Detailed Summary

Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 - <b>Division A: Department of Defense Authorizations - Title I: Procurement - Subtitle A: Authorization of Appropriations</b> - (Sec. 101) Authorizes appropriations for FY2009 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 FY2009 for: (1) defense-wide procurement; (2) National Guard and reserve equipment; and (3) the Rapid Acquisition Fund.

<b>Subtitle B: Army Programs </b>- (Sec. 111) Directs the Secretary of Defense (Secretary), for FY2010 and thereafter, to ensure that, in each budget submission to the President, a separate, dedicated procurement line item is designated for five specified elements of the Future Combat Systems (FCS) program, to the extent that the budget submission includes funding for such elements.

(Sec. 112) Prohibits the Secretary and the Secretary of the Army, for FY2009 and thereafter, from awarding a contract for low-rate initial or full-rate production of major elements of the FCS program to an entity under contract to perform the role of lead systems integrator for such program. Makes such prohibition inapplicable to: (1) contracts entered into in FY2009 or FY2010 for procurement of non-line of sight cannon vehicles; and (2) elements acquired through selected acquisition methods.

(Sec. 113) Requires a report from the Assistant Secretary of Defense for Networks and Information Integration to the congressional defense and appropriations committees on Army tactical radio fielding plans by March 30, 2009. Prohibits more than 75% of the FY2009 funds authorized under this Act for Army tactical radio systems from being obligated or expended until 30 days after such report is received.

(Sec. 114) Directs the Under Secretary of Defense for Acquisition, Technology, and Logistics (Under Secretary) to certify to the defense and appropriations committees that the Army reconnaissance helicopter has: (1) satisfactorily completed a limited user test; and (2) been approved to enter milestone C. Prohibits more than 20% of the FY2009 funds authorized for such helicopter from being obligated or expended until 30 days after such report is received.

<b>Subtitle C: Navy Programs </b>- (Sec. 121) Earmarks specified Navy procurement funds for commencement of the nuclear refueling and complex overhaul of the aircraft carrier U.S.S. Theodore Roosevelt during FY2009. Authorizes the Secretary of the Navy to enter into a contract for such purposes.

(Sec. 122) Amends the National Defense Authorization Act (NDAA) for Fiscal Year 2008 to require the Secretary of the Navy, in connection with a multiyear contract for the procurement of Virginia-class submarines, to certify to the defense and appropriations committees that the contract will be awarded to either the General Dynamics Electric Boat Division or the Northrop Grumman Newport News Shipbuilding Division, with the other contractor acting as the primary subcontractor to the contract.

(Sec. 123) Amends the NDAA for Fiscal Year 2006 to authorize additional adjustments to the per-vessel cost limits under the littoral combat ship program for fluctuations attributable to economic inflation after FY2007 or to the insertion of new technology.

(Sec. 124) Requires a report from the Secretary to the defense and appropriations committees on F/A-18 aircraft procurement. Earmarks Navy procurement funds for such purpose.

<b>Subtitle D: Air Force Programs </b>- (Sec. 131) Prohibits the Secretary of the Air Force from retiring any C-5A aircraft that would reduce their number below 111 until 45 days after submitting to the defense and appropriations committees: (1) a certification that any such retirement will not significantly increase operational risks of not meeting the National Defense Strategy; and (2) a cost analysis with respect to the aircraft to be retired.

(Sec. 132) Amends the John Warner National Defense Authorization Act for Fiscal Year 2007 (Warner Act) to require the Secretary of the Air Force to maintain at least 46 (currently, all) of the KC-135E aircraft retired after FY2006 in a condition that would allow recall for future service.

(Sec. 133) Amends the NDAA for Fiscal Year 2004 to repeal multiyear contracting authority for the procurement of tanker aircraft.

(Sec. 134) Directs the Secretary of the Air Force to report to the defense and appropriations committees on the process used for requirements development for the KC-(X) (aircraft tanker).

<b>Subtitle E: Joint and Multiservice Matters </b>- (Sec. 141) Requires the Secretary to: (1) designate an executive agent for procurement of body armor and associated components; and (2) designate a separate line item for such procurement in each defense budget for FY2010 and thereafter. Directs the Under Secretary to report to the defense and appropriations committees with respect to industrial base capacity and research and development objectives associated with body armor.

(Sec. 142) Requires the Comptroller General (CG) to: (1) audit the requirements generation process of the Department of Defense (DOD) for small arms procurement to determine if there are statutory or regulatory barriers to developing a small arms procurement requirement; and (2) report audit results to the defense and appropriations committees. Requires a comprehensive report from the Secretary to such committees on the small arms industrial base.

(Sec. 143) Directs the Secretary to: (1) establish a policy and acquisition strategy for intelligence, surveillance, and reconnaissance payloads and ground stations for manned and unmanned aerial vehicle systems, to be applicable throughout DOD, to achieve integrated research, development, test and evaluation, and procurement commonality; and (2) submit such policy and strategy to the defense, appropriations, and intelligence committees.

(Sec. 144) Requires the Secretary of the Navy to report to the defense and appropriations committees on future jet carrier trainer requirements.

<b>Title II: Research, Development, Test, and Evaluation - Subtitle A: Authorization of Appropriations</b> - (Sec. 201) Authorizes appropriations for FY2009 for the Armed Forces for research, development, test, and evaluation (RDT&amp;E). Earmarks specified amounts for the Defense Science and Technology Program.

<b>Subtitle B: Program Requirements, Restrictions, and Limitations</b> - (Sec. 211) Amends the Warner Act to require additional determinations as part of the FCS milestone review.

(Sec. 212) Directs the Assistant Secretary of Defense, Networks and Information Integration to report to the defense and appropriations committees assessing FCS communications network and software.

(Sec. 213) Requires the Secretary of the Army, for 2009 through 2015, to submit a selected acquisition report for each FCS manned ground vehicle variant.

(Sec. 214) Directs the Secretary, for FY2010 and thereafter, to ensure that a separate line item and program element is designated for the Sky Warrior unmanned aerial systems project.

(Sec. 215) Requires the Under Secretary to notify the defense and appropriations committees within five days after completion of specified actions with respect to a program baseline, cost estimate, and technology readiness assessment for the Warfighter Information Network-Tactical (WIN-T) Increment 3 program. Prohibits the obligation or expenditure of more than 20% of the FY2009 funds authorized for the program until 15 days after such notification is received.

(Sec. 216) Requires the Secretary of the Army, for FY2009 and thereafter, to fund specified joint cargo aircraft expenditures only through amounts made available for procurement or RDT&amp;E.

<b>Subtitle C: Missile Defense Programs </b>- Directs the: (1) Secretary to enter into an agreement with a federally funded research and development center (FFRDC) for an independent study of concepts and systems for boost phase missile defense; and (2) FFRDC to report its findings, conclusions, and recommendations to the defense and appropriations committees.

(Sec. 222) Prohibits any DOD funds for FY2009 or thereafter from being obligated or expended for procurement, site activation, construction, preparation of equipment for, or deployment of a long-range missile defense system in Europe until: (1) Poland and the Czech Republic have each signed and ratified the missile defense basing and status of forces agreements that allow for the stationing in their countries of U.S. missile defense assets and personnel needed to carry out such deployment; (2) 45 days have elapsed following receipt by the defense and appropriations committees of a report required under the NDAA for Fiscal Year 2008 concerning an independent assessment for ballistic missile defenses in Europe; and (3) the Secretary has certified to such committees that the proposed interceptor to be deployed under such system has demonstrated a high probability of working in an operationally effective manner and the ability to accomplish the mission.

<b>Subtitle D: Other Matters </b>- (Sec. 231) Adds to the responsibilities of the Director, Operational Test and Evaluation, with respect to the oversight of testing of personnel protective equipment. Includes such equipment under requirements for survivability testing before full-scale production. Requires the production milestone decision authority to notify such Director of any DOD decision to proceed to operational use of such equipment or to make procurement funds available for its purchase.

(Sec. 232) Directs the Secretary to: (1) assess the capability of historically black colleges and universities and minority serving institutions to participate in RDT&amp;E programs for DOD; and (2) report such assessment to the defense and appropriations committees.

(Sec. 233) Amends the NDAA for Fiscal Year 2008 to include within a required report certain descriptions and analyses concerning interoperability and security of information technologies for sharing health care information between DOD and the Department of Veterans Affairs. Requires the Director of the Department of Defense-Department of Veterans Affairs Interagency Program Office to develop or adopt technology-neutral information technology infrastructure guidelines and standards for use by such departments to effectively select and utilize information technologies.

(Sec. 234) Requires the Under Secretary to assess the feasibility of consolidating various technology transition accounts into a unified effort managed by a senior DOD official. Repeals the requirement for a technology transition initiative.

(Sec. 235) Directs the Secretary to: (1) conduct a comprehensive assessment of certain DOD acquisition programs that are considered major systems to identify vulnerabilities in the supply chain of each program's information processing systems that potentially compromise the level of trust in such systems; (2) develop a strategy for ensuring trust in the supply chain for acquisition programs; (3) issue a policy requiring certain trusted systems to employ only trusted foundry services to fabricate their custom-designed integrated circuits; and (4) submit the assessment and strategy to the defense and appropriations committees.

(Sec. 236) Prohibits the obligation or expenditure of more than 70% of the RDT&amp;E funds authorized for the enhanced AN/TPQ-36 radar system until the Secretary of the Army reports to the defense and appropriations committees describing the plan to transition the Counter-Rockets, Artillery, and Mortars program to a program of record.

(Sec. 237) Directs the Secretary and the Chairman of the Joint Chiefs of Staff (JCS) to: (1) assess a joint approach to the future development of vertical lift aircraft and rotorcraft for all military services; and (2) report assessment results to the defense and appropriations committees.

(Sec. 238) Authorizes funds for conventional prompt global strike capability development only for those activities expressly delineated in the expenditure plan for FY2008-FY2009 as required under the NDAA for Fiscal Year 2008 and submitted to the defense and appropriations committees, or those activities otherwise expressly authorized by Congress. Requires a report from the Secretary to such committees, concurrently with the President's budget for FY2010, concerning certain conventional prompt global strike concepts.

(Sec. 239) Authorizes the Secretary to establish a program, to be known as the Visiting NIH Senior Neuroscience Fellowship Program, at the Defense Advanced Research Projects Agency and the Defense Center of Excellence for Psychological Health and Traumatic Brain Injury.

