110-H.R.1585

To authorize appropriations for fiscal year 2008 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for ***Continued Funding of the War in Iraq***, and other purposes.

10/1/2007--Passed Senate amended.    (There are 3 other summaries)

National Defense Authorization Act for Fiscal Year 2008 - Division A: Department of Defense Authorizations - Title I: Procurement - Subtitle A: Authorization of Appropriations - (Sec. 101) Authorizes appropriations for FY2008 for the Army, Navy and Marine Corps, and Air Force for aircraft, missiles, weapons and tracked combat vehicles, ammunition, shipbuilding and conversion, and other procurement.

(Sec. 104) Authorizes appropriations for FY2008 for: (1) defense-wide procurement; and (2) the Rapid Acquisition Fund.

Subtitle B: Army Programs - (Sec. 111) Authorizes the Secretary of the Army, beginning with the FY2008 program year, to enter into a multiyear contract for procurement of: (1) M1A2 Abrams system enhancement package upgrades; and (2) M2A3/M3A3 Bradley fighting vehicle upgrades.

(Sec. 113) Prohibits Army weapons and tracked combat vehicle funds from being obligated or expended for procurement of the Stryker Mobile Gun System until 30 days after the Secretary of the Army certifies to Congress its operational effectiveness in anticipated deployment missions. Authorizes the Secretary of Defense (Secretary) to waive such certification requirement in the national security interest, after congressional notification.

(Sec. 114) Directs the Secretary of the Army to: (1) consolidate the Joint Network Node program and Warfighter Information Network-Tactical program into a single Army tactical network program; and (2) report to the congressional defense and appropriations committees on such consolidation.

(Sec. 115) Increases (with a corresponding offset) Army research, development, test and evaluation (RDT&E) funds, to be available for the Army's General Fund Enterprise Business System.

Subtitle C: Navy Programs - (Sec. 131) Authorizes the Secretary of the Navy, beginning with the FY2009 program year, to enter into multiyear contracts for procurement of Virginia-class submarines and government-furnished equipment. Prohibits such Secretaryfrom entering into such a contract until 30 days after certification to the defense and appropriations committees with respect to contract specifications.

(Sec. 132) Outlines specified costs and government liability limits under the Navy's Littoral Combat Ship program, including a cost limit of $460 million per vessel. Authorizes the Secretary of the Navy to adjust such limit by the amounts of: (1) increases or decreases in costs attributable to compliance with changes in federal, state, or local laws enacted after September 30, 2007; and (2) outfitting costs and costs required to complete post-delivery test and trials.

(Sec. 133) Earmarks specified Navy procurement funds for advanced procurement for the Virginia class submarine program.

Subtitle D: Air Force Programs - (Sec. 141) Prohibits the Secretary of the Air Force from retiring C-130E/H tactical airlift aircraft during FY2008. Requires such Secretary to maintain each such aircraft retired during FY2007 in a condition thatwill permit recall to future service.

(Sec. 142) Prohibits the Secretary of the Air Force from retiring any KC-135E aerial refueling aircraft in FY2008 unless such Secretary provides written notification to the defense and appropriations committees.

(Sec. 143) Expresses the sense of Congress that the Air Force should: (1) hold a full and open competition to choose the best possible joint aerial refueling capability at the most reasonable price; and (2) be discouraged from limiting the ability of either of the teams seeking the contract for procurement of KC-X tanker aircraft from competing for that contract.

(Sec. 144) Authorizes the Secretary of the Air Force to transfer to the government of Iraq not more than three C-130E tactical airlift aircraft which were allowed to be retired under the John Warner National Defense Authorization Act for Fiscal Year 2007 (Warner Act).

(Sec. 145) Amends the Warner Act to: (1) direct the Secretary of the Air Force to maintain a primary B-52 bomber aircraft inventory of not less than 63 and a backup inventory of not less than 11; and (2) increase from 45 to 60 days the required prior notification to the defense committees before Department of Defense (DOD) funds may be used for the retirement of any such aircraft.

(Sec. 146) Expresses the sense of Congress that: (1) the timely modernization of the Air Force aerial refueling tanker fleet is a vital national security priority; and (2) to meet such priority, the Secretary of the Air Force has initiated, and Congress approves of, a comprehensive strategy for replacing such fleet.

(Sec. 147) Expresses the sense of Congress that DOD should: (1) rapidly field innovative logistic systems such as the associated intermodal platform pallet system; and (2) seek to fully procure such systems in future budgets.

Title II: Research, Development, Test, and Evaluation - Subtitle A: Authorization of Appropriations - (Sec. 201) Authorizes appropriations for FY2008 for the Armed Forces for RDT&E. Earmarks specified amounts for the Defense Science and Technology Program.

Subtitle B: Program Requirements, Restrictions, and Limitations - (Sec. 211) Earmarks specified defense-wide RDT&E funds for transfer to the Advanced Sensor Applications program. Reassigns such program to the Defense Threat Reduction Agency.

(Sec. 212) Requires the Secretary to: (1) undertake comparative tests and a comprehensive assessment of foreign and domestic active protection systems for the consideration of the adoption of such systems in defense acquisition programs; and (2) report to the defense and appropriations committees on such assessment.

(Sec. 213) Requires the Secretary, with respect to funds authorized after FY2007 for the Joint Strike Fighter program, to ensure the obligation and expenditure of sufficient funds for the development and procurement of two options for the propulsion system for such Fighter, thereby giving a choice of engines to the growing number of nations expressing an interest in procuring such aircraft.

(Sec. 214) Earmarks specified Army RDT&E funds to carry out a program for Gulf War illnesses research. Outlines program activities, and requires competitive selection and peer review to identify research activities having the most substantial scientific merit.

Subtitle C: Missile Defense Programs - (Sec. 231) Prohibits the obligation or expenditure of funds for the procurement, construction, or deployment of a long-range missile defense system in Europe until specified conditions have been met, including that the Secretary: (1) has certified to Congress the reliability of the proposed interceptor to be deployed; and (2) select a federally funded research and development center (FFRDC) to conduct an independent assessment of options for ballistic missile defense for forward deployed forces of the United States and its allies in Europe. Requires the FFRDC to report assessment results to the Secretary and the defense and appropriations committees.

(Sec. 232) Prohibits funds from being obligated or expended to deploy more than 40 ground-based interceptors at Fort Greely, Alaska, until the Secretary certifies to Congress that the Block 2006 ground-based midcourse defense element of the Ballistic Missile Defense (BMD) system has demonstrated a high probability of working in an effective manner.

