[DOCID: f:hr772.107]
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107th Congress
2d Session HOUSE OF REPRESENTATIVES Report
107-772
_______________________________________________________________________

NATIONAL DEFENSE AUTHORIZATION

ACT FOR FISCAL YEAR 2003

__________

CONFERENCE REPORT

to accompany

H.R. 4546

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

November 12, 2002.--Ordered to be printed

___________

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

C O N T E N T S

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

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

BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

_______

November 12, 2002.--Ordered to be printed

_______

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

CONFERENCE REPORT

[To accompany H.R. 4546]

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

SECTION 1. SHORT TITLE; FINDINGS.

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

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

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

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

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

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

Subtitle B--Army Programs

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

Subtitle C--Navy Programs

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

Subtitle D--Air Force Programs

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

Subtitle E--Other Programs

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

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

Subtitle A--Authorization of Appropriations

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

Subtitle B--Program Requirements, Restrictions, and Limitations

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

Subtitle C--Ballistic Missile Defense

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

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

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

Subtitle E--Other Matters

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

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

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

Subtitle B--Environmental Provisions

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

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

Subtitle D--Workplace and Depot Issues

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

Subtitle E--Defense Dependents Education

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

Subtitle F--Information Technology

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

Subtitle G--Other Matters

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

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

Subtitle B--Reserve Forces

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

Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

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

Subtitle B--Reserve Component Management

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

Subtitle C--Reserve Component Officer Personnel Policy

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

Subtitle D--Enlistment, Education, and Training Programs

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

Subtitle E--Decorations, Awards, and Commendations

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

Subtitle F--Administrative Matters

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

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

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

Subtitle H--Benefits

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

Subtitle I--Reports

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

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

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

Subtitle B--Bonuses and Special and Incentive Pays

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

Subtitle C--Travel and Transportation Allowances

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

Subtitle D--Retired Pay and Survivor Benefits

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

Subtitle E--Montgomery GI Bill

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

Subtitle F--Other Matters

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

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Program Improvements

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

Subtitle B--Reports

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

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

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

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

Subtitle A--Acquisition Policy and Management

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

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

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

Subtitle C--Acquisition-Related Reports and Other Matters

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

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

Subtitle B--Space Activities

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

Subtitle C--Reports

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

Subtitle D--Other Matters

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

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

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

Subtitle B--Naval Vessels and Shipyards

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

Subtitle C--Strategic Matters

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

Subtitle D--Reports

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

Subtitle E--Extension of Expiring Authorities

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

Subtitle F--Other Matters

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

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

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

TITLE XIV--HOMELAND SECURITY

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

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

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

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

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

TITLE XXII--NAVY

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

TITLE XXIII--AIR FORCE

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

TITLE XXIV--DEFENSE AGENCIES

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

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

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

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

TITLE XXVIII--GENERAL PROVISIONS

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

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

Subtitle B--Real Property and Facilities Administration

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

Subtitle C--Land Conveyances

Part I--Army Conveyances

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

Part II--Navy Conveyances

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

Part III--Air Force Conveyances

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

Subtitle D--Other Matters

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

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

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

Subtitle B--Program Authorizations, Restrictions, and Limitations

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

Subtitle C--Proliferation Matters

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

Subtitle D--Other Matters

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

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

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

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

TITLE XXXV--MARITIME ADMINISTRATION

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

TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

Subtitle A--[Reserved]

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

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Subtitle B--Army Programs

Subtitle C--Navy Programs

Subtitle D--Air Force Programs

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

Subtitle E--Other Programs

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

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. DEFENSE INSPECTOR GENERAL.

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

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

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

SEC. 107. DEFENSE HEALTH PROGRAMS.

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

Subtitle B--Army Programs

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

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

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

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

SEC. 113. FAMILY OF MEDIUM TACTICAL VEHICLES.

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

Subtitle C--Navy Programs

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

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

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

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

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

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

Subtitle D--Air Force Programs

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

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

SEC. 132. PATHFINDER PROGRAMS.

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

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

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

Subtitle E--Other Programs

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

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

SEC. 142. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

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

SEC. 143. GLOBAL INFORMATION GRID SYSTEM.

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

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

Subtitle A--Authorization of Appropriations

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

Subtitle B--Program Requirements, Restrictions, and Limitations

Subtitle C--Ballistic Missile Defense

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

Subtitle E--Other Matters

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

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

SEC. 203. DEFENSE HEALTH PROGRAMS.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. RAH-66 COMANCHE AIRCRAFT PROGRAM.

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

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

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

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

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

SEC. 214. ADVANCED SEAL DELIVERY SYSTEM.

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

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

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

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

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

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

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

SEC. 218. LITTORAL COMBAT SHIP PROGRAM.

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

Subtitle C--Ballistic Missile Defense

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 234. TEST AND EVALUATION WORKFORCE IMPROVEMENTS.

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

SEC. 235. COMPLIANCE WITH TESTING REQUIREMENTS.

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

Subtitle E--Other Matters

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

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

SEC. 242. TECHNOLOGY TRANSITION INITIATIVE.

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

``Sec. 2359a. Technology Transition Initiative

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

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

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

SEC. 243. DEFENSE ACQUISITION CHALLENGE PROGRAM.

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

``Sec. 2359b. Defense Acquisition Challenge Program

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

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

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

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

SEC. 245. VEHICLE FUEL CELL PROGRAM.

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

SEC. 246. DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

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

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

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

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

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

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

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

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

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

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

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

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

Subtitle B--Environmental Provisions

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Subtitle D--Workplace and Depot Issues

Subtitle E--Defense Dependents Education

Subtitle F--Information Technology

Subtitle G--Other Matters

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

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

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

SEC. 304. GRANT TO NATIONAL GUARD YOUTH FOUNDATION.

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

Subtitle B--Environmental Provisions

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

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

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

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

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

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

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

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

``2700. Definitions.''; and

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

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

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

SEC. 314. PROCUREMENT OF ENVIRONMENTALLY PREFERABLE PROCUREMENT ITEMS.

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

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

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

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle D--Workplace and Depot Issues

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

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

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

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

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

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

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

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

Subtitle E--Defense Dependents Education

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

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

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

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

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

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

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

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

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

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

Subtitle F--Information Technology

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

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

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

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

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

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

Subtitle G--Other Matters

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

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

SEC. 362. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

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

SEC. 363. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

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

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

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

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

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

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

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

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

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

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

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

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

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

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Subtitle B--Reserve Forces

Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

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

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

SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.

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

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

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

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

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

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

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

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

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

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

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

Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Subtitle B--Reserve Component Management

Subtitle C--Reserve Component Officer Personnel Policy

Subtitle D--Enlistment, Education, and Training Programs

Subtitle E--Decorations, Awards, and Commendations

Subtitle F--Administrative Matters

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

Subtitle H--Benefits

Subtitle I--Reports

Subtitle A--Officer Personnel Policy

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

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

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

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

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

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

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

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

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

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

SEC. 504. GRADES FOR CERTAIN POSITIONS.

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

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

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

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

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

``Sec. 3023. Chief of Legislative Liaison

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

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

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

``Sec. 5027. Chief of Legislative Affairs

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

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

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

``Sec. 5047. Legislative Assistant to the Commandant

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

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

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

``Sec. 8023. Chief of Legislative Liaison

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle B--Reserve Component Management

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle C--Reserve Component Officer Personnel Policy

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

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

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

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

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

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

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

Subtitle D--Enlistment, Education, and Training Programs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle E--Decorations and Awards

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

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

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

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

SEC. 543. KOREA DEFENSE SERVICE MEDAL.

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

``Sec. 3755. Korea Defense Service Medal

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

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

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

``Sec. 6257. Korea Defense Service Medal

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

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

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

``Sec. 8755. Korea Defense Service Medal

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

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

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

SEC. 544. COMMENDATION OF MILITARY CHAPLAINS.

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

Subtitle F--Administrative Matters

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

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

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

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

``Sec. 1559. Personnel limitation

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

``1559. Personnel limitation.''.

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

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

SEC. 554. EXTENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY.

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle H--Benefits

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

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

SEC. 572. EMERGENCY LEAVE OF ABSENCE PROGRAM.

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

``Sec. 709. Emergency leave of absence

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

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

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

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

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

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

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

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

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

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

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

Subtitle I--Reports

SEC. 581. QUADRENNIAL QUALITY OF LIFE REVIEW.

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

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

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

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

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

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

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

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

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

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

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

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Subtitle B--Bonuses and Special and Incentive Pays

Subtitle C--Travel and Transportation Allowances

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

Subtitle D--Retired Pay and Survivor Benefits

Subtitle E--Montgomery GI Bill

Subtitle F--Other Matters

Subtitle A--Pay and Allowances

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

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

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

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

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

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

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

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

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

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

Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

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

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

SEC. 616. ASSIGNMENT INCENTIVE PAY.

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

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

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

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

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

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

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

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

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

Subtitle C--Travel and Transportation Allowances

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

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

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

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

Subtitle D--Retired Pay and Survivor Benefits

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle E--Montgomery GI Bill

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

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

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

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

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

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

Subtitle F--Other Matters

SEC. 651. PAYMENT OF INTEREST ON STUDENT LOANS.

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

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

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

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

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

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

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

``Sec. 1788. Additional family assistance

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

``1788. Additional family assistance.''.

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

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

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

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

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

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Program Improvements

Subtitle B--Reports

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

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

Subtitle A--Health Care Program Improvements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle B--Reports

SEC. 711. CLAIMS INFORMATION.

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

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

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

SEC. 713. REPEAL OF REPORT REQUIREMENT.

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

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

SEC. 721. REVISED COORDINATION AND SHARING GUIDELINES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subtitle A--Acquisition Policy and Management

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

Subtitle C--Acquisition-Related Reports and Other Matters

Subtitle A--Acquisition Policy and Management

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

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

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

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

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

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

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

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

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

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

SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISITION PROCESSES.

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

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

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

SEC. 806. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 819. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

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

SEC. 820. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY.

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

Subtitle C--Acquisition-Related Reports and Other Matters

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

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

SEC. 822. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

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

Subtitle B--Space Activities

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

Subtitle C--Reports

Subtitle D--Other Matters

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

SEC. 901. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.

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

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

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

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

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

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

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

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

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

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

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

Subtitle B--Space Activities

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

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

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

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

Subtitle C--Reports

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

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

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

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

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

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

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

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

Subtitle D--Other Matters

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

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

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

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

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

SEC. 932. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

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

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

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

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

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

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Subtitle B--Naval Vessels and Shipyards

Subtitle C--Strategic Matters

Subtitle D--Reports

Subtitle E--Extension of Expiring Authorities

Subtitle F--Other Matters

Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

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

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

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

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

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

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

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

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

``Sec. 2773a. Departmental accountable officials

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

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

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

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

``Sec. 2787. Reports of survey

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

``2787. Reports of survey.''.

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

SEC. 1007. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

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

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

SEC. 1008. IMPROVEMENTS IN TRAVEL CARD MANAGEMENT.

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

``Sec. 2784a. Management of travel cards

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

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

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

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

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

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

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

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

Subtitle B--Naval Vessels and Shipyards

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 1025. SHIP COMBAT SYSTEM INDUSTRIAL BASE.

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

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

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

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

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

Subtitle C--Strategic Matters

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

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

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

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

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

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

Subtitle D--Reports

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

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

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

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

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

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

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

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

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

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

Subtitle E--Extension of Expiring Authorities

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

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

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

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

``Sec. 3536. Expiration

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

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

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

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

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

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

Subtitle F--Other Matters

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

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

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

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

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

SEC. 1062. TECHNICAL AND CLERICAL AMENDMENTS.

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 1065. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

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

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

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

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

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

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

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

``Sec. 1599d. Professional accounting positions: authority to prescribe
certification and credential standards

``(a) Authority To Prescribe Professional Certification
Standards.--The Secretary of Defense may prescribe professional
certification and credential standards for professional
accounting positions within the Department of Defense. Any such
standard shall be prescribed as a Department of Defense
regulation.
``(b) Waiver Authority.--The Secretary may waive any
standard prescribed under subsection (a) whenever the Secretary
determines such a waiver to be appropriate.
``(c) Applicability.--A standard prescribed under
subsection (a) shall not apply to any person employed by the
Department of Defense before the standard is prescribed.
``(d) Report.--The Secretary of Defense shall submit to
Congress a report on the Secretary's plans to provide training
to appropriate Department of Defense personnel to meet any new
professional and credential standards prescribed under
subsection (a). Such report shall be prepared in conjunction
with the Director of the Office of Personnel Management. Such a
report shall be submitted not later than one year after the
effective date of any regulations, or any revision to
regulations, prescribed pursuant to subsection (a).
``(e) Definition.--In this section, the term `professional
accounting position' means a position or group of positions in
the GS-510, GS-511, and GS-505 series that involves
professional accounting work.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to prescribe
certification and credential standards.''.

(b) Effective Date.--Standards established pursuant to
section 1599d of title 10, United States Code, as added by
subsection (a), may take effect no sooner than 120 days after
the date of the enactment of this Act.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

SEC. 1201. AUTHORITY TO PROVIDE ADMINISTRATIVE SERVICES AND SUPPORT FOR
COALITION LIAISON OFFICERS.

(a) Authority.--(1) Chapter 53 of title 10, United States
Code, is amended by inserting after section 1051 the following
new section:

``Sec. 1051a. Coalition liaison officers: administrative services and
support; travel, subsistence, and other personal
expenses

``(a) Authority.--The Secretary of Defense may provide
administrative services and support for the performance of
duties by a liaison officer of another nation involved in a
coalition with the United States while the liaison officer is
assigned temporarily to the headquarters of a combatant
command, component command, or subordinate operational command
of the United States in connection with the planning for, or
conduct of, a coalition operation.
``(b) Travel and Subsistence Expenses.--(1) The Secretary
may pay the expenses specified in paragraph (2) of a liaison
officer of a developing country in connection with the
assignment of that officer to the headquarters of a combatant
command as described in subsection (a), if the assignment is
requested by the commander of the combatant command.
``(2) Expenses of a liaison officer that may be paid under
paragraph (1) in connection with an assignment described in
that paragraph are the following:
``(A) Travel and subsistence expenses.
``(B) Personal expenses directly necessary to carry
out the duties of that officer in connection with that
assignment.
``(c) Reimbursement.--To the extent that the Secretary
determines appropriate, the Secretary may provide the services
and support authorized by subsection (a) and the expenses
authorized by subsection (b) with or without reimbursement from
(or on behalf of) the recipients.
``(d) Definitions.--In this section:
``(1) The term `administrative services and
support' includes base or installation support
services, office space, utilities, copying services,
fire and police protection, and computer support.
``(2) The term `coalition' means an ad hoc
arrangement between or among the United States and one
or more other nations for common action.
``(e) Expiration of Authority.--The authority under this
section shall expire on September 30, 2005.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 1051
the following new item:

``1051a. Coalition liaison officers: administrative services and
support; travel, subsistence, and other personal expenses.''.

(b) GAO Report.--Not later than March 1, 2005, the
Comptroller General shall submit to the Committees on Armed
Services of the Senate and House of Representatives a report
providing an assessment of the implementation of section 1051a
of title 10, United States Code, as added by subsection (a).
The assessment shall include the following:
(1) A description of the benefits to coalition
operations of the authority provided by that section.
(2) A statement of the cost to the Department of
Defense of the use of the authority provided by that
section.
(3) A summary of activities carried out under the
authority provided by that section, including (A) the
number of liaison officers for whom administrative
services and support or expenses were provided under
that authority and their countries of origin, and (B)
the type of services, support, and expenses provided.

SEC. 1202. AUTHORITY TO PAY FOR CERTAIN TRAVEL OF DEFENSE PERSONNEL OF
COUNTRIES PARTICIPATING IN NATO PARTNERSHIP FOR
PEACE PROGRAM.

(a) Authority for Use of Funds.--Section 1051(b) of title
10, United States Code, is amended--
(1) in paragraph (1), by striking ``paragraph (2)''
and inserting ``paragraphs (2) and (3)'';
(2) by redesignating paragraph (3) as paragraph
(4); and
(3) by inserting after paragraph (2) the following
new paragraph (3):
``(3) In the case of defense personnel of a developing
country that is not a member of the North Atlantic Treaty
Organization and that is participating in the Partnership for
Peace program of the North Atlantic Treaty Organization (NATO),
expenses authorized to be paid under subsection (a) may be paid
in connection with travel of personnel to the territory of any
of the countries participating in the Partnership for Peace
program or the territory of any NATO member country.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply only with respect to travel performed on or after
the date of the enactment of this Act.

SEC. 1203. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN
MOSCOW.

(a) Limitation.--Not more than 50 percent of the funds made
available to the Department of Defense for fiscal year 2003 for
activities associated with the Joint Data Exchange Center in
Moscow, Russia, may be obligated or expended for any such
activity until--
(1) the United States and the Russian Federation
enter into a cost-sharing agreement as described in
subsection (d) of section 1231 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat.
1654A-329);
(2) the United States and the Russian Federation
enter into an agreement or agreements exempting the
United States and any United States person from Russian
taxes, and from liability under Russian laws, with
respect to activities associated with the Joint Data
Exchange Center;
(3) the Secretary of Defense submits to the
Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of
Representatives a copy of each agreement referred to in
paragraphs (1) and (2); and
(4) a period of 30 days has expired after the date
of the final submission under paragraph (3).
(b) Joint Data Exchange Center.--For purposes of this
section, the term ``Joint Data Exchange Center'' means the
United States-Russian Federation joint center for the exchange
of data to provide early warning of launches of ballistic
missiles and for notification of such launches that is provided
for in a joint United States-Russian Federation memorandum of
agreement signed in Moscow in June 2000.

SEC. 1204. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND
MONITOR IRAQI WEAPONS ACTIVITIES.

(a) Limitation on Amount of Assistance in Fiscal Year
2003.--The total amount of the assistance for fiscal year 2003
that is provided by the Secretary of Defense under section 1505
of the Weapons of Mass Destruction Control Act of 1992 (22
U.S.C. 5859a) as activities of the Department of Defense in
support of activities under that Act may not exceed
$15,000,000.
(b) Extension of Authority To Provide Assistance.--
Subsection (f) of section 1505 of the Weapons of Mass
Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended by
striking ``2002'' and inserting ``2003''.

SEC. 1205. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON COORDINATION AND
INTEGRATION OF ALL UNITED STATES NONPROLIFERATION
ACTIVITIES.

Section 1205 of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1247) is
amended by adding at the end the following new subsection:
``(d) Annual Report on Implementation of Plan.--(1) Not
later than January 31, 2003, and each year thereafter, the
President shall submit to Congress a report on the
implementation of the plan required by subsection (a) during
the preceding year.
``(2) Each report under paragraph (1) shall include--
``(A) a discussion of progress made during the year
covered by such report in the matters of the plan
required by subsection (a);
``(B) a discussion of consultations with foreign
nations, and in particular the Russian Federation,
during such year on joint programs to implement the
plan;
``(C) a discussion of cooperation, coordination,
and integration during such year in the implementation
of the plan among the various departments and agencies
of the United States Government, as well as private
entities that share objectives similar to the
objectives of the plan; and
``(D) any recommendations that the President
considers appropriate regarding modifications to law or
regulations, or to the administration or organization
of any Federal department or agency, in order to
improve the effectiveness of any programs carried out
during such year in the implementation of the plan.''.

SEC. 1206. REPORT REQUIREMENT REGARDING RUSSIAN PROLIFERATION TO IRAN
AND OTHER COUNTRIES OF PROLIFERATION CONCERN.

(a) Report Requirement.--Not later than March 15 of 2003
through 2009, the President shall submit to Congress a report
(in unclassified and classified form as necessary) describing
in detail Russian proliferation of weapons of mass destruction
and ballistic missile goods, technology, expertise, and
information, and of dual-use items that may contribute to the
development of weapons of mass destruction and ballistic
missiles, to Iran and to other countries of proliferation
concern during the year preceding the year in which the report
is submitted. The report shall include a detailed description
of the following, for the year covered by the report:
(1) The number, type, and quality of direct and
dual-use weapons of mass destruction and ballistic
missile goods, technology, expertise, and information
transferred.
(2) The form, location, and manner in which such
transfers took place.
(3) The contribution that such transfers could make
to the recipient countries' weapons of mass destruction
and ballistic missile programs, and an estimate of how
soon such countries will test, possess, and deploy
weapons of mass destruction and ballistic missiles.
(4) The impact and consequences that such transfers
have, and could have over the next 10 years--
(A) on United States national security;
(B) on United States military forces
deployed in the region to which such transfers
are being made;
(C) on United States allies, friends, and
interests in that region; and
(D) on the military capabilities of the
country receiving such transfers from Russia.
(5) The policy and strategy that the President
intends to employ to halt Russian proliferation, the
policy tools that the President intends to use to carry
out that policy and strategy, the rationale for
employing such tools, and the timeline by which the
President expects to see material progress in ending
Russian proliferation of direct and dual-use weapons of
mass destruction and missile goods, technology,
expertise, and information.
(b) Definition.--In this section, the term ``country of
proliferation concern'' means any country identified by the
Director of Central Intelligence as having engaged in the
acquisition of dual-use and other technology useful for the
development or production of weapons of mass destruction
(including nuclear weapons, chemical weapons, and biological
weapons) or advanced conventional munitions--
(1) in the most recent report under section 721 of
the Combatting Proliferation of Weapons of Mass
Destruction Act of 1996 (title VII of Public Law 104-
293; 50 U.S.C. 2366); or
(2) in any successor report on the acquisition by
foreign countries of dual-use and other technology
useful for the development or production of weapons of
mass destruction.