<b>Title III: Operation and Maintenance - Subtitle A: Authorization of Appropriations</b> - (Sec. 301) Authorizes appropriations for FY2009 for operation and maintenance (O&amp;M) for the Armed Forces and specified activities and agencies of DOD.

<b>Subtitle B: Environmental Provisions </b>- (Sec. 311) Authorizes the Secretary or Secretary of the military department concerned, when engaged in a military operation (including construction) that may or will result in an adverse impact to one or more protected wildlife habitat or species, to make payments to a conservation banking program or a federally approved &quot;in-lieu-fee&quot; mitigation sponsor.

(Sec. 312) 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. 313) Amends the Sikes Act to allow DOD cooperative agreement authority for the management of natural resources to include certain maintenance and improvement of natural resources located off of a DOD installation.

(Sec. 314) Requires the Secretary to: (1) make the RDT&amp;E of technology related to unexploded ordnance detection a priority; and (2) accelerate the transition of promising detection instrument technology across DOD. Provides for the deployment of such technology and appropriate personnel training. Directs the Secretary to report to the defense committees concerning DOD activities undertaken for the transition to such technology.

(Sec. 315) Directs the Secretary to report to Congress a review of DOD policies concerning the sale and disposal of used motor vehicle lubricating oil, along with an evaluation of the feasibility and desirability of implementing policies to require closed loop recycling of used oil.

<b>Subtitle C: Workplace and Depot Issues </b>- (Sec. 321) Prohibits the duration of a public-private competition conducted pursuant to Office of Management and Budget (OMB) Circular A-76 or any other DOD function performed by DOD civilian employees from exceeding 540 days, commencing from the date that preliminary planning for such competition begins, and ending on the date a performance decision is rendered.

(Sec. 322) Requires the OMB Director to: (1) review the definition of &quot;inherently governmental function&quot; to ensure that only officers or employees of the federal government or members of the Armed Forces perform inherently governmental functions or other critical functions necessary for the mission of a federal department or agency; (2) develop a single definition that would address any deficiencies found; (3) provide criteria to ensure that officers, employees, or members holding such positions have sufficient expertise and technical capability to perform such inherently governmental or critical function; (4) take into account the final recommendations and related findings contained in the Final Report of the Acquisition Advisory Panel, and any other relevant reports or documents; and (5) report to specified congressional committees on actions taken.

(Sec. 323) Directs the Secretary to contract with an independent nonprofit entity or FFRDC for a study on the ability and efficiency of DOD depots to provide the logistics capabilities and capacity necessary for national defense. Requires: (1) an interim and final report from the entity or FFRDC chosen to the defense committees; and (2) the CG to review the final report and submit to such committees an assessment of the feasibility of the recommendations.

(Sec. 324) Requires the Secretary to develop guidelines for the establishment of a high-performing organization conducted through a business process reengineering initiative (with a prohibition on certain initiatives). Directs the Secretary or the Secretary concerned to: (1) submit to Congress a notification describing the assessment required for such guidelines; and (2) conduct, and submit to Congress, annual performance reviews of the participating organizations or functions under their jurisdiction.

(Sec. 325) Suspends, from the date of enactment of this Act through September 30, 2011, any study or public-private competition regarding the conversion to contractor performance of any DOD function performed by civilian employees.

(Sec. 326) Prohibits the Secretary of the Air Force from consolidating aircraft repair facilities and personnel of the active Air Force with such facilities and personnel of the Air National Guard until such Secretary consults with, and obtains the consent of, the National Guard Bureau. Requires a report from such Secretary to the defense committees on: (1) the criteria used to evaluate the feasibility of such consolidation; and (2) the findings of a Rand Corporation feasibility study on implementation of such consolidation.

(Sec. 327) Directs the Secretary of the Air Force, in determining which, if any, civilian personnel management functions may be appropriately consolidated under one command or in a central or regional location, to be guided by the anticipated positive or negative impact upon the productivity of the managed workforces at different commands and the impact upon mission accomplishment at such commands. Requires the analysis to be customized for each affected command. Prohibits the consolidation of specified functions with respect to Large Civilian Centers.

(Sec. 328) Requires a report from the Secretary of the Air Force to Congress on the effect of the reduction in firefighters on Air Force bases as a result of Air Force Program Budget Decision 720.

<b>Subtitle D: Energy Security </b>- (Sec. 331) Directs the Secretary, simultaneously with an annual report concerning DOD progress in meeting energy performance goals, to report to the defense and appropriations committees on operational energy management and the implementation of a required operational energy strategy.

(Sec. 332) Directs the Secretary, in the case of campaign analyses and force planning processes used to establish logistics capability requirements and inform acquisition decisions, to require that such analyses and processes consider the requirements for, and vulnerability of, fuel logistics and their relationship to operational capability. Requires the Secretary to: (1) develop and implement a methodology to enable the implementation of a fuel efficiency key performance parameter in the requirements development process; (2) require that the life-cycle cost analysis for new capabilities include the fully burdened cost of fuel during analysis of alternatives and evaluation of alternatives and acquisition program design trades; (3) prepare a plan for implementing the requirements of this section; (4) report to the defense and appropriations committees on progress made in implementing the requirements; and (5) within a three-year period after the enactment of this Act, certify to the such committees that the Secretary has complied with such requirements.

(Sec. 333) Directs the Secretary to study, and report to the defense and appropriations committees on, the feasibility of using solar energy to provide electricity at forward operating locations.

(Sec. 334) Directs the Secretary to study, and report to the defense and appropriations committees on, alternatives to reduce the life cycle emissions of coal-to-liquid fuels and potential uses of such fuels in meeting DOD's mobility energy requirements.

(Sec. 335) Amends the Energy Independence and Security Act of 2007 to provide an exception (with certain conditions) to the alternative fuel procurement requirement under such Act with respect to the purchase of a generally available fuel that is not an alternative or synthetic fuel or predominantly produced from a nonconventional petroleum source.

(Sec. 336) Directs the Secretary to study, and report to the defense and appropriations committees on, procedures and methods to measure and consider greenhouse gas emissions in the DOD acquisition process.

<b>Subtitle E: Reports </b>- (Sec. 341) Requires a report from the CG to the defense committees on the readiness of the regular and reserve components of the Armed Forces.

(Sec. 342) Directs the Secretary, at the same time as submission of the DOD budget for FY2010, to submit to the defense committees a plan to enhance the combat skills of Navy and Air Force personnel.

(Sec. 343) Requires a report from the CG to the defense committees on the use of Army Reserve and National Guard forces as an operational reserve.

(Sec. 344) Directs the CG to report to the defense committees on the link between the preparation and operational use of the Army's reserve forces.

(Sec. 345) Requires the CG to report to the defense committees on the adequacy of the funding, staffing, and organization of DOD's Military Munitions Response Program.

(Sec. 346) Directs the Secretary of the Navy to report to the defense and appropriations committees on the best option(s) for providing voyage repair capabilities to support all Navy ships operating at or near Guam.

<b>Subtitle F: Other Matters </b>- (Sec. 351) Extends through 2013 required reports concerning DOD compliance in meeting conditions prior to the obligation of funds for a defense business system modernization with a cost in excess of $1 million.

(Sec. 352) Requires the Secretary concerned to ensure that an item authorized to be loaned, given, or exchanged is demilitarized to the extent necessary to render the item unserviceable in the interest of public safety.

(Sec. 353) Repeals the requirement that the Secretary of the Air Force provide A-10 aircraft training and support to other military departments.

(Sec. 354) Directs the Secretary, at the same time as submission of the defense budget for FY2010 and thereafter, to submit to the President a consolidated budget justification display that covers all programs and activities of the Air Force Air Sovereignty Alert mission.

(Sec. 355) Expresses the sense of Congress that the Air Force should include full funding of the Air Sovereignty Alert mission in its baseline budget, and that the Air National Guard and such mission should be provided all necessary resources, personnel, and aircraft to support its mission now and in the future.

(Sec. 356) Requires the Secretary of the Air Force to revise its Air Freight Transportation Regulation Number 5, dated January 15, 1999, to conform with Defense Travel Regulations to ensure that freight covered by Regulation 5 is carried in accordance with commercial best practices based upon a mode-neutral approach.

(Sec. 357) Authorizes the Secretary of the Army to convey to the California Department of Forestry and Fire Protection three C-12 aircraft determined to be surplus to Army needs.

(Sec. 358) Earmarks specified FY2009 Joint Explosive Device Defeat Organization funds for the Irregular Warfare Support program.

(Sec. 359) Expresses the sense of Congress that the Secretary should: (1) in making decisions with respect to the procurement of munitions, develop methods to account for their full life-cycle costs; and (2) undertake a review of live-fire practices for the purpose of reducing unexploded ordnance and munitions-constituent contamination without impeding military readiness.

(Sec. 360) Limits the obligation of Air Force O&amp;M funds for the Air Combat Command Management Headquarters until the Secretary certifies to the defense and appropriations committees that, by no later than February 3, 2009, the Future Year's Defense Plan will include funding for 76 commonly configured B-52 aircraft.

(Sec. 361) Directs the Secretary to take certain steps to ensure an increased capacity of military working dogs, and that such dogs are procured as efficiently as possible and at the best value while maintaining the necessary level of quality and encouraging domestic breeding.

(Sec. 362) Earmarks specified Army Reserve O&amp;M funds for first term dental readiness and demobilization dental treatment.

<b>Title IV: Military Personnel Authorizations - Subtitle A: Active Forces</b> - (Sec. 401) Sets forth authorized end strengths for active-duty forces as of the end of FY2009.

(Sec. 402) Revises the permanent active-duty minimum end strength levels for the Army, Navy, Marine Corps, and Air Force.

<b>Subtitle B: Reserve Forces </b>- (Sec. 411) Sets forth authorized end strengths as of the end of FY2009 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 FY2009 for Army and Air Force dual status military technicians.

(Sec. 414) Provides a FY2009 limitation on the number of non-dual status Army and Air Force military technicians.

(Sec. 415) Sets, during FY2009, the maximum number of reserve personnel authorized to be on active duty for operational support.

(Sec. 416) Authorizes the President to waive any end strength limitation of reserve personnel authorized to be on active duty when a designation of a major disaster or emergency is in effect.

<b>Subtitle C: Authorization of Appropriations</b> - (Sec. 421) Authorizes appropriations for FY2009 for military personnel.