(Sec. 233) Requires the budget justification materials submitted to Congress in support of the DOD budget for any fiscal year after 2008 to set forth separately requested amounts for the Missile Defense Agency (MDA) for: (1) RDT&E; (2) procurement; (3) operation and maintenance; and (4) military construction. Outlines objectives for MDA acquisition activities. Specifies BMD system elements.

(Sec. 234) Requires the MDA Director to report promptly to the Director of Operational Test and Evaluation on the results of all tests, evaluations, and studies conducted by the MDA.

(Sec. 235) Amends the National Defense Authorization Act (NDAA) for Fiscal Year 2002 to extend through FY2013 Comptroller General (CG) assessments of BMD programs.

Subtitle D: Other Matters - (Sec. 251) Reduces from 30 to 7 days after notification of the defense and appropriations committees the wait required before the obligation of funds for the foreign comparative test program.

(Sec. 252) Modifies the cost-sharing requirement under the Technology Transition Initiative.

(Sec. 253) Directs the Secretary to develop, and update on a biennial basis, a strategic plan for the Manufacturing Technology program.

(Sec. 254) Amends the NDAA for Fiscal Year 1995 to authorize (under current law, requires) all solicitations under the Defense Experimental Program to Stimulate Competitive Research to be made to, and awards made through, the state committees established for such Program.

(Sec. 255) Amends the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Stump Act) to: (1) revise program purposes under the defensenanotechnology research and development program; (2) replace the Director of Defense Research and Engineering with the Under Secretary of Defense for Acquisition, Technology, and Logistics (Under Secretary) as the program's administrator; (3) include under program activities the development of a strategic plan for the National Nanotechnology Initiative; (4) require the Under Secretary to report on the program to the defense and appropriations committees, in each of 2009, 2011, and 2013; and (5) require a one-time report from the CG to such committees assessing DOD progress made in achieving program purposes.

(Sec. 256) Directs the CG to submit to the defense committees an assessment of the effectiveness of the Defense Experimental Program to Stimulate Competitive Research.

(Sec. 257) Requires the Secretary to: (1) conduct a study on the feasibility of including specified additional elements in the development of a pilot program for a DOD soldier patient tracking system; and (2) report study results to the defense committees.

(Sec. 258) Directs the Secretary to report to the defense and appropriations committees a cost-benefit analysis of the proposed funding reduction for the high energy laser systems test facility.

Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations - (Sec. 301) Authorizes appropriations for FY2008 for operation and maintenance (O&M) for the Armed Forces and specified activities and agencies of DOD.

Subtitle B: Environmental Provisions - (Sec. 311) Authorizes the Secretary to transfer specified funds to the Moses Lake Wellfield Superfund Site Special Account to reimburse the Environmental Protection Agency (EPA) for costs incurred in overseeing a remedial investigation and feasibility study performed by the Army.

(Sec. 312) Authorizes the Secretary to transfer specified funds to the Hazardous Substance Superfund to reimburse the EPA for costs incurred in connection with the Arctic Surplus Superfund Site, Fairbanks, Alaska.

(Sec. 313) Authorizes the Secretary of the Navy to transfer specified funds to the Hazardous Substance Superfund to pay a stipulated penalty assessed by the EPA against the Jackson Park Housing Complex, Washington.

(Sec. 314) Directs the Secretary to report to the defense and appropriations committees on current and planned future actions to control the brown tree snake (an invasive species currently on Guam) and to ensure that it is not introduced into Hawaii, the Commonwealth of the Northern Mariana Islands, or the continental United States as a result of the movement from Guam of military aircraft, personnel, and cargo, including household goods.

Subtitle C: Program Requirements, Restrictions, and Limitations - (Sec. 321) Allows funds in the Defense Information Systems Agency Working Capital Fund to be used for expenses directly related to technology upgrades to the Defense Information Systems Network, with limitations. Requires an annual report on the useof such authority from the Director of the Defense Information Systems Agency to the defense and appropriations committees. Terminates the authority on October 1, 2011.

(Sec. 322) Amends the Stump Act to extend through FY2012 the temporary authority for the contractor performance of DOD security guard functions.

(Sec. 323) Amends the Warner Act to include, in a required report, the reporting of additional incremental costs resulting from the deployment of forces in Iraq and Afghanistan above the levels deployed to such countries on January 1, 2007.

(Sec. 324) Requires the Directors of Operational Test and Evaluation and Defense Research and Engineering to jointly: (1) conduct an assessment of various domestic technological approaches for body armor systems for protection against ballistic threats at or above military requirements; and (2) report assessment results to the Secretary and the defense and appropriations committees.

Subtitle D: Workplace and Depot Issues - (Sec.341) Extends through FY2014 the authority for Army industrial facilities to engage in cooperative activities with non-Army entities to carry out specified military or commercial projects. Requires: (1) annual reports from the Secretary of the Army to Congress on the use of such authority; and (2) a one-time report from such Secretary to the defense and appropriations committees on the advisability of making such authority permanent and eliminating the limitation on the number of contracts that may be entered into under such authority.

(Sec. 342) Amends the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Spence Act) to extend through FY2010 the arsenal support demonstration program (and a related report requirement).

(Sec. 343) Requires: (1) information concerning the use of National Guard equipment to respond to domestic emergencies to be included in an annual report from the Secretary to Congress on National Guard and reserve personnel equipment; (2) an assessment of National Guard readiness to support the National Response Plan for support to civil authorities to be included in quarterly National Guard personnel and unit readiness reports; and (3) a report from the Secretary to the defense and appropriations committees on the implementation of this section.

(Sec. 344) Expresses the sense of the Senate that the Air Force should work closely with Congress as the Air Force continues to develop and implement the Global Logistics Support Center concept.

Subtitle E: Other Matters - (Sec. 351) Replaces provisions requiring the Secretary to designate a DOD officer, employee, or standing board or committee as the official or organization responsible for the prevention and mitigation of corrosion of DOD military equipment and infrastructure with provisions establishing an Office of Corrosion Policy and Oversight (headed by a Director) within the Office of the Under Secretary. Gives the Director additional authorities relating to the oversight of corrosion-related training, the development of directives, and interaction with non-DOD corrosion prevention activities, organizations, and research institutions. Includes the use of cooperative corrosion research agreements within the DOD corrosion reduction strategy. Requires annual reports from the Secretary and the CG concerning the use of DOD funds for corrosion prevention and mitigation activities.