SEC. 1207. MONITORING OF IMPLEMENTATION OF 1979 AGREEMENT BETWEEN THE
UNITED STATES AND CHINA ON COOPERATION IN SCIENCE
AND TECHNOLOGY.

(a) In General.--The Secretary of State shall--
(1) monitor the implementation of the Agreement
specified in subsection (c);
(2) keep a systematic account of the protocols to
the Agreement;
(3) coordinate the activities of all agencies of
the United States Government that carry out cooperative
activities under the Agreement; and
(4) ensure that all activities conducted under the
Agreement comply with applicable laws and regulations
concerning the transfer of militarily sensitive
technologies and dual-use technologies.
(b) Responsibilities of the Office of Science and
Technology Cooperation.--Except as otherwise provided by the
Secretary of State, the functions of the Secretary under this
section shall be carried out through the Director of the Office
of Science and Technology Cooperation of the Department of
State.
(c) Agreement Defined.--For purposes of this section, the
term ``Agreement'' means the agreement between the United
States and the People's Republic of China known as the
``Agreement between the Government of the United States of
America and the Government of the People's Republic of China on
Cooperation in Science and Technology'', signed in Washington
on January 31, 1979, and its protocols.
(d) Biennial Report to Congress.--(1) Not later than April
1 of each even-numbered year, the Secretary of State shall
submit to Congress a report on the implementation of the
Agreement and on activities under the Agreement. Each such
report shall be submitted in both classified and unclassified
form, as necessary.
(2) Each report under this subsection shall provide an
evaluation of the benefits of the Agreement to the economy, to
the military, and to the industrial base of the People's
Republic of China and shall include the following:
(A) An accounting of all activities conducted under
the Agreement since the previous report (or, in the
case of the first report, since the Agreement was
entered into) and a projection of activities to be
undertaken under the Agreement during the next two
years.
(B) An estimate of the costs to the United States
to administer the Agreement during the period covered
by the report.
(C) An assessment of how the Agreement has
influenced the foreign and domestic policies of the
People's Republic of China and the policy of the
People's Republic of China toward scientific and
technological cooperation with the United States.
(D) An analysis by the Director of Central
Intelligence of the involvement of military
specialists, weapons specialists, and intelligence
specialists of the People's Republic of China in the
activities of the Joint Commission established under
the Agreement and in other activities conducted under
the Agreement.
(E) A determination by the Secretary of Defense,
developed with the assistance of the Director of
Central Intelligence, of the extent to which the
activities conducted under the Agreement have enhanced
the military and defense industrial base of the
People's Republic of China, and an assessment of the
effect that projected activities under the Agreement
for the next two years, including the transfer of
technology and know-how, could have on the economic and
military capabilities of the People's Republic of
China.
(F) An assessment by the Inspector General of the
Department of Commerce of--
(i) the extent to which programs or
activities carried out under the Agreement
provide access to technology, information, or
know-how that could enhance military
capabilities of the People's Republic of China;
and
(ii) the extent to which those programs or
activities are carried out in compliance with
export control laws and regulations of the
United States, especially those laws and
regulations governing so-called ``deemed
exports''.
(G) Any recommendations of the Secretary of State,
Secretary of Defense, or Director of Central
Intelligence for improving the monitoring of the
activities of the Joint Commission established under
the Agreement.
(3) The Secretary of State shall prepare each report under
this subsection in consultation with the Secretary of Defense,
the Secretary of Energy, the Director of Central Intelligence,
the Director of the Federal Bureau of Investigation, and the
Director of the National Science Foundation.
(e) Interagency Working Group.--The President shall
establish an interagency working group to oversee the
implementation of the Agreement by departments and agencies of
the United States. The working group shall consist of
representatives of such departments, agencies, and offices of
the executive branch as the President considers appropriate.
The working group shall perform the following functions:
(1) Assisting the Secretary of State and other
appropriate officials in setting standards under the
Agreement for science and technology transfers between
the United States and the People's Republic of China.
(2) Monitoring ongoing programs and activities
under the Agreement and recommending future programs
and activities under the Agreement.
(3) Developing a comprehensive database of all
government-to-government programs and United States
Government-funded programs under the Agreement.
(4) Coordinating activities under the Agreement
between United States Government agencies, including
elements of the intelligence community, as appropriate.

SEC. 1208. EXTENSION OF CERTAIN COUNTERPROLIFERATION ACTIVITIES AND
PROGRAMS.

(a) Extension of Interagency Counterproliferation Program
Review Committee.--Section 1605(f) of the National Defense
Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is
amended by striking ``September 30, 2004'' and inserting
``September 30, 2008''.
(b) Later Deadline for Submission of Annual Report.--
Subsection (a) of section 1503 of the National Defense
Authorization Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is
amended by striking ``February 1 of each year'' and inserting
``May 1 each year''.
(c) Additional Matters To Be Included in Annual Report.--
Subsection (b) of such section is amended by adding at the end
the following new paragraph:
``(8) A discussion of the limitations and
impediments to the biological weapons
counterproliferation efforts of the Department of
Defense (including legal, policy, and resource
constraints) and recommendations for the removal or
mitigation of such impediments and for ways to make
such efforts more effective.''.
(d) Technical Amendment To Reflect Change in Position
Title.--Section 1605(a)(4) of the National Defense
Authorization Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is
amended by striking ``Under Secretary of Defense for
Acquisition and Technology'' in the first sentence and
inserting ``Under Secretary of Defense for Acquisition,
Technology, and Logisitics''.

SEC. 1209. SEMIANNUAL REPORT BY DIRECTOR OF CENTRAL INTELLIGENCE ON
CONTRIBUTIONS BY FOREIGN PERSONS TO EFFORTS BY
COUNTRIES OF PROLIFERATION CONCERN TO OBTAIN
WEAPONS OF MASS DESTRUCTION AND THEIR DELIVERY
SYSTEMS.

(a) Content of Semiannual Report.--The Combatting
Proliferation of Weapons of Mass Destruction Act of 1996 (title
VII of Public Law 104-293) is amended by inserting after
section 721 (50 U.S.C. 2366) the following new section:

``SEC. 722. SEMIANNUAL REPORT ON CONTRIBUTIONS OF FOREIGN PERSONS TO
WEAPONS OF MASS DESTRUCTION AND DELIVERY SYSTEMS
EFFORTS OF COUNTRIES OF PROLIFERATION CONCERN.

``(a) Reports.--The Director of Central Intelligence shall
submit to Congress a semiannual report identifying each foreign
person that, during the period covered by the report, made a
material contribution to the research, development, production,
or acquisition by a country of proliferation concern of--
``(1) weapons of mass destruction (including
nuclear weapons, chemical weapons, or biological
weapons); or
``(2) ballistic or cruise missile systems.
``(b) Period of Semiannual Reports.--Semiannual reports
under subsection (a) shall be submitted as follows:
``(1) One semiannual report shall cover the first
six months of the calendar year and shall be submitted
not later than January 1 of the following year.
``(2) The other semiannual report shall cover the
second six months of the calendar year and shall be
submitted not later than July 1 of the following year.
``(c) Form of Reports.--(1) A report under subsection (a)
may be submitted in classified form, in whole or in part, if
the Director of Central Intelligence determines that submittal
in that form is advisable.
``(2) Any portion of a report under subsection (a) that is
submitted in classified form shall be accompanied by an
unclassified summary of such portion.
``(d) Definitions.--In this section:
``(1) The term `foreign person' means any of the
following:
``(A) A natural person who is not a citizen
of the United States.
``(B) A corporation, business association,
partnership, society, trust, or other
nongovernmental entity, organization, or group
that is organized under the laws of a foreign
country or has its principal place of business
in a foreign country.
``(C) Any foreign government or foreign
governmental entity operating as a business
enterprise or in any other capacity.
``(D) Any successor, subunit, or subsidiary
of any entity described in subparagraph (B) or
(C).
``(2) The term `country of proliferation concern'
means any country identified by the Director of Central
Intelligence as having engaged in the acquisition of
dual-use and other technology useful for the
development or production of weapons of mass
destruction (including nuclear weapons, chemical
weapons, and biological weapons) or advanced
conventional munitions--
``(A) in the most recent report under
section 721; or
``(B) in any successor report on the
acquisition by foreign countries of dual-use
and other technology useful for the development
or production of weapons of mass
destruction.''.
(b) Effective Date.--Section 722 of the Combatting
Proliferation of Weapons of Mass Destruction Act of 1996, as
added by subsection (a), shall take effect with the report with
respect to the first six months of 2003 required to be
submitted under that section not later than January 1, 2004.

SEC. 1210. REPORT ON FEASIBILITY AND ADVISABILITY OF SENIOR OFFICER
EXCHANGES BETWEEN THE ARMED FORCES OF THE UNITED
STATES AND THE MILITARY FORCES OF TAIWAN.

(a) Presidential Report.--Not later than 180 days after the
date of the enactment of this Act, the President shall submit
to Congress a report on--
(1) the feasibility and advisability of conducting
combined operational training with, and exchanges of
general and flag officers between, the Armed Forces of
the United States and the military forces of Taiwan;
and
(2) the progress being made in meeting United
States commitments to the security of Taiwan.
(b) Classification of Report.--The report required by this
section shall be submitted in unclassified form and, as
necessary, in classified form.

SEC. 1211. REPORT ON UNITED STATES FORCE STRUCTURE IN THE PACIFIC.

(a) Secretary of Defense Report.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
Defense shall submit to Congress a report on the plans of the
Department of Defense to maintain adequate United States force
structure in the Pacific, including any efforts (1) to augment
current basing arrangements, and (2) to implement the
recommendations from the most recent Quadrennial Defense Review
to improve United States military capabilities in the Pacific.
(b) Classification of Report.--The report required by this
section shall be submitted in unclassified form and, as
necessary, in classified form.

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

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
FUNDS.

(a) Specification of CTR Programs.--For purposes of section
301 and other provisions of this Act, Cooperative Threat
Reduction programs are the programs specified in section
1501(b) of the National Defense Authorization Act for Fiscal
Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362
note).
(b) Fiscal Year 2003 Cooperative Threat Reduction Funds
Defined.--As used in this title, the term ``fiscal year 2003
Cooperative Threat Reduction funds'' means the funds
appropriated pursuant to the authorization of appropriations in
section 301 for Cooperative Threat Reduction programs.
(c) Availability of Funds.--Funds appropriated pursuant to
the authorization of appropriations in section 301 for
Cooperative Threat Reduction programs shall be available for
obligation for three fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

(a) Funding for Specific Purposes.--Of the $416,700,000
authorized to be appropriated to the Department of Defense for
fiscal year 2003 in section 301(23) for Cooperative Threat
Reduction programs, the following amounts may be obligated for
the purposes specified:
(1) For strategic offensive arms elimination in
Russia, $70,500,000.
(2) For strategic nuclear arms elimination in
Ukraine, $6,500,000.
(3) For nuclear weapons transportation security in
Russia, $19,700,000.
(4) For nuclear weapons storage security in Russia,
$40,000,000.
(5) For activities designated as Other Assessments/
Administrative Support, $14,700,000.
(6) For defense and military contacts, $18,900,000.
(7) For weapons of mass destruction infrastructure
elimination activities in Kazakhstan, $9,000,000.
(8) For weapons of mass destruction infrastructure
elimination activities in Ukraine, $8,800,000.
(9) For chemical weapons destruction in Russia,
$50,000,000.
(10) For biological weapons proliferation
prevention in the former Soviet Union, $55,000,000.
(11) For weapons of mass destruction proliferation
prevention in the States of the former Soviet Union,
$40,000,000.
(b) Additional Funds Authorized for Certain Purposes.--Of
the funds authorized to be appropriated to the Department of
Defense for fiscal year 2003 in section 301(23) for Cooperative
Threat Reduction programs, $83,600,000 may be obligated for any
of the purposes specified in paragraphs (1) through (4) and (9)
of subsection (a) in addition to the amounts specifically
authorized in such paragraphs.
(c) Report on Obligation or Expenditure of Funds for Other
Purposes.--No fiscal year 2003 Cooperative Threat Reduction
funds may be obligated or expended for a purpose other than a
purpose listed in paragraphs (1) through (11) of subsection (a)
until 30 days after the date that the Secretary of Defense
submits to Congress a report on the purpose for which the funds
will be obligated or expended and the amount of funds to be
obligated or expended. Nothing in the preceding sentence shall
be construed as authorizing the obligation or expenditure of
fiscal year 2003 Cooperative Threat Reduction funds for a
purpose for which the obligation or expenditure of such funds
is specifically prohibited under this title or any other
provision of law.
(d) Limited Authority To Vary Individual Amounts.--(1)
Subject to paragraphs (2) and (3), in any case in which the
Secretary of Defense determines that it is necessary to do so
in the national interest, the Secretary may obligate amounts
appropriated for fiscal year 2003 for a purpose listed in any
of the paragraphs in subsection (a) in excess of the specific
amount authorized for that purpose.
(2) An obligation of funds for a purpose stated in any of
the paragraphs in subsection (a) in excess of the specific
amount authorized for such purpose may be made using the
authority provided in paragraph (1) only after--
(A) the Secretary submits to Congress notification
of the intent to do so together with a complete
discussion of the justification for doing so; and
(B) 15 days have elapsed following the date of the
notification.
(3) The Secretary may not, under the authority provided in
paragraph (1), obligate amounts for a purpose stated in any of
paragraphs (5) through (10) of subsection (a) in excess of 125
percent of the specific amount authorized for such purpose.
(4) In this section, the term ``specific amount
authorized'' means, with respect to a purpose listed in any
paragraph in subsection (a)--
(A) the amount specifically authorized for that
purpose in subsection (a), plus
(B) in the case of a purpose listed in paragraph
(1), (2), (3), (4), or (9) of subsection (a), any
amount obligated under subsection (b) for that purpose.

SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION OF
REPORTS.

Not more than 50 percent of fiscal year 2003 Cooperative
Threat Reduction funds may be obligated or expended until 30
days after the date of the submission of--
(1) the report required to be submitted in fiscal
year 2002 under section 1308(a) of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001
(as enacted into law by Public Law 106-398; 114 Stat.
1654A-341); and
(2) the update for the multiyear plan required to
be submitted for fiscal year 2001 under section 1205 of
the National Defense Authorization Act for Fiscal Year
1995 (Public Law 103-337; 22 U.S.C. 5952 note).

SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES CARRIED OUT
UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

(a) Additional Report Requirements.--Section 1308(c) of the
Floyd D. Spence National Defense Authorization Act for Fiscal
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat.
1654A-341) is amended by inserting at the end the following new
paragraphs:
``(6) To the maximum extent practicable, a
description of how revenue generated by activities
carried out under Cooperative Threat Reduction programs
in recipient States is being utilized, monitored, and
accounted for.
``(7) A description of the defense and military
activities carried out under Cooperative Threat
Reduction programs during the fiscal year ending in the
year preceding the year of the report, including--
``(A) the amounts obligated or expended for
such activities;
``(B) the purposes, goals, and objectives
for which such amounts were obligated and
expended;
``(C) a description of the activities
carried out, including the forms of assistance
provided, and the justification for each form
of assistance provided;
``(D) the success of each activity,
including the goals and objectives achieved for
each;
``(E) a description of participation by
private sector entities in the United States in
carrying out such activities, and the
participation of any other Federal department
or agency in such activities; and
``(F) any other information that the
Secretary considers relevant to provide a
complete description of the operation and
success of activities carried out under
Cooperative Threat Reduction programs.''.
(b) Effective Date.--Paragraphs (6) and (7) of section
1308(c) of such Act, as added by subsection (a), shall apply
beginning with the report submitted under that section in 2004.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE
MATERIAL STORAGE FACILITY.

No funds authorized to be appropriated for Cooperative
Threat Reduction programs for any fiscal year may be used for
the design, planning, or construction of a second wing for a
storage facility for Russian fissile material.

SEC. 1306. LIMITED WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR THREAT
REDUCTION IN STATES OF THE FORMER SOVIET UNION.

(a) Authority To Waive Restrictions and Eligibility
Requirements.--If the President submits the certification and
report described in subsection (b) with respect to an
independent state of the former Soviet Union for a fiscal
year--
(1) the restrictions in subsection (d) of section
1203 of the Cooperative Threat Reduction Act of 1993
(22 U.S.C. 5952) shall cease to apply, and funds may be
obligated and expended under that section for
assistance, to that state during that fiscal year; and
(2) funds may be obligated and expended during that
fiscal year under section 502 of the FREEDOM Support
Act (22 U.S.C. 5852) for assistance or other programs
and activities for that state even if that state has
not met one or more of the requirements for eligibility
under paragraphs (1) through (4) of that section.
(b) Certification and Report.--(1) The certification and
report referred to in subsection (a) are a written
certification submitted by the President to Congress that the
waiver of the restrictions and requirements described in
paragraphs (1) and (2) of that subsection during such fiscal
year is important to the national security interests of the
United States, together with a report containing the following:
(A) A description of the activity or activities
that prevent the President from certifying that the
state is committed to the matters set forth in the
provisions of law specified in paragraphs (1) and (2)
of subsection (a) in such fiscal year.
(B) An explanation of why the waiver is important
to the national security interests of the United
States.
(C) A description of the strategy, plan, or policy
of the President for promoting the commitment of the
state to, and compliance by the state with, such
matters, notwithstanding the waiver.
(2) The matter included in the report under paragraph (1)
shall be submitted in unclassified form, but may include a
classified annex.
(c) Fiscal Years Covered.--The authority under subsection
(a) shall apply only with respect to fiscal years 2003, 2004,
and 2005.
(d) Expiration of Authority.--The authority under
subsection (a) shall expire on September 30, 2005.
(e) Administration of Restrictions on Assistance.--
Subsection (d) of section 1203 of the Cooperative Threat
Reduction Act of 1993 (title XII of Public Law 103-160; 107
Stat. 1778; 22 U.S.C. 5952) is amended--
(1) by striking ``any year'' and inserting ``any
fiscal year''; and
(2) by striking ``that year'' and inserting ``such
fiscal year''.

TITLE XIV--HOMELAND SECURITY

SEC. 1401. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT IN SUPPORT OF
HOMELAND SECURITY.

(a) Responsible Senior Official.--The Secretary of Defense
shall designate a senior official of the Department of Defense
to coordinate all Department of Defense efforts to identify,
evaluate, deploy, and transfer to Federal, State, and local
first responders technology items and equipment in support of
homeland security.
(b) Duties.--The official designated pursuant to subsection
(a) shall--
(1) identify technology items and equipment
developed or being developed by Department of Defense
components that have the potential to enhance public
safety and improve homeland security;
(2) cooperate with appropriate Federal Government
officials outside the Department of Defense to evaluate
whether such technology items and equipment would be
useful to first responders;
(3) facilitate the timely transfer, through
identification of appropriate private sector
manufacturers, of appropriate technology items and
equipment to Federal, State, and local first
responders, in coordination with appropriate Federal
Government officials outside the Department of Defense;
(4) identify and eliminate redundant and
unnecessary research efforts within the Department of
Defense with respect to technologies to be deployed to
first responders;
(5) expedite the advancement of high priority
Department of Defense projects from research through
implementation of initial manufacturing; and
(6) participate in outreach programs established by
appropriate Federal Government officials outside the
Department of Defense to communicate with first
responders and to facilitate awareness of available
technology items and equipment to support responses to
crises.
(c) Support Agreement.--The official designated pursuant to
subsection (a) shall enter into an appropriate agreement with a
nongovernment entity for such entity to assist the official
designated under subsection (a) in carrying out that official's
duties under this section. Any such agreement shall be entered
into using competitive procedures in compliance with applicable
requirements of law and regulation.
(d) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to
the congressional defense committees a report on the actions
taken to carry out this section. The report shall include the
following:
(1) Identification of the senior official
designated pursuant to subsection (a).
(2) A summary of the actions taken or planned to be
taken to implement subsection (b), including a schedule
for planned actions.
(3) An initial list of technology items and
equipment identified pursuant to subsection (b)(1),
together with a summary of any program schedule for the
development, deployment, or transfer of such items and
equipment.
(4) A description of any agreement entered into
pursuant to subsection (c).