<b>Title V: Military Personnel Policy - Subtitle A: Officer Personnel Policy Generally</b> - (Sec. 501) Requires that, in the calculation of years of active service for a regular Army warrant officer for mandatory retirement purposes, such calculation shall include only years of active service as a warrant officer.

(Sec. 502) Requires a commission or warrant for the promotion of a deceased member to a higher grade to include a certification by the Secretary concerned that, at the time of death, the member was qualified for appointment to the higher grade.

(Sec. 503) Allows the Secretary concerned, during the one-year period beginning on October 1, 2013, to reduce from ten to eight years the minimum required period of active service as a commissioned officer for voluntary retirement purposes.

(Sec. 504) Increases from 80 to 81 the authorized number of Marine Corps general officers on active duty.

<b>Subtitle B: Reserve Component Management </b>- (Sec. 511) Extends to the Secretary of the Air Force (currently, only to the Secretary of the Army) the authority to defer the mandatory separation of dual status military technicians.

(Sec. 512) Increases the authorized end strengths for Marine Corps Reserve officers on active duty in the grades of major and lieutenant colonel for the purpose of meeting force structure requirements.

(Sec. 513) Allows: (1) National Guard officers to be considered for promotion when ordered to or serving on active duty in support of a contingency operation; and (2) National Guard and reserve officers so serving to be considered for promotions outside the unit in which they are serving.

(Sec. 514) Allows reserve officers assigned to duties with the Selective Service System or as National Guard property and fiscal officers to be retained in active status until age 62 (currently, 60). Extends similarly such retention authority with respect to certain reserve officers serving in the grades of major, lieutenant colonel, colonel, or brigadier general.

(Sec. 515) Authorizes the Secretaries of the Army or Air Force to retain reserve officers in the grade of lieutenant general beyond the mandatory retirement age for years of service, up until the officer becomes 66.

(Sec. 516) Authorizes the Secretary concerned to retain until age 68 National Guard and reserve chaplains and officers serving in health profession specialties.

(Sec. 517) Directs the Secretary of the Navy to: (1) conduct a study of procedures used by the Marine Corps Reserve during FY2001-FY2008 for the movement of personnel in and out of the Individual Ready Reserve; and (2) report study results to the defense and appropriations committees.

<b>Subtitle C: Joint Qualified Officers and Requirements </b>- (Sec. 521) Revises provisions concerning joint duty requirements for promotion to a general or flag officer position to reflect changes made under the Warner Act. Makes technical, conforming, and clerical changes to joint specialty terminology, including references to a joint qualified officer in lieu of a joint specialty officer.

(Sec. 523) Requires officers to be joint qualified in order to be appointed to grade O-7. Revises joint officer promotion objectives to recognize joint experience from any venue.

(Sec. 524) Conforms provisions concerning length of joint duty assignments to reflect changes made under the Warner Act.

(Sec. 525) Authorizes the JCS Chairman to exempt up to three (currently, one) reserve general and flag officers on the JCS from general and flag officer end strength limits.

(Sec. 526) Requires: (1) officer service as an adjutant general of a state National Guard to be treated as joint duty experience for purposes of possible assignment or promotion; (2) the Chief of the National Guard Bureau to report to the JCS Chairman and Congress as to which duty of National Guard officers in the Joint Force Headquarters of a state National Guard should qualify as joint duty experience; (3) the JCS Chairman to report to Congress on joint education courses available through DOD for the pursuit of joint careers by officers; (4) the Commanders of the United States Northern and Pacific Commands and the Chief of the National Guard Bureau to enter into a memorandum of understanding setting forth their operational relationships and individual roles and responsibilities during responses to domestic emergencies; and (5) the Secretary to review, and report to the defense committees on, the DOD role in defense of the homeland.

<b>Subtitle D: General Service Authorities </b>- (Sec. 531) Increases from six to eight years the maximum authorized reenlistment term.

(Sec. 532) Authorizes the Secretary concerned to establish a pilot program under which an officer or enlisted member may be released from active duty for a maximum three-year period to meet personal or professional needs, transferred to the Ready Reserve during such absence, then returned to active duty after the agreed-upon period. Limits participation to 20 officers and 20 enlisted members per year. Requires the member to serve at least two months for every month of program participation. Continues during program participation the officer's or member's entitlement to military medical and dental care, but suspends promotion eligibility. Reduces basic pay, and suspends special and incentive pays, during such period. Allows the program to be conducted from January 1, 2009, through December 31, 2014.

<b>Subtitle E: Education and Training </b>- (Sec. 541) Makes permanent (currently terminates after the 2007-2008 academic year) the authority of the Secretaries of the Navy and Air Force to increase by up to 100 per year (with a total limit of 4,400) the annual enrollment of midshipmen and cadets at their respective military academies.

(Sec. 542) Permits students, officers, and representatives of a foreign country to attend a U.S. military academy for periods of up to two weeks if determined that such attendance will contribute significantly to the development of foreign language, cross-cultural interactions and understanding, and cultural immersion of cadets or midshipmen.

(Sec. 543) Limits to Level I of the Executive Schedule the authorized compensation for the President of the Naval Post Graduate School, and limits the aggregate compensation (salary, bonuses, allowances, etc.) to the salary authorized for the Vice President of the United States.

(Sec. 544) Increases from 25 to 125 the number of defense industry employees authorized to receive instruction at any one time at the Naval Post Graduate School.

(Sec. 545) Requires servicemembers to complete their service obligations under honorable conditions in order to qualify for educational assistance for reserve personnel supporting contingency operations.

(Sec. 546) Conforms the maximum limits for education loan repayment programs for reserve health professionals to the maximum limits authorized for active-duty health professionals.

(Sec. 547) Directs the Secretary to: (1) develop and implement a plan to establish and support 4,000 Junior Reserve Officers' Training Corps (ROTC) units not later than FY2020; (2) work with local educational agencies to increase the employment in Junior ROTC units of retired military members, especially those wounded or injured while deployed in a contingency operation; and (3) report to the defense and appropriations committees upon completion of the support plan. Requires each department Secretary to develop and implement a segment of the Junior ROTC curriculum that includes the contribution and defense historiography of gender- and ethnic-specific groups.

(Sec. 548) Authorizes the Secretary of the Army to correct, and make any necessary payments in connection with, amounts of Army College Fund benefits to which members or former members may be entitled under an Army Incentive Program contract.

(Sec. 549) Revises provisions authorizing the following officials to confer appropriate degrees upon graduates of such institutions: (1) the President of the National Defense Intelligence College; (2) the President of the National Defense University; (3) the Commandant of the United States Army Command and General Staff College; (4) the Commandant of the United States Army War College; (5) the President of the Naval Post Graduate School; (6) the President of the Naval War College; (7) President of the Marine Corps University; and (8) the commander of Air University. Requires: (1) the Secretary of Education to recommend approval of the degree to be conferred; (2) accreditation of the curriculum leading to such degree; and (3) the Secretary of Defense to notify the defense committees with respect to each degree-granting authority under this section.

(Sec. 550) Authorizes the Secretary concerned to enter into partnerships with educational institutions to improve the accessibility and flexibility of college courses available to eligible members of the Armed Forces.

<b>Subtitle F: Military Justice </b>- (Sec. 551) Requires the Staff Judge Advocate to the Commandant of the Marine Corps to serve in the grade of major general.

(Sec. 552) Deems as a standing order the issuance of a military protective order by a military commander until: (1) the allegation prompting the protective order is resolved by investigation, courts martial, or other command-determined adjudication; or (2) the military commander issues a new order.

(Sec. 553) Requires the commander of a military installation to notify the appropriate civilian authorities in the event that a military protective order is issued against a member and any individual involved in the order does not reside on a military installation.

(Sec. 554) Directs the Secretary to implement a centralized, case-level database for the collection and maintenance of information regarding sexual assaults involving a member of the Armed Forces. Requires the: (1) Secretary to submit to the defense and appropriations a database implementation plan; and (2) database to be used to develop sexual assault-related reports to Congress as required under various defense authorization Acts and federal armed forces provisions.

<b>Subtitle G: Decorations, Awards, and Honorary Promotions </b>- (Sec. 561) Authorizes the Secretary concerned to replace, on a one-time basis and without charge, a military decoration upon request of the recipient or the immediate next-of-kin of a deceased recipient.

(Sec. 562) Authorizes and requests the President to award the Medal of Honor to former Chief Master Sergeant Richard L. Etchberger for acts of valor during the Vietnam War.

(Sec. 563) Entitles Brigadier General Charles E. Yeager, United States Air Force (retired), to the rank of major general while on the retired list of the Air Force.

(Sec. 564) Authorizes and requests the President to appoint Rear Admiral Wayne E. Meyer, United States Navy (retired), to the grade of vice admiral on the retired list of the Navy.

(Sec. 565) Directs the Secretary concerned to award the Vietnam Service Medal to veterans who participated in the Mayaguez rescue operation of May 12-15, 1975.

(Sec. 566) Authorizes the Secretary of the Army to retroactively award the Army Combat Action Badge to any previously unrecognized Army veteran who participated in combat with the enemy during the period beginning on December 7, 1941, and ending on September 18, 2001.

<b>Subtitle H: Impact Aid </b>- (Sec. 571) Earmarks specified DOD O&amp;M funds for assistance to: (1) local educational agencies that benefit dependents of military personnel and DOD civilian employees; and (2) schools with enrollment changes due to base closures, force structure changes, or force relocations.

(Sec. 572) Amends the Elementary and Secondary Education Act of 1965 to allow local educational agencies that are heavily impacted by base closures and force structure changes to use the current school year student population (currently, the previous year's population) to determine the appropriate amount of impact aid funding.

<b>Subtitle I: Military Families </b>- (Sec. 581) Authorizes DOD to provide a burial flag to a surviving spouse, or remarried surviving spouse, of a military decedent if the person authorized to direct the disposition of remains is someone other than a spouse.

(Sec. 582) Authorizes the Secretary to establish programs to provide tuition assistance and other support to spouses of members for pursuing education and/or training that expands employment and career opportunities.

(Sec. 583) Expresses the sense of Congress that the Secretaries concerned should provide honor guard details for the funerals of veterans.

<b>Subtitle J: Other Matters </b>- (Sec. 591) Allows the President to use units and members of the reserves (including the Coast Guard Reserve) as part of federal aid for state governments, enforcing federal authority, and responding to major public emergencies.

(Sec. 592) Requires that payments of claims resulting from the decision of a board of correction of military records to set aside a conviction by court-martial include interest calculated from the date of conviction to the date the payment is made. Specifies the rate of interest to be used. Applies this section to any decision to set aside a court-martial made on or after October 1, 2007.