(Sec. 352) Directs the Secretary to require a federal agency to which law enforcement support or support to a national special security event is provided by National Guard personnel to reimburse DOD for the costs of that support.

(Sec. 353) Extends through 2013 the authority of the Secretary of Transportation to provide insurance and reinsurance for commercial air carriers supporting DOD transportation activities.

(Sec. 354) Authorizes the Secretary of the Navy to prescribe regulations for the accounting for property of the Navy and Marine Corps and for the fixing of responsibility for such property.Prohibits members of the Navy or Marine Corps from selling, lending, or giving any clothing, arms, or equipment obtained by or furnished to such member to any person other than a member of the Navy or Marine Corps, other military officer, or other individual authorized to receive it. Allows for the seizure and retention of property disposed of in violation of such requirements. Standardizes the language of current provisions relating to the unauthorized disposition of Army and Air Force clothing, arms, or equipment with the language of the Navy and Marine Corps requirements.

(Sec. 355) Authorizes the Secretary to require compliance with reasonable conditions before a member or DOD civilian employee receives full replacement value for personal property lost or damaged while being transported at government expense.

(Sec. 356) Permits the Secretary of the military department concerned (Secretary concerned) to authorize members to retain combat uniforms and individual equipment issued in connectionwith their deployment in support of contingency operations.

(Sec. 357) Amends the Warner Act to extend and expand the elements required in a report from the General Accountability Office (GAO) relating to readiness of Army and Marine Corps ground forces.

(Sec. 358) Authorizes DOD to provide assistance for: (1) a sporting event sanctioned by the U.S. Olympic Committee through the Paralympic Military Program; or (2) certain national or international paralympic sporting events. Limits to $1 million the total amount of such assistance per fiscal year.

(Sec. 359) Requires a report from the DOD Inspector General to Congress on the physical security of DOD installations and resources.

(Sec. 360) Directs the Secretary to report to the defense and appropriations committees on the challenges of implementing the transfer of depot functions and the impacts on production, including parts reclamation and refurbishment. Requires the CG to review such report and provide to such committees an independent assessment of the matters addressed therein.

(Sec. 361) Directs the Secretary of the Air Force to report to specified congressional committees on Air Force search and rescue capabilities in the northwestern United States.

(Sec. 362) Requires a report from the Secretary of the Army to the defense and appropriations committees on the High-Altitude Aviation Training Site at Gypsum, Colorado.

(Sec. 363) Expresses that it is the sense of Congress to encourage DOD to continue and accelerate, as appropriate, the testing and certification of synthetic fuels for use in all military air, ground, and sea systems.

(Sec. 364) Requires: (1) three reports from the Secretary of the Air Force to the defense and appropriations committees on efforts made to provide the highest level of safety by all of the military departments using the Warren Grove (New Jersey) Gunnery Range; and (2) a study on encroachment issues at such Range.

(Sec. 365) Requires, with respect to public-private competition requirements prior to the conversion to contractor performance of certain functions currently performed by DOD civilian employees, a comparison of retirement system costs relating to employer-sponsored health insurance plans. Requires consultation with affected DOD employees by DOD officers making such conversion determinations.

(Sec. 366) Includes as an "interested party" for purposes of submitting bid protests with respect to public-private competitions conducted under Office of Management and Budget (OMB) Circular A-76: (1) any official who submitted the agency tender in such competition; and (2) any individual representing the federal employees engaged in the performance of the activity or function for which the public-private competition is conducted in a protest that relates to such competition. Provides for expedited action in such protests, and authorizes an interested party to intervene in any related civil action.

(Sec. 367) Amends the Office of Federal ProcurementPolicy Act to prohibit any function of an executive agency performed by ten or more agency civilian employees from being converted to performance by a contractor unless the conversion is based on the results of a public-private competition that, among other things: (1) formally compares the cost of performance by agency employees with the cost of performance by a contractor; and (2) would require continued performance by agency personnel unless the cost difference the lesser of 10% of the personnel-related costs of performance or $10 million. Requires each employee determining whether such performance should be converted to consult with affected agency civilian employees at least monthly during such determination. Requires the head of an executive agency, before commencing a required public-private competition, to notify Congress. Exempts from the public-private competition requirements procurements of products and services of the blind and other severely handicapped persons.

(Sec. 368) Requires theUnder Secretary of Defense for Personnel and Readiness to prescribe specified guidelines and procedures for ensuring that consideration is given to using federal employees on a regular basis for new work and work that is performed under DOD contracts and could be performed by federal employees. Requires the Secretary of Defense to: (1) implement such guidelines and procedures within 60 days after the enactment of this Act; and (2) establish an inventory of DOD contracts to determine which contracts could meet the guidelines. Limits requiring public-private competitions prior to the commencement by civilian DOD employees of a new DOD function, or the expansion of the scope of any DOD function performed by civilian DOD employees. Directs the Secretary to ensure that federal employees are fairly considered for the performance of new DOD requirements, with special consideration to new requirements that include functions that are: (1) similar to functions performed by federal employees at any time on or after October 1, 1980; or (2) associated with the performance of inherently governmental functions. Requires a report from the DOD Inspector General to the defense committees on the Secretary's compliance with requirements of this section.

(Sec. 369) Prohibits the OMB from directing or requiring the Secretary or the Secretary concerned to undertake, continue, or complete a public-private competition or direct conversion of a DOD function to performance by a contractor under OMB Circular A-76 or any successor regulation, directive, or policy. Prohibits the Secretary or the Secretary concerned from taking such action by reason of any directive or requirement provided by OMB.

(Sec. 370) Prohibits a military department or defense agency from being required to conduct such a public-private competition at the end of the period specified in the performance agreement for any DOD function performed by DOD civilian employees.

Title IV: Military Personnel Authorizations - Subtitle A: Active Forces -(Sec. 401) Sets forth authorized end strengths for active-duty forces as of the end of FY2008.

Subtitle B: Reserve Forces - (Sec. 411) Sets forth authorized end strengths as of the end of FY2008 for members of the Selected Reserve and reserve personnel on active duty in support of the reserves.

(Sec. 413) Sets forth minimum end strengths for FY2008 for Army and Air Force dual status military technicians.

(Sec. 414) Provides a FY2008 limitation on the number of non-dual status Army and Air Force military technicians.

(Sec. 415) Sets, during FY2008, the maximum number of reserve personnel authorized to be on active duty for operational support.