SEC. 1402. COMPREHENSIVE PLAN FOR IMPROVING THE PREPAREDNESS OF
MILITARY INSTALLATIONS FOR TERRORIST INCIDENTS.

(a) Comprehensive Plan.--The Secretary of Defense shall
develop a comprehensive plan for improving the preparedness of
military installations for preventing and responding to
terrorist attacks, including attacks involving the use or
threat of use of weapons of mass destruction.
(b) Preparedness Strategy.--The plan under subsection (a)
shall include a preparedness strategy that includes each of the
following:
(1) Identification of long-term goals and
objectives for improving the preparedness of military
installations for preventing and responding to
terrorist attacks.
(2) Identification of budget and other resource
requirements necessary to achieve those goals and
objectives.
(3) Identification of factors beyond the control of
the Secretary that could impede the achievement of
those goals and objectives.
(4) A discussion of the extent to which local,
regional, or national military response capabilities
are to be developed, integrated, and used.
(5) A discussion of how the Secretary will
coordinate the capabilities referred to in paragraph
(4) with local, regional, or national civilian and
other military capabilities.
(c) Performance Plan.--The plan under subsection (a) shall
include a performance plan that includes each of the following:
(1) A reasonable schedule, with milestones, for
achieving the goals and objectives of the strategy
under subsection (b).
(2) Performance criteria for measuring progress in
achieving those goals and objectives.
(3) A description of the process, together with a
discussion of the resources, necessary to achieve those
goals and objectives.
(4) A description of the process for evaluating
results in achieving those goals and objectives.
(d) Submittal to Congress.--The Secretary shall submit the
comprehensive plan developed under subsection (a) to the
Committee on Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives not later than
180 days after the date of the enactment of this Act.
(e) Comptroller General Review and Report.--Not later than
60 days after the date on which the Secretary submits the
comprehensive plan under subsection (a), the Comptroller
General shall review the plan and submit to the committees
referred to in subsection (d) the Comptroller General's
assessment of the plan.
(f) Annual Report.--(1) In each of 2004, 2005, and 2006,
the Secretary of Defense shall include a report on the
comprehensive plan developed under subsection (a) with the
materials that the Secretary submits to Congress in support of
the budget submitted by the President that year pursuant to
section 1105(a) of title 31, United States Code.
(2) Each such report shall include--
(A) a discussion of any revision that the Secretary
has made in the comprehensive plan developed under
subsection (a) since the last report under this
subsection or, in the case of the first such report,
since the plan was submitted under subsection (d); and
(B) an assessment of the progress made in achieving
the goals and objectives of the strategy set forth in
the plan.
(3) If the Secretary includes in the report for 2004 or
2005 under this subsection a declaration that the goals and
objectives of the preparedness strategy set forth in the
comprehensive plan have been achieved, no further report is
required under this subsection.

SEC. 1403. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

(a) Establishment of Additional Teams.--The Secretary of
Defense shall--
(1) establish 23 additional teams designated as
Weapons of Mass Destruction Civil Support Teams, for a
total of 55 such teams; and
(2) ensure that of such 55 teams, there is at least
one team established in each State and territory.
(b) Plan.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to Congress a
plan, in furtherance of subsection (a), for establishing at
least one Weapons of Mass Destruction Civil Support Team in
each State and territory that does not have such a team as of
the date of the enactment of this Act. The plan shall include
the following:
(1) A schedule and budget for manning, training,
and equipping the new teams as rapidly as is possible
without jeopardizing the attainment of full
effectiveness by the new teams.
(2) A discussion of whether the mission of the
Weapons of Mass Destruction Civil Support Teams should
be expanded and, if so, how.
(c) Definitions.--For purposes of this section:
(1) The term ``Weapons of Mass Destruction Civil
Support Team'' means a team of members of the reserve
components of the Armed Forces that is established
under section 12310(c) of title 10, United States Code,
in support of emergency preparedness programs to
prepare for or to respond to any emergency involving
the use of a weapon of mass destruction.
(2) The term ``State and territory'' means each of
the several States, the District of Columbia, Puerto
Rico, Guam, and the Virgin Islands.

SEC. 1404. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN
SUPPORTING HOMELAND SECURITY.

(a) Report Required.--Not later than March 1, 2003, the
Secretary of Defense shall submit to the congressional defense
committees a report on Department of Defense responsibilities,
mission, and plans for military support of homeland security.
(b) Contents of Report.--The report shall include, at a
minimum, a discussion of the following:
(1) The Department of Defense definition of its
homeland security mission, particularly with respect to
how it relates to providing military support to civil
authorities, managing the consequences of terrorist
attacks, and homeland defense, and the actions the
Department is taking to implement the homeland security
mission as so defined.
(2) Changes in the roles, missions,
responsibilities, organization, and capabilities of the
following organizations in order to conduct their
homeland security support mission, and the reasons for
such changes:
(A) The Office of the Secretary of Defense.
(B) The Army, Navy, Air Force, and Marine
Corps.
(C) The Army National Guard and the Air
National Guard.
(D) The combatant commands of the
Department of Defense.
(3) The relationship between the Department of
Defense, including its combatant commands, and the
following with regard to homeland security:
(A) Other departments and agencies of the
Federal Government.
(B) State and local governments.
(C) The National Guard and Reserve
components.
(4) The current capability of the Department of
Defense to respond to terrorist attacks employing
chemical, biological, radiological, nuclear, high
explosive or cyberterrorism weapons against personnel
and critical infrastructure of the Department,
including identification of the goals of the Department
for being fully capable of responding to such attacks,
current deficiencies in that capability, the resources
required to achieve that capability, and a long-term
plan to reach that capability.
(5) The roles, missions, and responsibilities of
the intelligence components of the Department of
Defense in support of its homeland security mission,
including the policies and plans for--
(A) collecting and analyzing information
related to homeland security;
(B) sharing that information with other
agencies of the Federal Government; and
(C) preparing threat and risk assessments
and issuing warnings.
(6) A discussion of plans of the Department of
Defense for training, exercising, and preparing to
perform its homeland security mission, including--
(A) individual and collective training for
civilian and military personnel of the
Department involved in homeland security;
(B) integrated training with other agencies
of the Federal Government, and with State and
local governments, as appropriate;
(C) interagency exercises and simulations;
and
(D) the development of a permanent
``terrorist opposing force'' capable of
challenging the Department's plans, policies,
and capabilities during training events and
exercises.
(7) A discussion of how the Department of Defense
biological defense research program supports its
homeland security mission.
(8) A discussion of the efforts by the Department
of Defense to develop, either within the Department or
through contracts with private entities,
anticyberterrorism technology, including an assessment
of whether and how such efforts should be increased.
(9) An assessment of the need for and feasibility
of developing and fielding Department of Defense
regional chemical-biological incident response teams
across the United States, including options for
providing the resources and personnel necessary for
developing and fielding any such teams.
(10) A discussion of the Department of Defense
plans and efforts to place new emphasis on the unique
operational demands associated with homeland security
while ensuring that defense of the United States
remains the primary mission of the Department of
Defense.
(11) The resource constraints and legal impediments
to implementing any of the activities discussed under
paragraphs (1) through (10).

SEC. 1405. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE ASSISTANCE TO
LOCAL FIRST RESPONDERS.

It is the sense of Congress that the Secretary of Defense
should, to the extent the Secretary considers appropriate and
feasible, provide assistance, in accordance with otherwise
applicable provisions of law, to entities that are local first
responders for domestic terrorist incidents in order to assist
those entities in improving their capabilities to respond to
such incidents.

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

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED OPERATIONS FOR
THE WAR ON TERRORISM.

In addition to any other amounts authorized to be
appropriated by this Act, there is hereby authorized to be
appropriated for the Department of Defense for fiscal year
2003, subject to subsection (b), $10,000,000,000 only for the
conduct of Operation Noble Eagle and Operation Enduring Freedom
in continuation of the war on terrorism in accordance with the
purposes stated in section 2(a) of the Authorization for Use of
Military Force (Public Law 107-40; 50 U.S.C. 1541 note).

SEC. 1502. MOBILIZATION AND PERSONNEL.

Of the amount authorized to be appropriated in section
1501, $2,550,000,000 shall be available only for transfer
(subject to sections 1507 and 1508) to fiscal year 2003
military personnel accounts of the Department of Defense for
the purpose of providing for the personnel and personnel
support costs of the members of the Armed Forces who are
participating in Operation Noble Eagle or Operation Enduring
Freedom in continuation of the war on terrorism in accordance
with the purposes referred to in section 1501(a).

SEC. 1503. OPERATIONS.

Of the amount authorized to be appropriated in section
1501, $4,270,000,000 shall be available only for transfer
(subject to sections 1507 and 1508) to fiscal year 2003
operation and maintenance accounts and working-capital funds of
the Department of Defense for operating costs of the conduct of
Operation Noble Eagle and Operation Enduring Freedom in
continuation of the war on terrorism in accordance with the
purposes referred to in section 1501(a).

SEC. 1504. EQUIPMENT REPLACEMENT AND ENHANCEMENT.

Of the amount authorized to be appropriated in section
1501, $1,000,000,000 shall be available only for transfer
(subject to sections 1507 and 1508) to fiscal year 2003
procurement and research, development, test, and evaluation
accounts of the Department of Defense for--
(1) emergency replacement of equipment and
munitions lost or expended in operations conducted as
part of Operation Noble Eagle or Operation Enduring
Freedom in continuation of the war on terrorism in
accordance with the purposes referred to in section
1501(a); or
(2) enhancement of critical military capabilities
necessary to carry out operations as part of those
Operations in continuation of the war on terrorism in
accordance with those purposes.

SEC. 1505. CLASSIFIED ACTIVITIES.

Of the amount authorized to be appropriated in section
1501, $1,980,000,000 shall be available only for unspecified
intelligence and classified activities carried out in support
of Operation Noble Eagle or Operation Enduring Freedom in
continuation of the war on terrorism in accordance with the
purposes referred to in section 1501(a), and only by transfer
(subject to sections 1507 and 1508) to fiscal year 2003
accounts of the Department of Defense in amounts as follows:
(1) To procurement accounts, $1,618,200,000.
(2) To operation and maintenance accounts,
$301,600,000.
(3) To research, development, test, and evaluation
accounts, $60,200,000.

SEC. 1506. PROCUREMENT OF MUNITIONS.

Of the amount authorized to be appropriated in section
1501, $200,000,000 shall be available only for the procurement
of munitions for the support of Operation Noble Eagle or
Operation Enduring Freedom in continuation of the war on
terrorism in accordance with the purposes referred to in
section 1501(a), and only by transfer (subject to sections 1507
and 1508) to fiscal year 2003 procurement accounts of the
Department of Defense in amounts as follows:
(1) To accounts of the Army for the procurement of
ammunition $94,000,000.
(2) To accounts of the Navy for the procurement of
weapons, $35,000,000.
(3) To accounts of the Navy and Marine Corps for
the procurement of ammunition, $25,000,000.
(4) To accounts of the Air Force for the
procurement of ammunition, $40,000,000.
(5) To Defense-wide procurement accounts for
special operations forces, $6,000,000.

SEC. 1507. DISCRETIONARY RESTORATION OF AUTHORIZATIONS OF
APPROPRIATIONS REDUCED FOR MANAGEMENT EFFICIENCIES.

(a) Transfer Authority.--(1) The Secretary of Defense may,
subject to section 1508, transfer up to a total of
$1,000,000,000 of the amount authorized to be appropriated by
section 1501 to Department of Defense accounts under titles I,
II, and III that are reduced for savings described in paragraph
(2) if and to the extent that the Secretary determines that
such savings are not achievable.
(2) The savings referred to in paragraph (1) are savings
that are to be achieved from--
(A) improved management of Department of Defense
contracts for the procurement of services; and
(B) the deferral of expenditures on financial
management systems.
(b) Relationship to Other Title XV Transfer Authorities.--
The total amount transferred under sections 1502 through 1506
and under section 1507 may not exceed the total amount
authorized to be appropriated by section 1501.

SEC. 1508. GENERAL PROVISIONS APPLICABLE TO TRANSFERS.

(a) Merger of Transferred Amounts.--Amounts transferred
pursuant to this title shall be merged with, and shall be
available for the same purposes and the same period as, the
account to which transferred.
(b) Congressional Notice-and-Wait Requirement.--A transfer
may not be made under section 1502, 1503, 1504, 1505, 1506, or
1507 until the Secretary of Defense has submitted a notice in
writing to the congressional defense committees of the proposed
transfer and a period of 15 days has elapsed after the date
such notice is received. Any such notice shall include
specification of the amount of the proposed transfer, the
account to which the transfer is to be made, and the purpose of
the transfer.
(c) Relationship to Other Transfer Authority.--The transfer
authorities provided in this title are in addition to any other
transfer authority available to the Secretary of Defense under
any provision of any other title of this Act or under any other
provision of law.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ``Military Construction
Authorization Act for Fiscal Year 2003''.

TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(1), the Secretary of the Army may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Army: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama........................ Anniston Army Depot.. $1,900,000
Fort Rucker.......... $15,808,000
Redstone Arsenal..... $1,950,000
Alaska......................... Fort Greely.......... $2,700,000
Fort Richardson...... $20,011,000
Fort Wainwright...... $139,906,000
Arizona........................ Fort Huachuca........ $10,400,000
Yuma Proving Ground.. $4,500,000
California..................... Fort Irwin........... $2,522,000
Colorado....................... Fort Carson.......... $9,698,000
District of Columbia........... Walter Reed Army $13,794,000
Medical Center......
Georgia........................ Fort Benning......... $86,250,000
Fort Stewart/Hunter $26,000,000
Army Air Field......
Hawaii......................... Schofield Barracks... $191,000,000
Kansas......................... Fort Leavenworth..... $7,979,000
Fort Riley........... $81,095,000
Kentucky....................... Blue Grass Army Depot $5,500,000
Fort Campbell........ $106,300,000
Fort Knox............ $5,873,000
Louisiana...................... Fort Polk............ $37,620,000
Maryland....................... Fort Detrick......... $22,500,000
Massachusetts.................. Natick Research, $4,100,000
Development, and
Engineering Center..
Missouri....................... Fort Leonard Wood.... $24,993,000
New Jersey..................... Picatinny Arsenal.... $7,500,000
New York....................... Fort Drum............ $18,300,000
United States $4,991,000
Military Academy,
West Point..........
North Carolina................. Fort Bragg........... $99,632,000
Oklahoma....................... Fort Sill............ $39,652,000
Pennsylvania................... Letterkenny Army $1,550,000
Depot...............
South Carolina................. Fort Jackson......... $3,051,000
Texas.......................... Fort Bliss........... $5,200,000
Fort Hood............ $83,061,000
Virginia....................... Fort Eustis.......... $4,133,000
Fort Lee............. $7,103,000
Washington..................... Fort Lewis........... $56,195,000
Yakima Training $3,000,000
Center.
-----------------
Total.............. $1,155,767,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(2), the Secretary of the Army may acquire real property
and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

Army: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Belgium........................ Supreme Headquarters, $13,600,000
Allied Powers Europe..
Germany........................ Area Support Group, $17,200,000
Bamberg.
Campbell Barracks...... $8,300,000
Coleman Barracks....... $1,350,000
Darmstadt.............. $3,500,000
Grafenwoehr............ $69,866,000
Landstuhl.............. $2,400,000
Mannheim............... $42,000,000
Schweinfurt............ $2,000,000
Italy.......................... Vicenza................ $34,700,000
Korea.......................... Camp Carroll........... $20,000,000
Camp Castle............ $6,800,000
Camp Hovey............. $25,000,000
Camp Humphreys......... $36,000,000
Camp Henry............. $10,200,000
Camp Tango............. $12,600,000
K16 Airfield........... $40,000,000
Qatar.......................... Qatar.................. $8,600,000
---------------
Total.................. $354,116,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(3), the Secretary of the Army may acquire real property
and carry out military construction projects for the
installation and location, and in the amount, set forth in the
following table:

Army: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation Amount
------------------------------------------------------------------------
Unspecified Worldwide.......... Unspecified Worldwide.. $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2104(a)(6)(A), the Secretary of the Army may construct
or acquire family housing units (including land acquisition and
supporting facilities) at the installations, for the purposes,
and in the amounts set forth in the following table:

Army: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Fort Wainwright............ 38 Units................... $17,752,000
Arizona................................. Yuma Proving Ground........ 33 Units................... $6,100,000
Korea................................... Yongsan.................... 10 Units................... $3,100,000
-------------
Total:................... $26,952,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(6)(A), the Secretary of the Army may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
family housing units in an amount not to exceed $15,653,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2104(a)(6)(A), the Secretary of the
Army may improve existing military family housing units in an
amount not to exceed $239,751,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
2002, for military construction, land acquisition, and military
family housing functions of the Department of the Army in the
total amount of $3,104,176,000, as follows:
(1) For military construction projects inside the
United States authorized by section 2101(a),
$949,567,000.
(2) For military construction projects outside the
United States authorized by section 2101(b),
$354,116,000.
(3) For military construction projects at
unspecified worldwide locations authorized by section
2101(c), $4,000,000.
(4) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $21,550,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $160,313,000.
(6) For military family housing functions:
(A) For construction and acquisition,
planning and design, and improvement of
military family housing and facilities,
$282,356,000.
(B) For support of military family housing
(including the functions described in section
2833 of title 10, United States Code),
$1,117,274,000.
(7) For the construction of phase 2 of Saddle
Access Road, Pohakoula Training Facility, Hawaii,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2001
(division B of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001, as enacted into
law by Public Law 106-398; 114 Stat. 1654A-389),
$13,000,000.
(8) For the construction of phase 3 of a barracks
complex, Butner Road, at Fort Bragg, North Carolina,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2001
(division B of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001, as enacted into
law by Public Law 106-398; 114 Stat. 1654A-389),
$50,000,000.
(9) For the construction of phase 2 of a barracks
complex, D Street, at Fort Richardson, Alaska,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1280),
$21,000,000.
(10) For the construction of phase 2 of a barracks
complex, Nelson Boulevard, at Fort Carson, Colorado,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1280), as
amended by section 2105 of this Act, $42,000,000.
(11) For the construction of phase 2 of a basic
combat trainee complex at Fort Jackson, South Carolina,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1280), as
amended by section 2105 of this Act, $39,000,000.
(12) For the construction of phase 2 of a barracks
complex, 17th and B Streets, at Fort Lewis, Washington,
authorized by section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1280),
$50,000,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2101 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1), (2), and (3) of subsection (a);
(2) $18,000,000 (the balance of the amount
authorized under section 2101(a) for construction of a
barracks complex, Main Post, at Fort Benning, Georgia);
(3) $100,000,000 (the balance of the amount
authorized under section 2101(a) for construction of a
barracks complex, Capron Avenue, at Schofield Barracks,
Hawaii);
(4) $13,200,000 (the balance of the amount
authorized under section 2101(a) for construction of a
combined arms collective training facility at Fort
Riley, Kansas);
(5) $50,000,000 (the balance of the amount
authorized under section 2101(a) for construction of a
barracks complex, Range Road, at Fort Campbell,
Kentucky); and
(6) $25,000,000 (the balance of the amount
authorized under section 2101(a) for construction of a
consolidated maintenance complex at Fort Sill,
Oklahoma).
(c) Adjustments.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (12) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by the following:
(1) $18,596,000, which represents savings resulting
from adjustments to foreign currency exchange rates for
military construction, military family housing
construction, and military family housing support
outside the United States.
(2) $29,350,000, which represents savings resulting
from adjustments in the accounting of civilian
personnel benefits.
(3) $16,740,000, which represents savings resulting
from reductions in supervision, inspection, and
overhead costs.
(4) $18,000,000, which represents savings resulting
from lower-than-expected inflation.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2002 PROJECTS.

(a) Modification.--The table in section 2101(a) of the
Military Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1281) is amended--
(1) in the item relating to Fort Carson, Colorado,
by striking ``$66,000,000'' in the amount column and
inserting ``$67,000,000''; and
(2) in the item relating to Fort Jackson, South
Carolina, by striking ``$65,650,000'' in the amount
column and inserting ``$68,650,000''.
(b) Conforming Amendments.--Section 2104(b) of that Act
(115 Stat. 1284) is amended--
(1) in paragraph (3), by striking ``$41,000,000''
and inserting ``$42,000,000''; and
(2) in paragraph (4), by striking ``$36,000,000''
and inserting ``$39,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2001 PROJECT.

