonstrations.
      The House bill would authorize an increase of $10.0 
million in PE 63712S for the emerging critical interconnection 
technology program to address reliable printed circuit board 
manufacturing in the United States.
      The Senate amendment would authorize an increase of $4.0 
million in PE 63712S for the emerging critical interconnection 
technology program.
      The conferees agree to authorize an increase of $4.3 
million in PE 63712S for the emerging critical interconnection 
technology program.
      The conferees direct the Secretary of Defense to submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the implementation of the 
recommendations of the National Research Council (NRC) 
Committee on Manufacturing Trends in Printed Circuit Board 
Technology. This report should be submitted not later than 9 
months after the date of the enactment of this Act. The report 
should, at a minimum, provide an analysis of each finding and a 
detailed description of the response by the Department of 
Defense to each recommendation of the NRC Committee, including 
a schedule with specific milestones and required funding for 
completing the implementation of the recommendation or the 
reasons for a decision not to implement the recommendation.
Joint modeling, simulation, and experimentation
      The budget request included $115.7 million in PE 63828D8Z 
for joint experimentation, modeling, and simulation 
technologies.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63828D8Z to further develop joint, interagency, 
and coalition modeling, simulation, and experimentation.
      The conferees agree to authorize the budget request and 
an increase of $8.0 million in PE 63828D8Z in order to fund 
joint effects-based modeling and simulation that effectively 
incorporates political, economic, infrastructure, information, 
societal, and diplomatic factors, as well as coalition warfare, 
at the tactical level of operations.
      As mentioned in the Senate report accompanying S. 2766 
(S. Rept. 109-254) of the National Defense Authorization Act 
for Fiscal Year 2007, the 2006 Quadrennial Defense Review (QDR) 
Report noted that the Department of Defense must shift its 
emphasis from Department-centric approaches toward interagency 
solutions that incorporate all elements of national power. 
Cooperation across the Federal Government is essential and can 
be facilitated efficiently by enhanced modeling, simulation, 
and experimentation. Of the amount authorized, the conferees 
recommend that $4.0 million be utilized to carry out an East 
Coast Asymmetric Warfare Initiative (AWI). The East Coast AWI 
is designed to enhance our nation's coordination and response 
capabilities to a Weapon of Mass Destruction (WMD) event 
through a complex, scenario-based exercise utilizing the 
experience and unique capabilities of the Navy's Center for 
Asymmetric Warfare and involving the Commonwealth of Virginia 
and the State of Maine. This multi-agency exercise involving 
the Department of Defense, the Department of Homeland Security, 
other Federal agencies, State and local government entities, as 
well as the private sector will greatly enhance U.S. response 
capability to a WMD event and provide a template for future 
exercises designed to further strengthen our nation's ability 
to respond to a WMD event.
Ballistic Missile Defense
Ground-based Midcourse Ballistic Missile Defense
      The budget request included $2.9 billion in PE 63882C for 
the Ballistic Missile Defense midcourse defense segment to 
cover continued development, ground and flight testing, 
fielding, and support for the Ground-based Midcourse Defense 
(GMD) system.
      The House bill would authorize a decrease of $35.8 
million in PE 63882C, which includes the elimination of all 
funding, $55.8 million, for the third GMD site in Europe.
      The Senate amendment would authorize an increase of 
$245.0 million in PE 63882C.
      The conferees agree to authorize $3.1 billion in PE 
63882C, an increase of $225.0 million for the BMD midcourse 
defense segment. The increase is directed as follows: $60.0 
million for efforts to accelerate the ability of the GMD system 
to conduct concurrent test and operations; $140.0 million for 
enhanced testing and to increase the pace of GMD flight 
testing; and $25.0 million for advanced procurement of an 
additional six flight test missiles. The Missile Defense Agency 
(MDA) is expected to budget for the completion of these tasks 
over fiscal years 2008 to 2011.
      The conferees also agree to provide $32.8 million for the 
third GMD site in Europe, a decrease of $23.0 million, and note 
that a ground-based interceptor site in Europe could provide 
future protection for the United States and Europe against 
longer-range ballistic missiles launched from the Middle East. 
The conferees also direct the Secretary of Defense to report to 
the congressional defense committees within 30 days of the 
completion of planned intercept tests FTG-04 and FTG-05. The 
report should include an assessment of whether the test 
objectives for these intercept tests have been met. In the 
event that these test objectives are not met, the Secretary 
should provide in this report a determination as to whether the 
remaining block 2008 funds should be reallocated for additional 
testing of the block 2004/2006 configuration.
Aegis Ballistic Missile Defense
      The budget request included $1.0 billion in PE 63892C for 
the sea-based Aegis Ballistic Missile Defense system.
      The House bill would authorize an increase of $40.0 
million in PE 63892C.
      The Senate amendment would authorize an increase of 
$100.0 million in PE 63892C.
      The conferees agree to authorize $1.1 billion in PE 
63892C, an increase of $100.0 million. The increase is directed 
as follows: $10.0 million for continued S-band advanced radar 
algorithm work; $20.0 million for Aegis BMD signal processor, 
2-color seeker development, and acceleration of the open 
architecture program; and $70.0 million to support the 
procurement of 24 additional SM-3 block 1B missiles over fiscal 
years 2008 to 2011. MDA is expected to budget for the 
completion of these tasks over fiscal years 2008 to 2011.
      The conferees are aware that the MDA and the Department 
of the Navy are exploring the feasibility of modifying 100 SM-2 
Block IV missiles to obtain a near-term sea-based terminal 
ballistic missile defense capability starting in fiscal year 
2007 with conversion of all missiles completed by the end of 
fiscal year 2009. According to briefings by the MDA and 
Department of the Navy, such a capability could afford 
protection for ships and other critical assets against short-
range ballistic missiles in the Scud A/B class. This proposed 
development would cost approximately $130.0 million over fiscal 
years 2007 to 2009, with the Navy share estimated at 
approximately $20.0 million in fiscal year 2007. The conferees, 
while supportive of efforts to provide near-term missile 
defense capability, require further information before 
authorizing this development effort to proceed. Therefore, the 
conferees encourage the Department of Defense to submit to 
Congress a reprogramming request in fiscal year 2007 to pursue 
a sea-based terminal missile defense capability, should such a 
step be consistent with Department requirements and resource 
constraints. If submitted, the reprogramming request should be 
accompanied by documentation that: (1) explains the need for 
such a capability; (2) indicates Department of the Navy 
endorsement of this program; and (3) includes a Navy-MDA cost-
share agreement through completion of the effort.
Arrow Ballistic Missile Defense System
      The budget request included $1.0 billion in PE 63881C for 
Ballistic Missile Defense Terminal Defense Segment, of which 
$13.0 million was for Arrow missile production and $56.2 
million was for the Arrow System Improvement Program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $8.0 
million for the Arrow System Improvement Program and an 
increase of $52.0 million for Arrow co-production in PE 63881C.
      The conferees agree to authorize a total of $63.0 million 
in PE 63881C for Arrow co-production, an increase of $50.0 
million.
Kinetic Energy Interceptor
      The budget request included $405.5 million in PE 63886C 
for Ballistic Missile Defense System Interceptors for continued 
development of the Kinetic Energy Interceptor.
      The House bill would authorize a decrease of $100.0 
million in PE 63886C.
      The Senate amendment would authorize a decrease of $200.0 
million in PE 63886C.
      The conferees agree to authorize $245.5 in PE 63886C, a 
decrease of $160.0 million. The conferees further recommend 
that no additional funds be reprogrammed into this program 
element over the course of fiscal year 2007.
Space Tracking and Surveillance System
      The budget request included $390.6 million in PE 63893C 
for the Space Tracking and Surveillance System.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to authorize $223.6 million in PE 
63893C, a decrease of $67.0 million.
Products
      The budget request included $506.8 million in PE 63889C 
for Ballistic Missile Defense (BMD) Products.
      The House bill and would authorize the budget request.
      The Senate amendment would authorize a decrease of $40.0 
million in PE 63889C.
      The conferees agree to authorize $478.8 million in PE 
63889C, a decrease of $28.0 million.
Systems Core
      The budget request included $473.1 million in PE 63890C 
for Ballistic Missile Defense Systems Core.
      The House bill would authorize a decrease of $10.0 
million in PE 63890C.
      The Senate amendment would authorize a decrease of $40.0 
million in PE 63890C.
      The conferees agree to authorize $348.1 million in PE 
63890C, a decrease of $25.0 million.
Special Programs
      The budget request included $374.5 million in PE 63891C 
for Special Programs--MDA.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $20.0 
million in PE 63891C.
      The conferees agree to authorize $348.1 million in PE 
63891C, a decrease of $26.4 million.
Multiple Kill Vehicle
      The budget request included $165.0 million in PE 63894C 
for Multiple Kill Vehicle.
      The House bill would authorize a decrease of $65.0 
million in PE 63894C.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $125.0 million in PE 
63894C, a decrease of $40.0 million, and note the importance of 
this program as a future spiral improvement for the ground-
based interceptor.
Operationally responsive space capabilities
      The budget request included $20.4 million in PE 65799D8Z 
for the Office of Force Transformation (OFT) in the Office of 
the Secretary of Defense, but included no funding for 
operationally responsive space capabilities.
      The House bill would authorize the budget request in PE 
65799D8Z, and would authorize an increase of $20.0 million in 
PE 64857F for operationally responsive space capabilities.
      The Senate amendment would authorize an increase of $25.0 
million in PE 65799D8Z for development of operationally 
responsive space capabilities.
      The conferees agree to authorize $48.9 million in PE 
65799D8Z, an increase of $23.5 million for operationally 
responsive space capabilities. Of this amount, $20.0 million is 
for payloads, satellite busses, integration, command and 
control, and joint warfighter experimentation; and $3.5 million 
is to support adapting existing airborne reconnaissance sensor 
capabilities for use in responsive space missions.
      The conferees expect future operationally responsive 
space budget requests would be in support of the Operationally 
Responsive Space Program Office, to the extent applicable, 
pursuant to guidance in the Operationally Responsive Space 
provision (sec 913) of this Act.
Operational Test and Evaluation, Defense overview
      The budget request included $181.5 million in Operational 
Test and Evaluation, Defense for the Department of Defense.
      The House bill would authorize $181.5 million.
      The Senate amendment would authorize $181.5 million.
      The conferees agree to authorize $181.5 million.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


                        Item of Special Interest

Proposed realignment of Air Force test and evaluation facilities
      The conferees are concerned about a proposed realignment 
of Air Force test and evaluation facilities and personnel that 
could have significant impacts beginning in fiscal year 2007 
and continuing into the out years. The conferees believe that 
additional information and analysis of the impacts of the 
proposed action is required before any implementation of the 
plan proceeds. The conferees direct the Secretary of the Air 
Force, jointly with the Under Secretary of Defense for 
Acquisition, Technology, and Logistics (USD (AT&L)), and the 
Director of the Test Resource Management Center (TRMC) to 
submit separate reports to the congressional defense committees 
analyzing the proposed actions.
      The impact report prepared by the Air Force and USD 
(AT&L) should include an analysis of the following for proposed 
personnel relocations and for the facilities proposed closure 
or realignment: (1) missions served; (2) Department of Defense 
acquisition programs affected, including an analysis of impacts 
on risk, cost, and schedule; (3) costs to the Air Force and to 
the Department, including costs to close or realign test and 
evaluation capabilities and reconstitute or acquire required 
capabilities, including personnel, contract termination, 
military construction, housing costs, installation operations 
and maintenance, and other costs; (4) a detailed analysis and 
disclosure of the estimated net cost or savings to the 
Department derived from the actions and payback period of such 
actions; (5) developmental and operational test programs 
impacted; (6) the extent to which the recommendations of the 
2005 Defense Base Closure and Realignment Commission support or 
contradict the findings of this analysis; (7) impacts on the 
test and evaluation workforce and on the ability to recruit and 
retain skilled personnel at affected facilities; and (8) 
alternatives considered. The impact report should also include 
a joint statement by the Secretary of the Air Force and the USD 
(AT&L) on changes, if any, to the proposed course of action as 
a result of the conclusions of the analysis, subsequent actions 
required as a result of the analysis, and an explanation of the 
criteria used to determine the level of acceptable risk to the 
Department in proceeding with the proposed action.
      The TRMC report should include an assessment of how the 
proposed closures or realignments of Air Force research, 
development, test, and evaluation activities may impact the 
strategic plan for Department of Defense test and evaluation 
resources, as required by section 196 of title 10, United 
States Code. The assessment should focus on whether the Air 
Force test and evaluation facilities, resources, and budgets 
will meet the test and evaluation requirements and satisfy 
performance measures included in the strategic plan.
      The conferees direct the Secretary of the Air Force to 
undertake no action to realign or close any test and evaluation 
activities, other than those specifically included in the final 
decisions of the 2005 Defense Base Realignment and Closure 
round, until 60 days after the two required reports are 
received by the congressional defense committees.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (sec. 201)
      The House bill contained a provision (sec. 201) that 
would authorize the recommended fiscal year 2007 funding levels 
for the Research, Development, Test, and Evaluation accounts 
for the Army, Navy, Marine Corps, Air Force, Defense-wide 
activities, and the Director of Operational Test and 
Evaluation.
      The Senate amendment contained a similar provision (sec. 
201).
      The conference agreement includes this provision.
Amount for defense science and technology (sec. 202)
      The House bill contained a provision (sec. 202) that 
would authorize $11.7 billion for Department of Defense science 
and technology programs in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
202) that would authorize $11.5 billion.
      The conferees agree to authorize $11.7 billion for 
Department of Defense science and technology programs in fiscal 
year 2007.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Acquisition of, and independent cost analyses for, the Joint Strike 
        Fighter propulsion system (sec. 211)
      The Senate amendment contained a provision (sec. 254) 
that would direct the Secretary of Defense to provide for the 
development of the propulsion system for the Joint Strike 
Fighter (JSF) through either: (1) the continuing development 
and sustainment of two interchangeable propulsion systems by 
two separate contractors throughout the life cycle of the 
aircraft, or (2) a one-time firm-fixed-price contract for a 
selected propulsion system for the life cycle of the aircraft 
following the initial service release of the aircraft 
propulsion system in fiscal year 2008.
      The House bill contained no similar provision.
      The House recedes with an amendment that would:
      (1) require the Secretary to provide for the continuing 
development and sustainment of two interchangeable propulsion 
systems by two separate contractors throughout the life cycle 
of the aircraft;
      (2) prohibit the Secretary from carrying out any 
modification to the development and sustainment of two 
interchangeable engines until:
      (a) the Secretary notifies the congressional defense 
committees of any modification to the acquisition program for 
the JSF propulsion systems,
      (b) three independent, comprehensive, and detailed cost 
analyses have been submitted, and
      (c) funds are appropriated for that purpose pursuant to 
an authorization of appropriations;
      (3) require independent cost analyses be completed by the 
Secretary, acting through the Cost Analysis Improvement Group 
of the Office of the Secretary of Defense, the Comptroller 
General, and a federally-funded research and development 
center, which would be selected by the Secretary, and be 
submitted to the congressional defense committees not later 
than March 15, 2007; and
      (4) include a one-time firm-fixed-price contract as part 
of the independent cost analyses.
Expansion and extension of authority to award prizes for advanced 
        technology achievements (sec. 212)
      The Senate amendment contained a provision (sec. 252) 
that would extend the authority to award prizes for advanced 
technology achievements to September 30, 2011. The provision 
would also elevate the authority to the Director, Defense 
Research and Engineering (DDRE) and expand the authority to 
include the military departments.
      The House bill contained a similar provision (sec. 212) 
that would extend the authority to September 30, 2010, but 
would not elevate or expand the authority.
      The House recedes with an amendment that would extend the 
authority to September 30, 2010, and would suspend the 
authority for failure to provide the report as required in 
subsection (e) of section 2374a of title 10, United States 
Code.
      The conferees recognize the efforts of the Defense 
Advanced Research Projects Agency (DARPA) to utilize the prize 
authority to spur innovation and to engage nontraditional 
organizations in defense research. The amendment would continue 
to allow use of the prize authority by DARPA and other 
components under DDRE.
      The conferees have been informed that DARPA has 
independently decided to withdraw its support of the X PRIZE 
Foundation's 2006 space technology competitions, but plans to 
continue work on the advancement of unmanned ground vehicle 
technology through the Urban Challenge competition. The 
conferees note that both activities may hold promise for the 
development of technologies to support defense missions, and 
therefore encourage the DDRE to evaluate potential benefits of 
such activities and the use, if appropriate, of the authority 
provided by this section. The conferees believe that such 
evaluations could be conducted in a manner that ensures 
seamless planning and execution for existing programs.
Defense Acquisition Challenge Program extension, enhancement, and 
        modification to address critical cost growth threshold breaches 
        in major defense acquisition programs (sec. 213)
      The House bill contained a provision (sec. 213) that 
would permanently extend the Defense Acquisition Challenge 
Program (DACP), and protect the identity of those submitting 
challenge proposals during the proposal evaluation process. The 
House bill also contained a provision (sec. 805) that would: 
(1) modify section 2359b of title 10, United States Code, to 
establish requirements for a DACP proposal solicitation in the 
event of a critical cost growth threshold breach for a major 
defense acquisition program, and (2) modify section 2433 of 
title 10, United States Code, to require that, in the event of 
a critical cost growth threshold breach, the Secretary of 
Defense perform certain additional assessments, certifications, 
and reporting.
      The Senate amendment contained a provision (sec. 802) 
that would extend the DACP through 2012 and would provide the 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics (USD (AT&L)) with the authority to establish 
procedures to ensure that the program is focused on small and 
medium-sized businesses, and nontraditional defense 
contractors.
      The Senate recedes with an amendment that would 
consolidate the three provisions into a single provision. The 
amendment would: (1) modify section 2433 to require the 
Secretary to perform certain assessments; (2) require USD 
(AT&L), in coordination with service acquisition executives, to 
evaluate current challenge proposal transition initiatives and 
identify additional incentives or authorities; (3) establish 
procedures to give priority to proposals from nontraditional 
defense contractors; (4) extend the DACP until September 30, 
2012; and (5) clarify amendments to section 2359b regarding 
requirements for challenge proposal solicitations for 
acquisition programs that experience critical cost growth 
threshold breaches, funding guidelines for such challenge 
proposals, the procedures for disposition of proposals that 
receive favorable preliminary reviews but unfavorable full 
evaluations, and measures to ensure confidentiality of 
challenge proposal submissions.
Future Combat Systems milestone review (sec. 214)
      The House bill contained a provision (sec. 214) that 
would require the Secretary of Defense to conduct a Future 
Combat Systems (FCS) milestone review, following the 
preliminary design review, by September 30, 2008, and to submit 
a report on the results of the FCS milestone review not later 
than February 13, 2009.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
the submission date of the required report to 120 days after 
completion of the preliminary design review of FCS. Although 
the amendment withholds the obligation of FCS procurement funds 
beginning in fiscal year 2009 until the Secretary submits the 
required report, the amendment allows the Department of the 
Army to obligate funds for the non-line-of-sight cannon and for 
the costs attributable to insertion of new technology into the 
current force, if the insertion is approved by the Under 
Secretary of Defense for Acquisition, Technology, and 
Logistics. The conferees strongly endorse a program strategy 
that will enable early spin out of FCS technologies into the 
current force, a top priority of the Chief of Staff of the 
Army.
Dedicated amounts for implementing or evaluating Navy shipbuilding 
        technology proposals under Defense Acquisition Challenge 
        Program (sec. 215)
      The House bill contained a provision (sec. 216) that 
would require the Secretary of Defense to provide an additional 
$4.0 million for the Defense Acquisition Challenge Program to 
evaluate or implement challenge proposals specifically for the 
DD(X) next-generation destroyer and the CVN-21 next-generation 
aircraft carrier programs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
up to $4.0 million to evaluate or implement challenge proposals 
that relate to technology directly contributing to combat 
systems and open architecture design for Navy ship platforms.
Independent estimate of costs of the Future Combat Systems (sec. 216)
      The Senate amendment contained a provision (sec. 211) 
that would withhold $500.0 million from the amount of funds 
authorized to be appropriated for the development of the Future 
Combat Systems (FCS) until the Secretary of Defense submits a 
report of an independent cost estimate for FCS conducted by a 
federally-funded research and development center.
      The House bill contained no similar provision.
      The House recedes with an amendment that would remove the 
withhold of $500.0 million and change the submission date of 
the required report to April 1, 2007.
      The conferees are disappointed with the response by the 
Department of Defense to reports required in section 211 of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108-375) and section 213 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163). The conferees expect the Department to share the details 
of the independent cost estimate prepared by the Department's 
Cost Analysis Improvement Group (CAIG) with the organization 
selected to conduct the independent cost estimate.
      The conferees understand that the Army disagrees with the 
analysis by CAIG of the Army's FCS cost estimate. It would be 
useful for the organization selected to perform the independent 
cost estimate to review and comment on the discrepancies 
between the cost estimates of the Army and the CAIG.
Funding of defense science and technology programs (sec. 217)
      The Senate amendment contained a provision (sec. 212) 
that would extend the funding objective for science and 
technology programs, established in section 212 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 107-
107), to fiscal year 2012, and would require submission of two 
reports if the Department of Defense fails to meet the outlined 
funding objective in any single fiscal year budget request.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make 
technical changes and would consolidate submission of the 
required information along with budget requests.
Hypersonics development (sec. 218)
      The Senate amendment contained a provision (sec. 213) 
that would direct the Secretary of Defense to establish a joint 
technology office (JTO) to coordinate and integrate hypersonics 
research, development, and demonstration programs and budgets.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
certain responsibilities of the JTO and ensure consideration of 
test and evaluation resources and facilities in hypersonics 
programs and plans.
      The conferees expect the Department of Defense to fully 
utilize existing management and coordination functions in 
fulfilling the requirements of this section and to consider 
virtual structures and organizations, as appropriate, to 
minimize any administrative burdens associated with a new JTO 
while maximizing program outcomes.
Report on program for replacement of nuclear warheads on certain 
        Trident sea-launched ballistic missiles with conventional 
        warheads (sec. 219)
      The Senate amendment contained a provision (sec. 214) 
that would prohibit $95.0 million of the funds authorized to be 
appropriated for the Conventional Trident Modification (CTM) 
program from being obligated or expended until the Secretary of 
Defense, in consultation with the Secretary of State, submits a 
report to the congressional defense committees.
      The House bill contained no similar provision, but would 
authorize $30.0 million in Research, Development, Test, and 
Evaluation.
      The House recedes with an amendment that would strike the 
limitation on funding while maintaining the reporting 
requirement. The conference outcome with respect to funding for 
the CTM program is reflected in the tables of this report under 
Research, Development, Test, and Evaluation, Navy; Weapons 
Procurement, Navy; and Other Procurement, Navy.
      The conferees continue to believe it is important for the 
Department of Defense to explore a wide range of capabilities 
for responding rapidly to emerging threats to the United States 
and its strategic interests. The conferees encourage the 
Department to expedite consideration of mid-term options for 
prompt global strike, and to propose to the congressional 
defense committees as soon as possible those activities that 
may be required during fiscal year 2007 to make progress toward 
developing those concepts the Congress and the Department deem 
appropriate, including reprogramming actions.

                  Subtitle C--Missile Defense Programs

Fielding of ballistic missile defense capabilities (sec. 221)
      The House bill contained a provision (sec. 221) that 
would allow funds authorized to be appropriated for fiscal 
years 2007 and 2008 for research, development, test, and 
evaluation for the Missile Defense Agency to be used for the 
development and fielding of ballistic missile defense 
capabilities.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Limitation on use of funds for space-based interceptor (sec. 222)
      The House bill contained a provision (sec. 222) that 
would prevent the Department of Defense from obligating funds 
for the testing or deployment of a space-based interceptor 
program until 90 days after submitting a report to Congress 
describing the program and its national security implications.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Policy of the United States on priorities in the development, testing, 
        and fielding of missile defense capabilities (sec. 223)
      The Senate amendment contained a provision (sec. 232) 
that would make it the policy of the United States to accord a 
priority within the missile defense program to the development, 
testing, fielding, and improvement of effective near-term 
missile defense capabilities, including the Ground-based 
Midcourse Defense (GMD) system, the Aegis Ballistic Missile 
Defense (BMD) system, additional Patriot PAC-3 units, the 
Terminal High Altitude Area Defense (THAAD) system, and sensors 
based on land, sea, and in space that support these interceptor 
systems.
      The House bill contained no similar provision.
      The House recedes with an amendment that would update the 
findings to take into account the North Korean ballistic 
missile test launches of July 2006.
      On July 4, 2006, the United States detected the launch of 
six ballistic missiles from North Korea, followed by an 
additional launch on July 5, 2006. These missiles varied in 
range from the short-range Scud to the medium-range No-Dong and 
included the firing of a Taepo-Dong 2 missile, which 
intelligence agencies believe could eventually reach United 
States territory. The conferees believe these North Korean 
launches, as well as activities related to the development and 
testing of Iranian ballistic missiles, reinforce congressional 
direction provided to the Department of Defense over the past 2 
years to focus its efforts on those initial missile defense 
systems that are now providing, or starting to provide, a 
measure of protection for the United States and its deployed 
forces.
      The Department's excessive focus on and investment in the 
development of long-term technologies has made it difficult for 
the Missile Defense Agency to successfully develop, test, and 
field--in sufficient numbers--the initial missile defense 
capabilities necessary to address the current threat. For 
example, the Department has reduced planned deliveries of the 
highly successful sea-based Standard-Missile 3 from 120 to 96 
over the future years defense program and is programming to 
procure only 48 THAAD missiles. Also, the Department is not 
funding enough PAC-3 missiles to meet the needs of combatant 
commanders in areas where forward deployed U.S. forces are 
currently within range of short- and medium-range ballistic 
missiles. The budget request for the GMD system also leads 
conferees to believe that inadequate resources have been 
applied toward ensuring the GMD system is fully tested and is 
able to stand alert even while testing is underway.
      The conferees believe that the emphasis of our missile 
defense efforts should be on the current generation of missile 
defense capabilities--even if this comes at the expense of 
longer-term development efforts. Based on congressional 
testimonies by combatant commanders, who inform Congress that 
they require more missile defense inventory to keep pace with 
the threat, and mindful of recent developments in North Korea 
and Iran, the conferees believe that priority should be given 
to developing, testing, fielding, and improving effective near-
term missile defense capabilities, including GMD, Aegis BMD, 
Patriot PAC-3, and THAAD. The conferees expect the Department 
to reflect this policy in their fiscal year 2008 budget 
submission.
One-year extension of Comptroller General assessments of ballistic 
        missile defense programs (sec. 224)
      The Senate amendment contained a provision (sec. 233) 
that would extend until fiscal year 2008 the requirement for 
the Comptroller General to provide an assessment of the extent 
to which the Missile Defense Agency achieved the goals 
established for that fiscal year for each ballistic missile 
defense program of the Department of Defense.
      The House bill contained no similar provision.
      The House recedes.
Submittal of plans for test and evaluation of the operational 
        capability of the Ballistic Missile Defense System (sec. 225)
      The Senate amendment contained a provision (sec. 234) 
that would require each plan approved by the Director of 
Operational Test and Evaluation to test and evaluate the 
operational capability of the ballistic missile defense system, 
as required by section 234(a) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 10 
U.S.C. 2431 note), to be submitted to the congressional defense 
committees within 30 days of such approval.
      The House bill contained no similar provision.
      The House recedes.
Annual reports on transition of ballistic missile defense programs to 
        the military departments (sec. 226)
      The Senate amendment contained a provision (sec. 235) 
that would require the Under Secretary of Defense for 
Acquisition, Technology, and Logistics to submit a report to 
the congressional defense committees, not later than March 1, 
2007, and annually thereafter through 2013, on the plans of the 
Department of Defense for the transition of missile defense 
programs from the Missile Defense Agency to the military 
departments.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include 
the requirement to report on any agreement on the operational 
test criteria that must be achieved before the transition of a 
missile defense program to the military departments.

                       Subtitle D--Other Matters

Policies and practices on test and evaluation to address emerging 
        acquisition approaches (sec. 231)
      The House bill contained a provision (sec. 231) that 
would require a review of test and evaluation policies and 
practices, and modify reporting requirements of the Director of 
Operational Test and Evaluation (DOTE) under section 2399(b)(2) 
of title 10, United States Code.
      The Senate amendment contained a similar provision (sec. 
253) that would require the Under Secretary of Defense for 
Acquisition, Technology, and Logistics (USD (AT&L)) and the 
DOTE to review and revise policies and practices on test and 
evaluation in light of emerging approaches to acquisition. The 
provision would also amend section 2399(b) of title 10, United 
States Code, to address deficient testing information on rapid 
acquisition programs purchased prior to a decision to proceed 
to low rate initial production.
      The House recedes with an amendment that would include 
elements of both provisions, and add a new section to clarify 
the responsibilities of the DOTE with respect to force 
protection equipment. The amendment would: (1) update reporting 
requirements of the DOTE to allow for submission of relevant 
information on operational capabilities of tested items; (2) 
require submission of testing information to Congress on major 
defense acquisition programs that do not move beyond low rate 
initial production, but that proceed to operational use or make 
use of procurement funds; (3) require a review, and revision if 
necessary, of policies and practices on test and evaluation; 
and (4) update the responsibilities of the DOTE under section 
139 of title 10, United States Code, to include advice and 
consultation to the Secretary of Defense, USD (AT&L), and 
Secretaries of the military departments on operational test and 
evaluation and survivability testing of force protection 
equipment.
      The conferees do not intend this section to modify 
existing authorities of the DOTE with respect to major defense 
acquisition programs, as defined in section 139(a)(2)(B) of 
title 10, United States Code, or operational test and 
evaluation in general. The conferees direct the Secretaries of 
the military departments to ensure that the DOTE is made aware 
of force protection equipment programs.
Extension of requirement for Global Research Watch Program (sec. 232)
      The Senate amendment contained a provision (sec. 251) 
that would extend the requirement for the Global Research Watch 
program.
      The House bill contained no similar provision.
      The House recedes.
Sense of Congress on technology sharing of Joint Strike Fighter 
        technology (sec. 233)
      The Senate amendment contained a provision (sec. 256) 
that would express the sense of the Senate that the Secretary 
of Defense should allow Joint Strike Fighter technology to be 
shared between the governments of the United States and the 
United Kingdom.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Report on vehicle-based active protection systems for certain 
        battlefield threats (sec. 234)
      The Senate amendment contained a provision (sec. 358) 
that would require the Secretary of Defense to contract with an 
appropriate entity independent of the United States Government 
to conduct an assessment of various foreign and domestic 
technological approaches to vehicle-based active protective 
systems.
      The House bill contained no similar provision.
      The House recedes.
      The conferees expect the Secretary of Defense to provide 
to the entity selected to perform the independent assessment 
the documentation and findings of all related studies of active 
protection systems conducted by the Department of Defense 
within the last 3 years or deemed relevant by the Secretary.

                   Legislative Provisions Not Adopted

Amount for development and validation of warfighter rapid awareness 
        processing technology
      The Senate amendment contained a provision (sec. 203) 
that would authorize $4.0 million for Marine Corps development 
and validation of a rapid awareness processing technology.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Navy PE 
62131M.
Alternate engine for Joint Strike Fighter
      The House bill contained a provision (sec. 211) that 
would authorize $408.0 million for the continued development of 
an alternate engine for the Joint Strike Fighter.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Navy, 
line 133; and in Research, Development, Test, and Evaluation, 
Air Force, line 92.
Arrow ballistic missile defense
      The Senate amendment contained a provision (sec. 215) 
that would make available $65.0 million for coproduction of the 
Arrow ballistic missile defense system, and $63.7 million for 
the Arrow System Improvement Program.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Defense-
wide, PE 63881C, Ballistic Missile Defense Terminal Defense 
Segment.
Independent cost analyses for Joint Strike Fighter engine program
      The House bill contained a provision (sec. 215) that 
would direct the Comptroller General and the Secretary of 
Defense, acting through the Cost Analysis Improvement Group of 
the Office of the Secretary of Defense, to independently 
perform comprehensive and detailed cost analyses of the Joint 
Strike Fighter (JSF) engine program.
      The Senate amendment contained a similar provision (sec. 
255) that would direct the Comptroller General, the Secretary 
of Defense, acting through the Cost Analysis Improvement Group 
of the Office of the Secretary of Defense, and a federally-
funded research and development center, which would be selected 
by the Secretary of Defense, to independently perform 
comprehensive and detailed cost analyses of the JSF engine 
program.
      The conference agreement does not include either 
provision.
      Elsewhere in this report, the conferees agree to include 
the requirement for three independent cost analyses on the 
acquisition of, and independent cost analyses for, the JSF 
propulsion systems.
High energy laser low aspect target tracking
      The Senate amendment contained a provision (sec. 216) 
that would authorize $5.0 million to support instrumentation 
and test and evaluation activities of the high energy laser 
systems test facility.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Army PE 
65605A.
Advanced Aluminum Aerostructures Initiative
      The Senate amendment contained a provision (sec. 217) 
that would authorize $2.0 million for the Advanced Aluminum 
Aerostructures Initiative.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Air 
Force PE 63211F.
Legged mobility robotic research
      The Senate amendment contained a provision (sec. 218) 
that would authorize $1.0 million for legged mobility robotic 
research.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Army PE 
62601A.
Wideband digital airborne electronic sensing array
      The Senate amendment contained a provision (sec. 219) 
that would authorize $3.0 million for Air Force research on the 
wideband digital airborne electronic sensing array.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Air 
Force PE 62204F.
Science and technology
      The Senate amendment contained a provision (sec. 220) 
that would authorize $45.0 million for competitively awarded 
basic research programs.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Army PE 
61103A, Navy PE 61103N, Air Force PE 61103F, Defense-wide PE 
61101E, and Defense-wide PE 61120D8Z.
High Altitude Airship program
      The House bill contained a provision (sec. 223) that 
would make $5.0 million available for the High Altitude Airship 
program from amounts provided in section 201 for Research, 
Development, Test, and Evaluation, Air Force.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation.
Testing and operations for missile defense
      The Senate amendment contained a provision (sec. 236) 
that would make available an additional $45.0 million for the 
Ballistic Missile Defense Midcourse Defense Segment (PE 63882C) 
to accelerate the ability to conduct concurrent test and 
missile defense operations and to increase the pace of 
realistic flight testing of the ground-based midcourse defense 
system.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Research, Development, Test, and Evaluation, Defense 
wide, PE 63882C.
Report on biometrics programs of the Department of Defense
      The Senate amendment contained a provision (sec. 257) 
that would require the Secretary of Defense to submit a report 
on the management and adequacy of biometrics programs.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note the importance of an integrated 
biometrics program to meet Department of Defense needs in the 
areas of network security and access, facility security, 
intelligence and detainee operations, force protection, and 
homeland and border security.
      The conferees direct the Secretary of Defense to submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report in both classified and unclassified 
form on the biometrics programs of the Department. The report 
should be submitted no later than January 31, 2007, and should 
address the following:
      (1) an assessment of the adequacy of the current 
executive agent management structure for meeting the needs of 
the biometrics programs throughout the Department and 
recommendations, if any, for improvements to the management 
structure;
      (2) current and anticipated future requirements for the 
biometrics programs to meet needs throughout the Department;
      (3) a description and assessment of adequacy of programs 
currently fielded to meet operational requirements, including 
those in Iraq and Afghanistan;
      (4) an assessment of programmatic or capability gaps in 
meeting future requirements; and
      (5) actions being taken within the Department to 
coordinate and integrate biometrics programs among the 
departments and agencies of the executive branch, including 
development, requirements generation, resource allocation, and 
operational use.
      For the purposes of the required report, the conferees 
consider the term ``biometrics'' to mean an identity management 
program or system that utilizes distinct personal attributes, 
including DNA, facial features, irises, retinas, signatures, or 
voices, to identify individuals.

                  TITLE III--OPERATION AND MAINTENANCE

Operation and Maintenance overview
      The budget request included $130,089.0 million in 
Operation and Maintenance, $23,445.6 million in Other Programs, 
and $2,436.4 million in Working Capital Fund Accounts for the 
Department of Defense.
      The House bill would authorize $129,770.1 million in 
Operation and Maintenance, $23,647.0 million in Other Programs, 
and $2,503.2 million in Working Capital Fund Accounts.
      The Senate amendment would authorize $129,531.8 million 
in Operation and Maintenance, $23,351.8 million in Other 
Programs, and $2,436.4 million in Working Capital Fund 
Accounts.
      The conferees agree to authorize $129,018.1 million in 
Operation and Maintenance, $23,847.1 million in Other Programs, 
and $2,436.4 million in Working Capital Fund Accounts.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.


                       Items of Special Interest

C-17 maintenance, sustainment, and modernization
      The conferees are concerned that the current Air Force 
plan to perform the long term, non-core maintenance, 
sustainment, and modernization of the C-17 largely through 
contractor logistics support may not be providing the 
warfighter with the most cost-effective solution. The recent 
Department of Defense Inspector General report entitled 
``Procurement Procedures Used for C-17 Globemaster III 
Sustainment Partnership Total System Support'' concluded that 
the Air Force did not use appropriate methodology for making 
the acquisition decision to procure contractor total system 
support for the C-17 aircraft, and that the Air Force failed to 
justify this decision with a business case analysis. The 
conferees believe that a business case analysis that examines 
the costs and benefits of multiple maintenance, sustainment, 
and modernization options (e.g. public/private partnerships) 
for the C-17 aircraft could lead to a new maintenance, 
sustainment, and modernization strategy for the C-17, which 
would provide substantial savings in total life cycle cost.
      The conferees direct the Comptroller General to perform a 
review of the Air Force's current plans for a C-17 sustainment 
business case analysis to include: (1) the scope of the 
business case analysis, and (2) the appropriateness of the 
options under consideration. The Comptroller General shall 
submit a report to the congressional defense committees on the 
results of the review no later than June 1, 2007.
Disposal of land at Norwalk Defense Fuel Supply Point, Norwalk, 
        California
      The conferees note that the Secretary of the Air Force, 
in consultation with the General Services Administration, has 
entered into an agreement with the city of Norwalk, California 
to withhold any activity to convey by public sale the property 
at the Norwalk Defense Fuel Supply Point in Norwalk, California 
until no earlier than November 21, 2006, in order to allow the 
city to prepare an offer for the fair market transfer of the 
property to the city.
      The conferees expect that the Secretary of the Air Force 
will provide to the city the relevant and material information 
held by the Air Force related to the known environmental 
conditions and planned environmental remediation of the site to 
assist in the preparation of the city's proposal.
Public sale of damaged equipment
      The conferees are concerned that the public may not be 
fully aware of the availability for purchase of damaged and 
unsalvageable equipment used in Operation Iraqi Freedom and 
Operation Enduring Freedom. The conferees encourage the 
military services and the Defense Logistics Agency (DLA) to 
establish a public awareness campaign that will allow the 
services and DLA to more aggressively pursue the sale of such 
equipment that is appropriate for disposal to the public 
through the disposal process managed by the Defense 
Reutilization and Marketing Service.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 301-303)
      The House bill contained provisions (secs. 301-303) that 
would authorize fiscal year 2007 funding levels for all 
operation and maintenance accounts, working capital funds, and 
other Department of Defense programs, including the Defense 
Inspector General, the Chemical Demilitarization Program, and 
the Defense Health Program.
      The Senate amendment contained similar provisions (secs. 
301-303).
      The conference agreement includes these provisions.

                  Subtitle B--Environmental Provisions

Revision of requirement for unexploded ordnance program manager (sec. 
        311)
      The House bill contained a provision (sec. 311) that 
would require the Secretary of Defense to designate the 
unexploded ordnance program manager position required under 
section 2701(k) of title 10, United States Code, and add 
research to the list of policy and budget issues that are 
within the responsibility of the program manger. The provision 
would also require that the position of program manager be 
filled by an employee in a position that is equivalent to pay 
grade O-6 or above, or a member of the armed forces who is 
serving in the grade of O-6 or above. The program manager would 
be required to report to the Deputy Under Secretary of Defense 
for Installations and Environment.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Funding of cooperative agreements under environmental restoration 
        program (sec. 312)
      The House bill contained a provision (sec. 314) that 
would amend section 2701(d)(2) of title 10, United States Code, 
to allow cooperative agreements entered into for environmental 
restoration at defense facilities to extend beyond the present 
2-year limitation when the agreements are funded out of either 
the Department of Defense Base Closure Account 1990 or the 
Department of Defense Base Closure Account 2005.
      The Senate amendment contained a similar provision (sec. 
334).
      The Senate recedes.
Response plan for remediation of unexploded ordnance, discarded 
        military munitions, and munitions constituents (sec. 313)
      The Senate amendment contained a provision (sec. 331) 
that would require the Secretary of Defense to set remediation 
goals for the cleanup of unexploded ordnance, discarded 
military munitions, and munitions constituents. Those goals 
would be to complete, by not later than September 30, 2007, 
preliminary assessments at all active installations and 
formerly used defense sites (other than operational ranges); to 
complete, by not later than September 30, 2010, site 
inspections at all active installations and formerly used 
defense sites (other than operational ranges); to achieve, by 
not later than September 30, 2009, a remedy in place or 
response complete at all military installations closed or 
realigned as part of a round of Defense Base Closure and 
Realignment prior to the 2005 round; and to achieve, by a date 
certain established by the Secretary of Defense, a remedy in 
place or response complete at all active installations and 
formerly used defense sites (other than operational ranges) and 
all military installations realigned or closed under the 2005 
Defense Base Closure and Realignment round.
      The provision would also require the Secretary to submit 
to the congressional defense committees a comprehensive plan 
for addressing the remediation of unexploded ordnance by March 
1, 2007. The Secretary would be required to update this plan 
not later than March 15 of 2008, 2009, and 2010. The provision 
would allow the goals established for unexploded ordnance 
cleanup to be adjusted to respond to unforeseen circumstances 
as part of the annual update of the plan.
      The provision would also require the Secretary to submit 
a report to the congressional defense committees, not later 
than March 1, 2007, on the status of efforts of the Department 
of Defense to achieve agreement with relevant regulatory 
agencies on appropriate reuse standards or principles related 
to the remediation of unexploded ordnance, discarded military 
munitions, and munitions constituents.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Research on effects of ocean disposal of munitions (sec. 314)
      The House bill contained a provision (sec. 312) that 
would require the Secretary of Defense to identify, research, 
monitor, and provide navigational and safety information on 
conventional and chemical military munitions disposal sites in 
the coastal waters of the United States.
      The Senate amendment contained a similar provision (sec. 
333). The provision would require the Secretary of Defense to 
review historical records to determine the number, size, and 
probable locations of disposal sites, and the types of military 
munitions disposed of at the sites. The Secretary would be 
required to release periodically to the public and submit 
annually to Congress the information obtained in this review, 
including a final report in the annual report to Congress on 
environmental restoration activities of the Department of 
Defense for fiscal year 2009. The Secretary would also be 
required to conduct research on the effects on the ocean 
environment and those who use it of military munitions disposed 
of in coastal waters. The provision would further require that 
if the historical review or the research conducted indicates 
that contamination is being released at a particular site, or 
that the site poses a significant public health or safety risk, 
the Secretary would be required to institute appropriate 
monitoring mechanisms and report to Congress on any additional 
measures that may be necessary.
      The House recedes with a clarifying amendment.
Reimbursement of Environmental Protection Agency for certain costs in 
        connection with Moses Lake Wellfield Superfund Site, Moses 
        Lake, Washington (sec. 315)
      The House bill contained a provision (sec. 313) that 
would authorize the Secretary of Defense to transfer not more 
than $111,114.03 to the Moses Lake Wellfield Superfund Site, 
10-6J special account, to reimburse the Environmental 
Protection Agency for costs incurred in overseeing a remedial 
investigation and feasibility study performed by the Department 
of the Army.
      The Senate amendment contained a similar provision (sec. 
335).
      The House recedes with a technical amendment.
Transfer of Government-furnished uranium stored at Sequoyah Fuels 
        Corporation, Gore, Oklahoma (sec. 316)
      The Senate amendment contained a provision (sec. 3301) 
that would require the Secretary of the Army to transport to an 
authorized disposal facility for appropriate disposal all of 
the Government-furnished uranium in the chemical and physical 
form in which it is stored at the Sequoyah Fuels Corporation 
site in Gore, Oklahoma, by not later than March 31, 2007.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Extension of authority to grant exemptions to certain requirements 
        (sec. 317)
      The Senate amendment contained a provision (sec. 332) 
that would authorize the Administrator of the Environmental 
Protection Agency to grant an exemption for up to 3 years to 
the Secretary of Defense and the Secretaries of the military 
departments to transport polychlorinated biphenyls generated 
by, or under the control of, the Department of Defense into the 
United States for purposes of their disposal, treatment, or 
storage.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Administrator of the Environmental Protection Agency to 
extend an exemption that has not yet expired for a period not 
to exceed 60 days for the purpose of authorizing the Secretary 
of Defense and the Secretaries of the military departments to 
provide for the transportation into the United States of 
polychlorinated biphenyls generated by, or under the control 
of, the Department for the purposes of their disposal, 
treatment, or storage, if those polychlorinated biphenyls are 
already in transit.
National Academy of Sciences study on human exposure to contaminated 
        drinking water at Camp Lejeune, North Carolina (sec. 318)
      The Senate amendment contained a provision (sec. 352) 
that would require the Secretary of the Navy to enter into an 
agreement with the National Academy of Sciences to conduct a 
comprehensive review and evaluation of the available scientific 
and medical evidence regarding associations between pre-natal, 
child, and adult exposure to drinking water contaminated with 
trichloroethylene and tetrachloroethylene at Camp Lejeune, 
North Carolina, as well as exposures to levels of 
trichloroethylene and tetrachloroethylene similar to those 
experienced at Camp Lejeune, and birth defects or diseases and 
any other adverse health effects. The provision would also 
require that, upon completion of the current epidemiological 
study by the Agency for Toxic Substances Disease Registry, the 
Commandant of the Marine Corps take appropriate actions, 
including use of national media, to notify former Camp Lejeune 
residents and employees who may have been exposed to 
contaminated drinking water at Camp Lejeune of the results of 
the study.
      The House bill contained no similar provision.
      The House recedes.

    Subtitle C--Program Requirements, Restrictions, and Limitations

Limitation on financial management improvement and audit initiatives 
        within the Department of Defense (sec. 321)
      The Senate amendment contained a provision (sec. 313) 
that would prohibit the Secretary of Defense from obligating 
any funds for activities related to the Department of Defense 
financial management improvement effort until the Secretary 
submits to the congressional defense committees a written 
determination that each activity proposed to be funded is 
consistent with the financial management improvement plan of 
the Department and likely to improve internal controls or 
otherwise result in sustained improvements in the ability of 
the Department to produce timely, reliable, and complete 
financial management information.
      The House bill contained no similar provision.
      The House recedes.
Funds for exhibits for the national museums of the Armed Forces (sec. 
        322)
      The Senate amendment contained a provision (sec. 312) 
that would make $3.0 million of the amounts appropriated to 
each of the armed force operation and maintenance accounts 
available to each Secretary of a military department for 
education and training purposes to acquire, install, and 
maintain exhibits at each facility designated by the Secretary 
concerned as the national museum for each armed force.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Prioritization of funds for equipment readiness and strategic 
        capability (sec. 323)
      The House bill contained a provision (sec. 346) that 
would require the Secretary of the Army to fully fund the reset 
of equipment used in the global war on terrorism, the 
fulfillment of equipment requirements for units transforming to 
modularity, and the reconstitution of prepositioned stocks. The 
provision would also require the Secretary to submit to the 
congressional defense committees an annual report containing 
information on these funding priorities. The provision would 
limit to $2.85 billion the funds to be appropriated annually 
for the Future Combat Systems (FCS) until these funding 
priorities have been met.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to ensure that financial resources are 
provided to enable the Secretary of each military department to 
meet its requirements for repair, recapitalization, and 
replacement of equipment used in the global war on terrorism. 
The amendment would also require the Secretary of Defense to 
ensure financial resources are provided to the Secretary of the 
Army to meet the Army's requirements for transforming to a 
modular force and reconstituting the equipment and materiel in 
Army prepositioned stocks. The amendment would further require 
the Secretary of Defense to submit, as part of the normal 
budget justification materials, detailed information regarding 
the repair, recapitalization, or replacement of equipment used 
in the global war on terror, the Army's transformation to a 
modular force, and the reconstitution of equipment and materiel 
in Army prepositioned stocks. The amendment would require an 
annual report to the congressional defense committees from the 
Secretary of the Army on the Army's progress in meeting the 
above requirements, and a report from the Comptroller General 
to the congressional defense committees containing an 
assessment of the Army's progress in meeting the above 
requirements.
Limitation on deployment of Marine Corps Total Force System to Navy 
        (sec. 324)
      The conferees agree to include a provision that would 
prohibit the expenditure of any funds for the development or 
modernization of Navy and Marine Corps manpower, personnel, and 
pay information technology systems for the application of the 
Marine Corps Total Force Systems (MCTFS) or any derivative 
system to the Navy until several conditions have been met. The 
provision would require the Secretary of the Navy to prepare an 
analysis of alternatives, comparing MCTFS to the Defense 
Integrated Military Human Resources System; a business case 
analysis; and an analysis of compatibility of MCTFS with the 
enterprise architecture of the Department of Defense. The 
provision would require the Government Accountability Office to 
conduct a review of the Navy reports within 90 days of receipt 
of the reports and provide a written assessment to the 
congressional defense committees and to the Chairman of the 
Defense Business Systems Management Committee (DBSMC). The 
provision would require that, no sooner than 120 days after 
receiving the Navy's reports, the Chairman of the DBSMC 
determine in writing to the congressional defense committees 
whether it is in the best interests of the Department to apply 
MCTFS to the Navy.

                 Subtitle D--Workplace and Depot Issues

Permanent exclusion of certain contract expenditures from percentage 
        limitation on the performance of depot-level maintenance (sec. 
        331)
      The House bill contained a provision (sec. 321) that 
would extend for 5 years the authority to exclude amounts 
expended for the performance of depot-level maintenance 
workload by nonfederal government personnel at a Center of 
Industrial and Technical Excellence from the percentage 
limitation in section 2466(a) of title 10, United States Code, 
if the personnel performing the work are provided pursuant to a 
public-private partnership.
      The Senate amendment contained a similar provision (sec. 
362) that would extend the exclusion indefinitely.
      The House recedes with an amendment that would move the 
reporting requirement contained in section 2474(f) of title 10, 
United States Code, to section 2466(e) of title 10, United 
States Code. The amendment would also add an element to that 
report and remove the requirement for a Comptroller General 
review of that report.
Minimum capital investment for certain depots (sec. 332)
      The House bill contained a provision (sec. 322) that 
would require the Secretary of the Air Force to invest a 
minimum of 6 percent of the total revenue of the Air Force 
depots in the capital investment budget to improve or sustain 
depot maintenance facilities, equipment, or processes.
      The Senate amendment contained a similar provision (sec. 
361). The provision would require a public depot that utilizes 
a working capital fund to invest, at a minimum, 6 percent of 
the actual total revenues from the previous year for capital 
investment within that depot.
      The Senate recedes with an amendment that would require 
all military departments to invest, at a minimum, 6 percent of 
average total revenues over the previous 3 years in their 
public depots for infrastructure, equipment, and process 
improvements. The Departments of the Army and Navy would only 
be required to invest at a minimum 4 percent in fiscal year 
2007 and 5 percent in fiscal year 2008, before rising to 6 
percent per fiscal year thereafter. The amendment would provide 
for a waiver authority for the Secretary of Defense if the 
Secretary determines that the waiver is necessary for reasons 
of national security and notifies the congressional defense 
committees.
      For the purposes of this provision, investment shall 
include those funds spent on the construction, addition, 
recapitalization, improvement, restoration, or modernization of 
depot infrastructure, equipment, and process improvements in 
direct support of depot operations. Other facility investments 
(i.e. installation and military community support facilities, 
utility infrastructure, and investment in facilities supporting 
other missions and functions of the installation) made at the 
same location as the depot facilities, but not in direct 
support of depot maintenance operations, shall not count toward 
the minimum investment requirement.
      The amendment would also require the military departments 
to report to the congressional defense committees on the level 
and type of investment, and a long-term depot maintenance 
facilities strategy.
Extension of temporary authority for contractor performance of security 
        guard functions (sec. 333)
      The House bill contained a provision (sec. 323) that 
would extend the temporary authority to contract for increased 
performance of security guard functions. The authority would 
expire at the end of fiscal year 2008. This section would 
require a report on implementation of the recommendations of a 
Government Accountability Office report on contractor security 
guards.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
the expiration date of the authority to contract for security 
guard functions until the end of fiscal year 2009. The 
amendment would also require that the total number of personnel 
employed under such contracts in fiscal year 2007 be no more 
than the total employed on October 1, 2006. The total number of 
personnel employed would be further limited in fiscal year 2008 
to 90 percent of the number employed on October 1, 2006, and 80 
percent of that number in fiscal year 2009.

                          Subtitle E--Reports

Report on Navy Fleet Response Plan (sec. 341)
      The House bill contained a provision (sec. 332) that 
would require the Secretary of the Navy to submit a report on 
the Navy Fleet Response Plan. The provision would also require 
the Comptroller General to submit a review of the Secretary's 
report. The provision would postpone the expansion of the Fleet 
Response Plan beyond the carrier strike groups until October 1, 
2007.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
some of the required elements of the two reports, change the 
date the Comptroller General's report is due, and change the 
limitation date on expansion of the Fleet Response Plan beyond 
carrier strike groups.
Report on Navy surface ship rotational crew programs (sec. 342)
      The House bill contained a provision (sec. 333) that 
would require the Secretary of the Navy to submit a report on 
ship rotational crew experiments. The provision would also 
require the Comptroller General to submit an assessment of the 
Secretary of Navy's report and require the Director of the 
Congressional Budget Office to submit a report on the long-term 
benefits and costs of surface ship crew rotational programs. 
The provision would postpone the implementation of any new 
surface ship rotational crew experiment or program until 
October 1, 2009.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow the 
ongoing crew rotation program for mine countermeasure ships and 
allow the Navy to employ two crews per ship for the first four 
Littoral Combat Ships.
Report on Army live-fire ranges in Hawaii (sec. 343)
      The House bill contained a provision (sec. 334) that 
would require the Secretary of the Army to submit a report to 
Congress on the adequacy of live-fire training facilities in 
the state of Hawaii.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Comptroller General report on joint standards and protocols for access 
        control systems at Department of Defense installations (sec. 
        344)
      The House bill contained a provision (sec. 335) that 
would require the Comptroller General to submit a report on 
joint standards and protocols for access control systems at 
Department of Defense installations.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Comptroller General report on readiness of Army and Marine Corps ground 
        forces (sec. 345)
      The Senate amendment contained a provision (sec. 351) 
that would require the Comptroller General to submit a report, 
not later than March 1, 2007, to the congressional defense 
committees on the readiness of Army and Marine Corps ground 
forces.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
deadline of the report to June 1, 2007, and require the report 
to be submitted to the Committees on Armed Services of the 
Senate and the House of Representatives.
Report on Air Force safety requirements for Air Force flight training 
        operations at Pueblo Memorial Airport, Colorado (sec. 346)
      The Senate amendment contained a provision (sec. 360) 
that would require the Secretary of the Air Force to submit to 
the congressional defense committees a report, not later than 
February 15, 2007, on Air Force flight safety requirements at 
Pueblo Memorial Airport, Colorado.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to include in the report a description of the 
funding of fire-fighting and crash rescue support through the 
execution of a services contract for the Initial Flight 
Screening program.
Annual report on Personnel Security Investigations for Industry and 
        National Industrial Security Program (sec. 347)
      The House bill contained provisions (secs. 336 and 1041) 
that would address personnel security investigations. Section 
336 would require the Secretary of Defense to provide a report 
to Congress on the status of industry personnel security 
clearances granted between October 1, 1999, and September 30, 
2006. The provision would require that the initial report be 
followed by semi-annual updates, including a certification by 
the Secretary concerning improvements to the personnel security 
clearance investigation process. Section 1041 would prohibit 
the Department of Defense from allowing a security clearance 
that is pending renewal to expire unless the Secretary 
certifies to Congress that the Defense Security Service is 
fully funded, continuing to accept requests from industry, and 
has taken steps to eliminate its backlog of requests.
      The Senate amendment contained no similar provisions.
      The Senate recedes with an amendment that would require 
the Secretary to provide an annual report on the status of 
industry security clearances with the submission of the 
President's annual budget request. The amendment would also 
require a report by the Comptroller General on the status and 
cost of industry security clearance investigations conducted 
between October 1, 1999, and September 30, 2006, as well as the 
Department's progress in achieving improvements to the 
personnel security investigations program.
Five-year extension of annual report on training range sustainment plan 
        and training range inventory (sec. 348)
      The Senate amendment contained a provision (sec. 353) 
that would express the sense of Congress that the Department of 
Defense should establish a policy to identify military aerial 
training areas, determine aerial training airspace requirements 
to meet future training needs, and undertake necessary actions 
to preserve and, if necessary, expand those areas of airspace 
needed for training requirements. The provision would also 
require the Secretary of Defense to submit a report to the 
congressional defense committees setting forth a plan to meet 
the Department's airspace needs through 2025.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend for 
5 years the annual report on the Department's training range 
sustainment plan and training range inventory required by 
section 366 of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314). The amendment would 
also extend the period for the Comptroller General's review of 
the report from 60 days to 90 days.
      The conferees note that the Comptroller General's most 
recent assessment of the Secretary's annual report stated that, 
once again, the report did not include an assessment of current 
and future training range requirements or an evaluation of the 
adequacy of resources to meet current and future training 
requirements, even though specifically required to do so by 
current law.
      The conferees also note, with great concern, that this 
assessment also indicates that some of the requirements of 
section 366 have not been met because Department officials 
consider them overly burdensome or impractical. If the 
Department believes that it cannot comply with some 
requirements of the law, or that the requirement is overly 
burdensome, the conferees expect the Department to ask Congress 
to modify the appropriate portion of the law, not to ignore the 
requirements of the law.
      The conferees are aware of the increasing pressure on our 
training ranges. Urban development around many installations in 
some cases has resulted in restrictions on nighttime training. 
The growth of commercial and general aviation has put 
increasing pressure on current aviation training ranges and 
limits the possibility of expansion of those training areas in 
the future. Increasing capability and range of both ground and 
aviation systems increases the likelihood that range 
requirements may increase in the future.
      Therefore, the conferees extend the annual reporting 
requirement for an additional 5 years and expect that all 
future reports will fully comply with the requirements 
specified in section 366.
Reports on withdrawal or diversion of equipment from reserve units for 
        support of reserve units being mobilized and other units (sec. 
        349)
      The Senate amendment contained a provision (sec. 355) 
that would require the Secretaries of the military departments 
to submit a report to the Secretary of Defense not later than 
90 days after the withdrawal or diversion of equipment from a 
unit of the reserve component to a unit of the active or 
reserve component to meet mission requirements. The report 
would contain a plan to replace or recapitalize withdrawn or 
diverted equipment and a signed Memorandum of Understanding 
between the reserve component unit from which equipment was 
withdrawn or diverted and the active or reserve component unit 
that received the withdrawn or diverted equipment that 
specifies how the equipment will be tracked and the expected 
replacement date of the withdrawn or diverted equipment.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit quarterly reports to the 
congressional defense committees on the withdrawal or diversion 
of equipment from a unit of the reserve component to a unit of 
the active or reserve component.