(Sec. 593) Extends through December 31, 2010, a limitation on the reduction of personnel of agencies responsible for the review and correction of military records.

(Sec. 594) Permits the President to authorize the Secretary, and the Secretary of Homeland Security with respect to the Coast Guard when not operating as a service for the Navy, to order any unit or member of the reserves to active duty for a major disaster or emergency.

(Sec. 595) Establishes the Senior Military Leadership Diversity Commission to study, and report to the President and Congress on, diversity within the senior leadership of the Armed Forces, with a goal toward the advancement of minority members to such positions. Terminates the Commission 60 days after submission of such report.

(Sec. 596) Provides that, in case of a member with minor dependents who has a spouse who is also a member, and the spouse is deployed in an area for which imminent danger pay is authorized, the member may request a deferment of deployment to such an area until the spouse returns from such deployment.

(Sec. 597) Authorizes additional appropriations (with a corresponding offset) to carry out honor functions at military funerals.

<b>Title VI: Compensation and Other Personnel Benefits - Subtitle A: Pay and Allowances </b>- (Sec. 601) Waives any FY2009 pay increases tied to increases in the General Schedule of Compensation for government employees. Increases by 3.9%, effective January 1, 2009, the rates of basic pay for military personnel.

(Sec. 602) Makes permanent (currently, ends on December 31, 2008) the prohibition on charges for meals received at military medical treatment facilities by members receiving continuous care for an injury, illness, or disease incurred in or aggravated by service in Operations Iraqi Freedom or Enduring Freedom or other designated combat zone.

(Sec. 603) Makes the housing standard used in the calculation of the basic allowance for housing for noncommissioned officers in the grade of E-8 the same as the standard used for noncommissioned officers in the grade of E-9.

(Sec. 604) Increases from $180 to $290 per day the maximum authorized reimbursement for temporary lodging expenses in connection with a permanent change of station.

(Sec. 605) Requires the Secretary concerned to pay one member of a married couple, both of whom are members who reside together with dependents, a full family separation allowance, and the other member one-half of such allowance, when both members are simultaneously assigned to duty under the following conditions: (1) permanent duty stations where dependents are not authorized; (2) deployed ships for more than 30 days; or (3) temporary duty away from the member's permanent duty station for more than 30 days.

(Sec. 606) Authorizes a member who accepts an appointment or reappointment as an officer without a break in service to retain the pay and allowances to which the member was entitled to in the previous grade if it is more than the pay and allowances to which the member is entitled in the new position.

(Sec. 607) Extends through 2009 the authority for income replacement payments (matching of civilian compensation) for reserve members experiencing extended and frequent mobilization for active-duty service.

(Sec. 608) Requires pay raises for members during FY2010-FY2013 to be one-half of one percent higher than the raise calculated for private sector employees through the use of the Employment Cost Index.

<b>Subtitle B: Bonuses and Special and Incentive Pays</b> - (Sec. 611) Extends through 2009 specified authorities currently scheduled to expire at the end of 2008 with respect to certain special pay and bonus programs within the regular and reserve Armed Forces.

(Sec. 616) Increases the maximum bonus and stipend amounts authorized for nurse officer candidates.

(Sec. 617) Allows nuclear officer incentive pay agreements to be of any duration beyond a minimum of three years. (Currently, such agreements allow for a three, four, or five-year period.)

(Sec. 618) Makes technical amendments to various provisions to conform to changes in special and incentive pays adopted in the NDAA for Fiscal Year 2008.

(Sec. 619) Authorizes the Secretary concerned to pay a skill proficiency bonus of up to $12,000 annually to a member enrolled in an officer training program who is also in training to acquire proficiency in a critical foreign language or expertise in foreign cultural studies. Includes certain Senior ROTC members under the bonus program. Directs the Secretary to conduct a pilot program through 2013 to provide a skill proficiency bonus to a reserve member in an active status while such member participates in an education or training program to acquire such proficiency or expertise.

(Sec. 620) Designates qualified psychologists, registered nurses, and other mental health practitioners as the Secretary concerned may designate as critically-short wartime specialties for which individuals in such professions will be eligible for a health professions bonus of up to $100,000 for each 12-month period of obligated service for which they agree to serve in an active status in the reserves. Terminates such designation at the end of FY2010.

<b>Subtitle C: Travel and Transportation Allowances </b>- (Sec. 631) Authorizes an increased weight allowance for the shipment of household goods during permanent changes in station for noncommissioned officers in pay grades E-5 through E-9.

(Sec. 632) Authorizes an additional 200 pounds in such weight allowance when shipping materials associated with employment or community support volunteer or charity activities of a member's spouse.

(Sec. 633) Entitles a member, in connection with an evacuation from a permanent station in a foreign area, to the transportation of up to two family household pets.

<b>Subtitle D: Retired Pay and Survivor Benefits </b>- (Sec. 641) Requires that the calculation of retired pay for reserve members who are retired or placed on the temporary disability retired list be based on the member's total years of service in lieu of active duty years of service when the retirement is based on a disability incurred under circumstances for which the member was awarded the Purple Heart.

(Sec. 642) Authorizes surviving spouses or former spouses who previously transferred their Survivor Benefit Plan (SBP) annuity to a child or children to reclaim the annuity after the termination of a marriage if the child or children are no longer eligible for the annuity due to loss of their dependent status, death, or other cause.

(Sec. 643) Extends to the survivors of members who die while serving on active duty the receipt of a special survivor indemnity allowance for persons affected by a required SBP annuity offset due to the concurrent receipt of dependency and indemnity compensation.

(Sec. 644) Authorizes reserve personnel who serve in an active reserve status in the Selected Reserve for at least two years after becoming eligible for active-duty retirement to elect a non-regular retirement for which they are qualified. Authorizes the Secretary concerned to reduce the two-year service requirement for members recalled to serve as an adjutant or assistant adjutant general within the National Guard if the member serves at least six months in such position. States that a reserve member shall be deemed to have attained retirement eligibility after meeting all qualifying criteria without regard to whether the member actually retired or received retired or retainer pay.

(Sec. 645) Provides a recomputation of retired pay and adjustment of retired grade of reserve members to reflect post-retirement service.

(Sec. 646) Requires the Secretary to determine if the phased elimination of the two-tier SBP annuity computation and related Supplemental Survivor Benefit Plan resulted in some annuitants receiving a smaller annuity than they would have if the two-tier system had not been eliminated, and, if so, to restore the annuity to the higher amount.

(Sec. 647) Prohibits the Secretary concerned from presuming deceased a military retiree missing in Iraq or Afghanistan after August 1, 2007, until the earlier of seven years after the person was missing or the date the death is confirmed and a death certificate is delivered to the next of kin. Requires monthly retired pay to be resumed and any retired pay that may have been due following the declaration of the presumption of death to be retroactively paid to the family of the retiree.

(Sec. 648) Makes eligible for disability retired pay and separation pay after January 1, 2000, a cadet or midshipman who was discharged or released from an enlisted grade in order to accept an appointment as a cadet or midshipman.

<b>Subtitle E: Commissary and Nonappropriated Fund Instrumentality Benefits and Operations </b>- (Sec. 651) Provides for the use of surcharge proceeds derived from initiatives that provide reserve members, retired members, and other members eligible for commissary benefits, but without access to commissary stores, improved access through the use of mobile services and equipment.

(Sec. 652) Extends through 2013 a moratorium on studies to compare the cost-effectiveness of commissary operations employing federal vs. private employees.

(Sec. 653) Authorizes the use of appropriated funds to purchase and maintain specialized golf carts to accommodate persons with disabilities, and the use of such carts on DOD golf courses where such carts can be safely operated.

(Sec. 654) Directs the Secretary to establish a Resale Activities Review Board to determine whether material sold or rented, or proposed to be sold or rented, on DOD property is sexually explicit and therefore barred from sale or rental. Requires the Board to meet within one year after appointment of its members.

(Sec. 655) Prohibits a military exchange store or DOD nonappropriated fund instrumentality (NFI) from purchasing for resale any military decorations, ribbons, badges, medals, insignia, or other uniform accouterments not produced in the United States. Provides exceptions when: (1) a satisfactory quality and quantity cannot be procured; or (2) purchase outside the United States is in the best interest of members. Requires congressional notification when an exception is exercised.

(Sec. 656) Authorizes the Secretary to pay post or cost of living allowances to an NFI employee who is a U.S. citizen and is or was employed in a full-time position outside the continental United States between December 1, 2001, and December 31, 2011.

(Sec. 657) Directs the Secretary to: (1) conduct a study evaluating the propriety, patron convenience, and financial utility of including wine and beer as authorized commissary merchandise; and (2) report study results to Congress.

<b>Subtitle F: Other Matters </b>- (Sec. 661) Authorizes the Secretary of the Army to pay a recruitment referral bonus to a civilian who has completed a training course provided by the Secretary concerning procedures to recruit individuals for enlistment in the Army.

(Sec. 662) Provides that the estate of a member who dies other than as a result of the member's misconduct, or is retired or separated due to disability, shall not be required to repay any portion of a previously-paid bonus or similar benefit. Requires the full amount of any such bonus or benefit to be paid within 90 days of such death, retirement, or separation. Authorizes the Secretary concerned to continue payment of any unpaid portion of such a bonus or benefit when such Secretary determines that imposition of the repayment or termination requirements would be contrary to a personnel policy or management objective, against equity and good conscience, or contrary to the best interests of the United States.

(Sec. 663) Requires the Secretary to develop, maintain in handbook form, and periodically update a comprehensive description of the compensation and other benefits to which a member and his or her family would be entitled upon the member's separation or retirement due to a serious injury or illness. Requires the Secretary concerned to provide the appropriate handbook to each member, or his or her representative, as soon as practicable following such injury or illness.

(Sec. 664) Directs the Secretary to provide for a program under which postal benefits (in the form of free vouchers) are provided to members who are: (1) serving in Iraq or Afghanistan; or (2) hospitalized at a military medical facility as a result of a disease or injury incurred as a result of such service. Outlines program requirements and limitations, including voucher and mailing limits. Provides program funding.

<b>Title VII: Health Care Provisions - Subtitle A: Improvements to Health Benefits </b>- (Sec. 701) Extends through FY2009 the prohibition against increasing the charges for: (1) premium and copayments under TRICARE (a DOD managed health care program) Prime; and (2) premiums under TRICARE Standard for members of the reserves.