(Sec. 416) Increases from 2% to 3% the authorized fiscal year variance in end strengths for Selected Reserve personnel.

Subtitle C: Authorization of Appropriations - (Sec. 421) Authorizes appropriations for FY2008 for military personnel.

Title V: Military Personnel Policy - Subtitle A: Officer Personnel Policy - (Sec. 501) Increases, in order to meet increased force structure requirements, the authorized end strength limits for active-duty Army officers in the grade of major and active-duty Navy officers in the grades of lieutenant commander, commander, and captain.

(Sec. 503) Increases from 50 to 85 the number of permanent military professors that may be excluded from active-duty, commissioned officer end strength limits for officers below general and flag grades.

(Sec. 505) Authorizes the Secretary to waive the eight-year minimum service obligation in the case of initial appointments of commissioned officers in critically short health professional specialties. Makes such minimum service period two years or the period of obligated service associated with receipt of an accession bonus or special pay.

(Sec. 506) Increases from 22 to 28 the authorized number of permanent professors at the U.S. Military Academy.

(Sec. 507) Allows regular Army and Air Force officers (under currentlaw, allows only reserve officers) to reenlist (under certain conditions) in their former enlisted grade.

(Sec. 508) Excludes from active-duty general and flag officer end strength limitations certain reserve general and flag officers serving on active duty for not more than 365 days.

(Sec. 509) Authorizes the promotion of Navy career military professors to the grade of captain or colonel.

Subtitle B: Enlisted Personnel Policy - (Sec. 521) Authorizes an increase in the maximum authorized daily average of active-duty enlisted members in pay grade E-9 from 1% to 1.25% of the enlisted force.

Subtitle C: Reserve Component Management - (Sec. 531) Redesignates the Reserve Forces Policy Board as the Reserve Policy Advisory Board. Restructures Board membership and experiential requirements. Requires the Board to provide the Secretary independent advice and recommendations on strategies, policies, and practices to improve the capability, efficiency, and effectiveness of thereserve components. Directs the Secretary to report to the defense committees concerning the appropriate roles and missions and membership of, and procedures to be followed by, the Board.

(Sec. 532) Requires the Secretary (under current law, the Secretaries of the Army and Air Force) to prescribe a charter for the National Guard Bureau.

(Sec. 533) Elevates from lieutenant general to general the grade of the Chief of the National Guard Bureau. Requires that an officer appointed to such position be recommended by his or her governor and by the Secretary of the Army or Air Force, have at least ten years of federally recognized active-status commissioned service in the National Guard, be in the grade of major general or above, have significant joint duty experience, and have a detailed understanding of the status and capabilities of National Guard forces and National Guard Bureau missions. Repeals the 64-year age limit for service in such position. Makes the Chief an advisor to the Secretary on matters involving the National Guard not employed in a federal status. Authorizes the President to defer until age 68 the retirement of an officer serving as Chief.

(Sec. 534) Requires the transfer of reserve officers to the Retired Reserve, or discharge from the officer's reserve appointment, within 30 days after completion of 38 years of commissioned service, or five years after appointment as a lieutenant general or vice admiral, whichever is later.

(Sec. 535) Increases from 6 to 12 months the period of temporary recognition as an officer of the Army or Air National Guard that can be granted during the period that the individual's appointment as a reserve Army or Air officer is pending.

(Sec. 536) Provides an additional 24-month period before retraining of nurse aides is required under the Medicare and Medicaid training and competency evaluation programs in the case of members of the National Guard and reserves ordered to active duty for a period of at least 12 months who complete suchduty during the period beginning on July 1, 2007, and ending on September 30, 2008. Requires a report from the Secretary to Congress on recommendations to provide for the exemption or tolling of professional or other licensure or certification requirements for the practice of a profession, trade, or occupation for members of the National Guard or reserves who are on active duty for an extended period of time.

Subtitle D: Education and Training - (Sec. 551) Requires medical students at the Uniformed Services University of the Health Sciences and participants in military health professions scholarship and financial assistance programs who have prior commissioned service to serve, while on active duty, in pay grade O-1, or in pay grade O-2 if they meet specified promotion criteria.

(Sec. 552) Authorizes the Secretary to support, with DOD funds, the establishment and operation of up to four (under current law, two) STARBASE academies in a state.

(Sec. 553) Repeals a provision prohibiting any increase in cadet end strength limits at the U.S. Military Academy after the 2007-2008 academic year.

(Sec. 554) Allows three named high schools in Suffolk County, New York, to be treated as a single institution for purposes of maintaining a Navy Junior Reserve Officers' Training Corps (ROTC) unit.

(Sec. 555) Authorizes the commander of the Air University to confer the following additional degrees: (1) doctor of philosophy in strategic studies; (2) master of air, space, and cyberspace studies; and (3) master of flight test engineering science.

(Sec. 556) Authorizes the Secretary to carry out each of the following nurse programs: (1) a program in which covered commissioned officers with a graduate degree in nursing who are in the nurse corps of an armed force serve a tour of duty of two years as a full-time faculty member of an accredited school of nursing; (2) a program in which covered commissioned officers with such credentials serve while on active duty a tour of two years asa full-time faculty member of an accredited school of nursing in return for nurse officer scholarship benefits; (3) a program in which the Secretary provides scholarships to commissioned officers who have served not less than 20 years of active duty and are eligible for retirement in order to participate in an educational program leading to a graduate degree in nursing; and (4) a program in which the Secretary provides career placement, continuing education, or stipend assistance to retiring commissioned officers of the nurse corps who possess a doctoral or master degree in nursing which qualify such officer to discharge the position of nursing instructor at an accredited school of nursing. Provides benefits and agreement requirements under each program. Requires each program to continue for at least two years, after which the Secretary shall assess program results to determine whether to continue the program.

(Sec. 557) Repeals the 416-person annual limit on the number of Reserve Officers' Training Corps (ROTC) scholarships authorized under the Army Reserve and Army National Guard financial assistance program.

Subtitle E: Defense Dependents' Education Matters - (Sec. 561) Earmarks specified FY2008 DOD O&M funds for the continuation of DOD assistance to local educational agencies (LEAs) that have significant numbers of military dependent students or experience significant enrollment changes due to base closures, force structure changes, or force relocations.

(Sec. 562) Earmarks specified DOD O&M funds for impact aid for children with severe disabilities under provisions of the Elementary and Secondary Education Act of 1965.