                       Subtitle F--Other Matters

Department of Defense strategic policy on prepositioning of materiel 
        and equipment (sec. 351)
      The House bill contained a provision (sec. 341) that 
would require the Secretary of Defense to establish a 
comprehensive approach to Department of Defense prepositioning 
programs. The provision would also limit the diversion of 
materiel and equipment from prepositioned stocks.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add the 
requirements of combatant commands as a factor to be considered 
when creating the policy on prepositioning programs, and would 
also add the provision of humanitarian assistance as an 
authorized purpose for diversion of materiel and equipment from 
prepositioned stocks.
      It is the conferees' intent that any prepositioning 
policy created in accordance with this provision shall contain 
guidance regarding how quickly prepositioned equipment sets 
must be reconstituted when they have been used for contingency 
or humanitarian operations.
Authority to make Department of Defense horses available for adoption 
        (sec. 352)
      The House bill contained a provision (sec. 342) that 
would amend section 2583 of title 10, United States Code, to 
include horses owned by the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Sale and use of proceeds of recyclable munitions materials (sec. 353)
      The House bill contained a provision (sec. 343) that 
would authorize the Secretary of the Army to establish a 
program to sell recyclable materials resulting from the 
demilitarization of conventional military munitions. The 
proceeds from the sales would be available to the Army for 
reclamation, recycling, and reuse of conventional military 
munitions.
      The Senate amendment contained a similar provision (sec. 
371).
      The Senate recedes with a technical amendment.
Recovery and transfer to Corporation for the Promotion of Rifle 
        Practice and Firearms Safety of certain firearms, ammunition, 
        and parts granted to foreign countries (sec. 354)
      The Senate amendment contained a provision (sec. 379) 
that would allow the Secretary of the Army to recover rifles, 
ammunition, repair parts, and other supplies from a country who 
had received those items under the Foreign Assistance Act of 
1961 (22 U.S.C. 2314), when those items are excess to the needs 
of that country. The recovered rifles, ammunition, repair 
parts, and other supplies would be available for transfer to 
the Corporation for the Promotion of Rifle Practice and 
Firearms Safety.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Extension of Department of Defense telecommunications benefit program 
        (sec. 355)
      The Senate amendment contained a provision (sec. 373) 
that would extend the authorization for the Department of 
Defense telecommunications benefit from September 30, 2006, to 
60 days after the date on which the Secretary of Defense has 
declared that a contingency operation has ended. The provision 
would also authorize the Secretary to extend the 
telecommunications benefit to members who remain hospitalized 
as a result of wounds or injuries incurred while serving in 
support of a contingency operation.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Extension of availability of funds for commemoration of success of the 
        Armed Forces in Operation Enduring Freedom and Operation Iraqi 
        Freedom (sec. 356)
      The Senate amendment contained a provision (sec. 374) 
that would amend section 378(b)(2) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) to 
extend the authority for commemoration of success of the armed 
forces in Operation Enduring Freedom and Operation Iraqi 
Freedom through fiscal year 2007.
      The House bill contained no similar provision.
      The House recedes.
Capital security cost sharing (sec. 357)
      The House bill contained a provision (sec. 344) that 
would require the Secretary of Defense to provide to the 
congressional defense committees an annual accounting of 
Department of Defense overseas staffing levels, and to 
reconcile that accounting with the cost-sharing fees levied by 
the Secretary of State, in accordance with section 629(e)(1) of 
the Consolidated Appropriations Act, 2005 (Public Law 108-447).
      The Senate amendment contained no similar provision.
      The Senate recedes.
Utilization of fuel cells as back-up power systems in Department of 
        Defense operations (sec. 358)
      The Senate amendment contained a provision (sec. 377) 
that would require the Secretary of Defense to consider the use 
of fuel cells as replacements for current back-up power 
systems.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to also consider the use of fuel cells in 
individual equipment items.
Improving Department of Defense support for civil authorities (sec. 
        359)
      The Senate amendment contained a provision (sec. 378) 
that would authorize the Secretary of Defense to preposition 
prepackaged or preidentified basic response assets such as 
medical supplies, food, water, and communications equipment in 
order to improve the ability of the Department of Defense to 
rapidly respond to requests for support from civilian 
authorities, and would require that the Department be 
reimbursed for the cost of such activities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to consult with the Secretary of 
Homeland Security in the development of concept plans to 
support civilian authorities.
Energy efficiency in weapons platforms (sec. 360)
      The Senate amendment contained a provision (sec. 375) 
that would establish a policy for the Department of Defense to 
improve the fuel efficiency of weapons platforms, consistent 
with mission requirements. The provision would also require a 
report from the Secretary of Defense regarding the progress in 
implementing that policy.
      The House bill contained no similar provision.
      The House recedes.
Prioritization of funds within Navy mission operations, ship 
        maintenance, combat support forces, and weapons system support 
        (sec. 361)
      The House bill contained a provision (sec. 345) that 
would require the Secretary of the Navy to ensure that 100 
percent of the requirements for steaming days per quarter for 
deployed and non-deployed ship operations and 100 percent of 
the projected ship and air depot maintenance workload are 
funded before Navy operation and maintenance funds may be 
expended for the Navy Expeditionary Combat Command. The 
provision would also require the Secretary of the Navy to 
submit a report with the annual budget request certifying that 
these requirements are fully funded.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of Congress that the Secretary of Defense should 
ensure sufficient funds are provided to support the critical 
training and depot maintenance necessary for the Navy to 
support the National Military Strategy. The amendment would 
also require a certification from the Secretary of Defense that 
the Navy has budgeted to fully meet their requirements for ship 
steaming days per quarter and for projected aviation and ship 
depot maintenance requirements. The amendment would limit the 
obligation of funds to no more than 80 percent of the total 
funds in Operation and Maintenance, Defense-wide, for the 
Office of the Secretary of Defense, until that certification 
has been submitted. The amendment would further require the 
Secretary of the Navy to submit two reports to the 
congressional defense committees. The first is an annual report 
regarding the progress towards the above requirements and the 
second is a report on the Riverine Squadrons of the Navy.
Provision of adequate storage space to secure personal property outside 
        of assigned military family housing unit (sec. 362)
      The conferees agree to include a provision that would 
require the Secretary of a military department to provide, 
under certain conditions, a means for the storage of certain 
personal possessions belonging to military members residing in 
family housing who are assigned to a family-restricted area for 
a period greater than 180 days.
Expansion of payment of replacement value of personal property damaged 
        during transport at Government expense (sec. 363)
      The House bill contained a provision (sec. 1102) that 
would amend section 2636a of title 10, United States Code, to 
authorize contracting for full replacement value coverage for 
household goods of civilian employees of the Department of 
Defense damaged or lost during transportation at government 
expense.
      The Senate amendment contained a provision (sec. 631) 
that would amend section 2636a of title 10, United States Code, 
to require the Secretary of Defense, not later than March 1, 
2008, to include in contracts for the transportation of baggage 
and household effects for both military members and civilian 
employees a clause requiring carriers to pay the full 
replacement value for loss or damage. The provision would also 
require certain certifications by the Secretary about the 
Families First program and a review and assessment by the 
General Accountability Office on December 1, 2006, and June 1, 
2007, respectively, of the progress of the Department in 
implementing the Families First program.
      The House recedes.

                   Legislative Provisions Not Adopted

Limitation on availability of funds for the Army Logistics 
        Modernization Program
      The Senate amendment contained a provision (sec. 311) 
that would prohibit the expenditure of any funds for continuing 
the Army Logistics Modernization Program until the Secretary of 
Defense certifies that the program has adequately addressed its 
many shortcomings.
      The House bill contained no similar provision.
      The Senate recedes.
Limitation on availability of operation and maintenance funds for the 
        management headquarters of the Defense Information Systems 
        Agency
      The Senate amendment contained a provision (sec. 314) 
that would restrict funds authorized to be appropriated for the 
operation and maintenance of the management headquarters of the 
Defense Information Systems Agency until the Secretary of 
Defense submits a report to the congressional defense 
committees on the acquisition strategy of the Department of 
Defense for commercial satellite services.
      The House bill contained no similar provision.
      The Senate recedes.
Analysis and report regarding contamination and remediation 
        responsibility for Norwalk Defense Fuel Supply Point, Norwalk, 
        California
      The House bill contained a provision (sec. 315) that 
would require the Secretary of the Air Force to report to 
Congress not later than January 30, 2007, on matters related to 
contamination and remediation of property at the Norwalk 
Defense Fuel Supply Point in Norwalk, California. This 
provision would also prohibit the Secretary of the Air Force 
from conveying the property before pursuing a fair market value 
transfer of the property to the City of Norwalk, submitting the 
required report, and providing an explanation of why efforts to 
transfer the property to the city have not been successful.
      The Senate amendment contained no similar provision.
      The House recedes.
Report regarding scope of perchlorate contamination at Formerly Used 
        Defense Sites
      The House bill contained a provision (sec. 316) that 
would require the Secretary of Defense to submit to Congress a 
report containing the results of a study of the scope of 
perchlorate contamination at Formerly Used Defense Sites, 
including identification of military installations or 
contractors that may have stored perchlorate or products 
containing perchlorate.
      The Senate amendment contained no similar provision.
      The House recedes.
Infantry combat equipment
      The Senate amendment contained a provision (sec. 316) 
that would authorize $2.5 million in Operation and Maintenance, 
Marine Corps Reserve for infantry combat equipment.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Operation and Maintenance, Marine Corps Reserve.
Individual First Aid Kit
      The Senate amendment contained a provision (sec. 317) 
that would authorize $1.5 million in Operation and Maintenance, 
Marine Corps Reserve for the Individual First Aid Kit.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Operation and Maintenance, Marine Corps Reserve.
Reading for the Blind and Dyslexic program of the Department of Defense
      The Senate amendment contained a provision (sec. 318) 
that would authorize $500,000 in Operation and Maintenance, 
Defense-wide, for the Reading for the Blind and Dyslexic 
program of the Department of Defense for severely wounded or 
injured members of the Armed Forces.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report.
Military training infrastructure improvements at Virginia Military 
        Institute
      The Senate amendment contained a provision (sec. 319) 
that would make $2.9 million from Operation and Maintenance, 
Army (OMA), available to the Virginia Military Institute for 
military training infrastructure improvements.
      The House bill contained no similar provision.
      The Senate recedes.
      However, the conferees agree to authorize an increase of 
$2.9 million in OMA for the Virginia Military Institute for 
military training infrastructure improvements to provide 
adequate field training of all Armed Forces Reserve Officer 
Training Corps. The conference agreement is reflected in the 
tables of this report.
Environmental documentation for beddown of F-22A aircraft at Holloman 
        Air Force Base, New Mexico
      The Senate amendment contained a provision (sec. 320) 
that would require the Secretary of the Air Force to prepare 
environmental documentation for the beddown of F-22A aircraft 
at Holloman Air Force Base, New Mexico.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the Air Force is conducting the 
environmental compliance documentation under the requirements 
of the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) to support the beddown of the F-22A aircraft at 
Holloman Air Force Base, New Mexico, and urge the Air Force to 
expeditiously complete such requirements.
Report on CH-47 helicopter reset
      The House bill contained a provision (sec. 324) that 
would require a report from the Secretary of the Army regarding 
reset of all CH-47 helicopters in the Army inventory.
      The Senate amendment contained no similar provision.
      The House recedes.
Report on nuclear attack submarine depot maintenance
      The House bill contained a provision (sec. 331) that 
would require the Secretary of the Navy to submit a report on 
criteria used when a nuclear attack submarine is sent for 
maintenance to a facility other than a facility located at the 
homeport of the submarine.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees direct the Secretary of the Navy to provide 
to the Committees on Armed Services of the Senate and the House 
of Representatives the formal directive or guidance for nuclear 
attack submarine maintenance once it is completed.
Report on actions to reduce Department of Defense consumption of 
        petroleum-based fuel
      The Senate amendment contained a provision (sec. 354) 
that would require the Secretary of Defense to report on the 
actions taken, and to be taken, by the Department of Defense to 
reduce the consumption of petroleum-based fuels.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the implementation of current 
legislation and regulatory guidance should facilitate reduction 
of petroleum-based fuels by the Department. Therefore, the 
conferees direct the Secretary to submit a report, not later 
than September 1, 2007, to the Committees on Armed Services of 
the Senate and the House of Representatives on the status of 
implementation by the Department of the requirements contained 
in the following:
      (1) Energy Policy Act of 2005 (Public Law 109-58);
      (2) Energy Policy Act of 1992 (Public Law 102-486);
      (3) Executive Order 13123;
      (4) Executive Order 13149; and
      (5) other regulations or directions relating to the 
Department's consumption of petroleum-based fuels.
      Furthermore, the conferees are concerned that although 
Flexible Fuel Vehicles (FFVs) are being introduced into the 
Department's vehicle inventory, little reduction in petroleum-
based fuel is being realized because operators continue to fuel 
the FFVs with gasoline rather than E85 (85 percent ethanol with 
15 percent gasoline) or M85 (85 percent methanol and 15 percent 
gasoline). Therefore, the conferees direct the Secretary to 
include in the report an analysis of the reduction of 
petroleum-based fuels since introduction of FFVs into the 
inventory and an assessment of how the Department might 
increase the consumption of E85 or M85 in FFVs.
Plan to replace equipment withdrawn or diverted from the reserve 
        components of the Armed Forces for Operation Iraqi Freedom or 
        Operation Enduring Freedom
      The Senate amendment contained identical provisions 
(secs. 356-357) that would require the Secretary of Defense to 
submit to the congressional defense committees a plan to 
replace equipment withdrawn or diverted from units of the 
reserve components of the Armed Forces for use in Operation 
Iraqi Freedom or Operation Enduring Freedom.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the reporting requirements of 
these provisions are incorporated elsewhere in this report.
Report on High Altitude Aviation Training Site, Eagle County, Colorado
      The Senate amendment contained a provision (sec. 359) 
that would require a report from the Secretary of the Army on 
the High Altitude Aviation Training Site (HAATS) in Eagle 
County, Colorado.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that a similar reporting requirement 
already exists in the House Report accompanying H.R. 5122 (H. 
Rept. 109-452) of the G.V. `Sonny' Montgomery National Defense 
Authorization Act for Fiscal Year 2007.
Report on use of alternative fuels by the Department of Defense
      The Senate amendment contained a provision (sec. 360A) 
that would require the Secretary of Defense to conduct a study 
on the use of alternative fuels by the Armed Forces and the 
defense agencies.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that section 357 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163) requires a study on the use of biodiesel and ethanol fuels 
containing at least 85 percent ethyl alcohol. The conferees 
direct the Secretary of Defense to conduct a supplementary 
study that would address each of the elements set forth in 
paragraphs (1) through (7) of section 357(b) for the following 
alternative fuels: biofuels other than biodiesel, renewable 
diesel, ethanol that contains less than 85 percent ethyl 
alcohol, cellulosic ethanol, and synthetic hydrocarbon-based 
fuels. The Secretary shall submit a report on the results of 
such a study not later than 180 days after the date of the 
enactment of this Act. The report may be incorporated into, or 
provided as an annex to, the study required by section 357(c).
Additional exception to prohibition on contractor performance of 
        firefighting functions
      The Senate amendment contained a provision (sec. 363) 
that would provide an exception to the prohibition on 
contracting for the performance of certain firefighting 
functions on military installations or facilities.
      The House bill contained no similar provision.
      The Senate recedes.
Temporary security guard services for certain work caused by 
        realignment of military installations under the base closure 
        laws
      The Senate amendment contained a provision (sec. 364) 
that would allow a military department to contract for 
security-guard services at installations being realigned under 
the base closure laws.
      The House bill contained no similar provision.
      The Senate recedes.
Joint Advertising, Market Research, and Studies Program
      The Senate amendment contained a provision (sec. 1416) 
that would authorize $10.0 million in Operation and 
Maintenance, Defense-wide for the Joint Advertising, Market 
Research, and Studies program.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report in Operation and Maintenance, Defense-wide.

              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, 2007: Army, 
512,400; Navy, 340,700; Marine Corps, 180,000; and Air Force, 
334,200.
      The Senate amendment contained a similar provision (sec. 
401).
      The Senate recedes.
      The conferees recommend end strength levels for active 
forces for fiscal year 2007 as set forth in the following 
table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             FY 2007                             Change from
                                                                FY 2006      ---------------------------------------------------------------------------
                         Service                               authorized                             Conferee                              FY 2006
                                                                                   Request         recommendation    FY 2007 request       authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army.....................................................            512,400            482,400            512,400             30,000                  0
Navy.....................................................            352,700            340,700            340,700                  0            -12,000
Marine Corps.............................................            179,000            175,000            180,000              5,000              1,000
Air Force................................................            357,400            334,200            334,200                  0            -23,200
                                                          ----------------------------------------------------------------------------------------------
    DoD Total............................................          1,401,500          1,332,300          1,367,300             35,000            -34,200
--------------------------------------------------------------------------------------------------------------------------------------------------------

Revision in permanent active duty end strength minimum levels (sec. 
        402)
      The House bill contained a provision (sec. 402) that 
would establish new minimum active duty end strengths for the 
Army, Navy, Marine Corps, and Air Force as of September 30, 
2007.
      The Senate amendment contained a provision (sec. 402) 
that would repeal section 691 of title 10, United States Code, 
which establishes permanent end strength levels necessary to 
support a national defense strategy to be able to conduct two 
nearly simultaneous major regional contingencies.
      The Senate recedes with an amendment that would maintain 
the minimum active duty end strength level for the Army at the 
fiscal year 2006 level of 502,400.
      The conferees recommend minimum end strength levels for 
active forces as set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                   2007           Change from
                                                              FY 2006      -------------------------------------
                        Service                              authorized         Conference
                                                                              recommendation        FY 2006
----------------------------------------------------------------------------------------------------------------
Army...................................................            502,400            502,400                  0
Navy...................................................            352,700            340,700            -12,000
Marine Corps...........................................            179,000            180,000              1,000
Air Force..............................................            357,400            334,200            -23,200
                                                        --------------------------------------------------------
    DoD Total..........................................          1,391,500          1,357,300            -34,200
----------------------------------------------------------------------------------------------------------------

Additional authority for increases of Army and Marine Corps active duty 
        end strengths for fiscal years 2008 and 2009 (sec. 403)
      The House bill contained a provision (sec. 403) that 
would authorize additional increases of active duty end 
strength for the Army and for the Marine Corps in fiscal years 
2008 and 2009 above the strengths authorized for those services 
in fiscal year 2007. The provision would authorize an 
additional 20,000 troops for a total end strength of 532,400 
for the Army, and an additional 4,000 troops for a total end 
strength of 184,000 for the Marine Corps, during fiscal years 
2008 and 2009.
      The Senate amendment contained no similar provision.
      The Senate 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 Selected 
Reserve personnel, including the end strengths for reserves on 
active duty in support of the reserves as of September 30, 
2007: the Army National Guard of the United States, 350,000; 
the Army Reserve, 200,000; the Navy Reserve, 71,300; the Marine 
Corps Reserve, 39,600; the Air National Guard of the United 
States, 107,000; the Air Force Reserve, 74,900; and the Coast 
Guard Reserve, 10,000.
      The Senate amendment contained an identical provision 
(sec. 411).
      The conference agreement includes this provision.
      The conferees recommend end strength levels for the 
Selected Reserve for fiscal year 2007 as set forth in the 
following table:

----------------------------------------------------------------------------------------------------------------
                                                                    FY 2007                    Change from
                                             FY 2006   ---------------------------------------------------------
                 Service                    authorized                    Conferee        FY 2007      FY 2006
                                                          Request      recommendation     request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard......................      350,000      350,000            350,000            0            0
Army Reserve.............................      205,000      200,000            200,000            0       -5,000
Navy Reserve.............................       73,100       71,300             71,300            0       -1,800
Marine Corps Reserve.....................       39,600       39,600             39,600            0            0
Air National Guard.......................      106,800      107,000            107,000            0         +200
Air Force Reserve........................       74,000       74,900             74,900            0         +900
                                          ----------------------------------------------------------------------
    DoD Total............................      848,500      842,800            842,800            0       -5,700
Coast Guard Reserve......................       10,000       10,000             10,000            0            0
----------------------------------------------------------------------------------------------------------------

      Should Army National Guard end strength fall below the 
authorized number, the conferees direct that the unused 
additional funds may only be used for Army National Guard 
priorities, and only after the Department of Defense complies 
with the normal budget process that includes submitting prior 
notification and a detailed justification to Congress.
      Although agreeing to reduce Army Reserve end strength for 
fiscal year 2007 to 200,000, as requested in the President's 
budget, the conferees are concerned that this end strength 
authorization is not adequate to sustain the combat support and 
combat service support structure that the Army Reserve will be 
required to provide to the Army's future modular force.
      Notwithstanding this end strength reduction, the 
conferees note that the Secretary of Defense is authorized 
under section 115 of title 10, United States Code, to vary, by 
not more than 2 percent, the end strength authorized for a 
fiscal year for the Selected Reserve of any of the reserve 
components and would expect such authority to be granted to 
increase the Army Reserve end strength during fiscal year 2007, 
if required.
      Furthermore, the conferees urge the Secretary of the Army 
to maintain an Army Reserve end strength of 205,000 as a 
recruiting goal and that the President's budget for fiscal 
years 2008-2013 request an Army Reserve end strength of 
205,000, and provide a corresponding increase in Army full-time 
support personnel, if the Army Reserve can recruit to that 
level.
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 reserve components as of 
September 30, 2007: the Army National Guard of the United 
States, 28,165; the Army Reserve, 15,416, the Navy Reserve, 
12,564; the Marine Corps Reserve, 2,261; the Air National Guard 
of the United States, 13,291; and the Air Force Reserve, 2,707.
      The Senate amendment contained a similar provision (sec. 
412) that would authorize end strengths of 27,441 for the Army 
National Guard of the United States, 13,206 for the Air 
National Guard of the United States, and identical end 
strengths for the other services.
      The Senate recedes with an amendment that would authorize 
end strengths of 27,441 for the Army National Guard of the 
United States.
      The conferees recommend end strength levels for Reserves 
on active duty in support of the reserves as set forth in the 
following table:

----------------------------------------------------------------------------------------------------------------
                                                                    FY 2007                    Change from
                                             FY 2006   ---------------------------------------------------------
                 Service                    authorized                    Conferee        FY 2007      FY 2006
                                                          Request      recommendation     request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard......................       27,396       27,441             27,441            0           45
Army Reserve.............................       15,270       15,416             15,416            0          146
Naval Reserve............................       13,392       12,564             12,564            0         -828
Marine Corps Reserve.....................        2,261        2,261              2,261            0            0
Air National Guard.......................       13,123       13,206             13,291           85          168
Air Force Reserve........................        2,290        2,707              2,707            0          417
                                          ----------------------------------------------------------------------
    DoD Total............................       73,732       73,595             73,680           85          -52
----------------------------------------------------------------------------------------------------------------

      In addition to the budget request, the end strengths 
recommended by the conferees would include an additional 85 
Reserves on active duty in support of the Air National Guard 
for the purpose set out in the House report accompanying H.R. 
5122 (H. Rept. 109-452) of the National Defense Authorization 
Act for Fiscal Year 2007.
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, 2007: the Army 
National Guard of the United States, 27,615; the Army Reserve, 
7,912; the Air National Guard of the United States, 23,255; and 
the Air Force Reserve, 10,124.
      The Senate amendment contained a similar provision (sec. 
413) that would authorize an end strength for military 
technicians (dual status) for the Army National Guard of the 
United States of 26,050, and identical end strengths for the 
other reserve components.
      The House recedes.
      The conferees recommend end strength levels for military 
technicians (dual status) as set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                    FY 2007                    Change from
                                             FY 2006   ---------------------------------------------------------
                 Service                    authorized                    Conferee        FY 2007      FY 2006
                                                          Request      recommendation     request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard......................       25,563       26,050             26,050            0          487
Army Reserve.............................        7,649        7,912              7,912            0          263
Air National Guard.......................       22,971       23,255             23,255            0          284
Air Force Reserve........................        9,852       10,124             10,124            0          272
                                          ----------------------------------------------------------------------
    DoD Total............................       66,035       67,341             67,341            0        1,306
----------------------------------------------------------------------------------------------------------------

Fiscal year 2007 limitation on number of non-dual status technicians 
        (sec. 414)
      The House bill contained a provision (sec. 414) that 
would establish the maximum end strengths for the reserve 
components of the Army and Air Force for non-dual status 
technicians as of September 30, 2007.
      The Senate amendment contained an identical provision 
(sec. 414).
      The conference agreement includes this provision.
Maximum number of reserve personnel authorized to be on active duty for 
        operational support (sec. 415)
      The House bill contained a provision (sec. 415) that 
would authorize the maximum number of reserve component 
personnel who may be on active duty or full-time National Guard 
duty under section 115(b) of title 10, United States Code, 
during fiscal year 2007 to provide operational support.
      The Senate amendment contained an identical provision 
(sec. 415).
      The conference agreement includes this provision.

              Subtitle C--Authorization of Appropriations

Military personnel (sec. 421)
      The House bill contained a provision (sec. 421) that 
would authorize a total of $109,820.5 million to be 
appropriated to the Department of Defense in fiscal year 2007 
for military personnel.
      The Senate amendment contained a similar provision (sec. 
421) that would authorize a total of $111,928.5 million.
      The Senate recedes with an amendment that would authorize 
$110,098.6 million to be appropriated to the Department of 
Defense in fiscal year 2007 for military personnel.
      The conferees agree to the following changes from the 
budget request related to the military personnel accounts:

[In millions]

Additional special pay for dental officers..............           $ 4.0
Incentives for High-Demand, Low-Density Assignments.....             5.0
Commissioned Officers as Students at Medical Schools....             1.0
Educational Loan Repayment for Health Professionals.....             4.0
Health Professions Scholarships.........................            91.0
Recruitment Bonus for Critical Health Care Specialties..            19.0
Unobligated balances, Army..............................           -31.4
Unobligated balances, Navy..............................           -85.0
Unobligated balances, Marine Corps......................           -88.1
Unobligated balances, Air Force.........................          -248.3
Unobligated balances, Army Reserve......................           -66.5
Unobligated balances, Navy Reserve......................           -17.3
Unobligated balances, Marine Corps Reserve..............           -15.4
Unobligated balances, Air Force Reserve.................           -25.8
Unobligated balances, Army National Guard...............           -84.5
Unobligated balances, Air National Guard................           -89.9
Reserves cost avoidance, Army Reserve...................           -20.9
Reserves cost avoidance, Air Force Reserve..............            -0.8
Reserves cost avoidance, Air National Guard.............           -28.3
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................          -678.1

      The conferees note that in addition to the amounts shown 
above, $8,107.0 million was made available in title XV of this 
Act for the additional costs of military personnel involved in 
ongoing operations in Iraq and Afghanistan.
Armed Forces Retirement Home (sec. 422)
      The House bill contained a provision (sec. 422) that 
would authorize $54.8 million to be appropriated for fiscal 
year 2007 from the Armed Forces Retirement Home Trust Fund for 
operation of the Armed Forces Retirement Home.
      The Senate amendment contained an identical provision 
(sec. 422).
      The conference agreement includes this provision.

                   TITLE V--MILITARY PERSONNEL POLICY

                        Item of Special Interest

Department of Defense oversight of recruiter misconduct
      The conferees are concerned that military recruiter 
misconduct, and particularly misconduct involving criminal or 
otherwise improper sexual contact with recruit candidates, 
irreparably harms the young people involved, erodes the moral 
and ethical standards that are the hallmark of the U.S. Armed 
Forces, and damages public support for military operations and 
recruiting by undermining the trust and high esteem that the 
American people place in their military forces. The conferees 
believe that recruiter misconduct must not be tolerated and 
that the Secretary of Defense, the Secretaries of the military 
departments, and the uniformed leaders of the Armed Forces must 
take decisive action to ensure that policies and procedures 
effectively prevent and, when required, respond to incidents of 
misconduct.
      The conferees direct the Secretary of Defense to review 
the programs designed to prevent recruiter misconduct and, when 
misconduct does occur, the policies and procedures needed to 
standardize identification and reporting throughout the 
Department of Defense. The conferees direct that the review 
also include an assessment of the ``No One Alone Policy'' 
established by the State of Indiana National Guard to limit 
unsupervised contact between recruiters and recruit candidates 
of the opposite gender to determine if the policy is suitable 
for Department-wide implementation. The conferees direct the 
Secretary of Defense to submit the results of the review, 
including findings, conclusions, and recommendations, by March 
1, 2007, to the Committees on Armed Services of the Senate and 
the House of Representatives.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

               PART I--OFFICER PERSONNEL POLICY GENERALLY

Military status of officers serving in certain intelligence community 
        positions (sec. 501)
      The House bill contained a provision (sec. 505) that 
would clarify the status of flag and general officers assigned 
to certain positions in the Office of the Director of National 
Intelligence and the Central Intelligence Agency. The provision 
would protect the officers and organizations concerned from 
perceptions of organizational conflicts of interest or 
inappropriate influence.
      The Senate amendment contained a similar provision (sec 
501).
      The Senate recedes with a technical amendment.
Extension of age for mandatory retirement for active-duty general and 
        flag officers (sec. 502)
      The Senate amendment contained a provision (sec. 503) 
that would amend section 1251 of title 10, United States Code, 
to increase the age for mandatory retirement for general and 
flag officers from 62 to 64. The provision would authorize the 
Secretary of Defense to defer retirement of officers serving in 
grades above major general and rear admiral to age 66 and the 
President to defer retirement for such officers until age 68. 
The provision would also eliminate the numerical limit on the 
number of deferments of retirement that may be in effect at any 
one time.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
amend section 1251 and add a new section 1253 to chapter 63 of 
title 10, United States Code.
Increased mandatory retirement ages for reserve officers (sec. 503)
      The Senate amendment contained a provision (sec. 508) 
that would increase the mandatory retirement age for reserve 
component officers in the grade of O-8 from 62 to 64 years; for 
officers in the grade of O-7 from 60 to 62 years; and for 
officers in grades below O-7 from 60 to 62 years. The provision 
would also increase the mandatory retirement age of officers 
holding certain offices, such as the Chief of the National 
Guard Bureau, Chiefs of Reserve of the services, Directors of 
the Army and Air National Guard, and the adjutants general of 
the States, from 64 to 66 years.
      The House bill contained no similar provision.
      The House recedes.
Standardization of grade of senior dental officer of the Air Force with 
        that of senior dental officer of the Army (sec. 504)
      The House bill contained a provision (sec. 502) that 
would amend section 8081 of title 10, United States Code, to 
require that the officer serving as the Assistant Surgeon 
General for Dental Services in the Air Force be appointed in 
the grade of major general.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Management of chief warrant officers (sec. 505)
      The House bill contained a provision (sec. 503) that 
would amend section 580 of title 10, United States Code, to 
eliminate the requirement for a mandatory continuation board in 
the case of chief warrant officers, W-4, who have twice failed 
to be selected for promotion and allow service secretaries in 
their discretion to retain such chief warrant officers on 
active duty. The provision would also modify section 1305 of 
title 10, United States Code, to increase the years of service 
from 24 to 30 that a warrant officer may serve on active duty 
before mandatory retirement.
      The Senate amendment contained a similar provision (sec. 
507).
      The Senate recedes with an amendment that would specify 
that chief warrant officers retained on active duty after twice 
failing to be selected for promotion to the grade of W-5 would 
continue to be eligible for promotion while remaining on active 
duty.
Extension of temporary reduction of time-in-grade requirement for 
        eligibility for promotion for certain active-duty list officers 
        in grades of first lieutenant and lieutenant (junior grade) 
        (sec. 506)
      The House bill contained a provision (sec. 504) that 
would amend section 619(a) of title 10, United States Code, to 
make permanent the authority to promote officers in the grade 
of first lieutenant or lieutenant (junior grade) who satisfy a 
time-in-grade requirement of at least 18 months.
      The Senate amendment contained a provision (sec. 502) 
that would extend the existing authority for promotion for 
these officers from October 1, 2005, through October 1, 2008.
      The House recedes.
Grade and exclusion from active-duty general and flag officer 
        distribution and strength limitations of officer serving as 
        Attending Physician to the Congress (sec. 507)
      The Senate amendment contained a provision (sec. 506) 
that would add section 722 to chapter 41 and amend section 
12210 of title 10, United States Code, to provide that an 
active-duty or reserve general or flag officer, while serving 
as the Attending Physician to the Congress, would hold the 
grade of major general or rear admiral and be excluded from the 
numerical and distribution requirements of sections 525 and 526 
of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Modification of qualifications for leadership of the Naval Postgraduate 
        School (sec. 508)
      The Senate amendment contained a provision (sec. 509) 
that would authorize a retired officer of the Navy or Marine 
Corps in the grade of captain or colonel or above, 
respectively, to be selected by the Secretary of the Navy to 
serve as President of the Naval Postgraduate School so long as 
they meet the same qualifications required of active-duty 
officers, including holding a doctorate or master's degree in a 
field of study relevant to the mission and function of the 
Naval Postgraduate School.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
a civilian, including a retired officer of the Navy or Marine 
Corps not below the grade of captain or colonel, respectively, 
to be selected by the Secretary as the best qualified from 
among candidates for the position in accordance with specified 
criteria, through a process to be determined by the Secretary, 
and taking into consideration other factors the Secretary 
considers essential. Before making a selection the Secretary 
would be required to consult with the Board of Advisors for the 
Naval Postgraduate School, consider any recommendation of the 
leadership and faculty of the Naval Postgraduate School, and 
consider the recommendations of the Chief of Naval Operations 
and the Commandant of the Marine Corps. The amendment would 
further require that an individual selected as President hold a 
doctorate degree if the individual permanently selected as 
Provost and Academic Dean does not.

                   PART II--OFFICER PROMOTION POLICY

Revisions to authorities relating to authorized delays of officer 
        promotions (sec. 511)
      The Senate amendment contained a provision (sec. 515) 
that would amend sections 624 and 14311 of title 10, United 
States Code, relating to promotion procedures. The provision 
would specify that a promotion list that requires Senate 
confirmation shall be treated as being established for purposes 
of chapter 38 of title 10 on the date the list is received by 
the Senate for consideration; and would require the Secretary 
of Defense, not later than March 1, 2008, to prescribe 
regulations controlling delays in appointment following Senate 
confirmation under sections 624 and 14311. The provision would 
also clarify that delays in appointment to higher grade are 
warranted by the need to review substantiated and potentially 
adverse information that may be material to the decision on 
whether or not to appoint based on a determination that an 
officer has not fulfilled the requirements for exemplary 
conduct for commanding officers and those in positions of 
authority.
      The House bill contained no similar provision.
      The House recedes with an amendment that would specify 
that a promotion list that requires Senate confirmation shall 
be treated as being established upon approval of a report of a 
selection board by the President.
Consideration of adverse information by selection boards in 
        recommendations on officers to be promoted (sec. 512)
      The Senate amendment contained a provision (sec. 516) 
that would amend sections 616(c) and 14108(b) of title 10, 
United States Code, to require that a promotion selection board 
may not recommend an officer for promotion unless a majority of 
the members of the board, after consideration by all the board 
members of any adverse information about the officer that is 
provided to the board under section 615 of title 10, United 
States Code, finds that the officer is among those best 
qualified for promotion to meet the needs of the armed force 
concerned consistent with the requirement of exemplary conduct 
set forth in sections 3583, 5947, and 8583 of title 10, United 
States Code.
    The House bill contained no similar provision.
      The House recedes with a technical amendment.
Expanded authority for removal from reports of selection boards of 
        officers recommended for promotion to grades below general and 
        flag grades (sec. 513)
      The Senate amendment contained a provision (sec. 517) 
that would amend sections 618(d) and 14111(b) of title 10, 
United States Code, to authorize the Secretary of Defense and 
the Deputy Secretary of Defense, in addition to the President, 
to remove the name of an officer from the report of a selection 
board with respect to officers being recommended for promotion 
to grades below brigadier general and rear admiral (lower 
half).
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Special selection board authorities (sec. 514)
      The Senate amendment contained a provision (sec. 519) 
that would amend sections 628 and 14502 of title 10, United 
States Code, to limit the availability of special selection 
boards only to officers under consideration for promotion who 
are in or above the primary promotion zones. The provision 
would also limit the requirement to convene special selection 
boards only to those cases in which material error may have 
occurred. The provision would further clarify that errors in 
the conduct of active and reserve selection boards must be 
determined by the service secretaries to be material to the 
outcome of the board's determination for relief to be afforded.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Removal from promotion list of officers not promoted within 18 months 
        of approval of list by the President (sec. 515)
      The Senate amendment contained a provision (sec. 520) 
that would amend sections 629 and 14310 of title 10, United 
States Code, to clarify the conditions under which officers 
whose nominations require the advice and consent of the Senate 
for promotion or appointment and who have not received the 
advice and consent of the Senate would be removed from 
promotion lists.
      The House bill contained no similar provision.
      The House recedes with an amendment that would establish 
a promotion eligibility period for officers beginning on the 
date of approval by the President of a promotion list for 
officers on that list and ending 18 months later. This period 
could be extended by the President for an additional 12 months. 
The amendment would require that an officer's name be removed 
from the promotion list as of the end of the period of 
promotion eligibility unless the Senate has given its advice 
and consent to the appointment of that officer. The provision 
would apply to any promotion list approved by the President 
after January 1, 2007.

            PART III--JOINT OFFICER MANAGEMENT REQUIREMENTS

Modification and enhancement of general authorities on management of 
        officers who are joint qualified (sec. 516)
      The Senate amendment contained a provision (sec. 526) 
that would amend section 661 of title 10, United States Code, 
to restructure the system for designation and management of 
officers who are joint qualified. The provision would implement 
the recommendation made by the Department of Defense in its 
strategic plan to link joint officer development to overall 
missions and goals of the Department of Defense, as required by 
section 531 of the Ronald W. Reagan National Defense 
Authorization Act of Fiscal Year 2005 (Public Law 108-375).
      The House bill contained no similar provision.
      The House recedes with an amendment that would permit the 
Secretary of Defense, with the advice of the Chairman of the 
Joint Chiefs of Staff, to designate as joint qualified those 
officers who successfully complete a full tour of duty in a 
joint assignment as well as those officers who demonstrate 
mastery of knowledge, skills, and abilities in joint matters as 
a result of their assignments and experience as determined 
under such regulations and policy as the Secretary may 
prescribe. The amendment would make this provision effective on 
October 1, 2007, and require the Secretary, not later than 
March 31, 2007, to submit a plan for its implementation. The 
amendment would support modifications in joint officer 
management that would rely on a capabilities-based system in 
which experience, education, and performance are evaluated in 
an officer's progression to higher levels of qualification.
Modification of promotion policy objectives for joint officers (sec. 
        517)
      The Senate amendment contained a provision (sec. 527) 
that would amend section 662(a) of title 10, United States 
Code, to repeal the requirement for a separate promotion policy 
objective for officers who have the joint specialty or who are 
designated as joint qualified. The provision would require the 
Secretary of Defense to ensure that officers who are serving in 
or have served in joint duty assignments, including those 
officers who previously have been designated as joint specialty 
officers and are determined to be joint qualified under the 
changes to section 661 of title 10, United States Code, 
included in this Act, are expected, as a group, to be promoted 
to the next higher grade at a rate not less than the rate for 
all officers of the same armed force in the same grade and 
competitive category.
      The House bill contained no similar provision.
      The House recedes.
Applicability of joint duty assignment requirements limited to 
        graduates of National Defense University schools (sec. 518)
      The Senate amendment contained a provision (sec. 528) 
that would amend section 663 of title 10, United States Code, 
to specify that joint professional military education (JPME) 
schools for purposes of this section are limited to schools 
within the National Defense University. The provision would 
limit the effect of the requirement that more than 50 percent 
of officers completing the second phase of JPME must be 
assigned to joint duty assignments as those officers' next duty 
assignments following graduation.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Modification of certain definitions relating to jointness (sec. 519)
      The Senate amendment contained a provision (sec. 529) 
that would amend section 668 of title 10, United States Code, 
to revise the definition of the term ``joint matters.'' The 
provision would also modify the definition of ``joint duty 
assignments'' to broaden the assignments that may be considered 
and recognize the value of certain assignments within the 
services and to add a definition to section 668 of the term 
``critical occupational specialty.''
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the definition of the term joint matters to mean matters 
related to the achievement of unified action by multiple 
military forces in operations conducted across domains such as 
land, sea, or air, in space, or in the information environment. 
The amendment would specify that the definition of joint duty 
does not include duty as a student or trainee for joint 
training and education. Under the definition of critical 
occupational specialty, the amendment would require, at a 
minimum, that the Secretary of Defense designate as critical 
occupational specialties any military occupational specialties 
within combat arms (or the equivalent) that the Secretary 
determines are experiencing severe shortages of trained 
officers.

                 Subtitle B--Reserve Component Matters

                  PART I--RESERVE COMPONENT MANAGEMENT

Recognition of former Representative G.V. ``Sonny'' Montgomery for his 
        30 years of service in the House of Representatives (sec. 521)
      The conferees agree to include a provision that would 
recognize former Representative G.V. ``Sonny'' Montgomery (D-
MS) for his 30 years of service in the House of 
Representatives, particularly his service as Chairman of the 
Committee on Veterans' Affairs and his contributions to the 
National Guard and Reserves.
Revisions to reserve call-up authority (sec. 522)
      The House bill contained a provision (sec. 511) that 
would extend from 270 days to 365 days the period for which 
members of the Selected Reserve and Individual Ready Reserve 
may be involuntarily called to active duty to support 
operational missions other than during war or national 
emergency and would authorize recall of such reserve component 
members to provide assistance during a serious natural or 
manmade disaster, accident, or catastrophe.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would extend 
from 270 days to 365 days the maximum period for which such 
members of the reserve components may be involuntarily called 
to active duty.
Military retirement credit for certain service by National Guard 
        members performed while in a State duty status immediately 
        after the terrorist attacks of September 11, 2001 (sec. 523)
      The House bill contained a provision (sec. 512) that 
would authorize military retirement credit for certain members 
of the Army National Guard or the Air National Guard who served 
in a full-time state active duty status in specified counties 
in New Jersey in support of the federal declaration of 
emergency following the terrorist attacks on the United States 
of September 11, 2001.
      The Senate amendment contained no similar provision.
      The Senate recedes.

        PART II--AUTHORITIES RELATING TO GUARD AND RESERVE DUTY

Title 10 definition of Active Guard and Reserve duty (sec. 524)
      The House bill contained a provision (sec. 541) that 
would establish a new definition of ``Active Guard and 
Reserve'' in section 101 of title 10, United States Code, and 
would also clarify the definition of ``Active Guard and Reserve 
duty'' in the same section.
      The Senate amendment contained a similar provision (sec. 
531).
      The Senate recedes.
Authority for Active Guard and Reserve duties to include support of 
        operational missions assigned to the reserve components and 
        instruction and training of active-duty personnel (sec. 525)
      The House bill contained a provision (sec. 542) that 
would authorize reserve component personnel performing Active 
Guard and Reserve duty, as well as military technicians (dual 
status), to perform additional duties to support operations or 
missions assigned to, or performed by, the reserve components 
and to instruct or train active-duty members of the Armed 
Forces, foreign military forces, and Department of Defense 
civilian employees and contractors. The provision would 
authorize the performance of the specified additional duties to 
the extent that such duties do not interfere with the primary 
duties of personnel on Active Guard and Reserve duty, and 
military technicians (dual status), of organizing, 
administering, recruiting, instructing, or training the reserve 
components. The provision would also limit the instructional or 
training duty only to that conducted in the United States, its 
possessions, and the Commonwealth of Puerto Rico. The provision 
would further authorize personnel performing National Guard 
duty under section 502(f) of title 32, United States Code, to 
support operations or missions undertaken by the member's unit 
at the request of the President or the Secretary of Defense, 
and to support training operations and training missions 
assigned in whole or in part to the National Guard by the 
Secretary concerned.
      The Senate amendment contained a similar provision (sec. 
531).
      The Senate recedes with a clarifying amendment.
Governor's authority to order members to Active Guard and Reserve duty 
        (sec. 526)
      The House bill contained a provision (sec. 543) that 
would authorize the governor of a State, the Commonwealth of 
Puerto Rico, Guam, the Virgin Islands, or the commanding 
general of the District of Columbia National Guard to order 
members of the National Guard to perform Active Guard and 
Reserve duty under title 32, United States Code, to support 
operations or missions at the request of the President or the 
Secretary of Defense, or to support training operations and 
training missions assigned in whole or in part by the Secretary 
concerned to the National Guard.
      The Senate amendment contained a similar provision (sec. 
531).
      The Senate recedes with a clarifying amendment.
Expansion of operations of civil support teams (sec. 527)
      The House bill contained a provision (sec. 545) that 
would expand the types of emergencies for which members of the 
reserve components who are assigned to weapons of mass 
destruction civil support teams (WMD-CSTs) could be deployed to 
include the intentional or unintentional release of nuclear, 
biological, radiological, toxic or poisonous chemical 
materials; or natural or manmade disasters that could result in 
the catastrophic loss of life or property.
      The Senate amendment contained a similar provision (sec. 
532).
      The Senate recedes.
      The conferees note that WMD-CSTs are a limited resource, 
and as such, their employment, other than for training and 
preparation, under the expanded authorities recommended by this 
section should consider the following: (1) whether the 
resources of local governments and other State resources may be 
or are overwhelmed by the scope and scale of the actual 
disaster; or (2) whether other State, local, and first-
responder technical equipment and capabilities will be or are 
inadequate to address the potential threat.
Modification of authorities relating to the Commission on the National 
        Guard and Reserves (sec. 528)
      The House bill contained a provision (sec. 594(a)) that 
would amend section 513 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375) to extend the deadline by 6 months for submission of a 
final report by the Commission on the National Guard and 
Reserves.
      The Senate amendment contained a similar provision (sec. 
533) that would extend the commission's deadline for submission 
of a final report from 12 to 18 months after its first meeting. 
The provision would also authorize the chairman of the 
commission to exercise the same waiver authority regarding 
eligibility by annuitants for pay as would be available to the 
Director of the Office of Personnel Management under sections 
8344(i)(1) and 8468(f)(1) of title 5, United States Code.
      The House recedes with an amendment that would require 
submission of the final report of the commission not later than 
January 31, 2008.
Additional matters to be reviewed by Commission on the National Guard 
        and Reserves (sec. 529)
      The House bill contained a provision (sec. 594(b)) that 
would direct the Commission on the National Guard and Reserves 
to study and report to Congress by March 1, 2007, on the 
advisability and feasibility of implementing the provisions 
contained in the National Defense Enhancement and National 
Guard Empowerment Act of 2006 (H.R. 5200); whether the Chief of 
the National Guard Bureau should serve in the grade of general 
in the performance of the current duties of that office; and 
whether the Department of Defense processes for defining the 
equipment and funding necessary for the National Guard to 
perform its responsibilities are adequate.
      The Senate amendment contained provisions (secs. 931-933) 
that would make the National Guard Bureau a joint activity of 
the Department; make the Chief of the National Guard Bureau the 
principal advisor to the Secretary of Defense and the Chairman 
of the Joint Chiefs of Staff on National Guard matters; elevate 
the grade of the Chief of the National Guard Bureau to general; 
require the Chief of the National Guard Bureau to identify gaps 
between Federal and State capabilities to prepare for and 
respond to emergencies and make recommendations to the 
Secretary of Defense on the provision of military assistance to 
civil authorities; and require that the position of Deputy 
Commander, U.S. Northern Command, be filled by a National Guard 
officer eligible for promotion to the grade of lieutenant 
general.
      The Senate recedes with an amendment that would add 
additional matters to be referred to the commission, including 
a review on the advisability and feasibility of authorizing 
National Guard officers to serve in both Federal status under 
title 10, United States Code, and State status under title 32, 
United States Code, as a means of achieving unity of command of 
units that are composed of both active-duty members and 
National Guard personnel. The commission would be required to 
submit a report on the results of the review by March 1, 2007, 
to the Committees on Armed Services of the Senate and the House 
of Representatives.
      The conferees note the importance of the National Guard 
to the national defense and the need for effective coordination 
of National Guard matters between the Chief of the National 
Guard Bureau and the Secretary of Defense, Chairman of the 
Joint Chiefs of Staff, the Secretary of the Army, and the 
Secretary of the Air Force.
      The conferees, therefore, direct the commission to 
evaluate the proposals referred to it by this section taking 
into consideration the following:
      The impact that making the National Guard Bureau a joint 
activity of the Department, and authorizing the Secretary of 
Defense to develop the charter of the National Guard Bureau, 
would have on integration of the Army National Guard and Air 
National Guard into the Army and Air Force, respectively.
      Whether authorizing the Chief of the National Guard 
Bureau to be the principal advisor to the Secretary of Defense 
and the Chairman of the Joint Chiefs of Staff on matters 
relating to the National Guard would have the effect of 
establishing the National Guard as a separate service; and if 
so, the implications of that effect.
      Whether authorizing the Chief of the National Guard 
Bureau to be a member of the Joint Chiefs of Staff is 
consistent with the statutory responsibilities of the service 
chiefs and the role of the service chiefs to provide military 
advice to the President, the National Security Council, and the 
Secretary of Defense.
      How elevating the grade of the Chief of the National 
Guard Bureau to general would impact relationships with and the 
authorized grades of the other Chiefs of the reserve 
components, the Director of the Army National Guard, and the 
Director of the Air National Guard.
      Whether requiring the Chief of the National Guard Bureau 
to identify gaps between Federal and State capabilities to 
prepare for and respond to emergencies and to make 
recommendations to the Secretary of Defense on National Guard 
programs for military assistance to civil authorities is an 
appropriate role for the Chief of the National Guard Bureau, 
whether the Chief of the National Guard Bureau is qualified to 
make such an assessment, and whether this authority impinges on 
the authority of Federal and State civilian officials.
      Whether the scope and complexities of the duties and 
responsibilities of the position of Deputy Commander, U.S. 
Northern Command, require that they be carried out by two 
officers, each in the grade of O-9, one of whom would be a 
National Guard officer eligible for promotion to that grade.

                   Subtitle C--Education and Training

                       PART I--SERVICE ACADEMIES

Expansion of service academy exchange programs with foreign military 
        academies (sec. 531)
      The House bill contained a provision (sec. 524) that 
would expand from 24 to 100 the number of cadets and midshipmen 
at the U.S. Military Academy, Air Force Academy, and Naval 
Academy, respectively, who may participate in exchange programs 
with foreign military academies. The provision would also 
increase from $120,000 to $1.0 million the amount of 
appropriated funds that each service academy could expend 
during any fiscal year in support of the exchange program. The 
provision would further authorize the service academies to 
expend additional funds as may be available to the academy from 
a source other than appropriated funds to support cultural 
immersion, regional awareness, or foreign language training 
activities in connection with the exchange program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees do not intend that the additional funding 
from other than appropriated sources be used to fund exchange 
students in excess of the number set by this provision.
Revision and clarification of requirements with respect to surveys and 
        reports concerning sexual harassment and sexual violence at the 
        service academies (sec. 532)
      The Senate amendment contained a provision (sec. 567) 
that would change the frequency of the service academy sexual 
assault survey and report to Congress from an annual to a 
biennial requirement, extend the period for the surveys and 
reports from 2008 to 2010, clarify that the subject of the 
required policy and report is sexual harassment and sexual 
violence, and clarify that the policy and survey are directed 
at cadets and midshipmen.
      The House bill contained no similar provision.
      The House recedes with an amendment that would codify in 
title 10, United States Code, the requirement for each 
Secretary of the military department to prescribe a policy on 
sexual harassment and sexual violence applicable to cadets or 
midshipmen and other personnel of each service academy. The 
amendment would require an annual assessment to determine the 
effectiveness of the policies, training, and procedures of the 
academy, and an annual report to the Committees on Armed 
Services of the Senate and the House of Representatives. The 
amendment would also require that the annual assessment be 
conducted by a survey of academy personnel to include cadets 
and midshipmen, and other academy personnel from the faculty 
and administration selected for such participation, if any, 
with respect to academy program years that begin in an odd-
numbered calendar year. In any year in which a survey is not 
required, the Secretary concerned would be required to provide 
focus groups for the purposes of ascertaining information 
relating to sexual assault and sexual harassment issues at that 
academy.
Department of Defense policy on service academy and ROTC graduates 
        seeking to participate in professional sports before completion 
        of their active-duty service obligations (sec. 533)
      The Senate amendment contained a provision (sec. 568) 
that would require the Secretary of Defense to prescribe a 
policy, not later than July 1, 2007, on whether to authorize 
service academy and Reserve Officers' Training Corps graduates 
to participate in professional sports before completion of 
their active-duty service obligation, and if so, on the active-
duty service obligations of such personnel. The provision would 
require the Secretary of each military department to prescribe 
regulations, or modify current regulations, to implement the 
policy of the Secretary of Defense by no later than December 1, 
2007.
      The House bill contained no similar provision.
      The House recedes.

         PART II--SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAMS

Authority to permit members who participate in the guaranteed reserve 
        forces duty scholarship program to participate in the health 
        professions scholarship program and serve on active duty (sec. 
        535)
      The House bill contained a provision (sec. 521) that 
would authorize the Secretary of the Army to modify agreements 
entered into by cadets in the Reserve Officers' Training Corps 
who participate in the Guaranteed Reserve Forces Duty 
Scholarship Program so that a cadet or former cadet could 
receive assistance under the Health Professions Scholarship 
Program and serve on active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Detail of commissioned officers as students at medical schools (sec. 
        536)
      The Senate amendment contained a provision (sec. 561) 
that would authorize the Secretary of a military department to 
detail up to 25 commissioned officers each year as students at 
accredited medical schools or schools of osteopathy. To be 
eligible, an officer must agree to service on active duty for 2 
years for each year of medical training.
      The House bill contained no similar provision.
      The House recedes with an amendment that would allow an 
officer to serve their full service active duty obligation, or 
to complete a portion of their obligation in the Selected 
Reserve. The amendment would require that officers assigned to 
the Selected Reserve serve 3 years in the Selected Reserve for 
each year of medical training received prior to separation from 
active duty.
Increase in maximum amount of repayment under education loan repayment 
        for officers in specified health professions (sec. 537)
      The Senate amendment contained a provision (sec. 563) 
that would authorize an increase from $22,000 to $60,000 for 
each year of obligated service the amount the Secretary of a 
military department may repay for educational loans for a fully 
qualified health professional to meet identified skill 
shortages.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees are concerned that shortfalls in 
recruitment and retention of medical, dental, and nurse corps 
personnel could undermine future medical readiness. The 
conferees believe it is critical that the Tenth Quadrennial 
Review of Military Compensation include a careful examination 
of compensation issues pertaining to the uniformed medical 
personnel of the Department of Defense.
Health Professions Scholarship and Financial Assistance Program for 
        Active Service (sec. 538)
      The Senate amendment contained a provision (sec. 564) 
that would authorize an increase in the maximum amounts for 
stipends and grants under the Health Professions Scholarship 
Program and the Financial Assistance Program for Active 
Service. The amendment also contained a provision (sec. 565) 
that would require the Secretary of Defense to report to the 
congressional defense committees on the success or failure of 
the military departments in achieving recruiting goals under 
these programs during fiscal years 2000 through 2006.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would authorize 
the Secretary to determine a monthly amount to be paid as a 
stipend in the Health Professions Scholarship Program.
      The conference agreement reflects the merger of the two 
Senate provisions, as amended.

                     PART III--JUNIOR ROTC PROGRAM

Junior Reserve Officers' Training Corps instructor qualifications (sec. 
        539)
      The Senate amendment contained a provision (sec. 570) 
that would establish instructor qualifications for a retired 
officer or noncommissioned officer to be employed as an 
instructor in the Junior Reserve Officers' Training Corps. The 
provision would require that senior military instructors be 
retired officers who have a professional military 
qualification; a baccalaureate degree; completion of secondary 
education teaching certification requirements; and award of an 
advanced certification in core content areas. Non-senior 
military instructors would be retired noncommissioned officers 
who serve as instructional leaders and teach independently of, 
but share program responsibilities with, senior military 
instructors. The provision would also require that non-senior 
military instructors have a professional military 
qualification; an associates degree within 5 years of 
employment; completion of secondary education teaching 
certification requirements; and award of an advanced 
certification in core content areas.
      The House bill contained no similar provision.
      The House recedes.
Expansion of members eligible to be employed to provide Junior Reserve 
        Officers' Training Corps instruction (sec. 540)
      The House bill contained a provision (sec. 522) that 
would authorize employment of reserve and National Guard 
officers and noncommissioned officers who would be eligible for 
retired pay at age 60 as Junior Reserve Officers' Training 
Corps instructors and allow the Secretaries of the military 
departments to determine the amount to reimburse the 
educational institution for the salary of such instructors.
      The Senate amendment contained a similar provision (sec. 
562).
      The House recedes with a clarifying amendment.
      The conferees agree that the Department of Defense would 
be authorized to pay an institution hiring a reserve or 
National Guard member who would be eligible for retired pay at 
age 60 an amount equal to one-half of the amount paid to the 
member by the institution for any period, up to a maximum of 
one-half the difference between the retired or retainer pay for 
an active-duty officer or noncommissioned officer of the same 
grade and years of service for that period and the active-duty 
pay and allowances which the member would have received for 
that period if on active duty.
Expansion of Junior Reserve Officers' Training Corps program (sec. 541)
      The Senate amendment contained a provision (sec. 315) 
that would direct the Secretaries of the military departments 
to increase the number of Junior Reserve Officers' Training 
Corps units.
      The House bill contained no similar provision.
      The House recedes.
Review of legal status of Junior ROTC program (sec. 542)
      The House bill contained a provision (sec. 525) that 
would require the Secretary of Defense to review the 1976 legal 
opinion that determined that Junior Reserve Officers' Training 
Corps (JROTC) instructors may be transported to a non-host 
school only to teach students previously enrolled in the JROTC 
unit at the host school, and only when it is impractical to 
require them to take courses at the host school. The purpose of 
the review would be to determine whether changes in the law 
since 1976 and local school redistricting would now allow for 
instructors from a host school to travel to and instruct JROTC 
students at another nearby school. The provision would also 
allow a host school that is currently providing for the 
assignment of JROTC instructors to another school with 70 or 
more students the authority to continue such support until 180 
days following the submission of the report on the results of 
the review by the Secretary of Defense.
      The Senate amendment contained an identical provision 
(sec. 569).
      The conference agreement includes this provision.

             PART IV--OTHER EDUCATION AND TRAINING PROGRAMS

Expanded eligibility for enlisted members for instruction at Naval 
        Postgraduate School (sec. 543)
      The Senate amendment contained a provision (sec. 566) 
that would authorize all enlisted members of the Armed Forces 
to participate in certificate programs and courses required for 
the performance of their duties offered by the Naval 
Postgraduate School, and authorize eligible enlisted members of 
the Armed Forces to receive graduate-level instruction at the 
Naval Postgraduate School in programs leading to the award of a 
master's degree in technical, analytical, and engineering 
curricula.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of the Navy to submit a report to the Committees 
on Armed Services of the Senate and the House of 
Representatives, not later than March 30, 2007, on the plans 
and rationale of the Navy to provide enlisted members of the 
Navy with opportunities to pursue graduate degree programs 
either through Navy schools or through civilian postgraduate 
institutions paid for by the Navy in return for an additional 
service obligation. The amendment would also require the 
Secretary of the Navy and the Secretary of the Air Force to 
submit a joint report to the Committees on Armed Services of 
the Senate and the House of Representatives, not later than 
March 30, 2007, on the manner by which each Secretary intends 
to use the Naval Postgraduate School and the Air Force 
Institute of Technology during fiscal years 2008 through 2013 
to meet the overall requirements of the Navy, Marine Corps, and 
Air Force for enlisted members with graduate degrees.
      The conferees expect that the Under Secretary of Defense 
for Personnel and Readiness will exercise a significant role in 
overseeing the preparation of the joint report of the Secretary 
of the Navy and the Secretary of the Air Force on use of the 
Naval Postgraduate School and the Air Force Institute of 
Technology to meet the overall requirements of the services for 
enlisted members with graduate degrees.

                Subtitle D--General Service Authorities

Test of utility of test preparation guides and education programs in 
        enhancing recruit candidate performance on the Armed Services 
        Vocational Aptitude Battery (ASVAB) and Armed Forces 
        Qualification Test (AFQT) (sec. 546)
      The House bill contained a provision (sec. 531) that 
would require the Secretary of Defense to administer a test 
program conducted by the Secretaries of the military 
departments to determine the utility of commercially-available 
test preparation guides and education programs to assist 
recruit candidates in achieving improved scores on military 
recruit qualification tests. The Secretary would be required to 
identify 2,000 recruit candidates to receive test preparation 
assistance and 2,000 recruit candidates to participate in a 
control group to allow comparisons of test performance and 
subsequent duty performance in training and unit settings 
following active-duty entry. The test would identify 
participants over a 1-year period from the start of the test 
and assess duty performance for each participant for 18 months 
following entry on active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Clarification of nondisclosure requirements applicable to certain 
        selection board proceedings (sec. 547)
      The House bill contained a provision (sec. 532) that 
would clarify the nondisclosure requirements applicable to 
deliberations of military selection boards. The provision would 
specify that discussions and deliberations of selection boards, 
including any written or documentary records thereof, are 
immune from legal process; may not be admitted as evidence; and 
may not be used for any purpose in any action or suit, or 
judicial or administrative proceedings without the consent of 
the Secretary of the military department.
      The Senate amendment contained a similar provision (sec. 
518).
      The Senate recedes with a technical amendment.
Report on extent of provision of timely notice of long-term deployments 
        (sec. 548)
      The House bill contained a provision (sec. 533) that 
would require the Secretary of Defense to report, not later 
than March 1, 2007, on the number of members of the Armed 
Forces who, since September 11, 2001, have not received at 
least 30-days notice prior to a deployment that was scheduled 
to last 180 days or more.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the reporting period to begin on January 1, 2005, and end on 
the date of the enactment of this Act.

                  Subtitle E--Military Justice Matters

Applicability of Uniform Code of Military Justice to members of the 
        Armed Forces ordered to duty overseas in inactive duty for 
        training status (sec. 551)
      The Senate amendment contained a provision (sec. 551) 
that would require the service secretaries, no later than March 
1, 2007, to prescribe regulations, or amend current 
regulations, consistent with article 2 of the Uniform Code of 
Military Justice (UCMJ) to provide that military personnel who 
are ordered to perform inactive duty for training at overseas 
locations shall be subject to jurisdiction under the UCMJ 
throughout the period that the orders are in effect.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Clarification of application of Uniform Code of Military Justice during 
        a time of war (sec. 552)
      The Senate amendment contained a provision (sec. 552) 
that would clarify that Uniform Code of Military Justice 
jurisdiction over persons serving with or accompanying an armed 
force in the field applies both in time of declared war and in 
a contingency operation.
      The House bill contained no similar provision.
      The House recedes.

                   Subtitle F--Decorations and Awards

Authority for presentation of Medal of Honor Flag to living Medal of 
        Honor recipients and to living primary next-of-kin of deceased 
        Medal of Honor recipients (sec. 555)
      The House bill contained a provision (sec. 551) that 
would amend sections 3755, 6257, and 8755 of title 10, United 
States Code, and section 505 of title 14, United States Code, 
to authorize the President to present a Medal of Honor Flag to 
all living recipients of the Medal of Honor. The provision 
would authorize presentation of a Medal of Honor Flag to the 
primary next of kin of a deceased Medal of Honor recipient.
      The Senate amendment contained a similar provision (sec. 
584) that would require the Secretary of Defense to prescribe 
regulations regarding the designation of the primary living 
next of kin.
      The House recedes with a clarifying amendment.
Review of eligibility of prisoners of war for award of the Purple Heart 
        (sec. 556)
      The House bill contained a provision (sec. 553) that 
would require the Secretary of Defense to award the Purple 
Heart posthumously to a member of the Armed Forces who died 
while in captivity as a prisoner of war or died due to injury 
or illness incurred while in captivity as a prisoner of war.
      The Senate amendment contained a provision (sec. 589) 
that would require the President, not later than March 1, 2007, 
to report on the advisability of modifying the criteria for the 
award of the Purple Heart in the case of prisoners of war who 
die in captivity under unknown circumstances or as a result of 
conditions and treatment which currently do not qualify the 
decedent for the award of the Purple Heart. The provision would 
also require the President in making his determination to take 
into consideration various specified factors as well as the 
views of the Secretary and the Joint Chiefs of Staff.
      The House recedes with an amendment that would add 
additional circumstances to be considered by the President in 
making his determination regarding the posthumous award of the 
Purple Heart to former prisoners of war.
      In view of the history and significance of the Purple 
Heart, and the fact that it is awarded in the name of the 
President as Commander in Chief to members of the Armed Forces, 
the conferees consider it essential that the President conduct 
a comprehensive review of the merits of the proposals for 
expansion of eligibility for the award and provide a 
recommendation to the Congress before legislative changes are 
made to the criteria for the Purple Heart.
Report on Department of Defense process for awarding decorations (sec. 
        557)
      The House bill contained a provision (sec. 555) that 
would require the Secretary of Defense to review the policy, 
procedures, and processes of the military departments for 
awarding decorations to members of the Armed Forces and to 
submit a report on the findings and recommendations no later 
than 90 days after the date of the enactment of this Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
establish August 1, 2007, as the due date for the required 
report.