(Sec. 702) Limits to specified amounts during FY2009 the copayments for generic, formulary, and nonformulary drugs provided through the TRICARE retail pharmacy program.

(Sec. 703) Prohibits the Secretary concerned from converting any military medical or dental position to a civilian medical or dental position on or after October 1, 2008. Restores to a military medical or dental position any position previously converted to a civilian medical or dental position, but not filled by a civilian, beginning on October 1, 2004, and ending on September 30, 2008.

(Sec. 704) Directs the Secretary to provide chiropractic services for members entitled to medical care under the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS). Authorizes the Secretary to conduct one or more demonstration projects to provide such care to deployed personnel.

(Sec. 705) Requires the Secretary to recalculate TRICARE Standard premiums based on actual cost data.

(Sec. 706) Directs the Secretary to: (1) develop a plan to establish a program to build cooperative health care arrangements and agreements between military installations projected to grow and local and regional non-military health care systems; and (2) report annually to the defense committees on program results.

(Sec. 707) Requires the Secretaries of Defense and Veterans Affairs, before a facility may be designated a combined DOD-VA medical facility, to issue a signed agreement that specifies a binding operational agreement on the following areas: (1) patient priority categories; (2) budgeting; (3) staffing; (4) construction; and (5) physical plant management.

(Sec. 708) Directs the Secretary to: (1) conduct a demonstration project to assess the feasibility and efficacy of providing a behavioral health care provider locator and appointment assistance service to reserve members; and (2) report to the defense and appropriations committees a plan to implement the project, regular project updates, and a final project evaluation. Terminates project authority at the end of FY2011.

<b>Subtitle B: Preventive Care </b>- (Sec. 711) Directs the Secretary to waive all copayments for TRICARE beneficiaries other than Medicare-eligible beneficiaries who currently pay for preventive services. Allows the Secretary to refund copayments of Medicare-eligible beneficiaries.

(Sec. 712) Directs the Secretary to: (1) conduct a three-year demonstration project to evaluate the efficacy of providing incentives to encourage healthy behaviors on the part of eligible military health system beneficiaries; and (2) annually, during the project's duration, evaluate the project and report to the defense committees on its effectiveness in improving health risk measures of participants.

(Sec. 713) Requires the Secretary to: (1) establish a smoking cessation program under the TRICARE program, to be made available to all TRICARE beneficiaries who are not Medicare-eligible; (2) submit to the defense and appropriations committees a program implementation plan; and (3) report to such committees on such program. Provides program funding.

(Sec. 714) Directs the Secretary, during the period beginning on January 1, 2009, and ending on December 31, 2011, to conduct a demonstration project to evaluate the efficacy of providing an annual preventive health services allowance to members serving on active duty for more than 30 days who meet medical and dental readiness requirements. Limits project participation to 1,500 from each service branch. Provides for an annual allowance of $500 for members without dependents and $1,000 for members with dependents. Requires the Secretary to: (1) specify the types of preventive health services that may be procured through the use of such allowance; (2) monitor and record the health of members receiving the allowance and their dependents; and (3) report to Congress in 2010 and 2012 on project status.

<b>Subtitle C: Wounded Warrior Matters </b>- (Sec. 721) Directs the Secretary to establish within DOD a center of excellence in the prevention, diagnosis, mitigation, treatment, and rehabilitation of hearing loss and auditory system injury incurred by members while serving on active duty. Requires: (1) collaboration with the Secretary of Veterans Affairs, institutions of higher education, and other appropriate public and private entities in the carrying out of center responsibilities; (2) the center to establish a registry of information for the tracking of center patients, to be known as the Hearing Loss and Auditory System Injury Registry; (3) the coordination of center care and benefits with the VA's National Center for Rehabilitative Auditory Research and the auditory system impairment services of the Veterans Health Administration; and (4) the Secretaries of Defense and Veterans Affairs to jointly ensure the utilization of Registry information by appropriate DOD and VA hearing specialist personnel.

(Sec. 722) Amends the NDAA for Fiscal Year 2008 to allow for the treatment of all military eye injuries (currently, only eye injuries incurred in combat) at the center of excellence in the prevention, diagnosis, mitigation, treatment, and rehabilitation of military eye injuries.

(Sec. 723) Requires the Secretary to designate a National Casualty Care Research Center to consist of the program known as the combat casualty care research program at the Army Medical Research and Materiel Command. Outlines Center activities, including a public-private partnership for funding clinical and experimental studies in combat injury and a full spectrum of combat injury research and evaluation. Provides Center funding.

(Sec. 724) Directs the Secretary to establish a research program within the Defense Health Program's research and development function to conduct peer-reviewed medical research at military and civilian institutions designed to develop scientific information aimed at saving injured extremities, avoiding amputations, and preserving and restoring the function of injured extremities. Requires a program report from the Secretary to Congress. Terminates the program at the end of FY2013.

(Sec. 725) Directs the Secretary to: (1) review policies and processes for the delivery of mail intended as measures of support and addressed generally (without specific names) to wounded and injured members in military medical treatment facilities and other locations where members are treated and rehabilitated; and (2) report to the defense committees on review results and ongoing and projected actions to correct or modify such policies and processes.

(Sec. 726) Requires the Secretary to: (1) conduct a two-year demonstration project to assess the feasibility and efficacy of providing a face-to-face post-deployment mental health screening between a member and a mental health care provider; and (2) submit to the defense and appropriations committees an implementation plan and an interim and final project report.

<b>Subtitle D: Other Matters </b>- (Sec. 731) Directs the Secretary to report to the defense and appropriations committees on the exercise of the authority to pay a stipend for certain reserve members for maintaining health care coverage for dependents with special health care needs.

(Sec. 732) Requires the Secretary to report to such committees a plan for including autistic dependents of military retirees in the Extended Care Health Option (ECHO) program.

(Sec. 733) Directs the Secretary to ensure that autistic dependents enrolled in the ECHO program are eligible to receive a minimum of $5,000 per month for autistic therapy services. Expresses the sense of Congress that the Secretary should ensure that the process for determining eligibility for such services is conducted in an expeditious manner and without delay. Requires the Secretary to study, and report to the defense committees on, autistic therapy services in DOD.

(Sec. 734) Requires a report from the Secretary to Congress on measures to implement recommendations in the report entitled &quot;Review of the Toxicologic and Radiologic Risks to Military Personnel from Exposure to Depleted Uranium During and After Combat.&quot;

(Sec. 735) Directs the Secretary to study and report to the defense and appropriations committees on mental health risks associated with the performance of military duties.

(Sec. 736) Requires the CG to: (1) review DOD implementation of recommendations made by the Department of Defense Task Force on Mental Health to ensure a full continuum of psychological health services and care for members and their families; and (2) report review results to the defense and appropriations committees.

(Sec. 737) Authorizes the provision of certain military transitional health care for members separated from active duty who agree to become members of the Selected Reserve of the Ready Reserve.

<b>Title VIII: Acquisition Policy, Acquisition Management, and Related Matters - Subtitle A: Acquisition Policy and Management </b>- (Sec. 801) Requires the Secretary of the Air Force, not later than ten days after a ruling by the World Trade Organization (WTO) that either or both the United States or the European Union (or any associated entity of either) has provided illegal subsidies to a manufacturer of large commercial aircraft, to begin a review of the impact of such subsidies on the source selection for the KC-45 aerial refueling aircraft program. Requires review completion within 90 days after the WTO ruling. Directs such Secretary, if necessary after the review, to take corrective measures to ensure that the effect of such subsidies is removed and the KC-45 source source selection process is fair to all offerors.

(Sec. 802) Directs the Secretary to: (1) commission a study and report by a FFRDC to assess the effectiveness of DOD processes for the generation of urgent operational need requirements, as well as the acquisition processes used to fulfill such requirements; and (2) submit study and report results to the defense and appropriations committees.

(Sec. 803) Requires the Secretary to issue guidance requiring that all unique tooling associated with the production of hardware for a major defense acquisition program (MDAP) be preserved and stored through the end of the service life of the item associated with the MDAP.

(Sec. 804) Prohibits the Secretary from contracting for the procurement of goods or services from any foreign person to which the government of a foreign country that is a member of the WTO has provided a subsidy if the United States has requested consultation with that foreign country on the basis that the subsidy is a prohibited subsidy and either: (1) the dispute before the WTO has not been resolved; or (2) the WTO has ruled that the subsidy is a prohibited subsidy under the Agreement on Subsidies and Countervailing Measures. Provides additional prohibition applicability with respect to: (1) joint ventures, partnerships, or other cooperative agreements of which that foreign person is a member; and (2) subcontracts and task or delivery orders under such a contract. Provides prohibition exceptions, including contracts under an MDAP that has received Milestone B approval as of the date of enactment of this Act. Authorizes the President to waive such prohibition under a determination that failure to waive would result in a significant and imminent threat to national security. Continues such prohibition until the illegal subsidies dispute is resolved.

(Sec. 805) Directs the Secretary to: (1) prescribe regulations regarding the application of a domestic industrial base evaluation factor during source selection for a MDAP; and (2) notify the defense and appropriations committees at least 30 days before the issuance of a request for proposal for any MDAP that will not use a domestic industrial base evaluation factor during the source selection process.

(Sec. 806) Requires the Secretary to ensure that contracting officials identify and evaluate, at all stages of the acquisition process, opportunities for the use of commercial software and, if practicable, use such software instead of developing new software.

(Sec. 807) Directs the Secretary to prescribe regulations regarding the comprehensive evaluation of a proposal for a MDAP for which a significant proportion of the research, design, development, manufacturing, assembly, or test and evaluation will be performed outside the United States. Requires such regulations to apply to any subcontractor performing a significant portion of any such work.

<b>Subtitle B: Amendments to General Contracting Authorities, Procedures, and Limitations </b>- (Sec. 811) Authorizes the Secretary, until the end of FY2012, to: (1) designate any category of acquisition positions within DOD as shortage category positions; and (2) utilize expedited hiring authorities to recruit and appoint highly qualified persons to such positions.

(Sec. 812) Defines the term &quot;system&quot; for purposes of the Defense Acquisition Challenge program.