The table in section 2101(b) of the Military Construction
Authorization Act for Fiscal Year 2001 (division B of the Floyd
D. Spence National Defense Authorization Act for Fiscal Year
2001, as enacted into law by Public Law 106-398; 114 Stat.
1654A-390) is amended by striking ``Camp Page'' in the
installation or location column and inserting ``Camp Stanley''.

TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), the Secretary of the Navy may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
State Installation or location Amount
----------------------------------------------------------------------------------------------------------------
Arizona........................................ Marine Corps Air Station, Yuma........ $3,000,000
California..................................... Auxiliary Landing Field, San Diego $6,150,000
(San Clemente Island)................
Marine Corps Air-Ground Combat Center, $39,470,000
Twentynine Palms.....................
Marine Corps Air Station, Camp $11,930,000
Pendleton............................
Marine Corps Air Station, Miramar..... $12,210,000
Marine Corps Base, Camp Pendleton..... $84,040,000
Marine Corps Logistics Base, Barstow.. $4,450,000
Naval Air Station, Lemoore............ $35,855,000
Naval Air Warfare Center, Point Mugu, $6,760,000
San Nicholas Island..................
Naval Air Warfare Center, China Lake.. $10,100,000
Naval Construction Training Center, $10,170,000
Port Hueneme.........................
Naval Post Graduate School, Monterey.. $9,020,000
Naval Station, San Diego.............. $12,210,000
Connecticut.................................... Naval Submarine Base, New London...... $7,880,000
District of Columbia........................... Marine Corps Barracks................. $3,700,000
Naval District, Washington............ $2,690,000
Florida........................................ Naval Air Station, Jacksonville....... $13,342,000
Naval Air Station, Pensacola.......... $990,000
Naval School Explosive Ordnance $6,350,000
Detachment, Eglin....................
Naval Station, Mayport................ $1,900,000
Naval Surface Warfare Center Coastal $10,700,000
Systems Station, Panama City.........
Georgia........................................ Naval Submarine Base, Kings Bay....... $1,580,000
Hawaii......................................... Marine Corps Base..................... $9,500,000
Naval Shipyard, Pearl Harbor.......... $18,500,000
Naval Station, Pearl Harbor........... $34,090,000
Illinois....................................... Naval Training Center, Great Lakes.... $83,190,000
Indiana........................................ Naval Surface Warfare Center, Crane... $11,610,000
Maine.......................................... Naval Air Station, Brunswick.......... $9,830,000
Naval Shipyard, Kittery-Portsmouth.... $15,200,000
Maryland....................................... Naval Air Facility, Andrews Air Force $9,680,000
Base.................................
Naval Surface Warfare Center, $12,900,000
Carderock Division...................
United States Naval Academy........... $1,800,000
Mississippi.................................... Naval Air Station, Meridian........... $2,850,000
Naval Construction Battalion Center, $5,460,000
Gulfport.............................
Naval Station, Pascagoula............. $25,305,000
New Jersey..................................... Naval Air Warfare Center, Lakehurst... $5,200,000
Naval Weapons Station, Earle.......... $5,600,000
North Carolina................................. Marine Corps Air Station, Cherry Point $6,040,000
Marine Corps Air Station, New River... $6,920,000
Marine Corps Base, Camp Lejeune....... $9,570,000
Rhode Island................................... Naval Station, Newport................ $15,900,000
South Carolina................................. Marine Corps Air Station, Beaufort.... $13,700,000
Marine Corps Recruit Depot, Parris $10,490,000
Island...............................
Naval Weapons Station, Charleston..... $5,740,000
Texas.......................................... Naval Air Station, Corpus Christi..... $7,150,000
Naval Station, Ingleside.............. $5,000,000
Naval Air Station, Kingsville......... $6,210,000
Virginia....................................... Marine Corps Combat Development $24,864,000
Command, Quantico....................
Naval Air Station Oceana.............. $16,490,000
Naval Amphibious Base, Little Creek... $9,770,000
Naval Shipyard, Norfolk, Portsmouth... $36,470,000
Naval Station, Norfolk................ $168,965,000
Naval Support Activity, Norfolk....... $2,260,000
Naval Surface Warfare Center, Dahlgren $15,830,000
Naval Weapons Station, Yorktown....... $15,020,000
Washington..................................... Naval Air Station, Whidbey Island..... $17,580,000
Naval Magazine, Indian Island......... $4,030,000
Naval Station, Bremerton.............. $45,870,000
Naval Submarine Base, Bangor.......... $22,310,000
Naval Undersea Warfare Center, Keyport $7,500,000
Puget Sound Naval Shipyard, Bremerton. $57,132,000
Strategic Weapons Facility, Bangor.... $7,340,000
Various Locations.............................. Host Nation Infrastructure............ $1,000,000
------------------------
Total............................... $1,084,363,000
----------------------------------------------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(2), the Secretary of the Navy may acquire real property
and carry out military construction projects for the locations
outside the United States, and in the amounts, set forth in the
following table:

Navy: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Bahrain........................ Naval Support Activity, $25,970,000
Bahrain...............
Cuba........................... Naval Station, $4,280,000
Guantanamo Bay........
Diego Garcia................... Diego Garcia, Naval $11,090,000
Support Facility......
Greece......................... Naval Support Activity, $6,800,000
Joint Headquarters
Command, Larissa......
Guam........................... Commander, United $13,400,000
States Naval Forces,
Guam..................
Iceland........................ Naval Air Station, $14,920,000
Keflavik.
Italy.......................... Naval Air Station, $55,660,000
Sigonella.
Spain.......................... Naval Station, Rota.... $18,700,000
---------------
Total................ $150,820,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2204(a)(5)(A), the Secretary of the Navy may construct
or acquire family housing units (including land acquisition and
supporting facilities) at the installations, for the purposes,
and in the amounts set forth in the following table:

Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
California............................. Naval Air Station, Lemoore 178 Units................. $40,981,000
Twentynine Palms.......... 76 Units.................. $19,425,000
Connecticut............................ Naval Submarine Base, New 100 Units................. $24,415,000
London...................
Florida................................ Naval Station, Mayport.... 1 Unit.................... $329,000
Hawaii................................. Marine Corps Base, Kaneohe 65 Units.................. $24,797,000
Bay......................
Maine.................................. Naval Air Station, 22 Units.................. $5,000,000
Brunswick................
Mississippi............................ Naval Air Station, 56 Units.................. $9,755,000
Meridian.................
North Carolina......................... Marine Corps Base, Camp 317 Units................. $43,650,000
Lejeune..................
Virginia............................... Marine Corps Base, 290 Units................. $41,843,000
Quantico.................
United Kingdom........................ Joint Maritime Facility, 62 Units.................. $18,524,000
St. Mawgan...............
----------------
Total................... $228,719,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriation in section
2204(a)(5)(A), the Secretary of the Navy may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$11,281,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2204(a)(5)(A), the Secretary of the
Navy may improve existing military family housing units in an
amount not to exceed $139,468,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2002 PROJECTS.

(a) Military Construction Project at Naval Station,
Norfolk, Virginia.--The table in section 2201(a) of the
Military Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1286) is amended--
(1) in the item relating to Naval Station, Norfolk,
Virginia, by striking ``$139,270,000'' in the amount
column and inserting ``$139,550,000''; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$1,059,030,000''.
(b) Military Family Housing at Quantico, Virginia.--The
table in section 2202(a) of that Act (115 Stat. 1288) is
amended in the item relating to Marine Corps Combat Development
Command, Quantico, Virginia, by striking ``60 Units'' in the
purpose column and inserting ``39 Units''.
(c) Conforming Amendment.--Section 2204(b)(2) of that Act
(115 Stat. 1289) is amended by striking ``$33,240,000'' and
inserting ``$33,520,000''.

TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(1), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Air Force: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alaska......................... Clear Air Station...... $14,400,000
Eielson Air Force Base. $41,100,000
Arizona........................ Davis-Monthan Air Force $19,270,000
Base.
Luke Air Force Base.... $13,000,000
Arkansas....................... Little Rock Air Force $25,600,000
Base.
California..................... Beale Air Force Base... $11,740,000
Travis Air Force Base.. $33,469,000
Vandenberg Air Force $10,500,000
Base.
Colorado....................... Buckley Air National $17,700,000
Guard Base.
Peterson Air Force Base $5,500,000
Schriever Air Force $5,700,000
Base.
United States Air Force $4,200,000
Academy.
District of Columbia........... Bolling Air Force Base. $5,000,000
Florida........................ Avon Park Air Force $2,000,000
Range.
Elgin Air Force Base... $4,250,000
Hurlburt Field......... $15,000,000
MacDill Air Force Base. $20,000,000
Georgia........................ Robins Air Force Base.. $29,400,000
Hawaii......................... Hickam Air Force Base.. $1,350,000
Kansas......................... McConnell Air Force $7,500,000
Base.
Louisiana...................... Barksdale Air Force $22,900,000
Base.
Maryland....................... Andrews Air Force Base. $9,600,000
Massachusetts.................. Hanscom Air Force Base. $7,700,000
Mississippi.................... Keesler Air Force Base. $22,000,000
Nebraska....................... Offutt Air Force Base.. $11,000,000
Nevada......................... Nellis Air Force Base.. $56,850,000
New Jersey..................... McGuire Air Force Base. $29,831,000
New Mexico..................... Cannon Air Force Base.. $4,650,000
Holloman Air Force Base $4,650,000
Kirtland Air Force Base $21,900,000
North Carolina................. Pope Air Force Base.... $9,700,000
North Dakota................... Minot Air Force Base... $5,000,000
Ohio........................... Wright-Patterson Air $25,000,000
Force Base.
Oklahoma....................... Altus Air Force Base... $14,800,000
Vance Air Force Base... $4,800,000
South Carolina................. Shaw Air Force Base.... $6,800,000
South Dakota................... Ellsworth Air Force $13,200,000
Base.
Texas.......................... Goodfellow Air Force $10,600,000
Base.
Lackland Air Force Base $37,300,000
Lackland Air Force Base $10,000,000
(Camp Bullis).........
Laughlin Air Force Base $8,000,000
Sheppard Air Force Base $16,000,000
Utah........................... Hill Air Force Base.... $14,500,000
Virginia....................... Langley Air Force Base. $70,940,000
---------------
Total.................. $724,400,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(2), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

Air Force: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Diego Garcia................... Diego Garcia........... $17,100,000
Germany........................ Ramstein Air Force Base $71,783,000
Guam........................... Andersen Air Force Base $31,000,000
Italy.......................... Aviano Air Force Base.. $6,600,000
Japan.......................... Kadena Air Force Base.. $6,000,000
Korea.......................... Osan Air Base.......... $15,100,000
Spain.......................... Naval Station, Rota.... $31,818,000
Turkey......................... Incirlik Air Force Base $1,550,000
United Kingdom................. Royal Air Force, $19,000,000
Fairford.
Royal Air Force, $13,400,000
Lakenheath.
Wake Island.................... Wake Island............ $24,900,000
---------------
Total................ $238,251,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(3), the Secretary of the Air Force may acquire real
property and carry out military construction projects for the
installation and location, and in the amount, set forth in the
following table:

Air Force: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation Amount
------------------------------------------------------------------------
Unspecified Worldwide.......... Classified Location.... $24,993,000
---------------
Total................ $24,993,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts
appropriated pursuant to the authorization of appropriations in
section 2304(a)(6)(A), the Secretary of the Air Force may
construct or acquire family housing units (including land
acquisition and supporting facilities) at the installations,
for the purposes, and in the amounts set forth in the following
table:

Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................ Luke Air Force Base....... 140 Units................. $18,954,000
California............................. Travis Air Force Base..... 110 Units................. $24,320,000
Colorado............................... Peterson Air Force Base... 2 Units................... $959,000
United States Air Force 71 Units.................. $12,424,000
Academy..................
Delaware............................... Dover Air Force Base...... 112 Units................. $19,615,000
Florida................................ Eglin Air Force Base...... Housing Office............ $597,000
Eglin Air Force Base...... 134 Units................. $15,906,000
MacDill Air Force Base.... 96 Units.................. $18,086,000
Hawaii................................. Hickam Air Force Base..... 96 Units.................. $29,050,000
Idaho.................................. Mountain Home Air Force 95 Units.................. $24,392,000
Base.....................
Kansas................................. McConnell Air Force Base.. Housing Maintenance $1,514,000
Facility.................
Maryland............................... Andrews Air Force Base.... 53 Units.................. $9,838,000
Andrews Air Force Base.... 52 Units.................. $8,807,000
Mississippi............................ Columbus Air Force Base... Housing Office............ $412,000
Keesler Air Force Base.... 117 Units................. $16,505,000
Missouri............................... Whiteman Air Force Base... 97 Units.................. $17,107,000
Montana................................ Malmstrom Air Force Base.. 18 Units.................. $4,717,000
New Mexico............................. Holloman Air Force Base... 101 Units................. $20,161,000
North Carolina......................... Pope Air Force Base....... Housing Maintenance $991,000
Facility.................
Seymour Johnson Air Force 126 Units................. $18,615,000
Base.....................
North Dakota........................... Grand Forks Air Force Base 150 Units................. $30,140,000
Minot Air Force Base...... 112 Units................. $21,428,000
Minot Air Force Base...... 102 Units................. $20,315,000
Oklahoma............................... Vance Air Force Base...... 59 Units.................. $11,423,000
South Dakota........................... Ellsworth Air Force Base.. Housing Maintenance $447,000
Facility.................
Ellsworth Air Force Base.. 22 Units.................. $4,794,000
Texas.................................. Dyess Air Force Base...... 85 Units.................. $14,824,000
Randolph Air Force Base... Housing Maintenance $447,000
Facility.................
Randolph Air Force Base... 112 Units................. $14,311,000
Virginia............................... Langley Air Force Base.... Housing Office............ $1,193,000
Germany................................ Ramstein Air Force Base... 19 Units.................. $8,534,000
Korea.................................. Osan Air Base............. 113 Units................. $35,705,000
Osan Air Base............. Housing Supply Warehouse.. $834,000
United Kingdom......................... Royal Air Force, Housing Office and $2,203,000
Lakenheath............... Maintenance Facility.....
-----------------------------
Total..................... $429,568,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(6)(A), the Secretary of the Air Force may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$34,188,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2304(a)(6)(A), the Secretary of the
Air Force may improve existing military family housing units in
an amount not to exceed $226,068,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

SEC. 2305. AUTHORITY FOR USE OF MILITARY CONSTRUCTION FUNDS FOR
CONSTRUCTION OF PUBLIC ROAD NEAR AVIANO AIR BASE,
ITALY, TO REPLACE ROAD CLOSED FOR FORCE PROTECTION
PURPOSES.

(a) Authority To Use Funds.--Using amounts authorized to be
appropriated by section 2304(a)(2), the Secretary of the Air
Force may carry out a project to provide a public road, and
associated improvements, to replace a public road adjacent to
Aviano Air Base, Italy, that has been closed for force
protection purposes.
(b) Scope of Authority.--(1) The authority of the Secretary
to carry out the project referred to in subsection (a) shall
include authority as follows:
(A) To acquire property for the project for
transfer to a host nation authority.
(B) To provide funds to a host nation authority to
acquire property for the project.
(C) To make a contribution to a host nation
authority for purposes of carrying out the project.
(D) To provide vehicle and pedestrian access to
landowners affected by the project.
(2) The acquisition of property using the authority in
subparagraph (A) or (B) of paragraph (1) may be made regardless
of whether or not ownership of such property will vest in the
United States.
(c) Inapplicability of Certain Real Property Management
Requirement.--Section 2672(a)(1)(B) of title 10, United States
Code, shall not apply with respect to any acquisition of
interests in land for purposes of the project authorized by
subsection (a).

TITLE XXIV--DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2404(a)(1), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

Defense Agencies: Inside the United States
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Chemical Demilitarization...... Pine Bluff, Arkansas... $18,937,000
Defense Intelligence Agency.... Bolling Air Force Base, $111,958,000
District of Columbia..
Defense Logistics Agency....... Defense Supply Center, $5,500,000
Richmond, Virginia....
Naval Air Station, New $9,500,000
Orleans, Louisiana....
Travis Air Force Base, $16,000,000
California............
Defense Threat Reduction Agency Fort Belvoir, Virginia. $76,388,000
Department of Defense Fort Bragg, North $2,036,000
Dependents Schools............ Carolina..............
Fort Jackson, South $2,506,000
Carolina..............
Marine Corps Base, Camp $12,138,000
Lejeune, North
Carolina..............
Marine Corps Base, $1,418,000
Quantico, Virginia....
United States Military $4,347,000
Academy, West Point,
New York..............
Joint Chiefs of Staff.......... Peterson Air Force $25,000,000
Base, Colorado.
Missile Defense Agency......... Kauai, Hawaii.......... $23,400,000
National Security Agency....... Fort Meade, Maryland... $4,484,000
Special Operations Command..... Dam Neck, Virginia..... $3,900,000
Fort Bragg, North $30,800,000
Carolina.
Hurlburt Field, Florida $11,100,000
Naval Amphibious Base, $14,300,000
Little Creek, Virginia
Stennis Space Center, $5,000,000
Mississippi.
TRICARE Management Activity.... Elmendorf Air Force $10,400,000
Base, Alaska..........
Hickam Air Force Base, $2,700,000
Hawaii.
Washington Headquarters District of Columbia... $2,500,000
Services......................
---------------
Total................ $394,312,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2404(a)(2), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

Defense Agencies: Outside the United States
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Defense Logistics Agency....... Andersen Air Force $17,586,000
Base, Guam............
Naval Forces Marianas $6,000,000
Islands, Guam.........
Naval Station, Rota, $23,400,000
Spain.................
Royal Air Force, $17,000,000
Fairford, United
Kingdom...............
Yokota Air Base, Japan. $23,000,000
Department of Defense Kaiserslautern, Germany $957,000
Dependents Schools............
Lajes Field, Azores, $1,192,000
Portugal..............
Seoul, Korea........... $31,683,000
Supreme Headquarters, $1,573,000
Allied Powers Europe,
Belgium...............
Spangdahlem Air Base, $997,000
Germany...............
Vicenza, Italy......... $2,117,000
TRICARE Management Activity.... Naval Support Activity, $41,449,000
Naples, Italy.........
Spangdahlem Air Base, $39,629,000
Germany...............
---------------
Total................ $206,583,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2404(a)(8)(A), the Secretary of
Defense may improve existing military family housing units in
an amount not to exceed $5,480,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2404(a)(6), the Secretary of Defense
may carry out energy conservation projects under section 2865
of title 10, United States Code, in the amount of $34,531,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
2002, for military construction, land acquisition, and military
family housing functions of the Department of Defense (other
than the military departments) in the total amount of
$1,434,795,000, as follows:
(1) For military construction projects inside the
United States authorized by section 2401(a),
$357,712,000.
(2) For military construction projects outside the
United States authorized by section 2401(b),
$206,583,000.
(3) For unspecified minor construction projects
under section 2805 of title 10, United States Code,
$16,293,000.
(4) For contingency construction projects of the
Secretary of Defense under section 2804 of title 10,
United States Code, $10,000,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $45,532,000.
(6) For energy conservation projects authorized by
section 2403, $34,531,000.
(7) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note), $565,138,000.
(8) For military family housing functions:
(A) For improvement of military family
housing and facilities, $5,480,000.
(B) For support of military family housing
(including functions described in section 2833
of title 10, United States Code), $42,432,000.
(C) For credit to the Department of Defense
Family Housing Improvement Fund established by
section 2883(a)(1) of title 10, United States
Code, $2,000,000.
(9) For payment of a claim against the Hospital
Replacement project at Elmendorf Air Force Base,
Alaska, $10,400,000.
(10) For the construction of phase 4 of an
ammunition demilitarization facility at Pueblo Chemical
Activity, Colorado, authorized by section 2401(a) of
the Military Construction Authorization Act for Fiscal
Year 1997 (division B of Public Law 104-201; 110 Stat.
2775), as amended by section 2406 of the Military
Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 839) and
section 2407 of this Act, $38,000,000.
(11) For the construction of phase 5 of an
ammunition demilitarization facility at Newport Army
Depot, Indiana, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year
1999 (division B of Public Law 105-261; 112 Stat.
2193), as amended by section 2406 of this Act,
$61,494,000.
(12) For the construction of phase 5 of an
ammunition demilitarization facility at Aberdeen
Proving Ground, Maryland, authorized by section 2401(a)
of the Military Construction Authorization Act for
Fiscal Year 1999 (division B of Public Law 105-261; 112
Stat. 2193), as amended by section 2406 of the Military
Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1299),
$20,600,000.
(13) For the construction of phase 3 of an
ammunition demilitarization facility at Blue Grass Army
Depot, Kentucky, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year
2000 (division B of Public Law 106-65; 113 Stat. 835),
as amended by section 2405 of the Military Construction
Authorization Act for Fiscal Year 2002 (division B of
Public Law 107-107; 115 Stat. 1298) and section 2405 of
this Act, $10,300,000.
(14) For the construction of phase 3 of an
ammunition demilitarization support facility at Blue
Grass Army Depot, Kentucky, authorized by section
2401(a) of the Military Construction Authorization Act
for Fiscal Year 2000 (division B of Public Law 106-65;
113 Stat. 835), $8,300,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2401 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1) and (2) of subsection (a); and
(2) $26,200,000 (the balance of the amount
authorized under section 2401(a) for the construction
of the Defense Threat Reduction Center, Fort Belvoir,
Virginia).
(c) Adjustments.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (14) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by the following:
(1) $2,976,000, which represents savings resulting
from adjustments to foreign currency exchange rates for
military construction, military family housing
construction, and military family housing support
outside the United States.
(2) $37,000, which represents savings resulting
from adjustments in the accounting of civilian
personnel benefits.
(3) $7,414,000, which represents savings resulting
from reductions in supervision, inspection, and
overhead costs.
(4) $7,000,000, which represents savings resulting
from lower-than-expected inflation.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2000 PROJECT.