               Subtitle G--Matters Relating to Casualties

Authority for retention after separation from service of assistive 
        technology and devices provided while on active duty (sec. 561)
      The House bill contained a provision (sec. 562) that 
would authorize the Secretary of Defense to provide assistive 
technology, devices, and services to a member of the armed 
forces who has sustained a debilitating illness or injury while 
serving in support of a contingency operation, and also 
authorize the member to continue to utilize such services after 
separation from active duty.
      The Senate amendment contained a similar provision (sec. 
647).
      The House recedes with a clarifying amendment.
Transportation of remains of casualties dying in a theater of combat 
        operations (sec. 562)
      The House bill contained a provision (sec. 563) that 
would prescribe conditions for the transportation by air of the 
remains of members of the Armed Forces who die in a combat 
theater of operations and whose remains are returned to the 
United States through the mortuary facility at Dover Air Force 
Base, Delaware. The provision would require the Secretary 
concerned to transport remains under these circumstances by 
military aircraft, or military-contracted aircraft, unless 
otherwise directed by the decedent's next of kin. The provision 
would also require that remains be escorted during 
transportation at all times by at least one service member in 
an appropriate grade. The provision would further require that 
an honor guard escort comprised of a sufficient number of 
military members to transfer the casket containing the remains 
from the aircraft or other means of transportation to a hearse 
for local transportation be provided.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to prescribe regulations for the 
administration of this provision. The amendment would also 
require that transportation of one or more sets of military 
remains by military aircraft or military-contracted aircraft be 
the aircraft's primary mission and clarify the composition and 
role of the honor guard escort. The effective date for this 
provision would be not later than January 1, 2007.
Annual budget display of funds for POW/MIA activities of Department of 
        Defense (sec. 563)
      The House bill contained a provision (sec. 564) that 
would require the Secretary of Defense to submit to Congress a 
consolidated budget justification display that includes prior 
year and future year funding for specified organizations 
supporting the POW/MIA activities of the Department of Defense 
as part of the Department's justification material that 
supports the President's annual budget request.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
      The conferees are concerned that shortfalls in the 
funding of POW/MIA activities within the Department have 
resulted in the loss of opportunities to conduct planned field 
missions to locate and identify missing U.S. service members. 
The conferees expect that the Department will ensure that POW/
MIA recovery efforts will receive the highest level of support 
within the Department and that the budget for POW/MIA 
activities will be adequately funded in order to preclude the 
loss of opportunities to conduct planned recovery and research 
missions.
Military Severely Injured Center (sec. 564)
      The Senate amendment contained a provision (sec. 586) 
that would require the Secretary of Defense to establish a 
center to augment and support programs operated by the military 
departments for services to severely wounded or injured service 
members and their families. The provision would also require 
establishment of a central database for the purpose of tracking 
such members.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the role of the center in support of programs operated by the 
military departments which are responsible for individual case 
management, and ensure transparency of the central database.
Comprehensive review on procedures of the Department of Defense on 
        mortuary affairs (sec. 565)
      The Senate amendment contained a provision (sec. 590(a)-
(b)) that would require the Secretary of Defense to include 
additional matters in the report of the Department of Defense's 
ongoing comprehensive review of procedures relating to mortuary 
affairs. The additional elements reported on would address 
capabilities and standards employed in combat theaters that 
could preserve the remains of deceased personnel and expedite 
the return of remains to the United States in a nondecomposed 
state.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Additional elements of policy on casualty assistance to survivors of 
        military decedents (sec. 566)
      The Senate amendment contained a provision (sec. 590(c)) 
that would amend section 562(b) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) to 
require the Secretary of Defense to include an additional 
element in the Department of Defense's policy relating to 
casualty assistance to survivors of military decedents. The 
provision would require that the new policy address the process 
by which the Department, upon request, briefs survivors of 
military decedents on the cause of, and any investigation into, 
the death of such military decedents and on the disposition and 
transportation of their remains.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Requirement for deploying military medical personnel to be trained in 
        preservation of remains under combat or combat-related 
        conditions (sec. 567)
      The House bill contained a provision (sec. 722) that 
would require the Secretary of Defense to develop a program 
requiring each military department to include pre-deployment 
training of health care professionals in the preservation of 
remains.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
establish an effective date for the required training of 90 
days after the date of the enactment of this Act.

     Subtitle H--Impact Aid and Defense Dependents Education System

Enrollment in defense dependents' education system of dependents of 
        foreign military members assigned to Supreme Headquarters 
        Allied Powers, Europe (sec. 571)
      The House bill contained a provision (sec. 572) that 
would authorize the Secretary of Defense to enroll on a space-
required, tuition-free basis a limited number of dependents of 
foreign military members who are assigned to the Supreme 
Headquarters Allied Powers, Europe, in the Defense Dependents' 
Education System in Mons, Belgium.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the Secretary to offer such enrollment only through the 2010-
2011 school year. The amendment would require a report to 
Congress evaluating alternatives for a long-term plan for the 
education of dependents of U.S. military personnel assigned to 
the Supreme Headquarters Allied Powers, Europe.
Continuation of authority to assist local educational agencies that 
        benefit dependents of members of the Armed Forces and 
        Department of Defense civilian employees (sec. 572)
      The House bill contained a provision (sec. 571) that 
would authorize $50.0 million for assistance to local 
educational agencies that have military dependent students 
comprising at least 20 percent of the students in average daily 
attendance. The provision would also authorize $15.0 million 
for assistance to local educational agencies that experience a 
significant increase or decrease in attendance of military 
dependent students due to military force structure changes, the 
relocation of military forces, and base closures and 
realignments.
      The Senate amendment contained a provision (sec. 571) 
that would authorize $30.0 million for assistance to local 
educational agencies with significant concentrations of 
military school-aged children, and $10.0 million for special 
assistance to local educational agencies that experience an 
increase or decrease in students due to military force 
structure changes, relocation of military units, or base 
closures and realignments. The Senate amendment would also 
provide temporary authority for the Secretary of Defense, 
working with the Secretary of Education, to utilize funds 
appropriated for Operation and Maintenance, Defense-wide for 
the purpose of sharing expertise and experience of the 
Department of Defense Education Activity with local education 
agencies to assist those agencies as military students make the 
transition to civilian school systems as a result of base 
closure and realignment, global rebasing, and force 
restructuring.
      The Senate recedes with an amendment that would authorize 
$35.0 million and $10.0 million, respectively, for assistance 
to local educational agencies with significant military school-
aged children.
      Elsewhere in this report, the conferees agree to 
authorize the sharing of expertise and experience of the 
Department of Defense Education Activity with local educational 
agencies that are experiencing a change in the number of 
military students due to base closure and realignment, global 
rebasing, and force restructuring, until September 30, 2011.
Impact aid for children with severe disabilities (sec. 573)
      The Senate amendment contained a provision (sec. 572) 
that would authorize $5.0 million in Operation and Maintenance, 
Defense-wide, for impact aid payments for children with 
disabilities under section 8003(d) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(d)), using the 
formula set forth in section 363 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public 
Law 106-398).
      The House bill contained no similar provision.
      The House recedes.
Plan and authority to assist local educational agencies experiencing 
        growth in enrollment due to force structure changes, relocation 
        of military units, or base closures and realignments (sec. 574)
      The Senate amendment contained a provision (sec. 573) 
that would require the Secretary of Defense to prepare a plan 
to provide assistance to local educational agencies that will 
experience a growth in enrollment of military and Department of 
Defense civilian school-aged children as a result of force 
structure changes, the relocation of military units, and the 
closure or realignment of a military installation. The 
provision would require submission of a report on the plan to 
Congress by January 1, 2007, and annual updates to the plan.
      The House bill contained no similar amendment.
      The House recedes with an amendment that would require 
annual updates to the plan after March 1, 2008 be submitted to 
Congress along with the President's budget request. The 
amendment would also authorize the Secretary of Defense to 
share expertise and experience of the Department of Defense 
Education Activity with affected local educational agencies for 
the purpose of assisting those agencies with the transition of 
military dependent school-aged children through September 30, 
2011.
Pilot program on parent education to promote early childhood education 
        for dependent children affected by military deployment or 
        relocation of military units (sec. 575)
      The Senate amendment contained a provision (sec. 574) 
that would require the Secretary of Defense to carry out a 
pilot program to enhance educational support for parents of 
pre-school aged children, who are affected by deployments or 
the relocation of military units.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the requirement to conduct the pilot program would be 
subject to the appropriation of funds.

                Subtitle I--Armed Forces Retirement Home

Report on leadership and management of the Armed Forces Retirement Home 
        (sec. 578)
      The Senate amendment contained a provision (sec. 668) 
that would require the redesignation of the Chief Operating 
Officer of the Armed Forces Retirement Home as Chief Executive 
Officer. The provision would require the Director of each 
facility of the home to be a member of the Armed Forces, and 
the Deputy Director to be a civilian with experience as a 
continuing care retirement community professional. The 
amendment would also clarify that the senior representative of 
one of the chief personnel officers of the Armed Forces serving 
as a member of the Local Board of Trustees for each facility be 
a military officer serving on active duty in the grade of 
brigadier general, or in the case of the Navy, rear admiral 
(lower half).
      The House bill contained no similar provision.
      The House recedes with an amendment that would require a 
report by the Secretary of Defense evaluating the effect of a 
change in the title of the Chief Operating Officer and 
qualifications of the Director and Deputy Director of each 
facility, as well as an assessment of whether or not there is a 
need for a greater role by members of the Armed Forces on 
active duty in the overall direction, operation, and management 
of the home.
      The conferees note that the requirement for service on 
the Local Board of Trustees by a military officer in the grade 
of brigadier general, or in the case of the Navy, rear admiral 
(lower half), is addressed elsewhere in this report.
      The conferees are aware that the Comptroller General has 
not completed the assessment of the regulatory oversight and 
monitoring of health and nursing home services required by 
section 909 of the National Defense Authorization Act for 2006 
(Public Law 109-163). The conferees intend that the study 
required by that section will help inform future legislative 
and policy changes regarding oversight and monitoring of health 
and nursing home services at the home.
Report on Local Boards of Trustees of the Armed Forces Retirement Home 
        (sec. 579)
      The Senate amendment contained a provision (sec. 1064) 
that would require a report on the composition and activities 
of the Local Boards of Trustees of the Armed Forces Retirement 
Home.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require an 
additional report element on the feasibility and effect of 
including as a member of each local board a member of the Armed 
Forces who is serving on active duty in the grade of brigadier 
general, or in the case of the Navy, rear admiral (lower half).
      The conferees are concerned that failure to use the Local 
Boards of Trustees, as required by law in section 416 of title 
24, United States Code, is a significant management issue at 
the Armed Forces Retirement Home. The conferees are also 
concerned that additional oversight and training is needed on 
the handling of personnel matters involving assigned military 
personnel. The conferees direct that these matters be included 
in the report required by this section.

                          Subtitle J--Reports

Report on personnel requirements for airborne assets identified as Low-
        Density, High-Demand Airborne Assets (sec. 581)
      The House bill contained a provision (sec. 591) that 
would require the Secretary of Defense to submit a report, not 
later than 90 days after the date of the enactment of this Act, 
on personnel requirements and shortfalls for airborne assets 
identified as low-density, high-demand airborne assets based on 
combatant commander requirements to conduct and sustain 
operations for the global war on terrorism.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the report to be submitted to the Committees on Armed Services 
of the Senate and the House of Representatives not later than 
120 days after the date of the enactment of this Act, and to 
include estimated manpower costs of personnel needed to address 
shortfalls.
Report on feasibility of establishment of Military Entrance Processing 
        Command station on Guam (sec. 582)
      The House bill contained a provision (sec. 584) that 
would require the Secretary of Defense to submit a report by 
June 1, 2007, on the feasibility and cost effectiveness of 
establishing a Military Entrance Processing Command station on 
Guam for new recruits who are drawn from the western Pacific 
region.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Inclusion in annual Department of Defense report on sexual assaults of 
        information on results of disciplinary actions (sec. 583)
      The House bill contained a provision (sec. 595) that 
would amend section 577 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375) to require additional detail in the Department of Defense 
annual report on sexual assaults on the results of disciplinary 
action taken in substantiated cases.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Report on provision of electronic copy of military records on discharge 
        or release of members from the Armed Forces (sec. 584)
      The Senate amendment contained a provision (sec. 588) 
that would require the Secretary of Defense, not later than 120 
days after the date of the enactment of this Act, to submit a 
report on the feasibility and advisability of providing an 
electronic copy of military records (including all military 
service, medical, and other military records) to members of the 
Armed Forces on their discharge or release from the Armed 
Forces.
      The House bill contained no similar provision.
      The House recedes.
Report on omission of social security account numbers from military 
        identification cards (sec. 585)
      The Senate amendment contained a provision (sec. 591) 
that would require the Secretary of Defense to submit a report, 
not later than 180 days after the date of the enactment of this 
Act, assessing the feasibility of using military identification 
cards, which do not contain, display, or exhibit social 
security account numbers.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Report on maintenance and protection of data held by the Secretary of 
        Defense as part of the Department of Defense Joint Advertising, 
        Market Research and Studies (JAMRS) program (sec. 586)
      The Senate amendment contained a provision (sec. 1417) 
that would require the Secretary of Defense to submit a report 
on how the JAMRS program maintains and protects data, including 
social security numbers, and prevents unauthorized access or 
inadvertent disclosure of data that could lead to identity 
theft.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Comptroller General report on military conscientious objectors (sec. 
        587)
      The House bill contained a provision (sec. 593) that 
would require the Comptroller General to submit to Congress, 
not later than 180 days after the date of the enactment of this 
Act, a report concerning members of the Armed Forces who have 
claimed the status as a military conscientious objector between 
January 1, 1989, and December 31, 2006.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
September 1, 2007, as the due date for the report, limit the 
period reported on from September 11, 2001, to December 31, 
2006, and clarify the elements of the report required.

                       Subtitle K--Other Matters

Modification in Department of Defense contributions to Military 
        Retirement Fund (sec. 591)
      The House bill contained a provision (sec. 581) that 
would reduce the Department of Defense's accrual contributions 
to the Military Retirement Fund by requiring the Department to 
contribute at the lower, part-time rate for reserve component 
soldiers who are mobilized or on active duty for special work.
      The Senate amendment contained a similar provision (sec. 
641(a) and (c)). The provision would also make this section 
effective on October 1, 2007.
      The Senate recedes with an amendment that would make this 
section effective on October 1, 2007.
Revision in government contributions to Medicare-Eligible Retiree 
        Health Care Fund (sec. 592)
      The House bill contained a provision (sec. 589) that 
would amend sections 1111, 1115, and 1116 of title 10, United 
States Code, to change the formula by which the government 
makes annual contributions to the Medicare-Eligible Retiree 
Health Care Fund. The provision would reduce the annual 
government contribution to the fund by changing the formula for 
calculating that contribution by: (1) excluding the cadets and 
midshipmen at the service academies; (2) excluding members of 
the reserve components who are not counted against active 
component end strength under section 115(i) of title 10, United 
States Code; and (3) basing the calculation on Selected Reserve 
member strength, not the end strength of the larger Ready 
Reserve. The provision would also prohibit any funds authorized 
or appropriated to the Department of Defense from being used to 
make any payment to the Medicare-Eligible Retiree Health Care 
Fund.
      The Senate amendment contained a similar provision (sec. 
641(b)-(c)).
      The Senate recedes with an amendment that would omit 
changes to section 1116 regarding payments into the Medicare-
Eligible Retiree Health Care Fund. The amendment would also 
modify section 1111(a) of title 10, United States Code, to 
clarify that the fund shall be used to finance the liabilities 
of the uniformed services under retiree health care programs 
for medicare-eligible beneficiaries.
Dental Corps of the Navy Bureau of Medicine and Surgery (sec. 593)
      The House bill contained a provision (sec. 582) that 
would eliminate the requirement for a separate dental division 
within the Navy Bureau of Medicine and Surgery, and establish a 
Dental Corps, which would be integrated within the Navy Bureau 
of Medicine and Surgery.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that Navy dental functions be under the direction of the Chief 
of the Dental Corps.
Permanent authority for presentation of recognition items for 
        recruitment and retention purposes (sec. 594)
      The House bill contained a provision (sec. 583) that 
would make permanent the authority in section 2261 of title 10, 
United States Code, to expend appropriated funds to procure 
recognition items of nominal or modest value for recruitment or 
retention purposes.
      The Senate amendment contained a similar provision (sec. 
585) that would authorize the presentation of recognition items 
during any period of war or national emergency declared by the 
President or Congress.
      The Senate recedes.
Persons authorized to administer enlistment and appointment oaths (sec. 
        595)
      The House bill contained a provision (sec. 585) that 
would amend sections 502 and 1031 of title 10, United States 
Code, to allow the Secretary of Defense to designate who is 
authorized to administer an enlistment or appointment oath and 
expand the number of people eligible to administer such oaths 
when the situation dictates.
      The Senate amendment contained a similar provision (sec. 
581).
      The Senate recedes.
Military voting matters (sec. 596)
      The House bill contained a provision (sec. 586) that 
would repeal section 1566(d) of title 10, United States Code, 
which requires the Department of Defense Inspector General to 
periodically conduct unannounced assessments of the compliance 
of Department installations with the requirements of the 
Uniformed and Overseas Citizens Absentee Voting Act, set forth 
in section 1973ff of title 42, United States Code.
      The Senate amendment contained a similar provision (sec. 
583) that would require the Secretary of Defense to continue 
the Interim Voting Assistance System (IVAS) ballot request 
program for the general election and all elections through 
December 31, 2006, and require reports from the Secretary on 
the implementation of IVAS in 2006 and on the Department's 
plans for expanding the use of electronic voting technology in 
the future. The provision would also require the Comptroller 
General to submit a report to Congress by March 1, 2007, on the 
programs and activities undertaken by the Department to 
facilitate voter registration, transmittal of ballots to 
absentee voters, and voting using electronic means.
      The House recedes with a technical amendment.
Physical evaluation boards (sec. 597)
      The House bill contained a provision (sec. 587) that 
would add a new section to title 10, United States Code, that 
would require: (1) the service secretaries to ensure that 
documents announcing decisions of physical evaluation boards 
(PEB) convey the findings and conclusions of the board in an 
orderly and itemized fashion with specific attention to each 
issue presented by the member being evaluated; (2) the 
Secretary of Defense to prescribe regulations establishing 
requirements and training standards for PEB liaison officers 
and to assess the compliance of the Secretaries of the military 
departments with those regulations at least once every 3 years; 
and (3) the Secretary of Defense to publish regulations 
establishing standards and guidelines concerning PEB assignment 
and training of staff, operating procedures, and consistency 
and timeliness of board decisions, and to assess the compliance 
of the Secretaries of the military departments with those 
regulations at least once every 3 years.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
      The conferees are concerned about the increasing 
caseloads being handled within the disability evaluation 
systems and adverse effects on processing times and 
decisionmaking that may stem from this increased caseload. The 
conferees urge the services to determine whether the manning 
and resources devoted to this function are sufficient and 
recommend that the service Inspectors General make the 
performance of the disability evaluation system an item of 
special interest.
Military ID cards for retiree dependents who are permanently disabled 
        (sec. 598)
      The Senate amendment contained a provision (sec. 582) 
that would require the Secretaries of the military departments 
to issue a permanent military ID card to a permanently disabled 
dependent of a military retiree.
      The House bill contained no similar provision.
      The House recedes.
United States Marine Band and United States Marine Drum and Bugle Corps 
        (sec. 599)
      The Senate amendment contained a provision (sec. 903) 
that would amend section 6222 of title 10, United States Code, 
to authorize the Secretary of the Navy to prescribe regulations 
for the appointment and promotion of members of the Marine Band 
and the Marine Drum and Bugle Corps. The provision would 
authorize the President to appoint members of the Marine Band 
and Marine Drum and Bugle Corps to the grades of captain and 
below and to delegate that authority to the Secretary of 
Defense. Additionally, the provision would authorize the 
President to appoint officers in the Marine Band and the Marine 
Drum and Bugle Corps in the grades of major and above by and 
with the advice and consent of the Senate.
      The House bill contained no similar provision.
      The House recedes.

                   Legislative Provisions Not Adopted

Authorized strength of Navy Reserve flag officers
      The House bill contained a provision (sec. 501) that 
would amend section 12004 of title 10, United States Code, to 
retain the authorized strength of Navy Reserve flag officers at 
48 but eliminate existing limitations on their distribution and 
allocation.
      The Senate amendment contained no similar provision.
      The House recedes.
Modification of authorities on senior members of the Judge Advocate 
        General's Corps
      The Senate amendment contained a provision (sec. 504) 
that would raise the statutory grades of the Judge Advocates 
General of the Army, Navy, and Air Force to lieutenant general 
or vice admiral, as appropriate. These three officers would be 
in addition to the numbers that would otherwise be permitted 
for their armed forces for officers serving on active duty in 
grades above major general or rear admiral, as the case may be. 
The provision would also change the title of the Assistant 
Judge Advocate General of the Army to ``Deputy Judge Advocate 
General,'' as is presently the case for the corresponding 
officers in the Navy and Air Force.
      The House bill contained no similar provision.
      The Senate recedes.
Requirement for significant joint experience for officers appointed as 
        Surgeon General of the Army, Navy, and Air Force
      The Senate amendment contained a provision (sec. 505) 
that would add a new section 3036a and amend sections 3036, 
5137, and 8036 of title 10, United States Code, to require that 
officers recommended for appointment as the Surgeon General of 
the Army, Navy, and Air Force must have significant joint 
experience as determined by the Chairman of the Joint Chiefs of 
Staff.
      The House bill contained no similar provision.
      The Senate recedes.
Report on private-sector promotion and constructive termination of 
        members of the reserve components called or ordered to active 
        service
      The House bill contained a provision (sec. 513) that 
would require the Secretary of Defense to report on post-
mobilization private-sector employment impacts on members of 
the reserve components.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree that the issue of whether or not 
members of the reserve components, called or ordered to active 
duty, receive promotions in due course upon their return from 
deployment in Operation Iraqi Freedom or Operation Enduring 
Freedom, or experience constructive termination by their 
employers as a result of such deployment, would be reviewed by 
a Department of Defense working group established by this Act 
to review transition to civilian employment of members of the 
National Guard and reserve returning from deployment.
Report on joint officer promotion boards
      The Senate amendment contained a provision (sec. 521) 
that would require the Secretary of Defense to submit a report 
on the desirability and feasibility of conducting joint officer 
promotion selection boards.
      The House bill contained no similar provision.
      The Senate recedes.
Authority for United States Military Academy and United States Air 
        Force Academy permanent military professors to assume command 
        positions while on periods of sabbatical
      The House bill contained a provision (sec. 523) that 
would authorize the Secretary of the Army and the Secretary of 
the Air Force to assign military officers who are permanent 
professors at the United States Military Academy and the United 
States Air Force Academy, respectively, to command positions 
while such professors are serving on a sabbatical tour of duty 
in an Army or Air Force unit outside the academic department of 
the academy to which they are assigned.
      The Senate amendment contained no similar provision.
      The House recedes.
Special operations fellowships
      The House bill contained a provision (sec. 526) that 
would authorize the Secretary of Defense to prescribe 
regulations under which the Assistant Secretary of Defense for 
Special Operations and Low-Intensity Conflict may award to an 
eligible person a fellowship leading to a doctoral or masters 
degree in a discipline determined by the Assistant Secretary.
      The Senate amendment contained no similar provision.
      The House recedes.
Condition on appointment of commissioned officers to position of 
        Director of National Intelligence or Director of the Central 
        Intelligence Agency
      The Senate amendment contained a provision (sec. 530) 
that would amend chapters 32 and 63 of title 10, United States 
Code, to add new sections. In chapter 32, the provision would 
require that a commissioned officer, as a condition of 
appointment to the position of Director of National 
Intelligence or Director of the Central Intelligence Agency, 
acknowledge that upon termination of an assignment to either 
position the officer will retire. In chapter 63, the provision 
would require the Secretaries of military departments to retire 
an officer upon termination of an assignment in either 
position.
      The House bill contained no similar provision.
      The Senate recedes.
Pilot program on reintegration of members of the National Guard into 
        civilian life after deployment
      The Senate amendment contained a provision (sec. 534) 
that would require the Secretary of the Army to carry out a 
pilot program to assess the feasibility and advisability of a 
voluntary program to facilitate the reintegration of members of 
the National Guard into civilian life upon return from an 
overseas deployment.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees believe that with the heavy reliance on the 
men and women of the National Guard and Reserve in support of 
Operation Enduring Freedom and Operation Iraqi Freedom it is 
essential that the Department of Defense take action to improve 
the flexibility and adequacy of military transition assistance 
programs (TAP) for their benefit. TAP for reservists should 
facilitate the reintegration of members of the National Guard 
and Reserve into civilian life as soon as possible after their 
return from an overseas deployment. TAP for reservists should 
also make such programs voluntary where appropriate and respect 
the desire of many Guardsmen and reservists to ``stand down'' 
from their military duties for appropriate periods. Therefore, 
the conferees urge the Department to implement and support a 
reintegration pilot program in a State that has a National 
Guard brigade returning from an overseas deployment. In the 
Senate Report accompanying H.R. 5631 (S. Rept. 09-292) of the 
Department of Defense Appropriations Bill, 2007, the conferees 
note that the Senate supported funding of $6.7 million for a 
reintegration initiative in connection with overseas 
deployment. If such a pilot program is implemented, the 
conferees direct the Secretary of Defense to submit a report of 
evaluation within 90 days of its conclusion, including a 
recommendation regarding the feasibility of reintegration 
programs for members of the National Guard and Reserve.
Report on using six-month deployments for Operation Enduring Freedom 
        and Operation Iraqi Freedom
      The House bill contained a provision (sec. 534) that 
would express the sense of Congress that the Secretary of the 
Army should continue to evaluate and consider the potential 
benefits and impacts of 6-month overseas deployments for 
soldiers in connection with Operation Enduring Freedom and 
Operation Iraqi Freedom. The provision would require the 
Secretary of the Army to submit a report on any plans, 
benefits, and drawbacks regarding shorter deployments and the 
results of any surveys of soldiers and their dependents 
regarding proposals to reduce the length of operational 
deployments
      The Senate amendment contained no similar provision.
      The House recedes.
National Guard officers authority to command
      The House bill contained a provision (sec. 544) that 
would permit, with presidential authorization and consent of 
the Governor concerned, any National Guard officer to retain a 
State commission in the National Guard while serving on active 
duty. The provision would further allow such authorization and 
consent to be obtained in advance in order to establish 
succession to command.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees recommend that the Commission on the 
National Guard and Reserve review the advisability and 
feasibility of further expanding the authority of National 
Guard officers to serve in both Federal status under title 10, 
United States Code, and State status under title 32, United 
States Code, as a means of achieving unity of command of units 
that are composed of both active-duty members and National 
Guard personnel. Elsewhere in this report, the conferees agree 
to add this issue to the matters referred to the commission for 
review on a priority basis.
Cold War Victory Medal
      The House bill contained a provision (sec. 552) that 
would require the service secretaries to issue a service medal 
to be known as the Cold War Victory Medal to eligible members 
and former members of the Armed Forces who performed active 
duty or inactive duty training between September 2, 1945, and 
December 26, 1991.
      The Senate amendment contained no similar provision.
      The House recedes.
Advancement on the retired list of certain decorated retired Navy and 
        Marine Corps officers
      The House bill contained a provision (sec. 554) that 
would require the Secretary of the Navy, upon receipt of a 
qualifying application, to advance to the next higher grade on 
the retired list officers who had been specifically commended 
for performance of duty in combat during World War II. The 
provision, which would have restored in part a retirement 
benefit that ended in 1959, would have no effect on 
compensation or benefits.
      The Senate amendment contained no similar provision.
      The House recedes.
Criteria for removal of member from temporary disability retired list
      The House bill contained a provision (sec. 561) that 
would amend section 1210(e) of title 10, United States Code, to 
direct that a member with less than a 30 percent disability 
rating may not be removed from the temporary disability retired 
list (TDRL) and separated prior to the expiration of the 
maximum TDRL period allowed by law unless the disability is of 
a permanent nature and stable.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are concerned that the absence of a 
standard relating to the permanent and stable nature of a 
disability rated at less than 30 percent under section 1210(e) 
of title 10 may lead to inequitable results for members with 
less than 20 years of active-duty service. The conferees direct 
the Secretary of Defense to submit a report no later than May 
1, 2007, describing the manner in which section 1210(e) is 
implemented in the military departments and explaining how 
military members with disabilities rated at less than 30 
percent who are placed on the TDRL are administered. The report 
should include discussion of what the impact would be of a 
change in law requiring that such a disability be of a 
permanent and stable nature. The report should include 
recommendations for legislative changes that would ensure that 
members with substantial active-duty service are treated 
equitably.
Modification of time limit for use of entitlement to educational 
        assistance for reserve component members supporting contingency 
        operations and other operations
      The Senate amendment contained a provision (sec. 570A) 
that would extend the time a member of the Selected Reserve is 
authorized to use the educational benefit earned for service 
while recalled to active duty in support of a war or national 
emergency for a period of 10 years from the date of separation 
from the Selected Reserve.
      The House bill contained no similar provision.
      The Senate recedes.
Postal benefits program for members of the Armed Forces
      The House bill contained a provision (sec. 575) that 
would require the Secretary of Defense, in consultation with 
the United States Postal Service, to provide a program of 
postal benefits to military members who are serving in Iraq or 
Afghanistan, or who are hospitalized at a military medical 
facility as a result of disease or injury incurred while 
serving in Iraq or Afghanistan. The postal benefit would be 
provided using coupons or other forms of evidence indicating a 
mailing privilege to be used to mail letters, sound and video 
recordings, printed materials, or ground parcels not exceeding 
15 pounds in weight at no cost.
      The Senate amendment contained no similar provision.
      The House recedes.
Funding
      The House bill contained a provision (sec. 576) that 
would require the Secretary of Defense to fund the operation of 
the postal benefit program from contingent emergency reserve 
funds or emergency supplemental appropriations.
      The Senate amendment contained no similar provision.
      The House recedes.
Duration
      The House bill contained a provision (sec. 577) that 
would require new postal benefits to apply with respect to mail 
sent during the 1-year period beginning on the date on which 
the regulations administering the postal benefit are issued by 
the Secretary of Defense.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Senate on notice to Congress of recognition of members of the 
        Armed Forces for extraordinary acts of bravery, heroism, and 
        achievement
      The Senate amendment contained a provision (sec. 587) 
that would express the sense of the Senate that the Secretary 
of Defense or the service secretaries should notify the 
Committees on Armed Services of the Senate and the House of 
Representatives and applicable senators and representatives 
when a member of the Armed Forces receives a medal or is 
otherwise commended or recognized for an act of extraordinary 
heroism, bravery, achievement, or other distinction.
      The House bill contained no similar provision.
      The Senate recedes.
Department of Labor Transitional Assistance Program
      The House bill contained a provision (sec. 588) that 
would amend section 1144 of title 10, United States Code, to 
require participation by certain members of reserve components 
in the transition assistance program (TAP) provided by the 
Secretary of Labor, and encourage participation by certain 
members who had previously participated in such programs. The 
provision would also require the service secretaries to update 
the content of transition materials used by the National 
Veterans Training Institute of the Department of Labor on a 
continuing basis.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees expect the Secretary of Defense, the 
Secretaries of the military Departments, and the Secretary of 
Labor to take steps to ensure maximum participation by all 
eligible service members, and particularly members of the 
National Guard and Reserve, in pre-separation counseling and 
TAP. Military leaders should encourage and assist separating 
service members to develop personal transition plans prior to 
separation. TAP presentations programs should be scheduled 
during duty time to ensure all separating service members, 
including Guard and Reserve members, have full access and 
opportunity to attend.
      The conferees are encouraged by the new approach to the 
TAP for members of the Guard and Reserve and their families 
described in the Report to Congress on Transition Assistance 
and Disabled Transition Assistance Programs of May 4, 2006. The 
combination of a transition assistance orientation, a new web-
based transition assistance portal, and an around-the-clock 
call center will address the full spectrum of needs and 
concerns of demobilizing Guard and Reserve personnel by 
providing the assistance whenever needed without unnecessarily 
delaying the members' return to their homes following 
deployments. The conferees encourage the expedited 
implementation of this new approach.
Military chaplains
      The House bill contained a provision (sec. 590) that 
would amend sections 3547, 4337, 6031, 8547, and 9337 of title 
10, United States Code, to prescribe that military chaplains 
shall have the prerogative to pray according to the dictates of 
their conscience, except as must be limited by military 
necessity, with any such limitation being imposed in the least 
restrictive manner feasible.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees direct the Secretary of the Air Force to 
rescind the policy and revised interim guidelines concerning 
the exercise of religion in the Air Force issued on February 9, 
2006, and direct the Secretary of the Air Force to reinstate 
the policy that was set forth in the Air Force Directive 52-1 
dated July 1, 1999. The conferees further direct the Secretary 
of the Navy to rescind the Secretary of the Navy Instruction 
1730.7C dated February 21, 2006, titled ``Religious Ministry 
within the Department of the Navy,'' and direct the Secretary 
of the Navy to reinstate the policy that was set forth in the 
Secretary of the Navy Instruction 1730.7B dated October 12, 
2000.
Entrepreneurial service members empowerment task force
      The House bill contained a provision (sec. 592) that 
would require the Secretary of Defense, in coordination with 
the Administrator of the Small Business Administration, to 
establish a task force that would improve programs designed to 
address the economic concerns and business challenges of 
military member entrepreneurs and coordination of programs by 
Federal agencies.
      The Senate amendment contained no similar provision.
      The House recedes.
Funeral ceremonies for veterans
      The Senate amendment contained a provision (sec. 592) 
that would amend section 1491 of title 10, United States Code, 
to authorize the service secretaries, under regulations and 
procedures prescribed by the Secretary of Defense, to support 
the conduct of funeral honors that are provided solely by 
members of veterans organizations for deceased veterans. The 
provision would also amend section 4683 of title 10, United 
States Code, to authorize the use at funeral ceremonies of M-1 
rifles by designees of veterans organizations who are at least 
18 years of age, are the spouses, sons, daughters, nephews, 
nieces, or other family relations of members or former members 
of the Armed Forces, and have successfully completed a formal 
firearm training program or a hunting safety program.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge and are deeply grateful for the 
voluntary contribution of time, resources, and expertise by 
veterans organizations and their members who provide funeral 
honors for deceased veterans, particularly in rural and remote 
areas far from military installations. Without their 
assistance, the rendering of appropriate funeral honors when 
requested by survivors to those who have served in the Armed 
Forces would not be possible. The conferees believe that 
greater effort is needed by the Department of Defense to 
identify appropriate means to support veterans organization 
partners in fulfilling this commitment. The conferees also 
believe that reasonable steps should be taken to support 
members of veterans organizations who render funeral honors by 
loaning M-1 rifles under the authority of section 4683. The 
conferees direct the Secretary of the Army to submit a report 
to the Committees on Armed Services of the Senate and the House 
of Representatives within 90 days of the date of the enactment 
of this Act on current policies and practices of the Army 
relating to limits or prohibitions being enforced by the Army 
on the use of M-1 rifles by members of veterans organizations 
who are relatives or family members of veterans but not 
veterans themselves.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

Fiscal year 2007 increase in military basic pay and reform of basic pay 
        rates (sec. 601)
      The House bill contained provisions (secs. 601-602) that 
would increase the rate of basic pay for all military members 
by 2.7 percent effective on January 1, 2007, and, for certain 
mid-career personnel, increase the rate of pay by higher 
percentages effective April 1, 2007.
      The Senate amendment contained a provision (sec. 601) 
that would authorize a pay raise for members of the uniformed 
services of 2.2 percent effective on January 1, 2007; target 
pay raises for warrant officers and enlisted members serving in 
the E-5 to E-7 grades that would be effective on April 1, 2007; 
and extend the basic pay table to 40 years, providing longevity 
step increases for the highest officer, warrant officer, and 
enlisted grades.
      The House recedes with a technical amendment.
Increase in maximum rate of basic pay for general and flag officer 
        grades to conform to increase in pay cap for Senior Executive 
        Service personnel (sec. 602)
      The House bill contained a provision (sec. 603) that 
would amend section 203(a)(2) of title 37, United States Code, 
to provide that the rates of basic pay for officers in pay 
grades O-7 through O-10 may not exceed the monthly equivalent 
of the rate of pay for level II, vice III, of the Executive 
Schedule.
      The Senate amendment contained a similar provision (sec. 
602).
      The House recedes with a technical amendment.
One-year extension of prohibition against requiring certain injured 
        members to pay for meals provided by military treatment 
        facilities (sec. 603)
      The Senate amendment contained a provision (sec. 604) 
that would amend section 402(h)(3) of title 37, United States 
Code, to extend for an additional year the prohibition on 
requiring members who are undergoing medical recuperation or 
therapy, or are otherwise in the status of continuous care, 
including outpatient care, at a military treatment facility for 
injuries, illnesses, or diseases incurred or aggravated while 
serving on active duty in support of Operation Iraqi Freedom or 
Operation Enduring Freedom, or in any other operation 
designated by the Secretary of Defense as a combat operation or 
in an area designated by the Secretary as a combat zone. The 
provision would also require the Secretary to submit a report 
to the congressional defense committees by February 1, 2007, on 
the administration of section 402(h)(3), including an 
assessment of the implementation of the prohibition by the 
services and recommendations regarding whether this authority 
should be made permanent.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Availability of second basic allowance for housing for certain reserve 
        component or retired members serving in support of contingency 
        operations (sec. 604)
      The House bill contained a provision (sec. 604) that 
would amend section 403(g) of title 37, United States Code, to 
authorize service secretaries to pay a second monthly basic 
allowance for housing in lieu of per diem to reserve component 
members without dependents mobilized in support of a 
contingency operation.
      The Senate amendment contained a similar provision (sec. 
605).
      The Senate recedes with an amendment that would make the 
provision effective on or after October 1, 2006.
Extension of temporary continuation of housing allowance for dependents 
        of members dying on active duty to spouses who are also members 
        (sec. 605)
      The House bill contained a provision (sec. 605) that 
would amend section 403(l) of title 37, United States Code, to 
provide that a member of the uniformed services, who is a 
spouse of a deceased member who died while serving on active 
duty, may continue to be paid the basic allowance for housing.
      The Senate amendment contained a similar provision (sec. 
606).
      The Senate recedes.
Payment of full premium for coverage under Servicemembers' Group Life 
        Insurance program during service in Operation Enduring Freedom 
        or Operation Iraqi Freedom (sec. 606)
      The House bill contained a provision (sec. 607) that 
would amend section 437 of title 37, United States Code, to 
increase from $150,000 to $400,000 the amount of coverage under 
the Servicemembers' Group Life Insurance that the services 
would be required to fund for all members of the Armed Forces 
serving in Operation Enduring Freedom or Operation Iraqi 
Freedom.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Clarification of effective date of prohibition on compensation for 
        correspondence courses (sec. 607)
      The House bill contained a provision (sec. 606) that 
would amend section 206(d) of title 37, United States Code, to 
clarify that the prohibition on compensation for work or study 
in connection with correspondence courses, including the 
prohibition as it relates to a member of the National Guard 
while not in federal service, applies to any such work or study 
performed on or after September 7, 1962, and to any claim for 
compensation based on such work or study arising after that 
date
      The Senate amendment contained a similar provision (sec. 
603).
      The Senate recedes.
      The conferees direct the Secretary of Defense to review 
the policy regarding compensation of members of the reserve 
components (which include officers and enlisted personnel of 
the National Guard) for completing correspondence and distance 
learning courses. The review should include an audit of 
military professional education and other career development 
and military skills courses that are required for continued 
military service and advancement in the reserve component. For 
those courses that do not afford reserve component members 
practical options for attending in residence, an assessment 
should be completed of the feasibility and need for 
compensation as an incentive to complete correspondence and 
distance learning courses. The Secretary should report on the 
results of this review, including any recommendations for 
legislative changes, by July 31, 2007, to the Committees on 
Armed Services of the Senate and the House of Representatives.
Extension of pilot program on contributions to Thrift Savings Plan for 
        initial enlistees in the Army (sec. 608)
      The Senate amendment contained a provision (sec. 619) 
that would extend the pilot program on contributions to the 
Thrift Savings Plan for initial enlistees in the Army, as 
required by section 606 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163), until December 
31, 2008. The provision would also extend the due date for the 
report on the pilot program to February 1, 2008.
      The House bill contained no similar provision.
      The House recedes.

           Subtitle B--Bonuses and Special and Incentive Pays

Extension of certain bonus and special pay authorities for reserve 
        forces (sec. 611)
      The House bill contained a provision (sec. 611) that 
would extend for 1 year the authority to pay the Selected 
Reserve reenlistment bonus; the Selected Reserve affiliation or 
enlistment bonus; the special pay for enlisted members assigned 
to certain high priority units; the Ready Reserve enlistment 
bonus for persons without prior service; the Ready Reserve 
enlistment and reenlistment bonus for persons with prior 
service; and the Selected Reserve enlistment bonus for persons 
with prior service.
      The Senate amendment contained a similar provision (sec. 
611).
      The House recedes.
Extension of certain bonus and special pay authorities for 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 professionals in critically 
short wartime specialties, the accession bonus for dental 
officers, and the accession bonus for pharmacy officers until 
December 31, 2007. Additionally, the provision would extend the 
authority to repay the educational loans for certain health 
professionals who serve in the Selected Reserve to January 1, 
2008.
      The Senate amendment contained a similar provision (sec. 
612).
      The House recedes.
Extension of special pay and bonus authorities for nuclear officers 
        (sec. 613)
      The House bill contained a provision (sec. 613) that 
would extend for 1 year the authority to pay the special pay 
for nuclear-qualified officers extending their period of active 
service; the nuclear career accession bonus; and the nuclear 
career annual incentive bonus.
      The Senate amendment contained an identical provision 
(sec. 613).
      The conference agreement includes this provision.
Extension of authorities relating to payment of other bonuses and 
        special pays (sec. 614)
      The House bill contained a provision (sec. 614) that 
would extend for 1 year the authority to pay the aviation 
officer retention bonus; assignment incentive pay; the 
reenlistment bonus for active members; the enlistment bonus; 
the retention bonus for members qualified in critical military 
skills or assigned to high priority units; the accession bonus 
for new officers in critical skills; the incentive bonus for 
conversion to military occupational specialty to ease personnel 
shortage; and the incentive bonus for transfer between the 
armed forces.
      The Senate amendment contained a similar provision (sec. 
614). The provision would extend through December 31, 2009, the 
authority to pay the incentive bonus for transfer between the 
armed forces.
      The House recedes.
Expansion of eligibility of dental officers for additional special pay 
        (sec. 615)
      The House bill contained a provision (sec. 615) that 
would authorize additional special pay for dental officers 
while they are undergoing dental internship or residency 
training.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Increase in maximum annual rate of special pay for Selected Reserve 
        health care professionals in critically short wartime 
        specialties (sec. 616)
      The House bill contained a provision (sec. 616) that 
would increase the maximum annual rate of special pay for 
Selected Reserve health care professionals in critically short 
wartime specialties from $10,000 to $25,000.
      The Senate amendment contained a similar amendment (sec. 
615).
      The House recedes with a clarifying amendment.
Expansion and enhancement of accession bonus authorities for certain 
        officers in health care specialties (sec. 617)
      The House bill contained a provision (sec. 621) that 
would authorize the Secretary of Defense to establish a 2-year 
pilot program to offer additional financial incentives for up 
to five critical medical specialties.
      The Senate amendment contained a provision (sec. 616) 
that would authorize an increase in the maximum amount 
authorized for an accession bonus for fully qualified dental 
officers from $30,000 to $200,000, and an accession bonus of up 
to $400,000 for fully qualified medical officers and dental 
specialist officers in critically short wartime specialties.
      The House recedes with a technical amendment.
Authority to provide lump sum payment of nuclear officer incentive pay 
        (sec. 618)
      The House bill contained a provision (sec. 617) that 
would authorize nuclear officer incentive pay to be paid as a 
lump sum or in variable amounts in addition to payment in equal 
annual installments.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Increase in maximum amount of nuclear career accession bonus (sec. 619)
      The House bill contained a provision (sec. 618) that 
would increase the maximum amount of the nuclear career 
accession bonus from $20,000 to $30,000.
      The Senate amendment contained a similar provision (sec. 
617).
      The House recedes with a clarifying amendment.
Increase in maximum amount of incentive bonus for transfer between 
        Armed Forces (sec. 620)
      The House bill contained a provision (sec. 619) that 
would amend section 327(d)(1) of title 37, United States Code, 
to increase the maximum authorized amount of the incentive 
bonus for transfer between armed forces from $2,500 to $10,000.
      The Senate amendment contained a similar provision (sec. 
618(d)).
      The Senate recedes with a technical amendment.
Additional authorities and incentives to encourage retired members and 
        reserve component members to volunteer to serve on active duty 
        in high-demand, low-density assignments (sec. 621)
      The House bill contained a provision (sec. 623) that 
would add a new section 329 to title 37, United States Code. 
The provision would authorize the Secretary of Defense to pay a 
bonus of up to $50,000 to encourage retired members, 
reservists, and former members discharged from the military to 
return to active duty to fill manpower requirements in units 
tasked to provide high-demand, low-density military 
capabilities or to fill other specialties, as designated by the 
Secretary as critical to meet wartime or peacetime 
requirements. This section would also authorize the Secretary 
to develop additional incentives to encourage personnel with 
critical, high-demand, low-density skills to return to active 
duty. The authority would expire on December 31, 2010. The 
provision would also amend section 688a of title 10, United 
States Code, to authorize the Secretary concerned to order to 
active duty a retired member who agrees to serve on active duty 
in an assignment intended to alleviate a high-demand, low-
density military capability.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
specify that members appointed under the authority of section 
329 of title 37, United States Code, are not eligible for 
promotion.
Accession bonus for members of the Armed Forces appointed as 
        commissioned officers after completing officer candidate school 
        (sec. 622)
      The Senate amendment contained a provision (sec. 620) 
that would amend title 37, United States Code, to add a new 
section 330 that would authorize an accession bonus not to 
exceed $8,000 for persons who complete officer candidate school 
(OCS), accept a commission or appointment as an officer of the 
armed forces, and serve on active duty in accordance with the 
terms of their agreement. The provision would also authorize 
the Secretary of the Army to pay an accession bonus not to 
exceed $8,000 to a person who, during the period beginning on 
April 1, 2005, and ending on April 6, 2006, executed an 
agreement to enlist for the purpose of attending OCS and 
received a bonus under section 309 of title 37, United States 
Code, and who completed the terms of the agreement required for 
payment of the bonus.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Modification of certain authorities applicable to the targeted shaping 
        of the Armed Forces (sec. 623)
      The House bill contained a provision (sec. 622) that 
would expand the temporary program of voluntary separation 
incentives (VSI) and benefits authorized by section 643 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163) to remove the bar prohibiting participation of 
enlisted personnel and officers with between 12 and 20 years of 
service. The provision would also amend section 1175 of title 
10, United States Code, to extend the expiration date of the 
authority from December 31, 2008, to December 31, 2009.
      The Senate amendment contained a similar provision (sec. 
618) that would increase the maximum authorized amount of the 
VSI to an amount not greater than four times the full amount of 
separation pay for a member of the same pay grade and years of 
service who is involuntarily separated under section 1174 of 
title 10, United States Code, and extend the authority to use 
the provision through December 31, 2012. The provision would 
amend sections 638 and 638a of title 10, United States Code, to 
relax limitations on use of selective early retirements and 
discharges through December 31, 2012.
      The House recedes with an amendment that would delete 
provisions relating to the expanded use of selective early 
retirement boards under sections 638 and 638a.
Enhancement of bonus to encourage certain persons to refer other 
        persons for enlistment in the Army (sec. 624)
      The House bill contained a provision (sec. 620) that 
would amend section 645(a) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) to 
clarify that military retirees, to include members of a reserve 
component under 60 years of age who, but for age, would be 
eligible for retired pay, are eligible to be paid the referral 
bonus.
      The Senate amendment contained a similar provision (sec. 
621). The provision would increase the maximum amount of the 
bonus not to exceed $2,000; provide that civilian employees of 
the Department of the Army are also eligible to receive the 
referral bonus; and specify that a referral bonus paid to a 
retiree is in addition to any compensation to which such a 
member is entitled under titles 10, 37, or 38 United States 
Code, or under any other provision of law.
      The House recedes with an amendment that would make 
administrators or instructors in the Junior Reserve Officers' 
Training Corps program or retired members of the Army employed 
as administrators or instructors in the program ineligible for 
the bonus.

            Subtitle C--Travel and Transportation Allowances

Travel and transportation allowances for transportation of family 
        members incident to illness or injury of members (sec. 631)
      The House bill contained a provision (sec. 633) that 
would amend section 411h of title 37, United States Code, to 
authorize the payment of travel and transportation allowances 
to a person related to a seriously injured or ill member 
covered under section 411h, who is also a member of the Armed 
Forces.
      The Senate amendment contained no similar provision.
      The Senate recedes.

             Subtitle D--Retired Pay and Survivor Benefits

Retired pay of general and flag officers to be based on rates of basic 
        pay provided by law (sec. 641)
      The Senate amendment contained a provision (sec. 650) 
that would add a new section 1407a to title 10, United States 
Code, that would control the calculation of the retired pay of 
a flag or general officer whose rate of pay while on active 
duty was subject to a reduction under section 203(a)(2) of 
title 37. The provision would provide that such a determination 
would be made using the rates of basic pay in effect as 
provided by law rather than rates reduced under section 
203(a)(2). The effective date for this provision would be 
October 1, 2006.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Inapplicability of retired pay multiplier maximum percentage to service 
        of members of the Armed Forces in excess of 30 years (sec. 642)
      The Senate amendment contained a provision (sec. 651) 
that would amend sections 1409 and 12739 of title 10, United 
States Code, to provide that in the case of a member who 
retires after December 31, 2006, with more than 30 years of 
creditable service, the percentage to be used to calculate 
retired pay would increase based on the years of active-duty or 
reserve service in excess of 30 years pursuant to a prescribed 
formula. The Secretary of Defense would be authorized to 
establish conditions under which this higher rate of retired 
pay would be afforded for purposes of this provision.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Military Survivor Benefit Plan beneficiaries under insurable interest 
        coverage (sec. 643)
      The House bill contained a provision (sec. 641) that 
would amend section 1448(b)(1) of title 10, United States Code, 
to allow military retirees who participate in the Survivor 
Benefit Plan and elect the insurable interest coverage to 
select a new insurable interest if their designated beneficiary 
dies.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Modification of eligibility for commencement of authority for optional 
        annuities for dependents under the Survivor Benefit Plan (sec. 
        644)
      The House bill contained a provision (sec. 645) that 
would express the sense of Congress that eligibility for a 
surviving child annuity in lieu of a surviving spouse annuity 
under the Survivor Benefit Plan (SBP) for a child of a member 
of the Armed Forces who dies while on active duty should be 
extended so as to cover children of members who die after 
October 7, 2001, rather than only children of members dying 
after November 23, 2003.
      The Senate amendment contained a provision (sec. 652) 
that would amend section 1448(d)(2)(B) of title 10, United 
States Code, to effect the foregoing change to SBP elections 
based on service member deaths after October 7, 2001.
      The House recedes.
Study of training costs, manning, operations tempo, and other factors 
        that affect retention of members of the Armed Forces with 
        special operations designations (sec. 645)
      The House bill contained a provision (sec. 644) that 
would require the Secretary of Defense to submit a report, not 
later than 90 days after the date of the enactment of this Act, 
on retention of members of the Armed Forces who have a special 
operations forces designation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
certain matters to be reported on, and require that the report 
be submitted no later than August 1, 2007.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Treatment of price surcharges of certain merchandise sold at commissary 
        stores (sec. 661)
      The House bill contained a provision (sec. 651) that 
would clarify that revenues for products that are sold in 
commissary stores as special exceptions to the standard 
surcharge shall be applied to the surcharge fund as if it were 
a uniform surcharge product.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Limitations on lease of non-excess Department of Defense property for 
        protection of morale, welfare, and recreation activities and 
        revenue (sec. 662)
      The House bill contained a provision (sec. 652) that 
would prohibit the Secretary of Defense from entering into a 
lease for enhanced use of non-excess Department of Defense 
property, which includes the establishment or operation of an 
ancillary support facility if that facility would be in direct 
competition with military exchanges, commissaries, and morale, 
welfare, and recreation activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require a 
lessee to provide military exchanges, commissaries, and morale, 
welfare, and recreation activities the right to establish and 
operate a community support facility or provide community 
support services that are determined to be in direct 
competition with facilities or activities of those entities, or 
to seek equitable compensation for Department morale, welfare, 
and recreation programs in lieu of operation of such a facility 
or service. The amendment would allow these entities 90 days 
within which to exercise the right to establish or operate such 
community support facilities or services, and require 
notification to Congress regarding all leases for enhanced use 
that include such facilities or services. The amendment would 
also require the Secretary to prescribe uniform procedures and 
criteria for the evaluation of proposals for enhanced use 
leases involving the operation of community support facilities 
or services by either a lessee or a military exchange, 
commissary, or morale, welfare, and recreation entity. The 
conferees note that the term ``lodging support services'' as 
used in the provision was intended to include coin operated 
machines, lobby store for personal items and snacks, 
restaurants/snack bars, and other similar support services.
      The conferees direct the Secretary to ensure that the 
notifications required in subsection (d)(6) of the amendment 
are carried out in the same manner as approval or disapproval 
is obtained from the Committees on Armed Services of the Senate 
and the House of Representatives for non-appropriated fund 
military construction projects.
Report on cost effectiveness of purchasing commercial insurance for 
        commissary and exchange facilities and facilities of other 
        morale, welfare, and recreation programs and nonappropriated 
        fund instrumentalities (sec. 663)
      The House bill contained a provision (sec. 654) that 
would require the Secretary of Defense to submit a report to 
Congress evaluating the cost effectiveness of the Defense 
Commissary Agency and certain nonappropriated fund activities 
purchasing commercial insurance to protect financial interests 
in facilities operated by morale, welfare, and recreation 
activities, military exchange stores, and commissary stores 
against loss or damage.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Study and report regarding access of disabled persons to morale, 
        welfare, and recreation facilities and activities (sec. 664)
      The House bill contained a provision (sec. 662) that 
would require the Secretary of Defense to conduct a pilot 
project at a significant number of military golf courses for 
the purpose of developing a strategy to make golfs carts that 
are accessible for disabled persons available at all military 
golf courses.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to conduct a study of the current capability of 
Department of Defense morale, welfare, and recreation 
facilities and nonappropriated fund activities to provide 
access and accommodation to disabled persons, with specific 
attention to the applicability of section 504 of the 
Rehabilitation Act of l973 (Public Law 93-112). The amendment 
would require the study to include plans to make available 
additional golf carts at military golf courses that are 
accessible for disabled persons authorized to use such courses. 
The amendment would require the Secretary to report to Congress 
on the results of the study not later than 180 days after the 
date of the enactment of this Act.

                       Subtitle F--Other Matters

Limitations on terms of consumer credit extended to servicemembers and 
        dependents (sec. 670)
      The Senate amendment contained a provision (sec. 666) 
that would amend title II of the Servicemembers Civil Relief 
Act (50 U.S.C. App. 521 et seq.) (SCRA) to add a new section 
208 that would regulate the terms of consumer credit extended 
by creditors to servicemembers and servicemembers' dependents. 
The provision would: (1) prohibit creditors from imposing an 
annual percentage rate greater than 36 percent for consumer 
credit loans; (2) require prescribed mandatory loan 
disclosures, including a clear description of payment 
obligations; (3) prohibit creditors from automatically 
renewing, repaying, refinancing, or consolidating a loan 
without executing new loan documentation and loan disclosures; 
and (4) preempt any State or Federal law or regulation to the 
extent that such law or regulation is inconsistent with this 
provision. The provision would provide penalties, including 
fines as provided in title 18, United States Code, or 
imprisonment for not more than 1 year.
      The House bill contained no similar provision.
      The House recedes with an amendment that would amend 
title 10, rather than the SCRA, to add a new section 987 that 
would establish additional protections for servicemembers and 
their dependents who are extended credit. The amendment would 
prohibit creditors from charging servicemembers and their 
dependents annual percentage rates of interest for loans higher 
than the legal limits for residents of the State. The amendment 
would prohibit violation or waiver of any State consumer 
lending protections that protect residents of the State on the 
basis of nonresident or military status. The amendment would 
set forth specific limitations on lending practices by 
creditors who extend credit to covered members and their 
dependents, including mandatory waiver of a borrower's right to 
legal recourse using a check or other means of access to a 
deposit, savings, or other financial account maintained by the 
borrower; or using the title of a vehicle as security for an 
obligation. The amendment would direct the Secretary of 
Defense, in consultation with other Federal regulatory 
agencies, including the Federal Trade Commission, the Board of 
Governors of the Federal Reserve System, the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance 
Corporation, the Office of Thrift Supervision, the National 
Credit Union Administration, and the Treasury Department, to 
prescribe regulations to carry out this provision.
Enhancement of authority to waive claims for overpayment of pay and 
        allowances and travel and transportation allowances (sec. 671)
      The Senate amendment contained a provision (sec. 665) 
that would amend section 2774 of title 10, United States Code, 
to specify that a claim of the United States against a person 
arising out of an erroneous payment of a bonus, special pay, or 
incentive pay, in addition to erroneous payment of pay or 
allowances, may be waived. The provision would also increase 
the dollar limit for waivers from $1,500 to $10,000 and extend 
the period in which a waiver may be granted from 3 years to 5 
years. The provision would require that any modifications to 
standards under section 2774 controlling waivers of claims 
necessitated by this provision be completed not later than 
March 1, 2007.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
requirement for modifications to applicable standards and the 
provision relating to bonuses, special pays, and incentive pays 
as unnecessary.
Exception for notice to consumer reporting agencies regarding debts or 
        erroneous payments pending a decision to waive, remit, or 
        cancel (sec. 672)
      The Senate amendment contained a provision (sec. 664) 
that would amend section 2780 of title 10, United States Code, 
to prohibit disclosure of information to consumer reporting 
agencies concerning indebtedness of a member that is delinquent 
by more than 3 months while a decision regarding waiver, 
remission, or cancellation is pending.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Expansion and enhancement of authority to remit or cancel indebtedness 
        of members and former members of the Armed Forces incurred on 
        active duty (sec. 673)
      The House bill contained a provision (sec. 663) that 
would amend sections 4837, 6161, and 9837 of title 10, United 
States Code, to extend the termination date of the temporary 
expanded authority to remit or cancel indebtedness of military 
members included in section 683 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) 
from December 31, 2007, to December 31, 2009. The provision 
would also increase the period of time from 1 year to 5 years 
following honorable discharge or separation during which the 
service secretaries may exercise the expanded authority to 
remit and cancel indebtedness.
      The Senate amendment contained a similar provision (sec. 
663) that would extend the applicability of the remission or 
cancellation authority to retired members. The provision would 
also authorize the Secretary of Defense to determine the limits 
on the time for exercise of the authority to remit or cancel 
indebtedness by regulation.
      The House recedes with an amendment that would authorize 
service secretaries to remit or cancel indebtedness of persons 
incurred while they served on active duty in the armed forces. 
The amendment would eliminate limits on the allowable period of 
exercise of their authority retroactive to October 7, 2001, and 
make the authority to remit or cancel indebtedness permanent.
      The conferees believe that the Secretary of Defense must 
take more forceful steps to ensure that policies and procedures 
used by the Defense Finance and Accounting Service and the 
services relating to the collection of indebtedness incurred by 
members are cost-effective and equitable. Collection practices 
must take into account fully the problems created by existing 
manual pay systems, sources of errors causing overpayments, and 
the harmful effects on morale of belated, computer-generated 
efforts to recoup pay from members, particularly those who have 
served under combat conditions, whose overpayments occurred 
through no fault of the member.
Phased recovery of overpayments of pay made to members of the uniformed 
        services (sec. 674)
      The House bill contained a provision (sec. 664) that 
would amend section 1007 of title 37, United States Code, to 
provide that the amount deducted from the pay of a member to 
recover an overpayment may not exceed 20 percent per month of 
the member's pay when the overpayment occurred through no fault 
of the member. Additionally, no deduction would be authorized 
from the pay of a member who has been wounded or injured in the 
line of duty or who incurred an illness in a combat operation 
or combat zone until the 90-day period beginning on the date on 
which the member is notified of the overpayment has expired.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
waiver of the conditions limiting collection of overpayments if 
the member requests or consents to collection of the 
overpayment at an accelerated rate or at an earlier date.
Joint family support assistance program (sec. 675)
      The Senate amendment contained a provision (sec. 667) 
that would require the Secretary of Defense to establish a 
joint family support program in at least six regions in the 
United States. The program would provide financial and other 
assistance to families of members of the Armed Forces, 
including sponsorship of volunteers and coordination of family 
assistance activities of the Department of Defense as well as 
other public and private entities. The provision would also 
authorize $5.0 million in Operation and Maintenance, Defense-
wide to provide financial, material, or other support to 
nonprofit entities to facilitate assistance by those entities 
to geographically isolated family members of the Armed Forces. 
The authority for both programs would expire 3 years after the 
initial obligation of funds.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
number of joint family support assistance regional sites to 
six, and clarify that the program is not intended to operate in 
lieu of existing family support centers, but rather to augment 
the activities of the Department of Defense and the military 
departments family support centers. The amendment would also 
delete the authorization for grants to nonprofit entities.
      The conference outcome is reflected in the tables in this 
report.
Special working group on transition to civilian employment of National 
        Guard and Reserve members returning from deployment in 
        Operation Iraqi Freedom or Operation Enduring Freedom (sec. 
        676)
      The Senate amendment contained a provision (sec. 682) 
that would require the Secretary of Defense to establish a 
working group to identify and assess the needs of members of 
the National Guard and Reserve returning from deployment in 
Operation Iraqi Freedom or Operation Enduring Freedom in the 
transition to civilian employment. The working group would be 
required to report its recommendations to Congress within 1 
year on the provision of assistance to employers and employment 
assistance organizations, and ways to improve collaboration 
between the public and private sector in order to ensure the 
successful transition of members into civilian employment.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the working group to assess the extent to which members of the 
National Guard and Reserve receive promotions, or experience 
termination of employment, upon their return from deployment in 
Operation Iraqi Freedom or Operation Enduring Freedom.
Audit of pay accounts of members of the Army evacuated from a combat 
        zone for inpatient care (sec. 677)
      The Senate amendment contained a provision (sec. 661) 
that would require the Secretary of the Army to conduct an 
audit of the pay accounts of each member of the Army wounded or 
injured in a combat zone who was evacuated from a theater of 
operations for inpatient care during the period beginning on 
May 1, 2005, and ending on April 30, 2006. The provision would 
also require the Secretary of the Army to submit a report to 
the congressional defense committees, no later than 120 days 
after the date of enactment of this Act, on the results of the 
audit. The provision would also require the Secretary of 
Defense to establish within the Department of Defense a call 
assistance center for resolution of military pay problems.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
requirement for establishment of a call assistance center in 
view of the availability of other means for members and their 
dependents to obtain assistance in resolving pay problems.
Report on eligibility and provision of assignment incentive pay (sec. 
        678)
      The House bill contained a provision (sec. 624) that 
would express the sense of Congress that the Secretary of the 
Army should correct a pay inequity in the provision of 
assignment incentive pay under section 307a of title 37, United 
States Code, to certain members of the Army National Guard and 
the Army Reserve serving on active duty in Afghanistan and 
Iraq. The provision would require a report by the Secretary of 
the Army, not later than 30 days after the date of enactment of 
this Act, specifying the number of members adversely affected 
by the disparate treatment of members who previously served 
under a call or order to active duty under section 12304 of 
title 10, United States Code, in determining eligibility for 
assignment incentive pay, and setting forth proposed remedies 
or courses of action.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the sense of Congress provision and extend the due date of the 
required Secretary of the Army report by 30 days.
Sense of Congress calling for payment to World War II veterans who 
        survived Bataan Death March (sec. 679)
      The House bill contained a provision (sec. 665) that 
would express the sense of Congress that there should be paid 
to Bataan Death March survivors or, if deceased, to their 
surviving spouses, an amount equaling $4 for each day of 
captivity during World War II, compounded annually at a 3 
percent annual rate of interest.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of Congress that an appropriate amount of 
compensation should be paid to Bataan Death March survivors or, 
if deceased, to their surviving spouses in recognition of their 
captivity.