(Sec. 563) Amends the Warner Act to include dependents of non-DOD employees employed on federal property in the plan and annual reports required to identify and assist Leas experiencing growth in enrollment due to force structure changes, relocation of military units, or base closures and realignments.

(Sec. 564) Amends the Defense Dependents' Education Act of 1978 to authorize the Secretary to pay private boarding school tuition for military dependents in overseas areas not served by the defense dependents' school system.

(Sec. 565) Directs the Secretary of Education, for FY2008 and thereafter, to: (1) deem each LEA that was eligible to receive an FY2007 basic support payment for heavily impacted (by military dependent students) LEAs as eligible to receive educational assistance payments due to such status; and (2) make such payment.

(Sec. 566) Help for Military Children Affected by War Act of 2007 - Authorizes the Secretary to provide assistance to eligible LEAs for additional education, counseling, and other needs of military dependent children who are affected by war-related action. Makes eligible for such assistance LEAs which: (1) have a number of military dependent children in schools served by the LEA which either exceeds 20% of the attendance of all students in schools served by that LEA, or is 1,000 or more; and (2) aredesignated by the Secretary as impacted by Operations Iraqi Freedom or Enduring Freedom, or the DOD global rebasing plan. Includes under authorized assistance tutoring, dropout prevention, professional development of school staff, and counseling and other comprehensive support services.

Subtitle F: Military Justice and Legal Assistance Matters - (Sec. 571) Authorizes judges of the U.S. Court of Appeals for the Armed Forces to administer oaths.

(Sec. 572) Allows the Secretary concerned to provide legal assistance to civilian DOD employees in locations where legal assistance from non-military providers is not reasonably available.

(Sec. 573) Requires judge advocate generals to serve in the grade of lieutenant general or vice admiral. Excludes such judges from end strength limits for officers serving in grades above major general or rear admiral. Redesignates assistant judge advocate generals as deputy judge advocate generals.

Establishes a Legal Counsel to the Chairman of theJoint Chiefs of Staff (JCS).

Subtitle G: Military Family Readiness - (Sec. 581) Establishes the Department of Defense Military Family Readiness Council to provide certain advisory, monitoring, and assessment services with respect to DOD military family readiness programs and activities. Requires annual reports from the Council to the Secretary and the defense and appropriations committees.

(Sec. 582) Directs the Secretary to: (1) develop policy and plans for DOD for the support of military family readiness; and (2) report to the defense and appropriations committees on the policy developed.

(Sec. 583) Requires the Secretary to: (1) enhance and improve current DOD programs to provide support for families of deployed members of the Armed Forces (including deployed members of the National Guard and Reserve) in order to improve the assistance available to such families before, during, and after the member's deployment cycle; and (2) provide post-deployment assistance for spouses andparents of returning members.

(Sec. 584) Directs the Secretary to provide specified information, programs and activities, training, and other support services for the parents, children, infants, and toddlers of members undergoing deployments. Requires periodic reports from the Secretary to Congress on the services provided.

(Sec. 585) Directs the Secretary to study and report to Congress on the feasibility and advisability of contracting with a private sector entity to enhance and develop support services for children of members of active and reserve components who are deployed.

(Sec. 586) Requires the Secretary to study and report to Congress on the feasibility and advisability of establishing a pilot program on family-to-family support for families of deployed members of the active and reserve components.

(Sec. 587) Directs the Secretary to carry out a pilot program to assess the feasibility and advisability of providing assistance and support to the Adjutant General of a U.S. state or territory to create comprehensive soldier and family preparedness and reintegration outreach programs for members and their families. Designates the pilot program as the National Military Family Readiness and Servicemember Reintegration Outreach Program. Authorizes the following types of assistance: (1) marriage counseling; (2) services for children; (3) suicide prevention; (4) substance abuse awareness and treatment; (5) mental health awareness and treatment; (6) financial counseling; (7) anger management counseling; (8) domestic violence awareness and prevention; (9) employment assistance; and (10) assistance in living with a member with post-traumatic stress disorder (PTSD) or traumatic brain injury.

Subtitle H: Other Matters - (Sec. 591) Increases from 60 to 90, for all military personnel, the number of days of accumulated leave they may carry over from one fiscal year to the next. Allows personnel serving in support of contingency operations an additional fiscal year after the current fiscal year to retain (without losing) any accumulated leave in excess of 90 days. Allows enlisted personnel who have accumulated more than 120 days of leave to sell back, on a one-time basis, up to 30 days of any leave in excess of the 120-day limit.

(Sec. 592) Prohibits DOD bands, choruses, or similar musical units from: (1) engaging in the performance of music in competition with local civilian musicians; or (2) receiving remuneration for official performances. Authorizes members of such a unit to perform music in their personal capacity if the member does not wear a military uniform or otherwise identify their self as a member of DOD. Allows such units to produce recordings for distribution to the public, at a cost not to exceed production and distribution expenses.

(Sec. 593) Authorizes the President to award the Medal of Honor to: (1) Woodrow W. Keeble, for acts of valor during the Korean War; (2) Leslie H. Sabo, Jr., for acts of valor in Vietnam; (3) Philip G. Shadrach, for acts of valor during the Civil War; (4) Henry Svehla, for acts of valor during the Korean War; and (5) George D. Wilson, for acts of valor during the Civil War.

(Sec. 594) Authorizes the payment of rest and recuperative leave for up to 20 days for members with a specialty designated by the Secretary concerned whose qualifying tour of duty is longer than 12 months.

(Sec. 595) Authorizes the Secretary to conduct one or more demonstration projects to evaluate improved approaches to the provision of education and treatment services to military dependent children with autism. Requires the Secretary, as part of any such project, to conduct a review of best autism-related education and treatment practices in the United States. Outlines program elements and services. Requires any demonstration program conducted to be commenced within 180 days after the enactment of this Act, and to have a minimum period of two years. Directs the Secretary to evaluate and report to the defense committees on any program conducted.

(Sec. 596) Requires the Secretary to modify the Certificate of Release or Discharge from Active Duty (a DOD document) in order to permit a member to elect the forwarding of such Certificate to: (1) the Central Office of the Department of Veterans Affairs (VA) in Washington, D.C.; or (2) the appropriate VA office of the state in which the member will reside.