(a) Modification.--The table in section 2401(a) of the
Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 835), as amended by
section 2405 of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat.
1298), is further amended--
(1) under the agency heading relating to Chemical
Demilitarization, in the item relating to Blue Grass
Army Depot, Kentucky, by striking ``$254,030,000'' in
the amount column and inserting ``$290,325,000''; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$748,245,000''.
(b) Conforming Amendment.--Section 2405(b)(3) of the
Military Construction Authorization Act for Fiscal Year 2000
(113 Stat. 839), as so amended, is further amended by striking
``$231,230,000'' and inserting ``$267,525,000''.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
1999 PROJECT.

(a) Modification.--The table in section 2401(a) of the
Military Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2193), as amended
by section 2406 of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 115
Stat. 1299), is further amended--
(1) under the agency heading relating to Chemical
Demilitarization, in the item relating to Newport Army
Depot, Indiana, by striking ``$191,550,000'' in the
amount column and inserting ``$293,853,000''; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$829,919,000''.
(b) Conforming Amendment.--Section 2404(b)(2) of the
Military Construction Authorization Act for Fiscal Year 1999
(112 Stat. 2196) is amended by striking ``$162,050,000'' and
inserting ``$264,353,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
1997 PROJECT.

(a) Modification.--The table in section 2401(a) of the
Military Construction Authorization Act for Fiscal Year 1997
(division B of Public Law 104-201; 110 Stat. 2775), as amended
by section 2406 of the Military Construction Authorization Act
for Fiscal Year 2000 (division B of Public Law 106-65; 113
Stat. 839), is further amended--
(1) under the agency heading relating to Chemical
Demilitarization Program, in the item relating to
Pueblo Chemical Activity, Colorado, by striking
``$203,500,000'' in the amount column and inserting
``$261,000,000''; and
(2) by striking the amount identified as the total
in the amount column and inserting ``$607,454,000''.
(b) Conforming Amendment.--Section 2406(b)(2) of the
Military Construction Authorization Act for Fiscal Year 1997
(110 Stat. 2779), as so amended, is further amended by striking
``$203,500,000'' and inserting ``$261,000,000''.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the
North Atlantic Treaty Organization Security Investment program
as provided in section 2806 of title 10, United States Code, in
an amount not to exceed the sum of the amount authorized to be
appropriated for this purpose in section 2502 and the amount
collected from the North Atlantic Treaty Organization as a
result of construction previously financed by the United
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
2002, for contributions by the Secretary of Defense under
section 2806 of title 10, United States Code, for the share of
the United States of the cost of projects for the North
Atlantic Treaty Organization Security Investment program
authorized by section 2501, in the amount of $168,200,000.
(b) Adjustment.--The total amount authorized to be
appropriated pursuant to subsection (a) is the amount specified
in such subsection, reduced by $1,000,000, which represents
savings resulting from lower-than-expected inflation.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) In General.--There are authorized to be appropriated
for fiscal years beginning after September 30, 2002, for the
costs of acquisition, architectural and engineering services,
and construction of facilities for the Guard and Reserve
Forces, and for contributions therefor, under chapter 1803 of
title 10, United States Code (including the cost of acquisition
of land for those facilities), the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the
United States, $237,236,000; and
(B) for the Army Reserve, $99,399,000.
(2) For the Department of the Navy, for the Naval
and Marine Corps Reserve, $75,801,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the
United States, $204,215,000; and
(B) for the Air Force Reserve, $85,649,000.
(b) Adjustment.--The total amount authorized to be
appropriated pursuant to subsection (a)(1)(A) is the amount
specified in such subsection, reduced by $1,000,000, which
represents savings resulting from lower-than-expected
inflation.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
SPECIFIED BY LAW.

(a) Expiration of Authorizations After Three Years.--Except
as provided in subsection (b), all authorizations contained in
titles XXI through XXVI for military construction projects,
land acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor) shall expire on the later of--
(1) October 1, 2005; or
(2) the date of the enactment of an Act authorizing
funds for military construction for fiscal year 2006.
(b) Exception.--Subsection (a) shall not apply to
authorizations for military construction projects, land
acquisition, family housing projects, and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor) for which appropriated funds have been
obligated before the later of--
(1) October 1, 2005; or
(2) the date of the enactment of an Act authorizing
funds for fiscal year 2006 for military construction
projects, land acquisition, family housing projects and
facilities, and contributions to the North Atlantic
Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000
PROJECTS.

(a) Extension of Certain Projects.--Notwithstanding section
2701 of the Military Construction Authorization Act for Fiscal
Year 2000 (division B of Public Law 106-65; 113 Stat. 841),
authorizations set forth in the tables in subsection (b), as
provided in section 2302 or 2601 of that Act, shall remain in
effect until October 1, 2003, or the date of the enactment of
an Act authorizing funds for military construction for fiscal
year 2004, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

Air Force: Extension of 2000 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma.............................. Tinker Air Force Base.... Replace Family Housing (41 $6,000,000
Units)......................
Texas................................. Lackland Air Force Base.. Dormitory.................... $5,300,000
----------------------------------------------------------------------------------------------------------------

Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Virginia.............................. Fort Pickett............. Multi-Purpose Range Complex- $13,500,000
Heavy.......................
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999
PROJECTS.

(a) Extension.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1999
(division B of Public Law 105-261; 112 Stat. 2199),
authorizations set forth in the table in subsection (b), as
provided in section 2302 of that Act and extended by section
2702 of the Military Construction Authorization Act for Fiscal
Year 2002 (division B of Public Law 107-107; 115 Stat. 1301),
shall remain in effect until October 1, 2003, or the date of
the enactment of an Act authorizing funds for military
construction for fiscal year 2004, whichever is later.
(b) Table.--The table referred to in subsection (a) is as
follows:

Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Delaware.............................. Dover Air Force Base..... Replace Family Housing (55 $8,988,000
Units)......................
Florida............................... Patrick Air Force Base... Replace Family Housing (46 $9,692,000
Units)......................
New Mexico............................ Kirtland Air Force Base.. Replace Family Housing (37 $6,400,000
Units)......................
Ohio.................................. Wright-Patterson Air Replace Family Housing (40 $5,600,000
Force Base.............. Units)......................
----------------------------------------------------------------------------------------------------------------

TITLE XXVIII--GENERAL PROVISIONS

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

Subtitle B--Real Property and Facilities Administration

Subtitle C--Land Conveyances

Part I--Army Conveyances

Part II--Navy Conveyances

Part III--Air Force Conveyances

Subtitle D--Other Matters

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

SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

(a) Increase in Number of Units Authorized for Lease at
Current Maximum Amount.--Paragraph (3) of section 2828(e) of
title 10, United States Code, is amended by striking ``800
units'' and inserting ``1,175 units''.
(b) Authority To Lease Additional Number of Units at
Increased Maximum Amount.--That section is further amended--
(1) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively;
(2) by inserting after paragraph (3) the following
new paragraph (4):
``(4) In addition to the units of family housing referred
to in paragraph (1) for which the maximum lease amount is
$25,000 per unit per year, the Secretary of the Army may lease
not more than 2,400 units of family housing in Korea subject to
a maximum lease amount of $35,000 per unit per year.'';
(3) in paragraph (5), as so redesignated, by
striking ``and (3)'' and inserting ``(3), and (4)'';
and
(4) in paragraph (6), as so redesignated, by
striking ``53,000'' and inserting ``55,775''.

SEC. 2802. MODIFICATION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND
IMPROVEMENT OF MILITARY HOUSING.

(a) Authorized Utilities and Services.--Section 2872a(b) of
title 10, United States Code, is amended by adding at the end
the following new paragraphs:
``(11) Firefighting and fire protection services.
``(12) Police protection services.''.
(b) Leasing of Housing.--(1) Section 2874 of such title is
amended--
(A) by redesignating subsection (b) as subsection
(c); and
(B) by striking subsection (a) and inserting the
following new subsections:
``(a) Lease Authorized.--The Secretary concerned may enter
into contracts for the lease of housing units that the
Secretary determines are suitable for use as military family
housing or military unaccompanied housing.
``(b) Use of Leased Units.--The Secretary concerned shall
utilize housing units leased under this section as military
family housing or military unaccompanied housing, as
appropriate.''.
(2) The heading for such section is amended to read as
follows:

``Sec. 2874. Leasing of housing''.

(3) The table of sections at the beginning of subchapter IV
of chapter 169 of such title is amended by striking the item
relating to section 2874 and inserting the following new item:

``2874. Leasing of housing.''.

(c) Repeal of Interim Lease Authority.--(1) Section 2879 of
such title is repealed.
(2) The table of sections at the beginning of subchapter IV
of chapter 169 of such title is amended by striking the item
relating to section 2879.

SEC. 2803. PILOT HOUSING PRIVATIZATION AUTHORITY FOR ACQUISITION OR
CONSTRUCTION OF MILITARY UNACCOMPANIED HOUSING.

(a) In General.--(1) Subchapter IV of chapter 169 of title
10, United States Code, is amended by inserting after section
2881 the following new section:

``Sec. 2881a. Pilot projects for acquisition or construction of
military unaccompanied housing

``(a) Pilot Projects Authorized.--The Secretary of the Navy
may carry out not more than three pilot projects under the
authority of this section or another provision of this
subchapter to use the private sector for the acquisition or
construction of military unaccompanied housing in the United
States, including any territory or possession of the United
States.
``(b) Treatment of Housing; Assignment of Members.--The
Secretary of the Navy may assign members of the armed forces
without dependents to housing units acquired or constructed
under the pilot projects, and such housing units shall be
considered as quarters of the United States or a housing
facility under the jurisdiction of the Secretary for purposes
of section 403 of title 37.
``(c) Basic Allowance for Housing.--(1) The Secretary of
Defense may prescribe and, under section 403(n) of title 37,
pay for members of the armed forces without dependents in
privatized housing acquired or constructed under the pilot
projects higher rates of partial basic allowance for housing
than the rates authorized under paragraph (2) of such section.
``(2) The partial basic allowance for housing paid for a
member at a higher rate under this subsection may be paid
directly to the private sector source of the housing to whom
the member is obligated to pay rent or other charge for
residing in such housing if the private sector source credits
the amount so paid against the amount owed by the member for
the rent or other charge.
``(d) Funding.--(1) The Secretary of the Navy shall use the
Department of Defense Military Unaccompanied Housing
Improvement Fund to carry out activities under the pilot
projects.
``(2) Subject to 90 days prior notification to the
appropriate committees of Congress, such additional amounts as
the Secretary of Defense considers necessary may be transferred
to the Department of Defense Military Unaccompanied Housing
Improvement Fund from amounts appropriated for construction of
military unaccompanied housing in military construction
accounts. The amounts so transferred shall be merged with and
be available for the same purposes and for the same period of
time as amounts appropriated directly to the Fund.
``(e) Reports.--(1) The Secretary of the Navy shall
transmit to the appropriate committees of Congress a report
describing--
``(A) each contract for the acquisition of military
unaccompanied housing that the Secretary proposes to
solicit under the pilot projects;
``(B) each conveyance or lease proposed under
section 2878 of this title in furtherance of the pilot
projects; and
``(C) the proposed partial basic allowance for
housing rates for each contract as they vary by grade
of the member and how they compare to basic allowance
for housing rates for other contracts written under the
authority of the pilot programs.
``(2) The report shall describe the proposed contract,
conveyance, or lease and the intended method of participation
of the United States in the contract, conveyance, or lease and
provide a justification of such method of participation. The
report shall be submitted not later than 90 days before the
date on which the Secretary issues the contract solicitation or
offers the conveyance or lease.
``(f) Expiration.--Notwithstanding section 2885 of this
title, the authority of the Secretary of the Navy to enter into
a contract under the pilot programs shall expire September 30,
2007.''.
(2) The table of sections at the beginning of such
subchapter is amended by inserting after the item relating to
section 2881 the following new item:

``2881a. Pilot projects for acquisition or construction of military
unaccompanied housing.''.

(b) Conforming Amendment.--Section 2871(7) of title 10,
United States Code, is amended by inserting before the period
at the end the following: ``and transient housing intended to
be occupied by members of the armed forces on temporary duty''.

SEC. 2804. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING
CONSTRUCTION OVERSEAS.

Section 803 of the Military Construction Authorization Act,
1984 (Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

SEC. 2805. AVAILABILITY OF ENERGY COST SAVINGS REALIZED AT MILITARY
INSTALLATIONS.

Section 2865(b) of title 10, United States Code, is amended
by striking ``through the end of the fiscal year following the
fiscal year for which the funds were appropriated'' and
inserting ``until expended''.

Subtitle B--Real Property and Facilities Administration

SEC. 2811. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON
MILITARY TRAINING, TESTING, AND OPERATIONS.

(a) In General.--Chapter 159 of title 10, United States
Code, is amended by inserting after section 2684 the following
new section:

``Sec. 2684a. Agreements to limit encroachments and other constraints
on military training, testing, and operations

``(a) Agreements Authorized.--The Secretary of Defense or
the Secretary of a military department may enter into an
agreement with an eligible entity described in subsection (b)
to address the use or development of real property in the
vicinity of a military installation for purposes of--
``(1) limiting any development or use of the
property that would be incompatible with the mission of
the installation; or
``(2) preserving habitat on the property in a
manner that--
``(A) is compatible with environmental
requirements; and
``(B) may eliminate or relieve current or
anticipated environmental restrictions that
would or might otherwise restrict, impede, or
otherwise interfere, whether directly or
indirectly, with current or anticipated
military training, testing, or operations on
the installation.
``(b) Eligible Entities.--An agreement under this section
may be entered into with any of the following:
``(1) A State or political subdivision of a State.
``(2) A private entity that has as its stated
principal organizational purpose or goal the
conservation, restoration, or preservation of land and
natural resources, or a similar purpose or goal, as
determined by the Secretary concerned.
``(c) Inapplicability of Certain Contract Requirements.--
Chapter 63 of title 31 shall not apply to any agreement entered
into under this section.
``(d) Acquisition and Acceptance of Property and
Interests.--(1) An agreement with an eligible entity under this
section may provide for--
``(A) the acquisition by the entity of all right,
title, and interest in and to any real property, or any
lesser interest in the property, as may be appropriate
for purposes of this section; and
``(B) the sharing by the United States and the
entity of the acquisition costs.
``(2) Property or interests may not be acquired pursuant to
the agreement unless the owner of the property or interests
consents to the acquisition.
``(3) The agreement shall require the entity to transfer to
the United States, upon the request of the Secretary concerned,
all or a portion of the property or interest acquired under the
agreement or a lesser interest therein. The Secretary shall
limit such transfer request to the minimum property or
interests necessary to ensure that the property concerned is
developed and used in a manner appropriate for purposes of this
section.
``(4) The Secretary concerned may accept on behalf of the
United States any property or interest to be transferred to the
United States under the agreement.
``(5) For purposes of the acceptance of property or
interests under the agreement, the Secretary concerned may
accept an appraisal or title documents prepared or adopted by a
non-Federal entity as satisfying the applicable requirements of
section 301 of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (42 U.S.C. 4651) or
section 3111 of title 40, if the Secretary concerned finds that
the appraisal or title documents substantially comply with the
requirements.
``(e) Acquisition of Water Rights.--The authority of the
Secretary concerned to enter into an agreement under this
section for the acquisition of real property (or an interest
therein) includes the authority to support the purchase of
water rights from any available source when necessary to
support or protect the mission of a military installation.
``(f) Additional Terms and Conditions.--The Secretary
concerned may require such additional terms and conditions in
an agreement under this section as the Secretary considers
appropriate to protect the interests of the United States.
``(g) Funding.--(1) Except as provided in paragraph (2),
funds authorized to be appropriated for operation and
maintenance of the Army, Navy, Marine Corps, Air Force, or
Defense-wide activities may be used to enter into agreements
under this section.
``(2) In the case of a military installation operated
primarily with funds authorized to be appropriated for
research, development, test, and evaluation, funds authorized
to be appropriated for the Army, Navy, Marine Corps, Air Force,
or Defense-wide activities for research, development, test, and
evaluation may be used to enter into agreements under this
section with respect to the installation.
``(h) Definitions.--In this section:
``(1) The term `Secretary concerned' means the
Secretary of Defense or the Secretary of a military
department.
``(2) The term `State' includes the District of
Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Marianas, and the
territories and possessions of the United States.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2684 the following new item:

``2684a. Agreements to limit encroachments and other constraints on
military training, testing, and operations.''.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL RESOURCE
CONSERVATION PURPOSES.

(a) Conveyance Authority.--(1) Chapter 159 of title 10,
United States Code, is amended by inserting after section 2694
the following new section:

``Sec. 2694a. Conveyance of surplus real property for natural resource
conservation

``(a) Authority to Convey.--The Secretary of a military
department may convey to an eligible entity described in
subsection (b) any surplus real property that--
``(1) is under the administrative control of the
Secretary;
``(2) is suitable and desirable for conservation
purposes;
``(3) has been made available for public benefit
transfer for a sufficient period of time to potential
claimants; and
``(4) is not subject to a pending request for
transfer to another Federal agency or for conveyance to
any other qualified recipient for public benefit
transfer under the real property disposal processes and
authorities under subtitle I of title 40.
``(b) Eligible Entities.--The conveyance of surplus real
property under this section may be made to any of the
following:
``(1) A State or political subdivision of a State.
``(2) A nonprofit organization that exists for the
primary purpose of conservation of natural resources on
real property.
``(c) Revisionary Interest and Other Deed Requirements.--
(1) The deed of conveyance of any surplus real property
conveyed under this section shall require the property to be
used and maintained for the conservation of natural resources
in perpetuity. If the Secretary concerned determines at any
time that the property is not being used or maintained for such
purpose, then, at the option of the Secretary, all or any
portion of the property shall revert to the United States.
``(2) The deed of conveyance may permit the recipient of
the property--
``(A) to convey the property to another eligible
entity, subject to the approval of the Secretary
concerned and subject to the same covenants and terms
and conditions as provided in the deed from the United
States; and
``(B) to conduct incidental revenue-producing
activities on the property that are compatible with the
use of the property for conservation purposes.
``(3) The deed of conveyance may contain such additional
terms, reservations, restrictions, and conditions as the
Secretary concerned considers appropriate to protect the
interests of the United States.
``(d) Release of Covenants.--With the concurrence of the
Secretary of Interior, the Secretary concerned may grant a
release from a covenant included in the deed of conveyance of
real property conveyed under this section, subject to the
condition that the recipient of the property pay the fair
market value, as determined by the Secretary concerned, of the
property at the time of the release of the covenant. The
Secretary concerned may reduce the amount required to be paid
under this subsection to account for the value of the natural
resource conservation benefit that has accrued to the United
States during the period the covenant was in effect, if the
benefit was not taken into account in determining the original
consideration for the conveyance.
``(e) Congressional Notification.--The Secretary concerned
may not approve of the reconveyance of real property under
subsection (c) or grant the release of a covenant under
subsection (d) until the Secretary notifies the appropriate
committees of Congress of the proposed reconveyance or release
and a period of 21 days elapses from the date the notification
is received by the committees.
``(f) Limitations.--The conveyance of real property under
this section shall not be used as a condition of allowing any
defense activity under any Federal, State, or local permitting
or review process. The Secretary concerned may make the
conveyance, with the restrictions specified in subsection (c),
to establish a mitigation bank, but only if the establishment
of the mitigation bank does not occur in order to satisfy any
condition for permitting military activity under a Federal,
State, or local permitting or review process.
``(g) Consideration.--In fixing the consideration for the
conveyance of real property under this section, or in
determining the amount of any reduction of the amount to be
paid for the release of a covenant under subsection (d), the
Secretary concerned shall take into consideration any benefit
that has accrued or may accrue to the United States from the
use of such property for the conservation of natural resources.
``(h) Relation to Other Conveyance Authorities.--(1) The
Secretary concerned may not make a conveyance under this
section of any real property to be disposed of under a base
closure law in a manner that is inconsistent with the
requirements and conditions of the base closure law.
``(2) In the case of real property on Guam, the Secretary
concerned may not make a conveyance under this section unless
the Government of Guam has been first afforded the opportunity
to acquire the real property as authorized by section 1 of
Public Law 106-504 (114 Stat. 2309).
``(i) Definitions.--In this section:
``(1) The term `appropriate committees of Congress'
has the meaning given such term in section 2801 of this
title.
``(2) The term `base closure law' means the
following:
``(A) Section 2687 of this title.
``(B) Title II of the Defense Authorization
Amendments and Base Closure and Realignment Act
of 1988 (10 U.S.C. 2687 note).
``(C) The Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX
of Public Law 101-510; 10 U.S.C. 2687 note).
``(D) Any other similar authority for the
closure or realignment of military
installations that is enacted after the date of
the enactment of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003.
``(3) The term `Secretary concerned' means the
Secretary of a military department.
``(4) The term `State' includes the District of
Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Marianas, and the
territories and possessions of the United States.''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 2694
the following new item:

``2694a. Conveyance of surplus real property for natural resource
conservation.''.