                   Legislative Provisions Not Adopted

Authority to pay costs associated with delivery of motor vehicle to 
        storage location selected by member and subsequent removal of 
        vehicle
      The House bill contained a provision (sec. 631) that 
would amend section 2634 of title 10, United States Code, to 
authorize payment to military members for the costs of delivery 
and removal of privately-owned vehicles from storage locations 
chosen by the member.
      The Senate amendment contained no similar provision.
      The House recedes.
Transportation of additional motor vehicle of members on change of 
        permanent station to or from nonforeign areas outside the 
        continental United States
      The House bill contained a provision (sec. 632) that 
would amend section 2634 of title 10, United States Code, to 
authorize certain military members to ship two privately-owned 
vehicles during permanent change of station moves to nonforeign 
duty locations located outside the continental United States. 
Nonforeign duty locations would include Alaska, Hawaii, Puerto 
Rico, Guam, and other territories and possessions.
      The Senate amendment contained no similar provision.
      The House recedes.
Retroactive payment of additional death gratuity for certain members 
        not previously covered
      The House bill contained a provision (sec. 642) that 
would amend section 1478(d)(2) of title 10, United States Code, 
to retroactively extend the applicability of the enhanced death 
gratuity to survivors of military decedents who died on active 
duty between May 12, 2005, and August 31, 2005.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that this legislative change was 
previously enacted as section 1210 of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006 (Public Law 109-234).
Repeal of requirement of reduction of Survivor Benefit Plan survivor 
        annuities by dependency and indemnity compensation
      The Senate amendment contained a provision (sec. 642) 
that would amend sections 1450 and 1451 of title 10, United 
States Code, to repeal the requirement for reduction of 
annuities received under the Survivor Benefit Plan by the 
amount of dependency and indemnity compensation paid to certain 
beneficiaries under section 1311(a) of title 38, United States 
Code.
      The House bill contained no similar provision.
      The Senate recedes.
Effective date of paid-up coverage under Survivor Benefit Plan
      The Senate amendment contained a provision (sec. 643) 
that would amend section 1452(j) of title 10, United States 
Code, to change the effective date for paid-up coverage under 
the Survivor Benefit Plan from October 1, 2008, to October 1, 
2006.
      The House bill contained no similar provision.
      The Senate recedes.
Equity in computation of disability retired pay for reserve component 
        members wounded in action
      The House bill contained a provision (sec. 643) that 
would modify section 1208(b) of title 10, United States Code, 
to authorize calculation of the retired pay of a member of a 
reserve component using the member's total years of service in 
lieu of active-duty years of service when the member's 
retirement is based upon a disability that was incurred under 
circumstances that resulted in the award of the Purple Heart.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that a review should be conducted 
of the disability retirement benefits provided to members of 
the Reserve and National Guard, particularly with respect to 
combat-related disabilities adversely affecting the future 
earning potential of military members. The conferees are 
concerned that, particularly in the case of disabilities 
resulting in retirement for physical disability, which were 
incurred as a result of combat or combat-related training, the 
military compensation system must equitably treat all active 
and reserve component members. The conferees direct the 
Secretary of Defense to submit a report to the Committees on 
Armed Services of the Senate and the House of Representatives, 
not later than February 1, 2007, comparing the compensation of 
reserve and active-duty members and the feasibility of 
modifying existing laws controlling the calculation of 
disability retirement benefits to ensure equal treatment of 
active and reserve personnel under various circumstances, 
including combat operations.
Expansion of conditions for direct payment of divisible retired pay
      The Senate amendment included a provision (sec. 644) that 
would amend section 1408(d) of title 10, United States Code, to 
provide that direct payments of divisible retired pay by the 
Defense Finance and Accounting Service (DFAS) may be made in 
all cases in accordance with the terms of a court decree. The 
provision would not affect the eligibility of former spouses of 
military members for a portion of retired pay and would only 
enable DFAS to provide direct payment.
      The House bill contained no similar provision.
      The Senate recedes.
Authority for cost of living adjustments of retired pay treated as 
        divisible property
      The Senate amendment contained a provision (sec. 645) 
that would amend section 1408 of title 10, United States Code, 
to authorize payment of cost of living adjustments in 
connection with awards of retired pay stated in dollar amounts.
      The House bill contained no similar provision.
      The Senate recedes.
Notice and copy to members of court orders on payment of retired pay
      The Senate amendment contained a provision (sec. 646) 
that would amend section 1408 of title 10, United States Code, 
to allow a member to waive notice of an application for payment 
of retired pay and eliminate the requirement that a copy of the 
court order be sent to the member in every case.
      The House bill contained no similar provision.
      The Senate recedes.
Renaming of death gratuity payable for deaths of members of the Armed 
        Forces as fallen hero compensation
      The Senate amendment contained a provision (sec. 648) 
that would amend sections 1474 through 1480 and 1489 of title 
10, United States Code, to change the term death gratuity to 
fallen hero compensation.
      The House bill contained no similar provision.
      The Senate recedes.
Effective date of termination of phase-in of concurrent receipt for 
        veterans with service-connected disabilities rated as total by 
        virtue of unemployability
      The Senate amendment contained a provision (sec. 649) 
that would amend section 1414(a)(1) of title 10, United States 
Code, to provide that qualified retirees receiving veterans' 
disability compensation at the rate payable for a 100 percent 
disability by reason of a determination of individual 
unemployability would only be subject to phased-in 
implementation of authorization to receive both military 
retired pay and veterans' disability compensation for the 
period beginning on January 1, 2004, and ending on December 31, 
2004, vice September 30, 2009.
      The House bill contained no similar provision.
      The Senate recedes.
Commencement of receipt of non-regular service retired pay by members 
        of the Ready Reserve on active Federal status or active duty 
        for significant periods
      The Senate amendment contained a provision (sec. 653) 
that would amend section 12731 of title 10, United States Code, 
to provide that members of the Ready Reserve who have served on 
active duty or performed active service after September 11, 
2001, would be eligible to have their age for receipt of 
retired pay reduced by 3 months for each aggregate of 90 days 
of active duty or active service performed in any fiscal year. 
Qualifying service for purposes of this provision would be 
service on active duty pursuant to a call or order to active 
duty under a provision of law referred to in section 
101(a)(13)(B) of title 10, United States Code, or under section 
12301(d) of that title. Qualifying active service would be 
under a call to active service authorized by the President or 
Secretary of Defense under section 502(f) of title 32 for 
purposes of responding to a national emergency declared by the 
President or supported by Federal funds.
      The House bill contained no similar provision.
      The Senate recedes.
Use of nonappropriated funds to supplement or replace appropriated 
        funds for construction of facilities of exchange stores system 
        or other nonappropriated fund instrumentalities, military 
        lodging facilities, and community facilities
      The House bill contained a provision (sec. 653) that 
would authorize the Secretary of Defense to allocate 
nonappropriated funds to augment or replace appropriated 
funding of construction of military exchanges and lodging, as 
well as morale, welfare, and recreation and community 
facilities, after providing notice to Congress.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees acknowledge the use of nonappropriated 
funds by the Department of Defense for construction of certain 
child care, lodging and other facilities, yet believe that such 
use should be limited to extraordinary circumstances when 
appropriated funds are not available, and only following 
notification to Congress.
      The conferees direct the Secretary of Defense to submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives by February 1, 2007, a report which covers 
the following:
          (1) the history of the Department's use of 
        nonappropriated funds, during the period of October 1, 
        1995, through September 30, 2006, for construction of:
                  (a) facilities of the exchange stores system 
                and other revenue-generating facilities 
                operated by nonappropriated fund 
                instrumentalities of the Department for the 
                morale, welfare, and recreation of members of 
                the Armed Forces;
                  (b) facilities of other nonappropriated fund 
                instrumentalities of the Department for the 
                morale, welfare, and recreation of members of 
                the Armed Forces;
                  (c) military lodging facilities used to 
                provide temporary lodging to authorized members 
                of the Armed Forces, including temporary duty 
                lodging, permanent change of station lodging, 
                recreational lodging, and military treatment 
                facility lodging; and
                  (d) community facilities intended to 
                supplement mission activities, such as military 
                museums and service academy extra-curricular 
                activities, or to facilitate private 
                organizations or enterprises, such as financial 
                services, memorials, and thrift shop 
                facilities, on military installations;
          (2) the justification and rationale for utilization 
        of nonappropriated funds for any construction project 
        identified above; and
          (3) recommendations for changes in legislation, if 
        any, and specific criteria that would clarify any 
        instance in which nonappropriated funds would be 
        appropriately allocated to a project that directly 
        supports military requirements and would otherwise be 
        funded using authorized appropriations.
Pilot program on Troops to Nurse Teachers
      The Senate amendment contained a provision (sec. 662) 
that would require the Secretary of Defense, in coordination 
with the Secretary of Health and Human Services and the 
Secretary of Education, to conduct a pilot program to assess 
the feasibility and potential benefits of a program to provide 
scholarships and assist certain nurse corps officers in 
achieving necessary qualifications to become nurse educators 
and help alleviate the national shortage of nurse educators and 
registered nurses.
      The House bill contained no similar provision.
      The Senate recedes.
Short title
      The Senate amendment contained a provision (sec. 681) 
that would establish a short title, the ``Heroes at Home Act of 
2006.''
      The House bill contained no similar provision.
      The Senate recedes.
Office for employers and employment assistance organizations
      The Senate amendment contained a provision (sec. 683) 
that would require the Secretary of Defense to designate an 
office within the Department to assist employers and 
employment-related organizations in facilitating the transition 
of National Guard and Reserve members returning from Operation 
Iraqi Freedom and Operation Enduring Freedom to civilian 
employment.
      The House bill contained no similar provision.
      The Senate recedes.
Grants on assistance in community-based settings for members of the 
        National Guard and reserve and their families after deployment 
        in Operation Iraqi Freedom and Operation Enduring Freedom
      The Senate amendment contained a provision (sec. 685) 
that would authorize the Secretary of Defense to award grants 
to community-based organizations for the provision of 
assistance to members of the National Guard and Reserve who 
serve in Operation Iraqi Freedom and Operation Enduring 
Freedom, and their families, following return from deployment. 
The grants would support services to improve the reuniting of 
families, and education and awareness of health and mental 
health needs, including post traumatic stress disorder and 
traumatic brain injury.
      The House bill contained no similar provision.
      The Senate recedes.

                   TITLE VII--HEALTH CARE PROVISIONS

                     Legislative Provisions Adopted

                Subtitle A--TRICARE Program Improvements

TRICARE coverage for forensic examination following sexual assault or 
        domestic violence (sec. 701)
      The House bill contained a provision (sec. 701) that 
would authorize coverage under TRICARE for forensic 
examinations following a sexual assault or domestic violence.
      The Senate amendment contained an identical provision 
(sec. 704).
      The conference agreement includes this provision.
Authorization of anesthesia and other costs for dental care for 
        children and certain other patients (sec. 702)
      The House bill contained a provision (sec. 702) that 
would authorize coverage under TRICARE for anesthesia and 
institutional costs for dental treatment for beneficiaries with 
developmental, mental or physical disabilities, and children 
under the age of five.
      The Senate amendment contained a similar provision (sec. 
703).
      The Senate recedes.
Improvements to descriptions of cancer screening for women (sec. 703)
      The House bill contained a provision (sec. 703) that 
would modify the terminology in section 1074d of title 10, 
United States Code, which authorizes certain screening tests 
for breast and cervical cancers.
      The Senate amendment contained a similar provision (sec. 
701).
      The House recedes with a technical amendment.
Prohibition on increases in certain health care costs for members of 
        the uniformed services (sec. 704)
      The House bill contained a provision (sec. 704) that 
would prohibit the Secretary of Defense from increasing any 
premiums, deductibles, copayment, or other charges under 
Department of Defense contracts for medical care for retirees, 
dependents, and survivors between April 1, 2006, and December 
31, 2007. The provision would prohibit any increase during the 
same period of time in civilian inpatient hospital charges, as 
well as in enrollment premiums for each of the 3 tiers of 
health care coverage under the TRICARE program for members of 
the Selected Reserve.
      The Senate amendment contained similar provisions (secs. 
705-706). Section 705 would prohibit any increase in TRICARE 
Prime enrollment fees during fiscal year 2007. Section 706 
would limit any increase in the amount of premiums for the 
TRICARE program for members of the Selected Reserve to 2.2 
percent in fiscal year 2007.
      The Senate recedes with an amendment that would prohibit 
an increase in such fees, copayments, and premiums between 
April 2, 2006, and September 30, 2007.
Demonstration project on coverage of selected over-the-counter drugs 
        under the pharmacy benefits program (sec. 705)
      The House bill contained a provision (sec. 706) that 
would require the Secretary of Defense to conduct a 
demonstration project to allow certain over-the-counter drugs 
to be included on the uniform formulary of the Department of 
Defense pharmacy program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that the evaluation of the demonstration project address the 
cost and benefits of providing over-the-counter drugs under the 
Department of Defense pharmacy program, the clinical 
effectiveness of providing such drugs, and customer 
satisfaction with the demonstration project.
      The conferees expect that in any instance in which an 
over-the-counter medication is dispensed, as part of the 
demonstration project required by this section, notification 
will be provided to the patient in a manner similar to that 
required by current policy when a generic agent is substituted 
for a brand name product.
Expanded eligibility of Selected Reserve members under TRICARE program 
        (sec. 706)
      The House bill contained a provision (sec. 709) that 
would expand eligibility for coverage under the TRICARE program 
to all members of the Selected Reserve and their families while 
in a non-active duty status based on payment of an amount equal 
to 28 percent of a monthly premium established by the Secretary 
of Defense. The provision would take effect not later than 
October 1, 2007. It would not apply to members who are eligible 
for health insurance under chapter 89 of title V, United States 
Code. The provision would repeal the three-tiered cost sharing 
program for members of the Selected Reserve established in 
section 702 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163).
      The Senate amendment contained a provision (sec. 708) 
that would enhance the existing tiered benefit structure for 
all members of the Selected Reserve by adding members employed 
by businesses with 20 or fewer employees to those eligible for 
coverage based on payment of 50 percent of a monthly premium 
established by the Secretary. The Senate amendment would also 
reduce from 85 percent to 75 percent the portion of a monthly 
premium paid by members who, though eligible for employer-
provided insurance, chose primary coverage under TRICARE.
      The Senate recedes.
Relationship between the TRICARE program and employer-sponsored group 
        health care plans (sec. 707)
      The House bill contained a provision (sec. 710) that 
would extend to TRICARE the same rule that applies to the 
Medicare program making it unlawful for an employer or other 
entity to offer any financial or other incentive for a retired 
TRICARE beneficiary not to enroll under an employer-provided 
group health plan. The provision would also authorize the 
Secretary of Defense to discontinue a relationship with a 
Department of Defense contractor for repeated violations of 
this provision. The provision would take effect on January 1, 
2008.
      The Senate amendment contained a similar provision (sec. 
722).
      The Senate recedes with an amendment that would clarify 
that TRICARE eligible employees have the opportunity to elect 
to participate in an employer group health plan in the same 
manner as other similarly situated employees, and that the 
provision would not be construed to effect, modify, or 
terminate the eligibility of a TRICARE eligible employee or 
spouse for their earned military health care entitlement 
authorized under chapter 55, title 10, United States Code. The 
amendment would also delete the authority for the Secretary to 
terminate Department contractor relationships based on repeated 
violations of this provision because the Federal Acquisition 
Regulation already specifies the circumstances under which 
repeated violations of law may be a basis for suspension or 
debarment of a Department contractor.
      The conferees are aware of concerns that have been 
expressed regarding the treatment of cafeteria plans authorized 
under section 125 of the Internal Revenue Code and non-TRICARE 
exclusive employer-provided health care incentives under this 
provision. The conferees direct the Secretary to report, not 
later than April 1, 2007, to the Committees on Armed Services 
of the Senate and the House of Representatives on the treatment 
of cafeteria plans and non-TRICARE exclusive employer-provided 
health care incentives under the Department's implementation of 
this provision. This report shall assess the treatment of such 
plans under the Medicare Secondary Payer statute and 
regulations and such incentives, and include any 
recommendations the Secretary finds appropriate to ensure fair 
treatment of all TRICARE beneficiaries under this provision.
Temporary prohibition on increase in copayments under retail pharmacy 
        system of pharmacy benefits program (sec. 708)
      The Senate amendment contained a provision (sec. 707) 
that would prohibit any increase in the cost sharing 
requirements for pharmaceuticals available through the 
Department of Defense retail pharmacy program during fiscal 
year 2007.
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct the 
Secretary of Defense to transfer $186.0 million from the 
unobligated balances of the National Defense Stockpile 
Transaction Fund to the Department of Defense Medicare-Eligible 
Retiree Health Care Fund.

                    Subtitle B--Studies and Reports

Department of Defense task force on the future of military health care 
        (sec. 711)
      The House bill contained a provision (sec. 711) that 
would require the Secretary of Defense to establish a task 
force to conduct a comprehensive assessment of the future of 
military health care. The task force would be required to 
develop recommendations on actions that the Department of 
Defense would have to take to improve and sustain the military 
health care system, and to develop a plan based on those 
recommendations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would modify 
the required expertise for membership on the task force to 
include health care information technology and women's health. 
The amendment would also add the senior medical advisor to the 
Chairman of the Joint Chiefs of Staff and the Director of 
Defense Procurement and Acquisition Policy as members. The 
amendment would require the task force to examine the costs and 
benefits of a universal enrollment system for all TRICARE 
users. The amendment would eliminate the requirement for the 
task force to develop a plan based on its recommendations, and 
require submission of an interim report to Congress by May 31, 
2007.
Study relating to chiropractic health care services (sec. 712)
      The House bill contained a provision (sec. 712) that 
would require the Secretary of Defense to study the cost, 
feasibility, and potential benefit of providing chiropractic 
care services for active-duty members and their families, 
members of the Selected Reserve and their families, and 
retirees and their families. The provision would also require 
the Secretary to develop a plan for providing chiropractic 
services to all members of the uniformed services, as required 
by 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 with an amendment that would require 
the Secretary to conduct a study on providing chiropractic care 
to all members and former members of the Armed Forces and their 
families, and to submit the study to Congress by March 31, 
2008.
      The conferees expect the study required in this section 
to consider any relevant findings of the Navy medical research 
chiropractic treatment outcomes study required by the Senate 
Report accompanying S. 2766 (S. Rept. 109-254) of the National 
Defense Authorization Act for Fiscal Year 2007.
Comptroller General audits of Department of Defense health care costs 
        and cost-saving measures (sec. 713)
      The House bill contained a provision (sec. 713) that 
would require the Comptroller General to conduct a study, in 
conjunction with the Congressional Budget Office, of the 
projected savings to the Defense Health Program included in the 
President's Budget Request for fiscal year 2007. The study 
would include an evaluation of the rationale for calculations 
made by the Department of Defense for health care costs borne 
by beneficiaries in 1995 and 2005, as well as the rationale for 
savings projections, a review of the annual rates of medical 
inflation in the Department and other health care programs, and 
an assessment of the rationale for proposed beneficiary cost 
share increases.
      The Senate amendment contained a similar provision (sec. 
744) that would require an audit of the costs of administration 
of the TRICARE program and the program for members of the 
Selected Reserve known as TRICARE Reserve Select.
      The House recedes with an amendment that would require 
that the audit be conducted in cooperation with the Director of 
the Congressional Budget Office, and that the Comptroller 
General's findings be provided to the congressional defense 
committees not later than June 1, 2007.
Transfer of custody of the Air Force Health Study assets to Medical 
        Follow-up Agency (sec. 714)
      The House bill contained a provision (sec. 714) that 
would require the Secretary of the Air Force to notify and 
contact participants of the Air Force Health Study (commonly 
known as the Ranch Hand Study) to obtain written consent to 
transfer the individual's data and biological specimens to the 
Institute of Medicine of the National Academy of Sciences for 
maintenance and further study.
      The Senate amendment contained a similar provision (sec. 
762).
      The Senate recedes.
Study on allowing dependents of activated members of reserve components 
        to retain civilian health care coverage (sec. 715)
      The House bill contained a provision (sec. 715) that 
would require the Secretary of Defense to conduct a study on 
the feasibility of allowing family members of reservists who 
are mobilized to continue health care coverage under a civilian 
health care program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
study to members of the reserve components mobilized in support 
of a contingency operation.
Study of health effects of exposure to depleted uranium (sec. 716)
      The House bill contained a provision (sec. 716) that 
would require the Secretary of Defense, in consultation with 
the Secretary of Veterans Affairs and the Secretary of the 
Department of Health and Human Services, to conduct a study on 
the health effects of exposure to depleted uranium on exposed 
soldiers and on the children of exposed soldiers.
      The Senate amendment contained a similar provision (sec. 
746).
      The House recedes.
Report and plan on services to military dependent children with autism 
        (sec. 717)
      The Senate amendment contained a provision (sec. 734) 
that would require the Secretary of Defense to promulgate 
regulations on requirements for the education, training, and 
supervision of individuals providing special education services 
to certain military dependent children that are in addition to 
any other requirements applicable to Board Certified Behavior 
Analysts or Board Certified Associate Behavior Analysts. The 
provision would also require the Secretary to establish metrics 
to identify and measure the availability and distribution of 
individuals of various expertise in Applied Behavioral 
Analysis.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to develop a plan to provide services to military 
dependent children with autism, pursuant to the authority for 
extended health care services in section 1079(d) and (e) of 
title 10, United States Code, and to provide that plan within 
30 days of its completion to the Committees on Armed Services 
of the Senate and the House of Representatives. The amendment 
would require that procedures be established to ensure that 
such services are in addition to other publicly provided 
services for military dependent children with autism.
Comptroller General study on Department of Defense pharmacy benefits 
        program (sec. 718)
      The Senate amendment contained a provision (sec. 743) 
that would require a study by the Comptroller General on the 
Department of Defense pharmacy benefits program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
requirement that the Pharmacy and Therapeutics Committee and 
Beneficiary Advisory Panel, required by section 1074g of title 
10, United States Code, review the results of the report and 
make certain recommendations to the Secretary of Defense.
Review of Department of Defense medical quality improvement program 
        (sec. 719)
      The Senate amendment contained a provision (sec. 745) 
that would require the Secretary of Defense to contract for an 
independent review of the Department's medical quality 
improvement program, and to compare the Department's program to 
other public and private health care systems and organizations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include an 
additional requirement for the Secretary to report to Congress 
within 180 days of enactment of this Act on actions taken in 
response to the recommendations of the July 2001 report of the 
Department of Defense Healthcare Quality Initiatives Review 
Panel.
Report on distribution of hemostatic agents for use in the field (sec. 
        720)
      The Senate amendment contained a provision (sec. 1414) 
that would authorize $15.0 million in Operation and 
Maintenance, Army and $5.0 million in Operation and 
Maintenance, Marine Corps for hemostatic agents, including 
blood-clotting bandages. The provision would also express a 
sense of Congress that every member of the Armed Forces 
deployed in a combat zone should carry life saving resources. 
The provision would also require the Secretary of Defense to 
submit a report regarding the distribution of hemostatic agents 
to members of the Armed Forces serving in Iraq and Afghanistan.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
required report, delete the authorization for funding, and 
delete the sense of Congress.
      The conference outcome is reflected in the tables of this 
report in Operation and Maintenance, Army and Operation and 
Maintenance, Marine Corps.
Longitudinal study on traumatic brain injury incurred by members of the 
        Armed Forces in Operation Iraqi Freedom and Operation Enduring 
        Freedom (sec. 721)
      The Senate amendment contained a provision (sec. 686) 
that would require the Secretary of Defense, in consultation 
with the Secretary of Veterans Affairs, to conduct a 
longitudinal study on the effects of traumatic brain injury 
incurred by members of the Armed Forces serving in Operation 
Iraqi Freedom and Operation Enduring Freedom. The study would 
address the long-term physical and mental affects of such 
injuries, the resulting health care needs, and availability of 
long-term care services.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include in 
the study an analysis of the effects on families of those who 
have suffered traumatic brain injury.

           Subtitle C--Planning, Programming, and Management

Standardization of claims processing under TRICARE program and Medicare 
        program (sec. 731)
      The Senate amendment contained a provision (sec. 725) 
that would require that by October 1, 2007, certain TRICARE 
claims processing requirements be identical to Medicare claims 
processing requirements. The provision would also authorize 
modification to the processes for collection of health care 
payments from third parties, and require an annual report to 
Congress justifying any instance in which the Department of 
Defense continues to have a unique claims processing 
requirement.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that identical claims processing requirements go into effect 
with the beginning of the next option period for managed care 
support contracts. The amendment would also require a report to 
Congress on the policies and directives concerning collection 
of health care payments owed from third parties, an estimate of 
the outstanding amounts, and a plan of action to streamline and 
accelerate the collections or recoupments of those funds.
Requirements for support of military treatment facilities by civilian 
        contractors under TRICARE (sec. 732)
      The Senate amendment contained a provision (sec. 726) 
that would require each TRICARE Regional Director to develop an 
annual comprehensive plan for support of military treatment 
facilities in the region provided by contracted civilian health 
care and administrative personnel. The provision would require 
approval by the TRICARE Regional Director of each contract 
within the region, and require consistent standards of quality 
within the region. The provision would also require removal of 
financial disincentives for military treatment facilities and 
civilian contractors to initiate and sustain cost-effective 
health care staffing support agreements.
      The House bill contained no similar provision.
      The House recedes with an amendment that would remove the 
requirement that the Regional Director approve each support 
contract within the region, and require the Secretary of 
Defense to establish additional quality and performance 
standards for health staffing support contractors.
Standards and tracking of access to health care services for wounded, 
        injured, or ill servicemembers returning to the United States 
        from a combat zone (sec. 733)
      The Senate amendment contained a provision (sec. 727) 
that would require the Secretary of Defense to prescribe 
uniform standards for access to health care services for 
wounded or injured servicemembers. The provision would require 
that needed health care services be met through whatever means 
possible, including through referral to civilian health care 
providers if necessary, and that the Secretary establish 
mechanisms for tracking the performance of the military health 
care system in meeting those health care access standards.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to report to Congress on uniform 
standards for the access of wounded, injured, or ill members of 
the armed forces to health care services in the United States 
following return from a combat zone. The House amendment would 
also clarify that the tracking system required by this section 
be a uniform tracking mechanism.
      The conferees continue to learn of instances in which 
returning members of the armed forces have been delayed in 
receiving needed health, mental health, and rehabilitative 
services, both in military hospitals and in medical holdover 
status. The conferees believe that a wounded, injured, or ill 
soldier, airman, sailor, or marine deserve the highest priority 
for care. Should sufficient resources in the military hospital 
system not be available, civilian resources must be made 
available without delay.
Disease and chronic care management (sec. 734)
      The Senate amendment contained a provision (sec. 728) 
that would require the Secretary of Defense to establish and 
implement throughout the military health care system a 
comprehensive program on disease and chronic care management. 
The program would include the most common chronic diseases 
experienced by military beneficiaries and their families, and 
would meet nationally recognized accreditation standards. The 
Secretary would be required to ensure continuous and adequate 
funding of the disease and chronic care management program, and 
eliminate, to the extent practicable, any financial 
disincentives to sustained investment by military hospitals and 
health care services contractors in disease management.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to design and develop a fully integrated program 
on disease and chronic care management, and to require the 
Secretary, in coordination with the military departments, to 
develop an implementation plan by February 1, 2008.
Additional elements of assessment of Department of Defense task force 
        on mental health relating to mental health of members who were 
        deployed in Operation Iraqi Freedom and Operation Enduring 
        Freedom (sec. 735)
      The Senate amendment contained a provision (sec. 684) 
that would add to the mandate of the Department of Defense Task 
Force on Mental Health a requirement to assess the mental 
health needs of members of the National Guard and Reserve who 
are deployed in support of Operation Iraqi Freedom and 
Operation Enduring Freedom. The assessment would include 
identification of mental health conditions and disorders, 
including Post Traumatic Stress Disorder, and recommendations 
on improving mental health services to members of the National 
Guard and Reserve who undergo multiple deployments. The Senate 
amendment also contained a provision (sec. 730) that would 
require the Secretary of Defense to expand the Mental Health 
Self-Assessment Program to ensure the continuous availability 
of the program to members and former members of the Armed 
Forces, as well as to the dependent children of members who 
have been deployed or mobilized.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would merge 
these provisions under this section. The amendment would 
require the Task Force on Mental Health to undertake an 
assessment of the mental health needs of all members, active 
and reserve, who were deployed in support of Operation Iraqi 
Freedom and Operation Enduring Freedom. The amendment would 
also require an assessment by the Task Force of the current 
Mental Health Self-Assessment Program within the Department of 
Defense.
      The conferees urge the Task Force members to take 
cognizance of the existing requirements in section 723 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163) for examination of the long-term follow-up and 
access to care for mental health needs of members of the 
Reserve components as they discharge their responsibilities 
under that section to examine matters relating to the mental 
health of members of the Armed Forces.
Additional authorized option periods for extension of current contracts 
        under TRICARE (sec. 736)
      The Senate amendment contained a provision (sec. 731) 
that would authorize the Secretary of Defense to extend TRICARE 
managed care support contracts for up to 2 years. The provision 
would authorize the Secretary to act only after review by 
Congress of the minimum performance standards required in order 
to be eligible for an extension, including cost and beneficiary 
satisfaction, as well as the justification for any extension. 
The provision would also require the Secretary to report to 
Congress on future contracting mechanisms under consideration 
for TRICARE support, including an assessment of a contract for 
a single term of 5 years, with a single optional period of 
extension of an additional 5 years, if performance by the 
contractor is rated ``excellent.''
      The House bill contained no similar provision.
      The House recedes with an amendment that would require a 
cost-benefit analysis to be conducted as part of the 
justification for such extension.
Military vaccination matters (sec. 737)
      The Senate amendment contained a provision (sec. 732) 
that would add a requirement to the Comptroller General study 
on Department of Defense Vaccine Healthcare Centers required by 
the National Defense Authorization Act for Fiscal Year 2006 
(Public Law 109-163) to examine the feasibility of placing the 
centers under the direct control of the Under Secretary of 
Defense for Personnel and Readiness. The provision would also 
require the Secretary of Defense to maintain a center of 
excellence on medical needs resulting from mandatory military 
vaccinations, and would limit the ability of the Secretary of 
Defense to downsize or otherwise restructure the Vaccine 
Healthcare Centers.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
the Secretary of Defense from downsizing or restructuring the 
Vaccine Healthcare Centers during fiscal year 2007, and require 
that funding for the centers be provided by each military 
department.
Enhanced mental health screening services for members of the Armed 
        Forces (sec. 738)
      The Senate amendment contained a provision (sec. 733) 
that would establish new requirements for each predeployment 
mental health assessment of a member of the Armed Forces 
relating to the presence and treatment of a mental health 
condition or disorder, including any use of psychotropic 
medications. The provision would also prescribe procedures for 
referral for follow-up evaluation if needed, and would require 
the Secretary of Defense to establish minimum mental health 
standards for deployment to a combat operation or contingency 
operation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
additional elements for predeployment and postdeployment 
medical examinations, including an assessment of traumatic 
brain injury. The amendment would establish criteria for 
referral for follow-up care, and would require the Secretary to 
develop guidelines concerning the deployability and treatment 
of members of the Armed Forces diagnosed with a severe mental 
illness or post traumatic stress disorder. The amendment would 
expand requirements for the quality assurance program for 
medical tracking for members deployed overseas to include the 
following new elements:
      (1) the types and training of healthcare providers 
conducting postdeployment health assessments;
      (2) the effectiveness of tracking mechanisms in ensuring 
that the members who receive referrals for further evaluation 
for mental health care receive those services; and
      (3) programs to monitor the mental health of members who 
have a mental health condition following deployment.

                       Subtitle D--Other Matters

Pilot projects on early diagnosis and treatment of post traumatic 
        stress disorder and other mental health conditions (sec. 741)
      The Senate amendment contained a provision (sec. 741) 
that would require the Secretary of Defense to conduct a 
minimum of three pilot projects during fiscal year 2007 to 
evaluate the efficacy of approaches to improving the capability 
of the military and civilian health care systems to provide 
early diagnosis and treatment of post traumatic stress disorder 
and other mental health conditions.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the requirements for the three pilots, as follows:
      (1) one of the pilot projects would be designed to 
evaluate effective diagnostic and treatment approaches by 
primary care providers in the military health care system;
      (2) one of the projects would be focused on members of 
the National Guard or reserves located more than 40 miles from 
a military medical facility; and
      (3) one of the projects would be designed to provide 
outreach to family members on post traumatic stress disorder 
and other mental health conditions.
Requirement to certify and report on conversion of military medical and 
        dental positions to civilian medical and dental positions (sec. 
        742)
      The Senate amendment contained a provision (sec. 761) 
that would extend for fiscal year 2007 and future years a 
requirement in section 744 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) for 
the Secretary of Defense to certify that conversion of military 
medical positions to civilian or contractor positions does not 
increase the cost, or erode access to or the quality of 
military health care.
      The House bill contained no similar provision.
      The House recedes with an amendment that would expand the 
requirements for the report to Congress to accompany the 
certification. The additional requirements include:
      (1) the number and grade of positions planned for 
conversion;
      (2) an analysis by affected area of the impact of the 
conversion on the direct care and purchased care systems;
      (3) the extent to which planned conversions would affect 
recruiting and retention of military medical and dental 
personnel;
      (4) a comparison of the full costs for the military 
medical and dental positions planned for conversion with the 
full costs for civilian positions;
      (5) documentation that the converted positions are in 
excess of military medical and dental readiness requirements; 
and
      (6) identification of each position scheduled to be 
converted in the subsequent fiscal year.
      The amendment would also include several additional 
requirements with respect to the conversion of medical and 
dental provisions in fiscal years 2006 through 2008.
Three-year extension of joint incentives program on sharing of health 
        care resources by the Department of Defense and Department of 
        Veterans Affairs (sec. 743)
      The Senate amendment contained a provision (sec. 923) 
that would extend the authorization for the Department of 
Defense and Department of Veterans Affairs joint incentives 
program for the sharing of health care resources until 
September 30, 2010.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Training curricula for family caregivers on care and assistance for 
        members and former members of the Armed Forces with traumatic 
        brain injury (sec. 744)
      The Senate amendment contained a provision (sec. 687) 
that would require the Secretary of Defense to establish, in 
consultation with the Secretary of Veterans Affairs, a 
Traumatic Brain Injury Family Caregiver Panel. The purpose of 
the panel would be to develop training curricula to be used in 
training family members who provide care to members and former 
members of the Armed Forces with traumatic brain injury 
incurred in Operation Iraqi Freedom and Operation Enduring 
Freedom.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the panel also include family members of members of the 
Armed Forces with traumatic brain injury.
      The conferees intend the Department of Defense to utilize 
for this purpose up to $1.0 million of the funds allocated for 
its participation in the Department of Defense and Department 
of Veterans Joint Incentives Program, authorized elsewhere in 
this report.
Recognition of Representative Lane Evans upon his retirement from the 
        House of Representatives (sec. 745)
      The conferees agree to include a provision that would 
recognize Representative Lane Evans (D-IL) on the occasion of 
his retirement from the House of Representatives.

                   Legislative Provisions Not Adopted

Services of mental health counselors
      The House bill contained a provision (sec. 705) that 
would allow mental health counselors to be reimbursed for 
services provided to TRICARE beneficiaries without prior 
physician referral or supervision. The provision would also 
allow mental health counselors to enter into personal services 
contracts with the Department of Defense, and would require 
that such counselors meet licensure or certification 
requirements for a health care professional as required by law.
      The Senate amendment contained no similar provision.
      The House recedes.
Requirement to reimburse certain travel expenses of certain 
        beneficiaries covered by TRICARE for Life
      The House bill contained a provision (sec. 707) that 
would require the Secretary of Defense to reimburse expenses 
incurred by a TRICARE for Life beneficiary for travel to a 
military treatment facility for up to three follow-up medical 
appointments if adequate treatment cannot be obtained within 
100 miles of the residence of the beneficiary.
      The Senate amendment contained no similar provision.
      The House recedes.
Inflation adjustment of differential payments to children's hospitals 
        participating in TRICARE program
      The House bill contained a provision (sec. 708) that 
would require the Secretary of Defense to establish an annual 
inflationary adjustment for the TRICARE children's hospital 
differential payment rate beginning in fiscal year 2007.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are disappointed that the Comptroller 
General study required by section 734 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) has 
not been completed. The conferees intend that the study 
required by that section will inform future legislative and 
policy changes regarding appropriate adjustment of differential 
payments to children's hospitals participating in the TRICARE 
program.
Costs of incentive payments to employees for TRICARE enrollment made 
        unallowable for contractors
      The House bill contained a provision (sec. 721) that 
would establish as unallowable the contract costs that result 
when Department of Defense contractors provide a financial 
incentive for a TRICARE-eligible employee to use TRICARE in 
lieu of their employer-provided health care coverage.
      The Senate amendment contained no similar provision.
      The House recedes.
Treatment of TRICARE retail pharmacy network under Federal procurement 
        of pharmaceuticals
      The Senate amendment contained a provision (sec. 721) 
that would clarify that the TRICARE retail pharmacy network is 
covered by the Federal pricing limits applicable to covered 
drugs under section 8126 of title 38, United States Code.
      The House bill contained no similar amendment.
      The Senate recedes.
      The conferees concluded that there is no need for 
additional legislation at this time because prescriptions 
dispensed by the Department of Defense Retail Pharmacy Program 
qualify for discounted drug prices under section 8126.
Enrollment in the TRICARE program
      The Senate amendment contained a provision (sec. 723) 
that would require the Secretary of Defense to establish a 
system of enrollment for all beneficiaries who obtain health 
care services from the military health care system. The 
provision would authorize the collection of a one-time 
administrative fee as a condition for certain beneficiaries to 
receive services under the Standard option of TRICARE. The 
provision would also require the Secretary to conduct outreach 
to all beneficiaries and provide health risk assessments.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that the authority for a health care 
enrollment system for military health care users is codified in 
section 1099, title 10, United States Code. The conferees 
recognize that beneficiary enrollment is a common feature of 
public and private health insurance and entitlement programs 
and may be necessary to ensure the most efficient delivery of 
health care services. Therefore, the conferees direct the 
Secretary to submit a report to the Committees on Armed 
Services of the Senate and the House of Representatives by 
February 1, 2007 on the advantages and disadvantages of an 
enrollment requirement for the TRICARE Standard option. The 
conferees further direct the Secretary to submit the required 
report for consideration by the Department of Defense Task 
Force on the Future of Military Health Care, which is 
authorized elsewhere in this report. The conferees note that an 
examination by the Task Force of the requirement for universal 
enrollment is also required elsewhere in this report.
Incentive payments for the provision of services under the TRICARE 
        program in medically underserved areas
      The Senate amendment contained a provision (sec. 724) 
that would require the Secretary of Defense to provide 
incentive payments for physicians who provide services to 
TRICARE eligible beneficiaries in medically underserved areas 
designated by the Secretary of Health and Human Services as 
primary care or specialist care scarcity locations.
      The House bill contained no similar provision.
      The Senate recedes.
Post deployment health assessments for members of the Armed Forces 
        returning from deployment in support of a contingency operation
      The Senate amendment contained a provision (sec. 729) 
that would require that a health assessment, including 
traumatic brain injury, be conducted on each member of the 
Armed Forces returning from deployment by a qualified health 
care provider. The provision would also require the Secretary 
of Defense to establish criteria for assessments of mental 
health and traumatic brain injury, including criteria for 
referrals for further evaluation.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference agreement reflects the inclusion of 
certain aspects of this provision in the requirement for 
enhanced mental health screening and services for members of 
the Armed Forces, authorized elsewhere in this report.
TRICARE pharmacy program cost-share requirements
      The House bill contained a provision (sec. 731) that 
would limit the amount of beneficiary cost sharing for generic 
and formulary agents in the TRICARE national mail-order 
pharmacy program to no more than the cost sharing for those 
agents in military hospitals and clinics. The provision would 
also establish cost-sharing requirements for the TRICARE retail 
pharmacy program as follows: $6.00 for generic agents; $16.00 
for formulary agents; and $22.00 for nonformulary agents.
      The Senate amendment contained a provision (sec. 702) 
that would require beneficiaries to use the TRICARE national 
mail-order program for refill of most long-term maintenance 
medications, unless waived by the Secretary of Defense based on 
clinical need, and eliminate cost sharing for most drugs 
obtained from the TRICARE national mail-order program.
      The conference agreement does not include these 
provisions.
      The conferees expect the Assistant Secretary of Defense 
(Health Affairs) to manage the TRICARE pharmacy benefit in 
accordance with existing authorities in section 1074g of title 
10, United States Code, in a manner using a full menu of 
clinical quality and utilization management tools to lower drug 
costs and improve quality, including the TRICARE national mail-
order program, consistent with state-of-the-art pharmacy 
benefit management practices.
      The conferees expect that the Department of Defense will 
proceed, under current authority, to eliminate co-payments for 
generic drugs dispensed through the TRICARE national mail-order 
program, as a minimum; and, in addition, expect the Assistant 
Secretary to move toward providing a broad range of incentives 
to increase the use of the TRICARE national mail-order program. 
In developing measures to implement pharmacy incentives, the 
Assistant Secretary shall consult broadly and fully with 
constituent and beneficiary groups and other interested 
parties.
Annual reports on certain medical malpractice cases
      The Senate amendment contained a provision (sec. 742) 
that would require each Secretary of a military department to 
report annually to the Secretary of Defense on certain cases 
involving allegations of medical malpractice for military 
beneficiaries. The provision would also require the Secretary 
of Defense to provide annual reports to the congressional 
defense committees.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that a report and an independent 
review of medical quality improvement in the military health 
care system is required elsewhere in this report.

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

                     Legislative Provisions Adopted

 Subtitle A--Provisions Relating to Major Defense Acquisition Programs

Requirements management certification training program (sec. 801)
      The House bill contained a provision (sec. 801) that 
would require the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, in consultation with the Defense 
Acquisition University, to develop a training program to 
certify civilian and military personnel with responsibility for 
developing requirements for major defense acquisition programs.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Under Secretary to establish the competency requirements 
for personnel undergoing requirements management training, and 
require that all personnel with responsibility for developing 
such requirements receive certification training by September 
30, 2008.
      The conferees believe that the training program 
established in accordance with this provision should address:
      (1) the interrelationship between the requirements, 
budget, and acquisition processes;
      (2) the importance of developing requirements that 
facilitate joint operations;
      (3) the need to ensure that requirements are developed 
early in a program and the adverse effect of introducing new 
requirements after the commencement of system development and 
demonstration;
      (4) the linkage between requirements and capability 
shortfalls identified by combatant commanders;
      (5) the need for sound analysis of alternatives, 
realistic technical assessments based on technology readiness 
levels, and consultation with production engineers on the cost, 
schedule, and technical feasibility of requirements;
      (6) the need for engineering feasibility assessments that 
weigh the technology readiness, integration, cost, and schedule 
impacts of proposed changes to requirements;
      (7) the importance of developing requirements that are 
technologically mature, feasible, and achievable; and
      (8) the importance of stable requirements to provide the 
baseline for successful program execution.
Additional requirements relating to technical data rights (sec. 802)
      The House bill contained a provision (sec. 802) that 
would require the acquisition of full data rights necessary to 
support competition for contracts for sustainment of each major 
weapon system that is developed with federal or private funds. 
The provision would also require that any contract for a major 
system include options for acquiring, at any point during the 
life cycle of the system, major elements of technical data not 
acquired at the time of the initial contract award.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics to require program managers to assess long-term 
technical data needs and establish corresponding acquisition 
strategies to ensure availability of technical data rights for 
major weapon system life cycle sustainment. The amendment would 
also modify title 10 of the United States Code to distinguish 
between commercial items and major weapon systems, subsystems, 
and components of major weapon systems (regardless of whether 
they may be characterized as commercial or non-commercial). In 
the case of a challenge made to a claim that the latter group 
of systems or components was developed exclusively at private 
expense, the burden of proof would be on the contractor or 
subcontractor.
Study and report on revisions to Selected Acquisition Report 
        requirements (sec. 803)
      The House bill contained a provision (sec. 803) that 
would require the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, in coordination with the service 
acquisition executives of each military department, to conduct 
a study on revisions to requirements related to Selected 
Acquisition Reports, as set forth in section 2432 of title 10, 
United States Code.
      The Senate provision contained no similar provision.
      The Senate recedes with a clarifying amendment.
Biannual updates on implementation of acquisition reform in the 
        Department of Defense (sec. 804)
      The House bill contained a provision (sec. 804) that 
would require the Secretary of Defense to submit quarterly 
reports to the Committees on Armed Services of the Senate and 
the House of Representatives on the implementation of plans to 
reform the defense acquisition system.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
the reporting requirement to a biannual submission and make 
other clarifying changes.
Additional certification requirements for major defense acquisition 
        programs before proceeding to Milestone B (sec. 805)
      The House bill contained a provision (sec. 806) that 
would require certification that market research has been 
conducted prior to technology development to reduce duplication 
of existing technology and products.
      The Senate amendment contained a similar provision (sec. 
801). The provision would require a certification that a 
program meets validated requirements consistent with the 
National Military Strategy and contains estimates and funding 
to execute the product development and production plan under 
the program.
      The Senate recedes with a clarifying amendment that would 
amend section 2366a of title 10, United States Code, to require 
the Secretary of Defense to include additional certifications 
before a major defense acquisition program receives Milestone B 
approval or Key Decision Point B approval in the case of a 
space program.
Original baseline estimate for major defense acquisition programs (sec. 
        806)
      The Senate amendment contained a provision (sec. 803) 
that would clarify the definition of the term ``Original 
Baseline Estimate,'' and provide for periodic reporting of 
program acquisition unit costs and procurement unit costs above 
the significant cost growth thresholds identified in section 
2433 of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
definition of Original Baseline Estimate to mean the baseline 
established before the program enters into system development 
and demonstration.
Lead system integrators (sec. 807)
      The Senate amendment contained a provision (sec. 842) 
that would: (1) limit the participation of lead systems 
integrators (LSI) in the development or construction of any 
individual system or element of a system of systems; (2) direct 
the Secretary of Defense to update regulations on LSIs; and (3) 
direct the Secretary to include a specification of various 
types of contracts and fee structures, including award and 
incentive fees, that are appropriate for use by LSIs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
participation of LSIs in the development or construction of any 
individual system or element of a system of systems.

             Subtitle B--Acquisition Policy and Management

Time-certain development for Department of Defense information 
        technology business systems (sec. 811)
      The House bill contained a provision (sec. 813) that 
would require that a Department of Defense information 
technology business system be fielded within 5 years of the 
system entering the technology development phase of Milestone A 
approval. If such a program did not achieve initial operating 
capability within 5 years, the Department would be prohibited 
from obligating or expending any further funds on that program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would maintain 
the requirement of the Department to field information 
technology programs within 5 years of Milestone A approval. 
Failure to achieve initial operating capability within 5 years 
of Milestone A approval would result in the Department being 
subject to reporting requirements contained in section 816 of 
this Act.
Pilot program on time-certain development in acquisition of major 
        weapon systems (sec. 812)
      The Senate amendment contained a provision (sec. 811) 
that would authorize the Secretary of Defense to carry out a 
pilot program on the use of time-certain development in the 
acquisition of major weapon systems.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
place limitations on the number of major weapon systems 
included in the pilot program.
Establishment of Panel on Contracting Integrity (sec. 813)
      The House bill contained a provision (sec. 814) that 
would establish a Panel on Contracting Integrity to review 
progress made by the Department of Defense to eliminate areas 
of vulnerability of the defense contracting system to waste, 
fraud, and abuse. The panel would be chaired by the Deputy 
Secretary of Defense. The panel would review the Government 
Accountability Office report relating to contracting 
vulnerabilities to waste, fraud, and abuse; and make 
recommendations on any changes to law, regulations, and policy 
determined necessary to eliminate such areas of vulnerability.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
assign a representative of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics as the chair of the 
panel; (2) provide the Department with increased flexibility in 
determining the membership of the panel; (3) require submission 
of the first annual report to the congressional defense 
committees by December 31, 2007; and (4) terminate the panel on 
December 31, 2009.
      The conferees agree that the panel's initial review 
should include an examination of the Department's 
administrative and disciplinary procedures for cases involving 
lapses in contracting integrity and include recommendations on 
any changes to such procedures the panel determines appropriate 
in the first annual report.
Linking of award and incentive fees to acquisition outcomes (sec. 814)
      The Senate amendment contained a provision (sec. 843) 
that would require the Secretary of Defense to issue detailed 
implementation guidance, including definitions for performance 
outcomes, for appropriate use of award and incentive fee 
contracts. The provision would require performance measures to 
evaluate the effectiveness of award and incentive fees; 
mechanisms for sharing successful acquisition strategies; and 
an independent evaluation of the impact of award fee payment 
decisions on contractor performance.
      The House bill contained a similar provision (sec. 815).
      The House recedes with an amendment that would require 
development of standards to identify the appropriate level of 
decision-making official for approval of new award and 
incentive fee contracts and to ensure consistent application of 
guidance and definitions across the military departments and 
defense agencies.
Report on defense instruction relating to contractor personnel 
        authorized to accompany Armed Forces (sec. 815)
      The House bill contained a provision (sec. 816) that 
would require: (1) a Department of Defense Inspector General 
report on overcharges discovered under Department contracts for 
work performed in Iraq and Afghanistan; (2) assignment of 
sufficient contracting officers to oversee and monitor 
Department contracts for work to be performed in Iraq and 
Afghanistan; and (3) implementation of a policy for conducting 
comprehensive background checks on foreign nationals hired by 
Department contractors and subcontractors operating outside the 
United States. The provision would also prohibit Department 
contractors and subcontractors operating outside of the United 
States from hiring personnel with violent felony convictions or 
who have committed acts determined to be inconsistent with the 
policy of the Department on human rights. The provision would 
further require the Secretary of Defense to report on 
implementation of Department of Defense Instruction Number 
2030.14 entitled ``Contractor Personnel Authorized to Accompany 
the United States Armed Forces,'' and application of the 
instruction to all new contracts, task orders, or contract 
extensions.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to submit to Congress a report on the status of 
implementation of Department of Defense Instruction Number 
2030.14 entitled ``Contractor Personnel Authorized to Accompany 
the United States Armed Forces.''
Major automated information system program (sec. 816)
      The Senate amendment contained a provision (sec. 804) 
that would require that, as part of the annual budget 
justification materials, the Department of Defense provide to 
the congressional defense committees a report on major 
automated information systems (MAIS) programs. The report would 
include the estimate of developmental costs and total life-
cycle costs (original and current), a schedule of major events 
(original and current), and a brief summary of key performance 
criteria. The provision would further require the Department to 
promptly notify the congressional defense committees when a 
program exceeds established cost, schedule, or performance 
criteria.
      The House bill contained no similar provision.
      The House recedes with an amendment that would provide an 
additional criterion for requiring a report when a MAIS fails 
to achieve initial operating capability within 5 years of 
Milestone A approval.
Internal controls for procurements on behalf of the Department of 
        Defense by certain non-defense agencies (sec. 817)
      The Senate amendment contained a provision (sec. 806) 
that would expand section 811 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) to 
require the Department of Defense Inspector General (IG), in 
consultation with the IG of the National Institutes of Health 
and the IG of the Department of Veterans Affairs, to determine 
whether the policies, procedures, and internal controls of the 
two respective agencies for purchases on behalf of the 
Department of Defense are adequate to ensure compliance with 
defense procurement requirements.
      The House bill contained no similar provision.
      The House recedes.
Determination of contract type for development programs (sec. 818)
      The Senate amendment contained a provision (sec. 807) 
that would require the Secretary of Defense to modify 
Department of Defense regulations regarding a preference for 
the use of fixed-price contracts in development programs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to modify Department regulations regarding the 
determination of contract type in development programs.
      The conferees believe that the Department requires 
additional tools to address the continuing problem of cost and 
schedule growth in the Department's major acquisition programs. 
Congress enacted section 807 of the National Defense 
Authorization Act for Fiscal Year 1989 (Public Law 100-456) to 
prohibit the use of fixed-price development contracts because 
of the Department's aggressive use of fixed-price contracts, 
regardless of the level of program risk associated with the 
program, resulted in cost and schedule overruns.
      The conferees believe that program risk should be reduced 
to the degree that the use of a fixed-price development 
contract for a major acquisition program may be appropriate. 
The conferees agree to repeal section 807 and would require the 
Secretary to modify Department regulations to require the 
Milestone Decision Authority for a major defense acquisition 
program to document the basis for the contract type selected at 
Milestone B approval (or Key Decision Point B approval in the 
case of a space program) that is consistent with the level of 
program risk for the program.
Three-year extension of requirement for reports on commercial price 
        trend analyses of the Department of Defense (sec. 819)
      The Senate amendment contained a provision (sec. 810) 
that would extend the requirement that the Secretary of Defense 
submit an annual report on price trend analyses through 2009.
      The House bill contained no similar provision.
      The House recedes.
Government performance of critical acquisition functions (sec. 820)
      The Senate amendment contained a provision (sec. 812) 
that would require the head of an agency to ensure that certain 
positions for each major defense acquisition program and each 
major automated information system program be performed by a 
properly qualified full-time Federal military or civilian 
employee.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to develop a plan of action for the 
implementation of a Department of Defense goal, within 5 years 
of the date of enactment of this Act, that ensures certain 
positions for each major defense acquisition program and each 
major automated information system program be performed by a 
properly qualified full-time Federal military or civilian 
employee.

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

One-year extension of special temporary contract closeout authority 
        (sec. 831)
      The House bill contained a provision (sec. 821) that 
would extend by 1 year authority under section 804 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136) to allow the Department of Defense to settle 
contracts entered into prior to October 1, 1996, under 
specified conditions.
      The Senate amendment contained an identical provision 
(sec. 872).
      The conference agreement includes this provision.
Limitation on contracts for the acquisition of certain services (sec. 
        832)
      The House bill contained a provision (sec. 822) that 
would prohibit the Secretary of Defense from entering into a 
contract for covered services if the amount of the contract 
exceeds 75 percent of the estimated value of the asset required 
for the provision of services under the contract or exceeds 
$150.0 million in payments over the life of the contract.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
the Secretary from entering into a service contract to acquire 
a military flight simulator unless doing so is necessary for 
national security purposes and a written economic analysis is 
provided to the congressional defense committees at least 30 
days in advance. The required economic analysis would include a 
clear explanation for the need for the contract and an 
examination of at least two alternatives for fulfilling the 
contract requirement.
      The conferees are aware that in some cases the military 
departments are using operations and maintenance funds for 
service contracts and activities traditionally associated with 
procurement and military construction. The conferees are 
concerned that such a contracting methodology reduces 
oversight, potentially increases life-cycle costs, requires 
aggressive contract management, and reduces the flexibility of 
the Department of Defense in allocating funds to meet future 
defense needs. Furthermore, the use of service contracts for 
military training may have readiness consequences.
      The conferees are also aware that the Secretary of the 
Air Force entered into a service contract for the Initial 
Flight Screening program at Pueblo Memorial Airport, Pueblo, 
Colorado, without conducting a full economic analysis to 
determine the best alternative for meeting the Air Force flight 
screening requirement. Therefore, the conferees direct the 
Secretary of the Air Force to perform an economic analysis as 
described in this section and provide the congressional defense 
committees written certification, not later than 180 days after 
the date of the enactment of this Act, whether such analysis 
supports continuation of the service contract.
Use of Federal supply schedules by State and local governments for 
        goods and services for recovery from natural disasters, 
        terrorism, or nuclear, biological, chemical, or radiological 
        attack (sec. 833)
      The House bill contained a provision (sec. 823) that 
would provide the Administrator of General Services with the 
authority to allow State and local governments to use the 
General Services Administration Federal supply schedules for 
goods and services to facilitate recovery from natural 
disasters, terrorist attacks, or attacks involving nuclear, 
chemical, biological, or radiological weapons.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Waivers to extend task order contracts for advisory and assistance 
        services (sec. 834)
      The House bill contained a provision (sec. 824) that 
would allow the head of an agency to issue a waiver to extend 
an Advisory and Assistance Services (AAS) contract up to 10 
years through 5 one-year options provided that the contract 
meets a specific set of criteria.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit 
delegation of the waiver authority to the senior procurement 
executive of the agency, and modify the reporting requirements. 
The modified reporting requirement would include separate 
examinations conducted for the Department of Defense and 
civilian agencies to review methods used to identify a contract 
as an AAS contract, the number of such contracts awarded during 
the preceding 5 years, average expenditures and length of such 
contracts, and the number of such contracts recompeted and then 
awarded to the previous performer. The amendment would also 
require a General Accountability Office report on Federal 
Government rationale for the use and oversight of AAS 
contracts.

      Subtitle D--United States Defense Industrial Base Provisions

Assessment and annual report of United States defense industrial base 
        capabilities and acquisitions of articles, materials, and 
        supplies manufactured outside the United States (sec. 841)
      The Senate amendment contained a provision (sec. 1070A) 
that would require the Department of Defense to submit a report 
to Congress on the amount of the acquisitions of articles, 
materials, and supplies made by the Department in the preceding 
fiscal year from entities that manufacture articles, materials, 
or supplies outside of the United States.
      The House bill contained no similar provision.
      The House recedes with an amendment that would amend 
section 812 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136) to include the reporting 
requirements of section 1070A in the Senate amendment.
Protection of strategic materials critical to national security (sec. 
        842)
      The House bill contained a provision (sec. 831) that 
would move statutory requirements for the procurement of 
specialty metals from domestic sources from the so-called 
``Berry amendment,'' currently codified in section 2533a of 
title 10, United States Code, to a separate section of title 10 
and make certain changes to those requirements.
      The Senate amendment contained a provision (sec. 822) 
that would revise the provisions of the Berry amendment 
regarding the procurement of specialty metals from domestic 
sources.
      The Senate recedes with an amendment that would codify 
the specialty metals requirements in a new section 2533b of 
title 10, United States Code, and modify those requirements. 
The amendment would also authorize a one-time waiver of the 
domestic source requirement for specialty metals that were 
incorporated into items produced, manufactured, or assembled in 
the United States before the date of the enactment of this Act, 
under certain conditions.
Strategic Materials Protection Board (sec. 843)
      The House bill contained a provision (sec. 832) that 
would establish a Strategic Materials Protection Board to 
determine the domestic supply of items designated as critical 
to national security, including adding items to the list of 
specialty metals protected under the so-called ``Berry 
amendment,'' recodified elsewhere in this Act as section 2533b 
of title 10, United States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the new board to make recommendations regarding the list of 
specialty metals covered by the Berry amendment, but not to add 
or delete items from the list.