(Sec. 597) Prohibits, beginning 30 days after the enactment of this Act and continuing until the Secretary submits a report required under this section, a member of the active or reserve forces who has served on active duty in Iraq or Afghanistan since October 2001 from being administratively separated from the Armed Forces on the basis of a personality disorder unless a clinical review of the case is conducted by an appropriately credentialed senior officer of the Surgeon General of the Armed Forces to determine, among other things, whether the diagnosis is correct and fully documented. Requires a report from the: (1) Secretary to the defense committees on all cases of separations under such basis; and (2) CG to Congress on policies and procedures of DOD and the military departments relating to the separation of military personnel based on a personality disorder.

Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay and Allowances - (Sec. 601) Waives any FY2008 pay increases tied to increases in the General Schedule of Compensation for government employees. Increases by 3.5%, effective January 1, 2008, the rates of basic pay for military personnel.

(Sec. 602) Authorizes a member of the Individual Ready Reserve to be paid a stipend for participation in electronic screening for force readiness purposes. Limits to $50 the maximum stipend amount. Prohibits members from receiving retirement credit for such participation.

(Sec. 603) Authorizes DOD to make bimonthly payments to the Thrift Savings Plan (TSP) on behalf of participating members.

(Sec. 604) Authorizes the Secretary concerned to reimburse inactive duty training travel costs of a member of the Selected Reserve who is: (1) qualified in a skill designated as critical; (2) assigned to a unit or in a reserve pay grade with a critical manpower shortage; or (3) assigned to a unit or position that is disestablished or relocated due to defense base closure or realignment or other force structure reallocation. Sets at $300 the maximum amount of such reimbursement, and terminates the reimbursement authority after December 31, 2010.

(Sec. 605) Extends: (1) from 20 to 60 days the authorized period for the payment of temporary lodging expenses for members in areas subject to declaration as a major disaster or for installations experiencing sudden increases in personnel levels due to force reallocations; and (2) through 2009 the authority for an increase in certain basic allowance for housing inside the United States.

Subtitle B: Bonuses and Special and Incentive Pays - (Sec. 611) Extends through 2008 specified authorities currentlyscheduled to expire at the end of 2007 with respect to certain special pay and bonus programs within the regular and reserve Armed Forces.

(Sec. 615) Increases from $50,000 to $75,000 the incentive special pay and multiyear retention bonus for medical officers in the Armed Forces.

(Sec. 616) Increases from: (1) $4,000 to $10,000 the maximum special pay for military dental officers with less than three years of retirement-creditable service; and (2) $6,000 to $12,000 the maximum special pay for such officers with more than three but less than ten years of service.

(Sec. 617) Increases from $750 to $1,500 the maximum monthly amount of hardship duty pay. Allows such payment in a lump sum (under current law, only on a monthly basis).

(Sec. 618) Makes eligible for career sea pay off-cycle crewmembers of multi-crewed ships.

(Sec. 619) Eliminates the: (1) six-year Selected Reserve reenlistment bonus option; and (2) tiered bonus amounts (instead having one bonus not to exceed $15,000).

(Sec. 620) Extends from 26 to 30 years of commissioned service the period of eligibility for nuclear officer continuation pay.

(Sec. 621) Authorizes the Secretary, or the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Navy, to waive the 25-year service limitation on the eligibility to receive the retention bonus for certain members with designated critical military skills.

(Sec. 622) Codifies provisions of the NDAA for Fiscal Year 2006 which authorized a bonus to encourage Army personnel to refer other individuals for enlistment in the Army. Increases from $1,000 to $2,000 the maximum bonus amount, and extends the bonus authority through 2008 (under current law, 2007).

(Sec. 623) Authorizes the Secretary concerned to pay a bonus of up to $2,000 to current or former military personnel or DOD civilian employees who refer for appointment as military health profession officers a person who has not previously served inthe Armed Forces. Prohibits payment for referral of an immediate family member. Authorizes bonus payments through 2008.

(Sec. 624) Authorizes the Secretary to pay an accession bonus of up to $20,000 to participants in the Armed Forces Health Professions Scholarship and Financial Assistance Program.

Subtitle C: Travel and Transportation Allowances - (Sec. 641) Authorizes the Secretary to pay travel and related expenses of a dependent of a member assigned to a very remote location outside the United States, for travel for obstetrical purposes to a location inside the United States.

(Sec. 642) Authorizes DOD to reimburse the moving expenses of JROTC instructors who agree to serve at least two years at an educational institution in a position that is hard to fill for geographic or economic reasons, as determined by the Secretary concerned.

Subtitle D: Retired Pay and Survivor Benefits - (Sec. 651) Revises the prioritized list of beneficiaries to which a member's death gratuity shall be payable to place at the top of such list any individual designated by the member in writing.

(Sec. 652) Allows an unmarried member with one or more dependent children to elect to provide a Survivor Benefit Plan (SBP) annuity to a person who acts as guardian or caretaker to such child or children.

(Sec. 653) Expands eligibility for combat-related special compensation to include all servicemembers eligible for retirement pay who have a combat-related disability, including those retired or separated, or transferred to a temporary disability retired list, due to physical disability. Reduces such compensation amount with respect to retirees with fewer than 20 years of retirement-creditable service.

(Sec. 654) Revises the retired pay multiplier percentage with respect to members with over 30 years of retirement-creditable service.

(Sec. 655) Reduces below 60 the age at which a member of the Ready Reserve may receive retired pay by three months for every aggregate of 90 days of active-duty service performed under certain mobilization authorities, including responding to a national emergency. Prohibits such eligibility age from being reduced below age 50.

(Sec. 656) Includes as additional individuals eligible for a travel and transportation allowance for survivors of deceased members attending the member's burial ceremony: (1) any child of the parent(s) of the deceased member who is under 18 years old if such child is attending the service with the parent(s) and would otherwise be left unaccompanied by the parent(s); and (2) the person who directs the disposition of the remains of the deceased member.

(Sec. 657) Provides that, when transportation of the remains of a deceased member includes transportation by aircraft, the Secretary concerned shall provide for delivery of the remains to the commercial, general aviation, or military airport nearest to the place designated by the deceased's designee, or nearest to the cemetery selected by the Secretary.

(Sec. 658) Repeals the requirement for a reduction in SBP annuities by any amounts of veterans' dependency and indemnity compensation received. Prohibits the recoupment of certain amounts previously (and inadvertently) refunded to SBP recipients. Repeals the authority for an optional SBP annuity for dependent children.

(Sec. 659) Changes from October 1, 2008, to October 1, 2007, the effective date on or after which no reduction may be made in the retired pay of an SBP participant for any month after the later of: (1) the 360th month for which such pay was so reduced; and (2) the month during which the participant attains 70 years of age.