(Sec. 813) Directs the Secretary to require the Secretary of each military department and the Under Secretary (with respect to certain defense agencies and activities) to establish procedures and issue guidance to ensure the proper development, assignment, and employment of members in the acquisition field to achieve specified defense acquisition objectives, including the appropriate use of military personnel in contingency contracting. Requires the Secretary to: (1) establish for each military department a minimum number of billets (positions) for acquisition personnel that are reserved for general and flag officers; and (2) ensure that a portion of such billets involve command of organizations primarily focused on contracting. Requires annual implementation reports from the military department Secretaries and the Under Secretary.

(Sec. 814) Directs the Secretary to issue policy guidance with respect to the use of an agreement not subject to the Federal Acquisition Regulation (non-FAR agreement) for the development of a major weapon system or item of personnel protective equipment. Requires: (1) the guidance to address the interests and rights of the United States and a party to such an agreement in technical data developed under the agreement; (2) whenever practicable, a non-FAR agreement to contain appropriate provisions related to technical data; (3) the program manager for a major weapon system or item of personnel protective equipment so developed to assess the long-term technical data needs of such system or item; and (4) a report from the Secretary to the defense committees on the implementation of this section.

(Sec. 815) Amends the Office of Federal Procurement Policy Act to state that cost accounting standards established under such Act apply regardless of whether a contract or subcontract is performed inside or outside the United States.

<b>Subtitle C: Provisions Relating to Inherently Governmental Functions </b>- (Sec. 821) Directs the: (1) Secretary to develop a standard policy aimed at preventing personal conflicts of interest by employees of DOD contractors that is similar to the DOD policy aimed at preventing such conflicts by DOD civilian employees; and (2) Department of Defense Panel on Contracting Integrity (established under the Warner Act) to make recommendations on the feasibility of applying certain procurement integrity rules to employees of DOD contractors to include rules related to improper business practices, personal conflicts of interests, and related matters.

(Sec. 822) Requires the Secretary to develop guidance on the exact meaning, and appropriate DOD use, of personal service contracts.

(Sec. 823) Allows a function that is a product support integrator function to be performed only by a member of the Armed Forces or DOD employee.

(Sec. 824) Requires current regulations concerning contractors performing private security functions to be modified to ensure that private security contractors are not authorized to perform inherently governmental functions in an area of combat operations. Directs the Secretary to: (1) issue supplementary guidance describing functions that should not be performed because they constitute inherently governmental functions; (2) periodically review private security functions in areas of combat operations to ensure conformity with such requirements; and (3) report to the defense committees, during each of 2009 through 2011, on the results of the most recent review.

<b>Subtitle D: Defense Industrial Security </b>- (Sec. 831) Sets forth new provisions concerning defense industrial security. Prohibits a DOD contractor from being granted custody of classified information unless the contractor has a facility clearance. Sets forth facility clearance requirements, including the safeguarding of classified information in its possession and compliance with all DOD security agreements, contract provisions, and relevant regulations. Directs the Secretary to require an entity with a facility clearance to require the directors on its board of directors to ensure that the entity employs and maintains policies and procedures to meet DOD's general requirements for facility clearances. Authorizes the Secretary to waive clearance requirements for national security reasons, but to notify the defense committees of each waiver. Outlines requirements relating to security management and management responsibilities of entities with facility clearances. Requires an entity with a facility clearance to report to the Secretary any event that affects the status of the clearance, the safeguarding of classified information, or the entity's compliance with DOD security agreements, contracts, or regulations.

(Sec. 832) Directs the Secretary, before granting a facility clearance to an entity, to determine whether the entity is under foreign ownership control or influence (FOCI), i.e., the foreign interest has the power to direct or decide matters affecting the management or operations of that entity that may result in unauthorized access to classified information, an adverse impact on the performance of classified contracts, or an adverse affect on the entity's compliance with DOD security agreements, contracts, or regulations. Outlines FOCI factors. Authorizes the Secretary, if an entity with a facility clearance is determined to be under FOCI, to take appropriate mitigation measures, including the establishment within the entity of a Government Security Committee, to ensure entity compliance with DOD security agreements, contracts, or regulations. Requires appropriate mitigation measures to be agreed to within six months after a FOCI determination. Requires the: (1) Secretary to revoke an entity's facility clearance if there exists the possibility of unauthorized access to classified information or an adverse security effect; (2) entity to notify the Secretary when any material FOCI change occurs; and (3) entity to notify the Secretary when entering into a proposed merger, acquisition, or takeover by a foreign person.

(Sec. 833) Directs the Secretary to notify the defense committees within 30 days after the: (1) revocation or suspension by the Secretary of a facility clearance of an entity determined to be under FOCI; or (2) receipt by the Secretary of a notification that the entity has entered into negotiations for a proposed merger, acquisition, or takeover by a foreign person. Requires biannual reports from the Secretary to the defense committees concerning entities holding facility clearances, FOCI mitigation measures in place, the suspension or revocation of facility clearances, and related matters. Directs the Secretary to study and report to Congress on investments in entities holding clearances under this Subtitle.

<b>Subtitle E: Other Matters </b>- (Sec. 841) Provides for the determination of government rights in the design of DOD vessels, boats, and craft, and components thereof.

(Sec. 842) Authorizes the Secretary of: (1) Defense to register and license trademarks belonging to defense agencies and defense field activities; and (2) Homeland Security to retain fees from the licensing of intellectual property owned and controlled by the Coast Guard when not operating as a service in the Navy.

(Sec. 843) Rearranges federal provisions concerning certifications of milestone decisions for MDAPs so that provisions requiring certification of a Milestone A decision precedes provisions requiring certification of a Milestone B decision.

(Sec. 844) Directs the Secretary to study, and report to the defense committees on, weaknesses in DOD earned value management data and implementation.

(Sec. 845) Requires the Secretary to report to the defense committees on market research conducted with respect to the acquisition of commercial items in the DOD procurement of supplies and services.

(Sec. 846) Requires the Secretary concerned to submit to the defense and appropriations committees, in connection with MDAP baseline descriptions, a system development and demonstration benchmark report for each of the following MDAPs: (1) BAMS, broad area maritime surveillance unmanned aerial vehicle; (2) CSAR-X, combat search and rescue helicopter; (3) JLTV, joint light tactical vehicle; (4) KC-45A, aerial refueling tanker; (5) VH-71, presidential helicopter, increment II; and (6) Warrior-Alpha, unmanned aerial vehicle. Directs the Under Secretary to establish a Configuration Steering Board for each such MDAP, to oversee any proposed alteration to requirements or to technical configurations during system development and demonstration. Requires the Secretary concerned to submit to the defense and appropriations committees a semiannual report on each identified MDAP in their department. Prohibits Milestone C approval of any such MDAP if the milestone decision authority makes certain determinations on cost increases or delays in the schedule for key events, but allows the Under Secretary to waive such prohibition in the best interests of DOD.

(Sec. 847) Amends the NDAA for Fiscal Year 2008 to include additional situations in which contractors performing security functions in areas of combat operations are required to file incident reports.

(Sec. 848) Directs the Secretary to submit to the defense and appropriations committees a: (1) report detailing how 60mm and 81mm munitions used by the Armed Forces are procured, including from non-domestic sources; and (2) plan to develop a domestic producer for such munitions.

(Sec. 849) Requires: (1) the Secretary to develop requirements relating to crimes of violence committed by or against contractor personnel during the performance of defense contracts in Iraq or Afghanistan or areas supporting the U.S. mission in such countries; (2) contractors to report such offenses allegedly perpetrated by or against contractor personnel; and (3) the Secretary to make publicly available a numerical accounting of such offenses.

(Sec. 850) Directs the Secretary to: (1) adopt an acquisition strategy for insurance (required by the Defense Base Act) which minimizes DOD cost; (2) report to specified congressional committees on the strategy adopted; and (3) review and update such strategy at least every three years.

(Sec. 851) Requires that, in all carriage contracts in which a fuel-related adjustment is provided, the Secretary shall require the motor carrier, broker, or freight forwarder providing or arranging truck transportation or service using fuel for which it does not bear the cost to pay the fuel adjustment amount to the person who does bear the fuel cost. Requires the carrier's fuel adjustment amount to be made publicly available.

(Sec. 852) Requires FAR to be revised to require each contract awarded by DOD to include a clause prohibiting the contractor from performing the contract using a subsidiary or subcontractor that is a foreign shell company if such company will perform the work using U.S. citizens or permanent U.S. residents.

<b>Title IX: Department of Defense Organization and Management - Subtitle A: Department of Defense Management </b>- (Sec. 901) Adds to authorized functions and activities of the special operations command.

(Sec. 902) Directs the Secretary to designate: (1) a single executive agent for irregular warfare; and (2) an Assistant Secretary of Defense responsible for management and coordination of irregular warfare.

(Sec. 903) Requires the special operations commander to submit to the defense and appropriations committees a plan relating to personnel management of special operations forces.

(Sec. 904) Establishes a Director of Operational Energy Plans and Programs in the Department of Defense to, among other things, conduct oversight and manage operational energy plans for DOD and the military departments and establish the operational energy strategy. Requires each military department Secretary to designate a senior department official responsible for operational energy plans and programs, to coordinate with the Director and implement operational energy strategy initiatives. Requires the Director to review and make recommendations to the Secretary regarding all budgetary and financial matters relating to operational energy strategy.

(Sec. 905) Requires the Assistant Secretary of each military department responsible for acquisition, technology, and logistics to designate a department employee as the corrosion control and prevention executive, with specified duties.

(Sec. 906) Requires that the Director of the Defense Business Transformation Agency report only to the DOD Deputy Chief Management Officer.

(Sec. 907) Directs the Secretary to: (1) prepare a strategic plan for enhancing the role of the National Guard and reserves; and (2) report to the defense committees on such plan.

(Sec. 908) Redesignates: (1) the Department of the Navy as the Department of the Navy and Marine Corps; and (2) as appropriate the Secretary and other statutory offices within the Department.

(Sec. 909) Directs the Secretary to provide the House Armed Services Committee with any information or data requested by the Committee so that it can review the national defense strategy, force structure, force modernization plans, infrastructure, budget plans, and other elements of defense policies and programs with a view toward determining and expressing the defense strategy of the United States and establishing a defense program for the next 20 years, as well as preparing for the upcoming Quadrennial Roles and Missions Review and Quadrennial Defense Review.

<b>Subtitle B: Space Activities </b>- (Sec. 911) Extends through FY2010 a pilot program for the provision of space surveillance network services to non-U.S. government entities.

(Sec. 912) Requires the Secretary to: (1) conduct an assessment to determine a recommended investment and acquisition strategy for commercial satellite capabilities; and (2) report assessment results to the defense and appropriations committees.