(b) Acceptance of Funds to Cover Administrative Expenses.--
Section 2695(b) of such title is amended by adding at the end
the following new paragraph:
``(5) The conveyance of real property under section
2694a of this title.''.
(c) Agreements With Nonprofit Natural Resource Conservation
Organizations.--Section 2701(d) of such title is amended--
(1) in the subsection heading, by striking
``Agencies'' and inserting ``Entities'';
(2) in paragraph (1)--
(A) by striking ``with any State or local
government agency, or with any Indian tribe,''
and inserting ``any State or local government
agency, any Indian tribe, or any nonprofit
conservation organization''; and
(B) by striking ``the agency'' and
inserting ``the agency, Indian tribe, or
organization''; and
(3) by striking paragraph (4), as redesignated by
section 311(2) of this Act, and inserting the following
new paragraph:
``(4) Definitions.--In this subsection:
``(A) The term `Indian tribe' has the
meaning given such term in section 101(36) of
CERCLA (42 U.S.C. 9601(36)).
``(B) The term `nonprofit conservation
organization' means any non-governmental
nonprofit organization whose primary purpose is
conservation of open space or natural
resources.''.

SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION IN LONG-
TERM FACILITY MAINTENANCE COSTS.

(a) Administrator of Program.--Subsection (a) of section
2814 of the Military Construction Authorization Act for Fiscal
Year 2002 (division B of Public Law 107-107; 115 Stat. 1310; 10
U.S.C. 2809 note) is amended by striking ``Secretary of the
Army'' and inserting ``Secretary of Defense or the Secretary of
a military department''.
(b) Contracts.--Subsection (b) of such section is amended
to read as follows:
``(b) Contracts.--(1) Not more than 12 contracts per
military department may contain requirements referred to in
subsection (a) for the purpose of the demonstration program.
``(2) The demonstration program may only cover contracts
entered into on or after the date of the enactment of the Bob
Stump National Defense Authorization Act for Fiscal Year 2003,
except that the Secretary of the Army shall treat any contract
containing requirements referred to in subsection (a) that was
entered into under the authority in such subsection between
that date and December 28, 2001, as a contract for the purpose
of the demonstration program.''.
(c) Reporting Requirements.--Subsection (d) of such section
is amended by striking ``Secretary of the Army'' and inserting
``Secretary of Defense''.
(d) Funding.--(1) Subsection (f) of such section is amended
by striking ``the Army'' and inserting ``the military
departments or defense-wide''.
(2) The amendment made by paragraph (1) shall not affect
the availability for the purpose of the demonstration program
under section 2814 of the Military Construction Authorization
Act for Fiscal Year 2002, as amended by this section, of any
amounts authorized to be appropriated before the date of the
enactment of this Act for the Army for military construction
that have been obligated for the demonstration program, but not
expended, as of that date.

SEC. 2814. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY
INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT
OR PROVIDE MILITARY FAMILY HOUSING.

(a) 1988 Law.--Section 204(e)(1) of the Defense
Authorization Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note) is amended by
striking the last sentence.
(b) 1990 Law.--Section 2905(f)(1) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) is amended by striking
the last sentence.

Subtitle C--Land Conveyances

PART I--ARMY CONVEYANCES

SEC. 2821. TRANSFER OF JURISDICTION, FORT MCCLELLAN, ALABAMA, TO
ESTABLISH MOUNTAIN LONGLEAF NATIONAL WILDLIFE
REFUGE.

(a) Transfer Required.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of the Army
shall transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of the Interior a parcel of real
property at Fort McClellan, Alabama, consisting of
approximately 7,600 acres, which is described as the
``acquisition area'' in a memorandum of agreement between the
Secretaries numbered 1448-40181-00-K-014.
(b) Establishment and Management of Refuge.--(1) The
Secretary of the Interior shall establish on the real property
transferred under subsection (a) the Mountain Longleaf National
Wildlife Refuge to enhance, manage, and protect the unique
mountain longleaf pine ecosystem on the property.
(2) The Secretary of Interior shall manage the Mountain
Longleaf National Wildlife Refuge in a manner that--
(A) conserves and enhances populations of fish,
wildlife, and plants in the Refuge, including migratory
birds and species that are threatened or endangered,
with particular emphasis on the protection of the
mountain longleaf pine plant ecosystem;
(B) protects and enhances the quality of aquatic
habitat in the Refuge;
(C) provides, in coordination with the Alabama
Department of Conservation and Natural Resources, the
public with recreational opportunities, including
hunting, fishing, wildlife observation, and
photography;
(D) provides opportunities for scientific research
and education on land use and environmental law; and
(E) is consistent with environmental restoration
efforts conducted by the Secretary of the Army on the
Refuge or on lands adjacent to the Refuge.
(c) Environmental Restoration.--(1) The Secretary of the
Army shall continue to be responsible for unexploded ordnance,
discarded military munitions, and munitions constituents on the
real property transferred under subsection (a) and shall
continue to follow a remediation process in accordance with the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.).
(2) The Secretary of the Army shall appropriately factor
the management directives for the Mountain Longleaf National
Wildlife Refuge, as described in subsection (b), into the
remedy selection process for the property transferred under
subsection (a).
(d) Relation to Other Environmental Laws.--Nothing in this
section shall relieve, and no action taken under this section
may relieve, the Secretary of the Army or the Secretary of the
Interior, or any other person from any liability or other
obligation under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. 6901 et seq.),
or any other Federal or State law.
(e) Assistance.--The Secretary of the Army may provide up
to $500,000 from the funds in the Base Realignment and Closure
Account 1990 to the Secretary of Interior to facilitate the
establishment of the Mountain Longleaf National Wildlife Refuge
and to support environmental research at the Refuge during the
first two years of the operation of the Refuge.

SEC. 2822. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER REQUIRED FOR
NATIONAL GUARD PURPOSES.

(a) Conveyance Authorized.--The Secretary of the Army may
convey to an eligible entity described in subsection (b) all
right, title, and interest of the United States in and to any
parcel of real property, including any improvements thereon, in
the State of Alaska described in subsection (c) if the
Secretary determines the conveyance would be in the public
interest.
(b) Eligible Recipients.--The following entities shall be
eligible to receive real property under subsection (a):
(1) The State of Alaska.
(2) A governmental entity in the State of Alaska.
(3) A Native Corporation (as defined in section 3
of the Alaska Native Claims Settlement Act (43 U.S.C.
1602)).
(4) The Metlakatla Indian Community.
(c) Covered Property.--Subsection (a) applies to real
property located in the State of Alaska that--
(1) is under the jurisdiction of the Department of
the Army and, before December 2, 1980, was under such
jurisdiction for the use of the Alaska National Guard;
(2) is located in a unit of the National Wildlife
Refuge System designated in the Alaska National
Interest Lands Conservation Act (Public Law 96-487; 16
U.S.C. 668dd note);
(3) is excess to the needs of the Alaska National
Guard and the Department of Defense; and
(4) the Secretary determines that--
(A) the anticipated cost to the United
States of retaining the property exceeds the
value of such property; or
(B) the condition of the property makes it
unsuitable for retention by the United States.
(d) Consideration.--The conveyance of real property under
this section shall, at the election of the Secretary, be for no
consideration or for consideration in an amount determined by
the Secretary to be appropriate under the circumstances.
(e) Use of Consideration.--If consideration is received for
the conveyance of real property under subsection (a), the
Secretary may use the amounts received, in such amounts as are
provided in appropriations Acts, to pay for--
(1) the cost of a survey described in subsection
(f) with respect to the property;
(2) the cost of carrying out any environmental
assessment, study, or analysis, and any remediation,
that may be required under Federal law, or is
considered appropriate by the Secretary, in connection
with the property or the conveyance of the property;
and
(3) any other costs incurred by the Secretary in
conveying the property.
(f) Description of Property.--The exact acreage and legal
description of any real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
a conveyance of real property under this section as the
Secretary considers appropriate to protect the interests of the
United States.

SEC. 2823. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, KANSAS.

(a) Conveyance Authorized.--The Administrator of General
Services may convey to the Johnson County Park and Recreation
District, Kansas (in this section referred to as the
``District''), all right, title, and interest of the United
States in and to a parcel of real property, including any
improvements thereon, at the Sunflower Army Ammunition Plant in
the State of Kansas consisting of approximately 2,000 acres.
(b) Basis of Conveyance.--The conveyance under this section
shall be made in a manner consistent with section 550(e) of
title 40, United States Code, for the purpose of permitting the
District to use the conveyed property for public recreational
purposes.
(c) Description of Property.--The exact acreage, location,
and legal description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Administrator. The cost of such legal description, survey,
or both shall be borne by the District.
(d) Additional Terms and Conditions.--The Administrator may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Administrator
considers appropriate to protect the interests of the United
States.
(e) Application of Section.--If the Administrator and the
District reach an agreement regarding the conveyance of the
property described in subsection (a) before January 31, 2003,
the authority provided by this section shall not take effect.

SEC. 2824. LAND CONVEYANCES, BLUEGRASS ARMY DEPOT, RICHMOND, KENTUCKY.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to Madison County, Kentucky (in
this section referred to as the ``County''), all right, title,
and interest of the United States in and to the following
parcels of real property, including any improvements thereon,
at the Bluegrass Army Depot, Richmond, Kentucky:
(1) A parcel consisting of approximately 10 acres.
(2) A parcel consisting of approximately 3 acres,
including the building known as Quarters 29.
(b) Conditions of Conveyance.--(1) The Secretary may not
convey the parcel of real property referred to in subsection
(a)(1) unless the County agrees to use the property to
facilitate the construction of a veterans' center on the
property by the State of Kentucky and the Secretary determines
that the State has appropriated adequate funds for the
construction of the veterans' center.
(2) The Secretary may not convey the parcel of real
property referred to in subsection (a)(2) unless the County
agrees to utilize the property for historical preservation and
education purposes.
(c) Reversionary Interest.--(1) At the end of the seven-
year period beginning on the date on which the Secretary makes
the conveyance of the parcel of real property referred to in
subsection (a)(1), if the Secretary determines that a veterans'
center is not in operation on the conveyed real property, then,
at the option of the Secretary, all right, title, and interest
in and to the property, including any improvements thereon,
shall revert to the United States, and the United States shall
have the right of immediate entry onto the property.
(2) If the Secretary determines at any time that the parcel
of real property referred to in subsection (a)(2) has ceased to
be utilized for the purposes specified in subsection (b)(2),
then, at the option of the Secretary, all right, title, and
interest in and to the property shall revert to the United
States, and the United States shall have the right of immediate
entry onto the property.
(3) Any determination of the Secretary under this
subsection shall be made on the record after an opportunity for
a hearing.
(d) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the County to reimburse the Secretary for
the costs incurred by the Secretary to carry out the
conveyances under subsection (a), including survey costs, costs
related to environmental documentation (other than the
environmental baseline survey), and other administrative costs
related to the conveyance.
(2) The Secretary shall require the County to reimburse the
Secretary for any excess costs incurred by the Secretary for
any environmental assessment, study, or analysis, or for any
other excess costs incurred by the Secretary, in connection
with the conveyances, if the excess costs were incurred as a
result of a request by the County. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyances.
(3) Any reimbursement received under this subsection shall
be credited to the fund or account that was used to cover the
costs incurred by the Secretary in carrying out the
conveyances. Amounts so credited shall be merged with amounts
in such fund or account, and shall be available for the same
purposes, and subject to the same conditions and limitations,
as amounts in such fund or account.
(e) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
County.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2825. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the City of Hopkinsville,
Kentucky (in this section referred to as the ``City''), all
right, title, and interest of the United States in and to a
parcel of real property at Fort Campbell, Kentucky, consisting
of approximately 50 acres and containing an abandoned railroad
spur for the purpose of permitting the City to use the property
for storm water management, recreation, transportation, and
other public purposes.
(b) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the City to reimburse the Secretary for
the costs incurred by the Secretary to carry out the conveyance
under subsection (a), including survey costs, costs related to
environmental documentation (other than the environmental
baseline survey), and other administrative costs related to the
conveyance.
(2) The Secretary shall require the City to reimburse the
Secretary for any excess costs incurred by the Secretary for
any environmental assessment, study, or analysis, or for any
other excess costs incurred by the Secretary, in connection
with the conveyance, if the excess costs were incurred as a
result of a request by the City. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance.
(3) Any reimbursement received under this subsection shall
be credited to the fund or account that was used to cover the
costs incurred by the Secretary in carrying out the conveyance.
Amounts so credited shall be merged with amounts in such fund
or account, and shall be available for the same purposes, and
subject to the same conditions and limitations, as amounts in
such fund or account.
(c) Description of Property.--The acreage of the real
property to be conveyed under subsection (a) has been
determined by the Secretary through a legal description
outlining such acreage. No further survey of the property is
required before the conveyance is made.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2826. LAND CONVEYANCE, ARMY RESERVE TRAINING CENTER, BUFFALO,
MINNESOTA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the Buffalo Independent
School District 877 of Buffalo, Minnesota (in this section
referred to as the ``School District''), all right, title, and
interest of the United States in and to a parcel of real
property, including improvements thereon, that is located at
800 8th Street, N.E., in Buffalo, Minnesota, and contains a
former Army Reserve Training Center, which is being used by the
School District as the site of the Phoenix Learning Center.
(b) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the School District to reimburse the
Secretary for the costs incurred by the Secretary to carry out
the conveyance under subsection (a), including survey costs,
costs related to environmental documentation (other than the
environmental baseline survey), and other administrative costs
related to the conveyance.
(2) The Secretary shall require the School District to
reimburse the Secretary for any excess costs incurred by the
Secretary for any environmental assessment, study, or analysis,
or for any other excess costs incurred by the Secretary, in
connection with the conveyance, if the excess costs were
incurred as a result of a request by the School District. In
this paragraph, the term ``excess costs'' means costs in excess
of those costs considered reasonable and necessary by the
Secretary to comply with existing law to make the conveyance.
(3) Any reimbursement received under this subsection shall
be credited to the fund or account that was used to cover the
costs incurred by the Secretary in carrying out the conveyance.
Amounts so credited shall be merged with amounts in such fund
or account, and shall be available for the same purposes, and
subject to the same conditions and limitations, as amounts in
such fund or account.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
School District.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2827. LAND CONVEYANCE, FORT MONMOUTH, NEW JERSEY.

(a) Conveyance Authorized.--The Secretary of the Army may
convey by sale all right, title, and interest of the United
States in and to a parcel of real property, consisting of
approximately 63.95 acres of military family housing known as
Howard Commons, that comprises a portion of Fort Monmouth, New
Jersey.
(b) Competitive Bid Requirement.--The Secretary shall use
competitive procedures for the sale authorized by subsection
(a).
(c) Consideration.--(1) As consideration for the conveyance
authorized by subsection (a), the recipient shall provide the
United States, whether by cash payment, in-kind contribution,
or a combination thereof, an amount that is not less than the
fair market value, as determined by the Secretary, of the
property conveyed under such subsection.
(2) In-kind consideration under paragraph (1) may include
the construction of replacement military family housing or the
rehabilitation of existing military family housing at Fort
Monmouth, New Jersey, as agreed upon by the Secretary.
(3) If the value of in-kind consideration to be provided
under this subsection exceeds $1,500,000, the Secretary may not
accept such consideration until after the end of the 21-day
period beginning on the date the Secretary notifies the
congressional defense committees of the decision of the
Secretary to accept in-kind consideration in excess of that
amount.
(4) Any proceeds received by the Secretary under this
subsection and not used to construct or rehabilitate such
military family housing shall be deposited in the special
account in the Treasury established pursuant to section 572(b)
of title 40, United States Code.
(d) Effect of Transfer of Administrative Jurisdiction.--If
the real property authorized to be conveyed by this section is
transferred to the administrative jurisdiction of the
Administrator of General Services, the Administrator, rather
than the Secretary, shall have the authority to convey such
property under this section.
(e) Description of Parcel.--The exact acreage and legal
description of the parcel to be conveyed under subsection (a)
shall be determined by a survey that is satisfactory to the
Secretary. The cost of the survey shall be borne by the
recipient of the parcel.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2828. LAND CONVEYANCE, FORT BLISS, TEXAS.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the County of El Paso, Texas
(in this section referred to as the ``County''), all right,
title, and interest of the United States in and to a parcel of
real property, including improvements thereon, consisting of
approximately 44 acres at Fort Bliss, Texas, for the purpose of
facilitating the construction by the State of Texas of a
nursing home for veterans of the Armed Forces.
(b) Reversionary Interest.--(1) At the end of the seven-
year period beginning on the date on which the Secretary makes
the conveyance under subsection (a), if the Secretary
determines that a nursing home for veterans is not in operation
on the conveyed real property, then, at the option of the
Secretary--
(A) all right, title, and interest in and to the
property, including any improvements thereon, shall
revert to the United States; and
(B) the United States shall have the right of
immediate entry onto the property.
(2) Any determination of the Secretary under this
subsection shall be made on the record after an opportunity for
a hearing.
(c) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the County to reimburse the Secretary for
the costs incurred by the Secretary to carry out the conveyance
under subsection (a), including survey costs, costs related to
environmental documentation (other than the environmental
baseline survey), and other administrative costs related to the
conveyance.
(2) The Secretary shall require the County to reimburse the
Secretary for any excess costs incurred by the Secretary for
any environmental assessment, study, or analysis, or for any
other excess costs incurred by the Secretary, in connection
with the conveyance, if the excess costs were incurred as a
result of a request by the County. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance.
(3) Any reimbursement received under this subsection shall
be credited to the fund or account that was used to cover the
costs incurred by the Secretary in carrying out the conveyance.
Amounts so credited shall be merged with amounts in such fund
or account, and shall be available for the same purposes, and
subject to the same conditions and limitations, as amounts in
such fund or account.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
County.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the Veterans Land Board of
the State of Texas (in this section referred to as the
``Board'') all right, title, and interest of the United States
in and to a parcel of real property, including any improvements
thereon, consisting of approximately 174 acres at Fort Hood,
Texas, for the purpose of permitting the Board to establish a
State-run cemetery for veterans of the Armed Forces.
(b) Reversionary Interest.--(1) At the end of the seven-
year period beginning on the date on which the Secretary makes
the conveyance under subsection (a), if the Secretary
determines that a cemetery for veterans is not in operation on
the conveyed real property, then, at the option of the
Secretary--
(A) all right, title, and interest in and to the
property, including any improvements thereon, shall
revert to the United States; and
(B) the United States shall have the right of
immediate entry onto the property.
(2) Any determination of the Secretary under this
subsection shall be made on the record after an opportunity for
a hearing.
(c) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the Board to reimburse the Secretary for
the costs incurred by the Secretary to carry out the conveyance
under subsection (a), including survey costs, costs related to
environmental documentation (other than the environmental
baseline survey), and other administrative costs related to the
conveyance.
(2) The Secretary shall require the Board to reimburse the
Secretary for any excess costs incurred by the Secretary for
any environmental assessment, study, or analysis, or for any
other excess costs incurred by the Secretary, in connection
with the conveyance, if the excess costs were incurred as a
result of a request by the Board. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance.
(3) Any reimbursement received under this subsection shall
be credited to the fund or account that was used to cover the
costs incurred by the Secretary in carrying out the conveyance.
Amounts so credited shall be merged with amounts in such fund
or account, and shall be available for the same purposes, and
subject to the same conditions and limitations, as amounts in
such fund or account.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
Board.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT BELVOIR,
VIRGINIA.