(Sec. 660) Allows veterans with service-connected disabilities rated as total by reason of unemployability who are also eligible for retired pay, except for the period beginning on January 1, 2004, and ending on December 31, 2004, to receive the full amount, without reduction, of retired pay and veterans' disability compensation for which such person is eligible.p>

(Sec. 661) Allows up to 130 days in the year of military service that includes October 30, 2007, and any subsequent year of service to be used in the computation of years of service for purposes of retired pay for non-regular (reserve) service.

Subtitle E: Education Benefits - (Sec. 671) Authorizes the Secretary concerned to pay tuition and related expenses of members of the Selected Reserve, or members of the Individual Ready Reserve in designated military occupational specialties, for off-duty training or education. Requires a member receiving such assistance to agree to serve at least four years after completion of the training or education. Requires repayment of unearned benefits.

(Sec. 672) Includes within loans eligible for repayment under the Selected Reserve education loan repayment program any loan incurred for educational purposes and made by a lender that is: (1) an agency or instrumentality of a state; (2) a financial or credit institution subject to examination and supervision by a federal or state agency; (3) an approved pension fund; or (4) a nonprofit private entity designated and regulated by a state and approved by the Secretary. Makes Selected Reserve officers (under current law, only enlisted personnel) eligible for such loan repayment.

(Sec. 673) Requires a report from the Secretary of each military department to the defense and appropriations committees on the utilization of tuition assistance during FY2007 by military personnel of that department.

(Sec. 674) Authorizes payment on an accelerated basis of educational assistance for members of the Selected Reserve, or reserve members supporting contingency and certain combat operations, who are: (1) enrolled in an approved program of education not exceeding two years and not leading to an associate, bachelor, masters, or other degree; and (2) charged tuition and fees that exceed 200% of the monthly rate of educational assistance allowance otherwise payable for members of the Selected Reserve. Sets theauthorized amount of such assistance at the lesser of: (1) 60% of the established charges for that program of education; or (2) the aggregate amount of educational assistance to which the person remains entitled. Requires such accelerated payments to be charged against any remaining educational assistance of such members. Authorizes educational assistance for reserve members supporting contingency and certain combat operations if such members accumulate three years of such service. (Current law allows such educational assistance for such members who perform two or more continuous years of such service.) Allows reserve members eligible for educational assistance to contribute additional amounts in order to receive an increased amount of such assistance.

(Sec. 675) Entitles to educational assistance certain members of the Selected Reserve affected by force shaping initiatives during FY2007-FY2014.

(Sec. 676) Allows a person who separates from the Selected Reserve after completion of active service in support of contingency and certain other operations under other than dishonorable conditions up to ten years after such separation to utilize their authorized educational assistance entitlement.

Subtitle F: Other Matters - (Sec. 681) Revises eligibility criteria for income replacement payments for reserve members experiencing extended and frequent mobilizations for active-duty service. Changes the method for measuring cumulative periods of qualifying service by counting cumulative days rather than months. Allows the continuation of such payments for reserve members who are retained on active duty to receive authorized medical care or be evaluated for disability.

(Sec. 682) Amends the Immigration and Nationality Act to allow the overseas naturalization of any person who is: (1) lawfully admitted for permanent residence; (2) a spouse or child of a member of the Armed Forces; (3) authorized to accompany such member in a foreign country pursuant to the member's official orders; and (4)residing with the member.

(Sec. 683) Directs the Secretary to establish a national combat veteran reintegration program (to be known as the Yellow Ribbon Reintegration Program) to provide National Guard and reserve members and their families with information, services, referral, and outreach opportunities throughout the entire deployment cycle. Requires the Program to consist of informational events and activities for such members, their families, and community members through the following phases of the deployment cycle: (1) pre-deployment; (2) deployment; (3) demobilization; and (4) post-deployment-reconstitution. Requires the: (1) establishment of an Office for Reintegration Programs; (2) Office to establish a Center for Excellence in Reintegration; and (3) Secretary to appoint an advisory board to analyze and report areas of success and areas for necessary improvements (requiring annual reports from the advisory board). Defines the periods of each phase of the deployment cycle for purposes of theProgram. Requires the Office to offer a monthly reintegration program for members released from active duty or formerly in a medical hold status.

(Sec. 684) Authorizes the Secretary, on a case-by-case basis, to waive suspension of the payment of federal annuities with respect to an individual who becomes employed in a position within DOD following retirement from federal service.

(Sec. 685) Directs the Secretaries of Defense and Veterans Affairs to jointly submit to Congress a plan to maximize access to the benefits delivery at discharge program (a program currently jointly administered by such Secretaries) for members of the reserves who have been called or ordered to active duty at any time since September 11, 2001.

(Sec. 686) Amends the Spence Act to increase amounts of back pay for members of the Navy and Marine Corps selected for promotion while interned as prisoners of war during World War II, to reflect changes in the Consumer Price Index. Requires the recalculation of previous payments.

Title VII: Health Care Provisions - (Sec. 701) Provides that, with respect to any prescription filled on or after October 1, 2007, the TRICARE (a DOD managed health care program) retail pharmacy program shall be covered by the federal pricing limits applicable to covered drugs under the Department of Veterans Affairs (VA) retail pharmacy program.

(Sec. 702) Directs the Secretary to: (1) conduct surveys on the current and future viability of the TRICARE Standard and TRICARE Extra health care programs; (2) establish benchmarks for primary and specialty care providers to determine the adequacy of health care provided to TRICARE beneficiaries; and (3) designate a senior DOD official to take necessary actions to achieve and maintain the participation of health care and mental health care providers in TRICARE Standard and TRICARE Extra throughout TRICARE in a manner adequate to ensure the viability of TRICARE Standard for TRICARE beneficiaries. Requires the CG to: (1) conduct anongoing review of DOD processes, procedures, and analyses to determine the adequacy of health care and mental health care providers; and (2) report review results biannually to the defense committees.

(Sec. 703) Directs the Secretary to report to the defense committees on the ongoing patient satisfaction surveys taking place in DOD inpatient and outpatient settings at military treatment facilities, and to use information in the report as the basis for a plan for improvements in such satisfaction.