<b>Subtitle C: Chemical Demilitarization Program </b>- (Sec. 921) Amends the NDAA for Fiscal Year 1993 to transfer responsibilities for the Chemical Demilitarization Citizens Advisory Commissions in Colorado and Kentucky from the Secretary of the Army to the Program Manager for Assembled Chemical Weapons Alternatives.

(Sec. 922) Prohibits the Secretary, during FY2009, from transporting hydrolysate from the Pueblo Chemical Depot, Colorado, to an off-site location for treatment, storage, or disposal. Requires a report from the Secretary to the defense and appropriations committees on hydrolysate stockpiled at the Pueblo site.

<b>Subtitle D: Intelligence-Related Matters </b>- (Sec. 931) Makes technical changes: (1) necessitated by the redesignation of the National Imagery and Mapping Agency as the National Geospatial-Intelligence Agency; and (2) arising from enactment of the Intelligence Reform and Terrorism Prevention Act of 2004.

<b>Subtitle E: Other Matters </b>- (Sec. 941) Requires (current law authorizes) the Secretary to establish a School of Nursing within the Uniformed Services University of the Health Sciences. Directs that the School: (1) be established no later than July 1, 2010; and (2) be organized to graduate 25 students with a bachelor of science in nursing in the first class no later than June 30, 2012, not less than 50 in the second class, and not less than 100 annually thereafter.

Authorizes the Secretary to conduct a demonstration project to encourage retired military nurses to serve as faculty at civilian nursing schools. Outlines eligibility requirements and compensation provisions for such retired nurses. Provides nursing school scholarships for nurse officer candidates. Requires a report from the Secretary to the defense and appropriations committees on the demonstration project.

(Sec. 942) Allows DOD funds available for DOD regional centers for security studies for FY2009 and thereafter to be used for programs that begin in one fiscal year and end in the next. Authorizes the Secretary, with the concurrence of the Secretary of State, to waive required reimbursement for participation in such regional centers for nongovernmental and international organization personnel who participate in activities that enhance cooperation with U.S. Armed Forces, if the Secretary determines that it is in the U.S. national security interests. Requires an annual report from the Secretary to the defense committees on the extent of nongovernmental and international organization participation in the programs of each regional center.

(Sec. 943) Expresses the sense of Congress that: (1) the Western Hemisphere Institute for Security Cooperation (WHINSEC) is one of the most effective that the United States has to build relationships with future leaders throughout the Western Hemisphere, influence the human rights records and democracy trajectories of countries in the Western Hemisphere, and mitigate the growing influence of non-hemispheric powers; (2) WHINSEC is succeeding in its mission of providing professional education and training to eligible military personnel, law enforcement officials, and civilians in nations of the Western Hemisphere that support the democratic principles set forth in the Charter of the Organization of American States; and (3) WHINSEC is an invaluable education and training facility which DOD should continue to utilize.

(Sec. 944) Requires a report from the Secretary to the defense and appropriations committees describing the development assistance activities carried out by the United States Southern Command during FY2008 and planned for FY2009, along with a certification that such activities will not have adverse affects on military missions or resources or be unnecessarily duplicative to related activities carried out by other federal departments or agencies. Prohibits the obligation or expenditure of more than 90% of the funds authorized for the Southern Command for FY2009 until 30 days after such certification is received.

(Sec. 945) Authorizes the use of specified Navy O&amp;M funds to establish, develop, and maintain nonconventional assisted recovery capabilities upon a determination by a combatant commander that an action is necessary in connection with a nonconventional assisted recovery effort. Requires an annual report from the Secretary to the defense and appropriations committees on support provided. Provides specific limitations on foreign assistance activities.

(Sec. 946) Requires a report from the Secretary to Congress describing progress made to address certain deficiencies in the United States Northern Command identified in a CG report. Directs the commander of such Command to coordinate with its federal interagency partners to ascertain requirements for plans, training, equipment, and resources in support of homeland defense, domestic emergency response, and military support to civil authorities.

(Sec. 947) Requires the: (1) Chief of the National Guard Bureau to report to the Secretary concerning DOD funding for National Guard resource requirements; and (2) the Secretary to submit such report to Congress, along with comments.

<b>Title X: General Provisions - Subtitle A: Financial Matters </b>- (Sec. 1001) Authorizes the Secretary, in the national interest, to transfer up to $4 billion of the amounts made available to DOD in this Act between any such authorizations for that fiscal year, with limitations. Requires congressional notification of each transfer.

(Sec. 1002) Requires that, for any annual or supplemental DOD budget request beginning with FY2010, the Secretary shall set forth separately any funding requested for any U.S. operations or other activities concerning: (1) Afghanistan; and (2) Iraq.

(Sec. 1004) Provides a one-time reduction in payment in September 2013 (followed by a full refund one month later) in retirement payments from the Department of Defense Military Retirement Fund. Directs the Secretary to transfer $40 million from the National Defense Stockpile Transaction Fund to the Miscellaneous Receipts Fund of the Treasury to offset estimated costs arising under the DOD pharmacy benefits program.

(Sec. 1005) Requires: (1) expenditures charged to DOD purchase cards to be independently received, accepted, or verified by an authorized official; and (2) appropriate inventory and property systems to be updated promptly in response to expenditures related to pilferable property.

<b>Subtitle B: Policy Relating to Vessels and Shipyards </b>- (Sec. 1011) Authorizes the Secretary of the Navy to convey to Gulf Copper Ship Repair the floating drydock AFDL-23, located in Aransas Pass, Texas (such company being the current drydock lessee), under the condition that such drydock remain at its current location until the end of FY2010.

(Sec. 1012) Requires a report from the Secretary of the Navy to the defense committees any time it is determined that a naval vessel is to undergo repair work outside the United States or Guam.

(Sec. 1013) Amends the NDAA for Fiscal Year 2008 to require (as a policy) that amphibious assault ships with displacements greater than 15 thousand tons be constructed with integrated nuclear power systems.

(Sec. 1014) Amends provisions concerning the National Defense Sealift Fund to: (1) remove the authority of the Secretary to obligate or expend Fund amounts for any purpose not authorized by law; and (2) include as DOD sealift vessels only those vessels specifically authorized by Congress to be funded by the Fund.

(Sec. 1015) Directs the Secretary of the Navy to report to the defense and appropriations committees on contributions to the domestic market for steel and other metals from the scrapping of each vessel over 50,000 tons displacement stricken from the Naval Vessel Register but not yet disposed of by the Navy.

<b>Subtitle C: Counter-Drug Activities </b>- (Sec. 1021) Amends the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Spence Act) to continue through 2009 a reporting requirement regarding DOD expenditures to support foreign counter-drug activities.

(Sec. 1022) Amends the NDAA for Fiscal Year 2004 to extend through FY2009 DOD authority for joint task forces to provide support to law enforcement agencies conducting counterterrorism activities.

(Sec. 1023) Amends the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Reagan Act) to extend through FY2009: (1) DOD authority to support unified counter-drug and counterterrorism campaigns in Colombia; and (2) a limitation on the number of U.S. military and federally-funded civilian contractor personnel there.

(Sec. 1024) Amends the NDAA for Fiscal Year 1998 to: (1) extend through FY2009 DOD authority to provide additional support to counter-drug activities of specified countries; (2) add to the countries authorized for such support Guinea-Bissau, Senegal, and Ghana; and (3) increase the FY2009 funding limit.

(Sec. 1025) Directs the Secretary to submit to the defense and appropriations committees a comprehensive DOD strategy for counternarcotics efforts in: (1) Africa, with an emphasis on West Africa and the Maghreb; and (2) the South and Central Asian regions.

<b>Subtitle D: Boards and Commissions </b>- (Sec. 1031) Directs the Secretary to establish a Strategic Communication Management Board, to be chaired by the Under Secretary of Defense for Policy, to advise the Secretary on strategic direction and to help establish priorities for strategic communication activities.

(Sec. 1032) Amends the NDAA for Fiscal Year 2008 to: (1) extend to 2009 certain report requirements of the Congressional Commission on the Strategic Posture of the United States; and (2) require an interim Commission report on December 1, 2008.

(Sec. 1033) Amends the Spence Act concerning the establishment of the Commission to Assess the Threat to the United States from Electromagnetic Pulse (EMP) Attack to: (1) extend Commission operation through March 31, 2012; (2) require annual Commission reports in 2010-2012; (3) allow up to $3 million per year for Commission activities; and (4) add two new Commission members.

<b>Subtitle E: Studies and Reports </b>- (Sec. 1041) Requires the: (1) Secretary to report to the defense committees on corrosion control and prevention in weapons systems and equipment; and (2) CG to review such report and report review results to such committees.

(Sec. 1042) Requires the Secretary to: (1) conduct a study on using modular airborne firefighting systems in federal responses to wildfires; and (2) report study results to the defense and appropriations committees.

(Sec. 1043) Directs the Secretary and the JCS Chairman to jointly: (1) carry out a study on DOD rotorcraft survivability; and (2) report study results to the defense and appropriations committees.

(Sec. 1044) Requires the: (1) Secretary to contract with an independent FFRDC to study policies, procedures, organization, and regulatory constraints affecting the acquisition of technologies supporting network-centric operations; (2) JCS Chairman to concurrently carry out a comprehensive study on such matters; and (3) Secretary to report both studies' results to the defense and appropriations committees.

(Sec. 1045) Directs the Secretary to: (1) conduct a review of non-strategic weapons worldwide; and (2) report to Congress on review findings and recommendations.

(Sec. 1046) Requires DOD to study the national defense implications of provisions of the NDAA for Fiscal Year 2008 providing a terrorism exception to the jurisdictional immunity of foreign states.

(Sec. 1047) Directs the Secretary to report to the defense and appropriations committees on steps taken to ensure that all DOD contractors performing work on Guam comply with local tax and licensing requirements.

(Sec. 1048) Requires the Secretary to: (1) carry out a study to evaluate procedural and physical options for introducing into the nuclear weapons launch procedures of the United States, Russia, China, and any other strategically appropriate nations a time-delay before a launch command can be executed that would be transparent to and verifiable by the other nations; and (2) report study results to the defense and appropriations committees.

<b>Subtitle F: Congressional Recognitions </b>- (Sec. 1051) Expresses the sense of Congress that the Honorable Duncan Hunter, Representative from California, has discharged his official duties with integrity and distinction, has served the House of Representatives and the American people selflessly, and deserves the sincere and humble gratitude of Congress and the nation.