(a) Conveyance to Fairfax County, Virginia, Authorized.--
(1) The Secretary of the Army may convey, without
consideration, to Fairfax County, Virginia, all right, title,
and interest of the United States in and to a parcel of real
property, including any improvements thereon, consisting of
approximately 135 acres, located in the northwest portion of
the Engineer Proving Ground at Fort Belvoir, Virginia, in order
to permit the County to use such property for park and
recreational purposes.
(2) The parcel of real property authorized to be conveyed
by paragraph (1) is generally described as that portion of the
Engineer Proving Ground located west of Accotink Creek, east of
the Fairfax County Parkway, and north of Cissna Road to the
northern boundary, but excludes a parcel of land consisting of
approximately 15 acres located in the southeast corner of such
portion of the Engineer Proving Ground.
(3) The land excluded under paragraph (2) from the parcel
of real property authorized to be conveyed by paragraph (1)
shall be reserved for an access road to be constructed in the
future.
(b) Conveyance of Balance of Property Authorized.--The
Secretary may convey to any competitively selected grantee all
right, title, and interest of the United States in and to the
real property, including any improvements thereon, at the
Engineering Proving Ground not conveyed under the authority in
subsection (a).
(c) Consideration.--(1) As consideration for the conveyance
authorized by subsection (b), the grantee shall provide the
United States, whether by cash payment, in-kind contribution,
or a combination thereof, an amount that is not less than the
fair market value, as determined by the Secretary, of the
property conveyed under such subsection.
(2) In-kind consideration under paragraph (1) may include
the maintenance, improvement, alteration, repair, remodeling,
restoration (including environmental restoration), or
construction of facilities for the Department of the Army at
Fort Belvoir or at any other site or sites designated by the
Secretary.
(3) If in-kind consideration under paragraph (1) includes
the construction of facilities, the grantee shall also convey
to the United States--
(A) title to such facilities, free of all liens and
other encumbrances; and
(B) if the United States does not have fee simple
title to the land underlying such facilities, convey to
the United States all right, title, and interest in and
to such lands not held by the United States.
(4) If the value of in-kind consideration to be provided
under paragraph (1) exceeds $1,500,000, the Secretary may not
accept such consideration until after the end of the 21-day
period beginning on the date the Secretary notifies the
congressional defense committees of the decision of the
Secretary to accept in-kind consideration in excess of that
amount.
(5) The Secretary shall deposit any cash received as
consideration under this subsection in the special account
established pursuant to section 572(b) of title 40, United
States Code.
(d) Effect of Transfer of Administrative Jurisdiction.--If
all or a portion of the real property authorized to be conveyed
by this section is transferred to the administrative
jurisdiction of the Administrator of General Services, the
Administrator, rather than the Secretary of the Army, shall
have the authority to convey such property under this section.
(e) Repeal of Superseded Authority.--Section 2821 of the
Military Construction Authorization Act for Fiscal Years 1990
and 1991 (division B of Public Law 101-189; 103 Stat. 1658), as
amended by section 2854 of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of Public
Law 104-106; 110 Stat. 568), is repealed.
(f) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsections (a) and (b) shall be determined by surveys
satisfactory to the Secretary. The cost of each such survey
shall be borne by the grantee.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under subsections (a) and (b) as the Secretary
considers appropriate to protect the interests of the United
States.

PART II--NAVY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, MARINE CORPS AIR STATION, MIRAMAR, SAN
DIEGO, CALIFORNIA.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey to the ENPEX Corporation, Incorporated (in this section
referred to as the ``Corporation''), all right, title, and
interest of the United States in and to a parcel of real
property, including any improvements thereon, at Marine Corps
Air Station, Miramar, San Diego, California, consisting of
approximately 60 acres and appurtenant easements and any other
necessary interests in real property for the purpose of
permitting the Corporation to use the property for the
production of electric power and related ancillary activities.
(b) Consideration.--(1) As consideration for the conveyance
under subsection (a), the Corporation shall--
(A) convey to the United States all right, title,
and interest of the Corporation in and to a parcel of
real property in the San Diego area that is suitable
for military family housing, as determined by the
Secretary; and
(B) if the parcel conveyed under subparagraph (A)
does not contain housing units suitable for use as
military family housing, design and construct such
military family housing units and supporting facilities
as the Secretary considers appropriate.
(2) The total combined value of the real property and
military family housing conveyed by the Corporation under this
subsection shall be at least equal to the fair market value of
the real property conveyed to the Secretary under subsection
(a), including any severance costs arising from any diminution
of the value or utility of other property at Marine Corps Air
Station, Miramar, attributable to the prospective future use of
the property conveyed under subsection (a).
(3) The Secretary shall determine the fair market value of
the real property to be conveyed under subsection (a) and the
fair market value of the consideration to be provided under
this subsection. Such determinations shall be final.
(c) Reversionary Interest.--(1) Subject to paragraph (2),
if the Secretary determines at any time that the property
conveyed under subsection (a) is not being used in accordance
with the purpose of the conveyance specified in such
subsection, all right, title, and interest in and to the
property, including any improvements thereon, shall revert, at
the option of the Secretary, to the United States, and the
United States shall have the right of immediate entry onto the
property. Any determination of the Secretary under this
subsection shall be made on the record after an opportunity for
a hearing.
(2) If Marine Corps Air Station, Miramar, is no longer used
as a Federal aviation facility, paragraph (1) shall no longer
apply, and the Secretary shall release, without consideration,
the reversionary interest retained by the United States under
such paragraph.
(d) Administrative Expenses.--(1) The Corporation shall
make funds available to the Secretary to cover costs to be
incurred by the Secretary, or reimburse the Secretary for costs
incurred, to carry out the conveyance under subsection (a),
including survey costs, costs related to environmental
documentation, and other administrative costs related to the
conveyance. This paragraph does not apply to costs associated
with the removal of explosive ordnance from the parcel and
environmental remediation of the parcel.
(2) Section 2695(c) of title 10 United States Code, shall
apply to any amount received under paragraph (1). If the
amounts received in advance under such paragraph exceed the
costs actually incurred by the Secretary, the Secretary shall
refund the excess amount to the Corporation.
(e) Descriptions of Property.--The exact acreage and legal
descriptions of the real property to be conveyed by the
Secretary under subsection (a) and the property to be conveyed
by the Corporation under subsection (b) shall be determined by
a survey satisfactory to the Secretary.
(f) Exemptions.--Section 2696 of title 10, United States
Code, does not apply to the conveyance authorized by subsection
(a), and the authority to make the conveyance shall not be
considered to render the property excess or underutilized.
(g) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances authorized by this section as the Secretary
considers appropriate to protect the interests of the United
States.

SEC. 2832. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND CONVEYANCE,
NAVAL SECURITY GROUP ACTIVITY, WINTER HARBOR,
MAINE.

(a) Modification of Conveyance Authority for Corea and
Winter Harbor Properties.--Subsection (b) of section 2845 of
the Military Construction Authorization Act for Fiscal Year
2002 (division B of Public Law 107-107; 115 Stat. 1319) is
amended to read as follows:
``(b) Conveyance and Transfer of Corea and Winter Harbor
Properties Authorized.--(1) The Secretary of the Navy may
convey, without consideration, to the State of Maine, any
political subdivision of the State of Maine, or any tax-
supported agency in the State of Maine, all right, title, and
interest of the United States in and to parcels of real
property, including any improvements thereon and appurtenances
thereto, comprising the former facilities of the Naval Security
Group Activity, Winter Harbor, Maine, as follows:
``(A) The parcel consisting of approximately 50
acres known as the Corea Operations Site.
``(B) Three parcels consisting of approximately 23
acres and comprising family housing facilities.
``(2) The Secretary of the Navy may transfer to the
administrative jurisdiction of the Secretary of the Interior a
parcel of real property consisting of approximately 404 acres
at the former Naval Security Group Activity, which is the
balance of the real property comprising the Corea Operations
Site. The Secretary of the Interior shall administer the
property transferred under this paragraph as part of the
National Wildlife Refuge System.''.
(b) Exemption of Modified Conveyances from Federal
Screening Requirement.--Such section is further amended--
(1) by redesignating subsections (g) and (h) as
subsections (h) and (i), respectively; and
(2) by inserting after subsection (f) the following
new subsection (g):
``(g) Exemption From Federal Screening.--Any conveyance
authorized by subsection (b)(1) is exempt from the requirement
to screen the property concerned for further Federal use
pursuant to section 2696 of title 10, United States Code.''.
(c) Conforming Amendments.--Subsections (c), (d), (e), (f),
(h) (as redesignated), and (i) (as redesignated) of such
section are amended by striking ``subsection (b)'' each place
it appears and inserting ``subsection (b)(1)''.

SEC. 2833. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, MASSACHUSETTS.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey, without consideration, to the City of Chicopee,
Massachusetts (in this section referred to as the ``City''),
all right, title, and interest of the United States in and to a
parcel of real property, including 133 housing units and other
improvements thereon, consisting of approximately 30.38 acres
located at Westover Air Reserve Base in Chicopee,
Massachusetts, for the purpose of permitting the City to use
the property for economic development and other public
purposes.
(b) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the City to reimburse the Secretary for
the costs incurred by the Secretary to carry out the conveyance
under subsection (a), including survey costs, costs related to
environmental documentation (other than the environmental
baseline survey), and other administrative costs related to the
conveyance.
(2) The Secretary shall require the City to reimburse the
Secretary for any excess costs incurred by the Secretary for
any environmental assessment, study, or analysis, or for any
other excess costs incurred by the Secretary, in connection
with the conveyance, if the excess costs were incurred as a
result of a request by the City. In this paragraph, the term
``excess costs'' means costs in excess of those costs
considered reasonable and necessary by the Secretary to comply
with existing law to make the conveyance.
(3) Any reimbursement received under this subsection shall
be credited to the fund or account that was used to cover the
costs incurred by the Secretary in carrying out the conveyance.
Amounts so credited shall be merged with amounts in such fund
or account, and shall be available for the same purposes, and
subject to the same conditions and limitations, as amounts in
such fund or account.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2834. LAND CONVEYANCE, NAVAL STATION, NEWPORT, RHODE ISLAND.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey to the State of Rhode Island, or any political
subdivision thereof, any or all right, title, and interest of
the United States in and to a parcel of real property, together
with improvements thereon, consisting of approximately 34 acres
located in Melville, Rhode Island, and known as the Melville
Marina site.
(b) Consideration.--(1) As consideration for the conveyance
of real property under subsection (a), the conveyee shall pay
the United States an amount equal to the fair market value of
the real property, as determined by the Secretary based on an
appraisal of the real property acceptable to the Secretary.
(2) The consideration received under paragraph (1) shall be
deposited in the account established pursuant to section 572(b)
of title 40, United States Code, and shall be available as
provided for in that section.
(c) Reimbursement for Costs of Conveyance.--(1) The
Secretary may require the conveyee of the real property under
subsection (a) to reimburse the Secretary for any costs
incurred by the Secretary in carrying out the conveyance.
(2) Any reimbursement for costs that is received under
paragraph (1) shall be credited to the fund or account
providing funds for such costs. Amounts so credited shall be
merged with amounts in such fund or account, and shall be
available for the same purposes, and subject to the same
conditions and limitations, as amounts in such fund or account.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2835. LAND EXCHANGE AND BOUNDARY ADJUSTMENTS, MARINE CORPS BASE,
QUANTICO, AND PRINCE WILLIAM FOREST PARK, VIRGINIA.

(a) Land Exchange.--Administrative jurisdiction over
certain lands at Prince William Forest Park, Virginia, and at
the Marine Corps Base, Quantico, Virginia, shall be adjusted
through the following actions:
(1) The Secretary of the Navy shall transfer,
without reimbursement, to the administrative
jurisdiction of the Secretary of the Interior
approximately 352 acres of land, depicted as ``Lands
Transferred from Department of the Navy to Department
of the Interior'' on the map entitled ``Boundary
Adjustments Between Prince William Forest Park and
Marine Corps Base, Quantico'', numbered 860/80283, and
dated May 1, 2002.
(2) The Secretary of the Interior shall transfer,
without reimbursement, to the administrative
jurisdiction of the Secretary of the Navy approximately
3,398 acres of land, depicted as ``Lands Transferred
from Department of the Interior to Department of the
Navy'' on the map described in paragraph (1).
(b) Retention of Certain Land.--The Secretary of the
Interior shall continue to administer approximately 1,346 acres
of land, depicted as ``Lands Retained by Department of the
Interior'' on the map described in subsection (a)(1). Effective
on the date of the enactment of this Act, the special use
permit dated March 16, 1972, which provides for the use of part
of this land by the Marine Corps, shall no longer be in effect.
(c) Subsequent Disposal of Land.--(1) If any of the land
described in subsection (a)(1) or (b) is determined to be
excess to the needs of the Department of the Interior, the
Secretary of the Interior shall offer to transfer, without
reimbursement, administrative jurisdiction over the land to the
Secretary of the Navy.
(2) If any of the land described in subsection (a)(2) is
determined to be excess to the needs of the Department of the
Navy, the Secretary of the Navy shall offer to transfer,
without reimbursement, administrative jurisdiction over the
land to the Secretary of the Interior.
(3) If an offer made under this subsection is not accepted
within 90 days, the land covered by the offer may be disposed
of in accordance with the laws and regulations governing the
disposal of excess property.
(d) Boundary Modification and Administration.--(1) The
boundaries of Prince William Forest Park and the Marine Corps
Base, Quantico, shall be modified to reflect the land exchanges
or disposals made under this section.
(2) Land transferred to the Secretary of the Interior under
subsection (a)(1) or retained under subsection (b) shall be
administered as part of Prince William Forest Park in
accordance with applicable laws and regulations.
(e) Availability of Map.--The map described in subsection
(a)(1) shall be on file and available for public inspection in
the appropriate offices of the National Park Service,
Department of the Interior.
(f) Conforming Amendments.--The Act of June 22, 1948
(Chapter 596; 62 Stat. 571), is amended--
(1) by striking the first section and inserting the
following new section:

``SECTION 1. PRINCE WILLIAM FOREST PARK, VIRGINIA.

``Chopawamsic Park, which was established in 1933 as
Chopawamsic Recreational Demonstration Area, shall be known as
`Prince William Forest Park'.'';
(2) in section 2--
(A) by striking ``That all'' and inserting
``All''; and
(B) by striking ``the Chopawamsic Park''
and inserting ``Prince William Forest Park'';
and
(3) in section 3--
(A) by striking ``That the Secretary of the
Interior and the Secretary of the Navy be, and
they are hereby'' and inserting ``The Secretary
of the Interior is''; and
(B) by striking ``the Chopawamsic Park''
both places it appears and inserting ``Prince
William Forest Park''.

PART III--AIR FORCE CONVEYANCES

SEC. 2841. MODIFICATION OF LAND CONVEYANCE, LOS ANGELES AIR FORCE BASE,
CALIFORNIA.

Section 2861(c) of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by
Public Law 106-398; 114 Stat. 1654A-433) is amended in the
first sentence by striking ``10 years'' and inserting ``30
years''.

SEC. 2842. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

(a) Exchange Authorized.--For the purpose of facilitating
the acquisition of real property suitable for the construction
of military family housing for Buckley Air Force Base,
Colorado, the Secretary of the Air Force may convey to the
State of Colorado (in this section referred to as the
``State'') all right, title, and interest of the United States
in and to a parcel of real property, including improvements
thereon, consisting of all or part of the Watkins
Communications Site in Arapahoe County, Colorado.
(b) Consideration.--(1) As consideration for the conveyance
authorized by subsection (a) the State shall convey to the
United States all right, title, and interest of the State in
and to a parcel of real property, including improvements
thereon, consisting of approximately 41 acres that is owned by
the State and is contiguous to Buckley Air Force Base,
Colorado.
(2) The Secretary shall have jurisdiction over the real
property conveyed under paragraph (1).
(3) Upon conveyance to the United States under paragraph
(1), the real property conveyed under that paragraph is
withdrawn from all forms of appropriation under the general
land laws, including the mining laws and mineral and geothermal
leasing laws.
(c) Description of Property.--The exact acreage and legal
description of the parcels of real property to be conveyed
under this section shall be determined by surveys satisfactory
to the Secretary.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2843. LAND CONVEYANCES, WENDOVER AIR FORCE BASE AUXILIARY FIELD,
NEVADA.

(a) Conveyances Authorized to West Wendover, Nevada.--(1)
The Secretary of the Interior may convey, without
consideration, to the City of West Wendover, Nevada, all right,
title, and interest of the United States in and to the
following:
(A) The lands at Wendover Air Force Base Auxiliary
Field, Nevada, identified in Easement No. AFMC-HL-2-00-
334 that are determined by the Secretary of the Air
Force to be no longer required.
(B) The lands at Wendover Air Force Base Auxiliary
Field identified for disposition on the map entitled
``West Wendover, Nevada-Excess'', dated January 5,
2001, that are determined by the Secretary of the Air
Force to be no longer required.
(2) The purposes of the conveyances under this subsection
are--
(A) to permit the establishment and maintenance of
runway protection zones; and
(B) to provide for the development of an industrial
park and related infrastructure.
(3) The map referred to in paragraph (1)(B) shall be on
file and available for public inspection in the offices of the
Director of the Bureau of Land Management and the Elko District
Office of the Bureau of Land Management.
(b) Conveyance Authorized to Tooele County, Utah.--(1) The
Secretary of the Interior may convey, without consideration, to
Tooele County, Utah, all right, title, and interest of the
United States in and to the lands at Wendover Air Force Base
Auxiliary Field identified in Easement No. AFMC-HL-2-00-318
that are determined by the Secretary of the Air Force to be no
longer required.
(2) The purpose of the conveyance under this subsection is
to permit the establishment and maintenance of runway
protection zones and an aircraft accident potential protection
zone as necessitated by continued military aircraft operations
at the Utah Test and Training Range.
(c) Phased Conveyances.--The land conveyances authorized by
subsections (a) and (b) may be conducted in phases. To the
extent practicable, the first phase of the conveyances should
involve at least 3,000 acres.
(d) Management of Conveyed Lands.--The lands conveyed under
subsections (a) and (b) shall be managed by the City of West
Wendover, Nevada, City of Wendover, Utah, Tooele County, Utah,
and Elko County, Nevada--
(1) in accordance with the provisions of an
Interlocal Memorandum of Agreement entered into between
the Cities of West Wendover, Nevada, and Wendover,
Utah, Tooele County, Utah, and Elko County, Nevada,
providing for the coordinated management and
development of the lands for the economic benefit of
both communities; and
(2) in a manner that is consistent with such
provisions of the easements referred to subsections (a)
and (b) that, as jointly determined by the Secretary of
the Air Force and Secretary of the Interior, remain
applicable and relevant to the operation and management
of the lands following conveyance and are consistent
with the provisions of this section.
(e) Additional Terms and Conditions.--The Secretary of the
Air Force and the Secretary of the Interior may jointly require
such additional terms and conditions in connection with the
conveyances authorized by subsections (a) and (b) as the
Secretaries consider appropriate to protect the interests of
the United States.

Subtitle D--Other Matters

SEC. 2851. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, VIRGINIA.

(a) Modification of Authority for Transfer From Navy
Annex.--Section 2881 of the Military Construction Authorization
Act for Fiscal Year 2000 (113 Stat. 879) is amended--
(1) in subsection (b)(2), as amended by section
2863(f) of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107;
115 Stat. 1332), by striking ``as a site for--'' and
all that follows and inserting ``as a site for such
other memorials or museums that the Secretary considers
compatible with Arlington National Cemetery and the Air
Force Memorial.''; and
(2) in subsection (d)--
(A) in paragraph (2), by striking ``the
recommendation (if any) of the Commission on
the National Military Museum to use a portion
of the Navy Annex property as the site for the
National Military Museum'' and inserting ``the
use of the acres reserved under subsection
(b)(2) for a memorial or museum''; and
(B) in paragraph (4), by striking ``the
date on which the Commission on the National
Military Museum submits to Congress its report
under section 2903'' and inserting ``the date
of the enactment of the Bob Stump National
Defense Authorization Act for Fiscal Year
2003''.
(b) Construction of Amendments.--The amendments made by
subsection (a) may not be construed to delay the establishment
of the United States Air Force Memorial authorized by section
2863 of the Military Construction Authorization Act for Fiscal
Year 2002 (division B of Public Law 107-107; 115 Stat. 1330).