(Sec. 704) Requires the Secretary to contract with the Institute of Medicine of the National Academy of Sciences, or another similarly qualified organization, to: (1) conduct a study of the credentials, preparation, and training of individuals practicing as mental health counselors, social workers, and marriage and family therapists under the TRICARE program to provide mental health services; and (2) make recommendations for permitting such professionals to practice independently under the TRICARE program. Expresses the sense of Congress that the study should focus only on those practitioners of each health care profession mentioned above who are permitted to practice under TRICARE regulations. Directs the Secretary to report to the defense committees on study results.

(Sec. 705) Expresses the sense of the Senate that DOD should continue collaboration between the Army and the VA in treating America's wounded warriors and, when appropriate and available, provide additional support and resources for the development of such collaborations.

(Sec. 706) Expands eligibility for temporary health benefits coverage under federal civilian employee provisions to include any person specified in regulations prescribed by the Secretary who loses entitlement to DOD health care services. Allows such temporary coverage for up to 36 months after the loss of such entitlement.

(Sec. 707) Amends the Warner Act to continue eligibility for TRICARE Standard coverage for certain members of the Selected Reserve.

(Sec. 708) Includes mental health care services within the authority for special reimbursement rates under the TRICARE program. Requires a report from the Secretary to the defense committees on the adequacy of access to mental health services under the TRICARE program.

(Sec. 709) Directs the Secretary to: (1) implement recommendations of the Department of Defense Task Force on Mental Health to ensure a full continuum of psychological health services and care for members of the Armed Forces and their families; (2) submit to the defense and appropriations committees a description of any legislative action required to implement such recommendations, as well as a list of recommendations the Secretary has determined not to implement; and (3) report semiannually to such committees on the status of implementation of such recommendations.

(Sec. 710) Directs the Secretary to establish within DOD a Center of Excellence in Prevention, Diagnosis, Mitigation, Treatment, and Rehabilitation of Military Eye Injuries to, among other things, develop, implement, and oversee a Military Eye Injury Registry tracking each case of eye injury incurred by a member in combat that requires surgery or other operative intervention. Requires the Secretary and the Secretary of Veterans Affairs to ensure that Registry information is available to appropriate VA personnel for encouraging and facilitating the conduct of research and the development of best practices and clinical education with respect to such injuries. Requires the Secretary to: (1) include in the Registry records of members incurring an eye injury in combat in Operations Iraqi Freedom or Enduring Freedom; and (2) report to Congress on the status of the Center. Requires the Secretaries to jointly provide for a cooperative study on neuro-optometric screening and diagnosis of members with traumatic brain injury by DOD military medical treatment facilities and VA medical centers. Provides Center funding.

(Sec. 711) Requires the Secretary to report to Congress on the feasibility and advisability of establishing a scholarship program for civilian mental health professionals.

(Sec. 712) Directs the Secretary to report to Congress on medical physical examinations of members before their deployment.

(Sec. 713) Extends through FY2008 a DOD prohibition on increases in contract medical care and inpatient care costs for certain regular and reserve personnel.

(Sec. 714) Provides copayment limits, for the period beginning on October 1, 2007, and ending on September 30, 2008, for the receipt of generic, formulary, and nonformulary agents under the retail pharmacy system of the DOD pharmacy benefits program.

(Sec. 715) Expresses the sense of Congress that DOD has options to constrain the growth of health care spending in ways that do not disadvantage retired military personnel, and should pursue any and all such options as a first priority.

(Sec. 716) States that a member who has a medical condition relating to service on active dutythat warrants further medical care shall be entitled to receive medical and dental care for such condition as if the member were still on active duty, until such medical condition is resolved. Requires the Secretary concerned to ensure that the Defense Enrollment and Eligibility Reporting System is continually updated to reflect the continuing entitlement of such members to such services.

Title VIII: Acquisition Policy, Acquisition Management, and Related Matters - Subtitle A: Provisions Relating to Major Defense Acquisition Programs - (Sec. 801) Directs the Secretary to define in defense contracting regulations the term "substantial savings" under multiyear contracts awarded by DOD, requiring to be considered as substantial savings, savings that exceed 10% of the total anticipated costs of carrying out a major defense acquisition program (MDAP) through annual contracts. Requires the head of the defense agency seeking the multiyear contract to report to the defense and appropriationscommittees specific facts demonstrating that the statutory requirements for entering into such a contract have been met. Requires a report from the Secretary to such committees, in each of 2008 through 2010, on savings achieved through the use of multiyear contracts.

(Sec. 802) Requires the program manager for an MDAP that has received Milestone B certification to immediately notify the milestone decision authority of any changes to the MDAP that: (1) are inconsistent with such certification; or (2) deviate significantly from the certification material provided to the milestone decision authority. Requires the milestone decision authority to receive a business case analysis prior to making a certification.

(Sec. 803) Directs the CG to report to the defense and appropriations committees on potential modifications of the DOD organization and structure for MDAPs.

(Sec. 804) Requires the Secretary to report to the defense and appropriations committees on: (1) DOD strategies for the allocation of funds and other resources under MDAPs; and (2) the extent of implementation of recommendations contained in the February 2003 report of the GAO entitled "Setting Requirements Differently Could Reduce Weapon Systems' Total Ownership Costs."

Subtitle B: Amendments Relating to General Contracting Authorities, Procedures, and Limitations - (Sec. 821) Requires that DOD task or delivery order contracts in excess of $100 million be awarded to multiple contractors (with certain exceptions). Establishes additional competition requirements (including requirements for debriefings and authorization of bid protests) for task or delivery orders in excess of $5 million under such multiple award contracts.

(Sec. 822) Outlines conditions under which a subsystem of, or component or spare part for, a major weapon system shall be treated as a commercial item and purchased under procedures established for the procurement of commercial items. Requires the contractor, in the case of a subsystem,component, or spare part purchased under commercial item authority, to provide data other than certified cost or pricing data that is adequate for evaluating the reasonableness of the price of the contract, subcontract, or modification under which which such system, subsystem, component, or spare part will be purchased.

(Sec. 823) Prohibits the use of time and materials contracts or labor-hour contracts to purchase as commercial items any category of commercial services other than: (1) commercial services procured for support of a commercial item, as defined under the Office of Federal Procurement Policy Act; or (2) emergency repair services.

(Sec. 824) Directs the Secretary, before purchasing a product listed in the latest edition of the Federal Prison Industries (FPI) catalog for which FPI does not have a significant market share, to conduct market research to determine whether the product is comparable to products available from the private sector that best meet the needs of DOD in terms ofprice, quality, and time of delivery. Authorizes the Secretary to purchase a product listed in the latest edition of the FPI catalog for w

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