                       Subtitle E--Other Matters

Report on former Department of Defense officials employed by 
        contractors of the Department of Defense (sec. 851)
      The Senate amendment contained a provision (sec. 841) 
that would require contractors that receive defense contracts 
in excess of $10.0 million, other than contracts for the 
procurement of commercial items, to report to the Department of 
Defense on an annual basis on certain former senior Department 
officials who receive compensation from the contractor.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the General Accountability Office to report to Congress by 
December 1, 2007, on the employment of former Department 
officials by major defense contractors during the most recent 
calendar year for which data is available. The objective of the 
report would be to determine the effectiveness of existing 
statutes and regulations governing the employment of former 
Department officials by defense contractors, including section 
207 of title 18, United States Code and section 27 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 423). The 
report would provide information on Department contracts or 
programs for which former officials personally had program 
oversight responsibility or decision-making authority when they 
served in the Department; or Department contracts or programs 
which are the responsibility of the agency, office, or command 
with which the official served.
Report and regulations on excessive pass-through charges (sec. 852)
      The Senate amendment contained a provision (sec. 844) 
that would require the Secretary of Defense to modify 
Department of Defense regulations to prohibit excessive pass-
through charges on contracts or subcontracts that are entered 
into, for or on the behalf of the Department.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Comptroller General to submit a report to the congressional 
defense committees, not later than 180 days after the date of 
the enactment of this Act, on pass-through charges on contracts 
or subcontracts (or task or delivery orders) that are entered 
into, for or on the behalf of the Department. The amendment 
would also require that the Secretary modify Department 
regulations, not later than May 1, 2007, to prohibit excessive 
pass-through charges on contracts or subcontracts that are 
entered into, for or on the behalf of the Department.
      The conferees agree that an assessment of the impact of 
pass-through charges is required in order to understand the 
magnitude of the problem the Department may have with pass-
through charges. However, the conferees also agree that the 
Department should not be paying excessive pass-through charges 
to those contractors or subcontractors that have little or no 
value added to a particular contract.
      The conferees expect the Secretary to provide an interim 
report to the congressional defense committees on the progress 
made towards completing the regulations required by this 
section.
Program manager empowerment and accountability (sec. 853)
      The Senate amendment contained provisions (secs. 861-863 
and 865) that would address the role of program managers in 
defense acquisition programs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
consolidate these provisions into a single provision and 
provide greater flexibility to the Secretary of Defense in 
implementing the new requirements.
      Subsections (a) and (b) would require the Secretary to 
develop a comprehensive strategy for enhancing the role of 
Department of Defense program managers in carrying out defense 
acquisition programs. These subsections track the language of 
the Senate amendment without change.
      Subsection (c) would require the Secretary to issue 
guidance on qualifications, resources, responsibilities, 
tenure, and accountability of program managers for the program 
development period before Milestone B approval (or Key Decision 
Point B approval in the case of a space program).
      Subsection (d) would require the Secretary to revise the 
Department's guidance on qualifications, resources, 
responsibilities, tenure, and accountability of program 
managers for the program execution period from Milestone B 
approval (or Key Decision Point B approval in the case of a 
space program) until the delivery of the first production units 
for a program. The guidance would address, at a minimum, the 
need for a performance agreement between a program manager and 
the milestone decision authority for the program; the 
authorities available to a program manager; and the tenure of a 
program manager.
      The conferees agree with the assessment of the Government 
Accountability Office that the Department has consistently 
failed to give program managers the authority that they need to 
successfully execute acquisition programs and, as a result, is 
unable to hold them accountable.
      The conferees believe that program managers for the 
development period before Milestone B should be responsible 
for: (1) bringing to maturity the technologies and 
manufacturing processes that will be needed to carry out the 
program; (2) ensuring continued focus during program 
development on meeting stated mission requirements and other 
requirements of the Department; (3) making trade-offs between 
program cost, schedule, and performance for the life-cycle of 
the program; (4) developing a business case for the program; 
and (5) ensuring that appropriate information is available to 
the milestone decision authority to make a decision on 
Milestone B approval, including the information necessary to 
make the certification required by section 2366a of title 10, 
United States Code.
      The conferees believe that a program manager for the 
execution period from Milestone B to the delivery of production 
units should enter into performance agreements with the 
milestone decision authority for the program that: (1) 
establishes expected parameters for the cost, schedule, and 
performance of the program consistent with the business case 
for the program and the Milestone B decision; (2) provides the 
commitment of the milestone decision authority to provide the 
level of funding and resources required to meet such 
parameters; and (3) provides the assurance of the program 
manager that such parameters are achievable and that such 
program manager will be accountable for meeting such 
parameters.
      The conferees also believe that program managers should 
be granted the autonomy to manage their programs without 
interference from outside officials. The conferees believe that 
the guidance should include: (1) the assurance that program 
requirements will not be modified in a way that would be 
inconsistent with the business case, the Milestone B decision, 
and any performance agreement entered without a written 
determination by a senior Department official that the 
modifications are necessary in the interest of the national 
defense; (2) program manager authority to make trade-offs 
between cost, schedule, and performance or to redirect funding 
within the program, provided that such tradeoffs or 
redirections of funds are consistent with the parameters 
established for the program and with applicable requirements of 
law; and (3) program manager authority to use program funds to 
recruit and hire such technical experts as may be required to 
carry out the program in a manner consistent with the 
requirements of law and regulation, if necessary expertise is 
not otherwise provided by the Department.
      The conferees also believe that (1) a program manager 
should be assigned to remain with a program, to the extent 
practicable, during the entire respective development or 
execution period; and (2) a program manager should be provided 
the resources and support (including systems engineering 
expertise, cost estimating expertise, and software development 
expertise) needed to meet their responsibilities. The conferees 
expect the guidance issued by the Secretary to reflect these 
principles, subject to such modifications and exceptions as the 
Secretary may deem necessary.
      Subsection (e) would require reports by the Secretary and 
the Comptroller General on steps taken to carry out the 
requirements of this section.
Joint policies on requirements definition, contingency program 
        management, and contingency contracting (sec. 854)
      The Senate amendment contained a provision (sec. 864) 
that would require the Department of Defense to develop a plan 
for contingency program management during combat operations and 
post-conflict operations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
incorporate the requirements for contingency program management 
under this section into a single provision with requirements 
for contingency contracting under section 817 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163). This section would also require the development of a 
joint policy to facilitate effective generation and definition 
of requirements and determination of appropriate corresponding 
organizational structures.
Clarification of authority to carry out certain prototype projects 
        (sec. 855)
      The Senate amendment contained a provision (sec. 871) 
that would amend section 845 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160), as 
amended by section 823 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163), to allow the 
director of a defense agency to make the written determination 
necessary to exercise other transaction authority on a 
prototype project that is expected to cost the Department of 
Defense in excess of $20.0 million, but not more than $100.0 
million.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the authority to make the necessary determination to 
utilize other transactions for projects expected to cost 
between $20.0 million and $100.0 million would be granted to 
the Director of the Defense Advanced Research Projects Agency 
and the Director of the Missile Defense Agency.
Contracting with employers of persons with disabilities (sec. 856)
      The Senate amendment contained a provision (sec. 873) 
that would extend for 1 year the status quo for continuation 
and completion of existing contracts, including any options, 
awarded under the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
seq.) and the Randolph-Sheppard Act (20 U.S.C. 107 et seq.) 
programs for the operation of military troop dining facilities, 
military mess halls, and other similar military dining 
facilities.
      The House bill contained no similar provision.
      The House recedes with an amendment that would establish 
a permanent policy regarding the award of contracts and 
subcontracts for food services, mess attendant services, and 
other services supporting the operation of a military dining 
facility under the Javits-Wagner-O'Day and Randolph-Sheppard 
Acts. The amendment would require a review and report by the 
Government Accountability Office on operational procedures, 
competition, and determinations regarding fair and reasonable 
pricing for contracts awarded under both Acts. The amendment 
would also require a joint report from the Inspectors General 
of the Departments of Defense and Education on management 
procedures implemented under the two Acts.
Enhanced access for small business (sec. 857)
      The House bill contained a provision (sec. 825) that 
would amend section 9(a) of the Contract Disputes Act of 1978 
(41 U.S.C. 608) to provide expedited disposition of appeals by 
the Armed Services Board of Contract Appeals and the Civilian 
Board of Contract Appeals for small business disputes of 
$150,000 or less.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Procurement goal for Hispanic-serving institutions (sec. 858)
      The House bill contained a provision (sec. 826) that 
would extend contract goals for small disadvantaged businesses 
and certain institutions of higher education to include 
Hispanic-serving institutions.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Adjustment of original baseline estimates for major defense acquisition 
        program experiencing cost growth resulting from damage caused 
        by hurricanes Katrina, Rita, and Wilma
      The Senate amendment contained a provision (sec. 805) 
that would allow the Department of Defense to adjust the 
original baseline estimate under section 2435(d) of title 10, 
United States Code, for a major defense program that is carried 
out primarily in the areas affected by hurricanes Katrina, 
Rita, and Wilma for the sole purpose of addressing cost growth 
that is directly attributable to damage caused by those 
hurricanes.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge that funds appropriated in 
division B of the Department of Defense Appropriations Act for 
Fiscal Year 2006 (Public Law 109-148) for shipbuilding programs 
affected by hurricanes Katrina, Rita, and Wilma will likely 
cause the programs to breach Nunn-McCurdy thresholds. The 
conferees expect the Department to submit an abbreviated 
Selected Acquisition Report under section 2435(d) if Nunn-
McCurdy thresholds are breached solely because of costs due to 
increases caused by hurricanes Katrina, Rita, and Wilma.
Availability of funds for performance-based logistics contracts for 
        weapons systems logistics support
      The Senate amendment contained a provision (sec. 808) 
that would authorize the Secretary of Defense to use operation 
and maintenance (O&M) funds for performance-based logistics 
contracts to finance costs associated with the implementation 
of engineering changes that result in a reduction of government 
O&M costs.
      The House bill contained no similar provision.
      The Senate recedes.
Applicability of statutory executive compensation cap made prospective
      The House bill contained a provision (sec. 811) that 
would amend section 808(e)(2) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85) to 
clarify that the underlying provision is prospective from the 
date of enactment.
      The Senate amendment contained no similar provision.
      The House recedes.
Prohibition on procurement from beneficiaries of foreign subsidies
      The House bill contained a provision (sec. 812) that 
would prohibit the Secretary of Defense from entering into a 
contract with a foreign person (including a joint venture, 
cooperative organization, partnership, or contracting team), 
who has received a subsidy from the government of a foreign 
country that is a member of the World Trade Organization, if 
the United States has requested a consultation with that 
foreign country on the basis that the subsidy is prohibited 
under the Agreement on Subsidies and Countervailing Measures.
      The Senate amendment contained no similar provision.
      The House recedes.
Removal of hand and measuring tools from certain requirements
      The Senate amendment contained a provision (sec. 821) 
that would remove hand and measuring tools from the requirement 
to buy certain articles from American sources.
      The House bill contained no similar provision.
      The Senate recedes.
Waiver authority for domestic source or content requirements
      The Senate amendment contained a provision (sec. 823) 
that would provide the Secretary of Defense the authority to 
waive the application of statutory domestic source requirements 
and domestic content requirements under certain conditions.
      The House bill contained no similar provision.
      The Senate recedes.
Repeal of requirement for identification of essential military items 
        and military system essential item breakout list
      The Senate amendment contained a provision (sec. 824) 
that would repeal the requirement for identifying essential 
military items on a military system essential item breakout 
list.
      The House bill contained no similar provision.
      The Senate recedes.
Consistency with United States obligations under trade agreements
      The Senate amendment contained a provision (sec. 825) 
that would require that no provision of this Act, or any 
amendment made by this Act, shall apply if the Secretary of 
Defense, in consultation with the Secretary of Commerce, the 
U.S. Trade Representative, and the Secretary of State, 
determines that the application of the provision would be 
inconsistent with international trade agreements of the United 
States.
      The House bill contained no similar provision.
      The Senate recedes.
Prohibition on defense contractors requiring licenses or fees for use 
        of military likenesses and designations
      The House bill contained a provision (sec. 827) that 
would require that any contract entered into by the Department 
of Defense include a provision prohibiting the contractor from 
requiring toy and hobby manufacturers, distributors, or 
merchants to obtain licenses or pay fees for the use of 
military likenesses or designations on items provided under the 
contract.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are aware that the use of military 
likenesses and designations in commerce involve issues of 
intellectual property and trademark law, constitutional 
takings, and the commercialization of defense technologies that 
are of great importance to the Department. The conferees are 
also aware that section 1004 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
375) authorized the Department to license trademarks, service 
marks, certification marks, and collective marks, and to 
operate a licensing program to raise funds for morale, welfare, 
and recreation activities.
      The conferees believe that clarification of the system 
for determining ownership of military likenesses and 
designations could reduce confusion, particularly among 
manufacturers of toy models and hobby items, regarding 
appropriate policy and process for collection of license fees. 
The conferees encourage the Department to work with appropriate 
Federal departments and agencies to study the legal, financial, 
and administrative issues surrounding the registration of 
intellectual property rights in the likenesses and designations 
of military items, and to report back to Congress as soon as 
practicable on any recommendations for modifications to 
existing polices or statutes. The report should include a 
discussion of how the registration and licensing program 
authorized by section 1004 could be used to streamline the 
procedures under which toy and hobby manufacturers obtain 
licenses for military likenesses and designations.
Report on Department of Defense contracting with contractors or 
        subcontractors employing members of the Selected Reserve
      The Senate amendment contained a provision (sec. 845) 
that would require the Secretary of Defense to conduct a study 
on actual or potential contractors or subcontractors who employ 
members of the Selected Reserve. The study would address the 
extent to which Department of Defense contractors employ 
members of the Selected Reserve; potential disadvantages to 
such contractors in competing for Department contracts if their 
employees are mobilized; and recommendations for any 
appropriate action to provide such contractors with time or 
assistance in meeting contract deadlines. The provision would 
also repeal section 819 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163), which provided 
authorization for the Secretary to use employment of Selected 
Reserve members by a contractor as an evaluation factor for 
award of contracts.
      The House bill contained no similar provision.
      The Senate recedes.
Pilot program on expanded use of Mentor-Protege authority
      The Senate amendment contained a provision (sec. 874) 
that would enable the Secretary of Defense to use the 
authorities of the Department of Defense Mentor-Protege program 
to provide technical assistance to firms that develop new 
technologies related to force protection or countering the 
threat of improvised explosive devices under the Small Business 
Innovative Research program.
      The House bill contained no similar provision.
      The Senate recedes.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Legislative Provisions Adopted

              Subtitle A--Department of Defense Management

Increase in authorized number of assistant secretaries of defense (sec. 
        901)
      The conferees agree to include a provision requested by 
the Department of Defense that would amend section 138(a) of 
title 10, United States Code, to permit an increase in the 
number of assistant secretaries of defense (ASDs) from 9 to 10 
in order to facilitate a reorganization of the Office of the 
Under Secretary of Defense for Policy (OUSD(P)).
      The conferees support the stated purpose of the 
reorganization, which is to develop a balanced set of 
portfolios that would allow more effective interaction with 
both commanders of the unified combatant commands and other 
Federal departments and agencies. The conferees understand that 
the Secretary of Defense intends to begin implementation of the 
OUSD(P) reorganization on or about October 1, 2006. While the 
conferees agree that the Secretary of Defense should adjust the 
roles and responsibilities within the OUSD(P) to address more 
effectively the full range of current and emerging national 
security challenges, the conferees share some concerns about 
the proposed reorganization. Chief among these concerns are:
      (1) the role of a global war on terrorism task force that 
reports directly to the Under Secretary of Defense for Policy, 
and the relationship between that task force and the ASD for 
``Special Operations and Low-Intensity Conflict and 
Interdependent Capabilities'' (SOLIC/IC) and other ASDs;
      (2) the placement of ``Strategic Capabilities'' under the 
ASD for SOLIC/IC. Nuclear and missile issues arguably require a 
different skill set and knowledge base and could result in an 
overall dilution of the statutory mission of this ASD, which is 
to supervise special operations and low-intensity conflict 
activities. Moreover, moving ``Strategic Capabilities'' to a 
different ASD than the one responsible for chemical and 
biological weapons issues may complicate the effective 
coordination that occurs currently. It would mean that the 
Commander, U.S. Strategic Command, would need to seek guidance 
on combating weapons of mass destruction (WMD) policy from two 
different ASDs, creating the kind of seam that the 
reorganization is supposed to minimize;
      (3) the placement of ``Forces Transformation and 
Resources'' under the ASD for SOLIC/IC. The conferees have 
similar concerns about the different skill set and knowledge 
base required for overseeing transformation, as well as the 
U.S. Transportation Command. Placing such responsibilities 
under the ASD for SOLIC/IC would further divert focus from the 
statutory mission of this ASD;
      (4) the very large span of responsibilities for a Deputy 
ASD for ``Counternarcotics, Counterproliferation, and Global 
Threats.'' The large number of significant issues that would 
reside in this organization could mean that insufficient 
personnel and resources are devoted to the critical and diverse 
issues assigned to this ASD, including the critical missions of 
cooperative threat reduction, counterproliferation, and 
combating WMD;
      (5) the potential impact on counternarcotics (CN) program 
execution. While the conferees recognize that efficiencies can 
be gained by developing common approaches and funding to combat 
illicit drug production and trafficking, terrorism, and 
proliferation of WMD, the conferees note that the management of 
CN policy must remain consistent with congressional intent 
regarding the Department of Defense's counterdrug role and the 
effective use of its drug interdiction central transfer 
account. Separating CN policy oversight from the administration 
of the central transfer account would likely reduce the 
effectiveness and responsiveness of the CN policy office and 
its ability to facilitate accurate congressional oversight of 
the program;
      (6) the unique placement of both functional and regional 
issue responsibilities under one ASD for Homeland Defense and 
Americas' Security Affairs. It also is unclear what the 
functional issues under this ASD would entail; and
      (7) the role of the Deputy Assistant Secretary of Defense 
for ``Building Partner Capacity Strategy.'' It is unclear how 
this portfolio would differ from that of a Deputy Assistant 
Secretary of Defense for ``Security Cooperation Operations.'' 
This structure appears to presume that the Department will 
receive permanent authority to undertake foreign military 
assistance missions, despite the fact that Congress has not 
provided such authority to the Department.
      In light of these concerns, the conferees direct the 
Secretary of Defense to submit to the congressional defense 
committees, not later than February 1, 2007, a report on the 
OUSD(P) reorganization. This report shall provide a detailed 
description and explanation of the reorganization, including 
each of the concerns noted above. The conferees also expect 
that Department officials will consult frequently with the 
congressional defense committees about the assigned 
responsibilities of the ASDs, the assignment of personnel, and 
the plan for implementation.
Modifications to the Combatant Commander Initiative Fund (sec. 902)
      The conferees agree to include a provision that would 
provide expanded authority under the Combatant Commanders 
Initiative Fund (CCIF) for geographic combatant commanders to 
provide urgent and unanticipated humanitarian relief and 
reconstruction assistance to countries in their respective 
areas of responsibility (AORs), particularly to countries where 
U.S. Armed Forces are engaged in a contingency operation. The 
conferees also agree to increase by $5.0 million the amount 
authorized for the CCIF for fiscal year 2007 for this purpose.
      The conferees believe it is important that the geographic 
combatant commanders have additional authority, resources, and 
flexibility in order to be able to respond to urgent and 
unanticipated humanitarian relief and reconstruction needs in 
their AORs, particularly in countries where U.S. forces are 
engaged in a contingency operation. The conferees urge the 
Department of Defense to request sufficient funds in the CCIF 
for this purpose in future years budget requests. The conferees 
urge the Department of Defense to develop guidance for the use 
of this authority to ensure that the authority can be used 
quickly and without bureaucratic delay in urgent situations. 
The conferees also urge that the guidance include procedures 
for coordinating with the relevant Department of State country 
team as a precondition for providing assistance to a foreign 
country under this authority.
      The conferees note that this expanded CCIF authority is 
not intended for use in Afghanistan or Iraq so long as 
Commander's Emergency Response Program (CERP) authority is 
available for use in those countries.
Addition to membership of specified council (sec. 903)
      The House bill contained a provision (sec. 903) that 
would amend section 179(a) of title 10, United States Code, to 
add the Commander, Strategic Command to the Nuclear Weapons 
Council.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Consolidation and standardization of authorities relating to Department 
        of Defense Regional Centers for Security Studies (sec. 904)
      The House bill contained a provision (sec. 904) that 
would streamline the management of the Department of Defense 
Regional Centers for Security Studies by providing a uniform 
set of authorities for all of these Regional Centers. The 
provision would allow the Regional Centers to conduct research, 
as well as facilitate the communication and exchange of ideas 
between U.S. and foreign military officers, civilian 
governmental personnel, and non-governmental personnel. The 
provision would permit foreign governments and U.S. federal 
agencies to fund foreign participation in Center activities, 
and would provide the Secretary of Defense authority to waive 
reimbursement of costs of activities for military officers and 
civilian defense and security officials from developing 
countries. The provision would continue the requirement for the 
Secretary of Defense to submit to the Committees on Armed 
Services of the Senate and the House of Representatives an 
annual report on the Regional Centers' status, objectives, 
budgets, international participation, and foreign gifts and 
donations.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Oversight by Office of Under Secretary of Defense for Acquisition, 
        Technology, and Logistics of exercise of acquisition authority 
        by combatant commanders and heads of Defense Agencies (sec. 
        905)
      The Senate amendment contained a provision (sec. 902) 
that would establish a senior acquisition executive for special 
operations within the staff of the Assistant Secretary of 
Defense for Special Operations and Low-Intensity Conflict.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to, not later than 180 days after the date of the 
enactment of this Act, designate a senior acquisition official 
within the Office of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics to coordinate and 
oversee the exercise of acquisition authorities by any 
combatant commander and any head of a defense agency designated 
by the Secretary of Defense to exercise acquisition authority.
      The conferees note that the designation of a senior 
acquisition official within the Office of the Under Secretary 
of Defense for Acquisition, Technology, and Logistics under the 
expanded authorities recommended by this section is intended to 
enhance acquisition oversight and the effective stewardship of 
resources and is not intended to impede the need to fulfill the 
urgent requirements of the commanders of combatant commands and 
the heads of defense agencies.
Standardization of statutory references to ``national security system'' 
        within laws applicable to Department of Defense (sec. 906)
      The House bill contained a provision (sec. 901) that 
would modify three sections of title 10 to ensure the 
definition of national security system is consistent with the 
current definition in the Federal Information Security 
Management Act of 2002 (Public Law 107-347) and with the 
definition of information technology in section 3542(b)(2) of 
title 44, United States Code.
      The Senate amendment contained a similar provision (sec. 
1071).
      The Senate recedes.
Correction of reference to predecessor of Defense Information Systems 
        Agency (sec. 907)
      The House bill contained a provision (sec. 902) that 
would amend section 193 of title 10, United States Code, to 
reflect the current name of the Defense Information Systems 
Agency.
      The Senate amendment contained an identical provision 
(sec. 1072).
      The conference agreement includes this provision.

                      Subtitle B--Space Activities

Designation of successor organizations for the disestablished 
        Interagency Global Positioning Executive Board (sec. 911)
      The House bill contained a provision (sec. 911) that 
would amend the Commercial Space Transportation Competitiveness 
Act of 2000 (Public Law 106-405) to reflect the subsequent 
disestablishment of the Interagency Global Positioning 
Executive Board and its replacement by a new organizational 
structure created by national policy.
      The Senate amendment contained a similar provision (sec. 
1082).
      The Senate recedes with a technical amendment that would 
replace the phrase ``national security presidential directive'' 
with ``U.S. Space-based Position, Navigation, and Timing 
Policy.''
Extension of authority for pilot program for provision of space 
        surveillance network services to non-United States Government 
        entities (sec. 912)
      The House bill contained a provision (sec. 912) that 
would extend through September 30, 2009, a pilot program that 
is determining the feasibility and desirability of providing 
space surveillance data support to non-United States Government 
entities.
      The Senate amendment contained an identical provision 
(sec. 912).
      The conference agreement includes this provision.
Operationally responsive space (sec. 913)
      The House bill contained a provision (sec. 913) that 
would establish an Operationally Responsive Space (ORS) program 
office and would require the Secretary of Defense to submit a 
report to the congressional defense committees setting forth a 
plan for acquisition of capabilities for operationally 
responsive space support to the military.
      The Senate amendment contained a similar provision (sec. 
911).
      The House recedes with an amendment that would clarify 
the organization and acquisition activities of the program 
office.
      The conferees make the following findings: (1) access to 
and use of space is critical for preserving and protecting the 
national security, commercial, and civil interests of the 
United States; (2) to the maximum extent possible, space 
capabilities should be integrated into the strategy, doctrine, 
operations, and contingency plans of the armed forces; (3) the 
combatant commanders should have access to responsive space 
capabilities that provide prompt, focused support in their 
theater of operations, including which capabilities should 
complement other national and Department of Defense space 
assets while providing direct and flexible support to the 
warfighter on the battlefield and military operations other 
than war; and (4) the United States Space Transportation Policy 
of January 6, 2005, calls for the demonstration, before 2010, 
of an initial capability for operationally responsive access to 
and use of space to support the national security requirements 
of the United States.
      Accordingly, the conferees believe it should be the 
policy of the United States to demonstrate, acquire, and deploy 
an effective ORS capability to support military users and 
operations from space. The conferees understand the term ORS to 
include the ability to launch--and activate quickly--militarily 
useful satellites when needed to provide surge capability, 
reconstitute damaged or incapacitated satellites, or provide 
timely availability of tailored or new capabilities to the 
military user. By lowering the cost of satellite development 
and associated launch costs, ORS capabilities can lead to long-
term benefits by advancing technology, improving space 
acquisitions, enhancing the skills of the technical workforce, 
and broadening the space industrial base.
      To this end, the conferees direct the Secretary of 
Defense to establish a program office within the Department of 
Defense to coordinate and execute the Department's ORS 
activities and to facilitate the development of low-cost, rapid 
reaction payloads, busses, space-lift, and launch control 
capabilities to fulfill joint military operational requirements 
for on-demand space support and reconstitution. This program 
office should be the focal point for activities and entities 
with the capacity to contribute to the development of ORS 
capabilities and, as such, shall include science and 
technology, acquisition, operations, and combatant command 
support elements. In addition to coordinating the Department's 
efforts, this program office should seek to coordinate with the 
intelligence community and other relevant non-Department of 
Defense entities that may have activities associated with the 
ORS mission, and utilize existing processes and infrastructure, 
where applicable. The Department of Defense Executive Agent for 
Space, or a designee appointed by the Secretary, shall serve as 
head of the program office. Such designee shall report directly 
to the Department of Defense Executive Agent for Space.
      The conferees recognize the value of developing systems 
for operational experimentation, which include leveraging these 
systems for technology demonstrations, applying lessons learned 
to the acquisition of production systems, and providing 
militarily useful support in-theater
      Central to the success of the ORS effort is controlling 
the cost of satellites and launch vehicles developed as 
operational experimentation systems as well as operationally 
fielded production systems. The conferees believe it should be 
a goal of the program office, to the maximum extent possible, 
to limit the cost of launch vehicles (to low earth orbit) to 
approximately $20.0 million in constant dollars, and to limit 
the cost of an integrated satellite to approximately $40.0 
million in constant dollars.
      The conferees direct the Secretary to create a separate 
program element for the activities of the ORS program office 
and to ensure that, to the extent applicable, relevant programs 
and activities for ORS are consolidated within this program 
element. This is not intended to preclude other agencies or 
organizations within the Department from budgeting for science 
and technology efforts related to the ORS mission. The 
conferees do recommend, however, that the acquisition of 
operational capabilities and operations support costs should be 
planned, programmed, and budgeted in the program element for 
the ORS program office.
Independent review and assessment of Department of Defense organization 
        and management for national security in space (sec. 914)
      The Senate amendment contained a provision (sec. 913) 
that would require the Secretary of Defense to select an entity 
outside the Department of Defense to conduct an independent 
review and assessment of the organization and management of the 
Department of Defense for national security in space.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to consult with the chairmen and 
ranking members of the Committees on Armed Services of the 
Senate and the House of Representatives in selecting the entity 
to conduct the review and assessment.

             Subtitle C--Chemical Demilitarization Program

Sense of Congress on completion of destruction of United States 
        chemical weapons stockpile (sec. 921)
      The Senate amendment contained a provision (sec. 1087) 
that would express the sense of the Senate that: (1) the United 
States is committed to making every effort to safely dispose of 
its chemical weapons stockpile by the Chemical Weapons 
Convention extended deadline of April 29, 2012, or as soon 
thereafter as possible; (2) the Secretary of Defense should 
prepare a comprehensive schedule for safely destroying the U.S. 
chemical weapons stockpile to prevent further delays in its 
destruction, and should submit that schedule annually to the 
congressional defense committees in an annual report; and (3) 
the Secretary should make every effort to ensure adequate 
funding to complete the elimination of the U.S. chemical 
weapons stockpile in the shortest time possible, consistent 
with the requirement to protect public health, safety, and the 
environment.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
provision a sense of Congress and add an additional element 
stating that the Secretary of Defense should propose a credible 
process to gain the support of affected communities when 
selecting a site for the treatment or disposal of neutralized 
chemical agent at a location remote from where the agent is 
stored.
Comptroller General review of cost-benefit analysis of off-site versus 
        on-site treatment and disposal of hydrolysate derived from 
        neutralization of VX nerve gas at Newport Chemical Depot, 
        Indiana (sec. 922)
      The House bill contained a provision (sec. 922) that 
would require the Comptroller General to review and report to 
Congress by December 1, 2006, on the adequacy of the cost 
benefit analysis prepared by the Secretary of the Army 
comparing options to treat and dispose of the hazardous 
material that is a by-product of the process of neutralizing VX 
nerve gas stored at the Newport Chemical Depot, Indiana. The 
provision would also prohibit the Secretary from proceeding 
with any action to transport this hazardous material, or 
hydrolysate, from the Newport Chemical Depot until 60 days 
after the Comptroller General's report is received by Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
the Secretary from proceeding with any action to transport this 
hazardous material, or hydrolysate, from the Newport Chemical 
Depot to the State of New Jersey until the earlier of: 60 days 
after the Comptroller General's report is received by Congress, 
or February 1, 2007.
Incentives clauses in chemical demilitarization contracts (sec. 923)
      The Senate amendment contained a provision (sec. 372) 
that would provide the Secretary of Defense authority to 
include an incentives clause in any contract for the 
destruction of the U.S. stockpile of lethal chemical agents and 
munitions in order to accelerate the safe elimination of the 
U.S. chemical weapons stockpile and to reduce the total cost of 
the chemical demilitarization program by affording the 
contractor an opportunity to share in the life cycle cost 
savings that the U.S. Government would realize by early 
completion of destruction operations and facility closure. The 
provision would require that this authority be exercised 
consistent with the Secretary's obligation under law to provide 
for maximum protection for the environment, the general public, 
and the personnel who are involved in the destruction of the 
lethal chemical agents and munitions. The authority to include 
an incentives clause in a contract would be subject to the 
availability of appropriations for that purpose.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that this authority is intended to be 
available for all elements of the chemical demilitarization 
program, including the Chemical Stockpile Disposal Project, the 
Alternative Technologies and Approaches Project, and the 
Assembled Chemical Weapons Alternative Program.
      The conferees express their disappointment in the 
notification from the Secretary of Defense dated April 10, 
2006, that the United States will not be able to meet the 
Chemical Weapons Convention extended destruction deadline of 
April 29, 2012, for the complete destruction of the U.S. 
chemical weapons stockpile. The conferees note the Secretary's 
commitment in the notification that ``The Department will 
continue working diligently to minimize the time to complete 
destruction without sacrificing safety and security. We will 
also continue requesting resources needed to complete 
destruction as close to April 2012 as practicable.'' The 
conferees strongly concur in those sentiments and urge the 
Department to uphold the commitment expressed in the 
Secretary's notification letter.
Chemical demilitarization program contracting authority (sec. 924)
      The Senate amendment contained a provision (sec. 376) 
that would clarify retroactively that the Secretary of Defense 
may carry out the chemical weapons demilitarization program 
through multiyear contracts.
      The House bill contained no similar provision.
      The House recedes.

                Subtitle D--Intelligence-Related Matters

Four-year extension of authority of Secretary of Defense to engage in 
        commercial activities as security for intelligence collection 
        activities (sec. 931)
      The Senate amendment contained a provision (sec. 1031) 
that would extend the authority to engage in commercial 
activities as security for intelligence collection activities 
until December 31, 2008.
      The House bill contained a similar provision (sec. 931).
      The House recedes with an amendment that would extend the 
authority until December 31, 2010.
Annual reports on intelligence oversight activities of the Department 
        of Defense (sec. 932)
      The Senate amendment contained a provision (sec. 1032) 
that would require the Secretary of Defense to submit an annual 
report to the congressional defense and intelligence committees 
on intelligence oversight activities of the Department of 
Defense. The term ``intelligence oversight activities of the 
Department of Defense'' refers to any activity undertaken by an 
agency element or component of the Department to ensure 
compliance with regard to intelligence and intelligence-related 
activities of the Department under law or any Executive order, 
or Presidential directive, including Executive Order 12333.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
distribution of the report, remove references to ``questionable 
activities,'' and add the required annual report to chapter 21, 
title 10, United States Code.
Collection by National Security Agency of service charges for 
        certification or validation of information assurance products 
        (sec. 933)
      The Senate amendment contained a provision (sec. 1035) 
that would authorize the National Security Agency to collect 
service charges for the certification or validation of 
information assurance products.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle E--Other Matters

Department of Defense policy on unmanned systems (sec. 941)
      The Senate amendment contained a provision (sec. 921) 
that would require the Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, to develop a 
Department-wide policy for research, development, test, and 
evaluation; procurement; and operation of unmanned systems.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
clarify the policy elements to be addressed; (2) require the 
report to the congressional defense committees to include 
strategy and schedule information for implementing the 
necessary policy; and (3) define unmanned systems for the 
purposes of this section.
      The conferees recognize that unmanned systems are not, 
and will not, be capable of replacing manned systems in every 
case. However, the conferees encourage the Department of 
Defense to use an expanded vision in determining those routine 
and dangerous missions that could, and should, be performed by 
unmanned systems. Interoperability, survivability, commonality, 
sustainment, manufacturing, and training should be examined for 
seamless integration between manned and unmanned systems 
development, acquisition and operation in the air, on the 
ground, and at sea.
Executive Schedule level IV for Deputy Under Secretary of Defense for 
        Logistics and Materiel Readiness (sec. 942)
      The Senate amendment contained a provision (sec. 922) 
that would move the position of Deputy Under Secretary of 
Defense for Logistics and Materiel Readiness from Executive 
Schedule Level III to Level IV. The change would be applicable 
to future appointees to the position.
      The House bill contained no similar provision.
      The House recedes.
Study and report on reform of Defense Travel System (sec. 943)
      The Senate amendment contained a provision (sec. 926) 
that would prohibit the Secretary of Defense from obligating or 
expending any funds related to the Defense Travel System, 
except those funds obtained through a one-time, fixed-price 
service fee per Department of Defense customer utilizing the 
system with an additional fixed fee for each transaction.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to provide an independent report to the 
congressional defense committees within 6 months of the date of 
the enactment of this Act. The report shall analyze the 
feasibility of separating the financial infrastructure of the 
Defense Travel System from the travel reservation system, 
converting the travel reservation process to a fee-for-service 
system, and making the use of the financial infrastructure of 
the Defense Travel System mandatory for all travel 
transactions.
      The amendment would also require the Secretary to report 
to the congressional defense committees on the actions he plans 
to take to implement the recommendations of the report. The 
amendment prohibits the Secretary from initiating a new 
contract for the Defense Travel System (other than to continue 
current operations) until the report has been provided to the 
Congress.
Administration of pilot project on Civilian Linguist Reserve Corps 
        (sec. 944)
      The Senate amendment contained a provision (sec. 1033) 
that would transfer the administration of the pilot project on 
the Civilian Linguist Reserve Corps from the Director of 
National Intelligence (DNI) to the Secretary of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary to coordinate with the DNI in carrying out the 
pilot project, and extend the duration of the pilot project for 
an additional 2 years.
Improvement of authorities on the National Security Education Program 
        (sec. 945)
      The Senate amendment contained a provision (sec. 1034) 
that would amend section 1902(b)(2) of title 50, United States 
Code, to expand the entities in which mandated service could be 
performed to include the Department of Homeland Security, 
Department of State, or a position in the field of education. 
The provision would also provide authority to the Secretary of 
Defense to hire a program participant in a position in the 
Department of Defense on a temporary, interim basis, for a 
period not to exceed 2 years, to expedite security clearances 
and other personnel processes, if there is no other permanent 
position available for the participant.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
authority to expand the entities in which mandated service 
could be performed, and make clarifying changes.
Report on the posture of the United States Special Operations Command 
        to conduct the global war on terrorism (sec. 946)
      The Senate amendment contained a provision (sec. 927) 
that would require the Secretary of Defense to report on the 
types of units and capabilities that should be incorporated 
into the reserve components of the Armed Forces as part of the 
expansion of Special Forces, as outlined in the 2006 
Quadrennial Defense Review Report. In addition, the Secretary 
would be required to report on the effort taken by the U.S. 
Special Operations Command (USSOCOM) to provide special forces 
training in high-altitude and mountainous areas within the 
United States.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the report should assess the posture of USSOCOM to conduct 
the global war on terrorism, including: (1) whether the command 
is appropriately manned, resourced, and equipped; (2) whether 
there is an appropriate balance of capabilities between the 
active and reserve components; (3) whether there are sufficient 
numbers of Army Special Forces for foreign security assistance 
and training missions; and (4) how the special operations 
forces are being trained for different operational 
environments.

                   Legislative Provisions Not Adopted

United States Military Cancer Institute
      The Senate amendment contained a provision (sec. 901) 
that would require the Secretary of Defense to establish the 
United States Military Cancer Institute in the Uniformed 
Services University of the Health Sciences.
      The House bill contained no similar amendment.
      The Senate recedes.
Military deputies to the assistant secretaries of the military 
        departments for acquisition, logistics, and technology matters
      The Senate amendment contained a provision (sec. 904) 
that would establish positions within the military departments 
for military deputies to the assistant secretaries for 
acquisition in the Departments of the Army, Navy, and Air 
Force. The officers serving in these positions would hold the 
rank of lieutenant general or vice admiral while serving and 
would be excluded from limits on the numbers and percentages of 
officers in the respective services.
      The House bill contained no similar provision.
      The Senate recedes.
Redesignation of the Department of the Navy as the Department of the 
        Navy and Marine Corps
      The House bill contained a provision (sec. 905) that 
would amend title 10, United States Code, to redesignate the 
Department of the Navy as the Department of the Navy and Marine 
Corps. The provision would also change the titles of the 
Secretary of the Navy, the Assistant Secretaries of the Navy, 
and the General Counsel of the Navy to include both the Navy 
and the Marine Corps.
      The Senate amendment contained no similar provision.
      The House recedes.
Transfer to Secretary of the Army of responsibility for Assembled 
        Chemical Weapons Alternatives program
      The House bill contained a provision (sec. 921) that 
would transfer program management responsibility for the 
Assembled Chemical Weapons Alternatives program from the Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
to the Secretary of the Army by January 1, 2007.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Congress regarding the safe and expeditious disposal of 
        chemical weapons
      The House bill contained a provision (sec. 923) that 
would express the sense of Congress that the process used for 
selecting a site for remote disposal of hazardous material 
remaining after the initial processing of chemical munitions 
should be free from political influence and that a process 
similar to that used for base closure and realignment be 
considered for adoption.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Senate on nomination of individual to serve as Director of 
        Operational Test and Evaluation on a permanent basis
      The Senate amendment contained a provision (sec. 924) 
that would express the sense of the Senate that the President 
should nominate a permanent Director of Operational Test and 
Evaluation as soon as practicable.
      The House bill contained no similar provision.
      The Senate recedes.
Inclusion of homeland defense and civil support missions of the 
        National Guard and Reserves in the Quadrennial Defense Review
      The Senate amendment contained a provision (sec. 925) 
that would amend section 118(d) of title 10, United States 
Code, to require the Secretary of Defense to include homeland 
defense and civil support missions in the Quadrennial Defense 
Review (QDR) report.
      The House bill contained no similar provision.
      The Senate recedes. The provision was incorporated into 
another provision elsewhere in this report.

                      TITLE X--GENERAL PROVISIONS

                        Item of Special Interest

Vietnam conflict
      The conferees believe it is appropriate to commemorate 
the 50th anniversary of the Vietnam conflict in order to thank 
and honor the veterans, missing in action, and prisoners of war 
of that conflict and their families; to pay tribute to the 
sacrifices and contributions made on the home front by the 
people of the United States during the Vietnam conflict; to 
highlight advances in technology, science, and medicine related 
to military research conducted during the Vietnam conflict; and 
to recognize the contributions and sacrifices made by the 
allies of the United States in the Vietnam conflict.
      The conferees, therefore, direct the Secretary of Defense 
to provide the Committees on Armed Services of the Senate and 
the House of Representatives, not later than April 1, 2007, 
with a proposed plan on commemoration of the Vietnam conflict. 
At a minimum, the proposed plan should include: the recommended 
duration and outline of major events of the commemoration; a 
discussion of how the Department of Defense would coordinate, 
support, and facilitate this commemoration with other Federal 
Government agencies, State and local governments, and other 
entities; the estimated total expenditures necessary to carry 
out the commemoration program; and legislative proposals needed 
to implement the commemoration. The plan should also include 
the recommended process and guidelines for managing the 
financing and expenditures of the commemoration. To that end, 
the plan should include the establishment in the Treasury of an 
account to be administered by the Secretary of Defense, from 
which funds might be invested and from which funds could be 
obligated solely for purposes related to the commemoration 
program. The conferees also believe that the establishment of 
such an account should be accompanied by a recommended 
limitation on the expenditure of appropriated funds in support 
of the commemoration and that the cost of the commemoration 
should not be borne by a single military department.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

General transfer authority (sec. 1001)
      The House bill contained a provision (sec. 1001) that 
would provide $3.75 billion in transfer authority among 
accounts in division A of this Act for fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
1001) that would provide $4.0 billion in transfer authority 
among accounts in division A of this Act for fiscal year 2007.
      The House recedes with an amendment that would provide 
$4.5 billion in transfer authority.
Authorization of additional emergency supplemental appropriations for 
        fiscal year 2006 (sec. 1002)
      The House bill contained a provision (sec. 1002) that 
would authorize emergency supplemental appropriations pursuant 
to an emergency supplemental appropriations act for 2006.
      The Senate amendment contained a similar provision (sec. 
1002) that would authorize additional emergency supplemental 
appropriations for fiscal year 2006 for Iraq, Afghanistan, and 
the Global War on Terror, pursuant to titles I, II, and V of 
the Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Hurricane Recovery, 2006 (Public Law 
109-234).
      The House recedes.
Reduction in certain authorizations due to savings relating to lower 
        inflation (sec. 1003)
      The House bill contained a provision (sec. 1006) that 
would reduce the amount authorized to be appropriated to the 
Department of Defense by $1.6 billion to reflect savings from 
lower-than-expected inflation estimates.
      The Senate amendment contained a similar provision (sec. 
1003).
      The Senate recedes with an amendment that would reduce 
the amount authorized to be appropriated to the Department of 
Defense by $757.1 million.
Increase in fiscal year 2006 general transfer authority (sec. 1004)
      The House bill contained a provision (sec. 1003) that 
would provide $3.75 billion in transfer authority among 
accounts in division A of this Act for fiscal year 2006.
      The Senate amendment contained a similar provision (sec. 
1006) that would provide $5.0 billion in transfer authority for 
fiscal year 2006.
      The House recedes.
United States contribution to NATO common-funded budgets in fiscal year 
        2007 (sec. 1005)
      The House bill contained a provision (sec. 1004) that 
would authorize the U.S. contribution to North Atlantic Treaty 
Organization (NATO) common-funded budgets for fiscal year 2007, 
including the use of unexpended balances.
      The Senate amendment contained an identical provision 
(sec. 1005).
      The conference agreement includes this provision.
      The conferees note that this provision is necessary 
because 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.
Report on budgeting for fluctuations in fuel cost rates (sec. 1006)
      The House bill contained a provision (sec. 1005) that 
would require the Secretary of Defense to submit a report to 
the Committees on Armed Services of the Senate and the House of 
Representatives by January 15, 2007, on the fuel cost rate 
projection used in the annual Department of Defense budget.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment that would 
change the date of the required report to February 15, 2007, 
and require that the report be sent to the congressional 
defense committees.
Modification of date of submittal of OMB/CBO report on scoring of 
        outlays (sec. 1007)
      The Senate amendment contained a provision (sec. 1006) 
that would change the date of the currently required report on 
the Office of Management and Budget and the Congressional 
Budget Office outlay estimates (section 226 of title 10, United 
States Code) from January 15 to April 1 of each year.
      The House bill contained no similar provision.
      The House recedes.
Budgeting for ongoing military operations in Afghanistan and Iraq (sec. 
        1008)
      The Senate amendment contained a provision (sec. 1085) 
that would require the President to submit, pursuant to section 
1105(a) of title 31, United States Code, for each fiscal year 
after fiscal year 2007, a request for funds for ongoing 
military operations in Afghanistan and Iraq. The provision 
would also require the President to submit an estimate of all 
funds expected to be required in that fiscal year for such 
operations and a detailed justification of the funds requested.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

          Subtitle B--Policy Relating to Vessels and Shipyards

Aircraft carrier force structure (sec. 1011)
      The Senate amendment contained a provision (sec. 1011) 
that would eliminate the requirement for the naval combat 
forces of the Navy to include no fewer than 12 operational 
aircraft carriers.
      The House bill contained no similar provision.
      The House recedes with an amendment that would reduce the 
minimum number of operational aircraft carriers required by law 
to 11.
      The conferees understand that the 2006 Quadrennial 
Defense Review Report concluded that a naval force including 11 
aircraft carriers meets the combat capability requirements of 
the National Military Strategy. The conferees agree with the 
Navy's determination that the cost of maintaining 12 
operational aircraft carriers by restoring the USS John F. 
Kennedy (CV-67) to a deployable, fully mission-capable status 
would significantly impact the Chief of Naval Operations' (CNO) 
plan to build a future naval force of 313 ships. The conferees 
also agree with the Navy's proposal to inactivate the USS John 
F. Kennedy (CV-67) in fiscal year 2007. However, the conferees 
believe that it is important to retain the ability to 
reactivate the USS John F. Kennedy (CV-67) in the event that 12 
aircraft carriers are required in response to a national 
emergency.
      The conferees expect, therefore, in conjunction with 
decommissioning the USS John F. Kennedy (CV-67), that the 
Secretary of Defense, in coordination with the Supreme Allied 
Commander, Europe and the Secretary of Homeland Security, will 
evaluate the feasibility of maintaining the aircraft carrier in 
an operational status by transferring custody and control to 
the North Atlantic Treaty Organization or the Department of 
Homeland Security. The Secretary shall provide notification of 
the findings to the Committees on Armed Services of the Senate 
and the House of Representatives prior to decommissioning the 
USS John F. Kennedy (CV-67).
      The conferees further expect that, upon decommissioning 
from the U.S. Navy and completion of the ship's inactivation 
availability, the Navy will maintain CV-67 in a state of 
preservation (dehumidification, cathodic protection, and 
configuration control) pending determination of final 
disposition. In the event it is determined that CV-67 is to be 
retired from operational status, the Secretary of the Navy 
shall evaluate other alternatives for final disposition, to 
include maintenance in a reduced mobilization status, donation 
as a museum article, or striking from the naval vessel 
registry; and report the findings with the Secretary of the 
Navy's recommendation to the congressional defense committees 
not later than October 1, 2007. Under all circumstances, the 
Navy shall retain custody of CV-67 at least until commissioning 
of CVN-77. If the aircraft carrier is transferred from the 
custody and control of the Navy, the Secretary of the Navy 
shall require as a condition of such transfer that the 
transferee, upon request of the Secretary of Defense, return 
the vessel to the United States. In such a case, unless the 
transferee is otherwise notified by the Secretary of the Navy, 
the title to the vessel shall revert immediately to the United 
States.
      The conferees agree with the CNO statement in his letter 
dated August 14, 2006, to the Ranking Member of the Committee 
on Armed Services of the Senate, that ``Naval Station Mayport 
and the many resources of the Jacksonville area remain vitally 
important to Navy readiness,'' and support the CNO commitment 
``to maintaining the infrastructure necessary to support the 
strategic dispersal of the Atlantic Fleet at this key east 
coast port.'' The conferees note that the USS John F. Kennedy 
(CV-67) has served proudly in defense of freedom around the 
world, in times of peace and in war in the course of her 38 
years of service. She has brought great honor to our Nation, to 
her namesake, and to the tens of thousands of sailors who 
``stood the watch'' on her decks these many years. It is most 
fitting, therefore, that the Navy plan the decommissioning of 
the USS John F. Kennedy (CV-67) with ceremony befitting her 
distinguished history of service to our Nation.
Sense of Congress on naming the CVN-78 aircraft carrier as the USS 
        Gerald R. Ford (sec. 1012)
      The Senate amendment contained a provision (sec. 1013) 
that would require that the CVN-78 aircraft carrier shall be 
named the USS Gerald R. Ford.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the sense of Congress that the Navy should name the CVN-78 
aircraft carrier the USS Gerald R. Ford.
Transfer of naval vessels to foreign nations based upon vessel class 
        (sec. 1013)
      The House bill contained a provision (sec. 1011) that 
would allow the transfer of a specified number of ships to a 
particular nation without identification of the specific vessel 
by hull number or ship name.
      The Senate amendment contained a similar provision (sec. 
1012).
      The Senate recedes.
Overhaul, repair, and maintenance of vessels in foreign shipyards (sec. 
        1014)
      The House bill contained a provision (sec. 1012) that 
would clarify those commonwealths and possessions that are to 
be considered as part of the United States for the purposes of 
naval vessels to include Military Sealift Command vessels. The 
provision would also extend the limitations on overhaul, 
repair, and maintenance of vessels in foreign shipyards.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 7310(a) of title 10, United States Code, to require 
naval vessels homeported in Guam to be overhauled, repaired, or 
maintained in a shipyard in the United States or Guam.
Report on options for future lease arrangement for Guam Shipyard (sec. 
        1015)
      The House bill contained a provision (sec. 1013) that 
would require the Secretary of the Navy to submit a report to 
the Committees on Armed Services of the Senate and the House of 
Representatives on the Guam Shipyard. The provision would also 
require the Comptroller General to submit an evaluation of the 
Secretary of Navy's report. The provision would further require 
the awarding of contracts to the Guam Shipyard in an amount 
equal to the average amount awarded between fiscal years 1998 
and 2006.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the requirement for awarding contracts to the Guam Shipyard.
Assessments of naval vessel construction efficiencies and of 
        effectiveness of special contractor incentives (sec. 1016)
      The House bill contained a provision (sec. 1014) that 
would establish a program to provide grants and loan guarantees 
to U.S. shipbuilders to make capital investments in their 
shipbuilding processes and facilities. The provision would also 
require the Secretary of the Navy to perform annual assessments 
of the shipbuilding industrial base to determine where and to 
what extent inefficiencies exist and to what extent innovative 
design and production technologies, processes, and 
infrastructure can be developed to alleviate such 
inefficiencies.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to conduct an assessment of naval vessel 
construction to determine inefficiencies that exist; innovative 
design and production technologies, processes, and performance 
incentives that are warranted to alleviate those 
inefficiencies; and actions the Secretary intends to take to 
facilitate adoption by the shipbuilding industry of the 
technologies, processes, and performance incentives so 
identified. The amendment would also require the Secretary to 
conduct an assessment of the effectiveness of the use in naval 
construction contracts of special incentives for investment by 
the contractor in facilities and process improvement projects, 
including a description of the use of such incentives, a 
description of the process and criteria used for evaluation of 
and selection among proposed projects, progress in implementing 
selected projects, plans for applying similar contract 
incentives in future shipbuilding programs, and recommendations 
by the Secretary for enactment of legislation that might 
increase the effectiveness of, or expand the use of, such 
contract incentives. The amendment would further require that 
the Secretary submit a report on these assessments to the 
congressional defense committees not later than April 1, 2007. 
The conferees direct the Secretary to provide the congressional 
defense committees with an interim briefing on the findings of 
the assessments not later than March 1, 2007.
Obtaining carriage by vessel: criterion regarding overhaul, repair, and 
        maintenance of vessels in the United States (sec. 1017)
      The House bill contained a provision (sec. 1017) that 
would provide that the Secretary of Defense may not award any 
contract for the carriage by vessel of cargo for the Department 
of Defense, unless the contract includes a requirement under 
which the contractor shall ensure that the overhaul and repair 
work is done in a shipyard located in the United States or the 
contractor must report any repair work conducted in a shipyard 
located outside the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to issue an acquisition policy that establishes 
as a criterion, required to be considered in obtaining carriage 
by vessel of cargo for the Department, the extent to which an 
offeror of such carriage had overhaul, repair, and maintenance 
work for the offerors' vessels performed in shipyards located 
in the United States. The amendment would be limited to vessels 
that are owned, operated, or controlled by the offeror and 
qualified to engage in the carriage of cargo in the coastwise 
or non-contiguous trades. Thus, the conferees expect that the 
Secretary will establish, as an evaluation criterion in the 
award, the past accomplishment of overhaul, repair, and 
maintenance work conducted in shipyards located in the United 
States, similar to other considerations such as cost, schedule, 
capability to perform the carriage, and other independently 
weighted factors. The amendment would apply to the carriage of 
Department cargo, whether the carriage was obtained pursuant to 
charter or tariff. Further, the amendment would define the term 
``United States'' to include any State of the United States 
and, in addition, Guam.
      The conferees agree that a strong ship repair industrial 
base is vital to the national security interests of the United 
States. Accordingly, it is important that the Secretary 
maintain a current assessment of the Nation's ship repair 
capabilities and capacity and, consistent with the Secretary's 
assessment, that the Department assign value to the 
accomplishment of overhaul, repair, and maintenance work in the 
United States for the evaluation of offerors' proposals in the 
awards of contracts to carry Department cargo.
      To guide formulation and implementation of the 
Secretary's acquisition policy, the Secretary shall conduct an 
assessment of the ship repair industrial base, to include: (1) 
a determination of ship repair requirements to support the 
National Military Strategy; (2) an evaluation of the repair 
industrial base's critical capabilities, capacity, competitive 
sourcing, geographical disposition; and (3) other critical 
factors as measured against the determined requirements. The 
Secretary shall submit a report on the results of the 
assessment to the congressional defense committees not later 
than June 1, 2007.
Riding gang member requirements (sec. 1018)
      The House bill contained a provision (sec. 1018) that 
would prohibit the Secretary of Defense from awarding a charter 
or a contract for carriage of defense cargo unless the charter 
or contract requires that each riding gang member that performs 
any work on the vessel during the effective period of the 
charter or contract holds a merchant mariner's document issued 
by the United States Coast Guard. The provision would also 
allow the Secretary to issue regulations to exempt a riding 
gang member from the above requirement under limited 
circumstances, and then only if a background check is 
performed.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
incorporate by reference certain limited provisions contained 
in section 8106 of title 46, United States Code, relating to 
general restrictions on the use of riding gangs on U.S. 
documented vessels. The amendment would also clarify, for those 
vessels carrying defense cargoes, the categories of individuals 
who may be exempted under regulation from the requirement to 
hold a merchant mariner's document issued by the United States 
Coast Guard. These individuals, who will be required to have 
either a background check or possess a merchant mariner's 
document, include supercargo personnel, force protection 
personnel, specialized repair technicians, and other 
individuals required to be aboard the vessel. The amendment 
would further make clear that individuals engaged in the 
general operation or maintenance, whether designated members of 
the vessel's crew or not, must possess a merchant mariner's 
document issued by the United States Coast Guard if the vessel 
is carrying defense cargoes.
Authority to transfer SS Arthur M. Huddell to the Government of Greece 
        (sec. 1019)
      The Senate amendment contained a provision (sec. 1014) 
that would authorize the Secretary of Transportation to 
transfer the ex-Liberty ship SS Arthur M. Huddell, by gift to 
the government of Greece. The provision would also authorize 
the Secretary to convey additional equipment from other 
obsolete vessels of the National Defense Reserve Fleet for 
purposes of a museum exhibit.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the President to transfer the SS Arthur M. Huddell to the 
government of Greece, and to convey additional equipment from 
other obsolete vessels of the National Defense Reserve Fleet, 
in accordance with such terms and conditions as the President 
may determine. As a condition of the transfer of the vessel, 
the President shall require, to the maximum extent practicable, 
that the government of Greece have such repair or refurbishment 
of the vessel, as is necessary for the safe transit of the 
vessel to its ultimate destination, be performed at a shipyard 
located in the United States.

                  Subtitle C--Counter Drug Activities

Extension of authority of Department of Defense to provide additional 
        support for counterdrug activities of other governmental 
        agencies (sec. 1021)
      The Senate amendment contained a provision (sec. 1022) 
that would authorize a 5-year extension in the current 
authorities of the Department of Defense to assist the 
counterdrug activities of any other department or agency of the 
Federal Government or any other State, local, or foreign law 
enforcement agency through 2011.
      The House bill contained no similar provision.
      The House recedes.
Extension and expansion of Department of Defense authority to provide 
        support for counter-drug activities of certain foreign 
        governments (sec. 1022)
      The Senate amendment contained a provision (sec. 1023) 
that would extend and expand certain authorities of the 
Department of Defense to support the counterdrug activities of 
other countries. The provision would: (1) extend current 
authorities for 2 years; (2) add 15 countries that are situated 
either along key drug smuggling routes or are facing an 
increasing threat of narco-terrorism to the list of countries 
eligible for support; (3) expand the types of equipment and 
supplies that can be provided for counterdrug support to 
include vehicles, aircraft, and detection and monitoring 
equipment; and (4) double the funding limit for counterdrug 
support through fiscal year 2011 from $40.0 million to $80.0 
million. The provision would also require the Secretary of 
Defense to seek concurrence of the Secretary of State on 
matters of counterdrug support to foreign nations and provide a 
report to designated congressional committees on support 
provided to each foreign government.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
reduce the number of additional countries authorized to receive 
this support from 15 to 7; (2) reduce the funding limit to 
$60.0 million; (3) authorize, for calendar years 2007 and 2008 
only, the transfer, to Afghanistan only, of individual and 
crew-served weapons of 50 caliber or less, and the ammunition 
for such weapons for counter-narcotics security forces only; 
and (4) require the Secretary of Defense to consult with, 
instead of seek the concurrence of, the Secretary of State.
Extension of authority to support unified counterdrug and 
        counterterrorism campaign in Colombia (sec. 1023)
      The House bill contained a provision (sec. 1023) that 
would extend the authority to support the unified counterdrug 
and counterterrorism campaign in Colombia through fiscal year 
2008, as provided in the Ronald W. Reagan National Defense 
Authorization Act for Fiscal Year 2005 (Public Law 108-375).
      The Senate amendment contained a similar provision (sec. 
1021).
      The Senate recedes.
Continuation of reporting requirement regarding Department of Defense 
        expenditures to support foreign counterdrug activities (sec. 
        1024)
      The House bill contained a provision (sec. 1024) that 
would extend by 1 year the requirement for the Secretary of 
Defense to submit a report detailing the expenditure of funds 
by the Secretary during fiscal year 2006.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would extend 
the reporting requirement through fiscal year 2007, and require 
the report to be submitted to the Committee on Foreign 
Relations of the Senate and the Committee on International 
Relations of the House of Representatives.
Report on interagency counter-narcotics plan for Afghanistan and South 
        and Central Asian regions (sec. 1025)
      The House bill contained a provision (sec. 1025) that 
would require the Secretary of Defense to submit a report to 
the congressional defense committees on interagency counterdrug 
implementation plans for Afghanistan and 10 other countries in 
south and central Asia.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would add 
Armenia to the list of countries in the report, and clarify 
other matters included in the report.
Report on United States support for Operation Bahamas, Turks & Caicos 
        (sec. 1026)
      The Senate amendment contained a provision (sec. 1024) 
that would require the Secretary of Defense to submit a report 
to Congress outlining the plan for continued United States 
Government support to Operation Bahamas, Turks & Caicos not 
later than 30 days prior to implementing a decision to withdraw 
Department of Defense helicopters from this counterdrug 
program.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

         Subtitle D--Force Structure and Defense Policy Matters

Improvements to Quadrennial Defense Review (sec. 1031)
      The Senate amendment contained a provision (sec. 1083) 
that would amend section 118 of title 10, United States Code, 
to require: (1) analysis and recommendations in the Quadrennial 
Defense Review (QDR) that are not constrained to comply with 
the President's budget submission; (2) an identification of 
specific capabilities, including the general number and type of 
specific military platforms required to achieve strategic and 
warfighting objectives; (3) an independent assessment of the 
QDR and the submission of the results of the assessment to 
Congress; and (4) a more comprehensive risk assessment from the 
Chairman of the Joint Chiefs of Staff (CJCS) that describes the 
additional capabilities needed to reduce the risks identified 
in the CJCS risk assessment.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
appointment process for the independent panel, and expand the 
scope of the review to include an assessment of the homeland 
defense and support to civil authorities missions of the active 
and reserve components of the armed forces, including the 
organizations and capabilities required for the active and 
reserve components to discharge their missions. The latter was 
included as a separate provision in the Senate amendment (sec. 
925).
Quarterly reports on implementation of 2006 Quadrennial Defense Review 
        Report (sec. 1032)
      The House bill contained a provision (sec. 1035) that 
would require the Secretary of Defense to submit a quarterly 
report on the implementation of recommendations described in 
the 2006 Quadrennial Defense Review Report. The first report 
shall be submitted not later than January 31, 2007.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Report on feasibility of establishing a regional combatant command for 
        Africa (sec. 1033)
      The Senate amendment contained a provision (sec. 1070C) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees, not later than 180 
days after the date of the enactment of this Act, on the 
feasibility and advisability of establishing a regional 
combatant command for Africa.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Determination of Department of Defense intratheater and intertheater 
        airlift requirements and sealift mobility requirements (sec. 
        1034)
      The House bill contained a provision (sec. 1043) that 
would require the Secretary of Defense to submit a report to 
the congressional defense committees not later than February 1, 
2007, on the intratheater and intertheater airlift and sealift 
mobility requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Presidential report on improving interagency support for United States 
        21st century national security missions and interagency 
        operations in support of stability, security, transition, and 
        reconstruction operations (sec. 1035)
      The House bill contained a provision (sec. 1034) that 
would require the President to submit a report to Congress on 
building interagency capacity and enhancing the integration of 
civilian and military capabilities to achieve U.S. national 
security goals and objectives. The report should include 
recommendations for specific legislative proposals to improve 
interagency coordination.
      The Senate amendment contained a similar provision (sec. 
1222) that would require the President to develop a plan to 
establish interagency operating procedures for Federal agencies 
to plan and conduct stabilization and reconstruction 
operations.
      The Senate recedes with an amendment that would delete 
the sense of Congress, and merge the two provisions into a 
single report. The amendment would also make other clarifying 
changes.
      The conferees recognize that the United States faces a 
more diverse set of national security challenges than those 
faced during the Cold War, and that the major national security 
institutions designed for the Cold War lack adequate capacity 
to address the security challenges of the 21st century. Since 
2002, the administration has developed several strategy 
documents that set forth broad U.S. national security goals and 
objectives to address new and emerging security challenges. The 
administration has also taken initial steps to institutionalize 
lessons learned since the September 11, 2001, terrorist attacks 
on the United States, including the establishment of the 
Department of Homeland Security, the U.S. Northern Command, and 
the Office of Reconstruction and Stabilization, as well as the 
creation of the positions of the Assistant Secretary of Defense 
for Homeland Defense, the Under Secretary of Defense for 
Intelligence, and the Director of National Intelligence.
      The conferees believe that the executive branch and 
Congress must take additional steps to lay the foundation and 
strengthen Federal institutions to ensure that interagency 
structures, policies, and processes support integrated planning 
and unified action in response to 21st century national 
security challenges. The conferees also believe that the United 
States Government should bring to bear all elements of national 
power to achieve its national security objectives. This will 
require strengthening the capacity of Federal departments and 
agencies to conduct interagency operations. In developing the 
required report, the conferees urge the executive branch to 
consult with State and local agencies, and other national 
security experts, as appropriate, on the types of interagency 
capabilities that the Federal Government should develop to 
address current and future security challenges. The report 
required by this section will provide the Congress with a 
baseline assessment of the capacities and capabilities of the 
Federal departments and agencies to carry out the full range of 
national security missions. The conferees intend to use this 
information in helping to develop and implement strategies that 
will improve the ability of the Federal departments and 
agencies to participate, as appropriate, in the full range of 
national security missions.
      Further, the conferees note that the United States 
Government lacks a standard, integrated approach to the 
planning and conduct of interagency operations. The conferees 
express the view that: (1) the President should provide clear 
guidance to United States Government agencies to manage complex 
operations and establish a standard, integrated approach to the 
planning and conduct of interagency operations to ensure a 
coherent and unified United States Government response to 
contingency operations; (2) civilian agencies of the United 
States Government should expand their capacity to participate, 
as appropriate, in national security missions and, more 
specifically, to plan, coordinate, and conduct stability, 
security, transition, and reconstruction operations, including 
their capacity to deploy rapidly, and for sustained periods of 
time, trained personnel to support such operations in the 
field; and (3) all the relevant United States Government 
agencies should include in their budget requests for future 
fiscal years adequate funding for planning and preparing to 
support contingency operations and, as necessary, request 
emergency supplemental funds for unanticipated contingency 
operations.