(Sec. 1052) Expresses the sense of Congress that the Honorable Jim Saxton, Representative from New Jersey, has discharged his official duties with integrity and distinction, has served the House of Representatives and the American people selflessly, and deserves the sincere and humble gratitude of Congress and the nation.

(Sec. 1053) Expresses the sense of Congress that the Honorable Terry Everett, Representative from Alabama, has served the House of Representatives and the American people selflessly, and deserves the sincere and humble gratitude of Congress and the Nation.<br>

(Sec. 1054) Expresses the sense of Congress that the Honorable Jo Ann Davis, a late Representative from Virginia, performed her official duties with integrity and distinction, served the House of Representatives and the American people selflessly, and deserves the sincere and humble gratitude of Congress and the nation.

<b>Subtitle G: Other Matters </b>- (Sec. 1061) Amends the Bob Stump National Defense Authorization Act for Fiscal Year 2003 to change the requirement to report on information technology capital assets based on life-cycle cost to one based on the need to submit a capital asset plan in accordance with OMB Circular A-11.

(Sec. 1062) Prohibits the Secretary from relocating, or making preparations for relocating, any DOD mission or function from Cheyenne Mountain Air Force Station until 30 days after notifying the defense and appropriations committees.

(Sec. 1064) Prohibits any activity relating to a successor regulation to Army Regulation 190-8, Enemy Prisoners of War, Retained Personnel, Civilian Internees, and Other Detainees, from being carried out until 60 days after the Secretary submits the successor regulation to the defense committees.

(Sec. 1065) Authorizes the Secretary to make payments for salary increases to Portuguese nationals employed by DOD in Portugal based on wage survey data, under certain conditions. Authorizes appropriations.

(Sec. 1066) Recognizes state defense forces as integral military components of the United States. Authorizes the Secretary to: (1) provide assistance and equipment to a state defense force, if certain conditions are met; and (2) allow qualified state defense force personnel to use and operate DOD property, arms, equipment, and facilities as needed in the course of training activities and state active duty. Authorizes: (1) the transfer of excess DOD equipment to state defense forces; and (2) state defense force personnel participation in DOD training programs.

(Sec. 1067) Modifies the project for hurricane and storm damage reduction, Barnegat Inlet to Little Egg Inlet, New Jersey, to authorize the Secretary of the Army to undertake measures to address the handling of munitions placed on the beach during construction of the project. Provides funding.

(Sec. 1068) Expresses the sense of Congress calling for the coordination of roles and missions of DOD and other federal national security institutions.

(Sec. 1069) Expresses the sense of Congress that: (1) readiness shortfalls exist within the Armed Forces, thus increasing the risk to national security; and (2) Congress has provided, and will continue to provide, funds to address such shortfalls.

(Sec. 1070) Expresses the sense of Congress that U.S. defense requirements should be based upon a comprehensive national security strategy and fully funded to counter present and emerging threats.

(Sec. 1071) Directs the Secretaries of Defense and State and the Administrator of the United States Agency for International Development (USAID) (the officials) to jointly establish an advisory panel to review the respective roles of DOD, the State Department, and USAID in the national security collaborative system. Requires: (1) an interim and annual reports from the advisory panel to the officials; (2) the officials to submit such reports to the foreign relations, defense, and appropriations committees; and (3) the advisory panel to brief such committees on matters contained in each report. Terminates the advisory panel at the end of FY2013.

(Sec. 1072) Amends the NDAA for Fiscal Year 2008 to make the Federal Advisory Committee Act inapplicable to the Congressional Commission on the Strategic Posture of the United States.

(Sec. 1073) Directs the Secretary to study and report to Congress on the use of power management software by DOD military and civilian personnel and facilities to reduce the use of electricity in personal computers and computer monitors.

(Sec. 1074) Requires the President to: (1) develop a comprehensive interagency strategy for public diplomacy and strategic communication that updates and builds upon the strategy outlined by the Strategic Communication and Public Diplomacy Policy Coordinating Committee; and (2) report biannually to the foreign relations, defense, and appropriations committees on the strategy developed and its status of implementation. Directs the: (1) Secretaries of State and Defense to jointly conduct a study on establishing an organization for providing an independent assessment and strategic guidance to the federal government on strategic communication and public diplomacy; and (2) President to report to the above committees describing the roles of the State Department and DOD regarding strategic communication and public diplomacy.

(Sec. 1075) Prohibits the use of any funds by DOD for propaganda purposes within the United States not otherwise specifically authorized by law. Requires the DOD Inspector General and the CG to each conduct a study, and report to Congress on, the extent to which DOD has violated the prohibition on propaganda established under prior defense appropriations Acts.

(Sec. 1076) Imposes specified commercial use restrictions upon any conveyance from the United States to the Commonwealth of Pennsylvania or other entity that includes the airfield property located at NASJRB Willow Grove and is designated for operation as a joint interagency installation pursuant to the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007.

(Sec. 1077) Requires DOD's manpower mix criteria and the Supplement to the FAR to be revised to: (1) prohibit, as an inherently governmental function, the interrogation by contractor personnel of enemy prisoners of war, civilian internees, detained or retained individuals, terrorists, and criminals during or in the aftermath of hostilities; and (2) allow properly trained and cleared contractors to be used as linguists, interpreters, report writers, and information technology technicians, if their work is properly reviewed by appropriate government officials.

(Sec. 1078) Directs the Secretary to: (1) ensure the videotaping or other electronic recording of each strategic intelligence interrogation of any person in the custody or control of DOD or under detention in a DOD facility; (2) develop and adopt videotaping or recording guidelines; and (3) submit such guidelines to the defense committees.

(Sec. 1079) Requires the Secretary to publicly identify each student and instructor at the Western Hemisphere Institute for Security Cooperation for fiscal year 2005 and thereafter.

<b>Title XI: Civilian Personnel Matters </b>- (Sec. 1101) Authorizes the head of an agency to waive the limitation on premium pay for federal employees for any service performed in 2009 overseas within the area of responsibility of the commander of the United States Central Command in direct support of, or directly related to: (1) a military operation, including a contingency operation; or (2) an operation in response to an emergency declared by the President. Prohibits such employee's total basic and premium pay from exceeding $212,100.

(Sec. 1102) Extends through FY2014: (1) DOD authority to make lump-sum severance payments to employees being involuntarily separated; and (2) the authority for a DOD employee to volunteer to be separated in order to protect another employee from being separated under a reduction-in-force.

(Sec. 1105) Authorizes the Secretary to designate any category of health care position within DOD as a shortage category (thereby permitting expedited hiring authority). Terminates such authority at the end of FY2012.

(Sec. 1106) Authorizes the Secretary and the Secretaries concerned to exceed the limitation on DOD and military department office personnel and staff by no more than 5% above the baseline limitation for each of FY2009 and thereafter, if necessary to accommodate workload increases or to modify the type of personnel required to accomplish the work. Requires an annual report from the Secretary to the defense and appropriations committees concerning such adjustments.

(Sec. 1107) Amends the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006 to authorize the head of a federal agency, during FY2009-FY2011, to grant allowances, benefits, and gratuities comparable to those provided to members of the Foreign Service to such agency's civilian employees performing official duty in a combat zone.

(Sec. 1108) Prohibits the Secretary from issuing a notice of furlough that impacts substantial portions of the DOD civilian workforce during a contingency operation until the Secretary has certified to the defense committees that there is no other legal measures to avoid such furlough.

(Sec. 1109) Authorizes the Secretary, through 2013, to utilize direct hire authority for scientific and engineering positions within certain defense laboratories. Limits such hires to 2% of the total number of positions at such laboratory.

(Sec. 1110) Amends the NDAA for Fiscal Year 2008 to direct the Secretary to report annually to the defense committees on the status of defense laboratory personnel demonstration projects.

<b>Title XII: Matters Relating to Foreign Nations - Subtitle A: Assistance and Training </b>- (Sec. 1201) Amends the NDAA for Fiscal Year 2008 to extend through FY2010 the authority to build the capacity of the Pakistan Frontier Corps.

(Sec. 1202) Allows funds available in FY2009 and thereafter for the following to be used for programs that begin in such fiscal year but end in the next fiscal year: (1) DOD military-to-military contacts and other activities; and (2) the payment of incremental expenses for participation of developing countries in combined military exercises.

(Sec. 1204) Amends the Warner Act to: (1) add two elements to a reporting requirement concerning the lending of military equipment to foreign nations for personnel protection and survivability; and (2) extend such lending authority through FY2010.

(Sec. 1205) Amends the Warner Act to extend through FY2009 the authority for the distribution to certain foreign personnel of education and training materials and information technology in order to enhance military interoperability.

(Sec. 1206) Amends the NDAA for Fiscal Year 2006 to: (1) allow funds available in FY2009 and thereafter for capacity-building of foreign military forces to be used for programs that begin in such fiscal year but end in the next fiscal year; and (2) extend the capacity-building authority through FY2010.

(Sec. 1207) Amends the NDAA for Fiscal Year 2006 to extend through FY2010 DOD authority for the provision of security and stabilization assistance to foreign countries.

(Sec. 1208) Authorizes the Secretary to expend up to $35 million per fiscal year to support foreign forces, groups, or individuals engaged in supporting or facilitating ongoing military operations by U.S. special operations forces to combat terrorism. Requires the Secretary to: (1) notify the defense and appropriations committees within 48 hours after the use of such authority; and (2) report annually to such committees on the support provided.

(Sec. 1209) Increases from $25 million to $35 million the annual authorized funding for the regional defense combating terrorism fellowship program.

<b>Subtitle B: Matters Relating to Iraq and Afghanistan </b>- (Sec. 1211) Prohibits the use of any funds to: (1) establish any military installation or base for providing for the permanent stationing of U.S. Armed Forces in Iraq; or (2) exercise U.S. control over Iraq oil resources.

(Sec. 1212) Requires the President to: (1) report to the foreign relations and defense committees on the status of military forces agreements between the United States and Iraq; and (2) provide an update whenever such an agreement is entered into or revised.

(Sec. 1213) Directs the President to: (1) establish a strategy to ensure that U.S.-led provincial reconstruction teams (PRTs) in Iraq are supporting the operational and strategic goals of coalition forces in Iraq; (2) establish measures of effectiveness and performance in meeting PRT-specific work plans in furtherance of such strategy; and (3) report quarterly to the defense, appropriations, and foreign relations committees on strategy implementation.

(Sec.