SEC. 2852. SALE OF EXCESS TREATED WATER AND WASTEWATER TREATMENT
CAPACITY, MARINE CORPS BASE, CAMP LEJEUNE, NORTH
CAROLINA.

(a) Sale Authorized.--The Secretary of the Navy may provide
to Onslow County, North Carolina, or any authority or political
subdivision organized under the laws of North Carolina to
provide public water or sewage services in Onslow County (in
this section referred to as the ``County''), treated water and
wastewater treatment services from facilities at Marine Corps
Base, Camp Lejeune, North Carolina, if the Secretary determines
that the provision of these utility services is in the public
interest and will not interfere with current or future
operations at Camp Lejeune.
(b) Inapplicability of Certain Requirements.--Section 2686
of title 10, United States Code, shall not apply to the
provision of public water or sewage services authorized by
subsection (a).
(c) Consideration.--As consideration for the receipt of
public water or sewage services under subsection (a), the
County shall pay to the Secretary an amount (in cash or in
kind) equal to the fair market value of the services. Amounts
received in cash shall be credited to the base operation and
maintenance accounts of Camp Lejeune.
(d) Expansion.--The Secretary may make minor expansions and
extensions and permit connections to the public water or sewage
systems of the County in order to furnish the services
authorized under subsection (a). The Secretary shall restrict
the provision of services to the County to those areas in the
County where residential development would be compatible with
current and future operations at Camp Lejeune.
(e) Administrative Expenses.--(1) The Secretary may require
the County to reimburse the Secretary for the costs incurred by
the Secretary to provide public water or sewage services to the
County under subsection (a).
(2) Section 2695(c) of title 10 United States Code, shall
apply to any amount received under this subsection.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the provision of public water or sewage services under this
section as the Secretary considers appropriate to protect the
interests of the United States.

SEC. 2853. CONVEYANCE OF REAL PROPERTY, ADAK NAVAL COMPLEX, ALASKA, AND
RELATED LAND CONVEYANCES.

Section 6 of the Act entitled ``An Act to ratify an
agreement between The Aleut Corporation and the United States
of America to exchange land rights received under the Alaska
Native Claims Settlement Act for certain land interests on Adak
Island, and for other purposes.'', approved October 11, 2002
(Public Law 107-239), is amended by adding at the end the
following new subsection:
``(f) For purposes of section 21(c) of the Alaska Native
Claims Settlement Act (43 U.S.C. 1620(c)), all property
received by the Aleut Corporation under this Act shall be given
a tax basis equal to fair value on the date of the transfer.
Fair value shall be determined by replacement cost
appraisal.''.

SEC. 2854. SPECIAL REQUIREMENT FOR ADDING MILITARY INSTALLATION TO
CLOSURE LIST.

Section 2914(d) of the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note), as added by section 3003 of the Military
Construction Authorization Act for Fiscal Year 2002 (division B
of Public Law 107-107; 155 Stat, 1346), is amended--
(1) by redesignating paragraph (5) as paragraph
(6); and
(2) by inserting after paragraph (4) the following
new paragraph (5):
``(5) Site visit.--In the report required under
section 2903(d)(2)(A) that is to be transmitted under
paragraph (1), the Commission may not recommend the
closure of a military installation not recommended for
closure by the Secretary under subsection (a) unless at
least two members of the Commission visit the
installation before the date of the transmittal of the
report.''.

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

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

Subtitle B--Program Authorizations, Restrictions, and Limitations

Subtitle C--Proliferation Matters

Subtitle D--Other Matters

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

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

Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) Authorization of Appropriations.--Funds are hereby
authorized to be appropriated to the Department of Energy for
fiscal year 2003 for the activities of the National Nuclear
Security Administration in carrying out programs necessary for
national security in the amount of $8,038,490,000, to be
allocated as follows:
(1) For weapons activities, $5,901,641,000.
(2) For defense nuclear nonproliferation
activities, $1,104,130,000.
(3) For naval reactors, $706,790,000.
(4) For the Office of the Administrator for Nuclear
Security, $325,929,000.
(b) Authorization of New Plant Projects.--From funds
referred to in subsection (a) that are available for carrying
out plant projects, the Secretary of Energy may carry out new
plant projects as follows:
(1) For weapons activities, the following new plant
projects:
Project 03-D-101, Sandia underground
reactor facility (SURF), Sandia National
Laboratories, Albuquerque, New Mexico,
$2,000,000.
Project 03-D-103, project engineering and
design, various locations, $17,039,000.
Project 03-D-121, gas transfer capacity
expansion, Kansas City Plant, Kansas City,
Missouri, $4,000,000.
Project 03-D-122, prototype purification
facility, Y-12 plant, Oak Ridge, Tennessee,
$20,800,000.
Project 03-D-123, special nuclear materials
requalification, Pantex plant, Amarillo, Texas,
$3,000,000.
(2) For naval reactors, the following new plant
project:
Project 03-D-201, cleanroom technology
facility, Bettis Atomic Power Laboratory, West
Mifflin, Pennsylvania, $7,200,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

(a) Authorization of Appropriations.--Funds are hereby
authorized to be appropriated to the Department of Energy for
fiscal year 2003 for environmental management activities in
carrying out programs necessary for national security in the
amount of $6,759,846,000, to be allocated as follows:
(1) For defense environmental restoration and waste
management, $4,510,133,000.
(2) For defense environmental management cleanup
reform in carrying out environmental restoration and
waste management activities necessary for national
security programs, $982,000,000.
(3) For defense facilities closure projects,
$1,109,314,000.
(4) For defense environmental management
privatization, $158,399,000.
(b) Authorization of New Plant Projects.--From funds
referred to in subsection (a) that are available for carrying
out plant projects, the Secretary of Energy may carry out new
plant projects as follows:
(1) For environmental restoration and waste
management activities, the following new plant project:
Project 03-D-403, immobilized high-level
waste interim storage facility, Richland,
Washington, $6,363,000.
(2) For defense environmental management cleanup
reform, the following new plant project:
Project 03-D-414, project engineering and
design, various locations, $8,800,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2003 for other defense
activities in carrying out programs necessary for national
security in the amount of $462,664,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 2003 for defense nuclear
waste disposal for payment to the Nuclear Waste Fund
established in section 302(c) of the Nuclear Waste Policy Act
of 1982 (42 U.S.C. 10222(c)) in the amount of $315,000,000.

Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3141. ANNUAL ASSESSMENTS AND REPORTS TO THE PRESIDENT AND CONGRESS
REGARDING THE CONDITION OF THE UNITED STATES
NUCLEAR WEAPONS STOCKPILE.

(a) Annual Assessments Required.--For each nuclear weapon
type in the stockpile of the United States, each official
specified in subsection (b) on an annual basis shall, to the
extent such official is directly responsible for the safety,
reliability, performance, or military effectiveness of that
nuclear weapon type, complete an assessment of the safety,
reliability, performance, or military effectiveness (as the
case may be) of that nuclear weapon type.
(b) Covered Officials.--The officials referred to in
subsection (a) are the following:
(1) The head of each national security laboratory.
(2) The commander of the United States Strategic
Command.
(c) Use of Teams of Experts for Assessments.--The head of
each national security laboratory shall establish and use one
or more teams of experts, known as ``red teams'', to assist in
the assessments required by subsection (a). Each such team
shall include experts from both of the other national security
laboratories. Each such team for a national security laboratory
shall--
(1) review the matters covered by the assessments
under subsection (a) performed by the head of that
laboratory;
(2) subject such matters to challenge; and
(3) submit the results of such review and
challenge, together with the findings and
recommendations of such team with respect to such
review and challenge, to the head of that laboratory.
(d) Report on Assessments.--Not later than December 1 of
each year, each official specified in subsection (b) shall
submit to the Secretary concerned, and to the Nuclear Weapons
Council, a report on the assessments that such official was
required by subsection (a) to complete. The report shall
include the following:
(1) The results of each such assessment.
(2)(A) Such official's determination as to whether
or not one or more underground nuclear tests are
necessary to resolve any issues identified in the
assessments and, if so--
(i) an identification of the specific
underground nuclear tests that are necessary to
resolve such issues; and
(ii) a discussion of why options other than
an underground nuclear test are not available
or would not resolve such issues.
(B) An identification of the specific underground
nuclear tests which, while not necessary, might have
value in resolving any such issues and a discussion of
the anticipated value of conducting such tests.
(C) Such official's determination as to the
readiness of the United States to conduct the
underground nuclear tests identified under
subparagraphs (A)(i) and (B), if directed by the
President to do so.
(3) In the case of a report submitted by the head
of a national security laboratory--
(A) a concise statement regarding the
adequacy of the science-based tools and methods
being used to determine the matters covered by
the assessments;
(B) a concise statement regarding the
adequacy of the tools and methods employed by
the manufacturing infrastructure required by
section 3137 of the National Defense
Authorization Act for Fiscal Year 1996 (42
U.S.C. 2121 note) to identify and fix any
inadequacy with respect to the matters covered
by the assessments; and
(C) a concise summary of the findings and
recommendations of any teams under subsection
(c) that relate to the assessments, together
with a discussion of those findings and
recommendations.
(4) In the case of a report submitted by the
Commander of the United States Strategic Command, a
discussion of the relative merits of other nuclear
weapon types (if any), or compensatory measures (if
any) that could be taken, that could enable
accomplishment of the missions of the nuclear weapon
types to which the assessments relate, should such
assessments identify any deficiency with respect to
such nuclear weapon types.
(5) An identification and discussion of any matter
having an adverse effect on the capability of the
official submitting the report to accurately determine
the matters covered by the assessments.
(e) Submittals to the President and Congress.--(1) Not
later than March 1 of each year, the Secretary of Defense and
the Secretary of Energy shall submit to the President--
(A) each report, without change, submitted to
either Secretary under subsection (d) during the
preceding year;
(B) any comments that the Secretaries individually
or jointly consider appropriate with respect to each
such report;
(C) the conclusions that the Secretaries
individually or jointly reach as to the safety,
reliability, performance, and military effectiveness of
the nuclear weapons stockpile of the United States; and
(D) any other information that the Secretaries
individually or jointly consider appropriate.
(2) Not later than March 15 of each year, the President
shall forward to Congress the matters received by the President
under paragraph (1) for that year, together with any comments
the President considers appropriate.
(f) Classified Form.--Each submittal under subsection (e)
shall be in classified form only, with the classification level
required for each portion of such submittal marked
appropriately.
(g) Definitions.--In this section:
(1) The term ``national security laboratory'' has
the meaning given such term in section 3281 of the
National Nuclear Security Administration Act (50 U.S.C.
2471).
(2) The term ``Secretary concerned'' means--
(A) the Secretary of Energy, with respect
to matters concerning the Department of Energy;
and
(B) the Secretary of Defense, with respect
to matters concerning the Department of
Defense.
(h) First Submissions.--(1) The first submissions made
under subsection (d) shall be the submissions required to be
made in 2003.
(2) The first submissions made under subsection (e) shall
be the submissions required to be made in 2004.

SEC. 3142. PLANS FOR ACHIEVING ENHANCED READINESS POSTURE FOR
RESUMPTION BY THE UNITED STATES OF UNDERGROUND
NUCLEAR WEAPONS TESTS.

(a) Plans Required.--The Secretary of Energy, in
consultation with the Administrator for Nuclear Security, shall
prepare plans for achieving, not later than one year after the
date on which the plans are submitted under subsection (c),
readiness postures of six months, 12 months, 18 months, and 24
months for resumption by the United States of underground
nuclear weapons tests.
(b) Readiness Posture.--For purposes of this section, a
readiness posture of a specified number of months for
resumption by the United States of underground nuclear weapons
tests is achieved when the Department of Energy has the
capability to resume such tests, if directed by the President
to resume such tests, not later than the specified number of
months after the date on which the President so directs.
(c) Report.--The Secretary shall include with the budget
justification materials submitted to Congress in support of the
Department of Energy budget for fiscal year 2004 (as submitted
with the budget of the President under section 1105(a) of title
31, United States Code) a report on the plans required by
subsection (a). The report shall include--
(1) an assessment of the current readiness posture
for resumption by the United States of underground
nuclear weapons tests;
(2) the plans required by subsection (a) and, for
each such plan, the estimated cost for implementing
such plan and an estimate of the annual cost of
maintaining the readiness posture to which the plan
relates; and
(3) the recommendation of the Secretary, developed
in consultation with the Secretary of Defense, as to
the optimal readiness posture for resumption by the
United States of underground nuclear weapons tests,
including the basis for that recommendation.

SEC. 3143. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR MODIFIED
NUCLEAR WEAPONS.

(a) Requirement for Request for Funds for Development.--(1)
In any fiscal year after fiscal year 2002 in which the
Secretary of Energy plans to carry out activities described in
paragraph (2) relating to the development of a new nuclear
weapon or modified nuclear weapon, the Secretary shall
specifically request funds for such activities in the budget of
the President for that fiscal year under section 1105(a) of
title 31, United States Code.
(2) The activities described in this paragraph are as
follows:
(A) The conduct, or provision for conduct, of
research and development which could lead to the
production of a new nuclear weapon by the United
States.
(B) The conduct, or provision for conduct, of
engineering or manufacturing to carry out the
production of a new nuclear weapon by the United
States.
(C) The conduct, or provision for conduct, of
research and development which could lead to the
production of a modified nuclear weapon by the United
States.
(D) The conduct, or provision for conduct, of
engineering or manufacturing to carry out the
production of a modified nuclear weapon by the United
States.
(b) Budget Request Format.--The Secretary shall include in
a request for funds under subsection (a) the following:
(1) In the case of funds for activities described
in subparagraph (A) or (C) of subsection (a)(2), a
single dedicated line item for all such activities for
new nuclear weapons or modified nuclear weapons that
are in phase 1, 2, or 2A or phase 6.1, 6.2, or 6.2A (as
the case may be), or any concept work prior to phase 1
or 6.1 (as the case may be), of the nuclear weapons
acquisition process.
(2) In the case of funds for activities described
in subparagraph (B) or (D) of subsection (a)(2), a
dedicated line item for each such activity for a new
nuclear weapon or modified nuclear weapon that is in
phase 3 or higher or phase 6.3 or higher (as the case
may be) of the nuclear weapons acquisition process.
(c) Exception.--Subsection (a) shall not apply to funds for
purposes of conducting, or providing for the conduct of,
research and development, or manufacturing and engineering,
determined by the Secretary to be necessary--
(1) for the nuclear weapons life extension program;
(2) to modify an existing nuclear weapon solely to
address safety or reliability concerns; or
(3) to address proliferation concerns.
(d) Definitions.--In this section:
(1) The term ``life extension program'' means the
program to repair or replace non-nuclear components, or
to modify the pit or canned subassembly, of nuclear
weapons that are in the nuclear weapons stockpile on
the date of the enactment of this Act in order to
assure that such nuclear weapons retain the ability to
meet the military requirements applicable to such
nuclear weapons when first placed in the nuclear
weapons stockpile.
(2) The term ``modified nuclear weapon'' means a
nuclear weapon that contains a pit or canned
subassembly, either of which--
(A) is in the nuclear weapons stockpile as
of the date of the enactment of this Act; and
(B) is being modified in order to meet a
military requirement that is other than the
military requirements applicable to such
nuclear weapon when first placed in the nuclear
weapons stockpile.
(3) The term ``new nuclear weapon'' means a nuclear
weapon that contains a pit or canned subassembly,
either of which is neither--
(A) in the nuclear weapons stockpile on the
date of the enactment of this Act; nor
(B) in production as of that date.

SEC. 3144. DATABASE TO TRACK NOTIFICATION AND RESOLUTION PHASES OF
SIGNIFICANT FINDING INVESTIGATIONS.

(a) Availability of Funds for Database.--Amounts authorized
to be appropriated by section 3101(a)(1) for the National
Nuclear Security Administration for weapons activities shall be
available to the Deputy Administrator for Nuclear Security for
Defense Programs for the development and implementation of a
database for all national security laboratories to track the
notification and resolution phases of Significant Finding
Investigations (SFIs). The purpose of the database is to
facilitate the monitoring of the progress and accountability of
the national security laboratories in Significant Finding
Investigations.
(b) Implementation Deadline.--The database required by
subsection (a) shall be implemented not later than September
30, 2003.
(c) National Security Laboratory Defined.--In this section,
the term ``national security laboratory'' has the meaning given
that term in section 3281(1) of the National Nuclear Security
Administration Act (title XXXII of Public Law 106-65; 113 Stat.
968; 50 U.S.C. 2471(1)).

SEC. 3145. DEFENSE ENVIRONMENTAL MANAGEMENT CLEANUP REFORM PROGRAM.

(a) Program Required.--From funds made available pursuant
to section 3102(a)(2) for defense environmental management
cleanup reform, the Secretary of Energy shall carry out a
program to reform DOE environmental management activities. In
carrying out the program, the Secretary shall allocate, to each
site for which the Secretary has submitted to the congressional
defense committees a site performance management plan, the
amount of those funds that such plan requires.
(b) Transfer and Merger of Funds.--(1) Funds so allocated
shall, notwithstanding section 3624, be transferred to the
account for DOE environmental management activities and,
subject to paragraph (2) and subsection (c), shall be merged
with and be available for the same purposes and for the same
period as the funds available in such account. The authority
provided by section 3629 shall apply to funds so transferred.
(2) No funds so allocated may be obligated or expended
until 30 days after the Secretary submits to the congressional
defense committees a description of the activities to be
carried out at each site to which funds are so allocated.
(c) Limitation on Use of All Merged Funds.--Upon a transfer
and merger of funds under subsection (b), all funds in the
merged account that are available with respect to the site may
be used only to carry out the site performance management plan
for the site.
(d) Site Performance Management Plan Defined.--For purposes
of this section, a site performance management plan for a site
is a plan, agreed to by the applicable Federal and State
agencies with regulatory jurisdiction with respect to the site,
for the performance of activities to accelerate the reduction
of environmental risk in connection with, and to accelerate the
environmental cleanup of, the site.
(e) DOE Environmental Management Activities Defined.--For
purposes of this section, the term ``DOE environmental
management activities'' means environmental restoration and
waste management activities of the Department of Energy in
carrying out programs necessary for national security.

SEC. 3146. LIMITATION ON OBLIGATION OF FUNDS FOR ROBUST NUCLEAR EARTH
PENETRATOR PROGRAM PENDING SUBMISSION OF REPORT.

(a) Report-and-Wait Requirement.--None of the funds made
available to the Secretary of Energy for fiscal year 2003 for
the Robust Nuclear Earth Penetrator program may be obligated
until--
(1) the Secretary of Defense submits to the
Committees on Armed Services of the Senate and House of
Representatives a report described in subsection (b);
and
(2) a period of 30 days has passed after such
report is received by those committees.
(b) Report.--A report under subsection (a)(1) is a report
on the Robust Nuclear Earth Penetrator program, prepared by the
Secretary of Defense in consultation with the Secretary of
Energy, that sets forth the following:
(1) The military requirements for the Robust
Nuclear Earth Penetrator.
(2) The nuclear weapons employment policy regarding
the Robust Nuclear Earth Penetrator.
(3) A detailed description of the categories or
types of targets that the Robust Nuclear Earth
Penetrator is designed to hold at risk.
(4) An assessment of the ability of conventional
weapons to defeat the same categories and types of
targets as are described pursuant to paragraph (3).

Subtitle C--Proliferation Matters

SEC. 3151. TRANSFER TO NATIONAL NUCLEAR SECURITY ADMINISTRATION OF
DEPARTMENT OF DEFENSE'S COOPERATIVE THREAT
REDUCTION PROGRAM RELATING TO ELIMINATION OF
WEAPONS GRADE PLUTONIUM PRODUCTION IN RUSSIA.

(a) Transfer of Program.--There are hereby transferred to
the Administrator for Nuclear Security the following:
(1) The program, within the Cooperative Threat
Reduction program of the Department of Defense,
relating to the elimination of weapons grade plutonium
production in Russia.
(2) All functions, powers, duties, and activities
of that program performed before the date of the
enactment of this Act by the Department of Defense.
(b) Transfer of Assets.--(1) Notwithstanding any
restriction or limitation in law on the availability of
Cooperative Threat Reduction funds specified in paragraph (2),
so much of the property, records, and unexpended balances of
appropriations, allocations, and other funds employed, used,
held, available, or to be made available in connection with the
program transferred by subsection (a) are transferred to the
Adm