                          Subtitle E--Reports

Additional element in annual report on chemical and biological warfare 
        defense (sec. 1041)
      The Senate amendment contained a provision (sec. 1063) 
that would direct the Department of Defense to include a new 
element in the annual report on the Department's chemical and 
biological defense program, as required by section 1703 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160). The new element would be a description of the 
coordination and integration of the Defense Advanced Research 
Projects Agency (DARPA) research and development efforts on 
chemical and biological warfare defense with the Department's 
chemical and biological defense program, including the degree 
to which the DARPA program supports the objectives and 
requirements of the overall program, and the means by which the 
Department determines the level of coordination and support 
provided by DARPA to the Department's overall program.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on biodefense human capital requirements in support of biosafety 
        laboratories (sec. 1042)
      The Senate amendment contained a provision (sec. 1070) 
that would require the Secretary of Defense to study and report 
to Congress on the requirements for personnel and training at 
current and planned national biodefense laboratories at 
Biosafety Levels 3 and 4, including the number of personnel, by 
discipline, and the training required to provide qualified 
personnel for such laboratories.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
report to Department of Defense personnel and training 
requirements, and expand the elements of the report to include 
recruitment and retention plans.
Report on technologies for neutralizing or defeating threats to 
        military rotary-wing aircraft from portable air defense systems 
        and rocket-propelled grenades (sec. 1043)
      The Senate amendment contained a provision (sec. 1068) 
that would require the Secretary of Defense to submit a report 
to Congress, not later than 180 days after the date of the 
enactment of this Act, on technologies for neutralizing or 
defeating threats to military rotary-wing aircraft from 
portable air defense systems and rocket-propelled grenades that 
are being researched, developed, employed, or considered by the 
United States Government or the North Atlantic Treaty 
Organization.
      The House bill contained no similar provision.
      The House recedes with a technical amendment. The 
conferees expect the Secretary to submit a thorough classified 
report that includes technologies developed under classified 
programs.
Reports on expanded use of unmanned aerial vehicles in the National 
        Airspace System (sec. 1044)
      The Senate amendment contained a provision (sec. 1070D) 
that would make certain findings regarding the operational 
reliability of unmanned systems in support of national security 
missions and the potential for unmanned systems in support of 
border security and homeland defense missions. The provision 
would require the Secretary of Defense to report to Congress on 
efforts to support the Federal Aviation Administration (FAA) in 
the development of a policy on the testing and operation of 
unmanned vehicles in the National Airspace System.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
reporting requirement for the Department of Defense, and would 
require the FAA to submit a report on progress in developing a 
policy for testing and a plan for achieving wider access by 
unmanned aerial vehicles that are appropriately equipped to 
operate in the National Airspace System.
Report on incentives to encourage certain members and former members of 
        the armed forces to serve in the Bureau of Customs and Border 
        Protection (sec. 1045)
      The Senate amendment contained a provision (sec. 1066) 
that would require, not later than 60 days after the date of 
the enactment of this Act, the Secretary of Homeland Security 
and the Secretary of Defense to jointly submit to Congress a 
report assessing the desirability and feasibility of offering 
incentives to members of the reserve components of the armed 
forces and former members of the armed forces within 2 years of 
separation from service to encourage such persons to serve in 
the Bureau of Customs and Border Protection of the Department 
of Homeland Security. For the purposes of the report, the 
Secretary of Homeland Security and the Secretary of Defense 
would consider such incentives as the Secretaries jointly 
consider appropriate, including whether or not such incentives 
are monetary, and whether or not such incentives are currently 
authorized by law or regulations. The provision would require 
that the Secretaries give particular attention to the utility 
of such incentives in encouraging service by members and former 
members of the armed forces who provided border patrol or 
border security assistance as part of their duties as members 
of the armed forces, and leveraging military training and 
experience by accelerating training, or allowing credit to be 
applied to related areas of training, which is required for 
service with the Bureau of Customs and Border Protection. The 
provision would require that in assessing the incentives the 
Secretaries assume that any costs of such incentives would be 
borne by the Department of Homeland Security.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Repeal of certain report requirements (sec. 1046)
      The House bill contained a provision (sec. 661) that 
would repeal the requirement for an annual report under section 
1015 of title 37, United States Code, regarding the effects of 
certain recruitment and retention initiatives taken in fiscal 
year 2000.
      The Senate amendment contained a provision (sec. 1065) 
that would repeal the requirement not only for the foregoing 
report under section 1015, but also for: (1) the annual report 
on aviation career incentive pay under section 301a of title 
37, United States Code; (2) the report of the Secretary of 
Defense's recommendation on the need for Department of Defense 
review of proposed federal agency actions to consider possible 
impact on national defense; (3) the report on a pilot program 
to enhance military recruiting by improving military awareness 
of school counselors and educators; (4) the annual report on 
the activities of the Medical Informatics Advisory Committee 
and on coordination of informatics systems within the Federal 
Government; and (5) the reporting requirement associated with 
changes made by service academies in the amount of authorized 
charges or fees.
      The House recedes with an amendment that would delete the 
provision regarding repeal of the report on imposition of 
additional charges or fees for attendance at certain academies.
Requirement for identification of recently enacted recurring reporting 
        requirements applicable to the Department of Defense (sec. 
        1047)
      The Senate amendment contained a provision (sec. 1067) 
that would require the Secretary of Defense to submit to the 
congressional defense committees, not later than March 1, 2007, 
a report on recurring reports that are required to be 
submitted, by the Department of Defense or any element thereof, 
to those committees by any provision of law enacted on or after 
the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136). The provision 
would require that the Secretary describe each such report, 
assess its utility from the perspective of the Department, and 
give a recommendation as to the advisability of repealing the 
requirement for its submission.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) limit 
the reports covered by the provision to those enacted on or 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2004 and before February 1, 
2007; (2) require the Secretary to include an assessment of the 
burden imposed on the Department (or an element thereof) by the 
preparation of the report; and (3) require the Secretary to 
submit his recommendations as to the modification, as well as 
the repeal, of individual reports.

 Subtitle F--Miscellaneous Authorities and Limitations on Availability 
                            and Use of Funds

Acceptance and retention of reimbursement from non-Federal sources to 
        defray Department of Defense costs of conferences (sec. 1051)
      The Senate amendment contained a provision (sec. 1051) 
that would authorize the Department of Defense to accept and 
retain reimbursement from non-Federal sources for its 
conference costs. The provision would further require the 
Secretary of Defense to report to the congressional defense 
committees on the use of the authority granted by this 
provision.
      The House bill contained no similar provision.
      The House recedes with a technical amendment that would 
clarify that fees collected in excess of conference costs shall 
be deposited into the Treasury as miscellaneous receipts.
Increased flexibility in use of funds for Joint Staff exercises (sec. 
        1052)
      The Senate amendment contained a provision (sec. 1053) 
that would increase the flexibility of the Chairman of the 
Joint Chiefs of Staff to use funds earmarked for the Chairman's 
joint exercise program to be available for expenses relating to 
self-deploying watercraft under the jurisdiction of a military 
department; port support activities; prepositioned watercraft; 
and lighterage for joint logistics and over the shore 
exercises.
      The House bill contained no similar provision.
      The House recedes.
Prohibition on parking of funds (sec. 1053)
      The Senate amendment contained a provision (sec. 1007) 
that would prohibit any officer or employee of the Department 
of Defense from directing the allocation of funds in the 
President's budget or supporting documents with the knowledge 
or intent that the funds would not be used for the purpose for 
which they are allocated. A violation of this prohibition would 
be subject to the same penalties as a violation of the Anti-
Deficiency Act, as codified in section 1341 of title 31, United 
States Code.
      The House bill contained no similar provision.
      The House recedes.
Modification of authorities relating to the Special Inspector General 
        for Iraq Reconstruction (sec. 1054)
      The Senate amendment contained a provision (sec. 1054) 
that would expand the authority of the Special Inspector 
General for Iraq Reconstruction (SIGIR) by considering any 
funds appropriated or made available in the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006 (Public Law 109-234) for 
relief and reconstruction in Iraq as part of the Iraqi Relief 
and Reconstruction Fund (IRRF), and under the jurisdiction of 
the SIGIR, regardless of the source of the funds.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the additional SIGIR jurisdiction is limited to U.S. funds 
and would provide a sunset date of October 1, 2007, for the 
Office of the SIGIR, with transition operations authorized to 
continue through December 31, 2007.
      The conferees support the comprehensive audit efforts of 
the SIGIR and believe the office continues to perform a 
critical function as long as significant resources flow to Iraq 
reconstruction and until a transition plan is in place to 
return to regular order. The conferees direct the SIGIR, 
jointly with the Inspectors General of the Departments of State 
and Defense and the Inspector General of the U.S. Agency for 
International Development (USAID), to develop and submit such a 
transition plan to Congress by April 1, 2007. The plan should 
ensure maintenance and accountability of all accumulated 
records and minimal, if any, disruption in the ability to 
oversee reconstruction funding or other U.S. assistance to 
Iraq. The plan should include a process and time line for 
transfer of open audits and investigations to the appropriate 
Departments of Defense, State or USAID office and should 
consider various contingency scenarios which may impact the 
transition time line. The conferees recognize that a 
significant change in the assumptions underlying this 
provision, such as a major new commitment of U.S. funds for 
Iraq reconstruction, would require changes to the transition 
plan and time line.

                Subtitle G--Matters Involving Detainees

Provision of information to Congress on certain criminal investigations 
        and prosecutions involving detainees (sec. 1061)
      The House bill contained a provision (sec. 1039) that 
would amend subsection (c) of section 1093 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 
(Public Law 108-375) to expand the reporting requirements to 
include: (1) a detailed and comprehensive description of 
investigations or prosecutions and any resulting punishments; 
and (2) information about any officer nominated for command or 
for promotion to a position requiring the advice and consent of 
the Senate who has been the subject of any investigation or 
prosecution regarding the treatment of detainees.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the requirement to provide information on any officer nominated 
to a position subject to confirmation by the Senate. The 
amendment would also require that the information on a member 
of the United States Armed Forces being investigated or 
prosecuted for allegations of mistreatment of detainees include 
the grade of the service member at: (1) the time of the 
incident resulting in the investigation or the prosecution; (2) 
the beginning of the investigation or the prosecution; and (3) 
the time of the submission of the report.

                       Subtitle H--Other Matters

Technical and clerical amendments (sec. 1071)
      The House bill contained a provision (sec. 1037) that 
would make technical and clerical amendments to various 
provisions of law.
      The Senate amendment contained a similar provision (sec. 
1073).
      The Senate recedes with an amendment that would 
incorporate the provisions of section 1073, and would make 
certain additional technical and clerical amendments.
Revision to authorities relating to Commission on the Implementation of 
        the New Strategic Posture of the United States (sec. 1072)
      The House bill contained a provision (sec. 1031) that 
would expand the scope of the commission on the implementation 
of the New Strategic Posture of the United States, as required 
in section 1051 of the National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163), to examine the strategic 
posture of the United States through 2025, and extend the 
mandate of the commission until 18 months after the date of the 
commission's first meeting.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would extend 
the due date for the commission's report until September 30, 
2007, but not expand the scope of the study beyond 2008.
Revised deadline for submission of final report of EMP Commission (sec. 
        1073)
      The House bill contained a provision (sec. 1040) that 
would direct the Electromagnetic Pulse (EMP) Attack Commission, 
reestablished by section 1042 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) to 
change its final report date from June 30, 2007, to 18 months 
after commencement of commission activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would change 
the final report date from June 30, 2007, to September 30, 
2007.
Extension of returning worker exemption to H-2B numerical limitation 
        (sec. 1074)
      The Senate amendment contained a provision (sec. 1091) 
that would amend section 402(b)(1) of the Save Our Small and 
Seasonal Businesses Act of 2005 (8 U.S.C. 1184 note) to extend 
a returning worker program by 2 years, from October 1, 2006, to 
October 1, 2008.
      The House bill contained no similar provision.
      The House recedes with an amendment that would amend 
section 214(g)(9) of the Immigration and Nationality Act to 
extend the program by 1 year, to October 1, 2007, and to repeal 
a prior sunset provision. The amendment is effective on October 
1, 2006.
Patent term extensions for the badges of the American Legion, the 
        American Legion Women's Auxiliary, and the Sons of the American 
        Legion (sec. 1075)
      The Senate amendment contained a provision (sec. 1094) 
that would renew and extend for a term of 14 years the design 
patents for the badges of the American Legion, the American 
Legion Women's Auxiliary, and the Sons of the American Legion.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Use of the Armed Forces in major public emergencies (sec. 1076)
      The Senate amendment contained a provision (sec. 1042) 
that would amend chapter 15 of title 10, United States Code, 
the so-called ``Insurrection Act,'' to clarify and update the 
statute, and to make corresponding changes to other provisions 
of law. Chapter 15 contains a collection of statutes dating to 
the 18th and 19th centuries that authorize the use of the armed 
forces to put down insurrections, enforce Federal authority, 
and suppress conspiracies that interfere with the enforcement 
of Federal or State law.
      The provision would amend section 333 of title 10, United 
States Code, to authorize the President, in any situation in 
which he determined that, as a result of a natural disaster, 
terrorist attack or incident, epidemic or other serious public 
health emergency, or other condition, domestic violence 
occurred to such an extent that the constituted authorities of 
the State are incapable of maintaining public order, and the 
violence obstructed the execution of the laws of the United 
States or impeded the course of justice thereunder, to use the 
armed forces, including the National Guard in Federal service, 
to restore public order and enforce the laws of the United 
States until the State authorities are again capable of 
maintaining order. The President is to notify Congress of his 
determination to exercise this authority as soon as possible 
and every 15 days thereafter as long as the authority is 
exercised.
      The provision would also amend chapter 152 of title 10, 
United States Code, to authorize the President, in any 
situation in which he determines to exercise the authority set 
out above, to direct the Secretary of Defense to provide 
supplies, services, and equipment necessary for the immediate 
preservation of life and property. Such supplies, services, and 
equipment may be provided: (1) only to the extent that the 
constituted authorities of the State are unable to provide 
them; (2) only until other departments and agencies of the 
United States charged with such responsibilities are able to 
provide them; and (3) only to the extent that their provision 
will not interfere with preparedness or ongoing operations. 
This authority is not subject to the provisions of section 
403(c) of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170b(c)).
      The provision would further include a conforming 
amendment to section 12304(c) of title 10, United States Code, 
to remove a restriction on the use of the Presidential Selected 
Reserve callup authority in chapter 15 or natural disaster 
situations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
conforming amendment to section 12304(c) to provide that the 
Presidential Selected Reserve callup authority could be used in 
situations arising under chapter 15 and section 12406 of title 
10, United States Code, as well as in situations set out in 
subsection (b) of section 12304.
Increased hunting and fishing opportunities for members of the Armed 
        Forces, retired members, and disabled veterans (sec. 1077)
      The House bill contained a provision (sec. 1036) that 
would require the Secretary of Defense to ensure that service 
members, military retirees, disabled veterans, and persons 
assisting disabled veterans are able to utilize lands under the 
jurisdiction of the Department of Defense that are available 
for hunting and fishing. The provision would also require the 
Secretary of Defense to submit a report to Congress, not later 
than 180 days after the date of the enactment of this Act, on 
actions necessary to increase the availability of lands under 
the jurisdiction of the Department to such persons for hunting 
and fishing activities. The provision would further require the 
Secretary of the Interior to cease the plan to exterminate deer 
and elk on Santa Rosa Island, California by helicopter, and 
prohibit the Secretary of the Interior from exterminating or 
nearly exterminating the deer and elk on the island.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees note that the Wounded Warrior Project, an 
organization whose mission is to raise public awareness and 
enlist the public's aid for the needs of severely injured 
service members, supports this provision.

                   Legislative Provision Not Adopted

Sense of the Senate on the Transformational Medical Technology 
        Initiative
      The Senate amendment contained a provision (sec. 763) 
that would express the sense of the Senate that the 
Transformational Medical Technology Initiative (TMTI) is an 
important effort to provide needed capability within the 
Department of Defense to field effective broad-spectrum 
countermeasures against a significant array of current and 
future biological warfare threats.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note the following: (1) the 2006 
Quadrennial Defense Review Report identified the need to 
develop broad-spectrum medical countermeasures against the 
threat of genetically engineered bioterror agents; (2) the TMTI 
initiative is intended to invest in cutting edge 
transformational medical technologies and apply them to address 
the challenges of known, emerging, and future bioengineered 
threats; and (3) the TMTI is designed to provide such 
technologies in a much shorter timeframe, and at lower cost, 
than is required with traditional biomedical approaches. The 
conferees further emphasize the need for innovative 
technological approaches to achieve broad-spectrum medical 
countermeasures as a necessary component of the Department's 
program to provide chemical and biological defense and force 
protection capabilities to the armed forces.
Incorporation of classified annex
      The Senate amendment contained a provision (sec. 1008) 
that would incorporate a classified annex.
      The House bill contained no similar provision.
      The Senate recedes.
Reports to Congress and notice to public on earmarks in funds available 
        to the Department of Defense
      The Senate amendment contained a provision (sec. 1009) 
that would require notice to Congress and the public on 
earmarks of funds available to the Department of Defense.
      The House bill contained no similar provision.
      The Senate recedes.
Transfer of operational control of certain Patrol Coastal ships to 
        Coast Guard
      The House bill contained a provision (sec. 1015) that 
would require the Secretary of the Navy to enter into an 
agreement with the Commandant of the Coast Guard for the 
transfer of operational control of not less than five 179 foot 
Cyclone class Patrol Coastal ships for a period extending at 
least through September 30, 2012.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are aware that Cyclone class Patrol Coastal 
ships have proven to be extremely valuable to both the Navy and 
the Coast Guard in the performance of their respective missions 
of Homeland defense and the global war on terror. The conferees 
agree that the assignment of the Patrol Coastal ships to the 
Navy and the Coast Guard must reflect a joint prioritization of 
the respective mission requirements, including an assessment of 
alternatives to fulfill those requirements. Accordingly, the 
conferees direct the Secretary of the Navy, in consultation 
with the Secretary of the department in which the Coast Guard 
is operating, to submit a report to Congress, not later than 
March 30, 2007. The report shall:
      (1) identify validated mission requirements for both 
Coast Guard patrol boats and Navy Patrol Coastal ships through 
2012;
      (2) identify a specific program plan, including 
alternatives to meet Coast Guard Deepwater patrol boat 
requirements through 2012;
      (3) identify a specific program plan, including 
alternatives to meet Navy Patrol Coastal ship requirements 
through 2012;
      (4) describe the impact to Navy operational requirements 
if the Patrol Coastal ships currently being operated by the 
Coast Guard remain with the Coast Guard to support the Coast 
Guard mission; and
      (5) identify areas of overlap between the Coast Guard's 
patrol boat requirements and the Navy's Patrol Coastal ship 
requirements in terms of logistics, operations, and 
maintenance.
Limitation on leasing of foreign-built vessels
      The House bill contained a provision (sec. 1016) that 
would amend section 2401 of title 10, United States Code, to 
prohibit the Secretary of a military department from entering 
into a contract for lease or charter of a vessel for a term of 
more than 24 months, including all options to renew or extend 
the contract, if the hull or superstructure of that vessel was 
constructed in a foreign shipyard.
      The Senate amendment contained no similar provision.
      The House recedes.
Restatement in title 10, United States Code, and revision of Department 
        of Defense authority to provide for support for counterdrug 
        activities of Federal, State, local, and foreign law 
        enforcement
      The House bill contained a provision (sec. 1021) that 
would codify Department of Defense authority to provide for 
support for counterdrug activities of Federal, state, local, 
and foreign law enforcement.
      The Senate amendment contained no similar provision.
      The House recedes.
Restatement in title 10, United States Code, and revision of Department 
        of Defense authority to provide for support for counterdrug 
        activities of certain foreign governments
      The House bill contained a provision (sec. 1022) that 
would codify and expand the Department of Defense authority to 
provide support for counterdrug activities of certain foreign 
governments. The provision would: (1) add six additional 
countries to the list of countries authorized to receive this 
support; (2) allow for the transfer of individual and crew-
sized weapons of 50 caliber or less to Afghanistan in fiscal 
years 2007 and 2008; (3) provide ammunition for the weapons 
provided to Afghanistan; and (4) limit the total amount of 
funding available to be obligated and expended to $60.0 million 
in fiscal years 2007 and 2008.
      The Senate amendment contained no similar provision.
      The House recedes.
Assignment of members of the Armed Forces to assist Bureau of Customs 
        and Border Protection and United States Immigration and Customs 
        Enforcement
      The House bill contained a provision (sec. 1026) that 
would authorize the Secretary of Defense to assign members of 
the Armed Forces to assist the Bureau of Customs and Border 
Protection and the United States Immigration and Customs 
Enforcement with their homeland security missions.
      The Senate amendment contained no similar provision.
      The House recedes.
Funding for a certain intelligence program
      The Senate amendment contained a provision (sec. 1036) 
that would: (1) increase by $450.0 million in Research, 
Development, Test, and Evaluation, Defense-wide and (2) 
decrease by $450.0 million in PE 0305159 for a classified 
program described on page 34 of Volume VII (Compartmented 
Annex) of the Fiscal Year 2007 Military Intelligence Program 
justification book.
      The House bill contained no similar provision.
      The Senate recedes.
Department of Defense operational plans for Armed Forces support for 
        civil authorities
      The House bill contained a provision (sec. 1044) that 
would require the Secretary of Defense, in coordination with 
the Secretary of Homeland Security and State governments, to 
develop detailed operational plans regarding the use of the 
Armed Forces to support to civil authorities.
      The Senate amendment contained no similar provision.
      The House recedes.
Temporary National Guard support for securing the southern land border 
        of the United States
      The Senate amendment contained a provision (sec. 1044) 
that would authorize the Governor of a State, with the approval 
of the Secretary of Defense, to order any units or personnel of 
the National Guard of such State to annual training duty or 
other duty under section 502 of title 32, United States Code, 
to carry out in any State along the southern land border of the 
United States specified activities for the purpose of securing 
the border.
      The House bill contained no similar provision.
      The Senate recedes.
Minimum annual purchase amounts for airlift from carriers participating 
        in the Civil Reserve Air Fleet
      The Senate amendment contained a provision (sec. 1052) 
that would allow the Department of Defense to guarantee higher 
minimum levels of business to U.S. Civil Reserve Air Fleet 
carriers than are currently authorized by law.
      The House bill contained no similar provision.
      The Senate recedes.
Report on clarification of prohibition on cruel, inhuman, and degrading 
        treatment or punishment
      The Senate amendment contained a provision (sec. 1061) 
that would require the President of the United States to submit 
a report to the congressional defense committees that sets 
forth unclassified legal opinions on whether certain 
interrogation techniques constitute cruel, inhuman, or 
degrading treatment, or punishment, as defined in the Detainee 
Treatment Act of 2005 (Public Law 109-63), not later than 90 
days after the date of the enactment of this Act. The provision 
would require that the legal opinions be disseminated to all 
departments and agencies of the Federal Government.
      The House bill contained no similar amendment.
      The Senate recedes.
Reports on Department of Justice efforts to investigate and prosecute 
        cases of contracting abuse in Iraq, Afghanistan, and throughout 
        the war on terror
      The Senate amendment contained a provision (sec. 1069) 
that would require the Attorney General to submit semiannual 
reports to the congressional defense committees and other 
relevant committees on Department of Justice efforts to 
investigate and prosecute cases of contracting abuse in Iraq, 
Afghanistan, and throughout the war on terror. Each report 
would be required to include: (1) a description of organized 
efforts of the Department to address such cases; (2) 
information on the specific number of personnel, financial 
resources, and workdays devoted; (3) a detailed description of 
any internal task force; (4) a detailed description of any 
interagency task force; (5) the names of senior officials 
directly responsible for oversight; (6) specific information on 
the numbers of investigators and other personnel working on 
these cases; (7) specific information on the number of 
investigations, including grand jury investigations, underway; 
(8) specific information on the number and status of criminal 
cases; (9) specific information on the number and status of 
civil cases; (10) Specific information on resolved civil and 
criminal cases on the issue; and (11) the Department's best 
estimate of the scale of the problem.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees direct the Attorney General to provide the 
relevant congressional committees, by no later than 6 months 
after the date of the enactment of this Act, a written 
assessment of the level of resources dedicated by the 
Department to the investigation and prosecution of alleged 
fraud cases arising out of contracting abuses in Iraq, 
Afghanistan, and the global war on terrorism.
National Foreign Language Coordination Council
      The Senate amendment contained a provision (sec. 1081) 
that would establish a National Foreign Language Coordination 
Council to develop and monitor the implementation of a 
comprehensive national foreign language strategy.
      The House bill contained no similar provision.
      The Senate recedes.
Court security improvements
      The Senate amendment contained a provision (sec. 1086) 
that would amend title 28, United States Code, to ensure 
consultation between the United States Marshals Service and the 
Judicial Conference of the United States on security 
requirements for the judicial branch of the United States 
Government; amend the Ethics in Government Act to expand 
protections for certain reports; establish a new federal 
criminal offense prohibiting retaliating against a federal 
judge or law enforcement officer by filing false liens or 
encumbrances against his property; establish a new federal 
criminal offense of misuse of certain personal information 
about judges, law enforcement officials, jurors, witnesses, or 
court officers; authorize grants to State and local government 
for witness protection programs; and expand the eligibility of 
State courts for certain federal grants.
      The House bill contained no similar provision.
      The Senate recedes.
Improved accountability for competitive contracting in hurricane 
        recovery
      The Senate amendment contained a provision (sec. 1088) 
that would prohibit the use of certain exceptions (including 
the urgent and compelling exception) to competition 
requirements under the Competition in Contracting Act in 
connection with relief and recovery efforts related to 
Hurricane Katrina and the other hurricanes of the 2005 season.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees recognize that the urgent and compelling 
exception to competition requirements under the Competition in 
Contracting Act (codified in 10 U.S.C. 2304(c)(2) and section 
303(c)(2) of the Federal Property and Administrative Services 
Act of 1949 (41 U.S.C. 253(c)(2)) is vulnerable to abuse in 
response to natural disasters, including hurricanes. The 
conferees are aware of cases in which sole-source contracts 
have been awarded on the basis of the urgent and compelling 
exception months after a natural disaster takes place. In other 
cases, urgent and compelling circumstances arising out of a 
natural disaster have been used as the basis for long-term, 
sole-source contracts that extend beyond what can be justified 
on the basis of the disaster.
      The potential for such problems is not unique to relief 
and recovery efforts related to Hurricane Katrina or to natural 
disasters. The conferees believe that this issue should be 
addressed in a systematic matter through the Federal 
Acquisition Regulation and other procurement guidance 
documents, rather than through legislation limited to a 
specific set of contracts.
      As a general rule, the urgent and compelling exception 
should be used to award a contract only on the basis of an 
event, or series of events, that is reasonably proximate in 
time to the event, or series of events, justifying the award. 
In addition, the term of a contract awarded on the basis of the 
urgent and compelling exception should not ordinarily exceed 
the period of time the agency reasonably believes to be 
necessary to award a follow-on competitive contract.
      The conferees direct the Secretary of Defense to: (1) 
issue guidance clarifying the appropriate use of the urgent and 
compelling exception to the Competition in Contracting Act for 
the Department of Defense; and (2) work with the Administrator 
for Federal Procurement Policy to issue appropriate regulations 
addressing the issue on a government-wide basis.
Protection of certain disclosures of information by Federal employees
      The Senate amendment contained a provision (sec. 1089) 
that would amend title 5, United States Code, to expand the 
protections afforded to Federal employees who disclose 
information evidencing violations of law; waste, mismanagement, 
or abuse of authority; threats to public health or safety; or 
certain false statements to Congress; and to make conforming 
amendments to other provisions of law.
      The House bill contained no similar provision.
      The Senate recedes.
Sense of Congress regarding the men and women of the Armed Forces of 
        the United States in Iraq
      The Senate amendment contained a provision (sec. 1090) 
that would express the sense of Congress that commends the men 
and women of the Armed Forces of the United States in Iraq for 
their commitment and determination to win the global war on 
terrorism and expresses gratitude to the families of the men 
and women of the Armed Forces of the United States.
      The House bill contained no similar provision.
      The Senate recedes.
Limitation on United States share of assessments for United Nations 
        peacekeeping operations
      The Senate amendment contained a provision (sec. 1092) 
that would permit the United States to pay United Nations (UN) 
assessments for peacekeeping at the rate assessed by the UN up 
to a limit of 27.1 percent.
      The House bill contained no similar provision.
      The Senate recedes.
Termination of program
      The Senate amendment contained a provision (sec. 1093) 
that would establish an immediate sunset date for the Small 
Business Competitive Demonstration Program.
      The House bill contained no similar provision.
      The Senate recedes.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

                     Legislative Provisions Adopted

Accrual of annual leave for members of the uniformed services 
        performing dual employment (sec. 1101)
      The House bill contained a provision (sec. 1103) that 
would authorize service members who are on terminal leave and 
who are eligible to earn leave due to their status as a federal 
employee to accrue such leave with pay in accordance with 
section 6303(a) of title V for a retired member of a uniformed 
service.
      The Senate amendment contained a similar provision (sec. 
1101).
      The Senate recedes.
Strategy for improving the senior management, functional, and technical 
        workforce of the Department of Defense (sec. 1102)
      The Senate amendment contained a provision (sec. 1102) 
that would require the Secretary of Defense to develop a 
strategic plan to shape and improve the senior management, 
functional, and technical workforce of the Department, as part 
of the Strategic Human Capital Plan required by section 1122 of 
the National Defense Authorization Act for Fiscal year 2006 
(Public Law 109-163).
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Three-year extension of authority for experimental personnel management 
        program for scientific and technical personnel (sec. 1103)
      The Senate amendment contained a provision (sec. 1105) 
that would extend until September 30, 2011, the authority for 
the Defense Advanced Research Projects Agency experimental 
personnel management program for technical personnel, 
authorized in section 1101(e) of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261).
      The House bill contained no similar amendment.
      The House recedes.
Reports on members of the Armed Forces and civilian employees of the 
        Department of Defense serving in the legislative branch (sec. 
        1104)
      The Senate amendment contained a provision (sec. 1062) 
that would require the Secretary of Defense to submit a monthly 
report to the congressional defense committees if a member of 
the Armed Forces or a civilian employee of the Department of 
Defense, who has been assigned to the legislative branch as a 
detailee or as a legislative fellow, exceeds 1 year in such an 
assignment. The provision would also require reporting if a 
military member receives such an assignment as the last tour of 
duty before retirement or separation from active duty.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
quarterly, vice monthly, reports only when the conditions 
requiring reporting exist.
Extension of authority to waive annual limitation on total compensation 
        paid to Federal civilian employees (sec. 1105)
      The conferees agree to a provision that would extend 
through 2007 the authority to waive the annual limitation on 
total compensation paid to Federal civilian employees who are 
working in an overseas location that is in the area of 
responsibility of the Central Command. The provision would 
establish $212,100 as the maximum total compensation on such 
pay in 2007.
      The conferees are disappointed that the Department of 
Defense failed to provide a legislative proposal to extend the 
authority provided in section 1105 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) to 
allow timely consideration by the congressional committees of 
jurisdiction. The conferees are further concerned that the 
Department appears to no longer consider utilization of 
authorities granted under the National Security Personnel 
System (NSPS) a practical means of paying the affected 
individuals for performance in an overseas theater of 
operations. Despite the Department's challenges in 
implementation of NSPS, pay for performance is not enjoined 
from implementation, and the conferees expect the Department to 
develop an implementation plan to facilitate inclusion of these 
individuals in pay for performance before 2008.

                   Legislative Provisions Not Adopted

Increase in authorized number of defense intelligence senior executive 
        employees
      The House bill contained a provision (sec. 1101) that 
would increase the number of defense intelligence senior 
executives from 594 to 644.
      The Senate amendment contained no similar provision.
      The House recedes.
      A separate provision contained elsewhere in this report 
would require the Secretary of Defense to develop a strategic 
plan to shape and improve the senior management, functional, 
and technical workforce of the Department of Defense, including 
senior-level intelligence employees.
Authority to equalize allowances, benefits, and gratuities of personnel 
        on official duty in Iraq and Afghanistan
      The Senate amendment contained a provision (sec. 1103) 
that would extend to the heads of all agencies, for their 
civilian personnel serving on official duty in Iraq and 
Afghanistan, the same authority as the Secretary of State 
already has under section 413 of title I of the Foreign Service 
Act (22 U.S.C. 4081 et seq.) with respect to allowances, 
benefits, and death gratuities for Foreign Service personnel.
      The House bill contained no similar provision.
      The Senate recedes.
      An identical provision (sec. 1603) was included in the 
Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Hurricane Recovery, 2006 (Public Law 
109-234).
Death gratuity authorized for federal employees
      The House bill contained a provision (sec. 1104) that 
would provide a death gratuity of $0.1 million to civilian 
employees of the United States Government in the case of a 
death resulting from wounds, injuries, or illnesses that are 
incurred in the performance of civilian duty in a contingency 
operation, or who die in connection with a terrorist incident 
during the employee's service with the Armed Forces of the 
United States.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are concerned that the increasing reliance 
on civilian employees in a theater of operation by the 
Department of Defense requires a comprehensive analysis of 
civilian benefits including, but not limited to, a death 
gratuity. The conferees expect the Secretary of Defense to 
propose policy and legislative changes for consideration in 
fiscal year 2008 or sooner, if appropriate, based on an 
assessment by the Under Secretary of Defense for Personnel and 
Readiness of current civilian personnel policies and the 
findings of the Comptroller General report, as required by 
Senate Report accompanying S. 1042 (S. Report 109-69) of the 
National Defense Authorization Act for Fiscal year 2006, 
entitled ``Comptroller General report on policy concerning 
Department of Defense civilians deployed in support of 
contingency operations.''
Programs for use of leave by caregivers for family members of 
        individuals performing certain military service
      The Senate amendment contained a provision (sec. 1104) 
that would require the Office of Personnel Management to 
establish a temporary program to allow Federal employees who 
have been designated by a member of the Armed Forces as a 
``caregiver'' to use annual leave for the purpose of providing 
care for the dependents of the member when deployed in support 
of a contingency operation. The amendment would authorize the 
Secretary of Labor to establish a similar, voluntary leave 
program for the private sector.
      The House bill contained no similar provision.
      The Senate recedes.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                     Legislative Provisions Adopted

                  Subtitle A--Assistance and Training

Logistic support for allied forces participating in combined operations 
        (sec. 1201)
      The House bill contained a provision (sec. 1201) that 
would allow the Secretary of Defense, with the concurrence of 
the Secretary of State, to use up to $100.0 million of funds 
available to the Department of Defense for operation and 
maintenance in any given fiscal year to provide logistic 
support, supplies, and services to allied forces. To receive 
such support, the allied forces must be participating in an 
operation, such as active hostilities, a contingency, or a 
noncombat operation, with the Armed Forces of the United 
States. Also, the Secretary of Defense must determine that the 
support is essential to the success of the combined operation 
and that without such support, the foreign military forces 
would be unable to participate in the combined operation. 
Finally, the support provided must be allowable under existing 
export control laws and regulations.
      The Senate amendment contained a similar provision (sec. 
1203) that would provide the Secretary of Defense, with the 
concurrence of the Secretary of State, permanent authority to 
use up to $100.0 million from operation and maintenance funds 
in any fiscal year to provide logistic support, supplies, and 
services to allied forces participating in combined operations 
with the Armed Forces of the United States. The provision would 
also authorize the Secretary of Defense to provide up to an 
additional $5.0 million from operation and maintenance funds in 
any fiscal year to provide logistic support, supplies, and 
services to allied forces solely for the purposes of enhancing 
the interoperability of the logistical support systems of the 
allied forces with the logistical support systems of the Armed 
Forces of the United States in order to facilitate combined 
operations. The provision would require the Secretary of 
Defense to provide to the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate and the Committee 
on Armed Services and the Committee on International Relations 
of the House of Representatives an annual report on the use of 
this authority.
      The Senate recedes with an amendment that would authorize 
the Secretary of Defense to provide up to an additional $5.0 
million from operation and maintenance funds in any fiscal year 
to provide logistic support, supplies, and services to allied 
forces participating in combined operations with the Armed 
Forces of the United States solely for the purposes of 
enhancing the interoperability of the logistical support 
systems of the allied forces with the logistical support 
systems of the Armed Forces of the United States in order to 
facilitate such combined operations.
      The Senate amendment would also require the Secretary of 
Defense to provide to the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate and the Committee 
on Armed Services and the Committee on International Relations 
of the House of Representatives an annual report on the use of 
this authority.
      The conferees note their understanding that the term 
``logistic support, supplies, and services'' in section 2350(1) 
of title 10, United States Code, includes sealift.
Temporary authority to use acquisition and cross-servicing agreements 
        to lend certain military equipment to foreign forces in Iraq 
        and Afghanistan for personnel protection and survivability 
        (sec. 1202)
      The House bill contained a provision (sec. 1202) that 
would provide the Secretary of Defense authority to lend 
certain military equipment, using Acquisition and Cross-
Servicing Agreements (ACSA), to the military forces of foreign 
nations participating in combined operations with U.S. forces 
in Iraq and Afghanistan. The provision would limit such 
equipment to those items marked as significant military 
equipment in specified categories on the U.S. munitions list, 
allow the provision of such equipment under this authority for 
up to 1 year, and require that the equipment be used by foreign 
military forces solely for personnel protection or to aid in 
the personnel survivability of such forces. The provision would 
require the Secretary to determine: (1) that the U.S. forces 
participating in that combined operation have no unfulfilled 
requirements for that equipment; and (2) with the concurrence 
of the Secretary of State, that it is in the national security 
interest of the United States to lend such equipment for that 
purpose. The provision would stipulate that the provision of 
equipment under this authority shall be subject to the Arms 
Export Control Act (22 U.S.C. 2751 et seq.) and any other 
export control regime under law relating to the transfer of 
military technology to foreign nations. The provision would 
require the Secretary of Defense, in coordination with the 
Secretary of State, to submit semiannual reports on the 
exercise of this authority to the Committees on Armed Services 
of the Senate and the House of Representatives, the Committee 
on Foreign Relations of the Senate, and the Committee on 
International Relations of the House of Representatives. This 
authority would expire on September 30, 2008.
      The Senate amendment contained a similar provision (sec. 
1205).
      The Senate recedes with a clarifying amendment.
      The conferees note that this authority is intended to 
permit the temporary loan of equipment such as armored HMMWVs 
or HMMWVs with add-on armor kits, counter-improvised explosive 
device equipment, and defusing equipment to our coalition 
partners in Iraq and Afghanistan so that they can be better 
protected against improvised explosive devices and other 
weapons they are encountering in those theaters.
      The conferees further note their agreement on the 
desirability of updating their understanding of the term 
``ammunition'' under section 2350(1) of title 10, United States 
Code. The definition of ``ammunition'' provided in this 
conference report is meant to supercede the definition of 
``ammunition'' that was provided in Senate Report 96-842 and 
Senate Report 96-795, both of which accompanied the legislation 
(H.R. 5580) that first codified ACSA authority in title 10, 
United States Code.
      Specifically, the conferees agree that the term 
``ammunition'' in section 2350(1) of title 10, United States 
Code, includes: transfers of small arms ammunition between 
forces on exercises when one side runs low and another has 
sufficient supplies with repayment in cash or kind; 
replacement-in-kind of ammunition expended at allied ranges; 
exchange unit firing to determine compatibility of ammunition 
between nations and its suitability for use in different weapon 
systems; emergency acquisition of provisions of conventional 
ammunition (small arms, mortar, automatic cannon, artillery, 
and ship gun ammunition); bombs (cluster, fuel air explosive, 
general purpose, and incendiary); unguided projectiles and 
rockets; riot control chemical ammunition; land mines (ground-
to-ground and air-to-ground delivered); demolition material; 
grenades; flares and pyrotechnics; and all items included in 
the foregoing, such as explosives, propellants, cartridges, 
propelling charges, projectiles, warheads (with various fillers 
such as high explosives, illuminating, incendiary, 
antimaterial, and anti-personnel), fuzes, boosters, and safe 
and arm devices, in-bulk, combination, or separately packaged 
items of issue for complete round assembly; demolition 
munitions; training ammunition; cartridge and propellant-
actuated devices; chaff and chaff dispensers; and expendable 
sonobuoys. Specifically excluded are the following: guided 
missiles; naval mines and torpedoes; nuclear ammunition and 
included items such as warheads, warhead sections, and 
projectiles; guidance kits for bombs or other ammunition; and 
chemical ammunition (other than riot control).
Recodification and revision to law relating to Department of Defense 
        humanitarian demining assistance (sec. 1203)
      The House bill contained a provision (sec. 1203) that 
would amend chapter 20 of title 10, United States Code, to 
recodify authorities for humanitarian demining assistance. The 
provision would also clarify that the Secretary concerned may 
carry out humanitarian demining assistance in a country if such 
assistance would promote either the security interests of the 
United States or the operational readiness skills of the Armed 
Forces of the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would expand 
the scope of the reporting requirement, and make other 
clarifying changes.
Enhancements to Regional Defense Combating Terrorism Fellowship Program 
        (sec. 1204)
      The Senate amendment contained a provision (sec. 1202) 
that would amend section 2249c of title 10, United States Code, 
to change the title of the ``Regional Defense Counterterrorism 
Fellowship Program'' to the ``Regional Defense Combating 
Terrorism Fellowship Program.'' The provision would also 
increase the amount of authorized annual funding for the 
program from $20.0 million to $25.0 million.
      The House bill contained a similar provision (sec. 1204).
      The Senate recedes with a clarifying amendment that would 
limit the attendance of foreign officials to foreign military 
officers, ministry of defense officials, or security officials 
at military or civilian educational institutions.
      The conferees recognize the critical need to provide 
education and training opportunities to our allies in the 
global war on terror and support the Regional Defense Combating 
Terrorism Fellowship Program as part of that effort.
      The conferees expect the Department of Defense to 
continue to ensure that the program conforms to the spirit of 
statutory guidelines governing the administration of related 
programs, including the requirement that each candidate undergo 
a rigorous and thorough human rights verification and vetting 
process.
Participation of the Department of Defense in multinational military 
        centers of excellence (sec. 1205)
      The Senate amendment contained a provision (sec. 1207) 
that would authorize during fiscal year 2007 the Secretary of 
Defense, with the concurrence of the Secretary of State, to 
permit the participation of Department of Defense civilian and 
military personnel in multinational military centers of 
excellence for the purpose of enhancing the ability of 
participating nations to engage in joint exercises or coalition 
or international military operations, or to improve their 
interoperability. The provision would require the Secretary of 
Defense to enter into memoranda of understanding, with the 
concurrence of the Secretary of State, that would govern the 
terms of the Department's participation in such centers. The 
provision would permit the Secretary of Defense to use up to 
$3.0 million from funds available for operation and maintenance 
in fiscal year 2007 to pay the U.S. share of the expenses of 
such centers in which the Department participates. The 
provision would further authorize the use of Department 
facilities and equipment to support such centers that are 
hosted by the Department. The provision would require the 
Secretary of Defense to submit a report to the congressional 
defense committees, not later than October 31, 2007, on the use 
of this authority, including a detailed report on the centers 
and activities in which the Department participated, and the 
cost of that participation.
      The provision would define a center of excellence as an 
entity sponsored by one or more nations that is accredited and 
approved by the North Atlantic Treaty Organization (NATO) 
Military Committee as offering recognized expertise and 
experience to personnel participating in the activities of such 
entity for the benefit of NATO.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Modification and extension of authorities relating to program to build 
        the capacity of foreign military forces (sec. 1206)
      The Senate amendment contained a provision (sec. 1206) 
that would modify section 1206 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163) by 
permitting the Secretary of Defense to use funds available for 
operation and maintenance to conduct or support the activities 
authorized under that section, and by extending the duration of 
the authority provided in that section through September 30, 
2008.
      The provision would also provide new authority to the 
Secretary of Defense, with the concurrence of the Secretary of 
State, to authorize any commander of a geographic combatant 
command to respond to unanticipated changes in a security 
environment within that commander's area of responsibility 
(AOR) to build the capacity of the national military forces of 
a country within that AOR in order for that country to conduct 
counterterrorist operations or participate in or support 
military and stability operations. The provision would allow 
the Secretary of Defense to use funds available for operation 
and maintenance for fiscal years 2007 and 2008, up to $200.0 
million in a fiscal year, for this purpose. This authority 
would expire on September 30, 2008.
      The provision would further provide the Secretary of 
Defense new authority to authorize a geographic combatant 
commander to respond to urgent and unanticipated humanitarian 
relief or reconstruction requirements in a foreign country 
within the commander's AOR if the commander determines that the 
provision of such assistance will promote the security interest 
of the United States and of the country to which such 
assistance would be provided. The provision would limit the 
amounts available for this authority to $200,000 in any country 
in a fiscal year. The provision would further require the 
Secretary of Defense to submit to the congressional defense 
committees an annual report on the provision of assistance 
under this authority. This authority would expire on September 
30, 2008.
      The House contained no similar provision.
      The House recedes with an amendment that would modify 
section 1206 by: (1) providing the authority in that section to 
the Secretary of Defense, with the concurrence of the Secretary 
of State, rather than to the President; (2) permitting the 
Secretary of Defense to use up to $300.0 million from funds 
available for operation and maintenance in a fiscal year to 
conduct or support the activities authorized under that 
section; and (3) extending the duration of the authority 
provided in that section through September 30, 2008.
      The conferees also agree to include elsewhere in this 
report a provision that would provide expanded authority under 
the Combatant Commanders Initiative Fund for geographic 
combatant commanders to provide urgent and unanticipated 
humanitarian relief and reconstruction assistance to countries 
in their respective AORs.
      The conferees underscore that the authorities provided in 
this section are provided in the spirit of a pilot program. The 
conferees intend to review carefully how these authorities are 
implemented so as to have a basis for determining whether and, 
if so, in what precise manner, to reauthorize these or provide 
other authorities after the conclusion of the pilot program. 
Important factors in the conferees' future consideration of 
these matters will be the report that is to be provided under 
section 1206, and the record of implementing these authorities 
that is built by the Department of Defense over the next 2 
years. The conferees strongly discourage further modifications 
to these authorities until a track record implementing the 
pilot program authorized in this section has been established. 
The conferees believe it will be important to demonstrate 
through experience that these expanded authorities can and will 
be exercised consistent with the effective coordination of U.S. 
foreign policy writ large. Furthermore, the conferees strongly 
believe that foreign assistance programs are more appropriately 
funded through the foreign assistance accounts, as administered 
by the Department of State, and urge the administration to 
request sufficient funding for foreign military assistance in 
those accounts in future years budget requests.
Authority for distribution to certain foreign personnel of education 
        and training materials and information technology to enhance 
        military interoperability (sec. 1207)
      The Senate amendment contained a provision (sec. 1208) 
that would authorize the Secretary of Defense to provide 
electronically-distributed learning content and associated 
information technology for the education and training of 
military and civilian personnel of friendly foreign governments 
and personnel of internationally-recognized nongovernmental 
organizations to enhance allied and friendly military 
capabilities for multinational operations, including joint 
exercises and coalition operations. The provision would require 
the concurrence of the Secretary of State if the activity 
proposed to be undertaken is not authorized by another 
provision of law. The provision would further require that the 
provision of learning content and information technology under 
this authority shall be subject to the Arms Export Control Act 
and any other export control regime under law relating to the 
transfer of military technology for foreign nations.
      The provision would also require the Secretary of Defense 
to: (1) develop and issue guidance on the procedures for the 
use of this authority; (2) submit a report to the congressional 
defense committees on that guidance no later than 30 days after 
it is issued; and (3) submit any modifications of the guidance 
to the congressional defense committees. The provision would 
require the Secretary of Defense to submit an annual report to 
the congressional defense committees on the use of the 
authority during the preceding fiscal year. The authority would 
expire on September 30, 2008.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to provide electronically-distributed 
learning content and associated information technology to 
military and civilian personnel of a friendly foreign 
government for their education and training for the purpose of 
enhancing military interoperability between the Armed Forces of 
the United States and military forces of friendly foreign 
countries.

     Subtitle B--Nonproliferation Matters and Countries of Concern

North Korea (sec. 1211)
      The Senate amendment contained a provision (sec. 1214) 
that would require the President to appoint a senior 
presidential envoy to act as coordinator of U.S. policy on 
North Korea, and to submit to Congress a semiannual report on 
the nuclear and missile programs of North Korea.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Report on participation of multinational partners in the United Nations 
        Command in the Republic of Korea (sec. 1212)
      The Senate amendment contained a provision (sec. 1221) 
that would require the Secretary of Defense, in coordination 
with the Secretary of State, to submit a report within 180 days 
of enactment of this Act to the Committees on Armed Services of 
the Senate and the House of Representatives and the Committee 
on Foreign Relations of the Senate and the Committee on 
International Relations of the House of Representatives on an 
increased role and participation of multinational partners in 
the United Nations Command in the Republic of Korea.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Intelligence on Iran (sec. 1213)
      The Senate amendment contained a provision (sec. 1216) 
that would direct the Director of National Intelligence (DNI) 
to submit to Congress an updated National Intelligence Estimate 
(NIE) on Iran, and that would direct the President to submit to 
Congress a report on U.S. policy objectives and strategy 
regarding Iran. The provision would further direct the DNI to 
submit a report on the process for vetting and clearing 
statements of senior administration officials that are drawn 
from or rely on intelligence and the process for identifying 
significant misstatements of other public officials.
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct the 
DNI to submit to Congress a comprehensive NIE on Iran, but 
would eliminate the requirement for the second report from the 
DNI.
      In preparing the comprehensive NIE, the conferees urge 
the DNI to address the full range of issues with respect to 
Iran including: Iranian foreign policy and regime objectives; 
the current status of the Iranian nuclear program with an 
assessment of Iran's intentions and motivations with respect to 
development of nuclear weapons to include factors that might 
influence such intentions; an assessment of Iran's military 
capabilities; an assessment of Iran's relationships with 
terrorist groups; and an assessment of the full impacts, 
success, and consequences of diplomacy, sanctions, military, 
and other actions and interactions on and with Iran by the 
international community. The conferees also urge the DNI to 
include assessments of Iranian public opinion toward the 
Iranian regime and programs, the United States, and the 
international community. The NIE should also include an 
assessment of the confidence level of key judgments, the 
quality of the sources of intelligence on Iran, the nature and 
scope of any intelligence gaps, and any significant alternative 
views.
      An unclassified summary of the key judgments of the NIE 
should be submitted with the NIE.
Sense of Congress on United States policy on the nuclear programs of 
        Iran (sec. 1214)
      The Senate amendment contained a provision (sec. 1209) 
that would express the sense of Congress: (1) endorsing the 
policy of the United States announced May 31, 2006, to achieve 
a successful diplomatic outcome with respect to Iran's efforts 
to acquire a nuclear weapons capability; (2) calling on Iran to 
suspend fully and verifiably its enrichment and reprocessing 
activities, cooperate fully with the International Atomic 
Energy Agency, and enter into negotiations pursuant to the 
package presented to Iran by the High Representative of the 
European Union; and (3) urging the President and the Secretary 
of State to keep the Congress fully informed about the progress 
in this vital initiative.
      The House bill contained no similar provision.
      The House recedes with an amendment that would add a 
clause urging the United Nations Security Council to work for 
the adoption of appropriate measures under Article 41 of 
Chapter VII of the Charter of the United Nations in the event 
Iran fails to comply with United Nations Security Council 
Resolution 1696.

                       Subtitle C--Other Matters

Exclusion of petroleum, oil, and lubricants from limitations on annual 
        amount of liabilities the United States may accrue under 
        acquisition and cross-servicing agreements (sec. 1221)
      The Senate amendment contained a provision (sec. 1204) 
that would exclude the acquisition of petroleum, oil, and 
lubricants from the monetary limitations placed on acquisitions 
made under Acquisition and Cross-servicing Agreements with 
foreign allies.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to provide to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report at the end of fiscal years 2007 and 2008, respectively, 
on the use of this authority in that fiscal year.
Modification of limitations on assistance under the American 
        Servicemembers' Protection Act of 2002 (sec. 1222)
      The Senate amendment contained a provision (sec. 1210) 
that would modify the limitations on the provision of military 
assistance under the American Servicemembers' Protection Act of 
2002 (22 U.S.C. 7432(13)(A)) so that International Military 
Education and Training assistance could be provided to nations 
that are party to the International Criminal Court.
      The House bill contained no similar provision.
      The House recedes.
Humanitarian support for Iraqi children in urgent need of medical care 
        (sec. 1223)
      The House bill contained a provision (sec. 1222) that 
would express the sense of Congress that the Secretary of 
Defense should continue to provide space-available 
transportation on military aircraft for humanitarian purposes 
to Iraqi children in urgent need of medical care. The provision 
would also authorize $1.0 million in Operation and Maintenance, 
Defense-wide for Department of Defense support of the Peace 
Through Health Care Initiative.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the authorization of appropriation.
      The conference outcome is reflected in the tables of this 
report.
Sense of Congress opposing the granting of amnesty by the government of 
        Iraq to persons known to have attacked, killed, or wounded 
        members of the United States Armed Forces in Iraq (sec. 1224)
      The Senate amendment contained a provision (sec. 1212) 
that would express the sense of Congress that: (1) the 
Government of Iraq should not grant amnesty to persons known to 
have attacked, killed, or wounded members of the Armed Forces 
of the United States; and (2) the President should immediately 
notify the Government of Iraq that the Government of the United 
States strongly opposes granting amnesty to persons who have 
attacked members of the Armed Forces of the United States.
      The House bill contained no similar provision.
      The House recedes with an amendment that would add an 
additional element to the sense of Congress that the goal of 
the United States and coalition partners has been to empower 
the Iraqi people with full sovereignty as a nation. The 
amendment would delete the element regarding presidential 
notification to the Government of Iraq.
Annual reports on United States contributions to the United Nations 
        (sec. 1225)
      The Senate amendment contained a provision (sec. 1213) 
that would require the President to submit an annual report to 
Congress regarding all assessed and voluntary contributions of 
the United States Government to the United Nations and United 
Nations affiliated agencies and related bodies for the 
preceding fiscal year.
      The House bill contained no similar provision.
      The House recedes with an amendment that would terminate 
this annual reporting requirement on December 31, 2010.
Comprehensive regional strategy and annual reports on Somalia (sec. 
        1226)
      The Senate amendment contained a provision (sec. 1215) 
that would require the President to submit a report to 
Congress, not later than 90 days after the date of the 
enactment of this Act, on a comprehensive regional strategy 
toward Somalia. The strategy shall include: (1) a clearly 
stated U.S. policy towards Somalia; (2) a description of 
bilateral, regional, and multilateral efforts to coordinate and 
strengthen diplomatic engagement with Somalia; (3) a 
description of an integrated approach to counter transnational 
security interests in Somalia and throughout the Horn of 
Africa; (4) a description of an interagency framework involving 
relevant Federal agencies and departments to plan, coordinate, 
and execute U.S. policy and activities in Somalia and 
throughout the Horn of Africa and to oversee policy and program 
implementation; and (5) guidance on the implementation of the 
comprehensive regional strategy. The provision would also 
require annual reports on the status of the implementation of 
the comprehensive regional strategy.
      The House bill contained no similar provision.
      The House recedes with an amendment that would repeal the 
annual reporting requirement on the status of the 
implementation of the comprehensive regional strategy on April 
1, 2010, and make other clarifying changes.
Report on the implementation of the Darfur Peace Agreement (sec. 1227)
      The Senate amendment contained a provision (sec. 1224) 
that would require the Secretary of Defense to submit a report 
to the appropriate congressional committees, not later than 60 
days after the date of the enactment of this Act and annually 
thereafter, on the role of the Department of Defense in 
assisting the parties to the Darfur Peace Agreement with 
implementation of that Agreement.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
incorporate elements of a report from another provision 
contained elsewhere in this report into a single report 
required under this section. The amendment would also make 
other clarifying and technical changes. The amendment would 
further repeal a similar reporting requirement on Darfur 
required by the House report accompanying H.R. 5122 (H.Rept. 
109-452) of the National Defense Authorization Act for Fiscal 
Year 2007.
Sense of Congress concerning cooperation with Russia on issues 
        pertaining to missile defense (sec. 1228)
      The House bill contained a provision (sec. 1223) that 
would express the sense of Congress that cooperation between 
Russia and the United States with regard to missile defense is 
in the interest of the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Sense of Congress calling for convening of a summit for a comprehensive 
        political agreement for Iraq (sec. 1229)
      The Senate amendment contained a provision (sec. 1096) 
that would express the sense of Congress that the President 
should convene a summit, as soon as possible, with leaders of 
the Government of Iraq, governments that border Iraq, and the 
governments of each permanent member of the United Nations 
Security Council. The summit should also involve 
representatives of the Arab League, the European Union, and the 
North Atlantic Treaty Organization. The purpose of the summit 
would be to achieve a comprehensive political agreement that 
addresses fundamental issues, including reconstruction, 
economic assistance, and border security.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Sense of Congress on the commendable actions of the Armed Forces in 
        Iraq (sec. 1230)
      The Senate amendment contained a provision (sec. 1084) 
that would express a sense of Congress that: (1) commends the 
United States Armed Forces, the intelligence community, other 
Federal agencies, and coalition partners for their actions that 
resulted in the death of Abu Musab al-Zarqawi; (2) commends the 
United States Armed Forces, the intelligence community, and 
other Federal agencies for their efforts to bring freedom, 
democracy, and security to the people of Iraq; (3) commends 
Iraqi Prime Minister Jawad al-Maliki on the finalization of the 
new Iraqi cabinet and urges the democratically-elected 
government of Iraq to defeat terrorism and put an end to ethnic 
and sectarian violence; and (4) affirms that Congress will 
continue to support the United States Armed Forces and the 
democratically-elected unity government of Iraq.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Annual report on foreign sales of significant military equipment 
        manufactured in the United States (sec. 1231)
      The Senate amendment contained a provision (sec. 1070B) 
that would require the Department of Defense to submit an 
annual report to Congress on foreign military sales and direct 
sales to foreign customers of significant military equipment 
manufactured in the United States.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

Expansion of humanitarian and civic assistance to include 
        communications and information capacity
      The Senate amendment contained a provision (sec. 1201) 
that would amend section 401 of title 10, United States Code, 
to expand the authority of the Secretary of Defense to provide 
humanitarian and civic assistance in conjunction with military 
operations to include information and communications technology 
as necessary to provide basic information and communications 
services.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge that restoring basic 
information and communications capacity is a fundamental 
element of humanitarian and civic assistance, and that a 
functioning information and communications infrastructure is 
vital to the successful conduct of humanitarian missions. 
Accordingly, the conferees note that rudimentary construction 
and repair of public facilities, under section 401(e)(4) of 
title 10, United States Code, includes information and 
communications technology as necessary to provide basic 
information and communications services.
Capstone overseas field studies trips to People's Republic of China and 
        Republic of China on Taiwan
      The House bill contained a provision (sec. 1205) that 
would require the Secretary of Defense to direct that field 
studies trips to the People's Republic of China and the 
Republic of China on Taiwan be a mandatory element of the 
Capstone course for newly selected flag and general officers.
      The Senate amendment contained no similar provision.
      The House recedes.
Military educational exchanges between senior officers and officials of 
        the United States and Taiwan
      The House bill contained a provision (sec. 1206) that 
would would require the Secretary of Defense to undertake a 
program of senior military officer and senior official 
exchanges with Taiwan designed to improve Taiwan's defenses 
against the People's Liberation Army of the People's Republic 
of China.
      The Senate amendment contained no similar provision.
      The House recedes.
Procurement restrictions against foreign persons that transfer certain 
        defense articles and services to the People's Republic of China
      The House bill contained a provision (sec. 1211) that 
would prohibit the Secretary of Defense from procuring any 
goods or services from a foreign person or entity that the 
Secretary of Defense has determined transferred to the People's 
Republic of China items on the U.S. munitions list.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of Congress commending the Government of Iraq for affirming its 
        position of no amnesty for terrorists who attack United States 
        Armed Forces
      The Senate amendment contained a provision (sec. 1211) 
that would express the sense of Congress that: (1) the goal of 
the United States and our coalition partners has been to 
empower the Iraqi nation with full sovereignty thereby 
recognizing their freedom to exercise that sovereignty; (2) 
history records that governments derived of free elections 
should not grant amnesty to those who have committed war crimes 
or terrorists acts; and (3) the United States should continue 
with the historic tradition of diplomatically, economically, 
and in a humanitarian manner assisting nations and the people 
who have fought once a conflict is concluded.
      The House bill contained no similar provision.
      The Senate recedes. Elsewhere in this report, the 
conferees agree to include a separate provision on a similar 
topic.
Reports on implementation of the Darfur Peace Agreement
      The Senate amendment contained a provision (sec. 1217) 
that would require the President to submit a report on the 
implementation of the Darfur Peace Agreement.
      The House bill contained no similar provision.
      The Senate recedes.
Execution of the President's policy to make available to Taiwan diesel 
        electric submarines
      The House bill contained a provision (sec. 1221) that 
would establish that it is the policy of the United States to 
make available to Taiwan plans and options for design work and 
construction work on future diesel electric submarines under 
the U.S. foreign military sales process, consistent with U.S. 
national disclosure policy and applicable U.S. export control 
laws.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of certain report requirements
      The Senate amendment contained a provision (sec. 1223) 
that would repeal two annual reports on North Atlantic Treaty 
Organization burdensharing that were codified in section 1003 
of the Department of Defense Authorization Act, 1985 (Public 
Law 98-525), and in section 1313 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337), 
respectively.
      The House bill contained no similar provision.
      The Senate recedes.

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

                     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 that are Cooperative Threat Reduction 
(CTR) programs, define the funds for CTR programs as those 
authorized to be appropriated in section 301 of this Act, and 
specify that CTR funds shall remain available for obligation 
for three fiscal years.
      The Senate amendment contained an identical provision 
(sec. 1301).
      The conference agreement includes this provision.
Funding allocations (sec. 1302)
      The House bill contained a provision (sec. 1302) that 
would authorize $372.1 million for the Cooperative Threat 
Reduction (CTR) program. The provision would also authorize 
specific amounts for each CTR program element, require 
notification to Congress 30 days before the Secretary of 
Defense obligates and expends fiscal year 2007 funds for 
purposes other than those specifically authorized, and provide 
limited authority to obligate amounts for a CTR program element 
in excess of the amount specifically authorized for that 
purpose.
      The Senate amendment contained a similar provision (sec. 
1302).
      The Senate recedes.
Extension of temporary authority to waive limitation on funding for 
        chemical weapons destruction facility in Russia (sec. 1303)
      The House bill contained a provision (sec. 1303) that 
would extend, until the completion of the facility, the 
President's authority to waive restrictions established in 
section 1305 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) for continuing the 
construction of a chemical weapons destruction facility at 
Shchuch'ye, Russia.
      The Senate amendment contained a similar provision (sec. 
1303) that would extend, through December 31, 2011, the 
President's authority to waive restrictions established in 
section 1305 of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) for continuing the 
construction of a chemical weapons destruction facility at 
Shchuch'ye, Russia.
      The Senate recedes with a clarifying amendment.
National Academy of Sciences study of prevention of proliferation of 
        biological weapons (sec. 1304)
      The House bill contained a provision (sec. 1304) that 
would require the Secretary of Defense to sponsor a study by 
the National Academy of Sciences (NAS) to analyze lessons 
learned, past and present challenges, and possible options in 
effectively managing and facilitating threat reduction and 
nonproliferation projects under the Cooperative Threat 
Reduction (CTR) program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to sponsor a study by the NAS to identify areas 
for further cooperation with Russia and other states of the 
former Soviet Union under the CTR program, specifically in the 
area of biological weapons proliferation prevention.
      The conferees agree that it is beneficial to have an 
independent nongovernmental organization study certain aspects 
of the CTR program. The conferees agree that the study required 
by this section should concentrate on biological weapons 
proliferation prevention, given the emerging threats associated 
with biological weapons proliferation; the considerable 
challenges to preventing such proliferation; the Department's 
focus on biological weapons proliferation prevention in recent 
years and interest in possibly expanding such work; and the 
necessity of benefiting from the knowledge of scientific and 
technical experts when designing programs to promote further 
cooperation in the area of biological weapons proliferation 
prevention. The conferees note their intent to consider in 
future years requiring independent analyses of other remaining 
proliferation challenges, particularly in the area of nuclear 
weapons proliferation prevention, and how CTR programs might 
address them.
      To ensure timely delivery of the study described in this 
section, the conferees strongly urge all U.S. Government 
departments or agencies that provide the NAS with access to 
classified material for use in the study to complete promptly, 
no later than 30 calendar days after receipt, any necessary 
classification reviews of the study or related documents.

                   Legislative Provision Not Adopted

Removal of certain restrictions on provision of Cooperative Threat 
        Reduction assistance
      The Senate amendment contained a provision (sec. 1304) 
that would repeal certain restrictions on the provision of 
Cooperative Threat Reduction (CTR) assistance, including: the 
requirement that the President make certain certifications to 
the Congress regarding the proposed recipients of CTR funds; 
and the conditions on provision of CTR assistance for chemical 
weapons destruction at Shchuch'ye, Russia.
      The House bill contained no similar provision.
      The Senate recedes.

  TITLE XIV--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

                     Legislative Provisions Adopted

Enhancement to authority to pay rewards for assistance in combating 
        terrorism (sec. 1401)
      The House bill contained a provision (sec. 1032) that 
would increase the flexibility and responsiveness of the 
rewards protection program available to the Department of 
Defense. The provision would (1) delegate approval authority to 
commanders directly subordinate to combatant commanders; (2) 
direct that delegated authority must be approved by the 
Secretary of Defense, Deputy Secretary of Defense, or an Under 
Secretary of Defense; and (3) increase the current maximum 
reward amount from $2,500 to $10,000.
      The Senate amendment contained a similar provision (sec. 
1041).
      The Senate recedes with an amendment that would direct 
that the delegated authority by a combatant commander may be 
made only with the approval of an Under Secretary of Defense to 
whom authority has been delegated under section 127b(c)(1)(A) 
of title 10, United States Code.
Quarterly reports on Department of Defense response to threat posed by 
        improvised explosive devices (sec. 1402)
      The House bill contained a provision (sec. 1042) that 
would require the Secretary of Defense to submit to Congress a 
report on the status of the threat posed by improvised 
explosive devices (IED) and the efforts being undertaken to 
defeat the IED threat not later than 30 days after the date of 
the enactment of this Act. The provision would also require 
supplemental quarterly reports to account for every incident 
involving the detonation or discovery of an IED since the 
previous report was submitted.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment that would 
require the Secretary to submit the initial report 90 days 
after the date of the enactment of this Act. The amendment 
would also clarify the reporting requirements for the 
supplemental quarterly report on IED incidents.
Requirement that all military wheeled vehicles used in Iraq and 
        Afghanistan outside of secure military operating bases be 
        protected by Improvised Explosive Device (IED) jammers (sec. 
        1403)
      The House bill contained a provision (sec. 1045) that 
would require the Secretary of Defense to take such steps as 
necessary to ensure that by the end of fiscal year 2007 all 
U.S. military wheeled vehicles used in Iraq and Afghanistan 
outside of military compounds are equipped with improvised 
explosive device (IED) jammers. The provision would also 
require the Secretary to submit to the congressional defense 
committees, not later than December 15, 2006, a report on the 
cost and schedule to comply with the requirement.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to take such steps as necessary to ensure that by 
the end of fiscal year 2007 all U.S. military wheeled vehicles 
used in Iraq and Afghanistan outside of secure military 
operating bases are protected by IED jammers.
      The conferees understand that there is no single ``silver 
bullet'' solution to defeat IEDs, but current jamming 
technology allows commanders to provide a level of protection 
for deployed forces. However, the conferees also understand 
that it is critical for subordinate commanders of U.S. Central 
Command (USCENTCOM) to retain the flexibility to modify the 
jammer-to-vehicle ratio in order to match mission requirements 
with unit capabilities. The conferees do not intend to require 
that every vehicle be equipped with a jammer, but expect that 
battlefield commanders will develop tactics, techniques, and 
procedures to ensure that all vehicles remain within the 
protective envelope of jammers and that an individual vehicle 
will not be left unprotected when used outside of secure 
military operating bases. The conferees intend that such 
jammers suppress the radio-controlled IED initiation devices 
assessed to be used in a commander's area of responsibility.
      The conferees strongly urge the Secretary to take 
whatever measures necessary, using the funds authorized for the 
Joint IED Defeat Fund in title XV of this Act, to accelerate 
the production of jammers so that the Commander, USCENTCOM, can 
deploy a jammer on every tactical wheeled vehicle used in Iraq 
and Afghanistan.
Report on assessment process of Chairman of the Joint Chiefs of Staff 
        relating to Global War on Terrorism (sec. 1404)
      The House bill contained a provision (sec. 1033) that 
would require the Secretary of Defense to submit a report, not 
later than March 1, 2007, on the findings of the semiannual 
assessment on the global war on terrorism, as described in the 
annex to the National Military Strategic Plan for the War on 
Terrorism.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Treatment under Freedom of Information Act of certain confidential 
        information shared with State and local personnel (sec. 1405)
      The Senate amendment contained a provision (sec. 1043) 
that would clarify that sensitive but unclassified homeland 
security information in the possession of the Department of 
Defense that is shared with state and local personnel who are 
involved in the prevention of or response to terrorist activity 
does not become subject to disclosure under the Freedom of 
Information Act (5 U.S.C. 552) by virtue of such sharing.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Database of emergency response capabilities (sec. 1406)
      The House bill contained a provision (sec. 1038) that 
would require the Secretary of Defense to maintain a database 
of emergency response capabilities resident in each State's 
National Guard that could be deployed in response to a domestic 
natural or manmade disaster.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

                   Legislative Provision Not Adopted

Homeland defense technology transfer
      The House bill contained provisions (secs. 1401-1403) 
that would require the establishment of a homeland defense 
technology transfer consortium.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees note that section 1401 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314) directed the Secretary of Defense to designate a 
senior Federal official within the Department of Defense to 
coordinate the Department's efforts to identify, evaluate, 
deploy, and transfer technological items and equipment to 
Federal, State, and local first responders in support of 
homeland defense. The conferees commend the designation of the 
Assistant Secretary of Defense for Homeland Defense (ASD-HD) as 
the senior Federal official, and the execution of the 
Memorandum of Agreement (MOA) in October 2005 between ASD-HD 
and senior officials in the Departments of Homeland Security 
and Justice, which outlined their respective responsibilities 
for the program. While a formal process is important, the MOA 
places the Offices of ASD-HD and the Under Secretary of Science 
and Technology for Homeland Security between the Department of 
Defense technical community and the first responder community. 
As a result, these two organizations do not bridge both the 
Department's technical community and the first responder 
community for the purposes of transferring technological items 
and equipment in support of homeland defense. The conferees 
believe the Department's efforts to rapidly transfer 
technologies that could assist other Federal agencies, State 
governments, and first responders with their homeland security 
responsibilities would benefit by a more direct dialogue 
between the Department's technical community and first 
responders. Therefore, the conferees urge the Secretary to 
consider the establishment of a consortium that brings together 
appropriate defense entities, other Federal agencies, State and 
local governments, and the first responder community.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Overview
      The House bill contained a title (title XV) that would 
authorize $50.0 billion for ongoing operations in Iraq and 
Afghanistan. The title also contained general provisions.
      The Senate amendment contained a similar title (title 
XIV). The title also contained reporting requirements and 
general provisions.
      The conferees agree to include a title that would 
authorize $70.0 billion for ongoing operations in Iraq and 
Afghanistan. The title would also contain reporting 
requirements and general provisions.
Summary table of authorization
      The following table summarizes authorizations included in 
this report for ongoing operations in Iraq and Afghanistan for 
fiscal year 2007.


Reset funding
      The conferees agree to authorize $23.7 billion in this 
title to reset--repair, replace, or recapitalize--Army and 
Marine Corps equipment used in the global war on terror. The 
conferees based their agreement on information provided to them 
by the Army on July 29, 2006, and by the Marine Corps on 
September 6, 2006. The conferees understand that these 
requirements may change, and expect the Department of Defense 
to fully utilize the reprogramming authorities provided in this 
title to best meet its requirements.
      The table below summarizes the reset funding contained 
elsewhere in this title.


                              Budget Item

C-17 procurement
      The budget request included $2.6 billion in Aircraft 
Procurement, Air Force for procurement of 12 C-17 aircraft, 
which would complete the current C-17 multiyear procurement 
contract purchase of 60 aircraft.
      The House bill would authorize an increase of $299.8 
million, and would also authorize the budget request of $389.6 
million of settlement funding for the procurement of three 
additional C-17 aircraft.
      The Senate amendment would authorize the budget request 
for 12 C-17 aircraft. Of the authorized amount, the Secretary 
of the Air Force may apply $400.0 million of settlement funding 
for the procurement of two additional C-17 aircraft, and $33.2 
million of settlement funding for advance procurement for 
additional C-17 aircraft in the fiscal year 2008 budget 
request.
      The conferees agree to authorize a decrease of $348.0 
million in Aircraft Procurement, Air Force for C-17 production 
line shut-down. The conferees agree to authorize an increase of 
$2.1 billion in title XV of this Act for the procurement of 10 
additional C-17 aircraft. The conferees authorize the Secretary 
to apply the fiscal year 2006 appropriation for line shut-down 
funding of $224.0 million towards advance procurement of these 
10 additional C-17 aircraft.
      The conferees are concerned that the Department of 
Defense has not thoroughly determined its airlift requirements 
for both the intra-theater and inter-theater missions and that 
the decision to cease production of the Department's only 
strategic airlift aircraft procurement program is premature. 
Further, the conferees agree with the Government Accountability 
Office's assessment of the Mobility Capabilities Study (MCS), 
and are concerned about the validity and completeness of the 
MCS and its conclusions. The MCS assessed that a fleet of 292 
strategic airlift aircraft is adequate to meet future airlift 
requirements. However, the conferees have concluded that the 
Department's determination was based on numerous assumptions, 
of which some are no longer relevant. Among the uncertainties 
affecting these assumptions are:
      (1) defining Army modularity intra-theater and inter-
theater airlift requirements;
      (2) achieving success in the C-5 modernization program;
      (3) defining the C-130 wing-box repair strategy; and
      (4) determining the viability of the Civil Reserve 
Airlift Fleet to augment future airlift requirements.
      The conferees support the number one priority on the 
Chief of Staff of the Air Force's unfunded priorities list 
requesting seven additional C-17 aircraft, and agree that 
procurement of additional C-17 aircraft would help mitigate the 
risk associated with the uncertainties of determining the 
Department's airlift requirements.

                     Legislative Provisions Adopted

Purpose (sec. 1501)
      The House bill contained a provision (sec. 1501) that 
would establish a title as an authorization of appropriations 
for the Department of Defense for fiscal year 2007, in addition 
to amounts otherwise authorized in this Act, to provide funds 
for additional costs due to Operation Iraqi Freedom and 
Operation Enduring Freedom.
      The Senate amendment contained an identical provision 
(sec. 1401).
      The conference agreement includes this provision.
Army procurement (sec. 1502)
      The House bill contained a provision (sec. 1502) that 
would authorize an additional $3,773.8 million in fiscal year 
2007 for Army Procurement.
      The Senate amendment contained a similar provision (sec. 
1402) that would authorize an additional $1,755.1 million.
      The Senate recedes with an amendment that would authorize 
an additional $9,235.7 million in fiscal year 2007 for Army 
Procurement.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Navy and Marine Corps procurement (sec. 1503)
      The House bill contained a provision (sec. 1503) that 
would authorize an additional $955.4 million in fiscal year 
2007 for Navy and Marine Corps Procurement.
      The Senate amendment contained a similar provision (sec. 
1403) that would authorize an additional $319.8 million.
      The Senate recedes with an amendment that would authorize 
an additional $5,062.8 million in fiscal year 2007 for Navy and 
Marine Corps Procurement.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Air Force procurement (sec. 1504)
      The House bill contained a provision (sec. 1504) that 
would authorize an additional $296.9 million in fiscal year 
2007 for Air Force Procurement.
      The Senate amendment contained a similar provision (sec. 
1404) that would authorize $51.8 million.
      The Senate recedes with an amendment that would authorize 
an additional $2,179.7 million in fiscal year 2007 for Air 
Force Procurement.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Defense-wide activities procurement (sec. 1505)
      The House bill contained a provision (sec. 1505) that 
would authorize an additional $140.2 million in fiscal year 
2007 for Procurement, Defense-wide.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
an additional $127.6 million in fiscal year 2007 for 
Procurement, Defense-wide.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Research, development, test and evaluation (sec. 1506)
      The House bill contained a provision (sec. 1506) that 
would authorize an additional $37.5 million in fiscal year 2007 
for Research, Development, Test, and Evaluation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
an additional $10.5 million in fiscal year 2007 for Research, 
Development, Test, and Evaluation.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Operation and maintenance (sec. 1507)
      The House bill contained a provision (sec. 1507) that 
would authorize an additional $31,983.3 million in fiscal year 
2007 for operation and maintenance programs.
      The Senate amendment contained a similar provision (sec. 
1405) that would authorize an additional $32,246.2 million.
      The Senate recedes with an amendment that would authorize 
an additional $36,557.9 million in fiscal year 2007 for 
operation and maintenance programs.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Defense health program (sec. 1508)
      The House bill contained a provision (sec. 1508) that 
would authorize an additional $950.2 million in fiscal year 
2007 for Defense Health Program activities.
      The Senate amendment contained a similar provision (sec. 
1406) that would authorize an additional $960.2 million.
      The House recedes with an amendment that would authorize 
an additional $869.2 million in fiscal year 2007 for Defense 
Health Program activities.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Classified programs (sec. 1509)
      The House bill contained a provision (sec. 1509) that 
would authorize an additional $2.5 billion in fiscal year 2007 
for classified programs.
      The Senate amendment contained a similar provision (sec. 
1409) that would authorize an additional $3.0 billion.
      The Senate recedes.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Military personnel (sec. 1510)
      The House bill contained a provision (sec. 1510) that 
would authorize an additional $9,362.8 million in fiscal year 
2007 for military personnel accounts.
      The Senate amendment contained a similar provision (sec. 
1407) that would authorize an additional $7,335.9 million.
      The Senate recedes with an amendment that would authorize 
an additional $8,107.0 million in fiscal year 2007 for military 
personnel accounts.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Treatment as additional authorizations (sec. 1511)
      The House bill contained a provision (sec. 1511) that 
would provide that the funds authorized in title XV of their 
bill for emergency contingency operations related to Operation 
Iraqi Freedom and Operation Enduring Freedom are in addition to 
the amounts otherwise authorized in this Act.
      The Senate amendment contained an identical provision 
(sec. 1411).
      The conference agreement includes this provision.
Transfer authority (sec. 1512)
      The House bill contained a provision (sec. 1512) that 
would provide fiscal year 2007 transfer authority of $3.0 
billion to the Department of Defense for the authorizations 
contained in title XV of their bill.
      The Senate amendment contained a similar provision (sec. 
1412) that would transfer authority of $2.5 billion.
      The House recedes.
Availability of funds (sec. 1513)
      The House bill contained a provision (sec. 1513) that 
would require the funds provided in title XV be made available 
for obligation by the end of the second quarter of fiscal year 
2007.
      The Senate amendment contained an identical provision 
(sec. 1413).
      The conference agreement includes this provision.
Joint Improvised Explosive Device Defeat Fund (sec. 1514)
      The Senate amendment contained a provision (sec. 1408) 
that would authorize an additional $2.1 billion in fiscal year 
2007 for the Joint Improvised Explosive Device Defeat Fund.
      The House bill contained no similar provision.
      The House recedes.
      Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.
Iraq Freedom Fund (sec. 1515)
      The Senate amendment contained a provision (sec. 1410) 
that would authorize an additional $2,231.0 million in fiscal 
year 2007 for the Iraq Freedom Fund.
      The House bill contained no similar provision.
      The House recedes with an amendment that would provide an 
additional authorization of $50.0 million in fiscal year 2007 
for an Iraq Freedom Fund transfer account. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.
Iraq Security Forces Fund (sec. 1516)
      The conferees agree to include a provision that would 
provide an additional authorization of $1,734.0 million in 
fiscal year 2007 for an Iraq Security Forces Fund transfer 
account. These funds would be available to the Secretary of 
Defense for the provision of equipment, supplies, services, 
training, facility and infrastructure repair, renovation, and 
construction, and for the Iraq Security Forces. The provision 
would also authorize the Secretary to receive contributions of 
funds from any person, foreign government, or international 
organization for the purposes of the fund. The provision would 
require the Secretary to notify the congressional defense 
committees in writing 5 days prior to the use or transfer of 
funds from the Iraq Security Forces Fund, and to provide 
quarterly reports summarizing the details of the use or 
transfer of funds.
Afghanistan Security Forces Fund (sec. 1517)
      The conferees agree to include a provision that would 
provide an additional authorization of $1,446.3 million in 
fiscal year 2007 for an Afghanistan Security Forces Fund 
transfer account. These funds would be available to the 
Secretary of Defense for the provision of equipment, supplies, 
services, training, facility and infrastructure repair, 
renovation, and construction, and for the Afghanistan Security 
Forces. The provision would also authorize the Secretary to 
receive contributions of funds from any person, foreign 
government, or international organization for the purposes of 
the fund. The provision would require the Secretary to notify 
the congressional defense committees in writing 5 days prior to 
the use or transfer of funds from the Afghanistan Security 
Forces Fund, and to provide quarterly reports summarizing the 
details of the use or transfer of funds.
Submittal to Congress of Department of Defense supplemental and cost of 
        war execution reports (sec. 1518)
      The Senate amendment contained a provision (sec. 1418) 
that would add the congressional defense committees to the 
report distribution of global war on terror cost reports, as 
required by section 1221 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163).
      The House bill contained no similar provision.
      The House recedes.
Limitation on availability of funds for certain purposes relating to 
        Iraq (sec. 1519)
      The Senate amendment contained a provision (sec. 1419) 
that would prohibit the obligation or expenditure of funds 
within this Act to establish a permanent United States military 
installation or base in Iraq or to exercise United States 
control over the oil resources of Iraq.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
the obligation or expenditure of funds within this Act to 
establish any military installation or base for the purposes of 
providing for the permanent stationing of United States Armed 
Forces in Iraq or to exercise United States economic control of 
the oil resources of Iraq.
Intelligence Community Management Account (sec. 1520)
      The conferees agree to include a provision that would 
provide an additional authorization of $19.3 million in fiscal 
year 2007 for an Intelligence Community Management Account.

                   Legislative Provision Not Adopted

Our Military Kids Youth Support Program
      The Senate amendment contained a provision (sec. 1415) 
that would authorize a total of $2.0 million for expansion of 
the program Our Military Kids Youth Support Program, which 
provides services to the children of deployed or injured 
members of the guard and reserve.
      The House bill contained no similar provision.
      The Senate recedes.
      The conference outcome is reflected in the tables of this 
report.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

                              Budget Items

Explanation of funding table
      Division B of this Act authorizes funding for military 
construction projects for the Department of Defense. It 
includes funding authorizations for the construction and 
operation of military family housing and military construction 
for the reserve components, the defense agencies, and the North 
Atlantic Treaty Organization Security Investment program. It 
also provides authorization for the base closure account that 
funds environmental cleanup and other activities associated 
with the implementation of base closure rounds.
      The budget request included $16,698.4 million for 
military construction and housing programs. Of this amount, the 
budget request included $5,626.2 million to implement the 
results of the 2005 Defense Base Closure and Realignment round. 
The amount is included in the following table in a line 
designated Base Realignment and Closure V.
      The House bill would authorize appropriations of 
$16,698.4 million.
      The Senate amendment would authorize appropriations of 
$17,102.0 million.
      The conferees agree to authorize appropriations of 
$17,376.8 million for the military construction and family 
housing programs. When the impact of $278.4 million in prior 
year rescissions proposed in the Military Quality of Life and 
Veterans Affairs, and Related Agencies Appropriations Bill, 
2007 (H.R. 5385) for both the Senate and the House of 
Representatives is included, the conference agreement will be 
consistent with the budget authority level of $17,098.4 million 
for military construction and family housing programs.
      The following tables provide the project-level 
authorizations for the military construction funding authorized 
in division B of this Act and summarize that funding by 
account.


2005 Defense base closure and realignment accounts authorized for 
        appropriations in 2006
      The National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163) included authorization of 
appropriations of $1,504.5 million to carry out military 
construction, environmental activities, and certain operating 
expenses related to the results of the 2005 Defense Base 
Closure and Realignment (BRAC) round. Section 2404(c) of the 
aforementioned Act required the Secretary of Defense to submit 
to the congressional defense committees a report describing the 
specific programs, projects, and activities for which the 
authorized amounts would be used.
      Congress imposed a 1 percent reduction upon the 
appropriation for the BRAC account, which resulted in an amount 
of $1,489.4 million being available for obligation.
      On February 10, 2006, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics submitted to the 
committees on Armed Services of the Senate and the House of 
Representatives a report detailing the planned expenditures of 
funds to support implementation of the Department of Defense's 
BRAC requirements.
      The planned expenditures included $1,160.3 million to 
initiate planning, design, and construction of facilities; 
$82.3 million for activities required by the National 
Environmental Policy Act and other environmental actions; 
$193.8 million to carry out personnel permanent changes of 
station, transportation of personnel property, sustainment of 
real property, and BRAC program management; and $52.6 million 
for the procurement of collateral equipment, information 
technology systems, training, and other transition support 
services.
      The following table provides the projects and other 
activities that were identified by the Department to be carried 
out by each service using amounts made available in fiscal year 
2006.
      The conferees continue to review the justification for 
the construction projects and other BRAC V activities within 
these accounts to ensure amounts authorized for this program 
are used solely to carry out the decisions of the 2005 BRAC 
round.


2005 Defense base closure and realignment accounts
      The budget request included authorization of 
appropriations of $5,626.2 million for fiscal year 2007 to 
carry out military construction, environmental activities, and 
certain operating expenses related to the results of the 2005 
Defense Base Closure and Realignment (BRAC) round.
      The House bill would authorize appropriations of $5,626.2 
million for fiscal year 2007 to carry out military 
construction, environmental activities, and certain operating 
expenses related to the results of the 2005 BRAC round.
      The Senate amendment would authorize appropriations of 
$5,526.9 million for fiscal year 2007 to carry out military 
construction, environmental activities, and certain operating 
expenses related to the results of the 2005 BRAC round.
      The conferees agree to authorize appropriations of 
$5,626.2 million for fiscal year 2007 to carry out military 
construction, environmental activities, and certain operating 
expenses related to the results of the 2005 BRAC round.
      The following table provides the projects and other 
activities identified by the Department of Defense to be 
carried out with amounts authorized for appropriation within 
each service's BRAC V account.
      The conferees continue to review the justification for 
the construction projects and other BRAC V activities within 
these accounts to ensure amounts authorized for this program 
are used solely to carry out the decisions of the 2005 BRAC 
round.


                     Legislative Provisions Adopted

Short title (sec. 2001)
      The House bill contained a provision (sec. 2001) that 
would cite division B of this Act as the ``Joel Hefley Military 
Construction Authorization Act for Fiscal Year 2007.''
      The Senate amendment contained a provision (sec. 2001) 
that would cite division B of this Act as the ``Military 
Construction Authorization Act for Fiscal Year 2007.''
      The House recedes.
Recognition of Representative Joel Hefley upon his retirement from the 
        House of Representatives (sec. 2002)
      The conferees agree to include a provision that would 
recognize and commend the accomplishments of Representative 
Joel Hefley for 20 years of public service to the people of 
Colorado, members of the Armed Forces and their families, and 
the United States.

                            TITLE XXI--ARMY

                              Budget Item

Overview
      The budget request included $2,059.8 million for military 
construction and $1,271.8 million for family housing for the 
Army in fiscal year 2007.
      The House bill would authorize appropriations of $2,135.6 
million for military construction and $1,253.4 million for 
family housing.
      The Senate amendment would authorize appropriations of 
$2,180.8 million for military construction and $1,271.8 million 
for family housing.
      The conferees agree to authorize appropriations of 
$2,264.0 million for military construction and $1,254.4 million 
for family housing for the Army in fiscal year 2007.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Army by $31.0 
million for a project to acquire a temporary administrative 
facility at Fort Belvoir, Virginia. The conferees acknowledge 
that the substantial annual cost to lease the facility could be 
avoided by the acquisition of the building. Therefore, the 
conferees direct the Secretary of the Army to review the 
administrative space requirements for Fort Belvoir related to 
the 2005 Defense Base Closure and Realignment (BRAC) round. If 
the Secretary determines that this temporary building will be 
used to satisfy BRAC requirements, the conferees direct the 
Secretary to carry out the acquisition of the facility in 
fiscal year 2007 with funds authorized for BRAC activities, 
consistent with BRAC statutes.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Army by $15.4 
million for two projects to construct barracks at Camp 
Humphreys, Republic of Korea due to a favorable bid climate in 
the country.
      The conferees agree to decrease the authorization of 
appropriations for Army housing construction improvements by 
$16.2 million for a project to privatize housing at Fort 
McNair, Washington, D.C. The conferees note that the Secretary 
has decided that the best course of action to restore the 
houses to an adequate condition is to use military construction 
funds to renovate 18 historic houses. The conferees are 
concerned that the current cost estimates to restore these 
houses to an acceptable condition meeting historical 
preservation requirements exceeds $1.0 million per house. At a 
time when the Army is struggling to budget funds for the 
recapitalization and sustainment of critical mission facilities 
and infrastructure, the conferees do not support the current 
estimated costs for these units. Understanding the need to 
perform critical repairs for the safety and security of the 
housing occupants, the conferees direct the Secretary to 
reassess the costs and proposed renovation or replacement 
actions to be carried out to these houses, and to include in 
the budget request for fiscal year 2008 an amount that will 
allow the Army to carry out minimum essential repairs required 
to ensure adequate living conditions.
      The conferees agree to decrease the authorization of 
appropriations for Army housing maintenance by $1.2 million for 
a project to repair a housing unit at Stuggart, Germany, and 
direct that the Secretary consider a burden-sharing agreement 
with the host nation to complete the repair of this facility.

                     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 in fiscal 
year 2007.
      The Senate amendment contained a similar provision (sec. 
2101).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction projects authorized at each location.
Family housing (sec. 2102)
      The House bill contained a provision (sec. 2102) that 
would authorize new construction and planning and design of 
family housing units for the Army in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2102).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction 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 in fiscal year 2007.
      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 in fiscal 
year 2007. The provision would also provide an overall limit on 
the amount the Army is authorized to spend on military 
construction projects in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2104).
      The conference agreement includes this provision.

                       Items of Special Interest

Impact of 2005 Defense Base Closure and Realignment decisions to the 
        transportation infrastructure in Northern Virginia
      The conferees note that the decisions of the 2005 Defense 
Base Closure and Realignment (BRAC) round will have a 
significant impact on the transportation infrastructure and 
national highway system in Northern Virginia supporting Fort 
Belvoir and Marine Corps Base Quantico. These impacts, if not 
studied and addressed through a long-term investment strategy, 
have the potential to adversely affect timely access to these 
two critical military installations, as well as the quality of 
life for military members and their families on the 
installations and in the local communities.
      The conferees acknowledge that the Department of the Army 
is currently studying the impact to the environment resulting 
from relocation of functions and personnel to Fort Belvoir and 
the former Engineering Proving Grounds in Fairfax County, 
Virginia. The conferees direct the Secretary of the Army to 
work with appropriate Federal, Commonwealth, and local agencies 
to ensure the draft and final environmental impact statements 
address the following factors:
      (1) a description of the demographic, population, and 
other planning assumptions used to determine traffic 
infrastructure requirements;
      (2) an analysis of the direct and indirect impact to the 
transportation infrastructure resulting from the BRAC 
decisions;
      (3) a description of the standards and methodologies for 
the traffic impact studies contained in the study; and
      (4) an assessment of specific traffic infrastructure 
improvements and new construction projects identified to 
mitigate the effects of the increase of personnel, and 
estimates of the costs to carry out the projects.
Request for data related to unaccompanied housing requirements in the 
        Department of the Army
      The conferees note that the Department of the Army is 
carrying out programs to transform its force structure and 
global presence within the next 5 years, which will result in 
the permanent relocation of over 100,000 unaccompanied soldiers 
among Army installations. Concurrently, the Department of the 
Army is in the process of implementing business plans to carry 
out the decisions of the 2005 Defense Base Closure and 
Realignment (BRAC) round. In the budget justification material 
accompanying the fiscal year 2007 budget request for BRAC 2005, 
the Army included an assessment that the military construction, 
environmental, and related requirements, currently identified 
by the Army to implement its BRAC recommendations, will cost 
$5.7 billion more than the $9.5 billion budgeted by the 
Department of Defense for the Army over the Future Years 
Defense Program. In subsequent testimony to Congress, Army 
officials estimated that the shortfall may be as high as $8.0 
billion.
      In both BRAC and transformation initiatives, a major 
expense for the Army will be the construction of new 
unaccompanied housing facilities to support the relocation of 
military personnel. The conferees are concerned that the 
inadequate planning and scarce resources within the Department 
of the Army to carry out BRAC and transformation initiatives 
will result in too many unaccompanied junior enlisted personnel 
having to find adequate quarters off base due to a lack of 
adequate on-base facilities. The conferees recognize that local 
communities have limited resources to be able to accommodate 
the increase in demand for barracks-type housing at market 
rates commensurate with a military member's Basic Allowance for 
Housing. The conferees are concerned that this limited 
availability could force military personnel to seek housing at 
substantial distances from military bases, detrimentally 
affecting both readiness and their quality of life.
      To address this substantial requirement to construct 
unaccompanied housing on military installations, the conferees 
note that Congress has granted authority to the Department of 
the Army to enter into agreements with eligible entities to 
provide for the acquisition or construction of military 
unaccompanied housing units on or near military installations. 
Similar authorities have been used to dramatically improve the 
quality of family housing for military personnel across all 
services.
      In the statement of managers accompanying the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-
163), the conferees encouraged ``the Secretary of the Army to 
consider the use of alternate authorities for the construction 
of unaccompanied housing in the development of plans for 
permanent facilities at installations planned for substantial 
increases in the number of unaccompanied personnel.'' The 
conferees acknowledge that the Department of the Army has 
initiated a project to acquire unaccompanied housing using 
alternative authorities at Fort Drum, New York. To date, no 
other similar projects have been initiated at other Army 
installations planned for a substantial population increase of 
military personnel.
      In order to more accurately understand the Department of 
the Army's current status concerning the housing of 
unaccompanied personnel, the conferees direct the Secretary of 
the Army to submit to the congressional defense committees, not 
later than March 1, 2007, a report on the following:
      (1) the current number of each rank of unaccompanied 
personnel living either on or off post at each major Army 
installation in the United States;
      (2) the number of each rank of unaccompanied personnel 
projected to be living either on or off post at each major Army 
installation in the United States by 2011;
      (3) a description of the Department of the Army's policy 
concerning the use of alternate authorities for the acquisition 
of unaccompanied housing; and
      (4) an assessment by the Secretary of the Army of the 
costs, benefits, utility, and restrictions of using the 
alternate authorities to acquire unaccompanied housing.

                            TITLE XXII--NAVY

                              Budget Item

Overview
      The budget request included $1,162.0 million for military 
construction and $814.2 million for family housing for the Navy 
in fiscal year 2007.
      The House bill would authorize appropriations of $1,219.9 
million for military construction and $818.1 million for family 
housing.
      The Senate amendment would authorize appropriations of 
$1,268.8 million for military construction and $803.6 million 
for family housing.
      The conferees agree to authorize appropriations of 
$1,291.3 million for military construction and $818.1 million 
for family housing for the Navy in fiscal year 2007.
      The conferees agree to fully authorize the project to 
recapitalize Hangar 5 at Whidbey Island, Washington, but to 
decrease the authorization of appropriations for military 
construction for the Navy by $31.2 million for this project. 
The conferees expect the Secretary of the Navy to carry out 
this project in fiscal year 2007 using incremental 
appropriations, as was initially proposed by the Department of 
the Navy during the preparation of the budget request for 
fiscal year 2007.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Navy by $1.4 
million for a project to construct an addition to Hockmuth 
Hall, Marine Corps Base Quantico, Virginia due to an error in 
the amount included in the budget request for fiscal year 2007.

                     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 in fiscal 
year 2007.
      The Senate amendment contained a similar provision (sec. 
2201).
      The conference agreement includes this provision. The 
amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction projects authorized at each location.
Family housing (sec. 2202)
      The House bill contained a provision (sec. 2202) that 
would authorize new construction and planning and design of 
family housing units for the Navy in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2202).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction 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 in fiscal year 2007.
      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 in fiscal 
year 2007. The provision would also provide an overall limit on 
the amount the Navy is authorized to spend on military 
construction projects in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2204).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2004, 2005, 
        and 2006 projects (sec. 2205)
      The House bill contained a provision (sec. 2205) that 
would amend section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 2004 (division B of Public 
Law 108-136), as amended, and the Military Construction 
Authorization Act for Fiscal Year 2005 (division B of Public 
Law 108-375), as amended, to consolidate into one project the 
authorities currently provided in two separate projects for the 
construction of an outlying landing field at Washington County, 
North Carolina.
      The Senate amendment contained a provision (sec. 2205) 
that would amend section 2201 of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163) to change project authorizations for Marine Corps 
Base, Camp Pendleton, California and Marine Corps Base, 
Quantico, Virginia.
      The Senate recedes with an amendment that would change a 
project authorization for Marine Corps Base, Camp Pendleton, 
California.

                         TITLE XXIII--AIR FORCE

                              Budget Item

Overview
      The budget request included $1,156.1 million for military 
construction and $1,938.2 million for family housing for the 
Air Force in fiscal year 2007.
      The House bill would authorize appropriations of $1,233.7 
million for military construction and $1,924.2 million for 
family housing.
      The Senate amendment would authorize appropriations of 
$1,258.3 million for military construction and $1,937.2 million 
for family housing.
      The conferees agree to authorize appropriations of 
$1,308.2 million for military construction and $1,923.2 million 
for family housing for the Air Force in fiscal year 2007.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Air Force by 
$15.5 million for a project to construct a large vehicle 
inspection center and access road at Andersen Air Force Base, 
Guam due to the lack of a comprehensive masterplan that 
incorporates all proposed infrastructure and facility projects 
and investments required to support new missions in Guam, 
including the relocation of 7,000 U.S. Marines from Okinawa, 
Japan, to Guam.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Air Force by 
$9.3 million for a project to construct a dormitory at Kunsan 
Air Base, Republic of Korea due to a favorable bid climate in 
the country.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Air Force by 
$14.2 million for a project to construct a common battlefield 
airman training complex at an unspecified worldwide location 
due to concerns with the status of an environmental impact 
analysis.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Air Force by 
$26.0 million for a project to construct a Global Hawk aircraft 
maintenance and operations complex at Naval Base Sigonella, 
Italy because approval from the host nation to proceed with the 
project has not yet been received.
      The conferees agree to decrease the authorization of 
appropriations for family housing military construction for the 
Air Force by $1.0 million for a project to replace housing at 
Minot Air Force Base, North Dakota due to the cost efficiencies 
gained by the substantial scope of the project.
      The conferees agree to decrease the authorization of 
appropriations for family housing military construction for the 
Air Force by $14.0 million for a project to replace housing at 
Ramstein Air Base, Germany due to errors in the budget request 
for fiscal year 2007 in the calculation of supporting costs for 
the project.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the Air Force by 
$8.5 million for planning and design due to excess amounts in 
the budget request for fiscal year 2007 identified by the Air 
Force, which would be available for other projects.
      The conferees agree to change a project title for the Air 
Force at Cape Canaveral, Florida in the table entitled 
``Military Construction Authorizations for Fiscal Year 2006,'' 
as contained in the statement of managers accompanying the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163), from ``Satellite Processing Operations Support 
Facility'' to ``Satellite Alert Facility.''

                     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 in 
fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2301).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction projects authorized at each location.
Family housing (sec. 2302)
      The House bill contained a provision (sec. 2302) that 
would authorize new construction and planning and design of 
family housing units for the Air Force in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2302).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction 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 in fiscal year 2007.
      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 in 
fiscal year 2007. The provision would also provide an overall 
limit on the amount the Air Force is authorized to spend on 
military construction projects in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2304).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2006 project 
        (sec. 2305)
      The Senate amendment contained a provision (sec. 2305) 
that would amend section 2301 of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163) to decrease a project authorization for MacDill 
Air Force Base, Florida.
      The House bill contained no similar provision.
      The House recedes.

                        Item of Special Interest

Military construction project for Phase 1 of a Basic Expeditionary 
        Airman Skill Training Campus at Lackland Air Force Base, Texas
      The conferees note that the Chief of Staff of the Air 
Force recently requested additional authorization for a 
``critical'' military construction requirement not included in 
the President's budget request for fiscal year 2007. The 
conferees agree that the construction of Phase 1 of a Basic 
Expeditionary Airman Skill Training Campus at Lackland Air 
Force Base, Texas could significantly enhance the ability of 
the Air Force to deploy in expeditionary environments. The 
conferees note that the Secretary of the Air Force currently 
has authorities provided by Congress to address urgent, 
unforeseen military construction requirements. Section 2803 of 
title 10, United States Code, authorizes the Secretary 
concerned to carry out a military construction project not 
otherwise authorized by law if determined to be vital to the 
national security or to the protection of health, safety, or 
the quality of the environment and urgent enough not to wait 
for the next budget cycle.
      Therefore, the conferees encourage the Secretary of the 
Air Force to use this authority to carry out this military 
construction project, if the Secretary of the Air Force 
determines it is a critical requirement, using amounts from 
within the total authorization of appropriations for military 
construction for the Air Force included in this Act.

                      TITLE XXIV--DEFENSE AGENCIES

                              Budget Item

Overview
      The budget request included $1,339.2 million for military 
construction (including construction of chemical 
demilitarization facilities) and $59.8 million for family 
housing for defense agencies in fiscal year 2007.
      The House bill would authorize appropriations of $1,283.1 
million for military construction and $59.8 million for family 
housing.
      The Senate amendment would authorize appropriations of 
$1,344.7 million for military construction and $59.8 million 
for family housing.
      The conferees agree to authorize appropriations of 
$1,286.2 million for military construction and $59.8 million 
for family housing for defense agencies in fiscal year 2007.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the TRICARE 
Management Agency by $41.4 million for a project to replace the 
clinic at MacDill Air Force Base, Florida. The conferees agree 
to fully authorize the project and expect the Director of 
Health Affairs to carry out this project in fiscal year 2007 
using incremental appropriations, as was initially proposed by 
the TRICARE Management Agency during the preparation of the 
budget request for fiscal year 2007.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the defense 
agencies by $30.0 million for a project to construct increment 
2 of a regional security operations center at Fort Gordon, 
Georgia due to delays in the award of the construction 
contract.
      The conferees agree to decrease the authorization of 
appropriations for military construction for the defense 
agencies by $4.5 million for the first phase of a project to 
upgrade utilities at the headquarters complex at Fort Meade, 
Maryland. The conferees support the requirement to upgrade the 
existing Supervisory Control and Data Acquisition system 
servers, workstations, and associated software to improve the 
energy control and management systems and encourage the 
Director of the National Security Agency to fund the 
improvements with appropriations provided for operation and 
maintenance.

                     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 
in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2401).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction projects authorized at each location.
Family housing (sec. 2402)
      The House bill contained a provision (sec. 2402) that 
would authorize construction and planning and design of family 
housing units for defense agency activities in fiscal year 
2007.
      The Senate amendment contained a similar provision (sec. 
2402).
      The conference agreement includes this provision.
      The amounts authorized are listed in this provision on an 
installation-by-installation basis. A State list of projects 
contained in the table at the beginning of Division B of this 
conference report entitled ``Military Construction 
Authorizations for Fiscal Year 2007'' provides the binding list 
of specific construction projects authorized at each location.
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.
Authorized base closure and realignment activities funded through 
        Department of Defense Base Closure Account 2005 (sec. 2404)
      The House bill contained a provision (sec. 2404) that 
would authorize the amount for base closure and realignment 
(BRAC) activities and projects in fiscal year 2007. The 
provision would also amend the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163) to authorize the amount for BRAC activities and 
projects for fiscal year 2006.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Authorization of appropriations, Defense Agencies (sec. 2405)
      The House bill contained a provision (sec. 2405) that 
would authorize specific appropriations for each line item 
contained in the Defense Agencies' military construction budget 
in fiscal year 2007. The provision would also provide an 
overall limit on the amount the Defense Agencies are authorized 
to spend on military construction projects in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2404).
      The conference agreement includes this provision.
Modification of authority to carry out certain fiscal year 2006 project 
        (sec. 2406)
      The House bill contained a provision (sec. 2406) that 
would amend the Military Construction Authorization Act for 
Fiscal Year 2006 (division B of Public Law 109-163) to increase 
project authorizations for the National Security Agency for 
Augusta, Georgia; Kunia, Hawaii; and Menwith Hill, United 
Kingdom.
      The Senate amendment contained a similar provision (sec. 
2405).
      The House recedes with an amendment that would increase 
the project authorization for the National Security Agency for 
Menwith Hill, United Kingdom.
      The conferees note that the project authorizations for 
the National Security Agency for Augusta, Georgia and Kunia, 
Hawaii were amended by sections 7016 and 7017 of the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006 (Public Law 109-234).

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

                              Budget Item

Overview
      The budget request included $221.0 million for the North 
Atlantic Treaty Organization Security Investment program.
      The House bill would authorize appropriations of $201.0 
million, a decrease of $20.0 million.
      The Senate amendment would authorize appropriations of 
$206.0 million, a decrease of $15.0 million.
      The conferees agree to authorize appropriations of $201.0 
million, a decrease of $20.0 million.

                     Legislative Provisions Adopted

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 elsewhere in this conference report, 
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 appropriation of $200.9 million for the U.S. 
contribution to the North Atlantic Treaty Organization Security 
Investment program.
      The Senate amendment contained a similar provision (sec. 
2502).
      The Senate recedes.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

                              Budget Item

Overview
      The budget request included $858.8 million for military 
construction for National Guard and reserve facilities in 
fiscal year 2007.
      The House bill would authorize appropriations of $1,012.7 
million.
      The Senate amendment would authorize appropriations of 
$1,052.9 million.
      The conferees agree to authorize appropriations of 
$1,153.1 million for National Guard and reserve facilities in 
fiscal year 2007, as set forth in the following table:

        Reserve Component                                   $ (millions)
Army National Guard.....................................           561.4
Air National Guard......................................           294.3
Army Reserve............................................           190.6
Naval and Marine Corps Reserve..........................            50.0
Air Force Reserve.......................................            56.8
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................         1,153.1

      The conferees agree to decrease the authorization of 
appropriations for military construction for the Naval and 
Marine Corps Reserve by $5.2 million for a project to relocate 
a reserve center at Camp Lejeune, North Carolina due to a 
notification received by the Secretary of the Navy that the 
project is no longer required.

                     Legislative Provision 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 components in fiscal year 2007.
      The Senate amendment contained a similar provision (sec. 
2601).
      The conference agreement includes this provision.
      A State list of projects contained in the table at the 
beginning of Division B of this conference report entitled 
``Military Construction Authorization for Fiscal Year 2007'' 
provides the binding list of specific construction projects 
authorized at each location.

        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 Security Investment program, and 
National Guard and reserve projects will expire on October 1, 
2009, or the date of enactment of an act authorizing funds for 
military construction for fiscal year 2010, whichever is later. 
This requirement would not apply to funds obligated prior to 
the expiration date.
      The Senate amendment contained an identical provision 
(sec. 2701).
      The conference agreement includes this provision.
Extension of authorizations of certain fiscal year 2004 projects (sec. 
        2702)
      The Senate amendment contained a provision (sec. 2702) 
that would provide for the extension of authorizations of 
certain fiscal year 2004 military construction projects until 
October 1, 2007, or the date of enactment of an act authorizing 
funds for military construction for fiscal year 2008, whichever 
is later.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete 
certain projects for which the military department concerned 
has notified the conferees that the extension is no longer 
required.
Extension of authorizations of certain fiscal year 2003 projects (sec. 
        2703)
      The Senate amendment contained a provision (sec. 2703) 
that would provide for the extension of authorizations of 
certain fiscal year 2003 military construction projects until 
October 1, 2007, or the date of enactment of an act authorizing 
funds for military construction for fiscal year 2008, whichever 
is later.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Effective date (sec. 2704)
      The House bill contained a provision (sec. 2702) that 
would provide that titles XXI, XXII, XXIII, XXIV, XXV, and XXVI 
of this Act shall take effect on October 1, 2006, or the date 
of enactment of this Act, whichever is later.
      The Senate amendment contained an identical provision 
(sec. 2704).
      The conference agreement includes this provision.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

                       Items of Special Interest

Incremental funding of military construction projects
      The conferees note that, in a memo dated January 10, 
2006, the Associate Director of National Security Programs in 
the Office of Management and Budget (OMB) provided guidance to 
the Under Secretary of Defense (Comptroller) and Chief 
Financial Officer about requests for incremental funding of 
military construction projects. OMB has stated the intent to 
limit incremental funding of military construction projects to 
an exceptional practice, as intended by OMB Circular A-11. This 
guidance represents a change in policy for the budgeting of 
certain military construction projects.
      The conferees acknowledge that requesting full funding to 
ensure a military construction project results in a complete 
and useable facility, or useable improvement to an existing 
facility, should be the preferred practice consistent with law 
and current policy to ensure an accurate accounting of all 
obligations incurred by the Federal Government. The conferees 
also acknowledge that, for certain military construction 
projects estimated to exceed $50.0 million and where the 
construction period is planned to exceed 2 years, Congress has 
supported the use of incremental funding to address the fact 
that not all military construction funds appropriated by 
Congress for a project will be expended in the first year. In 
these cases, the Department of Defense has had the option of 
requesting only those appropriated amounts expected to be 
expended in the budget year, and notifying potential 
contractors that the project's completion is subject to 
subsequent appropriations. This option then allows the 
Department to address additional military requirements in the 
military construction budget request; and accelerating the 
completion of critical projects for military readiness, 
operations, and service members' quality of life. Because of 
the efficiencies gained by this method, the conferees' 
agreement includes the use of incremental funding not proposed 
in the budget request for certain military construction 
projects.
      The conferees also note that the Department has requested 
incremental funding for single military construction projects 
that will construct multiple complete and useable facilities. 
The conferees are concerned that this practice will encourage 
the bundling of facility requirements into very large 
contracts, thereby curtailing contractor competition. 
Therefore, the conferees encourage the Department to avoid the 
use of incremental funding requests for projects with multiple 
complete and useable facilities, except in cases where 
operational requirements dictate a compelling need for 
facilities.
Updating foreign currency fluctuation adjustment for certain military 
        family housing leases in Korea
      The conferees note that section 2801 of the National 
Defense Authorization Act for Fiscal Year 2003 (Public Law 107-
314) amended section 2828 of title 10, United States Code, to 
authorize the Secretaries of military departments to lease an 
additional 2,800 family housing units in Korea at a maximum 
amount of $35,000 per unit per year. This authority was in 
addition to existing authority to lease a certain number of 
family housing units at $25,000 per unit per year, which was 
provided by Congress in 1987. Both authorities include a 
statutory requirement in section 2828 to adjust the maximum 
amounts annually to account for foreign currency fluctuation 
and changes to the consumer price index.
      Congress clearly intended that section 2801 provide the 
Secretary concerned permanent authority to lease a certain 
number of family housing units in Korea at a greater maximum 
amount that was then currently authorized by statute. 
Therefore, any adjustments for foreign currency fluctuation and 
the consumer price index to maximum lease amounts should 
reflect this intent.
      As such, the conferees direct the Secretary of a military 
department, in making adjustments required by paragraph (5)(B) 
of section 2828(e), to the maximum lease amount provided in 
paragraph (4) of such section for up to 2,800 units of family 
housing in Korea subject to a maximum lease amount of $35,000 
per unit per year, to base such adjustments on the same 
beginning date specified in law for adjustments required by 
paragraph (5)(A) of such section.

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

                     Legislative Provisions Adopted

Increase in maximum annual amount authorized to be obligated for 
        emergency military construction (sec. 2801)
      The House bill contained a provision (sec. 2801) that 
would amend section 2803 of title 10, United States Code, to 
increase from $45.0 million to $60.0 million the maximum amount 
of funds the Secretary of each military department may annually 
obligate using emergency construction authorities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would increase 
from $45.0 million to $50.0 million the maximum amount of funds 
the Secretary concerned may annually obligate using emergency 
construction authorities.
One-year extension of temporary, limited authority to use operation and 
        maintenance funds for construction projects outside the United 
        States (sec. 2802)
      The House bill contained a provision (sec. 2810) that 
would extend through 2007 the authority provided by section 
2808 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136), which permits the Secretary of 
Defense to utilize operation and maintenance funds to construct 
facilities necessary for temporary operational requirements 
related to a declaration of war, national emergency, or 
contingency.
      The Senate amendment contained a similar provision (sec. 
2801) that would extend the authority by 3 years.
      The Senate recedes.
Repeal of requirement to determine availability of suitable alternative 
        housing for acquisition in lieu of construction of new family 
        housing (sec. 2803)
      The Senate amendment contained a provision (sec. 2808) 
that would repeal section 2823 of title 10, United States Code, 
which requires the Secretaries of military departments to 
consult with the Secretary of Housing and Urban Development on 
the availability of suitable alternate housing before entering 
into contracts to construct authorized family housing units in 
the United States.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Authority to continue to occupy leased family housing for United States 
        Southern Command personnel (sec. 2804)
      The Senate amendment contained a provision (sec. 2816) 
that would provide temporary authority to the Secretary of the 
Army to manage the occupancy of housing units leased under the 
authority of section 2828(b)(4) of title 10, United States 
Code, in a manner consistent with Army housing policy as it 
relates to allowing the family members of a member of the armed 
forces deployed overseas on an unaccompanied tour to continue 
to occupy military housing.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Consideration of alternative and more efficient uses for general 
        officer and flag officer quarters in excess of 6,000 square 
        feet (sec. 2805)
      The House bill contained a provision (sec. 2808) that 
would amend section 2831 of title 10, United States Code, to 
require the Secretary of Defense to identify and consider 
alternative uses for general and flag officer housing units 
that exceed 6,000 square feet.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Modification of notification requirements related to cost variation 
        authority (sec. 2806)
      The Senate amendment contained a provision (sec. 2803) 
that would amend section 2853(c) of title 10, United States 
Code, to modify the requirement for the Secretary of a military 
department to notify the congressional defense committees of a 
variation in the cost of a military construction contract.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Consideration of local comparability of floor areas in construction, 
        acquisition, and improvement to military unaccompanied housing 
        (sec. 2807)
      The House bill contained a provision (sec. 2802) that 
would amend section 2826 of title 10, United States Code, to 
require the Secretary concerned to ensure that floor areas in 
unaccompanied housing be built to standards consistent with 
local private construction.
      The Senate amendment contained a similar provision (sec. 
2804)
      The House recedes with a technical amendment.
      The conferees encourage the Secretary of the Navy to 
implement, for the future construction, acquisition, and 
improvement of military unaccompanied housing, a policy which 
provides a consistent floor area standard between the Navy and 
the Marine Corps, and which does not exceed the floor areas of 
similar local private housing.
Certification required for military construction projects for 
        facilities designed to provide training in urban operations 
        (sec. 2808)
      The Senate amendment contained a provision (sec. 2811) 
that would restrict the obligation of funds for military 
construction projects that would provide training in urban 
operations, including urban assault courses, range complexes, 
shoot houses, and combined arms training facilities, beginning 
in fiscal year 2007, until the Under Secretary of Defense for 
Personnel and Readiness certifies to the congressional defense 
committees that the Department of Defense has developed a 
training strategy and assessed the project against that 
strategy.
      The House bill contained no similar provision.
      The House recedes with an amendment that would allow the 
Secretary of Defense to obligate funds for such projects, if 
carried out under specific emergency authorities identified in 
this section.
Authority to carry out military construction projects in connection 
        with industrial facility investment program (sec. 2809)
      The Senate amendment contained a provision (sec. 2802) 
that would authorize the Secretary of Defense to carry out a 
military construction project not previously authorized, using 
funds appropriated or otherwise made available for that 
purpose, to carry out activities to reengineer industrial 
processes in support of the goals of section 2474(a)(2) of 
title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees note that this section authorizes the 
Secretary to include in the annual budget request for military 
construction an unspecified authorization for an amount to be 
used for projects not otherwise authorized, similar to the 
Energy Conservation Investment Program. The conferees expect 
that projects submitted by the services, which meet guidelines 
established for process improvements in industrial facilities, 
will compete for funding based on an assessment of their value 
and rate of economic return. The conferees intend for this 
authority to be used by the Secretary to encourage investment 
in process improvements to enhance the performance of the 
Department's equipment maintenance facilities.
Repeal of special requirement for military construction contracts on 
        Guam (sec. 2810)
      The House bill contained a provision (sec. 2804) that 
would repeal section 2864 of title 10, United States Code, 
which places special limitations on military construction 
contracts in Guam.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees note that while the Davis-Bacon law is not 
applicable to military construction projects in Guam, in 
general, federal labor laws, including the Fair Labor Standards 
Act and the federal minimum wage, do apply in Guam. The 
conferees expect the military departments, the government of 
Guam, the U.S. Commissioner of Immigration and Naturalization, 
and other federal entities as appropriate, to ensure that non-
immigrant alien workers who perform construction work for the 
Department of Defense in Guam are treated fairly and in 
accordance with applicable law.
Temporary expansion of authority to convey property at military 
        installations to support military construction (sec. 2811)
      The House bill contained a provision (sec. 2806) that 
would amend section 2869 of title 10, United States Code, to 
authorize the Secretaries of the military departments to 
exchange excess property at any military installation for 
construction projects, land, housing, or to support agreements 
to limit encroachments under section 2684a of title 10, United 
States Code.
      The Senate amendment contained a provision (sec. 2807) 
that would repeal section 2869 to authorize the Secretary of a 
military department to transfer property at military 
installations that have been closed or are subject to closure 
to persons who, in exchange, construct or provide family 
housing, unaccompanied housing, and military construction 
activities.
      The Senate recedes with an amendment that would establish 
an expiration date of September 30, 2008, to the authority 
granted to the Secretaries of the military departments to 
exchange real property, deemed excess to the requirements of 
the Department of Defense, in return for the construction of 
new facilities.
Pilot projects for acquisition or construction of military 
        unaccompanied housing (sec. 2812)
      The House bill contained a provision (sec. 2807) that 
would amend section 2881a of title 10, United States Code, to 
reduce notification and wait periods required before the 
Secretary of the Navy may enter into a contract for the 
privatization of unaccompanied housing using the authorities in 
section 2881a. The provision would also extend from September 
30, 2007, to September 30, 2011, the expiration of the pilot 
authority in section 2881a and increase the number of pilot 
projects authorized from three to six.
      The Senate amendment contained a provision (sec. 2810) 
that would amend section 2881a to extend the expiration date of 
the authorization for the pilot projects for unaccompanied 
housing privatization from September 30, 2007, to September 30, 
2009.
      The House recedes.

        Subtitle B--Real Property and Facilities Administration

Congressional notice requirements, in advance of acquisition of land by 
        condemnation for military purposes (sec. 2821)
      The House bill contained a provision (sec. 2825) that 
would express the sense of Congress that the Secretary of 
Defense, when acquiring land for military purposes, should make 
every effort to do so by purchases from willing sellers, and 
that the use of condemnation, eminent domain, or seizure 
procedures should only be employed as a matter of last resort 
in cases of compelling national security requirements. The 
provision would also amend section 2663 of title 10, United 
States Code, to require prior notification to Congress before 
the Secretary of Defense may begin condemnation, eminent 
domain, or seizure procedures to acquire property.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the reporting requirement. The amendment would also authorize 
the Secretary of a military department, in cases where the 
requirement is vital to national security or where any delay 
would be detrimental to life, health, or safety, to begin legal 
proceedings to acquire any interest in land through the use of 
condemnation, eminent domain, or seizure procedures prior to 
congressional notification. In such cases, the Secretary 
concerned would be required to notify the congressional defense 
committees within 7 days of the commencement of legal 
proceedings.
Consolidation of Department of Defense authorities regarding granting 
        of easements for rights-of-way (sec. 2822)
      The House bill contained a provision (sec. 2821) that 
would amend section 2668 of title 10, United States Code, to 
consolidate and make technical corrections to authorities 
available to the Secretaries of the military departments to 
grant real property easements.
      The Senate amendment contained a similar provision (sec. 
2821).
      The Senate recedes.
Authority to grant restrictive easements for conservation purposes in 
        connection with land conveyances (sec. 2823)
      The House bill contained a provision (sec. 2822) that 
would authorize the Secretaries of the military departments to 
grant restrictive easements for conservation purposes to State 
or local governments, or qualified organizations, in connection 
with the conveyance of real property.
      The Senate amendment contained a similar provision (sec. 
2822).
      The Senate recedes with a clarifying amendment that would 
limit the granting of such restrictive easements unless the 
proposed recipient of the easement consents to the receipt of 
the easement.
Maximum term of leases for structures and real property relating to 
        structures in foreign countries needed for purposes other than 
        family housing (sec. 2824)
      The House bill contained a provision (sec. 2823) that 
would amend section 2675 of title 10, United States Code, to 
increase from 5 years to 10 years the maximum time period 
authorized for the lease of a structure required for a military 
purpose other than family housing in a foreign country.
      The Senate amendment contained a similar provision (sec. 
2826).
      The Senate recedes.
Consolidation of laws relating to transfer of Department of Defense 
        real property within the Department of Defense and to other 
        Federal agencies (sec. 2825)
      The House bill contained a provision (sec. 2824) that 
would amend section 2696 of title 10, United States Code, to 
consolidate and clarify the requirement for the Secretary of 
Defense to screen for use by the Department of Defense or other 
Federal agencies proposed transfers or conveyances of real 
property currently deeded to the Department.
      The Senate amendment contained a similar provision (sec. 
2823).
      The Senate recedes with a technical amendment.
Defense access road program (sec. 2826)
      The House bill contained a provision (sec. 2826) that 
would amend section 2837 of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163) to add the consideration of transit systems to the 
requirement for the Secretary of Defense to conduct a study of 
the impact to local transportation infrastructure around 
military installations affected by significant personnel 
realignments.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Reports on Army operational ranges (sec. 2827)
      The Senate amendment contained a provision (sec. 2828) 
that would require the Secretary of the Army to submit a report 
to the congressional defense committees not later than November 
30, 2006, containing an analysis of any potential expansion of 
the Pinon Canyon Maneuver Site, Fort Carson, Colorado. The 
provision would also restrict the Secretary from carrying out 
any actions related to the expansion of the site until after 30 
days of receipt of the report by the congressional defense 
committees. The provision would also require the Secretary to 
submit a report to the congressional defense committees not 
later than February 1, 2007, containing an assessment of 
training ranges operated by the Army to support major training 
units. The House bill contained no similar provision.
      The House recedes with a technical amendment. The 
conferees agree to require the Secretary to include other types 
of Army operational ranges in the report.

                Subtitle C--Base Closure and Realignment

Modification of deposit requirements in connection with lease proceeds 
        received at military installations approved for closure or 
        realignment after January 1, 2005 (sec. 2831)
      The House bill contained a provision (sec. 2831) that 
would amend section 2667 of title 10, United States Code, to 
authorize the Secretary of Defense to deposit into the 
appropriate base closure and realignment account lease proceeds 
received at a military installation closed or realigned by the 
2005 Defense Base Closure and Realignment round.
      The Senate amendment contained a similar provision (sec. 
2833).
      The House recedes with a clarifying amendment.
Report on Air Force and Air National Guard bases affected by 2005 round 
        of defense base closure and realignment (sec. 2832)
      The Senate amendment contained a provision (sec. 2834) 
that would require the Secretary of the Air Force to submit to 
the congressional defense committees a report not later than 
January 1, 2007, on planning by the Department of the Air Force 
for future roles and missions for each Air Force and Air 
National Guard installation affected by the 2005 Defense Base 
Closure and Realignment process.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                      Subtitle D--Land Conveyances

Conveyance of easement, Pine Bluff Arsenal, Arkansas (sec. 2841)
      The conferees agree to include a provision that would 
authorize the Secretary of the Army to convey, without 
consideration, to Jefferson County, Arkansas an easement over 
approximately 38.18 acres of property adjacent to Pine Bluff 
Arsenal, Arkansas for the purpose of permitting the county to 
construct, maintain, and operate a railroad on the property 
encumbered by the easement. The provision would require the 
Secretary to determine that the conveyance, and the subsequent 
use of the easement by the county, would not adversely impact 
the mission of Pine Bluff Arsenal.
Modification of land transfer authority, Potomac Annex, District of 
        Columbia (sec. 2842)
      The Senate amendment contained a provision (sec. 2827) 
that would amend section 2831 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201) to 
authorize the Secretary of the Navy to convey, without 
consideration other than certain reimbursement requirements, to 
the United States Institute of Peace administrative 
jurisdiction over one acre and two buildings located thereon, 
known as building 6 and building 7, in addition to the 3 acres 
originally authorized.
      The House bill contained no similar amendment.
      The House recedes with a technical amendment.
Land conveyance, Naval Air Station, Barbers Point, Hawaii (sec. 2843)
      The House bill contained a provision (sec. 2841) that 
would direct the Secretary of the Navy, not later than 
September 30, 2008, to dispose of approximately 499 acres at 
the former Naval Air Station Barbers Point, Hawaii that are 
subject to the Ford Island Master Development Agreement for the 
purpose of promoting the beneficial development of the real 
property.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would clarify 
the action required to be completed by the Secretary by 
September 30, 2008.
      The conferees note the concurrence of the Secretary of 
the Navy with this directive provision. The conferees also 
acknowledge the special circumstances surrounding this parcel 
of land and reaffirm a commitment to minimize the use of 
legislation to direct the Secretaries of the military 
departments to dispose of land under their jurisdiction.
Land conveyances, Omaha, Nebraska (sec. 2844)
      The Senate amendment contained a provision (sec. 2843) 
that would authorize the Secretaries of the Army and the Navy 
to convey to the Metropolitan Community College area four 
parcels of property consisting of approximately 12 acres 
currently under the control of the Army and Navy Reserve at the 
Fort Omaha campus of the College in Omaha, Nebraska for 
educational purposes.
      The House bill contained no similar provision.
      The House recedes.
Land conveyance, Hopkinton, New Hampshire (sec. 2845)
      The Senate amendment contained a provision (sec. 2854) 
that would authorize the Secretary of the Army to convey to the 
Town of Hopkinton, New Hampshire a parcel of property 
consisting of approximately 90 acres known as Kast Hill for the 
purpose of permitting the town to use the existing sand and 
gravel resources on the property and to ensure perpetual 
conservation of the property.
      The House bill contained no similar provision.
      The House recedes.
Land conveyance, North Hills Army Reserve Center, Allison Park, 
        Pennsylvania (sec. 2846)
      The House bill contained a provision (sec. 2844) that 
would authorize the Secretary of the Army to convey to the 
North Allegheny School District a parcel of property consisting 
of approximately 11 acres and containing the North Hills Army 
Reserve Center in Allison Park, Pennsylvania for the purpose of 
permitting the school district to use the property for 
educational and recreational purposes and for related parking 
facilities.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Transfer of jurisdiction, Fort Jackson, South Carolina (sec. 2847)
      The conferees agree to include a provision that would 
authorize the Secretary of the Army to transfer, without 
reimbursement, to the administrative jurisdiction of the 
Secretary of Veterans Affairs a parcel of real property 
consisting of approximately 600 acres at Fort Jackson, South 
Carolina for the purpose of permitting the Secretary of 
Veterans Affairs to establish a national cemetery on the 
property.
Sense of Congress regarding land conveyance involving Army Reserve 
        Center, Marshall, Texas (sec. 2848)
      The House bill contained a provision (sec. 2846) that 
would express the sense of Congress that the Secretary of the 
Army should consider the feasibility of conveying an Army 
Reserve Center in Marshall, Texas to the Marshall-Harrison 
County Veterans Association for the purpose of assisting in the 
erection of a veteran's memorial, the creation of a park, and 
the establishment of a museum honoring the sacrifices and 
accomplishments of the veterans of the armed forces.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Modifications to land conveyance authority, Engineering Proving 
        Grounds, Fort Belvoir, Virginia (sec. 2849)
      The House bill contained a provision (sec. 2845) that 
would amend section 2836 of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public 
Law 107-107) to authorize the Secretary of the Army to carry 
out an alternate agreement with the Commonwealth of Virginia 
for the design and construction of a parkway portion as part of 
the conveyance of two parcels of real property totaling 182 
acres at the Engineering Proving Grounds, Fort Belvoir, 
Virginia.
      The Senate amendment contained a similar provision (sec. 
2842)
      The Senate recedes.
Land conveyance, Radford Army Ammunition Plant, New River Unit, 
        Virginia (sec. 2850)
      The House bill contained a provision (sec. 2843) that 
would authorize the Secretary of the Army to convey, without 
consideration, to the Commonwealth of Virginia, on behalf of 
the Virginia Department of Veterans Services, a parcel of 
property consisting of approximately 85 acres located at the 
Radford Army Ammunition Plant, Radford, Virginia for the 
purpose of establishing a veterans' cemetery.
      The Senate amendment contained a similar provision (sec. 
2841).
      The Senate recedes with a clarifying amendment.

                      Subtitle E--Energy Security

Consolidation and enhancement of laws to improve Department of Defense 
        energy efficiency and conservation (sec. 2851)
      The Senate amendment contained a provision (sec. 2806) 
that would amend section 2865 of title 10, United States Code, 
to require the Secretary of Defense to designate energy 
performance goals consistent, where appropriate, with the 
Energy Policy Act of 2005 (Public Law 109-58). The provision 
would also expand the application of the section to include the 
consideration of alternate energy initiatives for vehicles and 
military support equipment, and make other technical 
clarifications. The provision would require the Secretary to 
ensure energy efficient products that meet the requirements of 
the Secretary are included in the construction of new 
facilities for the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would revise 
various sections in title 10, United States Code, related to 
energy usage and conservation, and would incorporate this 
provision within the revision. Elsewhere in this report, the 
conferees agree to include a separate provision on the use of 
energy efficient products in the construction of new 
facilities.
      The conferees intend for the Secretary to establish 
energy performance goals across all aspects of military 
operations, training, and the Department's facilities, which 
can be evaluated on a consistent basis to determine progress 
towards achievement. The conferees also acknowledge that 
certain energy saving measures adopted by the Secretary may not 
demonstrate an immediate economic payback. Therefore, the 
conferees agree to expand the Secretary's flexibility to 
evaluate energy conservation measures to include consideration 
of alternate energy initiatives and energy reduction 
performance goals, as opposed to requiring the Secretary to 
assess measures based solely on a specific economic return 
within 10 years to justify the investment.
Department of Defense goal regarding use of renewable energy to meet 
        electricity needs (sec. 2852)
      The Senate amendment contained a provision (sec. 2829) 
that would establish goals for the Department of Defense for 
the use of renewable energy sources.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Congressional notification of cancellation ceiling for Department of 
        Defense energy savings performance contracts (sec. 2853)
      The House bill contained a provision (sec. 2805) that 
would amend section 2865 of title 10, United States Code, to 
require a notice and wait period for the Secretary of Defense 
before the award of an energy savings performance contract that 
contains a cancellation ceiling in excess of $7.0 million.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Use of energy efficiency products in new construction (sec. 2854)
      The conferees agree to include a provision that would 
require the Secretary of Defense to ensure energy efficient 
products that meet the requirements of the Secretary are 
included in the construction of new facilities for the 
Department. These requirements were originally included in 
section 2806 of the Senate amendment.

                       Subtitle F--Other Matters

Availability of research and technical assistance under Defense 
        Economic Adjustment Program (sec. 2861)
      The Senate amendment contained a provision (sec. 2831) 
that would amend section 2391 of title 10, United States Code, 
to authorize the Secretary of Defense to award grants, conclude 
cooperative agreements, or enter into contracts for research 
and technical assistance.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Availability of community planning assistance relating to encroachment 
        of civilian communities on military facilities used for 
        training by the armed forces (sec. 2862)
      The House bill contained a provision (sec. 2851) that 
would amend section 2391 of title 10, United States Code, to 
authorize the Secretary of Defense to award grants for the 
purposes of addressing encroachment upon state-owned and 
operated National Guard facilities subject to significant use 
by the armed forces.
      The Senate amendment contained a similar provision (sec. 
2832).
      The Senate recedes with a technical amendment.
Prohibitions against making certain military airfields or facilities 
        available for use by civil aircraft (sec. 2863)
      The House bill contained a provision (sec. 2852) that 
would prohibit the Secretary of the Navy from entering into an 
agreement that would allow the regular use of property at, or 
conveyance of property for, civil aviation purposes at Marine 
Corps Air Station and Marine Corps Base Camp Pendleton, Marine 
Corps Air Station Miramar, and Naval Station North Island, 
California.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Modification of certain transportation projects (sec. 2864)
      The Senate amendment contained a provision (sec. 2851) 
that would amend section 1702 of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for 
Users (Public Law 109-59) to clarify the purpose for a project 
numbered 4651 authorized for Rickenbacker airport, Columbus, 
Ohio.
      The House bill contained no similar provision.
      The House recedes with an amendment that would combine 
this provision with a similar provision (sec. 2852) and would 
amend sections 1702 and 1934 of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for 
Users (Public Law 109-59) to clarify the purpose for projects 
numbered 4333 and 196 authorized for Detroit, Michigan.
Availability of funds for South County Commuter Rail project, 
        Providence, Rhode Island (sec. 2865)
      The Senate amendment contained a provision (sec. 1095) 
that would make funds authorized by paragraphs (34) and (35) of 
section 3034(d) of the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (Public Law 109-
59) available for the purchase of commuter rail equipment for 
the South County Commuter Rail project, Providence, Rhode 
Island, upon the receipt by the Secretary of the Rhode Island 
Department of Transportation of an approved environmental 
assessment.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Fox Point Hurricane Barrier, Providence, Rhode Island (sec. 2866)
      The Senate amendment contained a provision (sec. 2853) 
that would direct the Secretary of the Army to assume 
responsibility for the annual operation and maintenance of the 
Fox Point Hurricane Barrier, Providence, Rhode Island.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Federal funding for fixed guideway projects (sec. 2867)
      The Senate amendment contained a provision (sec. 2855) 
that would direct certain requirements prescribed by the 
Federal Transit Administration for cost effectiveness ratings 
not to apply to the Northstar Corridor Commuter Rail project in 
Minnesota.
      The House bill contained no similar provision.
      The House recedes.
Feasibility study regarding use of General Services Administration 
        property for Fort Belvoir, Virginia, realignment (sec. 2868)
      The conferees agree to include a provision that would 
require the Secretary of the Army, in consultation with the 
Administrator of General Services, to conduct a study that 
considers the potential costs, benefits, feasibility, and 
suitability of the exchange or purchase of property under the 
control of the General Services Administration in Springfield, 
Virginia.
      The conferees note that the relocation of thousands of 
military and civilian personnel to Fort Belvoir, Virginia may 
present significant transportation challenges. The conferees 
have taken steps to address these concerns in three other 
provisions in this report.
      The first provision would facilitate the construction of 
a segment of the Fairfax County parkway on the former 
Engineering Proving Grounds at Fort Belvoir.
      The second provision would urge the inclusion of mass 
transit improvements in the defense access roads program. The 
third provision would require the Secretary of the Army to 
incorporate within an ongoing environmental impact assessment a 
review of traffic infrastructure requirements, in collaboration 
with other Federal, State, and local agencies, at Fort Belvoir 
related to the impact of the realignment of personnel.
      The conferees believe that the Army should make every 
effort to proactively address the potential traffic congestion 
that could result from the relocation of personnel to Fort 
Belvoir. The conferees urge the Army to incorporate as many 
transportation improvements as possible into plans to support 
the arrival of these additional personnel.

                   Legislative Provisions Not Adopted

Authority to use proceeds from sale of military family housing to 
        support military housing privatization initiative
      The House bill contained a provision (sec. 2803) that 
would amend section 2831 of title 10, United States Code, to 
authorize the transfer of proceeds from the handling and 
disposal of family housing units into the Department of Defense 
Family Housing Improvement Fund, which is used to support 
military family housing privatization activities.
      The Senate amendment contained no similar provision.
      The House recedes.
Increase in thresholds for unspecified minor military construction 
        projects
      The Senate amendment contained a provision (sec. 2805) 
that would amend section 2805(a)(1) of title 10, United States 
Code, to raise the threshold of the cost of a construction 
project authorized by this section from $1.5 million to $2.5 
million. This provision would also raise the threshold of the 
cost of a construction project intended solely to correct a 
deficiency that is life-threatening, health-threatening, or 
safety-threatening from $3.0 million to $4.0 million.
      The House bill contained no similar provision.
      The Senate recedes.
Repeal of temporary minor military construction program
      The House bill contained a provision (sec. 2809) that 
would repeal section 2810 of the Military Construction 
Authorization Act for Fiscal Year 2006 (division B of Public 
Law 109-163), which provides for temporary authority to expend 
minor construction funds at increased limits for construction 
of child development centers.
      The Senate amendment contained no similar provision.
      The House recedes.
Updating foreign currency fluctuation adjustment for certain military 
        family housing leases in Korea
      The Senate amendment contained a provision (sec. 2809) 
that would amend section 2828 of title 10, United States Code, 
to modify the adjustments made by a Secretary of a military 
department to maximum lease amounts for family housing in Korea 
to account for foreign currency fluctuations.
      The House bill contained no similar provision.
      The Senate recedes.
Naming of research laboratory at Air Force Rome Research Site, Rome, 
        New York, in honor of Sherwood L. Boehlert, a member of the 
        House of Representatives
      The Senate amendment contained a provision (sec. 2813) 
that would designate the new laboratory building at the Air 
Force Rome Research Site, Rome, New York, as the ``Sherwood L. 
Boehlert Engineering Center.''
      The House bill contained no similar provision.
      The Senate recedes.
Naming of administrative building at Joint Systems Manufacturing Center 
        in Lima, Ohio, after Michael G. Oxley, a member of the House of 
        Representatives
      The Senate amendment contained a provision (sec. 2814) 
that would designate the administrative building under 
construction at the Joint Systems Manufacturing Center in Lima, 
Ohio as the ``Michael G. Oxley Administration and Technology 
Center.''
      The House bill contained no similar provision.
      The Senate recedes.
Naming of military family housing facility at Fort Carson, Colorado, in 
        honor of Joel Hefley, a member of the House of Representatives
      The Senate amendment contained a provision (sec. 2815) 
that would require the Secretary of the Army to designate one 
of the military family housing areas or facilities constructed 
for Fort Carson, Colorado, using housing privatization 
authorities provided by subchapter IV of chapter 169 of title 
10, United States Code, in honor of Representative Joel Hefley.
      The House bill contained no similar provision.
      The Senate recedes.
Authority to use excess property as exchange under agreements to limit 
        encroachments on military training, testing, and operations
      The Senate amendment contained a provision (sec. 2824) 
that would authorize the Secretary concerned to use land that 
is determined to be excess to the needs of the Department of 
Defense in an exchange under an agreement with eligible third 
parties under section 2684a of title 10, United States Code, to 
create buffer zones to address the use or development of real 
property in the vicinity of a military installation to prevent 
encroachment or preserve habitat that may relieve environmental 
restrictions on military training, testing, or operations.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that authority to use excess lands as 
part of the contribution to the acquisition costs of real 
property, or an interest in real property, as part of 
agreements under section 2864a is included in section 2811 of 
this report.
Modification of utility system authority and related reporting 
        requirements
      The Senate amendment contained a provision (sec. 2825) 
that would amend section 2688 of title 10, United States Code, 
to modify the authority provided to the Secretary of a military 
department for the conveyance of utility systems.
      The House bill contained no similar provision.
      The Senate recedes.
Naming of Navy and Marine Corps Reserve Center at Rock Island, 
        Illinois, in honor of Lane Evans, a member of the House of 
        Representatives
      The Senate amendment contained a provision (sec. 2830) 
that would designate the Navy and Marine Corps Reserve Center 
at Rock Island, Illinois, in honor of Lane Evans, a member of 
the House of Representatives.
      The House bill contained no similar provision.
      The Senate recedes.
Modification of land acquisition authority, Perquimans County, North 
        Carolina
      The House bill contained a provision (sec. 2842) that 
would amend section 2846 of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public 
Law 107-107), as amended by section 2865 of the Military 
Construction Authorization Act for Fiscal Year 2005 (division B 
of Public Law 108-375), to increase, from 840 acres to 1,540 
acres, the amount of acreage that the Secretary of the Navy is 
authorized to acquire.
      The Senate amendment contained a similar provision (sec. 
2812).
      The conference agreement does not include this provision. 
The conferees note that the provision was included in the 
Emergency Supplemental Appropriations Act for Defense, the 
Global War on Terror, and Hurricane Recovery, 2006 (Public Law 
109-234).
Highway projects, Detroit, Michigan
      The Senate amendment contained a provision (sec. 2852) 
that would amend sections 1702 and 1934 of the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users (Public Law 109-59) to clarify the purpose for 
projects numbered 4333 and 196 authorized for Detroit, 
Michigan.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to include this provision in section 
2864 of this Act.

 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 for fiscal year 
2007, including: the purchase, construction, and acquisition of 
plant and capital equipment; research and development; nuclear 
weapons activities; naval nuclear propulsion; environmental 
cleanup; operating expenses; and other expenses necessary to 
carry out the purposes of the Department of Energy Organization 
Act (Public Law 95-91). This title authorizes appropriations in 
four categories, which are: (1) National Nuclear Security 
Administration (NNSA); (2) defense environmental cleanup; (3) 
other defense activities; and (4) defense nuclear waste 
disposal.
      The budget request included $15.8 billion for atomic 
energy defense activities, a 2.5 percent decrease below the 
fiscal year 2006 appropriated level. Of the total amount 
requested:
      (1) $9.3 billion is for NNSA, of which
            (a) $6.4 billion is for weapons activities,
            (b) $1.7 billion is for defense nuclear 
        nonproliferation activities,
            (c) $795.1 million is for naval reactors, and
            (d) $386.6 million is for the Office of the 
        Administrator;
      (2) $5.4 billion is for defense environmental cleanup;
      (3) $717.8 million is for other defense activities; and
      (4) $388.1 million is for defense nuclear waste disposal.
      The budget request also included $6.1 million within 
energy supply.
      The conferees agree to authorize $15.8 billion for atomic 
energy defense activities, the amount of the budget request.
      Of this amount, the conferees agree to authorize:
      (1) $9.3 billion for NNSA, of which
            (a) $6.4 billion would be for weapons activities, 
        an increase of $9.8 million above the budget request;
            (b) $1.7 billion would be for defense nuclear 
        nonproliferation, a decrease of $24.8 million below the 
        budget request;
            (c) $795.1 million would be for naval reactors, the 
        amount of the budget request; and
            (d) $386.6 million would be for the Office of the 
        Administrator, the amount of the budget request;
      (2) $5.4 billion would be for defense environmental 
cleanup activities, an increase of $45.0 million above the 
budget request;
      (3) $717.8 million would be for other defense activities, 
the amount of the budget request; and
      (4) $358.1 million would be for defense nuclear waste 
disposal, a decrease of $30.0 million below the budget request.
      The conferees agree to authorize $6.1 million for energy 
supply, the amount of the budget request.
      The following table summarizes the budget request and the 
authorizations:


                     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 $9.3 billion for the National Nuclear Security 
Administration (NNSA) of the Department of Energy, including 
funds for weapons activities, defense nuclear nonproliferation 
programs, naval reactor programs, and the Office of the 
Administrator, a decrease of $50.0 million below the budget 
request. The Senate amendment contained a similar provision 
(sec. 3101). The provision would authorize $9.3 billion, an 
increase of $17.5 million above the budget request.
      The conferees agree to authorize $9.3 billion for NNSA, a 
decrease of $15.0 million below the budget request.
      The budget request included $6.4 billion for weapons 
activities. The House bill would authorize $6.5 billion, an 
increase of $60.0 million above the budget request. The Senate 
amendment would authorize $6.5 billion, an increase of $47.5 
million above the budget request. The conferees agree to 
authorize $6.4 billion, an increase of $9.8 million above the 
budget request.
      Within weapons activities, the conferees agree to 
authorize $22.0 million for the W80 life extension program, a 
decrease of $80.0 million below the budget request, to be used 
for the orderly closeout of program activities due to the 
postponement of the W80 life extension by the Nuclear Weapons 
Council. The conferees agree to authorize an additional $20.0 
million for the reliable replacement warhead to support a 
second warhead design competition. Within inertial confinement 
fusion ignition and high yield campaign, the conferees agree to 
authorize an increase of $10.0 million to support enhanced 
target production and characterization capabilities and for 
tests on the Omega and Z facilities. Within readiness in 
technical base and facilities, the conferees agree to authorize 
an additional $17.0 million to address deferred maintenance and 
repair at the Pantex Plant, an additional $15.0 million to 
address deferred maintenance and repair at the Y-12 National 
Security Complex, and an additional $10.0 million for the High 
Enriched Uranium Materials Facility [project 01-D-124] at the 
Y-12 National Security Complex. Within safeguards and security, 
the conferees agree to authorize an additional $11.8 million 
for safeguards and security requirements at the Pantex Plant 
and an additional $14.0 million for safeguards and security 
requirements at the Y-12 National Security Complex.
      The budget request included $1.7 billion for defense 
nuclear nonproliferation. The conferees agree to authorize $1.7 
billion, a decrease of $24.8 million below the budget request. 
The conferees agree to provide an additional $15.0 million in 
funding for the Second Line of Defense Megaports program to 
accelerate cooperation with international partners to improve 
their capability to detect and interdict nuclear and 
radiological materials that could be passing through foreign 
ports. The conferees agree to authorize an additional $20.0 
million in funding for the Global Threat Reduction Initiative 
(GTRI) program. Of that amount, $5.0 million is authorized for 
international radiological threat reduction and $15.0 million 
is authorized to be used exclusively for other GTRI activities 
conducted outside the United States. The conferees agree to 
provide no funding for the Russian Surplus Fissile Materials 
Disposition program, a decrease of $34.7 million. The conferees 
agree to provide $264.4 million for construction of the U.S. 
Mixed Oxide Fuel Fabrication Facility, a decrease of $25.1 
million below the budget request. The views of the conferees 
regarding the Fissile Materials Disposition program are 
discussed elsewhere in this conference report.
      The budget request included $795.1 million for naval 
reactors programs and $386.6 million for the Office of the NNSA 
Administrator. The conferees agree to authorize these programs 
at the requested levels.
Defense environmental cleanup (sec. 3102)
      The House bill contained a provision (sec. 3102) that 
would authorize $5.4 billion for the Department of Energy for 
defense environmental cleanup for fiscal year 2007, an increase 
of $50.0 million above the budget request.
      The Senate amendment contained a similar provision (sec. 
3102). The provision would authorize $5.4 billion for defense 
environmental cleanup, an increase of $40.0 million above the 
budget request.
      The conferees agree to include a provision that would 
authorize $5.4 billion for defense environmental cleanup, an 
increase of $45.0 million above the budget request. Within this 
increase, the conferees agree to provide an additional $35.0 
million in funding for radioactive liquid tank waste 
stabilization and disposition at the Savannah River Site in 
South Carolina and to provide an additional $10.0 million in 
funding for a research and development program to support tank 
waste cleanup technologies consistent with recommendations made 
in the National Research Council report entitled ``Tank Waste 
Retrieval, Processing, and On-Site Disposal at Three Department 
of Energy Sites, April 2006.''
Other defense activities (sec. 3103)
      The House bill contained a provision (sec. 3103) that 
would authorize $717.8 million for the Department of Energy for 
other defense activities for fiscal year 2007, the amount of 
the budget request.
      The Senate amendment contained a similar provision (sec. 
3103). The provision would authorize $624.5 million for the 
Department for other defense activities, a decrease of $93.3 
million below the budget request.
      The conferees agree to include a provision that would 
authorize $717.8 million, the amount of the budget request.
Defense nuclear waste disposal (sec. 3104)
      The House bill contained a provision (sec. 3104) that 
would authorize $388.1 million for defense nuclear waste 
disposal, the amount of the budget request.
      The Senate amendment contained a similar provision (sec. 
3104). The provision would authorize $333.1 million for defense 
nuclear waste disposal, a decrease of $55.0 million below the 
budget request.
      The conferees agree to include a provision that would 
authorize $358.1 million, a decrease of $30.0 million below the 
budget request. The conferees note that the Department of 
Energy has issued a revised schedule for the development of a 
geologic repository, delaying the completion of the license 
application for the repository until June of 2008.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Plan for transformation of National Nuclear Security Administration 
        nuclear weapons complex (sec. 3111)
      The House bill contained a provision (sec. 3111) that 
would direct the Secretary of Energy and the Secretary of 
Defense to develop a plan to transform the nuclear weapons 
complex so as to achieve a responsive infrastructure by the 
year 2030 and to transmit a report to the congressional defense 
committees, not later than February 1, 2007, on the 
transformation plan.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary of Energy to develop the transformation plan in 
consultation with the Secretary of Defense and the Nuclear 
Weapons Council. The amendment would also modify the objectives 
of the plan to acknowledge the continued utilization of 
Category I and II special nuclear material, beyond the year 
2012, at the national security laboratory at which a pit 
production capability is located. The amendment would make 
further technical changes.
Extension of Facilities and Infrastructure Recapitalization Program 
        (sec. 3112)
      The House bill contained a provision (sec. 3112) that 
would extend the Facilities and Infrastructure Recapitalization 
Program for 2 years, until September 30, 2013.
      The Senate amendment contained a similar provision (sec. 
3114).
      The Senate recedes.
Utilization of contributions to Global Threat Reduction Initiative 
        (sec. 3113)
      The House bill contained a provision (sec. 3113) that 
would provide the Secretary of Energy authority to accept 
international contributions to the Global Threat Reduction 
Initiative program.
      The Senate amendment contained a similar provision (sec. 
3112).
      The House recedes with a technical amendment.
Utilization of contributions to Second Line of Defense program (sec. 
        3114)
      The House bill contained a provision (sec. 3114) that 
would provide the Secretary of Energy authority to accept 
international contributions to the Second Line of Defense 
program.
      The Senate amendment contained a similar provision (sec. 
3113).
      The House recedes with a technical amendment.
Two-year extension of authority for appointment of certain scientific, 
        engineering, and technical personnel (sec. 3115)
      The House bill contained a provision (sec. 3115) that 
would amend section 4601(c)(1) of the Atomic Energy Defense Act 
(50 U.S.C. 2701(c)(1)) to extend excepted service authority for 
an additional two years, until September 30, 2008.
      The Senate amendment contained an identical provision 
(sec. 3115).
      The conference agreement includes this provision.
National Academy of Sciences study of quantification of margins and 
        uncertainty methodology for assessing and certifying the safety 
        and reliability of the nuclear stockpile (sec. 3116)
      The House bill contained a provision (sec. 3116) that 
would direct the Secretary of Energy to enter into an 
arrangement with the National Research Council of the National 
Academy of Sciences to carry out a study of the quantification 
of margins and uncertainty methodology used by the national 
security laboratories for assessing and certifying the safety 
and reliability of the nuclear stockpile. The provision would 
further direct the National Research Council to submit a report 
on the study to the Secretary of Energy and to the Committees 
on Armed Services of the Senate and the House of 
Representatives not later than 1 year after the date on which 
the Council enters into the arrangement for such study.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would narrow 
the matters to be included in the study, and would make 
technical changes to the funding of the study.
      The conferees acknowledge the aggressive schedule 
directed for completion of the study and the report thereon. 
The conferees are aware of ongoing work on complementary topics 
being conducted by the Nuclear Weapons Complex Assessment 
Committee of the American Association for the Advancement of 
Science. The conferees encourage the National Research Council 
to seek opportunities to support mutual study objectives and to 
coordinate the use of any study contributors and subject matter 
experts between these studies, as appropriate.
Consolidation of counterintelligence programs of Department of Energy 
        and National Nuclear Security Administration (sec. 3117)
      The House bill contained a provision (sec. 3117) that 
would consolidate the counterintelligence programs of the 
Department of Energy and the National Nuclear Security 
Administration (NNSA) under the Department of Energy. The 
provision would also establish the Intelligence Executive 
Committee within the Department of Energy consisting of the 
Deputy Secretary of Energy, who would chair the committee, and 
each Under Secretary of Energy. The provision would require the 
Secretary of Energy to use the committee to assist in 
developing and promulgating the counterintelligence and 
intelligence policies, requirements, and priorities of the 
entire Department.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
establish, within the staff of the Administrator of the NNSA, a 
position of NNSA Intelligence and Counterintelligence Liaison 
that would be responsible for liaison between the NNSA and the 
Department's Office of Intelligence and Counterintelligence. 
The amendment would also sunset on September 30, 2010, the 
transfer of functions, personnel, funds, assets, and other 
resources transferred to the Secretary of Energy, returning 
them to the control of the Administrator of the NNSA.
      The conferees reluctantly provide this authority to 
consolidate the counterintelligence programs of the Department 
of Energy and NNSA, despite the ongoing skepticism of many in 
Congress over the Department's ability to implement a strong 
security program for the Department and its laboratories. The 
conferees note that with the recent Departmental initiative to 
combine the Offices of Intelligence and Counterintelligence and 
with the authority provided in this provision, the intelligence 
and counterintelligence functions will be organized as they 
were when the Department experienced significant 
counterintelligence problems.
      The conferees believe that the Department could have 
addressed many of the perceived issues associated with having 
separate counterintelligence offices for the Department and 
NNSA by demonstrating greater management resourcefulness. The 
conferees are unpersuaded that the Department fully and 
faithfully implemented the counterintelligence program 
structure called for in the National Nuclear Security 
Administration Act (Title 32 of the National Defense 
Authorization Act for Fiscal Year 2000, Public Law 106-65, as 
amended).
      Nevertheless, the conferees note that the Department has 
continued--under the leadership of two different Secretaries of 
Energy and two different Deputy Secretaries--to identify the 
counterintelligence structure of the NNSA Act as an impediment 
to the smooth functioning of security operations within the 
Department of Energy complex. The conferees have agreed, 
therefore, to include a provision that would provide temporary 
authority for the disestablishment of the Office of Defense 
Nuclear Counterintelligence within NNSA and the transfer of 
NNSA counterintelligence personnel to the Department's Office 
of Counterintelligence.
      Because NNSA and its programs contain the assets of 
greatest national security concern, the conferees would 
incorporate three important safeguards into the new 
organizational structure. First, the provision would require 
the establishment of an Intelligence Executive Committee within 
the Department of Energy consisting of the Deputy Secretary of 
Energy, who would chair the Committee, and each Under Secretary 
of Energy. One of the Under Secretaries is also the 
Administrator of the NNSA. Second, conferees would create, 
within the staff of the Administrator of the NNSA, a position 
of NNSA Intelligence and Counterintelligence Liaison that would 
be responsible for liaison between NNSA and the Department's 
Office of Intelligence and Counterintelligence. Third, the 
conferees would include a section to sunset the transfer 
effective September 30, 2010. This sunset would allow future 
Congresses to examine the effectiveness of the new, 
consolidated office and to take appropriate action, either to 
continue, modify, or reverse this organizational structure, 
based on that examination. Taken together, these measures are 
intended to ensure a continued strong voice for the NNSA in 
counterintelligence policy and requirements within the 
Department.
      The conferees also wish to emphasize to the Department of 
Energy the existing requirement, already in law, regarding the 
selection and appointment of leadership for the new 
organization. The conferees remind the Department that section 
1014 of the Intelligence Reform and Terrorism Prevention Act of 
2004 (Public Law 108-458) requires the Secretary of Energy to 
obtain the concurrence of the Director of National Intelligence 
before appointing an individual to fill the positions of 
Director of Intelligence and Director of Counterintelligence 
for the Department of Energy. Section 1014 further states that 
if the Director of National Intelligence does not concur in the 
recommendation, the Secretary of Energy may not appoint the 
individual to the position. The conferees support this 
requirement. The conferees further note that the recently 
appointed Director of Counterintelligence for the Department is 
detailed from the Federal Bureau of Investigation (FBI) for 2 
years. The conferees believe that an individual having 
experience in counterintelligence matters as either a current 
or former agent of the FBI continues to be the most appropriate 
choice to lead the Department's counterintelligence efforts.
Notice-and-wait requirement applicable to certain third-party financing 
        arrangements (sec. 3118)
      The Senate amendment contained a provision (sec. 3111) 
that would require the Secretary of Energy to notify the 
congressional defense committees 30 days prior to entering into 
certain alternative financing arrangements.
      The House bill contained no similar provision.
      The House recedes.
Extension of deadline for transfer of lands to Los Alamos County, New 
        Mexico, and of lands in trust for the Pueblo of San Ildefonso 
        (sec. 3119)
      The Senate amendment contained a provision (sec. 3116) 
that would amend section 632 of the Departments of Commerce, 
Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 1998 (Public Law 105-119) to extend, by 
five years, the deadline for completing certain land transfers 
by the Secretary of Energy to Los Alamos County, New Mexico and 
to the Secretary of the Interior of lands to be held in trust 
for the Pueblo of San Ildefonso.
      The House bill contained no similar provision.
      The House recedes.
Limitations on availability of funds for Waste Treatment and 
        Immobilization Plant (sec. 3120)
      The Senate amendment contained a provision (sec. 3117) 
that would prohibit the Secretary of Energy from obligating or 
expending more than a percentage of the amount authorized to be 
appropriated for the Waste Treatment and Immobilization Plant 
prior to performing certain actions.
      The House bill contained no similar provision.
      The House recedes with an amendment that would increase 
the amount available to be obligated or expended from 30 
percent to 90 percent of the funds appropriated or otherwise 
available prior to the Secretary certifying to the 
congressional defense committees that the earned value 
management system for the project has been recommended for 
acceptance by the Defense Contract Management Agency. The 
amendment would also alter the limitation related to the 
establishment of final seismic criteria for the project by 
prohibiting the obligation or expenditure of any of the amount 
appropriated or otherwise available for the project for 
construction or for procurement of critical equipment affected 
by the seismic criteria prior to the establishment of final 
seismic and ground motion criteria for the project. The 
conferees encourage the Department of Energy to sequence the 
obligation and expenditure of engineering funds on the project 
in a manner that minimizes the risk of incurring additional 
costs should the interim seismic criteria ultimately be found 
to be inadequate.
Report on Russian Surplus Fissile Materials Disposition Program (sec. 
        3121)
      The Senate amendment contained a provision (sec. 3118) 
that would prohibit the obligation of fiscal year 2007 funds to 
implement the Russian Surplus Fissile Materials Disposition 
Program, other than continuation of the research and 
development associated with the Gas Turbine-Modular Helium 
Reactor (GT-MHR), until 30 days after the Secretary of Energy 
provides to the congressional defense committees written 
recommendations regarding whether and in what manner the 
program should proceed. The provision would require the 
recommendations to include: (1) a description of the 
disposition method Russia has agreed to use; (2) a description 
of the assistance the United States plans to provide under the 
program; (3) an estimate of the total cost and schedule of the 
U.S. assistance to the program; and (4) an explanation of how 
parallelism is to be defined for purposes of the program and 
whether such parallelism can be achieved if the U.S. mixed-
oxide (MOX) approach to plutonium disposition continues on the 
current planned schedule without further delays.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Energy to provide a report, no later than 
March 1, 2007, to the congressional defense committees. The 
report shall include: (1) a description of the disposition 
method Russia has agreed to use under the program; (2) a 
description of the assistance the United States plans to 
provide under the program; (3) an estimate of the total cost 
and schedule of such assistance; and (4) an explanation of how 
parallelism is to be defined for purposes of the program, 
including projected goals for the disposition of Russian 
weapons-grade plutonium under the 2000 Plutonium Disposition 
and Management Agreement, and whether such parallelism can be 
achieved if the U.S. MOX program continues on the current 
planned schedule without further delays.
      The conferees note their support for the goals of the 
September 2000 Plutonium Management and Disposition Agreement 
to dispose of 34 metric tons of surplus weapons-grade plutonium 
in both the United States and Russia on roughly parallel paths. 
For the past 2 years, the Russian program has been delayed 
pending completion of a liability agreement between the United 
States and the Russian Federation, and that in turn caused a 
delay in the U.S. program. The National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163) cut $250.0 
million in funding for the U.S. MOX program due to the impasse 
over liability. Although the liability agreement has now been 
signed, Russian officials have stated that the agreement will 
require ratification by the Russian Duma.
      In a new development arising out of U.S.-Russian 
negotiations on the plutonium disposition program in February 
2006, Russia has now indicated that it is not prepared to 
proceed with the program as originally conceived. 
Representatives of the National Nuclear Security Administration 
and the Department of State have indicated that Russia no 
longer wishes to use MOX fuel in VVER-1000 light water reactors 
unless the United States and the international community agree 
to bear the full life cycle cost of this approach, estimated at 
$2.7 billion. Rather, Russia would like to explore a new two-
pillar approach to the plutonium disposition program, 
consisting of limited disposition in an existing BN-600 reactor 
(disposition in such a reactor was part of the originally 
envisioned program), and eventually larger-scale disposition in 
one or more BN-800 fast breeder reactors (FBR). It is unclear 
how much this new approach would cost and how it would be 
funded. The United States has not previously supported the FBR 
design due to proliferation concerns.
      While generally pleased with the progress of DOE programs 
with the Russian Federation to cooperatively reduce the nuclear 
threat, the conferees are troubled by the uncertainty that now 
surrounds the Russian Surplus Materials Disposition Program. 
The conferees note the July 13, 2006, Joint Statement by the 
Secretary of Energy and the Director of the Federal Atomic 
Energy Agency of the Russian Federation reaffirming the joint 
commitment to the 2000 Agreement to dispose of 34 metric tons 
of excess weapons-grade plutonium. Nevertheless, the conferees 
remain concerned about the lack of any plan, implementing 
agreement, or concrete timetable for implementing this renewed 
commitment. Such a plan should include the method of 
disposition, the amount of the Russian contribution to the 
disposition program, and how much and what type of assistance 
the United States and the international community will be asked 
to provide to the program. The conferees believe that these 
questions must be resolved before the United States invests 
further in this important cooperative program. Therefore, the 
conferees recommend no funds for the Russian Surplus Fissile 
Materials Disposition Program, a reduction of $34.7 million. Of 
those funds available from prior fiscal years for the Russian 
Surplus Fissile Materials Disposition Program, no more than 
$20.0 million shall be available for expenditure until 30 days 
after the Secretary of Energy has provided to the congressional 
defense committees the report required by this section. The 
conferees note that there are adequate prior year funds 
available for the Russian Surplus Fissile Materials Disposition 
Program in the event that Russia and the United States agree on 
a path forward and are prepared to resume cooperative work on a 
plutonium disposition program that is consistent with the 2000 
Agreement, and to which Russia and the United States are fully 
committed.
      The conferees expect the GT-MHR technology cooperation 
efforts to proceed without interruption using the prior year 
funds that are unaffected by this funding restriction.
Limitation on availability of funds for construction of MOX Fuel 
        Fabrication Facility (sec. 3122)
      The Senate amendment contained a provision (sec. 3119) 
that would prohibit the obligation of fiscal year 2007 funds 
for construction of the Mixed Oxide (MOX) Fuel Fabrication 
Facility until 30 days after the Secretary of Energy provides 
to the congressional defense committees: (1) an independent 
cost estimate for the U.S. Surplus Fissile Materials 
Disposition program and facilities; and (2) a written 
certification that the Department of Energy intends to use the 
MOX Fuel Fabrication Facility for U.S. plutonium disposition 
regardless of the future direction of the Russian Surplus 
Fissile Materials Disposition program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
the obligation of fiscal year 2007 funds for construction of 
the MOX Fuel Fabrication Facility until 30 days after the 
Secretary of Energy provides to the congressional defense 
committees: (1) an independent cost estimate for the U.S. 
Surplus Fissile Materials Disposition program and facilities; 
(2) a written certification that the Department intends to use 
the MOX Fuel Fabrication Facility for U.S. plutonium 
disposition regardless of the future direction of the Russian 
Surplus Fissile Materials Disposition program; and (3) a 
corrective action plan for issues raised by the Department of 
Energy Inspector General (IG) in the December 2005 report 
titled ``The Status of the Mixed Oxide Fuel Fabrication 
Facility.''
      The conferees support the goals of the September 2000 
Plutonium Management and Disposition Agreement to dispose of 34 
metric tons of surplus weapons-grade plutonium in both the 
United States and Russia on roughly parallel paths, but note 
their ongoing concern regarding the implementation of this 
program. Under the agreement, the United States and Russia each 
agreed to dispose of 34 metric tons of surplus weapons-grade 
plutonium, and both countries planned to dispose of the 
plutonium by fabricating it into MOX fuel for use in existing 
nuclear reactors. It has been both executive branch policy and 
a condition of the Congress that the U.S. and Russian programs 
would proceed on parallel paths. This program was delayed for 
more than 2 years as the United States and Russia negotiated an 
agreement on liability protections for U.S. contractors 
associated with the project. Now Russia has indicated it wishes 
to pursue alternative disposition methods under this program, 
rather than relying on the MOX method that had been planned. 
Uncertainties surrounding the Russian program have led to 
questions regarding the continued relationship of that program 
to the U.S. Surplus Fissile Materials Disposition program, 
given that these two programs are required to proceed on 
roughly parallel paths.
      The conferees are further concerned that the U.S. MOX 
program has experienced significant cost overruns and schedule 
delays, irrespective of the problems with the Russian program. 
A December 2005 audit by the IG concluded that while the 
original 2002 budget estimate for the U.S. MOX facility was 
$1.0 billion, the total cost is now estimated at around $3.5 
billion, and the plant will not begin producing MOX fuel until 
2015, 6 years later than originally planned. The IG audit was 
highly critical of the Department's management of the MOX 
program, asserting that weaknesses in project management and 
limited administration of the program contributed to cost 
growth. More recent information suggests that the cost of the 
U.S. MOX program is expected to rise significantly higher than 
the IG estimated.
      In light of these developments, the conferees believe it 
is necessary to have an independent cost estimate for the 
program; a certification from the Secretary that the Department 
will use the MOX facility for plutonium disposition regardless 
of the future direction of the Russian program; and a 
corrective action plan for issues raised by the IG, before 
fiscal year 2007 funds are obligated for construction of the 
MOX Fuel Fabrication Facility.
      Based on preliminary discussions with the Department, the 
conferees are operating under the assumption that the Savannah 
River Site MOX project is a cost-effective and efficient method 
for the United States to dispose of a significant portion of 
its excess weapons-grade plutonium inventory as part of a 
broader plutonium disposition plan. Accordingly, the conferees 
believe that moving forward expeditiously with construction and 
operation of the U.S. MOX facility will significantly reduce 
the costs and risks associated with managing domestic weapons-
grade plutonium. The conferees direct the Department to provide 
to the congressional defense committees an assessment of 
whether, given the sunk costs to date for the U.S. MOX project 
and an evaluation of other alternatives for plutonium 
disposition, proceeding with the U.S. MOX project is the most 
effective means, from both a cost and technical perspective, 
for managing and disposing of excess U.S. weapons-grade 
plutonium.
      The conferees reaffirm their view that proceeding with 
construction and operation of the U.S. MOX facility is 
important in order to demonstrate the continuing commitment of 
the United States to fulfilling its obligations under both the 
2000 Plutonium Management and Disposition Agreement, and under 
Article VI of the Nuclear Non-Proliferation Treaty.
Education of future nuclear engineers (sec. 3123)
      The Senate amendment contained a provision (sec. 3121) 
that would direct the Secretary of Energy to conduct a study on 
the feasibility and merit of establishing a scholarship or 
fellowship program to educate future nuclear engineers at the 
postsecondary and postgraduate levels and to submit a report on 
the study to the congressional defense committees.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Technical correction related to authorization of appropriations for 
        fiscal year 2006 (sec. 3124)
      The Senate amendment contained a provision (sec. 3120) 
that would strike the amount ``$9,196,456'' and insert 
``$9,196,456,000'' in section 3101(a) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163).
      The House bill contained no similar provision.
      The House recedes.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

                     Legislative Provision Adopted

Authorization (sec. 3201)
      The House bill contained a provision (sec. 3201) that 
would authorize $22.3 million for the Defense Nuclear 
Facilities Safety Board, the amount of the budget request.
      The Senate amendment contained an identical provision 
(sec. 3201).
      The conference agreement includes this provision. The 
conferees note their concern regarding the untimely resolution 
by the Department of Energy of technical issues raised by the 
Board. The conferees believe that the Board and the Department 
would benefit from a more structured process for issue 
resolution that would allow issues to be raised, evaluated, and 
adjudicated at logical points in the design and construction 
process. The conferees urge the Board to evaluate whether more 
frequent use of the Board's formal recommendation process would 
drive both parties towards this more structured process. The 
conferees also encourage the Board to take a constructive role 
in the problem-solving process by quickly evaluating corrective 
actions proposed by the Department and its contractors.
      The conferees are encouraged by efforts between the 
Department and the Board to develop a process to provide for 
more timely identification and resolution of technical 
differences over design standards and other issues at the 
Department's nuclear facilities. Specifically, conferees 
support the pending revision of the Department's Order 413.3 to 
require critical safety determinations be made prior to 
Critical Decision 1 in the Department's project management 
system. The conferees direct the Board and the Department to 
continue these discussions and to report jointly to the 
congressional defense committees on their efforts to improve 
the timeliness of issue resolution, including recommendations, 
if any, for legislation that would strengthen and improve 
technical oversight of the Department's nuclear design and 
operational activities. Until such time as this report is 
submitted, the conferees further direct the Board to provide to 
the congressional defense committees quarterly reports to 
identify and report the status of significant unresolved 
issues.
      The conferees expect the Board to exercise its existing 
statutory authority at all Department of Energy defense nuclear 
facilities. This includes the Waste Treatment and 
Immobilization Plant [Project 01-D-416] at the Department's 
Hanford site in the State of Washington.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

                     Legislative Provision Adopted

Authorized uses of National Defense Stockpile funds (sec. 3301)
      The House bill contained a provision (sec. 3301) that 
would authorize $52.1 million from the National Defense 
Stockpile Transaction Fund for the operation and maintenance of 
the National Defense Stockpile for fiscal year 2007. The 
provision would also permit the use of additional funds for 
extraordinary or emergency conditions 45 days after Congress 
receives notification.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Revisions to required receipt objectives for previously authorized 
        disposals from National Defense Stockpile (sec. 3302)
      The House bill contained a provision (sec. 3302) that 
would authorize increased sales of certain materials in the 
National Defense Stockpile through the end of fiscal year 2013.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would reduce 
the amount of the increased sales.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                     Legislative Provision Adopted

Authorization of appropriations (sec. 3401)
      The House bill contained a provision (sec. 3401) that 
would authorize $18.8 million for the operation and maintenance 
of the Naval Petroleum and Oil Shale Reserves.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provision Not Adopted

      The Senate amendment contained a provision (sec. 3401) 
that would require the `Shallow Oil Zone Provisional 
Recommendation of Equity Participation' of the independent 
petroleum engineer for Naval Petroleum Reserve Numbered 1 to 
become the final recommendation, unless the Department of 
Energy and Chevron U.S.A. Inc. agree that the independent 
petroleum engineer shall not be liable for any cost or expense 
incurred as a result of good faith services.
      The House bill contained no similar provision.
      The Senate recedes.

                  TITLE XXXV--MARITIME ADMINISTRATION

                     Legislative Provisions Adopted

Authorization of appropriations for fiscal year 2007 (sec. 3501)
      The House bill contained a provision (sec. 3501) that 
would authorize a total of $164.4 million for fiscal year 2007, 
an increase of $19.5 million above the budget request. Of the 
amount authorized, $25.7 million would be for the disposal of 
obsolete vessels. Within the funds included for operation and 
training programs, the provision would authorize $19.5 million 
to provide for the reimbursement of non-emergency repairs under 
the provisions of section 3517 of the Maritime Security Act of 
2003 (46 U.S.C. 53101 note), as amended by section 3503 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would increase 
the amount authorized by an additional $15.6 million. Of the 
additional amount authorized, $15.0 million would be for 
assistance to small shipyards under section 3506 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109-163), and $0.6 million for fuel payments for the six 
State maritime academies to operate their training ships.
      The amendment would further clarify the amount authorized 
for administrative expenses related to the implementation of 
the loan guarantee program under title XI of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) and the non-
emergency repair reimbursement, and small shipyard assistance 
programs described above.
Amendments relating to the Maritime Security Fleet program (sec. 3502)
      The House bill contained a provision (sec. 3502) that 
would amend section 53105(e) of the Maritime Security Act of 
2003 (46 U.S.C. 53101 note) to prohibit the transfer of an 
operating agreement to a person that is not a citizen of the 
United States, as that term is used in section 2 of the 
Shipping Act, 1916 (46 U.S.C. 802), unless the Secretary of 
Defense determines that there is no citizen under that section 
who is interested in obtaining the operating agreement for a 
vessel that is otherwise eligible to be included in the 
Maritime Security Fleet program.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that in order for a vessel to be considered eligible for an 
operating agreement to be transferred, the vessel must meet the 
specific Department of Defense requirements for that operating 
agreement. The amendment would also amend section 53103(c)(4) 
of title 46, United States Code, to provide an alternative 
approach for operators of the Maritime Security Fleet program 
product tankers to meet U.S.-built replacement vessel 
requirements. The alternative approach would include the 
construction and operation of equivalent domestic trade tank 
vessels. The amendment would further amend section 53106 of 
title 46, United States Code, to establish priority for 
allocation of payments to vessels, in the event that the 
amounts available for payments under operating agreements are 
not sufficient to pay the full amount authorized under each 
agreement.
Applicability to certain Maritime Administration vessels of limitations 
        on overhaul, repair, and maintenance of vessels in foreign 
        shipyards (sec. 3503)
      The House bill contained a provision (sec. 3503) that 
would require that certain U.S. Maritime Administration vessels 
activated in support of Department of Defense missions be 
subject to section 7310 of title 10, United States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Vessel transfer authority (sec. 3504)
      The House bill contained a provision (sec. 3504) that 
would authorize the Secretary of Transportation to transfer any 
vessels that are in the National Defense Reserve Fleet to 
another Federal agency.
      The Senate amendment contained no similar provision.
      The Senate recedes.
United States Merchant Marine Academy graduates: service requirements 
        (sec. 3505)
      The House bill contained a provision (sec. 3505) that 
would exempt graduates of the United States Merchant Marine 
Academy, who serve on active duty in the Armed Forces for the 5 
years following graduation, from certain commitment agreement 
requirements which were entered into upon admission.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
exemption of graduates of the United States Merchant Marine 
Academy, who serve on active duty in the Public Health Service 
for the 5 years following graduation, from the agreement 
requirements specified in this provision.
United States Merchant Marine Academy graduates: service obligation 
        performance reporting requirement (sec. 3506)
      The House bill contained a provision (sec. 3506) that 
would allow the Department of Defense, the United States Coast 
Guard, and the National Oceanic and Atmospheric Administration 
to verify to the Maritime Administration that academy graduates 
have in fact remained on active duty or continued in a ready 
reserve status for the amount of their obligation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would also 
allow the Public Health Service to verify to the Maritime 
Administration that academy graduates have in fact remained on 
active duty or continued in a ready reserve status for the 
amount of their obligation.
Temporary authority to transfer obsolete combatant vessels to Navy for 
        disposal (sec. 3507)
      The House bill contained a provision (sec. 3507) that 
would require the Secretary of Transportation to transfer to 
the Secretary of the Navy for disposal by scrapping, during 
fiscal year 2007, no fewer than six combatant vessels of the 
nonretention fleet of the Maritime Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would reduce 
the number of combatant vessels subject to transfer by the 
Secretary of Transportation to the Secretary of the Navy, 
during fiscal year 2007, to no fewer than three.
Qualifying Reserve duty for receipt of student incentive payments (sec. 
        3508)
      The conferees agree to include a provision that would 
amend title 13 of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1295c(g)(2)) to include service in the United States Coast 
Guard Reserve as fulfillment of enlisted reserve requirements 
for receipt of student incentive payments.
Large passenger ship crew requirements (sec. 3509)
      The conferees agree to include a provision that would 
amend section 8103 of title 46, United States Code, to 
establish crew requirements for large passenger vessels. 
Specifically, the provision would expand the pool of non-
citizens that can be employed on U.S.-flag large passenger 
vessels to include certain non-resident alien visa holders. The 
provision would also establish rules, restrictions, and 
background check requirements for non-resident alien employees, 
which have been deemed necessary by the Department of Homeland 
Security to maintain the security and safety of passenger 
vessels.
      The conferees direct the Commandant of the Coast Guard to 
closely monitor implementation of affected procedures for 
employment of non-citizens. The Commandant shall notify 
Congress of any measures, beyond changes to Coast Guard 
regulations, that may be required to maintain the security and 
safety of the subject passenger vessels consistent with 
standards for U.S.-flagged vessels.
      The conferees agree that the relief to employment 
requirements of this provision warrant documentation within the 
security plan for each large passenger vessel employing non-
resident aliens. The Secretary of Homeland Security shall 
ensure that vessel security plans prohibit non-resident alien 
seamen from working in:
      (1) any position with the authority to receive stores or 
provisions;
      (2) any position allowing unescorted access to restricted 
spaces on the vessel;
      (3) any position with security-related responsibilities; 
and
      (4) any position with any operationally critical 
shipboard duties.
Miscellaneous Maritime Administration provisions (sec. 3510)
      The conferees agree to include a provision that would 
make technical corrections to (1) section 1208(a) of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1288(a)), (2) section 
8 of the Merchant Marine Decorations and Medals Act (46 U.S.C. 
App. 2007), and (3) section 3509 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163). 
The provision would also authorize funding for an intermodal or 
marine facility comprising a component of the Hawaii Port 
Infrastructure Expansion Program.

                   Legislative Provision Not Adopted

Temporary requirement to maintain Ready Reserve Force
      The House bill contained a provision (sec. 3508) that 
would require the Secretary of Defense, in consultation with 
the Secretary of Transportation, to submit to Congress by March 
1, 2007, a report describing a 5-year plan for maintaining the 
capability of the Ready Reserve Force of the National Defense 
Reserve Fleet necessary to support Department of Defense 
wartime mission and support to civil authorities. The provision 
would also require the Secretary of Transportation to maintain 
58 vessels in the Ready Reserve Force of the National Defense 
Reserve Fleet until 45 days after the date the report is 
required.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees request that the U.S. Transportation 
Command advise the congressional defense committees prior to 
further reductions to the Ready Reserve Force and include plans 
for providing capacity to meet related readiness requirements.

                                EARMARKS

      Pursuant to House Resolution 1000, entitled ``Providing 
for earmarking reform in the House of Representatives,'' 
adopted on September 14, 2006, the committee finds the 
following earmarks contained in this conference report:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Amount ($ in
                Member                     Program/Project Title           Account/Line No.          millions)
----------------------------------------------------------------------------------------------------------------
Hunter, Duncan (CA) and Bartlett,       Low cost domestic titanium   RDA 183 78045A.............            $5.0
 Roscoe (MD).                            reduction to powder
                                         initiative.
Kline, John (MN)......................  Traumatic brain injury       Defense Health Program O&M.            12.0
                                         treatment and
                                         rehabilitation.
Warner, John (VA).....................  East Coast Asymmetric        RDDW 54 63828D8Z...........             4.0
                                         Warfare Initiative.
Kingston, Jack (GA) and...............  Construct Software Support   Air Force Construction and              7.0
Marshall, Jim (GA)....................   Facility, Phase 2, Robins    Land Acquisition Projects.
                                         AFB, Georgia.
Chafee, Lincoln (RI) and Reed, Jack     Replace Vehicle Bridge,      Navy Construction and Land             3.41
 (RI).                                   Increment 2, Naval Station   Acquisition Projects.
                                         Newport, Rhode Island.
----------------------------------------------------------------------------------------------------------------

                From the Committee on Armed Services, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Duncan Hunter,
                                   C. Weldon,
                                   Joel Hefley,
                                   J. Saxton,
                                   John M. McHugh,
                                   Terry Everett,
                                   R. Bartlett,
                                   Mac Thornberry,
                                   John N. Hostettler,
                                   Jim Ryun,
                                   Jim Gibbons,
                                   Robin Hayes,
                                   Ken Calvert,
                                   Rob Simmons,
                                   Thelma Drake,
                                   Geoff Davis,
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Gene Taylor,
                                   Neil Abercrombie,
                                   Silvestre Reyes,
                                   Vic Snyder,
                                   Adam Smith,
                                   Loretta Sanchez,
                                   Ellen Tauscher,
                                   R.A. Brady,
                                   Robert E. Andrews,
                From the Permanent Select Committee on 
                Intelligence, for consideration of matters 
                within the jurisdiction of that committee under 
                clause 11 of rule X:
                                   Pete Hoekstra,
                                   Ray LaHood,
                                   Jane Harman,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 571 and 
                572 of the House bill, and secs. 571, 572, 
                1081, and 1104 of the Senate amendment, and 
                modifications committed to conference:
                                   Howard P. McKeon,
                                   John Kline,
                From the Committee on Energy and Commerce, for 
                consideration of secs. 314, 601, 602, 710, 
                3115, 3117, and 3201 of the House bill, and 
                secs. 332-335, 352, 601, 722, 2842, 3115, and 
                3201 of the Senate amendment, and modification 
                committed to conference:
                                   Joe Barton,
                                   Paul Gillmor,
                From the Committee on Government Reform, for 
                consideration of secs. 343, 721, 811, 823, 824, 
                1103, 1104, and 3115 of the House bill, and 
                secs. 371, 619, 806, 823, 922, 1007, 1043, 
                1054, 1088, 1089, 1101, and 3115 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Tom Davis,
                                   C. Shays,
                From the Committee on Homeland Security, for 
                consideration of section 1026 of the House 
                bill, and section 1044 of the Senate amendment, 
                and modifications committed to conference:
                                   Peter T. King,
                                   D. Reichert,
                                   Bennie G. Thompson,
                From the Committee on International Relations, 
                for consideration of secs. 1021-1023, 1201-
                1204, 1206, title XIII, secs. 3113 and 3114 of 
                the House bill, and secs. 1014, 1021-1023, 
                1054, 1092, 1201-1208, 1210, 1214, title XIII, 
                secs. 3112 and 3113 of the Senate amendment, 
                and modifications committed to conference:
                                   Henry Hyde,
                                   James Leach,
                                   Tom Lantos,
                From the Committee on Resources, for 
                consideration of secs. 601, 602, and 1036 of 
                the House bill, and section 601 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Richard Pombo,
                                   Greg Walden,
                From the Committee on Science, for 
                consideration of secs. 312 and 911 of the House 
                bill, and secs. 333, 874, and 1082 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Sherwood Boehlert,
                                   Mike Sodrel,
                From the Committee on Small Business, for 
                consideration of secs. 874 and 1093 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Donald Manzullo,
                                   Sue W. Kelly,
                From the Committee on Transportation and 
                Infrastructure, for consideration of secs. 312, 
                551, 601, 602, and 2845 of the House bill and 
                secs. 333, 584, 601, 1042, 1095, 2842, 2851-
                2853, and 2855 of the Senate amendment, and 
                modifications committed to conference:
                                   Don Young,
                                   Frank LoBiondo,
                                   Jim Oberstar
                                   (Except sections 1095, 2851, 2852, 
                                       2853 of the Senate amendment),
                From the Committee on Veterans' Affairs, for 
                consideration of secs. 666, 682, 683, 687, 721, 
                and 923 of the Senate amendment, and 
                modifications committed to conference:
                                   Steve Buyer,
                                   John Boozman,
                                   Stephanie Herseth,
                                 Managers on the Part of the House.

                                   John W. Warner,
                                   John McCain,
                                   James M. Inhofe,
                                   Pat Roberts,
                                   Jeff Sessions,
                                   Susan M. Collins,
                                   John Ensign,
                                   Jim Talent,
                                   Joe Lieberman,
                                   Jack Reed,
                                   Daniel K. Akaka,
                                   Bill Nelson,
                                   E. Benjamin Nelson,
                                   Mark Dayton,
                                   Evan Bayh,
                                   H.R. Clinton,
                                   Saxby Chambliss,
                                   Lindsey Graham,
                                   John Cornyn
                                   John Thune,
                                   Carl Levin,
                                   Ted Kennedy,
                                   Robert C. Byrd,
                                Managers on the Part of the Senate.

                                  
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